It’s less than what Georgetown would have paid under the previous contract, but the town will see a sewer rate increase if it agrees to the terms of a deal brokered by the New Albany Sewer Board and City Attorney Shane Gibson.

The Floyd County town will pay New Albany an extra three percent per year beyond the standard rate for wastewater treatment for every year it remains on the city’s system, if the measure passed by the board Thursday is upheld.

The contract would span five years with the stipulation that Georgetown must pay New Albany $450,000 if it’s still relying on the city for sewer service after 2014.

That was the penalty amount Georgetown was scheduled to owe New Albany when the original contract expired in February. Despite extensions, Georgetown has yet to break ground on a wastewater facility as property acquisition and legal holdups continue to delay the process.

The three percent a year raise is also less than what Georgetown would have paid if the last contract was followed, as the town’s rates would have doubled under the old deal.

But the new proposal would require Georgetown to pay New Albany $25,000 upfront. Additionally, any sewer increase passed by the New Albany City Council would also be included in Georgetown’s rates.

For example, if New Albany passed a five percent sewer rate increase next year, Georgetown would in effect see an overall eight percent hike.

“I feel this is fully acceptable,” said New Albany Mayor Doug England, who sat-in as chairman of the sewer board during the meeting, taking the place of Ron Carroll who resigned from the sewer and stormwater boards last month.

England named former New Albany Plan Commission member Don Sisloff to the boards during the meeting. Gary Brinkworth will likely serve as the new chairman for both, England said.

Georgetown wouldn’t be penalized if they were within a few months of having a plant completed when the five-year contract expires, Gibson said. But he feels the town should have a facility running by then.

The contract “might be a little too fair, but we don’t want to punish them.” Gibson said.

Georgetown Town Council President Billy Stewart said he had not seen the agreement yet, but said it sounds familiar to the one which was worked out with Carroll.

“This is wonderful. It allows us to move forward,” Stewart said.

He went on to say the board would sign the agreement as soon as members receive a copy of it.

County officials have been working with Georgetown to secure property for a treatment facility. England said New Albany will cooperate with the two parties to make sure the city’s interests are covered and Georgetown’s financial constraints are considered.

England added the sewer board will likely be the authority in dealing with Georgetown in the future on wastewater rates. Council President Dan Coffey suggested Georgetown be removed from the body’s control, leaving it to determine sewer rates for just New Albany and the fringe area.

“The consensus of the council, me included, is that the sewer board and Georgetown need to negotiate their own contract,” Coffey said.

A measure will be introduced to revise the ordinance giving the council control over Georgetown’s sewer rates, Coffey said.



BY THE NUMBERS

• $25,000: What Georgetown will have to pay New Albany upfront.

• $450,000: The penalty included in the original contract. That amount would be owed if Georgetown is still on New Albany’s system after five years, though City Attorney Shane Gibson said it would probably be waived if Georgetown has a plant nearly completed.