(WASHINGTON) - Washington City Water department has been losing money for years and is in danger of financial collapse.
Mayor Wellman and the Council had asked Umbaugh and Associates to examine the city's financial situation when they took office.
Umbaugh's John Server told the Council that the Water Department is running a deficit of over $1.3 million per year and only had an operating balance to pay for one month's expenses. Server says the City has not raised rates in 12 years.
The examiners say if the City is going to continue to provide good clean high quality water there is no choice but to raise rates.
"It is obvious we have to do something now. If we don't do this, by the end of the year the water utility will be out of money," Wellman said.
The Umbaugh and Associates report said the water rates paid by Washington residents have not covered the full cost of producing good clean safe water for several years.
Even with the raise, Washington will still have one of the lower water rates in southwest Indiana.
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