Francesville Town Council hears Baker Tilly utility reports

Amber Nielsen, of Baker Tilly, provided the Francesville Town Council with reports at their May 7 meeting that reviews both the financial health of each utility as well as rate adequacy for the past three years. In general, Nielsen said that the sewer utility has maintained their cash fairly well, with only a slight dip in 2023 due to capital purchases. There is a positive forward projection for 2025 and on, barring any major capital improvements. The water utility report did not include the water project in any of its numbers. There are currently no bonds outstanding, until they issue the bonds for the upcoming project. There is almost $100,000 in other needs, such as replacing wells. As for the water project timeline, Nielsen said that it is projected that the town will close on bonds sometime in July with the rate increase following. She explained that bids will be received at the end of the May and once the final bids are received, Baker Tilly will re-run the numbers and provide the town with the needed rate increase. The total estimated project cost is about $2.5 million. The town has secured a $700,000 OCRA grant, which results in a $1.8 million loan through the state revolving loan fund.