HUNTERTOWN — Huntertown’s town council and utility service board have yet to come to a consensus on how much to charge new water and sewer customers in order to recoup costs associated with future utility improvements. But, current homeowners should rest assured their rates won’t go up any time soon.

“The financial report card for the utilities is excellent,” consultant Stephen Carter, of O.W. Krohn and Associates, told town council members during a remote meeting May 4. “Both water and sewer are in good shape. We don’t foresee any need in the near future for an adjustment on the current monthly water and sewer rates, absent discussion on capital surcharges.”

For several months, town officials have discussed the possible implementation of monthly capital surcharges to support future improvements to the water and sewer utilities as new homes continue to rise. Those charges would apply only to new connections once an ordinance is passed. However, the amount is still unclear.

“The purpose of the monthly surcharge is to just give the town the tools that they need to help keep things clicking without pulling money from the existing rate payers,” town engineer Derek Frederickson said.

Carter told council members May 4 that the current sewer rate — an average bill being $69.40 — is sufficient for the town’s needs. Huntertown’s total sewer cash and investments increased by about $700,000 from the end of 2016 through 2019 — from just over $1.4 million to $2.1 million. During that same timeframe, the town retired about $2.5 million worth of bonds. Huntertown’s outstanding sewer bonds at the beginning of this year totaled $17,377,000. Revenue has increased by an average of about $70,000 per year over the past three years.

While the town’s new wastewater treatment plant was built to handle much more capacity than it currently takes in, connecting to new and planned subdivisions will require upgrades currently estimated to cost just under $2.1 million. Dividing that amount among 1,843 potential new customers at a cost of $1,136 per connection, Carter recommended the town implement a monthly surcharge of $10 over a 15-year period.

Carter recommended the same $10 monthly charge for new water customers as well. Operating revenues have increased by about $15,000 per year over the past three years, while disbursements have remained relatively stable. Total cash and investments in water have increased by about $600,000 over the past three years. Huntertown currently has $3.14 million in outstanding water bonds, and Carter said the town could consider paying off some of its refunding bonds with cash on hand in order to free up additional bonding capacity for large water main projects.

“Anything that we can do to save some money and get a bond off the books would be a good idea to pursue,” Clerk-Treasurer Ryan Schwab said.

The town is facing potentially $4.7 million in needed improvements to the water utility, including a production well, Cedar Canyon and Lima Road water mains, a water loop for the northeast service territory along Shoaff Road, additional ground storage and service pumps at the town’s old water plant.

Although the town’s utility service board voted unanimously to approve the two $10 monthly charges for both water and sewer, town council member Brandon Seifert suggested higher surcharges over a shorter period of time.

“That $10 seems pretty low. … $14.50 to $15 would not break the bank,” Seifert said.

Carter suggested charging new customers $15 a month for each utility over a 10-year period, rather than recouping costs over 15 years.

Council members Pat Freck, Gary Grant, Mike Stamets and Mike Aker agreed to wait until the utility service board’s June 1 meeting to vote on the measure.