difference is between annual interest earnings of $2,000 and $30,000.
Utility Management Board accordingly voted unanimously at its meeting Monday
night to transfer $1.3 million from an account at 1st Source Bank, earning
around 0.02 percent, into a new account at Trust Indiana, earning around 2.3
Trust Indiana is a
local government investment pool exclusively serving municipalities. Under
its rules, all or a portion of an account may be liquidated in one business
day, with no penalty and only a wire transfer fee.
The vote followed
an energetic discussion opened by Member Andy Michel, who initially opposed
any transfer until it was determined that Trust Indiana is offering the best
rate. “How deep has this been researched?” he asked. “Is this the best we
“Right now we’re
getting pretty much zero,” President Larry Brandt replied.
Stephanie Kuziela, for her part, said that she will soon be preparing a
request for quotes for 1st Source, as well as from Centier Bank and Horizon
Bank, to see if they can offer a better rate. 1st Source “might be willing
to come to the table if they realize they’re losing $1.3 million.”
Brandt agreed. “If
you transfer the $1.3 million from 1st Source to Trust Indiana, now you have
a bargaining chip,” he said. “And we’d pick up a month’s interest or more.”
“If we find a
better deal,” added Member Scot McCord, “we can pull the money out without a
fee or penalty.”
Kuziela noted that
Trust Indiana comes highly recommended by Highland and Beverly Shores. She
also emphasized that her preference is always to work with local banking
institutions, as 1st Source, Centier, and Horizon are highly responsive to
their clients’ needs. “I’ve been very happy with the service from these
banks,” she said.
Attorney Chuck Parkinson did say that, given the timetable involved, it
would be unlikely to get any quotes for the RFQ--once it’s been
Wabash Ave. Fix
In other business,
Superintendent Dave Ryan reported that last month the Utility installed a
new manhole and short sewer main in the 600 block of Wabash Ave., following
the failure of a resident’s sewer lateral.
Connecting a new
lateral to the main running under Wabash Ave., at a depth of 17 feet, would
have necessitated excavating the roadway--re-paved only last year--and so
instead, Ryan told the board, the decision was made to install a new manhole
in the easement in the resident’s front yard, connected to a municipal
lateral running north from Grant Ave., and then run under the sidewalk a
new, short main from that manhole to serve the residence.
contributed $5,500 to the project and the resident $8,500.
Ryan said that the
new main will be capable of serving other homes in the neighborhood should
the need arise.
June in Review
In June, Chesterton
used 67.67 percent of its 3,668,000 gallon per day (gpd) allotment of the
wastewater treatment plant; Porter, 51.92 percent of its 851,000 gpd
allotment; the Indian Boundary Conservancy District, 81.48 percent of its
81,000 gpd allotment; and the treatment plant as a whole, 64.26 percent of
A total of 3.71
inches of rain was recorded at the plant last month. There were no bypasses
of wastewater into the Little Calumet River.
Also in June, the
Utility ran a loss of $138,721.78 and in the year-to-date is running a
surplus of $546,148.73.