Study: City must hike sewer rates

The New Albany City Council must raise sewer rates by 70 percent immediately or risk breaching bond term agreements, a representative with the financial analysis agency Crowe Horwath said. Hired last year by the Sewer Board to study the utility's financial standing, John Skomp of Crowe Horwath reported to the body several benchmarks have failed to be accomplished concerning the approximately $52 million in outstanding sewer bonds still owed. The utility is supposed to budget two months worth of operating expenses, but currently has a $2.7 million deficit in its operating fund balance