Alexandria to substantially raise utility rates after council vote

Utility rates are increasing in Alexandria – some by more than 50 percent. As IPR’s Thomas Ouellette reports, rates are rising as the city needs to stabilize overdrawn balances for its city-owned services.

In Alexandria, sewer rates will go up 39 percent. Water bills will increase by 91 percent.  And stormwater rates will go up by 100 percent. 

While those increases may sound drastic, Jessica Lynch with advisory firm Baker Tilly says, “Percentages can be misleading.”

According to Lynch, here are the changes to utility bills:

• Stormwater: Current bills are $4.50.  A 100 percent increase would raise the bill to about $9.  The increase is phased in at $1 a year for five years. 
• Water:  Current average bills are $17.  A 91 percent increase would bring the average bill to about $33.
• Sewage: Current average bills are $55.  A phased-in increase begins with a 39 percent jump in the first year to bring the average bill to about $76.

Baker Tilly says Alexandria’s current water rate is among the lowest in the state.  

In total, Alexandria residents will be paying about $45 extra each month once the increases go into effect.  Those dates have not been confirmed yet.

The council voted unanimously to approve each utility rate ordinance. 

The city is currently overdrawn in several of its utility accounts. According to an audit from the Indiana State Board of Accounts, Alexandria was overdrawn on at least 10 different funds in December 2024, the last month the audit covered.

The City of Alexandria is not the only city increasing utility rates in Madison County. In February, the Anderson City Council also voted in favor of raising the city’s rates.

Thomas Ouellette is our reporter and producer.  Contact him at thomas.ouellette@bsu.edu