Over the past few months there has been much discussion concerning the recent rate increase.

No one disputes that the recent increase was substantially more that the Corporation has ever had.   However, except when the system was constructed in 1972, the Corporation has never had a single capital expenditure as great as we now face with the construction of a new water treatment plant.

Hill Water Corporation was formed in 1971 to provide water to an area southwest of Mooresville.  Specifically, in the area of Red Day, Goat Hollow and Observatory Roads where getting water from a well was near impossible.  As mentioned above laying pipe in these areas began in 1972.  Until 1992 Hill Water purchased water from Hoosier Water Utility later United Water and since 2000 Indiana American Water.

Hill Water began construction on its own water treatment plant in 1992.  At that time Hill Water served 1511, members and the system consisted of 53 miles of mains. Hill Water currently has 100 miles or water main serving approximately 3350 customers, including several large employers on the south side of Mooresville.


As was typical of small water treatment plants constructed inn 1992 many of the major components were constructed from steel.  Now 32 years later the plant is past its useful life and very near its maximum capacity.  It has deteriorated with age to the point where the steel on the plant is frequently rusting through and now the maintenance staff is putting patches on top of patches.  This work has to be done quickly to avoid service interpretation to our customers all of whom are members of the Corporation. 

Hill Water provides water service east, into Madison Township, as far as Rolling Vista and North Madison crossing subdivisions and as far west as Keller Hill Heights and south to Robb Hill Road.  We have been watching as the Mooresville area has continued to grow and given the large undeveloped land within our current service area there is the very real potential for an additional 200 plus residential services added in the next five years.   We also know that the Town of Mooresville is aggressively promoting the development of the industrial/commercial area south of White Lick creek which is entirely within the Hill Water service area.

Your Board of Directors has struggled for the past few years on a way forward that was in the best interest of our membership and the future of the Corporation.     We knew that a new water treatment plant was required, and soon.   We also knew that the vast majority of our membership was single family residence, many of whom were on a fixed income.

You may have read in the news that the State of Indiana is studying future water needs and water available in aquifers.  Morgan County is also conducting a study and Hill Water is participating.   Recently the Corporation purchased 70 acres north of the current treatment plant for a new well field.  This well field will assure a water supply for the membership well into the future.     Another project that was forward looking was replacement of the 12-inch water main under White Lick Creek that supplies water to customers east of the creek.  This main had been exposed by erosion of the stream bank and in danger of being destroyed.  In anticipation of continued growth in Madison Township the Board decided to replace this main with a 20-inch pipe and had it placed deeper to avoid future problems with stream erosion.

It requires substantial financial resources to maintain the system and provide capital improvements so the membership continues to receive the high level of service, reliability and quality you have come to enjoy and expect, not only now but into the future.  To that end the Board had two practical choices to finance a new water treatment plant.  Option one was that, in addition to the rate increases necessary to maintain the system; we could have raised rates an additional 15 or 20 percent every six months over the past three years (on the heels of the pandemic).  Option two was to have one large increase after design was underway and a construction start date could be determined.   Our feeling was that members keeping their money as long as possible was a good thing.  The final implemented rate was a requirement for Hill Water to be receive the lowest possible interest rate from the bank for financing the new water treatment plant.

Your Board has been listening to you.   After a study by our rate consultant we have implemented a System Development Charge (SDC) which will be a fee to be paid by future members for new connections to the Hill Water System.   This special fund will be used to offset the cost of future capital expenditures.  This fee is in addition to the customary connection fee.   

We have also been in discussions with the Corporation attorneys about updating the Corporation by-laws and they are researching applicable laws that need to be addressed and incorporated into updated by-laws.

In closing your Board is very sensitive to cost of operating the system and the rates that must be imposed to cover those cost.  Each board member is a customer of Hill Water and is impacted by any rate increase just like you.   We always strived to do our best for you as members.  Not only from a fiduciary point but also our ongoing responsibility to provide you with reliable, safe, water service at the lowest possible cost, now and in the future.

Thank you.