Daviess County Rural Water has filed a suit against the City of Washington for breach of contract.
The Washington Times Herald http://www.washtimesherald.com/ says the suit comes following action by the city council Monday night which increases the cost of water purchased by the rural water company 57 percent.
Nick Kile, an attorney with Barnes and Thornburg in Indianapolis, also filed, on behalf of Daviess County Rural Water, a petition for review of the new rates with Washington City Clerk-Treasurer Beth Mc-Gookey. McGookey will have to submit her findings to the court, according to Kile.
Under the new ordinance, over 4500 in-city customers will not see a rate increase, but customers who are in the outlying areas number nearly 900but not Rural Water customers, will see a 14.8 percent jump.
Wellman said a recent “cost of service” study done by H.J. Umbaugh and Associates showed recommendations for the new rates. City council members said they wanted to make sure the city’s costs were covered in allowing Rural Water to buy its water, according to Wellman.