Oct. 23--The New Albany Sewer Board will meet with a financial analysis firm Wednesday to mull over the utility's monetary situation.

Sewer rates will be considered during the conference between utility officials and the Indianapolis firm Crowe Chizek. Mainly, whether what the city collects now is enough to fund the various upgrades and infrastructure demands required of the utility by the Environmental Protection Agency.

Sewer rates need to be raised to meet expenses, some of the utility's officials are saying.

Lee Buchanan, the sewer board's attorney, said funds are running low and the utility may have to pursue a loan from the city's tax- increment financing pool to get through 2009. Another option could be tapping-in to an emergency fund designated for the utility about five years ago. It contains approximately $559,000 according to Buchanan. He's investigating what restrictions the emergency fund carries and whether it can be used for operating expenses.

City Controller Kay Garry is checking with the State Board of Accounts to confirm if TIF funds can be borrowed by the sewer board. If that option pans out, the sewer board would pay back the TIF loan with added revenue from a rate hike in 2010, Buchanan said.

"We know we're probably going to have to have a sewer rate increase," he said.

Crowe Chizek will help the board determine "what we need to do to project the budget," Buchanan said.

Gary Brinkworth, vice president of the sewer board, agreed with Buchanan at a Thursday meeting that a rate adjustment may have to be considered, though the City Council would have to pass any requested increase.

Last year, the board approved presenting the City Council with several rate changes, with the highest option calling for a 25 percent hike.

Then sewer board president Ron Carroll said the 25 percent jump would eliminate the need for the annual Economic Development Income Tax pledge to the sewer fund.

As they stand, the rates do not cover the expense of wastewater collection and treatment to the city. Thus, the council has set aside $875,000 in EDIT funds a year to subsidize the utility.

But even with the crutch of EDIT backing, the utility seems to be running dry financially. The sewer board voted to delay payment of a $1,000 stormwater bill until next year incurred by the wastewater plant Thursday.

Buchanan suggested the move, as the Stormwater Board was expected to waive late fees for the sewer utility.