“Disappointed”, that’s what Washington Mayor Joe Wellman commented concerning the city’s loss of a lawsuit with Daviess County Rural Water. The Washington Times Herald reports that Judge Gregg Smith ruled in favor of the rural water company in a dispute over a rate increase the company felt was unjustified.
Last summer the Washington City Council voted to increase the cost of water bought by Rural Water from the city by 57%. Daviess County Rural Water then filed suit for breach of contract.
In a 17 page ruling, the judge agreed the rate increase was unjustifiable per its contract and the city did not show a demonstrable increase in the cost of performance. The city can appeal the decision. Mayor Wellman says officials will be meeting to discuss options
The Times Herald reports that Mayor Wellman said DCRW’s original request to change their contract with the city, the city followed long-established industry standards as advised by our professional legal and accounting consultants, in order to ensure that city customers do not continue to subsidize Rural Water’s rates.
