At its August 18th meeting, the Clarksville Town Council approved Ordinance 2026-G-15 on second reading, changing how public fire protection costs charged by Indiana American Water are paid in Clarksville.
The change does not create a new fire protection cost. Indiana American Water already charges for public fire protection services, including the use of hydrants throughout the community. For years, however, the Town of Clarksville has paid those costs on behalf of Indiana American Water customers rather than having the cost included on individual customer bills.
That expense currently costs the Town more than $427,000 each year, or approximately $35,584 per month, and is paid from Clarksville’s general fund.
Until now, Clarksville had continued absorbing that expense as a benefit to residents. According to information presented to the Town Council, Clarksville was the only community served by Indiana American Water still paying public fire protection costs on behalf of its customers. Seymour was the most recent community to make the same transition, several years ago.
Why The Change is Being Made:
Clarksville’s financial outlook has changed significantly following the passage of Indiana Senate Bill 1 and the resulting pressure on property tax revenues available to local governments.
As the Town prepares for reduced revenues in the coming years, continuing to use more than $427,000 annually from the general fund to cover an expense that is paid directly by customers in other Indiana American Water communities is no longer financially sustainable.
Redirecting those funds will give the Town greater flexibility to support other essential services and public safety priorities, including the Clarksville Fire Territory, which is also facing increasing costs and tighter budgets.
The decision was not about whether the public fire protection expense should be paid. That cost already exists. The question before the Town Council was whether Clarksville could continue paying it from municipal revenues on behalf of water customers while other critical Town services face growing financial pressures.
What Residents Can Expect:
Under the ordinance, Indiana American Water will begin recovering public fire protection costs directly through its customers rather than billing the Town.
The current estimated charge for a typical residential customer with a 5/8-inch meter is approximately $4.02 per month. Estimated charges for larger meters are approximately $5.69 for a 3/4-inch meter and $7.46 for a 1-inch meter. These amounts are estimates and may change when Indiana American Water completes the required rate process with the Indiana Utility Regulatory Commission.
The fee is not set by the Town of Clarksville. Indiana American Water must file a new rate schedule with the Indiana Utility Regulatory Commission, and the utility may recover only the approved cost of providing the service.