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Muncie sanitary administrator estimates $160M–$300M needed to meet CSO requirements
Summary
District Administrator Rick Conrad told the board the district faces as much as $160 million in additional cost — on top of $90 million already spent — under the proposed long-term control plan; a failure to secure the proposed alternative could push costs above $300 million.
District Administrator Rick Conrad told the Board of Sanitary Commissioners on Feb. 5 that the long-term control plan to address combined sewer overflows could cost the district between $250 million and $300 million overall, depending on whether the board secures approval for the alternative plan the district has negotiated.
Conrad said the district currently estimates $160 million in remaining costs if the proposed alternative is approved — on top of about $90 million the district has already spent. He said the alternative would keep the project near the lower end of the district’s estimate; without approval, Conrad said costs could exceed $300 million.
"Currently, we are looking at $160,000,000 left that is on top of the $90,000,000 we have already spent. That is if we get the approval for the project and the alternative plan as we have proposed. If we do not, we are looking at well over $300,000,000," Conrad said.
Commissioner William Overton framed the figures in per-capita terms to explain the scope of the obligation to the public: using a rough population of 70,000, he said each resident would be responsible for several thousand dollars in debt service under a bond program to fund the work. "If you divide $250,000,000 by $70,000 each person in the City Of Muncie is responsible for over $3,500 in debt," Overton said, adding that borrowings and interest would increase the total cost to households.
Conrad also gave a status update on the levee tieback project and work with the U.S. Army Corps of Engineers, saying the district is working through required federal procedures and was cautiously optimistic about timely approvals. He said negotiations with the Indiana Department of Environmental Management (IDEM) on the long-term control plan are ongoing and described IDEM as "fairly reasonable," while cautioning that formal approvals have not yet been secured.
Commissioners underscored the regulatory drivers behind the work and the resulting rate increases. The board and staff repeatedly identified the long-term control plan as a principal driver of recent wastewater rate changes and said the package of required construction, engineering and related expenses is the reason the district is moving to increase rates and collect debt through bonds.
Conrad said he hopes to receive final approval on the plan within roughly a month, which would provide a clearer picture of the district’s final obligations and schedule.
