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Council holds first reading on LEAP wastewater rate district; public hearing set for April 14
Summary
The Lebanon City Council heard a first reading of Ordinance 2025-08 to create a separate wastewater rate district for the IEDC LEAP area, including a $5,400-per-EDU availability fee and a $6.50-per-100-cubic-feet flow charge; council set a second reading and public hearing for April 14.
The Lebanon City Council on March 24 held a first reading of Ordinance 2025-08 to create a separate wastewater service and rate district for the Indiana Economic Development Corporation’s LEAP (Logistics, Energy, Aerospace, and Production) area and scheduled a second reading and public hearing for April 14 at 7:15 p.m.
City attorney and staff presenters said the ordinance would not change rates for existing customers in the city’s current civil wastewater district. Scott Miller of Baker Tilly, the city’s consultant on the proposal, said the LEAP district ordinance includes an availability fee of $5,400 per equivalent dwelling unit (EDU) and a flow charge of $6.50 per 100 cubic feet.
“The ordinance before you has a total monthly rate of $6.50 per hundred cubic feet,” Miller said, and added the ordinance also sets monthly base charges by meter size and an availability fee to recover capital costs.
The ordinance creates a separate financial structure to fund upgrades and expansions needed to serve the LEAP area, Miller and other staff said. The plan anticipates phased capital financings through the State Revolving Fund (SRF) to pay for improvements: an initial financing in 2025 estimated at just under $162 million and a follow-up phase of about $155 million to expand treatment capacity, according to Miller.
Staff said the proposed financing would be supported initially by IDD revenues generated in the LEAP district and TIF revenues from the city; the city intends to pledge those revenues to repay bonds so existing civil-district customers’ revenues are not used. Jeff Jacob, city staff, said the ordinance mirrors the process used previously to create a separate LEAP water rate district.
Council members asked technical and schedule questions. Staff emphasized the ordinance applies only to new customers located inside the LEAP boundaries and noted the ordinance references exhibits that identify the district boundaries and potential future annexations.
The ordinance is on first reading; no vote on final adoption occurred. A public hearing and second reading are scheduled for April 14 at 7:15 p.m., when the council is expected to consider final adoption.
