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Elkhart Council approves sewer and water revenue bonds, code supplement and fire apparatus payment
Summary
At its meeting, the Elkhart City Council unanimously adopted ordinances to update the municipal code and authorize revenue bonds to complete federally mandated sewer and water projects, and approved a $364,860.10 lease-purchase payoff for a fire rescue apparatus. Council members faced public concern about rates and legal challenges tied to bonds.
The Elkhart City Council voted unanimously to adopt several ordinances authorizing revenue bonds and to approve other city business, including paying the final balance on a leased fire rescue apparatus.
The council adopted Ordinance 25-O-25, the 2025 supplement to the City of Elkhart code of ordinances; authorized up to $41,870,000 in revenue bonds for sewage works improvements under Ordinance 25-O-26; authorized up to $8,200,000 in revenue bonds for water works improvements under Ordinance 25-O-27; and approved Ordinance 25-O-24 to appropriate $364,860.10 from the cumulative fire equipment and police fund to pay the balance on the Rescue 1 lease-purchase agreement. All measures passed on roll-call votes of 9 to 0.
Why it matters: The bond measures fund large, federally driven components of the city’s long-term control plan for sewer overflow and required water-main and lead-line replacement work. Council members and staff emphasized that the sewer and water bonds are structured as 20-year obligations and will be paid from utility rates already set by prior council actions.
The sewer bond (25-O-26) was described by Tory Irwin, Elkhart Public Works director, as a not-to-exceed $41,870,000 revenue bond to finance the Oakland C and Oakland D phases that will connect a tank under construction at Indiana and Oakland along Harrison, Third Street, Jackson Street and to an earlier tank near Waterfall. Irwin said, “This will be a 20 year bond, through the Indiana Finance Authority.” He also said the projects are part of the city’s long-term control plan and that the city has already spent or contracted roughly $133,000,000 in project costs. Irwin said the city has applied to the U.S. Environmental Protection Agency for a five-year extension that would move some final completion dates to 2034 if approved.
Public commenter Michelle Korich urged the council to pause and gather more numbers, saying bonds over $4,000,000 can be remonstrated. “A municipal bond is a tax. It is a debt you are supposed to take out on behalf of your community that they can afford. We can't afford this,” Korich said, calling for a table until more financial details were available.
Council members stressed the projects are largely federally mandated and said failing to proceed could expose the city to daily fines. Councilmember Mishler asked whether failing to complete the work would trigger penalties; Irwin confirmed the fines would apply “daily.” Councilmembers also discussed Senate Bill 1 and its potential effect on local revenues in 2028 and beyond, with several urging scrutiny of future large expenditures.
On the water side (25-O-27), Irwin told the council the $8.2 million, not-to-exceed bond — also a 20-year IFA financing — will replace roughly 100-year-old water mains, remove lead lines as required by the EPA, and extend water infrastructure down Third Street to support redevelopment. Irwin said the Indiana Utility Regulatory Commission (IURC) will require a rate true-up after the bond is finalized.
On the fire apparatus payment (25-O-24), Rodney Dale, chief of the Elkhart City Fire Department, said the department seeks to pay the remaining lease balance of $364,860.10 on Rescue 1. Dale said the apparatus’ total cost was “a little over $700,000” and that the department had sold the unit; the council approved the appropriation to retire the final lease balance.
Votes at a glance: - Ordinance 25-O-25 — 2025 supplement to the City Code. Outcome: Adopted. Vote: 9–0. (Second reading and third reading recorded; roll-call recorded as all aye.) - Ordinance 25-O-26 — Authorize additional revenue bonds for sewer improvements (Oakland C and D phases). Not-to-exceed amount stated: $41,870,000; term: 20 years; issuer: Indiana Finance Authority; funding source: sewer/water user rates as previously set. Outcome: Adopted. Vote: 9–0. (Third-reading motion: mover not specified for initial motion; third/final reading motion recorded for Mr. Mishler with second Mr. Fish.) - Ordinance 25-O-27 — Authorize revenue bonds for water works improvements. Not-to-exceed amount: $8,200,000; term: 20 years; funding source: water rates. Outcome: Adopted. Vote: 9–0. (Third reading: motion mover Mr. Crabtree, second Mr. Fish.) - Ordinance 25-O-24 — Appropriate $364,860.10 from cumulative fire equipment and police fund to pay final balance on Rescue 1 lease-purchase. Outcome: Adopted. Vote: 9–0.
No council action was recorded on requests to delay or remonstrate the bonds; a public commenter urged tabling the measures and several councilmembers urged caution on future large expenditures given anticipated state revenue changes.
Ending: Council members instructed staff to continue project work and regulatory coordination; Irwin said the city will return with final bid numbers and IURC rate true-ups as the bond sizes are finalized.
