The Gary City Common Council Finance Committee on Nov. 6 heard presentations from the Gary Sanitary District and the stormwater district proposing higher commercial wastewater and stormwater fees to fund mandated infrastructure work.

A representative of the Gary Sanitary District said an independent cost-of-service study recommended raising commercial wastewater rates to $14.38 per 1,000 gallons, while holding residential rates steady. "There is the $155,000,000 that we have to spend over the 15 year period," the representative said, arguing the revenue increase is necessary to meet federal requirements and avoid fines or a potential takeover by regulators.

The stormwater district’s attorney detailed projects already underway — including work at Gleason — and said the proposed stormwater increases would not raise residential fees and would remain competitive with neighboring municipalities. "Stormwater rates have not been increased since 2011," the attorney said, and the department identified a $25.6 million capital improvement list addressing flooding and outfalls to the Little Calumet and Grand Calumet rivers.

Council members pressed staff on outreach and notice to businesses. One council member urged the administration to hold a joint public briefing so commercial customers understand why the increases are being proposed. Staff said industrial and major contract users were contacted directly and that an Excel listing of affected accounts was provided at the hearing for council review.

Public commenters offered mixed responses. One resident supported the increase but asked for a tiered approach to protect small or vulnerable businesses. Another commenter argued the stormwater charge behaves like a tax and pressed the committee to recommend against the ordinance.

Next steps: councilmembers requested more data and asked the mayor’s office and sanitary district to hold targeted outreach with affected businesses before the council takes a final vote.