Kokomo council approves up to $50 million in sewer bonds and a utility rate increase after heated public hearing

KOKOMO — The Kokomo Common Council voted on second reading to authorize sewage works revenue bonds in an aggregate principal amount not to exceed $50,000,000 and adopted an ordinance adjusting sewage-works rates after a lengthy public hearing on a final phase of the city’s 20-year long-term control plan to eliminate sewer overflows.

John Pike, director of engineering for Kokomo City, told the council the work follows a 2007 court-ordered control plan and said the largest single contract in the package — the North Side interceptor — was bid at about $24 million. He said additional upgrades (lift station and collection-system work) and an upgrade to the wastewater plant’s disinfection system were part of the plan; Pike described a UV-disinfection retrofit as a safer alternative to chlorine and cited an engineer’s all-in estimate of roughly $52.5 million when the interceptor, an $8 million alternate and other upgrades are combined.

"This isn't a tax," Pike said, arguing the work is paid from sewer-system fees rather than general-tax revenue. He warned the council that in his reading of the court order the city must have an award and 'a shovel on the ground' to avoid noncompliance. "The fines set in 2003 ... were $27,500 a day," he said.

Why it mattered

Residents who came to the podium said they understood the compliance imperative but questioned the timing, the size of the bond package and several…