Michigan City Waterworks Superintendent Chris Johnson outlined a multi-phase bonding plan at a Dec. 2 Common Council workshop to fund water‑system upgrades and to support a rate filing with the Indiana Utility Regulatory Commission (IURC).

Johnson said the department last raised rates in 2015 and that the utility’s capital plan — approved by the Waterworks board on Feb. 27, 2024 — identifies projects through 2044, including treatment and distribution upgrades, a new booster station to address low‑pressure zones on the city’s far east side, elevated storage, an annual water‑main replacement program and some office accessibility work.

Why it matters: Johnson said inflation and rising vendor costs — including purchased power, chemicals and materials — have outpaced revenue. He told council members and residents the department must fund several years of projects to maintain water quality and service; staff will seek financing through bond sales and a formal rate case at the IURC.

Planned financing and schedule: Johnson described two financing phases: a bond sale in late 2026 or early 2027 for about $35 million and a second phase in 2029 of roughly $15.6 million. Attorneys recommended including a contingency ceiling of $60.5 million to avoid refiling if costs shift. Johnson said the IURC process and review by the Office of Utility Consumer Counselor typically take about nine to 12 months.

Proposed customer impact: Using a representative residential consumption (5.35 ccf), Johnson said the utility’s current average bill is $23.09. The proposal would raise bills in three increments: $9.21 in 2027, $3.28 in 2028 and $3.62 in 2029, a cumulative increase of $16.11. Johnson said Baker Tilly’s statewide comparisons showed Michigan City’s rates would remain below the state average and below several regional peers even after the increases.

Questions from council and residents: Attendees raised affordability and operational questions. One council member asked whether landlords would pass the increases to renters; Johnson said many rental units have individual meters and tenants pay directly but acknowledged multi‑unit buildings with a single meter could see different outcomes. A resident who said “that’s rusty water coming into the house” described ongoing water‑quality complaints; Johnson said prioritization for main replacement will target frequent break locations and complaint areas, and the department uses flushing and a corrosion inhibitor to address rust and discoloration.

Data center and revenue: When asked whether the upcoming data center would materially improve utility revenue, Johnson said the facility’s water use would be limited — mostly rare peak cooling events and routine employee use — and he did not expect a major revenue boost.

Financing alternatives: Council members asked about State Revolving Fund (SRF) eligibility and the financing approach used for the Lake Street lift station. Johnson said SRF pools funds across many utilities and program funding has shrunk; because Michigan City’s current rates are relatively low, he cautioned SRF could require rate adjustments. He added bonding rates were competitive with SRF financing for the projects discussed.

Operations and coordination: Johnson said the city has a little over 240 miles of mains, including roughly 44.7 miles at least 100 years old and about 8.2 miles at 95–100 years old. He said downtown pipes are often better protected by sand bedding but that clay soils south of town are more corrosive. He told the workshop the department coordinates with City Engineer Tim Werner and the street department to try to align main replacements with paving projects when funding and schedules allow.

Next steps: Johnson said the materials are public and will be incorporated into the Waterworks’ IURC case and that he will present the bond request at the council’s regular session. The IURC review will determine which projects and costs are approved and the final customer impact.

Quotes: “The reason why we’re having this meeting today is at the regular session of tonight’s city council meeting, I’ll be presenting a request — our bonding plan for the Department of Water Works,” Johnson said. A resident described ongoing water problems: “that’s rusty water coming into the house.”

What’s unresolved: Workshop discussion did not include a council vote. Johnson and attendees noted grant and SRF funding remain uncertain (the city was not awarded the CCMG grant for 2026) and the IURC process will determine which costs are recoverable from ratepayers.

The Waterworks presentation concluded so council members could continue with other scheduled meetings; the bond proposal and rate filing will proceed through the Waterworks board and the IURC process.