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Anderson board approves 18% sewer rate increase to shore up finances and prepare for CSO work
Summary
The board recommended an 18% across-the-board sewer rate increase and a bond-authorization cap (up to $10 million, with an expected need near $8.7 million) to preserve debt coverage and fund near-term projects while the city negotiates revised CSO control plans with EPA and IDEM.
The Board of Public Works voted to recommend revised sewer rates and a bond authorization to the Common Council following presentations about long-standing combined sewer overflow (CSO) obligations and near-term capital needs.
Tim Landon (city sewer staff) recounted the consent-decree history dating to a 1999 chemical spill that led to EPA and Indiana Department of Environmental Management involvement and a long-term control plan. Landon said the city submitted an amendment to the agencies on Dec. 15 seeking a revised schedule and control approach, and that the amended plan would seek to limit overflows to no more than eight events per year while requiring substantial additional infrastructure. “That initial plan … had an original deadline for goals and infrastructure to be completed of 2009,” Landon said, describing how schedules were extended and engineering approaches revised.
Jennifer Wilson of Crowe presented the sewer financial analysis showing a test-year deficit that would push coverage on existing debt below required bond-ordinance levels without action. Wilson said funding needs on a listed set of projects total about $12 million, and the board was being asked to recommend bonding $8.7 million while funding the remainder from ongoing revenue. She said the analysis yields an 18% across-the-board increase; the minimum monthly charge would rise from $32.84 to $38.77 per the proposal.
Chris Popman of Aegis described the large Project 2B (White River Interceptor), a 42-inch pipe from IML north along IML then east to Liberty Christian, planned to be bid in the second quarter. Board members and staff noted some competing communities with lower rates do not carry CSO obligations and that bond covenants require the city to maintain coverage levels for debt service. The board approved Resolution 3-26 recommending the rate ordinance and Resolution 4-26 recommending a bond ordinance (authorization up to $10 million; expected borrow ~$8.7M) by voice vote, forwarding both measures to the Common Council.
