Anderson council approves 18% sewer-rate increase to meet federal consent decree

The Anderson City Council voted to adopt Ordinance 5-26, an 18% increase to rates and charges for the city sewage works, after an administration presentation that said the utility faces a roughly $3.5 million revenue shortfall.

Mayor Broadick told the council the increase is necessary to keep the sewer utility solvent and to continue projects under a federal consent decree aimed at eliminating combined sewer overflows. "The bottom line on both of these matters is very simple: we have less money coming in today than we're spending out," Mayor Broadick said during the administration's presentation. He added the city has spent roughly $83 million on required sewer projects to date, with about $22 million spent during his administration.

Why it matters: officials said failing to raise rates would force the city to report covenant shortfalls to bondholders, could undermine the utility's credit, and might jeopardize negotiated modifications with the U.S. Environmental Protection Agency and the Indiana Department of Environmental Management (IDEM). City staff and consultants said the sewer utility's revenue requirement is about $24 million, while current revenue is about $20.4 million — a gap that, if unaddressed, would force cuts or trigger penalties.

The technical case: Chris Kaufman of Eegis Engineering outlined Phase 2B of the White River interceptor project — a 42-inch pipeline that will divert combined flows away from the White River toward the treatment plant and is scheduled to be bid in the second quarter of 2026. Kaufman said closing CSO sites 25 and 26 would remove roughly 22 million gallons of combined sewer discharge per typical year. Consultant Jennifer Wilson of Crow presented financials showing the 18% increase would raise coverage to an estimated 151% and allow continued capital investment; without the increase the city’s coverage would drop to an estimated 63%.

Public reaction: Dozens of residents spoke during the public-comment period. Several urged the council to prioritize maintenance and water-quality improvements before raising rates. "My water is brown at least twice a month," said Stephanie Stennis, who asked the council to consider tabling the ordinance until service quality improves. Residents also raised frequent power outages and affordability concerns for low-income households.

Council vote and next steps: After debate that highlighted both the legal risks of inaction and the hardship rate increases pose for vulnerable residents, the council recorded a 6–1 vote in favor of Ordinance 5-26; Councilwoman Harless cast the lone dissenting vote, citing disproportionate impacts on low-income customers. The ordinance passed its third reading and awaits the signatures of the mayor and the council president. City staff said the rates will be revisited again in 2029.

What remains to be resolved: residents asked for clearer assistance programs and transparency measures to ensure low-income households can qualify for relief; the council and administration indicated they will explore eligibility rules and budget-billing options. The administration also said it will continue negotiations with EPA and IDEM and pursue grant funding where available.