Anderson mayor, consultants say sewer system needs 18% increase; council hears public concerns

Anderson Mayor Bardrick and city consultants told a packed special council hearing that the sewer utility is operating short of the revenues it needs and recommended an 18% across‑the‑board rate increase under ordinance 5‑26 to stabilize finances and fund required projects.

The mayor said the city has spent roughly $83 million to date on long‑term control plan work tied to a consent decree arising after the 1999 fish kill, and warned that “we're out of money” without additional revenue. Tim Lannon, presenting remotely, summarized ordinance 5‑26 and said the 18% increase would raise a typical residential sewer bill by about $6 per month — roughly $72 a year — and restore required coverage under Indiana law and the city’s bond documents.

City rate consultant Jennifer Wilson (Crow) said the study used 2024 as a test year and projected a roughly $3.6 million annual shortfall for sewer operations, debt and capital needs; she said about half of the increase would shore up operation and maintenance costs while the rest would fund capital projects. Eegis Engineering’s Chris Kaufman described major sewer capital work including Interceptor Phase 2B, which he said would remove about 22 million gallons of combined sewer overflow per year for that project area.

City bond and utility counsel cautioned that failing to restore coverage can have legal consequences. Attorney Chris Chan said bond documents require the city to report noncompliance within 10 days and that bondholders could seek appointment of a receiver to protect covenant holders; Chan added that such an action “probably would not” lead to a sale, but that receivership would put rate setting and operations under court control.

Residents used the public‑comment period to press the council on several fronts. Mary Slaybeck said her meter was estimated and asked whether faulty meters would be replaced before rates change; the mayor and utility staff said meters are scheduled for replacement at a roughly 10% annual rate and that individual complaints will be investigated. Housing and social services representatives warned that immediate increases would reduce housing subsidies and asked the city to coordinate with providers so tenants do not lose housing support.

Environmental advocates asked the council to pause any rate action until the city produces a current water‑quality status report and documents its coordination with EPA on multiple groundwater plumes and Superfund‑level investigations. Nicole Capinsky read a statement noting ongoing federal investigations and urged aggressive pursuit of outside cleanup funding before shifting additional costs to ratepayers.

The council did not vote at the hearing. Officials said the sewer ordinance will be part of a package the council will consider at an upcoming meeting; if passed locally, sewer rate changes will then follow the required statutory and regulatory processes. Mayor Bardrick and finance staff emphasized the city’s stated goal of preserving bond ratings, meeting consent‑decree obligations and avoiding more disruptive outcomes to operations.

The council scheduled follow‑up consideration later in the week. Until a formal vote is recorded, the ordinance remains a proposal and city officials said they will continue to accept public input.