Sellersburg council approves phased water, sewer and fire-protection rate increases after public hearings

The Town of Sellersburg council on June 8 approved two ordinances that phase in increases to sewer, water and fire-protection rates over several years, following public hearings and staff presentations that cited capacity concerns and a 2025 rate study.

Council approved Ordinance 2026-009 on sewer rates and Ordinance 2026-R-0110 on water and fire-protection rates. The ordinances, which the council considered in second-reading motions, set multi-phase effective dates beginning July 1, 2026 and extending through 2029 (sewer) and through July 1, 2030 (water and fire-protection) as shown in the ordinance text. The council approved both measures by voice vote.

Why it matters: Town staff and consultants recommended a cost-of-service structure intended to make the system financially stable and to reduce the need for a single large increase later. Staff said the sewer plant had been operating near capacity and regulators had issued early warnings; the 2025 rate study and prior master planning work drove the recommended increases.

Public hearing and customer concerns Resident Charles Pierce asked the council to report back on how much revenue the new rates generate compared with operating costs over the phase-in and raised a separate concern he described as a First Amendment issue with a different ordinance. Pierce said, “I want to know when you all are going to repeal and replace the ordinance that’s violating my First Amendment rights to free speech under the Constitution.” The council did not rule on that complaint at the meeting.

Resident Spike Samuels asked how the changes would affect customers of the defunct Sunflower Valley utility, whose meters and billing have been disrupted. Town staff explained Sunflower Valley was declared defunct, the Indiana Finance Authority and the Attorney General’s office placed the system in receivership, and a receiver was appointed. Staff said the state is funding replacement of a water line; bidding is expected next month and construction would not start earlier than November to avoid overlapping local traffic projects. Once the line is connected and the town accepts the system, customers will receive metered bills and their sewer charges (currently set as an unmetered rate) should revert to metered sewer billing.

Rate structure details Town staff described a shift to a simplified tiering approach intended to raise rates for very large users and reduce the burden on most residential customers. Staff said, in the transcript, that a typical residential account using 4,000 gallons would see a modest increase in phase one (staff noted a change of roughly $0.75 in the example given in the hearing transcript). Council members said the phased approach spreads increases over time rather than imposing a single large jump.

Votes at a glance - Ordinance 2026-009 (sewer rates): approved on second reading (voice vote). - Ordinance 2026-R-0110 (water and fire-protection rates): approved as presented (voice vote).

What’s next The ordinances direct staff to publish full text in legal notices and meeting records as required. Staff said the council will implement the phases on the dates listed and that informational workshops and mailed materials preceded the hearing. Further reporting on implementation and any future adjustments was not specified at the meeting.

Sources: Council meeting presentation and public hearing on June 8, 2026; statements by Town Manager Charlie and staff during the hearing.