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City hears $20 million wastewater bond introduction; rate increase likely
Summary
Wabash City councilors heard an introduction to a proposed wastewater bond ordinance that Baker Tilly estimates at about $20 million; staff said a phased wastewater rate increase (about 12% cited) will be finalized and the bond ordinance will return for first reading April 13.
WABASH, Ind. — City officials on March 23 heard an introduction to a wastewater bond ordinance that consultants said could require about $20 million in borrowing to fund sewer line work, lift stations and plant upgrades.
Rich Starky of the law firm Barnes & Thornburg introduced the ordinance as a standard financing measure; Tyler of Baker Tilly, the city's financial advisor, told the council Baker Tilly’s numbers showed “about $20 million of bonds would be necessary” to complete needed work. Tyler said the ordinance contains two authorization figures — a maximum project amount and a maximum bond amount — each inflated by roughly 15–20 percent to guard against higher-than-expected bids.
The consultants said the bond amount is approximately $7 million lower than the total project authorization because the city anticipates using grant funds and cash on hand, including a Ready 2.0 grant the presenters said was “over $3 million.” Tyler also said the city is finalizing a rate ordinance and that residents should expect a phased wastewater rate increase; he referenced “about a 12% increase” phased in over several steps.
At the mayor’s request, staff explained the operational need: the sewer line from the Northeast Business Park down Manchester Avenue has reached capacity. Presenters said the council previously considered wholesale replacement of lines (an option once estimated at $30–40 million and now likely higher), but settled on a bypass and lift‑station approach that reduces immediate cost. The project description included bypass piping under railroad tracks toward landfill property, a lift station on East Hill Street and upgrades at the wastewater plant (UV system improvements and a new clarifier).
No action was taken on the bond ordinance at the meeting. Council members were told the ordinance will appear for first reading at the April 13 meeting and Tyler committed to provide the full materials in advance.
Why it matters: The financing package would fund critical sewer capacity upgrades that the city says are needed to serve the Northeast Business Park and new development, and it will affect utility rates for customers once the rate ordinance is finalized.
What’s next: The bond ordinance will return for first reading on April 13; councilmembers will consider the ordinance, the accompanying rate ordinance, and final project numbers before any sale of bonds.
