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Sanitary district schedules July 9 hearing on proposed rate, 14.5% outside-customer surcharge

Michigan City Sanitary District Board of Commissioners · June 24, 2026
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Summary

The Michigan City Sanitary District posted a draft rate-and-fee ordinance and exhibits, including system development charges and a proposed 14.5% surcharge for customers outside city limits; a public hearing and special meeting is set for July 9 at 5 p.m. in City Hall chambers.

The Michigan City Sanitary District on June 24 released a draft resolution and fee exhibits that would raise sewer rates, create system development charges for large-scale projects and assess a proposed 14.5% surcharge on customers who live outside Michigan City limits. The board scheduled a public hearing and special meeting for 5:00 p.m. July 9 in City Hall chambers to take public comment and consider a final vote.

District staff said the rate-and-fee changes are tied to the authority’s capital improvement plan and are intended to strengthen working capital and fund planned plant and system upgrades. The draft materials include Exhibit A (regular sewer fees by meter size), Exhibit B (new system development charges intended as sewer impact fees for larger developers) and Exhibit C (a consolidated fee schedule for plan-review and stormwater fees). Staff also said the draft ordinance and supporting materials will be posted on the district website and that customers who live outside Michigan City will be notified by mail under state law.

District staff told the board the outside-customer surcharge is part of the regular rates (not the system development charges) and that the draft demonstrates how charges will vary by meter size and customer class; the draft also includes examples and a rollout schedule. Commissioners asked staff to add a column showing current charges so residents can readily see the net increase from phase one and phase two proposals.

The board did not vote on the ordinance at the June 24 meeting; staff said the July 9 session will combine a public hearing and a special meeting when a resolution and final ordinance will be considered. Staff emphasized there will be additional opportunities for public comment and pledged to post all updated exhibits, including comparisons to current charges, on the district website ahead of the hearing.

What’s next: the district will publish the draft ordinance and exhibits online, mail notices to affected outside-city customers, and hold the July 9 public hearing and special meeting where the board may vote on the resolution.