Dubois County reviews financing options for regional sewer project after IFA meeting; grants limited by census thresholds

Commissioners received an update on March 3 about county discussions with the Indiana Finance Authority, Baker Tilly, and the City of Jasper on financing a regional sewer project intended to address failing septic systems.

The chair (S1) reported that the county emphasized the environmental necessity of addressing failing systems and that financing options discussed included forgivable or subsidized loans. He said the IFA and other sources make larger amounts of funding available to census tracts that qualify as "disadvantaged communities," generally defined by being at or below roughly 80% of area median income (AMI). The chair said Dubois County census tracts did not appear to meet that threshold, reducing prospects for the largest forgivable funding pots.

"If something costs $20,000,000 and it's going to service 200 locations, that ends up being very expensive per location," the chair said, arguing the county must evaluate whether the project remains viable under higher-cost financing. Commissioners discussed pursuing USDA funding and other pools while planning conservatively for worst-case (higher-cost) scenarios. The county will pursue a design review and intends to apply in the next funding round.

The board did not adopt any binding financing decisions at the meeting; commissioners directed staff to continue reviewing funding options and to prepare a careful application for the next IFA/USDA funding cycle.