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Decatur council accepts $21 million water project funding package; average water rate estimate rises to $11
Summary
On Sept. 2 the City of Decatur Common Council accepted a State Revolving Fund financing package for a $21 million water-utility project — including a $5.5 million forgivable grant — and approved moving forward with rate increases that raise the estimated customer rate to $11 effective Jan. 1, 2026.
The City of Decatur Common Council on Sept. 2 accepted a financing recommendation for a $21 million Water Utility Improvement Project that council advisers said will be funded largely through State Revolving Fund (SRF) support and will increase the monthly water rate to an estimated $11 beginning Jan. 1, 2026.
Jennifer Wilson of Crowe, LLP and Ben Adams of Commonwealth Engineering told the council that SRF is offering Decatur a $5.5 million forgivable grant, a $2.5 million zero-interest loan, a $10 million loan at the SRF interest rate of 2.88 percent and an additional $3 million loan with a 35-year payback schedule. "The SRF package includes a $5.5 million forgivable grant and loans structured to lower borrowing costs," Wilson said during the meeting.
The financing figures modify a previously approved rate increase that had been set at $4.40 starting Jan. 1, 2026. Council members were presented with an updated estimate that the project and chosen funding levels would add roughly $6.60 to that amount, producing a combined rate of about $11.00.
Councilmember Matt Dyer moved to accept the recommendation of the Board of Public Works and Safety to proceed at the higher funding levels and with the associated rate increases; the motion was seconded by Councilmember Tyler Fullenkamp and was adopted. The transcript records the motion as adopted; a roll call tally was not recorded in the minutes for this motion.
City advisers said the SRF interest rate of 2.88 percent is roughly half the current market rate, which the presenters said reduces the long-term cost of borrowing. The presenters and staff also noted the project would require continued coordination for budgeting and customer-notice timelines ahead of the Jan. 1, 2026 rate change.
Bill Carpenter, Assistant Superintendent of the Decatur Water Department, separately reported that the department has developed a wellhead protection plan intended to protect the underground aquifer and water-supply wells; Carpenter said the Indiana Department of Environmental Management has approved the plan.
Next steps outlined in the meeting record include proceeding with the Board of Public Works recommendation and finalizing the funding and implementation schedule. The council did not vote on a specific customer-billing ordinance at this meeting; the record shows acceptance of the financing recommendation and direction to proceed.
