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Michigan City proposes two‑phase sewer rate increase, seeks $15M bond anticipation for priority projects
Summary
City staff proposed a two‑phase sewer rate increase starting Sept. 1 to restore working capital, meet regulatory and maintenance needs, and position the sanitary district for a $15 million bond‑anticipation note to fund engineering and early projects.
Michigan City Public Works Director Wendy Dasham told the council workshop the sanitary district has not raised rates in 14 years and the system now needs substantial reinvestment. She said staff calculated a roughly $1,400,000 shortfall in the district’s near‑term finances and proposed a phased increase to restore working capital and fund immediate needs: “We haven't had a utility increase at the sanitary district in 14 years.”
Dasham described phase one taking effect Sept. 1 with the first higher billing appearing in October to cover operating and maintenance shortfalls and to build a revenue history for borrowing. Phase two, she said, is planned for January 2028 to further strengthen creditworthiness and help the district access bond markets. On the planned financing she told the workshop the increase supports a “bond anticipation note to fund $15,000,000 worth of engineering and project improvements.” Staff said final design and engineering funded by that note would refine the total borrowing and project priorities.
