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Sanitary district lays out phased rate increases, new developer fees after 14 years without a hike
Summary
Michigan City sanitary-district staff presented a two-phase plan to raise sewer rates starting Sept. 1, 2026, add system development charges for new development and update inspection fees, saying deferred maintenance and a long gap since the last increase made the changes necessary.
Wendy Vache, public works director and representative of the Michigan City Sanitary District, told the council the district must adopt a phased rate increase and new system development charges to bring revenues in line with operating needs and capital upgrades after 14 years with no increase. She said the first phase would begin Sept. 1, 2026, with a second equal phased increase in 2028, and that the district had prepared exhibits showing how rates translate to household bills.
"If we don't do this, someone will do this for us," Vache said, explaining that state regulators and the Indiana Department of Environmental Management could step in if the district failed to support required operations. She emphasized the plan included a 14.9% surcharge on out-of-city customers and new permit and inspection fees to better match costs to services rendered.
Public commenters pressed staff on capacity, equity and details. Ernie Hollahan asked whether annexation and added users would overwhelm tanks and whether additional storage would be required. Vache acknowledged concerns and said the district has been modeling growth and will continue to drill down into asset capacity and bill-level impacts.
Council members and several residents requested more targeted line-item data and comparisons to state averages. The council held the item for further review and outreach rather than voting on the ordinance at the meeting.
