Public can weigh in on Crown Point's proposed water, sewage rate hikes

Chicago Tribune

26-01-2025

The public will get the chance to weigh in on proposed increases for both water and sewage usage in Crown Point.
The Crown Point City Council will hold a public hearing at 7 p.m. on Feb. 3 regarding proposed increases for both.
City engineers and financial consultants will make a presentation followed by the public hearing during which all residents will be able to speak and provide input, Mayor Pete Land said.
City Council meetings are held in the council chambers in City Hall, 101 N. East St.
Under the proposed water utility ordinance, rates would increase by 19% over a two-year period with the city absorbing the additional Indiana American Water increases of 36.9%, Land said.
City officials are still in discussion regarding sewer rate changes.
'Any proposed rate changes (for the wastewater utility) are still being evaluated by the city and its financial consultants,' he said.
The initial ordinance was introduced at the Jan. 6 meeting.
'We are still continuing to explore many possible avenues while keeping the rates as low as possible. We are not done with the analysis,' he said.
Land anticipates that the City Council at its Feb. 3 meeting will vote on the proposed water rate ordinance and possibly adopt it but won't vote on or adopt the sewer rate changes until its March 3 meeting.
Under the proposed water rate increases, residential customers who use 1,500 gallons a month will see their total bill go up $3.71 from $19.53 to $23.24; while customers who use 5,000 gallons per month will see their total bill go up $11.58 a month, from $61.01 to $72.59.
If the City Council adopts the proposed water rate increases, the hikes would be billed into three phases: Phase 1: upon adoption of the ordinance; Phase 2: Aug. 1 and Phase 3: Aug. 1, 2026.
The reason behind the water rate increase for Crown Point, and other municipalities across the state, goes back to early 2024 when Indiana American Water got approval from the Indiana Utility Regulatory Commission to raise water rates.
The statewide water utility serves customers in many Northwest Indiana communities, including Chesterton, Gary, Lowell, Lake Station, Dune Acres, Burns Harbor, Griffith, Hobart, Merrillville, Portage, Porter, Schererville, South Haven, Valparaiso and Winfield.
Land said Indiana American Water officials argued the increase was necessary to pay for services and because, in many municipalities, they owned the infrastructures and needed to make improvements.
'My argument was that wasn't the case in Crown Point where we own all the infrastructures,' he said.
Since Indiana American Water was granted approval for the increase, the city of Crown Point has absorbed the cost.
'There have been three increases and the city has absorbed all three,' he said.
In addition, under the United States Environmental Protection Agency-mandated Lead Service Line Replacement Project, all Indiana communities are required to inspect and replace any lead service line found in homes built before 1990.
If lead is found, replacement would be done from the water main to the home at no cost to the homeowner, he said.
Crown Point has been granted a $5 million no-interest loan from the state because of the city being proactive in the project, he said.
Regarding the proposed sewer ordinance, the last wastewater plant expansion was done in 1998, some 27 years ago.
'Wastewater plants are designed to accommodate a 20-year growth, and we are now 27 years past the last expansion,' he said.
Crown Point has implemented only three sewer rate increases since 2009, including 2017 and 2022.
Work that needs to be completed includes ongoing sewer infrastructure repairs, replacements and upgrades on aging city-wide infrastructure, he said.
Plant expansion cannot be done at the current site nor is it the most suitable location for all service areas.
All current and planned infrastructure projects ensure the city remains in IDEM compliance, he said.