City Council discusses need for sewage plant funds

Terre Haute City Councilman Neil Garrison, Vice President Karrum Nasser and President Todd Nation listen to discussion on sanitary district funding/Lucy Perry photos

Councilmen George Azar and Earl Elliott discuss finances

Terre Haute residents have been warned. The city has come to the point that either an increase in sewer bill rates or the implementation of a storm water fee will be necessary to meet waste water treatment plant expenses in the long term control plan

Indiana Finance Authority  Director of Environmental Programs Jim McGoff explained to the Terre Haute City Council during a special meeting held tonight,  that for the city to meet its obligations on loans -- in 2011 for $ 14 million and in 2013 for $139 million -- it must generate additional revenue. He noted headlines in 2015 regarding the financial health of the city causing some alarm, adding that advisers have recently suggested rate increases or creating additional sources of revenue.

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Mayor Duke Bennett gives the City Council a financial update during a special meeting

​Councilman Don Morris pointed out the the new waste water treatment plant was long overdue and the city had no choice about 5 years ago to invest funds into the facility to meet the Environmental Protection Agency guidelines.

"Sad to say, we're paying the price now," Morris said.

Councilman George Azar said it sounds like the city is backed into a corner, questioning what would happen if the council votes against a proposed rate increase or a storm water fee.

"We don't have a big choice here," Azar said.

Mayor Duke Bennett responded the next phase of the waste water treatment plant project must move forward according to plans or the city would face significant EPA fines, noting that the proposed storm water fee option would be less of a burden to taxpayers than rate increase.

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In a separate special meeting, Mayor Duke Bennett updated the City Council just before the Sunshine Meeting, on the budget. He said that everything seems to be on track at this time.
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On the agenda for next week's regular meeting scheduled for 6 p.m. Thursday at City Hall:

• Rezoning of property located at 1601 N. 25th St.The owner proposes opening a beauty shop in the home.
• Resolution for 9-year tax abatement for the proposed $6 million hotel on Margaret Avenue by Gurukrupa Hospitality, Inc.
• Amending city code for creating a waste and refuse collection non-reverting fund.
• Amending city code regarding internal controls.
• Rezoning of property located at 5055 E. Hulman Drive to allow for a garage.
• Rezoning of property located at 805 S. Sixth St. to allow for a business office.

• Resolution for adopting minimum internal control standards and procedures.

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