Terre Haute eyes $90M bond issue for sewage work

Dec 31, 2023

Terre Haute City Engineer Marcus Maurer and Assistant City Engineer Josey Daugherty look over the existing main sewer lift station in this April 13 file photo. It was built in 1962. A new lift station project is in the works, with a public hearing now set for June 6.

The Terre Haute Board of Sanitary Commissioners voted Tuesday to keep moving ahead on construction of a new main lift station that will daily handle 96 million gallons of water in its sewage system.

Commissioners actions included an early step toward issuing a $90 million bond measure — essentially a construction loan, according to Dennis Otten, bond counsel for the Indianapolis-based law firm Bose McKinney Evans.

A public hearing to confirm the need for the project is scheduled for 10 a.m. June 6 in the third-floor conference room at City Hall.

A new main lift station is the key to the city's combined sewer overflow project, a federal Environmental Protection Agency-mandated program to separate the combined sewage and stormwater runoffs. Combined runoff can contribute to sewage or untreated water flowing into the Wabash River.

City Engineer Marcus Maurer pointed out the current main lift station dates back to the 1960s. "It's well past its usable life," he said, adding that the project is a necessity.

Otten said he doesn't believe the entire $90 million will be used on this project, but further projects will be necessary to finish mandated improvements.

Years in the planning, the new lift project will require a new concrete wet wall, valve vault and new building to house new electrical and mechanical screens.

Work will include installation of pumps, valves, electrical components and necessary connections to existing force main, gravity sewers and ancillary site work, such as grading and redistribution of soil.

Despite the hefty price tag, Maurer said the project will have no immediate impact on rates.

"As it rolls into a bond, rates will have to accommodate the bond amount," he added. "Right now, we’re doing a bond anticipation because the project needs to be done.

"We’ll look to move into the [actual bond issuing] once we get approval for the long-term control plan and we know what kind of timeline we have for the rest of the projects," Maurer said.

"Until we get the long-term control plan approved, it's hard to say [when rates will be affected]. It's been submitted. We’re hoping by the start of next year, we’ll have the plan approved."

The city in 2009 was approved for a five-phase combined sewer overflow project slated to cost $110 million over 20 years. To fund that project, the city has had five city sewer rate increases. However, project costs are now much higher and future sewer rate increases will likely occur.

The city is now seeking approval of a new plan, about $290 million, but with costs spread out over 30 years.

The city is required under a federal mandate to spend an amount calculated on 2% of the city's median household income to solve its combined sewer overflow problem.

David Kronke can be reached at 812-231-4232 or at [email protected].

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