Despite a lengthy discussion and an effort to adjust the terms of the proposal, Fort Wayne City Council approved a sewer rate increase of 5% over each of the next five years.
The increase and a corresponding bond issuance were approved 7-2. This marks the clearing of one of the final hurdles towards completing the city’s consent decree, which aims to bring the city’s rivers and sewer system compliant with federal standards by 2025.
So if you are a sewer ratepayer and currently owe $43 per month, that will end up closer to $53 per month by the end of the increase cycle, in 2024. The bond issuance amounts to $310 million.
Following three public meetings and a comment period from residents on February 19, 4th District Republican Jason Arp suggested holding the measure to investigate how PILOT funding -- payment in lieu of taxes -- could possibly be used.
Fort Wayne took in $10 million in PILOT funds last year, and those dollars were directed to the general fund during budget discussions last October. City Controller Garry Morr said that would jeopardize dollars already committed to public safety causes at least for the rest of the year.
Tuesday night, Arp brought forward a counter-proposal: $80 million for 2020, refinance for the future, with Council determining the remaining $230 million at a later time while evaluating budgetary priorities.
“We can do what needs to be done for this year, and then we can have a discussion at this council about whether or not we should continue to do PILOT, or whether we should re-invest in our utilities as opposed to redevelopment projects or downtown parking garages,” Arp said.
City Utilities chief financial officer Justin Brugger repeatedly pushed back on the suggestion, saying that disrupting the bond issuance as proposed could lead to uncertainty and, as a result, an increase in department costs.
“This would cause our engineering group to lose a lot of our flexibility and could cause our construction costs to go up,” Brugger said.
That proposal failed 7-2. 1st District Republican Paul Ensley then proposed an abbreviated payment and refinancing amendment, which was also defeated 7-2. Arp and Ensley were ultimately the two votes against the final increase.
Rate-payers will see their first 5% increase later this year.
