One of the biggest surprises – and announcements – from Mayor Tom Henry’s State of the City address had little to do with city government at all.Fort Wayne – Federal stimulus money will keep Auburn sewer rates from skyrocketing, but increases will still come this year.
Sen. Dennis Kruse, R-Auburn, announced Wednesday that the city has received a $7.5 million grant to improve its sewer system.
Mayor Norm Yoder said the grant will be used to comply with a federal mandate to reduce raw sewage overflowing into area waterways.
The city has a 20-year plan estimated to cost $35 million, but the bulk of that cost will come in the first five years, Yoder said. That is when the city will improve and expand its sewer plant and add storage. This will allow the plant to treat more sewage, meaning less will be forced into waterways during heavy rain.
The first phase is estimated to cost $23.75 million, Yoder said, and would have required the city to more than double its sewer rates.
Auburn’s $7.5 million grant is five times the size of Fort Wayne’s grant, likely because of its higher sewer rates, Yoder said. An Auburn household using 5,000 gallons of water a month pays $30.45 compared with $23.27 in Fort Wayne, which includes Fort Wayne’s most recent rate increase.
The grant will be used for the first phase, with the rest being financed by a state loan, and Yoder is hoping to receive a good price on the project given the poor economy. Without the grant, sewer rates could have approached $80 a month, Yoder said.
“We’re only going to borrow what we need,” he said.
Justin Brugger, program manager for Fort Wayne’s long-term control plan, said it wasn’t surprising that smaller communities received larger grants, because they have higher rates. Fort Wayne benefits from economies of scale, giving the grants less impact per resident.
Brugger said Fort Wayne is still pursuing grants for its $240 million sewer project and ways to pay for it other than rate increases.
The Auburn project will still require a sewer rate increase, and Yoder said his staff is finalizing how high rates will rise because of the project.
He said the plan is expected to be presented to the City Council in September and implemented by the end of the year.
Future phases of the work include improving pipes leading to the plant, separating combined sewers and evaluating the project.
