Fort Wayne did not properly terminate its bulk sewer contract with Huntertown, and thus improperly charged it higher rates for years, according to an Indiana Court of Appeals ruling filed Thursday.

The unanimous decision affirmed a 2011 judgment and stated the agreement between the two municipalities remains in effect until at least April 27, 2013.

At issue was whether a 2002 letter from then-Fort Wayne City Utilities director Ted Rhinehart was an official notification to terminate the sewer contract between the governments that began in April 1988.

Huntertown, like many other Allen County municipalities, sends its sewage to Fort Wayne for treatment.

On Aug. 14, 2009, current utility director Kumar Menon sent a letter to Huntertown stating the city would begin charging Huntertown retail sewage rates because the city considered the bulk-customer agreement expired. Beginning in February 2010, the city began invoicing Huntertown retail rates, which were nearly double what the town was paying under its bulk agreement.

In a previous filing, Fort Wayne stated Huntertown owes nearly $130,000 in delinquent fees.

While the 2002 letter stated the city wanted to begin negotiations on a new contract, it did not specifically say it was terminating the old one, according to the appellate court. This means the original agreement should still be honored.

The agreement requires a three-year notice of termination, or else five-year extensions are added automatically.

The Huntertown Town Council is planning to build its own $11.2 million sewage plant and break ties with Fort Wayne.

For more on this story, see Friday’s print edition of The Journal Gazette or visit www.journalgazette.net after 3 a.m. Friday.

blanka@jg.net