Valparaiso City Services announced March 12 a planned process “to review its rate structure to keep pace with the future,” signaling what could be an expected increase. The public is invited to share opinions and further discuss rates and costs by attending a presentation March 25 at the Valparaiso City Council meeting.
“Investment in our utilities’ infrastructure provides clean drinking water, a cleaner environment and important safety features – all necessary in maintaining Valparaiso’s quality of life,” Valparaiso City Services Executive Steve Poulos said in a released statement.
He further justified any future adjustment is “to continue providing safe, reliable and uninterrupted water, sewer, stormwater and fire utilities at a competitive cost while supporting responsible growth and maintaining environmental compliance.”
While reviewing its rate structure and the status of the city’s water systems, Poulos emphasized a significant number of water and wastewater treatment process units within the city are 35 to 60 years old, and approximately one-third of the city’s ground infrastructure is at least 50 years old.
“The rate adjustments, if approved, would begin in the summer of 2024 and will be phased in gradually through 2028,” Poulos said.
He explained the strategic planning and master plan studies include the Valparaiso City Utilities Board of Directors initiating engineering designs for necessary improvements to the city’s water and wastewater facilities, “ensuring the ongoing modernization of systems, environmental sustainability, regulatory compliance and room for planned growth.”
Poulos said the top priorities are important capital projects, evaluated costs and the effect on utility rates.
Currently, customers pay a usage charge for treatment and delivery of drinking water, the collection and treatment of sewage, and all related environmental services. Valparaiso City Services also provides water service for the city’s fire system, ensuring adequate capacity and pressure to ensure public safety.
Customers also pay a service charge for the collection of stormwater and garbage.
“Inflation, plus increased costs for labor, regulatory requirements and the needed infrastructure upgrades mean that we must evaluate rates to ensure the reliable quality and services our community has come to expect,” Poulos said.
He said during the last four years, the city utilities service has created a plan and process to present findings to the public and regulatory bodies, including the first public presentation to the Valparaiso City Council which will be at 6 p.m. March 25. Preceding the City Council meeting at 4:45 pm, Poulos and his department will host an open house in City Hall Council Chambers to present visuals and answer questions from the public.
He said more details about the rate process, future projects, proposed rates, the delivery of services, and answers to frequently asked questions are found at valparaisoutilities.org.
In January 2023, Valparaiso City Council member Robert Cotton discussed the early phases of a multimillion-dollar investment in new wells and waterworks plans for the expanding city. He also urged a redirection of ARPA funds as a way to reduce the amount of city bond debt funding for the project.
At the time, Poulos had already introduced the timeline and planned waterworks investment to the council as Ordinance No. 29, 2002, which unanimously passed the council’s first reading and a second reading meeting following no feedback during a public hearing.
“One of the strategic uses of ARPA funds was in fact for sewer, water and utilities,” Cotton, D-2nd District, reminded the council in January 2023.
Philip Potempa is a freelance reporter for the Post-Tribune.