GARY | A mayoral challenger is accusing Mayor Rudy Clay of reckless borrowing that will raise sewer rates for city residents and hundreds in surrounding communities.

"The mayor has been fiscally irresponsible," Karen Freeman-Wilson told a room full of supporters Friday during a news conference at her downtown headquarters.

Wilson is one of 10 Democrats challenging Clay in the May 8 mayoral primary. She is a former Indiana attorney general and city judge.

She said Clay and former Mayor Scott King borrowed $16 million last year from the a fund maintained by the Gary Sanitary District to maintain its system of storm and sanitary sewers.

"We know the mayor already has indicated to the board he is not going to repay that money," she said. Freeman-Wilson said the move will subject the city to thousands of dollars in fines and inadequate storm drainage.

"We see water standing along Fifth Avenue, Grant Street and Taft Street, 25th Avenue in Black Oak and Burr Street. Yards are just full of water in the Miller area in the 6400 block of Fourth Avenue because of a problem with the sewer system," she said.

Freeman-Wilson said Clay will wait until after the primary to make the unpopular move to raise sewer rates in the city and for hundreds of homes in Hobart, Lake Station, Merrillville and New Chicago.

Clay responded Friday, "I do not contemplate a rate hike. I don't think it will be necessary, and I don't support one. We are going to pay them back and are going to be creative."