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Lake Station officials considering doubling fees to $43.25 monthly

Sewer rate hike possible

Sewer rate hike possible
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LAKE STATION | Homeowners may see their monthly sewer fees doubling if the City Council follows a recommendation made by a financial consultant, Mayor Keith Soderquist said.

The proposal, based on an average sewer customer who uses 5,000 gallons of water, would increase from the present $21.50 to approximately $43.25 per month, Soderquist said.

That proposed sewer hike was tabled by the City Council at a special meeting Jan. 5 but it's expected the issue will resurface at the 7 p.m. council meeting on Thursday.

He said the reason for the increase, which was based on a suggestion made to the city by financial consultant Umbaugh & Associates, is twofold.

The city needs to set up a 10-year plan to address problems with Lake Station's aging sewer system and a clerical mistake in the clerk-treasurer's office may end up costing more than $1 million in property taxes.

"Those taxes that should have been on the tax levy were removed. It's imperative we address the issue," Soderquist said.

He said a special property tax levy approved to pay down a $5.3 million bond was mistakenly omitted from Lake Station's last two budgets.

The city had issued the bond to pay back a 2005 court judgment the Gary Sanitary District won, he said.

"It's not just that the previous administration removed the tax levy; Clerk-Treasurer Brenda Samuel's office had a 10-day window to appeal and didn't do it," Soderquist said.

Samuels said although the initial clerical error was made before she took office she said she also shares some of the blame.

"The first year it was on the tax rolls then last year payable in 2008 it was done wrong. We didn't get the tax dollars. I won't put anything fully on anyone. We're attempting to see if we can get the money," she said.

Soderquist said he has done a comparison study of sewer fees paid by other cities and towns throughout Lake County and Lake Station residents are on the low end.

"I've just done a recent study of 15 communities and we are currently the second cheapest," he said.

If the sewer fee hike is approved, it would place Lake Station somewhere in the middle of those 15 communities.

The hike would not only pay for the clerical mistake it would help pay for necessary improvements to the sewer system, since more than 50 percent of its lift stations are 40 years or older.

"That's one aspect of the rate increases, making improvements versus waiting out for failure. We can pay now or pay later," Soderquist said.

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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