ST. JOHN | More than 200 people filled the council chambers Tuesday night to demand answers to what they say is unfair taxation.

The town's Water and Sanitary Utility Board recently took action to expand the town's utility district into unincorporated areas outside St. John limits. The decision means homeowners who live outside the town boundaries but within that expanded utility district will be taxed about 9 cents per $100 of assessed value for the service.

Even homeowners who choose not to hook into the town's utility system and instead continue using well and septic systems will pay the tax.

Residents, most of whom live in unincorporated Hanover Township, fired questions and shouted angry comments at St. John Town Manager Steve Kil, Water and Sanitary Utility Board President Bob Myers, Vice President Alex Monanteras and attorney Jim Wieser.

Ron Raduenz told them he moved into the country to get away from the town. He said he doesn't want the town's water or sanitary service, and it shouldn't be forced on him.

Other residents echoed his comments and said they feared the move is the first step toward the town annexing them.

Kil said the town is not annexing that land, which is about 5,760 acres. It is merely expanding its utility district.

Utility company Aqua Indiana was brought into the discussion as well.

Aqua Indiana wants to provide water and sewer service to about 3 square miles worth of potential customers in Hanover Township, south and west of St. John town limits.

St. John filed a petition with the Indiana Utility Regulatory Commission objecting to the company's request, saying it postured itself, through its comprehensive plan, to provide water and sewer to that area.

The IURC had hearings on the matter but has not yet ruled in favor of the town or the utility company.

Several residents said they would rather have Aqua Indiana provide them utilities because the company would not tax them.

Myers said the town does not want to tax the people in the expanded utility district, but it has no choice.

State law requires that if a tax is imposed for sanitary sewer, it has to be imposed on all the taxpayers, regardless of whether they use the service, Wieser said.

When a man said Dyer does not tax people who do not use its utilities, Wieser said he would check with Dyer's attorney to see if there is a legal way to do so. If so, he will present that to the utility board for consideration.

Lake County Commissioner Gerry Scheub said he would contact the IURC to see if residents who will be affected by its ruling were properly notified of Aqua Indiana's request to provide utilities to unincorporated Lake County.