CROWN POINT | It's unlikely that Crown Point will receive stimulus money to help fund a federally mandated project to separate its storm and sanitary sewers unless the project is "shovel-ready," Indiana Lt. Gov. Becky Skillman told Mayor David Uran during a luncheon Tuesday.

Crown Point's Republican Party Chairman John Moos organized a luncheon with Skillman, city officials and local business owners for a question-and-answer session. While the discussion ranged from federal stimulus money to the state budget, Uran asked Skillman about the possibility of getting some help on mandated projects.

The City Council passed a 61 percent sewer rate increase Monday night to get the wastewater utility adequate funding for its operating expenses since the city lost about $1.1 million in tap-in fees. City officials were told by their financial adviser that more increases will be necessary in the next two years to pay for a $35 million federally mandated combined sewer overflow project.

While Skillman said that sort of project is how the state would like to spend its stimulus money, its hands are tied unless the project is ready for construction.

Uran said it is hard to justify spending money on engineering and plans when the city is not guranteed to then receive the funding for the construction if it is not one of the projects picked for stimulus money.

"I wish the federal government ... would realize the state needs flexibility to work with communities. It's unfortunate it's not happening like that," he said.

Skillman said she and Sen. Luke Kenley, R-Noblesville, have talked about a development fund that would be managed by the state that would help with issues such as expensive engineering, but creating that budget depends on the budget the General Assembly will adopt.

"We'll see if there's anything left when there's a budget," she said.