Commissioners discuss regional sewer district funding issues
County officials reaffirmed their commitment to addressing failing septic systems in the Haysville area despite facing challenges in securing optimal funding for the project.
The county plans to address Haysville first as part of a plan to create the Dubois County Regional Sewer District. Haysville was chosen based on a study completed by Clark Dietz, which identified that area as having the highest need for the services due to failing septic systems.
For background, in January 2020, the county began exploring the creation of a sanitary sewer district to serve areas of the county with known issues. The project was further invigorated by the influx of funding that came in through the American Rescue Plan Act in late 2020 due to the pandemic. The county received about $8.4 million through ARPA, and the county sewage district project was listed as a top priority for funding along with the current broadband expansion underway across the county.
The county then hired Clark Dietz Inc. to assess its current infrastructure and sanitary sewer needs. The comprehensive overview, which can be read here, was provided in November 2021. The county and City of Jasper applied for financing through the Indiana Finance Authority (IFA) Wastewater Revolving Fund last year but did not score high enough to qualify for the competitive low interest loans.
During a meeting with the IFA on February 26, 2025, county representatives, Clark Dietz, financial consultants Baker Tilly, and City of Jasper officials discussed financing mechanisms for the regional sewer project.
“The county reaffirmed its commitment to the project, emphasizing the environmental necessity of addressing the failing septic systems and our willingness to provide significant funding towards the project to help reduce the rates, to try to keep them as affordable as possible,” said Commissioner Chad Blessinger about the meeting.
The city also expressed support for the project, reinforcing the benefits of a regionalized partnership approach. Jasper is working to add a wastewater treatment facility on its north side to accommodate the city’s growth and treat the sewage from the Regional Sewer District covering Haysville and Portersville. Early estimates for the plant suggest it will cost more than $18 million.
According to Blessinger, the most recent estimate for the sewer project, just for the Haysville portion, is $18.9 million. This figure includes design, engineering, and construction for a gravity sewer system. This could initially feed into the city’s existing system at 47th Street. Once the new plant is built, it could be diverted there.
A key challenge emerges from the funding structure used by the IFA, which provides more favorable financing options for “disadvantaged communities” – a designation the Hayesville area and county don’t qualify for based on income metrics. These metrics mean the county does not qualify for special financing like forgivable loans.
To qualify as a disadvantaged community, an area must have 80% of the average annual median income. The Haysville area, based on census tract data, exceeds this threshold.
“Just because if they earn $10,000 more a year than someone in another community, that doesn’t mean that they have enough money to put millions of dollars worth of infrastructure in front of their homes to get the sewage away,” Blessinger noted, questioning the logic behind the funding structure.
The financing options include grant money (free funds), subsidized low-interest loans, and regular pooled interest rate loans. For budgeting purposes, officials are taking a conservative approach, assuming the project will receive the least favorable funding package. Blessinger said these factors will impact whether the project is viable and can be done affordably for the residents.
When asked for guidance on defining what constitutes “affordable” rates for residents, IFA representatives provided little clarity.
“They respond that affordability is dependent on many factors. It varies by location, making it difficult to establish a threshold. In other words, they won’t answer,” Blessinger said.
The county will continue to explore USDA funding as an alternative or supplemental financing option, something they’ve been investigating for the past three to four years.
Officials plan to submit another application in the next funding round, hoping to secure the best possible financing package. However, they acknowledge the economic realities of the project.
“Something that’s really important. I think it’s something we really want to do. But if something costs $20 million and it’s going to service 200 locations, that ends up being very expensive per location,” Blessinger said.
