Dubois County Council discusses sewer district funding challenges
The Dubois County Council is grappling with funding challenges for the regional sewer district project, with particular concern about the status of State Revolving Fund (SRF) financing and the potential reallocation of remaining American Rescue Plan Act (ARPA) funds.
During Monday’s regular meeting, council members discussed the future of approximately $1,062,500 in ARPA funds currently allocated to the sewer district project’s design phase.
Council President Mike Kluesner told the board that they had directed the financial advisory firm, Baker Tilly, and the engineering firm, Clark Dietz, to adjust the project’s scope and reassess the estimates. Currently, the project that would connect Haysville residents to sanitary sewer treatment by the Jasper Wastewater Department is estimated to exceed $20 million.
“I think they put together pro formas [sic] based on 340 customers in Haysville, and I think there’s actually only going to be about 180,” he said.
The number of customers on the system affects how much sewage Jasper will treat and how much Jasper will likely charge for the connection to its system. Additionally, the City of Jasper and the County are in discussions on how to split the cost of a new wastewater plant on the city’s northside.
The county and city are also applying for funding through the Indiana Finance Authority State Revolving Fund and are waiting to hear if they qualify this round. That answer is expected in mid-summer. Neither entity scored high enough in the last SRF round to qualify.
The sewer project’s design phase is approximately 60% complete, and officials are hesitant to abandon it. But Kluesner noted that the budget cuts from recent legislation and increased construction costs made him concerned about the project’s viability.
Of the $8.4 million in American Rescue Plan Act funding it received, the county allocated $2.4 million to the regional sewer district’s planning and development. On Monday, County Auditor Sandy Morton told the council they had $1,062,500 left in the Clark Dietz contract for the design phase.
The council questioned what they could do with that money if they ultimately abandoned the regional sewer project.
The council recently approved $350,000 to assist Birdseye with updates to its sanitary sewers. Councilman Ryan Craig wondered if they could reallocate the ARPA funding to support that project.
Morton told the council that replacing an existing contract requires termination of the old contract due to default, closure, inability to perform, or the county has to terminate for convenience. Additionally, any replacement project “has to be substantially the same scope and same purpose as the original contract.”
In a phone conversation on Wednesday, Morton said state officials had confirmed that the Birdseye project would qualify.
In the meantime, Jasper is continuing to move forward with the north side wastewater plant, which will support the city’s growth. The Utility Service Board approved a $1,262,200 contract with Midwest Engineering last month for engineering and design work on the new facility.
The next Dubois County Council meeting is scheduled for May 19 at 4:30 p.m. in the County Annex building.
