Dubois County Regional Sewer District outlines progress and funding challenges for Haysville sewer project

The Dubois County Regional Sewer District has closed 90% of the design work on the $18 million Haysville sewer project, but a $9.4 million funding gap remains even after an $8.6 million state loan.

Dubois County Councilwoman Deena Lewis, president of the sewer district board of trustees, presented a comprehensive update on the District’s progress toward bringing public wastewater infrastructure to Haysville.

Lewis outlined the project’s history, current status, and the significant funding challenges that remain before construction can begin.

County leaders began discussing the issue in 2018, citing unhealthy water and soil conditions in rural areas of the county. A major contributing factor was the lack of public wastewater facilities, with failing septic systems affecting neighborhoods and the east fork of the White River from Haysville.

“If you talk to local residents, they will tell you that it’s going back for decades,” Lewis added.

In 2020, with the influx of funding from the American Rescue Plan Act, the engineering firm Clark Dietz was hired to conduct a countywide infrastructure and sanitary sewer assessment. That review ranked Haysville and Portersville as having the highest need, supported by the Indiana Department of Environmental Management’s ongoing documentation of high E. coli levels in the area.

By 2022, a preliminary plan was developed, public outreach began, and engineering work commenced on designing sanitary sewers that would connect to the City of Jasper’s wastewater utility. By 2024, field construction costs were projected at $18 million, and the decision was made to delay the Portersville portion of the initial plan.

With the official formation of the regional sewer district (RSD) in 2024 and the board of trustees established in January of 2026, the entity assumed oversight of the design engineering and began financial conversations with advisor Baker Tilly. A memorandum of understanding was also reached with the City of Jasper for the city to collect and treat Haysville’s sewage flow.

“This is not a contract; it’s just an MOU that was needed for anyone considering granting or loaning money to the RSD for this Haysville sewer project,” Lewis explained.

The city is also seeking funding to build a wastewater treatment facility on the north side of the city to handle the project and support the city’s continued growth. It will also address needed upgrades to the system for current users.

The county’s investment in the design phase of the Haysville Sewer Project stands at approximately $2 million, drawn from American Rescue Plan Act funds — federal money distributed to communities as part of the COVID-19 relief effort.

That level of design completion has elevated the project’s standing in the State Revolving Fund hierarchy. The RSD currently ranks sixth out of more than 80 local governmental entities applying for those funds.

“Regional sewer districts seem to take precedence right now,” Lewis said.

Because of that positioning, the State Revolving Fund offered financing through a 35-year bond at an interest rate of roughly 2.5% to 4%, depending on median household income and other factors. Of the $8.6 million loan, $1 million is forgivable — leaving the gap the RSD is now working to close.

One complication in securing the most favorable loan terms and grant eligibility is the census data for the Haysville area. Lewis noted that the RSD considers the U.S. Census data on median household income for the area as being too high. This has impacted the project’s ability to qualify for low-to-moderate income thresholds required by many grant programs.

“The low-income side opens up the best opportunity for us to receive grants and lower interest rates on any bonding,” Lewis said, adding that the RSD is exploring ways to address the discrepancy, which will be part of the upcoming public outreach effort.

To close the funding gap, the RSD has spoken with four grant writers and advocacy organizations, including Dubois Strong, Indiana Region 15, Dubois Community Foundation, and an upcoming conversation with Radius. The district has also engaged 12 state and federal agencies and is holding funding conversations with both state and federal legislators.

The RSD is also exploring private donations. Lewis noted that because the RSD is a tax-exempt government entity, contributions made exclusively for public purposes may be tax-deductible — a pathway the district’s attorney is currently reviewing after receiving supporting information from the IRS.

“Our communities have been so generous, and they understand that there is an environmental need in our county,” Lewis said.

Public outreach is tentatively planned for fall 2026, giving residents an opportunity to be updated on the project and ask questions.

Commissioner Chad Blessinger raised the broader implications of the project, noting that while the rural area served may be relatively small in population, the absence of sewer infrastructure has long-term consequences for housing and economic development.

“If you don’t have sewer available to people in the rural area, it makes it very expensive to develop a piece of land because you have to have larger lots,” Blessinger said. “The growth will never occur if we don’t have a full suite of utilities available.”

Lewis acknowledged that Haysville is just the beginning. Other communities in the county, including Portersville, Hillham, and Holland, have also been identified as areas that will eventually need to be addressed.

“This is just the first of a project that could help many other communities,” Lewis said.

The RSD’s seven-member voting board includes Councilwoman Lewis, Commissioner Nick Hostetter, Tim Gudorf, Steve Buechler, Matt Krempp, Clint Meyer and Shawn Werner. County Engineer Levi Leffert serves as a non-voting member, attending meetings to monitor progress on the design and build.