Regional Sewer District project faces tight timeline as state funding window opens

The regional sewer project serving Hayesville is working against a compressed timeline after unexpectedly jumping to 12th place on the state’s funding priority list. The district needs to complete land acquisition and design work by March 2026 to secure financing.

Shane Spicer of Clark Dietz Design Engineering told county officials last week that the project’s dramatic improvement in ranking caught everyone “off guard in a good and bad way” because design efforts had slowed when funding appeared unlikely.

“We had kind of slowed down our design efforts because it was not looking like we were going to be fundable,” Spicer said. “So that really truncated our schedule.”

The Indiana Finance Authority has earmarked approximately $1 million in forgivable loans to help reduce residents’ rates, according to Spicer. The agency is also considering allowing the district to make interest-only payments initially while customers gradually connect to the system.

A major hurdle involves correcting median household income (MHI) data that shows Hayesville residents earning $141,000 annually — nearly double the county’s $72,000 median. The inflated figure affects interest rates and grant eligibility.

“It’s a little bit skewed the way the boundaries are drawn,” Spicer said. “The MHI for our service area appears to be a little higher than what is actually representative of the folks that live there.”

Land acquisition presents the project’s most significant challenge, typically requiring six to 12 months. Engineers are working to identify property easements needed for approximately 200 parcels, with surveying work about 75% complete.

The project must navigate around the proposed Mid-States Corridor as well, though the engineers were uncertain how it would impact the sewer project. Officials want to secure independent easements rather than placing sewers in the state right-of-way to avoid future relocation costs if the highway project moves forward.

County officials emphasized keeping monthly rates affordable for residents transitioning from septic systems.

“It’s one thing to get the cost of putting it in, it’s the other thing is making it affordable for the end user,” said Commissioner Chad Blessinger.

Initial estimates five years ago projected rates between $65 and $80 monthly. Current inflation has affected those projections, though final rates depend on an interlocal agreement with the city for wastewater processing. A draft agreement was presented to the city on Nov. 21.

Officials plan to offer free initial connections to encourage early adoption, with homeowners paying connection costs if they delay by more than six months to one year.

The project aims to achieve “shovel ready” status by January with approved preliminary engineering reports and plans, positioning it to capture additional state funding if it becomes available.

We’ve got to find a way to get this done because it’s needed, and to make it so that it’s affordable and self-sustaining, because the county doesn’t want to probably put a million dollars a year out of taxpayer funds that benefits just such a small number of people,” said Blessinger. “But there’s a lot to work out, but it’s important to find a way to work out.”