Town of Speedway, Indiana

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Sewer Rate Increase Information

Gerrard-Allison Project: Underground Detention Tank

As you know, the Town of Speedway is in the midst of an overhaul of its wastewater collection and treatment system, which was discussed at length last fall.

This information is provided so that you can get a better understanding of why the Town is making this investment in the sewer and water infrastructure, and what it means for you.

Sanitary Sewer System Upgrades

About 50 to 60 times a year, the Town of Speedway's sewer system is overwhelmed by incoming rainwater or melting snow, causing untreated sewage to overflow into Eagle Creek. Also, many residents experience flooding and sewer backups caused by a sewer system that combines storm water and wastewater in the same pipes.

Information Link: Why Our Sewers Overflow explains why the Town has combined sewer overflows.

In response, the Indiana Department of Environmental Management (IDEM) has ordered Speedway to address problems at our wastewater treatment plant. Plant upsets in 2007 and 2008 and heavy rain storms have occasionally caused problems with meeting permit limits.

These long-standing problems harm Eagle Creek and the health of our neighborhoods. To improve quality of life and water quality, we must invest in our infrastructure and meet Clean Water Act requirements.

How did we get to this point?

When Speedway's first sewers were built in the early 1900s, engineers followed the standard practice of their day: the pipes were designed to carry both storm water and sewage away from homes and businesses. During dry weather, sewage flows safely through the sewers to the wastewater treatment plant. However, approximately 50 to 60 times a year, the sewers are overwhelmed by incoming rainwater or melting snow, causing untreated sewage to overflow into Eagle Creek. Of the 72 miles of sewers located in the Town, 15 percent are "combined." While combined sewers were an accepted practice in their day, they do not meet 21st century standards.

In addition, customers served by the Town of Speedway outside of its town limits experience flooding and related problems, due primarily to drainage issues that impact the effective flow of sanitary sewage in neighborhoods.

As a result, the Town identified $31.9 million in sewer system improvements, including urgent repairs to the wastewater treatment plant. Permit requirements and an Agreed Order with the IDEM require Speedway to correct these issues by 2012. Non-compliance will result in major fines and penalties and could lead to enforcement action by the U.S. Environmental Protection Agency.

After evaluating various alternatives, the Townis finalizing plans to separate sewers, repair the wastewater treatment plant and significantly reduce raw sewage overflows to Eagle Creek and make improvements to the collection system outside of the Town. Included in the plan are the following projects, among others:

Replacement of aging pumps, upgrading grit removal and oxygen system equipment, installing a new, safer disinfection system and making other wastewater treatment plant improvements.
- Information Link: Improving Speedway's Wastewater Treatment provides more detail on the conditions and capital needs at the Town's aging wastewater treatment plant.
Separating sewers in the Old Speedway neighborhood by building new storm sewers and converting existing combined sewers to sanitary sewers.
Building an additional 1 million gallons of wet-weather storage at the wastewater treatment plant.
Sewer line maintenance, upgrades and improvements for customers that live in areas outside of the Town limits.

As you know, the Town proposed a sewer rate increase of 85% last fall, but since that time has received a $1.4 million grant and bids were extremely competitive for both Main Street and Gerrard-Allison projects. We were, therefore, able to then forego the increase.

However, we are ready to proceed with the balance of the long term control plan and will now propose a 71% rate increase to help finance the sale of municipal bonds to pay for these projects.

Under the proposal, the average Speedway ratepayer's sewer bill (5,000 gallons per month) would initially increase from $14.20 per month to $24.30 - an increase of $10.10 per month.

The average ratepayer's sewer bill outside of the Speedway Town limits (5,000 gallons per month) would initially increase from $21.30 per month to $36.45 - an increase of $15.15 per month.

Information Link: Town of Speedway Sewer Rate Report for a copy of the rate report completed by the Town's utility rate consultant, Crowe Horwath.

If approved, the new rates would go into effect for use in September that's billed in October.

Information Link: Protecting Our Waterways: The Cost for information on the rate impact and a comparison of local sewer utility rates.

Information Link: Sewer Rate Ordinance No. 1169 for a copy of the ordinance which the Speedway Town Council will consider to adopt new rates and charges.

Timeline

July 12th - First reading and introduction before the Speedway Town Council

July 26th - PUBLIC HEARING: SPEEDWAY TOWN COUNCIL

The Speedway Town Council will hold a public meeting to get comments from users of both the sewer and water systems on this proposed rate increase. The Public Hearing will be held at 7:00pm at Speedway Town Hall, 1450 N. Lynhurst.

August 9th - Second reading and final Council action

Closing

We will continue to make every effort to obtain grants, low-interest loans and other revenues to offset the costs of the projects and reduce the impact on rates. This rate increase will enable the Town to make an important long-term investment in its infrastructure, meet state and federal water quality standards and preserve the environment for future generations.

Although it is never a good time to raise sewer or drinking water rates, we have little choice. If we fail to meet state and federal deadlines, we could face stiff fines and penalties. Even with these increases, Speedway's utility rates will remain among the lowest in Central Indiana

Please call 246-4100 if you have specific questions about the plan.

News

Sewer Rate Report
Published: Friday, July 23, 2010
Rate Report for the Speedway sewer system dated June 4, 2010.

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