Renters stormed the City of Warsaw’s Common Council meeting in protest of Ordinance 2017-10-01

WARSAW — “Do you know what you’ve done,” Warsaw City Attorney Michael L. Valentine sternly said to the city council after the vote. After three hours and 19 minutes of discussion, the Warsaw Common Council voted down Ordinance 2017-10-01: Wastewater Rate Changes — Revised with a 4-3 majority. “We have to do a whole new series of initial hearings; that’s at least three meetings, folks,” continued Valentine. “You have to start on a new ordinance.”

Last night’s results have caused a setback on the wastewater project that Warsaw Mayor Joe Thallemer explained as a “critical needs of sanitary sewer service.” With the wastewater management at 90 percent and the pipes under Warsaw having been installed in 1899, the city “(has) no choice but to make these improvements,” according to Thallemer. The project is projected to be around $41 million project. An hour after the public hearing ended, the council was informed of a sewage pipe collapsing under Lake Street, forcing the road to be closed between Fort Wayne and Washington streets for repairs on Tuesday.

The council received an IFRS loan which will help reduce the cost with a half percent lower interest rate than a regular loan. “Well, I just want to save our tax payers a half percent on a $10 million bond; that’s significant,” said Thallemer. “You know this is a necessary project. You just heard we’ve had another collapse on Lake Street. I mean that was almost on cue. I mean what do you do? You let it go.”

To cover the cost of the project, the ordinance proposed a rate increase of $6.55 to “all dwelling units,” defined in the ordinance as “a room or any space in which cooking space is provided and that has an individual sink and toilet facilities which includes but is not limited to a single family residence, duplex, apartment housing and mobile courts.”

However, while the rate would increase, the council believes a number of residents “would see a decrease in their bill” as the city switches from a fixed charge to a flow charge, explaining that anyone using less than 4,800 gallons of water a month would notice a decrease. “If you use only 2,800 gallons a month at the $6.55 rate, it’ll cost $15.82 plus the $12 base fee. You’ll be paying $27.82 a month, reducing your bill by $4.78,” explained Thallemer. The council believed this to be a more fair solution to sewage than was previously in place.

However, attendees disagree, calling for just “a fair solution,” stating the unfairness of a $12 base pay “per mailbox when there was only one pipe.” Landlord and realtor Kim Hart argued against the point stating, “What I don’t understand where you think — sanitary sewer system is critical to all of us … I can’t stress how important it is why any one household should pay less base rate. It’s a household. It’s a dwelling unit.”

Other concerns were raised about lack of assistance for the increase and water usage for pools, sprinkling and power washing. The board addressed this water usage by stating that they were looking at credit going towards bills.

After about three hours of discussion though, the council was compelled to deny the motion to pass the ordinance, stalling the project and leaving the audience clapping with a mixture of joy, shock and disappointment in the room. “I didn’t expect it,” said Thallemer. “I think our council has worked hard to present something that fair. I sensed that there was a desire to look for common grounds, but I also sensed that not everyone is going to be happy.”

But with a time sensitive timeline, the pressure is on to make and pass an ordinance by mid November to meet the expected deadlines for the project, leaving the project in danger of losing the IFRS loan and being postponed.

Council member Diana Quance emphasized the importance to pass an ordinance or lose everything that the council has worked toward to lower the costs of the project including but not limited to TIFs and the Bond.

In effort to keep the project rolling though, the council moved 6-1 to pass the Ordinance 2017-10-08: Sewage Works Bond Ordinance after having it emphasized “the need for it to be passed” last night. “We are not giving up. This is a critical project. We can’t give up on this. We don’t know all of our next steps yet, but we’re trying to get a meeting around to discuss it.” Thallemer stated this morning following the council meeting.

A special meeting will have to be held with the introduction of a new wastewater rate change ordinance.

In other news:

• The council passed the 2018 budget unanimously.
• The board passed two resolutions for new government housing to be built.
• The board approved Amendment to Appendix B Warsaw City Code.