A 49 percent proposed rate hike for Hammond Sanitary District customers has Munster town officials seeking an equal voice on financial matters affecting the district.
The Hammond Sanitary District is comprised of both the city of Hammond and the town of Munster, which accounts for 16 percent of the total flow treated by the district. Munster also accounts for 44 percent of the current property tax-supported debt issued by the district and represents 33 percent of the revenues collected, according to figures released by town officials.
On Monday, the Munster Town Council passed a resolution seeking a number of conditions from the Hammond Sanitary District in exchange for support of the proposed rate increase.
Munster officials are requesting the rate increase for no longer than 30 months, after such time a new rate based on a cost of service study is adopted, provided they be allowed to offer “meaningful collaboration” on crafting the scope of the study and the work to be bid. They also want their own representatives present at Hammond Sanitary District project meetings.
“We’re making a reasonable attempt to be a bonified partner of the Hammond Sanitary District,” said Councilman David Nellans.
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A Jan. 23 letter from the district offered the town participation in the upcoming cost of service study, including input on the selection of the firm to conduct the cost of service study.
Of particular concern to town officials is the sewage treatment rate charged to apartments and condominiums. In December 2015, Munster requested the district exclude multi-unit dwellings from the commercial rate classification and designate them as residential and charge each unit for water consumer plus an administration fee. However, the district declined to adopt Munster’s proposed resolution.
The latest resolution again seeks inclusion of a multi-unit residential rate for apartment and condominium owners within the district. But Councilman Andy Koultourides questioned the validity of the proposed rate increase and voted against the resolution.
“They (Hammond Sanitary District) started off with a proposed 164 percent rate increase and now they’ve dropped it,” he said. “How do we know if it’s the right amount?”
Mike Hawkins, Munster’s representative to the Hammond Sanitary District, wondered the same, saying the district has not provided full financial disclosure relative to the proposed rate increase.
Hammond Sanitary District President Dean Button, who is also Hammond city engineer, said he was confused by the statement, as Hawkins has access to all financial records as a member of the Sanitary District Board. Button added that he was unaware of Munster’s resolution regarding the rate increase, but looked forward to the cost of service study at which time the multi-unit rate issue would be considered.
“We have an urgent need to raise the rate,” Button said, noting a U.S. EPA mandate to construct an open-air storm and sewer overflow basin, which will cost $1.5 million a year to maintain and operate.
Jim Masters is a freelance reporter for the Post-Tribune.