Residents to see lower utility bills as Valparaiso acquires Damon Run

An ordinance for a 20year, $5.62 million bond issue for the acquisition of the Damon Run Conservancy District was unanimously passed by the Valparaiso City Council at Monday’s city council meeting.

Steve Poulos, Valparaiso utility director, addressed uncertainty regarding the acquisition during the meeting.

“This is a culmination of a lot of work over the past few months. We held two public meetings where over 100 residents attended. There was some angst, some rumors that some people would profit, which is not true. That this is underhanded and a land grab, which is not true. There is no incentive for the city to annex,” Poulos said.

As part of a presentation, Poulos referred to the Valparaiso City Utilities mission statement.

“The mission statement is how the Damon Run residents will be treated. They will not be treated like a redheaded stepchild. This is not orthodox. Of course, it’s different,” Poulos said. “There are three distinct reasons to pursue this opportunity: it fits our master plan, to protect our boundaries and to provide financial relief to the Damon Run residents.”

Poulos said a current Damon Run bill lists a Portage wastewater fee, a sewer user fee and a water user fee of up to $3,000 per year. Residents currently pay $241.66 per month and $2,899.92 per year. Under the proposed rates, Poulos said, residents will save 37 percent by paying $152.61 per month and $1,831.32 per year.

“Besides getting out of debt sooner, we also accomplish significant savings for residents,” John Julien, a partner in the accounting firm Umbaugh & Associates, said. “For full disclosure, that means you’ll be paying a sewer bill for longer than you normally would under the current structure.”

A request to suspend the rules for an ordinance establishing wastewater services was passed unanimously by the council.

“We’re looking at a reduction of Damon Run utility bills, enhancement of quality of maintenance and growth of our territorial plan. No one profits. This is a public good,” Poulos said.

Council member George Douglas noted the amount of time and work that went into the project.

“There’s an awful lot of work, years worth. This is not something that came up in the past three months,” Douglas said. “I think it’s important for people to understand that.”

Additionally, a final vote on the city’s 2020 budget will take place at the Oct. 28 city council meeting after no members of the public spoke during the public hearing at Monday’s meeting.

City Administrator Bill Oeding said the total for the city’s general and other funds for 2020 is $36.1 million, compared to $34.4 million for 2019. Almost $1.1 million of that increase is for personnel services, he added.

In all, the city can expect to receive $26.8 million in tax revenue and another $9.8 million in miscellaneous revenue for the coming year.

“These are all estimates. We don’t know what the tax rate is going to be,” Oeding said. “Departments are encouraged to underspend their budgets by 10 percent.”