Residents in the Damon Run area could soon be paying a higher sewer fee.
The sewer system is currently operated by Valparaiso City Utilities, but the wastewater is sent to Portage for treatment. Now that Portage is raising its treatment fees, Valparaiso is looking to pass those costs along to customers.
Eric Walsh with municipal advisor Baker Tilly discussed the proposal with the Valparaiso City Council last week. "If it were not passed to those customers . . . then it would result in Valparaiso city customers subsidizing Damon Run," Walsh said. "That's what we're trying to avoid. Keep it fair for everyone. Payers pay their fair share of the cost."
Under the proposed ordinance, Damon Run residents would see a three-phase increase between January 2025 and January 2027. Walsh said the average customer's monthly bill would go from about $92 today to about $115, when the final phase is implemented.
"So you're generating $970,000 [a year] today. We need $1.2 million by the time Portage's rate increase is fully in effect," Walsh told council members. "That is the rate adjustment you see before you tonight for Damon Run."
Valparaiso City Utilities took over the Damon Run sewer system in 2019. It was seen as a way to keep control of a growing area near the city limits, while offering current residents a lower rate than what they'd been paying. Those customers were not affected by the city of Valparaiso's rate hike approved earlier this year.
"There's a lot of talk about attainable housing and helping seniors stay in their homes, and utilities are a part of that," said Mayor Jon Costas. "And so we're trying to do everything we can to operate efficiently and to keep the increases and the rates as low as possible."
The Valparaiso City Council will hold a public hearing on the proposed Damon Run sewer rate increase next Monday, before taking a final vote.
