The City of Montpelier entered into an Agreed Order with the State of Indiana in 2008, agreeing to correct and improve violations with their sewage collection, treatment, and separation of waste and stormwater.  However, the city did not make any attempt to implement these changes prior to 2012. 

The city had to spend $5.2 million in 2019 making improvements to the collection and treatment procedures and will be starting a $6.8 million project this year to address separation and treatment.   

If the City didn’t receive any financial assistance for the $6.8 million project, rates would gradually increase by $70.00 overtime for residents. Luckily, we have successfully gotten $4.5 million in a forgivable loan and SRF Grant, plus an interest-free loan for the $2.3 million. In addition to that, we are getting the loan for the 2019 $5.2 million project refinanced interest-free as well. This translates into a savings of $2.8 million in interest over the next 30 years. By receiving this assistance, the city must increase its rates by approximately $7.00 – $8.00 over the next two years.

As far as our water, we did a $5 million water project in 2011. On June 7, 2011,  Ord. #2011-02 was adopted.  This ordinance states, “Said water rates will be increased 3.5% on an annual basis.”  The City agreed to do this so there would be money available for maintenance and upkeep in the future and to guarantee payment on the bond.

The city’s efforts to secure funding for sewage improvements and prevent high water bill costs show a commitment to improving the community and providing more financial security to residents.