New Whiteland council approves bond ordinance and adopts sewer rate ordinance after public hearing

The New Whiteland Town Council on Monday approved a bond ordinance and a sewer ordinance tied to a planned bond sale and adopted a financing approach for a major sewer upgrade project after a public hearing and council discussion.

Robert, the staff presenter, told the council market interest rates had moved since the rate study was prepared — “rates are 4.71 … you’re up more around 4.79 now” — and walked members through three financing scenarios that alter the monthly impact on the average customer depending on how much the town borrows and whether it applies proceeds from the sale of the town’s water utility. He described an option that would use about $1 million from those sale proceeds to reduce the rate increase for residents.

The council heard a public comment from resident Dennis Shelton, who said the proposed change would amount to “slightly more than 40% at one jump” for his bill and asked whether town expenses had risen comparably. Staff and council members said a portion of the increase covers ongoing operations but a larger share is for debt service tied to equipment replacement and the larger project; staff also noted some pumps and equipment are nearing the end of multi-decade service lives and need replacement.

Council members discussed reimbursing $156,000 already spent on engineering from town funds and described a plan to “lend from ourselves” — the town would advance money to the utility under contract and the utility would repay over time rather than issuing larger bonds that carry fixed repayment obligations. Staff outlined an ordinance structure with two phases: a phase-one estimate sized to current market assumptions and a phase-two true-up that would provide a cushion if market rates move before the bonds are sold.

Council approved ordinance 2026-01 (the sewer-rate/bond-related ordinance) and the accompanying bond ordinance after motions and seconds; each recorded vote was five affirmative and the measures passed. Council also approved an engagement letter required for the debt issuance and discussed next procedural steps: securing IFA (Indiana Finance Authority) consent because the town’s prior bonds were issued through the state, hiring a registrar/paying agent, and scheduling the bond sale timeline. Staff said they expect to sign necessary documents in July and target a close in late July to meet the 90-day window for the project timeline.

The council did not set a final per-household figure in the meeting transcript beyond the scenarios presented; staff emphasized that the ordinance’s two-phase structure would allow adjustments after bonds are sold and that the town would attempt to limit the immediate monthly impact to a figure described in the presentation. The council paused to note minor clerical fixes in the ordinance paperwork and moved forward with the financing steps.

The town’s next procedural step is for staff to obtain the required IFA consent and return with finalized financing documents for formal signature and closing; council members said engineers and bond counsel will return with final numbers to avoid emergency rate changes.