The city of Anderson has been awarded a state funding package of more than $45 million to help pay for a slew of water infrastructure improvements, including a new water plant, new water wells and the replacement of all lead pipes.
The funds will include a host of low-interest and forgivable loans, which will help keep water rates among the lowest in Indiana, the city said in a news release.
Mayor Thomas Broderick called the funding a major win for the city and its water utility customers.
“This is an extremely competitive process, and our entire team is to be commended for putting together a compelling application for these needed funds that will allow us to save our rate payers money while allowing us to make our planned major improvements to our water system that we have been working on since I first took office in 2016,” Broderick said.
The city is planning a major upgrade to its water infrastructure system, including the following:
- A new water plant on the south side that will allow the city to shut down the Wheeler Water Plant, parts of which are 70 years old.
- The shutdown of six wells, one of which is older than 70 years old, and replacing them with new wells. The six wells are in an area designated as a Superfund site by the Environmental Protection Agency, and though the city says contaminants had been eliminated from drinking water, the federal government is requiring community water systems to test for PFAS by 2027. The city said the new wells are expected to ensure safe, clean and plentiful drinking water.
- The replacement of all lead water lines, and those exposed to lead line connectors, throughout the water system. This will include, where such lines exist, the lines running from water meters into homes at no cost to homeowners. Water lines inside the homes continue to be the responsibility of the homeowner.
- The replacement of leaking water lines and the extension and expansion of water lines to accommodate growth.
- The continued replacement of old water meters.
The $45.1 million state financial package includes $12.5 million in forgivable loans, $5 million in no-interest loans, and $10 million in low-interest loans.
Other funding sources include $9 million in set-aside American Rescue Act dollars, a commitment from the Anderson Redevelopment Commission for $19 million in tax increment financing funds, and up to $130 million in bonds.
The city has petitioned the Indiana Utility Regulatory Commission for authority to raise water rates to finance the bonds, according to the release. Water rates for a 4,000-gallon monthly residential bill would rise from $24.95 to $30.46 later this year and to $47.58 when the new rates are fully implemented in 2029.
“All of these efforts have been done to hold rates to their lowest possible levels while ensuring we can have the needed water infrastructure that is safe and plentiful enough to allow us to grow our population and bring in new homes and businesses,” Broderick said.