MSD Bond Approval Should Not be a Surprise

We reached out to the Muncie Sanitary District today about some conjecture that has been shared on social media.   Rick Conrad, District Administrator send the following:

“This week the MSD Board approved a resolution which allows them to sell bonds for the purpose of completing the Longterm Control Plan projects over the next 5-10 years (the Longterm Control Plan is the unfunded mandate from the Indiana Dept. of Environmental Managements to reduce combined sewer overflows). The estimated cost of the projects will be around $150M, and this resolution gives them the ability to cover this amount (and it will happen in increments over time, not one bond for $150M).

But, the rate increase associated with paying for these bonds was approved last year (Oct. 2024) – so the bond resolution is not leading to anything new. This was all discussed and planned at public hearings and Board meetings last year. The rate schedule includes incremental increases over the next three years. See attached. (Note that the date says Feb. of 2025 because we added a “nonprofit” category in Feb., but the schedule was approved in Oct. of 2024).

So these bonds are already accounted for – this is not a “new” expense coming.”