Transparency, Sustainability, and Responsible Planning

Understanding Mishawaka Utilities’ Proposed Water Rate Plan

The City of Mishawaka is committed to transparency, accountability, and long-term stewardship of essential public services. That commitment is the foundation of the proposed Mishawaka Utilities Water (MUW) rate plan currently under review.

Water is not optional. It is foundational.

It supports public health. It provides fire protection. It enables economic development. It sustains quality of life. And it remains one of the most regulated and infrastructure-intensive services a city provides.

For generations, Mishawaka Utilities has delivered safe, reliable, and affordable drinking water to our community. That record continues today. However, like communities across Indiana and throughout the country, we face growing challenges:

• Aging infrastructure

• Rising material and labor costs

• Stricter state and federal regulatory standards

• Significant capital needs, including ongoing investments at the Virgil Street Water Treatment Plant

The proposed rate plan is not about expansion. It is about sustainability.

It is about maintaining compliance with evolving regulations.
It is about replacing infrastructure before it fails.
It is about protecting water quality for the next generation.
And it is about doing so in a financially responsible way.

Balancing Affordability and Stability

In developing this rate plan, Mishawaka Utilities focused on balancing three essential priorities:

1. Affordability for residents
We understand that utility costs impact household budgets. Every scenario was modeled with ratepayer impact in mind.

2. Long-term system stability and sustainability
Water systems require proactive maintenance and capital reinvestment. Delaying infrastructure upgrades increases long-term costs and risks service disruptions.

3. Fiscal responsibility and bond covenant integrity
Strong financial management protects both the utility and the community. Maintaining appropriate debt coverage, reserves, and fund balances ensures access to favorable borrowing rates and avoids unnecessary future costs.

Multiple financial scenarios were carefully modeled. Debt coverage requirements were reviewed. Reserve levels were evaluated. Capital improvement schedules were analyzed. The goal has been to create a disciplined, measured approach that protects both today’s ratepayers and tomorrow’s.

Why Action Is Necessary

Doing nothing is not an option.

Deferring maintenance only increases costs later.
Failing to maintain adequate coverage weakens our financial position.
Underinvesting in water infrastructure risks service reliability and public health.

Water infrastructure is not visible when it works—but it becomes very visible when it fails. Responsible leadership means planning ahead.

What the Rate Plan Supports

If adopted, the rate plan will allow Mishawaka Utilities to:

• Maintain strong fund balances

• Meet bond covenant requirements

• Continue necessary capital improvements

• Support the City through PILOT contributions

• Keep water service safe, sustainable, and reliable

This proposal represents disciplined stewardship—not reactive decision-making.

A Commitment to Transparency

Public policy is strongest when it is transparent and collaborative.

The City welcomes thoughtful questions, careful scrutiny, and constructive input from the Common Council and from residents. Every effort has been made to present the need and the financial analysis clearly and responsibly.

Technical, engineering, and financial details supporting the rate plan have been developed in partnership with professional engineers and financial advisors. These experts have thoroughly reviewed infrastructure needs, regulatory requirements, capital forecasts, and long-term financial projections.

The conversation surrounding this rate plan is not about raising rates casually. It is about planning responsibly. It is about investing prudently. And it is about ensuring that Mishawaka continues to deliver safe, reliable water service for generations to come.

That is the Mishawaka Way.