Mishawaka Utilities Wastewater (MUWW) Comprehensive Rate Plan – Questions & Answers
Q: Why is Mishawaka Utilities Wastewater (MUWW) proposing a new rate plan?
A: The proposed five-year rate plan is part of a long-term strategy to ensure that Mishawaka’s wastewater system remains reliable, compliant, and sustainable. The plan provides the financial stability needed to maintain infrastructure, meet federal and state environmental regulations, and protect public health and safety.
Q: What is included in this rate plan?
A: The plan proposes a modest 3.75% annual increase in wastewater rates over five years, beginning in 2026. This gradual “stair-step” approach allows the utility to responsibly fund essential capital projects, system maintenance, and regulatory compliance while minimizing the impact on customers.
Q: How long has it been since wastewater rates were increased?
A: It has been over six years since Mishawaka Utilities Wastewater last implemented a rate adjustment. During that time, operational costs, construction expenses, and regulatory requirements have all increased significantly. The current plan ensures that MUWW can continue meeting service demands without compromising quality or compliance.
Q: How has TIF funding supported wastewater operations, and is that subsidy ending?
A: Over the past several years, the City’s Tax Increment Financing (TIF) districts have helped subsidize key wastewater infrastructure projects—particularly those supporting economic development and neighborhood revitalization. However, as those TIF districts mature and the obligations phase out, this temporary subsidy is expiring. The new rate plan replaces those outside supports with a sustainable, utility-based funding model that keeps MUWW self-sufficient and strong long-term.
Q: If we raise rates for wastewater, can we lower them in another utility?
A: No. Each of Mishawaka’s utilities—Electric, Water, Wastewater, and Solid Waste—is operated as a stand-alone enterprise fund, meaning each must remain financially independent and self-sustaining. Transferring revenue between utilities would be irresponsible and inequitable, effectively “strengthening one utility at the expense of another.”
This rate plan ensures that each utility remains strong and properly funded, maintaining the exceptional level of service our residents expect.
Q: How will these funds be used?
A: Rate revenues will directly support:
- Critical infrastructure upgrades to aging sewer systems and treatment equipment.
- Environmental compliance with EPA and IDEM mandates under the City’s Long-Term Control Plan (LTCP).
- Ongoing maintenance and modernization of pump stations, sewer lines, and plant facilities.
- Debt service and capital reserves to protect ratepayers from future financial shocks.
Q: How does this rate plan support sustainability?
A: Sustainability means more than environmental stewardship—it also means financial and operational health. This plan ensures that MUWW can continue operating efficiently while protecting natural resources and the St. Joseph River. The proactive investments funded through the rate plan will:
- Reduce system overflows and improve water quality.
- Replace aging infrastructure before failure, saving long-term costs.
- Support future growth and development in Mishawaka without burdening future generations.
Q: Why now?
A: Many of Mishawaka’s wastewater assets are nearing the end of their useful life. Delaying investment would increase the risk of costly failures, potential regulatory penalties, and environmental harm. The City’s comprehensive asset management plan—developed with Baker Tilly—identified this timeline as the most responsible and cost-effective path forward.
Q: How affordable are Mishawaka’s utilities compared to other communities?
A: Even with the proposed increases, Mishawaka Utilities will continue to provide some of the most affordable combined utility services (electric, water, wastewater, and solid waste) in Indiana. Our rates are consistently below state and regional averages, while maintaining a reputation for exceptional reliability, service quality, and sustainability.
Q: What happens if the rate plan is not approved?
A: Without the proposed plan, MUWW would face increasing financial pressure that could lead to deferred maintenance, potential service disruptions, and noncompliance with environmental standards. The cost of emergency repairs or federal penalties could far exceed the incremental rate adjustments being proposed.
Q: If approved, when will the new rates take effect?
A: If adopted by the Mishawaka Common Council, the first rate adjustment will go into effect January 1, 2026. Subsequent annual adjustments will occur each January through 2030, ensuring predictable, manageable rate changes for customers.
Q: How does this benefit residents and businesses?
A: A well-maintained wastewater system benefits everyone by:
- Protecting property values and public health.
- Supporting continued economic development and neighborhood reinvestment.
- Ensuring that Mishawaka remains one of Indiana’s most livable, affordable, and well-managed cities.
Q: How were these rates determined?
A: The rate analysis was developed by Baker Tilly, an independent financial consultant, in coordination with the City’s Controller’s Office and Mishawaka Utilities management team. The analysis was based on a detailed review of operational costs, asset replacement schedules, capital needs, and long-term financial projections to ensure fairness and transparency.
Q: How will Mishawaka ensure accountability for these funds?
A: All rate revenues are restricted to the operation, maintenance, and capital improvement of the wastewater utility. The City will continue to provide regular financial reporting to the Common Council and maintain strict adherence to Indiana Utility accounting standards.
Q: What’s the big picture?
A: This is not just a rate plan—it’s a reinvestment in Mishawaka’s future. By responsibly managing our wastewater infrastructure today, we ensure clean water, safe neighborhoods, and fiscal stability for decades to come.
As Mayor Wood often says: “We hire the best, plan for the worst, and serve with pride. This plan reflects that commitment.”
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