Beech grove sewage works
What Happens If We Don’t ADJUST Sewer Rates?
For the past three years, the City has kept monthly sewer rates flat at $37, despite steadily rising treatment costs from Citizens Energy and increased operational demands. We’ve done this by covering the shortfall from the sewer fund’s limited reserves. That approach is no longer viable.
If sewer rates are not adjusted soon, the consequences will be serious and immediate:
- The sewer utility will begin operating at a deficit — meaning it will no longer be able to cover the basic costs of maintenance, emergency repairs, or payrol
- City employees who handle billing, system maintenance, and line repairs are paid from the sewer fund. Without adequate revenue, those salaries may be at risk — which threatens our ability to provide consistent service.
- State regulators could intervene. If the utility’s finances become too unstable, the Indiana Utility Regulatory Commission (IURC) could step in, limiting local control and imposing changes.
- Emergency situations could leave us without options. Right now, if a major sewer collapse occurred, we would not be able to borrow money to fix it — because the fund doesn’t have the financial stability needed to issue bonds or take out loans.
- Residents could end up paying even more. If the current flat rate is rejected, the alternative would be usage-based billing — and based on our analysis, every resident would pay more than the proposed $46.75 flat rate under that model.
This is not about raising money for unrelated projects. It’s about preserving a critical utility, preventing regulatory takeover, and avoiding more costly outcomes down the road. The proposed increase is a necessary step to protect public infrastructure and ensure the continued operation of services we all rely on.
A NOTE ON THE PROPOSED SEWER RATE INCREASE:
This information linked below was provided to the Council on July 3 (residential) with updates sent 7/14 on Commercial and Expenses/Revenue.
The City Council recently asked what it would look like if Beech Grove residents were billed for sewer based on actual usage, like Citizens Energy does, instead of a flat monthly rate. Using May 2025 data as an example, we found that
every single residential customer would have paid more
if billed by usage — even if the flat monthly rate were raised to $46.75. There have also been concerns that residents are paying more than commercial accounts. That is
not the case under both the current and proposed ordinance as the lowest amount a commercial account can be charged is higher than the residential minimums.
Right now, residents pay $37/month for sewer services, but the City has been covering the difference between that rate and the actual cost for the past few years. That’s no longer sustainable. The proposed increase is not about funding new projects – it’s about keeping the utility solvent as costs rise.
It’s also important to understand that the sewer utility is not just a bill collection service – it’s a full municipal operation. The utility owns and maintains infrastructure like sewer lines and billing systems. It employs staff who repair lines, manage customer accounts, and ensure compliance with state and federal regulations. All of these costs are paid directly out of the sewer fund.
The sewage utility operates like a business. Revenue from customer charges doesn’t just cover treatment costs, it also pays for the people who run the system. Just like when you buy a coffee at Starbucks, part of that money goes toward employee wages, operations, and infrastructure. This isn’t unusual or shady – it’s how service-based enterprises function.
This is why the sewer utility must be viewed as a self-sustaining city department, not just a pass-through for Citizens Energy charges. Like any department — police, EMS, or parks — it has operating expenses, payroll, and capital needs. If rates don’t cover those costs, service quality and infrastructure reliability suffer.
This proposed ordinance ensures that:
- The utility fund remains stable and self-supporting
- Employees who provide essential sewer services are paid
- Residents still pay less than they would under Citizens Energy’s usage-based billing
The goal is to protect our infrastructure and maintain high-quality service, not to profit — but also not to operate at a loss.
Please do not hesitate to email me, call my office, or stop in City Hall if you have any questions.
Samantha S. Stratton
Clerk-Treasurer
317-803-9112
samantha.stratton@beechgrove.com
Have a question or concern you would like to make sure is covered in the presentation at the public hearing? Submit it below.
Submit Questions prior to public hearing
MAY sewage rates by usage
compared to current and proposed ordinance
How to pay your monthly utility bill
Your monthly utility bill from Beech Grove Sewage Works includes sewer, stormwater and trash service. Questions regarding your bill or liens can be directed to 317-803-9120 or by emailing sewageworks@beechgrove.com.
You may continue to mail your payment, make your payment on location, or use one of the two convenient 24 hour drop-boxes located at 806 Main Street on the 8th Street side of City Hall or in front of the Administration Building. No fees apply to physical payments.
There is a small fee to pay online with Invoice Cloud or by phone at (855) 985-1091. Online payments are maxed at $150.00. If more is owed, you must make multiple transactions.
In the Sewage Works Office we will continue to accept checks, money orders, cashier checks or cash. City Hall does not accept credit card or debit cards in office. Credit/Debit card payments must be made online or by calling (855)985-1091 and fees do apply.
If you choose not to pay your bill online, you can still enroll in paperless bill to be able to conveniently view your bill at anytime. It's free and no fees apply.
Sewage Works Office
City of Beech Grove Administration Building
806 Main Street
Beech Grove, IN 46107
Office Hours
M-F: 8:00am to 4:00pm
(317) 803-9120
