Jennifer Marks said her household benefits from Beech Grove’s $37 flat rate sewer fee for all customers, which allows her family to use water without worrying about how much it’ll cost. But she doesn’t think her neighbor’s rates should increase to the city’s proposed rate of $46.75 just so she can continue paying less.
“Speaking for myself, I can absorb that increase,” Marks said during a public hearing on July 31. “I’m more worried about my neighbor that is not able to with everything else coming down.
Marks believes Beech Grove Sewage Works, the municipal-owned sewer system, should charge wastewater fees based on usage so everyone is accountable for their own share. If the city switched to that model, about 40% of residents would pay more than what the city projects would be Citizens Energy’s proposed minimum rate, according to city data.
Marks is one of roughly 20 southsiders who attended the recent meeting at Hornet Park Community Center to share concerns about a proposal to increase monthly sewer rates by roughly $10 to help prevent a $1.7 million budget deficit.
Get the backstory
Without the wastewater rate hike, Beech Grove Clerk-Treasurer Samantha Stratton said the city would be unable to adequately address emergencies and pay the utility’s employees. She also said the flat rates help people budget, unlike paying by usage.
“It kind of leads to higher, less predictive costs,” Stratton said. “And I know with everything continuing to rise and the cost of living going up, it’s kind of good. I like having a predictable cost every month.”
Some community members suggested switching to budget billing through Citizens Energy. But that would require selling the sewer system to Citizens Energy, which Stratton said wouldn’t fix the immediate problem, and budget billing could still be higher than the city’s proposed rate.
How did we get here?
Beech Grove Sewage Works receives wastewater treatment from Citizens Energy Group, which serves much of Marion County and some areas outside of the city-county boundary. The city’s utility is an intermediary that collects payments from residents for water treatment services, then pays Citizens Energy.
Communities can choose how residents are charged for Citizens Energy Group’s services. Unlike Indianapolis residents who pay bills based on household usage, Beech Grove neighbors in single- or double-family dwellings pay the same $37 flat fee each month.
But the flat rate hasn’t gone up in roughly four years despite Citizens Energy increasing its fees by roughly 20% each year, based on terms in its contract with the city. Citizens Energy has charged Beech Grove a minimum of $46.33 per household since 2021 while residents have only paid $37, according to city documents. Beech Grove has postponed rate bumps by using the city utility fund’s reserves to cover costs.
Over the last year, both Beech Grove’s emergency utility fund and the sewer’s bank account that manages operating and maintenance expenses brought in nearly $1 million less than the expenses it pays, according to city reports.
“The sewer has always been a concern,” said April McManus, a 25-year Beech Grove resident. “I don’t believe it’s maintained like it should be, but we pay a lot for it.”
In addition to paying for sewer emergencies, such as broken pipes, 15 employee salaries are paid through the sewer fund, including part of the salaries for Stratton and Beech Grove Mayor Jim Coffman.
“Nobody wants to raise rates,” Coffman told Mirror Indy earlier this week. “I don’t want to slap a $20 increase on any of our residents in one fell swoop. At the end of day we probably should, but I don’t want to do that because I don’t think it’s fair to our residents.”
Many community members suggested the city use taxpayer dollars from the general fund to help sustain the sewer system. But Stratton said it’s illegal for the city to use that money to subsidize the utility.
With that idea thrown out, residents and council members questioned if it’s beneficial for the city to have a business that doesn’t have a larger return on investment without raising prices for neighbors. If Beech Grove sold ownership of the wastewater pipes to Citizens Energy, the city would no longer have to worry about paying sewer employees.
But Stratton said those employees have additional tasks around the city, like helping with trash services and installing American flags around town.
“It’s not just the sewer, it’s kind of just whole city maintenance that if the utility were to go away,” Stratton said, “the changes would be pretty abrupt and, in my opinion, kind of severe.”
Some neighbors also suggested that the issue of keeping or selling the sewer fund should be taken to the ballot box and voted on by residents.
What’s the plan?
The Beech Grove Common Council will vote on the wastewater and stormwater ordinances during its monthly meeting Aug. 4.
The proposal is to raise sewer rates from $37 per month to $46.75 upon council approval, then bills would jump to $56.75 in September 2026. Commercial rates for businesses, including apartment complexes, are charged a minimum fee that would increase to $55.65 this summer then rise to $67.34 next fall.
If approved, the city will discuss rates next year for 2027 and beyond.
The Beech Grove Common Council will consider another proposal that could raise stormwater rates higher than the $3.75 cap that was approved in 2018. The Stormwater Utility helps maintain underground storm pipes and catch basins to help prevent flooding and address water quality. If approved, the monthly fee would increase to $5.25 for customers.
The Beech Grove Common Council meeting will begin at 7 p.m. Aug. 4 in the Council Chambers of Beech Grove City Hall, 802 Main St.
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Mirror Indy reporter Elizabeth Gabriel covers the south side of Marion County. Contact her at elizabeth.gabriel@mirrorindy.org. Follow her on X at @_elizabethgabs.
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