ST. JOHN — The town is considering a 30% increase to its water rate and a 10% increase to its sewer rate. 

During a study session Wednesday, the St. John Town Council introduced and discussed the hikes, which will be considered at its regular meeting later this month. 

The discussion comes after the town asked residents to be mindful of their water usage in August after town officials raised concerns over a fast drop in water at one of the town’s towers, according to a previous Times report. 

“Our water usage continues to grow, not just in the matter of as the residents grow, our water usage continues to grow, but I think it’s growing at an average (of) about 40 million gallons per year, over the last few years,” Town Council President Gerald Swets said.

“Every summer, we get into summer sprinkling time, where we take care of watering the grass, watering the flowers, and we spend about a half a million dollars a year buying water from Schererville because we just use so much more water in the summertime than we do in the winter.”

To meet the increased water usage, Swets said, the town is considering upgrading its water distribution system. 

Swets said the town would take out an $8 million bond to complete the work, including a new supervisory control and data acquisition (SCADA) system, which monitors the town’s distribution system; improving the town’s water systems, including wells and lift stations; upgrading water mains; and potentially installing two new wells on the east side of St. John. 

Swets noted the council’s goal is to keep tax dollars down, but the town has “a lot” of water mains and sewers that need to be upgraded and replaced. 

“I think this was probably one of the most responsible ways for us to be able to get this done within the town,” Swets said. “Again, without raising your taxes. Yes, there’s going to be a water rate increase, but I don’t really think that’s that significant.” 

Eric Walsh, a municipal advisor with Baker Tilly, said the sewer rate increase will generate $300,000 annually for “needed capital and infrastructure replacement,” with $400,000 created from the water increase, outside of large projects St. John is considering.

While the generation might start at $300,000, the town will begin to “eat into that amount,” as the cost of treating sewers and the number of employees increase, Walsh said. 

Walsh later added the increase will get the town through a minimum of five years. 

In a Facebook post, Clerk-Treasurer Beth Hernandez broke down what the increase would look like for residents. 

Currently, the town’s water rate for the first 100,000 gallons is $3.26 per 1,000 gallons, and $1.63 per 1,000 gallons for over 100,000 gallons. 

The proposed water rate would increase the rates to $4.24 and $2.12, respectively. 

On the sewer side, the town’s current rate is $3.51 per 1,000 gallons for the first 2,500 gallons, and $4.95 per 1,000 gallons for over 2,500 gallons. 

The ¾-inch meter rate is $6.55, and a 1-inch meter rate is $14.85. 

As presented, the town’s rate would increase to $3.86 per 1,000 gallons for the first 2,500 gallons, and $5.45 per 1,000 gallons for over 2,500 gallons. 

The ¾-inch meter rate would be $7.21, and a 1-inch meter rate would be $16.34. 

The council is expected to vote on the increase at 7 p.m. April 28. The meeting will be held in person and streamed on the town’s YouTube channel, Town of St. John, Indiana.