After being tabled for months, the Gary Common Council, at its Tuesday meeting, approved two Gary Sanitary District-related ordinances that would change the city’s wastewater treatment and stormwater fees.
Both ordinances passed in a unanimous 8-0 vote. Councilwoman Mary Brown, D-3rd, was absent from Tuesday’s meeting.
Gary City Court Judge Deidre Monroe gave an overview of the wastewater treatment ordinance. Monroe told council members that she was giving an overview because GSD Executive Director Ragen Hatcher was in Indianapolis for her work as a state representative during the 2026 legislative session.
Rates have not increased since 2001, and Hatcher said “substantial upgrades” are needed for the GSD plant, which are expected to cost about $155 million, according to Post-Tribune archives.
According to ordinance documents, the wastewater fee increases are for “non-residential” users. Hatcher previously told council members that the increases would impact about 28 industrial users and 1,800 commercial users throughout the city.
The average commercial user in Gary uses between 2,000 and 3,000 gallons of water per month, and the rate increase would be about a $15 change in their bill, according to Post-Tribune archives.
Monroe continued to express Hatcher’s sentiment that the money is needed to expand GSD operations.
“Of course, that’s not going to be done without the increase in fees,” Monroe said. “That’s the first step, and the first step has been asked, pretty forcibly, from the (U.S.) Department of Justice as well as the (Environmental Protection Agency).”
Monroe reiterated that the changes will not affect residents.
“We have not had a rate increase in several years,” she added. “It’s not going to be tremendous, and it’ll be on par with our neighboring places, and it’s to benefit the city of Gary.”
According to council documents, stormwater fees have increased for infrastructure management projects, salaries, security and maintenance.
Stormwater fees for industrial buildings is $162 per month, according to Post-Tribune archives. All commercial plots, including buildings with more than 19 units, will be $90 per month, and those between four and 19 will be $62 per month.
Brenda Scott Henry, Gary’s office of sustainability and environmental affairs director, gave an overview of the stormwater ordinance in Hatcher’s absence.
Scott Henry said the change is a fee increase and unrelated to taxes. It will still show up on property tax bills because the property tax bureau charges the fees, she added.
In addition to the rate ordinances, Vice President Darren Washington, D-at large, had a sanitary district-related ordinance that was on third reading before it was sent back to the planning and development committee for additional discussion.
Washington’s ordinance seeks to amend sewer rate provisions that would place liens on rental properties in the city, according to council documents.
Hatcher previously said an Indiana State Board of Accounts audit found the department has a “number of outstanding bills.” Per state law, GSD has three years to either put liens on properties or make owners aware of the liens, according to Post-Tribune archives.
In April, the GSD sent property owners lien notices for 2022 and sent 2023 lien notices in May. At the time, Hatcher said 2024 notices would be sent at the end of June or beginning of July, according to Post-Tribune archives.
A property lien is a legal claim by a creditor to recover an unpaid debt or obligation, according to the National Association of Realtors.
Multiple landlords have spoken against the notices, saying that they’re worried the liens will be charged to property owners instead of renters who haven’t paid bills. In July, Griffith-based Cavender Properties filed a lawsuit against GSD, alleging that the department recorded or threatened to record a lien without complying with Indiana’s notice requirements.
According to online court documents, the lawsuit was dismissed on Jan. 13, with both parties agreeing that no lien should be recorded or enforced if a notice was received before July 9, and all future notices will comply with Indiana Code.
Washington’s ordinance aims to ensure that tenants will be responsible for lien payments if they can provide written notice or if the sanitary district account for the property is in the tenant’s name. The liens will only be paid by the property’s occupants and will not apply to non-rental properties, according to the ordinance.
The ordinance will be heard by the planning and development committee one more time before returning to the council for final approval.
