The Beech Grove Common Council voted 5–2 on Tuesday to approve the first reading of a phased sewer rate increase, following heated public comment from residents urging the city to cut spending instead.
The ordinance will raise the monthly residential sewer fee from $37 to $57.50 by September 2026. An original third-year increase to $63.75 was removed through an amendment that passed 6–1.
Clerk-Treasurer Samantha Stratton reported that the sewer utility fund is currently $205,845 in the negative and will likely dip below zero again after the city’s next wastewater bill.
“The gap between what the city is being billed and what we are currently charging each month has grown too wide,” Stratton said. “That imbalance is no longer sustainable and is now placing a significant strain on the city’s overall finances.”
During public comment, residents criticized the city’s approach.
“Instead of increasing all the time, has anybody ever considered cutting spending?” one resident asked. She questioned the number of assistant staff in the clerk-treasurer’s office and the presence of unused police vehicles. “Those jobs have been done by two full-time people in the past. Is there something wrong that all of a sudden we need five people?”
The resident further objected to salaries being partially paid from the sewer fund.
“The sewer funds need to be more accountable. It’s like where is the money going now?” she said. “That money should go to the sewer services—not salaries.”
Stratton responded that staffing levels reflect the increasing workload and utility responsibilities handled by the office.
She further warned that if the fund ends the year in the negative, “not only does the Department of Local Government Finance have the right not to approve our 2026 budget, but the IURC can also step in and take control of the utility.”
The ordinance passed on first reading with a 5–2 vote. A second and final vote is expected next month.