THE LAWRENCE LIFT
August 2016
Recently, you may have seen an article in The Indianapolis Star concerning an increase in sewer rates for Citizens
Energy Group (CEG) customers, which will increase the typical residential customer’s bill by $8.50 in August 2016 and
an additional $2.50 in 2017. In the past, some Lawrence residents have mistakenly understood CEG increases to have
an impact on their sewer bills. Lawrence Utilities wants to inform its customers: this increase does not affect
customers who are billed by Lawrence Utilities. Lawrence sewer customers should know LU sends its sewage to CEG
for treatment at the Southport Advanced Wastewater Treatment plant. Under this agreement, Lawrence pays a
charge per thousand gallons of sewage treated. Increases in the treatment costs paid by Lawrence are typically passed
on to Lawrence customers by means of the “sewer tracking factor”, which can be seen on the monthly bill. Typically,
Lawrence receives an annual increase from CEG based on the Consumer Price Index – All Urban Consumer factor,
which is then seen in the sewer tracking factor. For example, in 2016 Lawrence Utilities increased the tracking factor
by $.06 per thousand gallons from the $.04 per thousand gallons in place at the beginning of 2016, which is $.10 per
thousand gallons, or an additional $.50 on a typical monthly residential bill with consumption of 5,000 gallons. The
tracking factor had not been adjusted for the previous 4 years although increases were passed on to Lawrence by CEG.
While these are normally small increases (usually $.015-$.02 per thousand gallons), all increases in treatment costs
from CEG to Lawrence are handled through the tracking factor, as is the intent of the City’s Ordinance No. 4, 2009.
It is interesting to note that in a 2015 report prepared for the City by Umbaugh and Associates, Lawrence was at the
low end of the spectrum in a comparison of monthly sewer bills for 18 different, but similarly-sized communities.
Assuming a usage of 4,000 gallons, Lawrence was at $24.92, while the low end of the scale was $22.94 and the high
end was $55.00. This does not take into account the differing circumstances affecting rates from one utility to another,
but does serve to point out that Lawrence customers do not pay the ‘highest rates around’, which has been the
perception out there for some time.
Lawrence Utility customers need to understand that Lawrence pays for every drop of water hitting the city’s sanitary
sewer system. To minimize the impact on customer sewer bills, it is necessary to prevent the introduction of rain
water and ground water into the sanitary sewers. While the City is addressing this problem with projects on the public
portion of the sewer system, property owners can help by disconnecting illegal connections such as sump pump
discharges, roof/gutter drains, and foundation drains. All of these are prohibited by City ordinance and not only
increase treatment costs, but also take up capacity in the sewer system that should be used for sewage only and is a
factor in causing sanitary sewer overflows as well.
The 2015 Umbaugh report evaluated the water rates in a similar manner. Lawrence was closer to the middle of the
pack, but is slightly higher than the average of $24.33 per 4,000 gallons with a monthly charge of $25.27 for 4,000
gallons usage. The low end of the spectrum was at $12.21 per 4,000 gallons, and the high end at $35.66 per 4,000
gallons usage.
The Utility is presently having an analysis of both its water and sanitary sewer rates conducted in order to determine
the rates that need to be in place to support capital investments to the aged and deteriorating infrastructure. These
steps insure compliance with regulatory requirements and capital improvement commitments made under the Agreed
Order with the EPA. LU is addressing the 24-inch interceptor pipe under Indian Lake, as well as continuing to remove
sources of ground and rain water from the sewer system. This leads to surcharging, sewer spills, and a loss of capacity
that should be reserved for existing and future flows.
Infrastructure issues for the water system include: the Richardt Street and Fort Harrison Water Treatment Plants both
need extensive work, with Richardt being a top priority; the Oaklandon elevated water storage tank requires structural
improvements and paint; and the 52nd Street tower, though recently painted, needs structural repairs that were not
completed during the 2013 painting project due to funding restrictions. Finally, the water utility has miles of water
main in the older parts of the City needs to be replaced due to age, condition, and size. The pipe is too small in
diameter to provide proper flow for today’s firefighting needs. Given the number of water main breaks and discolored
water complaints, a robust water main replacement program is long overdue and the goal is to replace a minimum of
one percent of the water main inventory per year.
In order to provide the highest quality water and sanitary sewer service to our customers and to operate and maintain
these systems with the highest degree of professionalism, efficiency and reliability, funding must support our needed
improvements as well as our routine operating costs. To ensure the utilities run properly, adequate investment in
infrastructure along with effective asset management programs is a must. The dedicated, skilled and professional staff
is already in place, and they do an outstanding job of operating and maintaining the water and sewer systems for the
City’s residents and businesses. But the infrastructure improvements and updates require our attention and action. As
a community, we need to determine what level of service is important to us. If the lowest possible monthly utility bill
is our priority, then we may reasonably expect increased system failures, potential for boil water advisories, sewer
spills and other consequences of a neglected water and sanitary sewer system. However, if smaller, more frequent
(three to five year) rate increases enable the Utilities to perform needed upgrades and replacements to maintain
excellent water and sanitary sewer services in the future, the smaller rate increases may a viable solution. We hope
this will enable our customers to plan and prepare household budgets accordingly.
DON’T FORGET LAWRENCE COMMUNITY SAFETY DAY ON AUGUST 13th from 10:00 am to
2:00 pm at FIRE STATION NUMBER 40 ON THE CORNER OF 59TH STREET AND LEE ROAD!!