After years of struggling with crippling debt and crumbling infrastructure, Jennings Northwest Regional Utilities is suddenly on the rebound.
The Country Squire Lakes-based water and sewer utility will soon receive $7 million to repair and renovate its sewer collection infrastructure, announced State Rep. Dave Cheatham (D-North Vernon) and State Sen. Johnny Nugent (R-Lawrenceburg) on Tuesday.
That is on top of $3.8 million already earmarked to retrofit the utility's beleaguered wastewater treatment plant, work that is scheduled to begin later this year.
"This is a happy day for Country Squire Lakes and Jennings County," Cheatham said. "We have been trying for a long time to get help for JNRU. Now we have succeeded."
The grant is from the American Recovery and Reinvestment Act of 2009, better known as the stimulus package, through the Indiana Finance Authority.
"I never thought I'd see this day," said Ed Whitaker, president of the JNRU board of trustees. "We have been pleading our case to the state for many years. It has finally paid off for us."
In his seven years on the utility board, Whitaker and other board members have made at least a dozen trips to Indiana Department of Environmental Management (IDEM) and other state offices seeking help. That is not to mention making countless telephone and conference calls, sending numerous letters and e-mails. IDEM has also sent representatives here several times for meetings.
JNRU also had several engineering studies completed on repairing its wastewater plant and collection system.
"Being a squeaky wheel and having much of the preliminary work already done helped our cause when the stimulus money became available," Whitaker said. "We put in many hours and withstood a lot of frustration to finally get to this point."
The JNRU board was so frustrated in late 2007 that its members threatened to resign en masse if help from the state wasn't forthcoming.
"Since IDEM approved the wastewater plant with its design flaws in the first place, the state bears responsibility to help JNRU," Cheatham said.
Both Cheatham and Nugent met numerous times with state officials on JNRU's behalf, Cheatham noted, finally convincing them that the utility's situation was desperate.
None of the $7 million can be used to pay off any of the utility's current debt, much of it from a failed sewer expansion project. JNRU owes $5.3 million on a state loan issued seven years ago to pay off bond anticipation note holders and bond note holders who financed construction of a $1.8 million wastewater treatment plant, which went online in 2001, along with new sewer lines outside CSL.
The wastewater treatment plant has never worked properly during cold weather and has required almost constant repair. In addition, the new sewer lines were never connected to the JNRU system after a prolonged public outcry and legal wrangling killed the project.
Now the utility will concentrate on repairing its existing system without adding to the burden on its 1,300 customers.
"We won't be able to lower our sewer rates for our customers," said Jeff Fish, JNRU manager, "but the IFA has developed a plan to restructure our debt payments by extending the years we have to pay and lowering interest."
In addition to its wastewater treatment plant often being out of compliance during winter months when effluent released into Six Mile Creek doesn't meet governmental regulations, JNRU's antiquated collection system also has numerous problems. Leaks in the sewer pipes have resulted in pollution in ditches and even some of CSL's six lakes.
"We have problems with our collection system that have needed to be repaired for a long time," Fish said. "The vacuum pits overflow routinely when we have failures, for instance."
Nugent said: "This investment in wastewater infrastructure will help not only to serve current residents by improving water treatment quality, but also to prepare the utility's service area for future economic development opportunities."
"This is a blessing for CSL," said Cadie Mathis, JNRU board member.
"This is not only great for CSL but the whole community," added Dorothy Vaughn, another board member.
The grant is the largest in the state through the IFA, Cheatham noted.
"This should help restore faith and confidence of the people in the JNRU board," he said. "This board has worked really hard."
Cheatham added that help may be on the way for JNRU's water delivery system, too.
"We have high hopes on getting some grant money to help with that part, too," he said.
