Marshall County Regional Sewer District dissolves, county takes on debt

MARSHALL COUNTY, Ind. — In a 5-0 decision, the Marshall County Regional Sewer District dissolved its board on Friday.

Monday morning, the county council and county commissioners unanimously voted to accept a settlement related to the dissolving. That means the county will need to pay back the $1.6 million that had already been spent on the project.

The sewer district was designed to address a report from the Indiana Department of Environmental Management, which in 2022, recommended that dozens of homes in the county switch from septic to sewer systems.

The board was formed and began working on designs for the switch. But once residents in affected areas found out, they began to share concerns about the potential costs involved.

While initially told that the project would cost each homeowner less than $100 a month, county commissioners say the number ended up closer to $200 since the board couldn’t secure federal grant funding. Residents would need to pay the monthly rate for the next 30 years if the project moved forward.

Residents say they took their concerns to the county. Commissioners and council members tell ABC57 they asked that the sewer board slow down on the project but were denied. When the county attempted to replace the sewer board President, Thomas McFadden, he declined.

So, the county took the situation to IDEM, which determined in a release sent out on Oct. 31, that the district would need to dissolve. The board didn’t appeal the decision, leading to Friday’s shut-down vote.

County commissioners tell ABC57 that part of encouraging IDEM to dissolve the district included a ruling that the county would have to pay back the $1.6 million already spent on the project.

County officials say this is the first time in state history that IDEM has decided to dissolve a district after its launch.