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An agreement before St. Joseph County commissioners Tuesday would require the county, city of Mishawaka and Microsoft to find an alternative funding source for water infrastructure if the county council won't approve a tax incremental financing district.
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St. Joseph County is managing the water extension project and Microsoft is paying for it, and then the city of Mishawaka will assume ownership and maintenance of the new water lines.
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Mishawaka officials are making their case for a water rate hike. The average residential customer could expect their monthly water bill to go up by at least two dollars a year for the next five years, under the proposed ordinance.
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St. Joseph County two years ago hired a firm to identify existing Granger subdivisions with failing septic systems, but paused that work recently when its dispute with Mishawaka developed over who would serve the planned Microsoft data center with water and sewers.
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City of Mishawaka officials say the 3.75% annual rate increases over five years will help fund sewer upgrades that have been mandated by the U.S. Environmental Protection Agency to stop raw sewage from entering the St. Joseph River during rainy weather.