An agreement reached between the Hammond Sanitary District and the town of Griffith means Griffith residents can expect an increase in their water and sewer bills soon, but that won't be the worst of it, according to Griffith Town Council President Rick Ryfa.

Hammond Sanitary District Manager Marty Wielgos said in a release that the two entities on Tuesday reached an agreement over water and sewer rates, which put to rest a 3 1/2-year argument that ended up in the Indiana Supreme Court last year.

The Sanitary District approved its part of the agreement during its Tuesday afternoon meeting; Griffith approved its part at its Town Council meeting Tuesday evening.

Wielgos called the agreement “monumental” for the four municipalities who contract with the HSD. Griffith is the first to reach an agreement with HSD, and Highland isn't far behind, he said.

“Highland's agreement is more complex because (the town) needs more capacity, but we're very close,” he said. “And (Whiting) Mayor Joe (Stahura), who's been great during this whole thing, seems to be waiting to see what happens with the other two agreements, as I'm sure I would if I were him. But we expect it won't be too much longer for Whiting.”

Wielgos called the intervening time between the lawsuit and Tuesday's agreement “very tough and trying” because of the complexity of each agreement. But seeing the hard work of everyone involved come to fruition made it “a proud day.”

“I knew as long as we were able to convince (the three) to pay more than they're currently paying, it was win for both sides,” Wielgos said.

Ryfa attributed the agreement to new people on both sides working toward something with which both sides were satisfied.

“(Hammond Mayor Thomas) McDermott and the district were protecting their folks, obviously, and we're doing the same,” he said. “The end result will be a moderate rate increase in the short term, but the town should be able to mitigate the cost by the fact that some long-term debt on the sanitary side will fall off and get replaced by this.

“Rate payers won't see a whole lot of difference,” and the town should have a better idea of actual numbers within the next 30 to 60 days, he said.

Ryfa said the town is also in the middle of a bond issue that will not only soften the first rate increase and other costs to HSD but will pay for a new water main receptor from Wood Street along the railroad tracks to 45th Avenue.

The cost to replace the main is between $4 million and $5 million, he said.

But residents will need to brace themselves for a much bigger chunk to be taken out of their wallets, Ryfa warned.

An EPA mandate, of which the town must sign the consent decree by the end of the year, will see the town make upgrades to its sanitary system that will ensure it never puts wastewater into the Little Calumet River.

“We will need to spend between $15 million and $20 million to get this done, so there will be a very significant rate increase or property tax increase,” Ryfa said.

Hammond sued Griffith, Highland and Whiting to break the agreements the three municipalities had with HSD, so it could charge them higher rates. The case made it to the Indiana Supreme Court, which sided with the three.

The revenue increase from the new rates is expected to help fund more than $240 million in sewer upgrades the U.S. Environmental Protection Agency has mandated the city of Hammond to make.

“I'm pleased that the Sanitary District and the town have finally come to a mutual agreement over past and current sewer fees and a way forward in achieving clean water for our communities,” McDermott said in the release. “It has taken a long time for us to get to a point where both parties can move forward in achieving the best possible result for our citizens and environment.”

Michelle L. Quinn is a freelance reporter for the Post-Tribune.