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Gary Businesses Face Stormwater Fee Hike

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  Published in Business and Finance on Monday, March 16th 2026 at 6:11 GMT by Capital B Gary
      Locales: Indiana, UNITED STATES

Gary, Indiana - March 16th, 2026 - Local businesses in Gary are preparing for a significant financial shift as the city council recently approved a revised stormwater fee structure. The measure, passed by a 7-2 vote on Friday, will see increases ranging from 30% to 100% in stormwater utility bills for many commercial properties. While city officials frame the change as a necessary step to modernize aging infrastructure and adhere to state environmental regulations, some business owners and a dissenting council member fear the impact on the local economy.

The Rationale Behind the Increase

The decision to raise stormwater fees stems from a confluence of factors. Gary's stormwater system, like that of many older industrial cities, is facing the pressures of age and increasing rainfall intensity linked to climate change. The city has struggled to adequately prevent flooding in several areas, particularly during heavy precipitation events. These events not only cause property damage but also pose risks to public safety and environmental health.

Furthermore, stricter state regulations regarding stormwater runoff require municipalities to invest in upgrades and improvements to their systems. Compliance with these regulations is crucial to avoid potential fines and legal challenges. The city estimates the new fee structure will generate an additional $1.5 million annually, earmarked specifically for stormwater system enhancements.

"This isn't about penalizing businesses; it's about responsible fiscal management and ensuring the long-term health of our city," explained Councilman William Holland during the council meeting. "We must prioritize maintaining a functional stormwater system. Deferring maintenance has become more costly in the long run, leading to more extensive - and expensive - repairs when failures occur. This is a proactive measure."

How the New Fees are Calculated The newly adopted fee structure centers around a property's impervious surface area - that is, hard surfaces like rooftops, parking lots, and sidewalks that prevent rainwater from naturally soaking into the ground. The greater the impervious surface, the higher the fee. This approach is increasingly common in municipalities across the country, as it directly links fees to the volume of stormwater runoff a property generates.

The city recently completed a comprehensive assessment of all properties within Gary to accurately determine each property's impervious surface area and calculate the corresponding fee. This assessment involved aerial imagery analysis, on-site inspections, and property owner input, a process that took nearly eighteen months to complete. The city maintains the detailed assessment data is publicly available through the city's website, allowing businesses to review the calculations impacting their bills.

Business Concerns and Potential Economic Impact

The fee increase has sparked concern among business owners, particularly small and medium-sized enterprises operating on tight margins. Marcus Thomas, owner of Marcus's Auto Repair, expressed worry about the impact on his bottom line. "Every dollar counts," Thomas stated. "An increase of this magnitude could force me to make difficult decisions about staffing or even consider relocating."

This sentiment is echoed by several other business owners in the city's downtown core. The concern isn't just about the immediate increase in expenses but also about the potential for a ripple effect, leading to higher prices for consumers and reduced investment in the local economy.

Dissenting Voices and Calls for Support

Councilwoman Deborah A. Spraggins cast one of the two dissenting votes, voicing concerns about the fairness of the increase, particularly for businesses already struggling with economic challenges. "While I understand the need to address our stormwater infrastructure," Spraggins explained, "I believe the city needs to prioritize providing assistance to businesses impacted by these higher fees. We need to explore options like tax credits, low-interest loans, or grant programs to help them absorb these costs."

Councilman Holland acknowledged these concerns, stating that the city is actively considering various support mechanisms, but no firm commitments have been made at this time. A task force is currently being assembled to investigate potential relief measures.

Looking Ahead: Infrastructure Investment and Long-Term Sustainability

The $1.5 million in additional revenue is slated for critical upgrades to the city's stormwater system. Planned projects include repairing deteriorated pipes, increasing drainage capacity in flood-prone areas, and implementing green infrastructure solutions like rain gardens and permeable pavement to reduce runoff. The city is also exploring partnerships with state and federal agencies to secure additional funding for larger infrastructure projects.

The success of this initiative will depend not only on effective infrastructure investment but also on ongoing communication and collaboration between the city and the business community. Addressing the concerns of local businesses and providing meaningful support will be crucial to ensuring the long-term economic sustainability of Gary.