On Webster Lake's East Shore, the Sewer Bill Arrives Before the Sewer

On the east shore of Webster Lake, owners are paying a sewer charge for pipe that isn't connected to anything yet. Under the rate ordinance adopted on February 9, 2026, the full monthly rate starts once the sewer is available, whether or not the house has been connected. Most of the cost and most of the deadlines are set by the calendar, not by the condition of the house. A home that sells here between now and mid-2027 comes with a running charge, a connection deadline that hasn't started yet, and sometimes a septic exemption with years left on it.

None of that shows up in a listing photo. All of it can show up at the closing table.

Where the Line Is Drawn

The service area is bounded by Epworth Forest Road on the north, County Road 975 on the east, Backwater Road on the south and the Webster Lake shoreline on the west. In 2022 the Times-Union reported that nearly the whole lake already had sewer available except this shore, which sat in county territory far from existing lines. The district's preliminary engineering report describes the area as mostly private wells and septic systems and plans for about 199 customers. Their wastewater will run through the existing Knapp Lake force main to the North Webster treatment plant.

The Tippecanoe and Chapman Regional Sewer District is building the system. Board members put the project at roughly $7.4 million, with $5 million coming from a State Revolving Fund grant and the rest from a long-term, low-interest SRF loan. That loan is why the monthly rate has a debt-service portion, and why the billing started before the sewer did.

Two Rates and the Gap Between Them

The ordinance sets two rates. During construction, owners pay an interim rate of $60.90 per equivalent dwelling unit per month. Once the system is finished and connections are required, the rate becomes $110 per month. For a single-family home, the $110 is made up of a $62.50 user charge and a $47.50 debt-service charge.

This is already being billed. By May 31, 2026, the district had collected about $25,000 in partial user fees and meter charges. By June 30, the East Webster operations fund held about $39,000. The ordinance spells out when the higher rate begins:

"...beginning with the first full month after the sanitary sewers for District customers from the Webster Lake Project are available for connection and use to any lot, parcel of real estate or building, the customers/Users/Owners of the District who are required to be connected shall then be subject to the full Schedule of Rates and Chargers..."

The wording that matters is "available for connection and use." The rate doesn't wait for a plumber to finish the work. At these rates, a year of interim charges comes to $730.80 and a year at the full rate comes to $1,320. The board chose the $110 rate without a connection fee. It also considered a $1,000 fee that would have brought the monthly rate down to $105.30, but that option did not pass.

The ordinance bills only owners, never tenants. Delinquent charges get a one-time 10% penalty, and the district can file liens for unpaid amounts. The district's published materials don't say how an unpaid balance gets split between seller and buyer at a sale. So the purchase agreement has to settle it.

The Calendar a Buyer Inherits

Because the full rate is tied to the date the sewer becomes available, construction progress matters more to a sale than anything in the house. Here is the schedule as of the most recent district documents.

At the August 10 meeting, engineering consultant Steve Henschen said crews were working south from the north end of the project and had recently reached the marina area. The first grinder station shipments were expected in September. The board has not yet set a date when the system will be declared available. A home closing this winter will almost certainly change hands while the interim rate is in effect. A home closing next summer may close right as the full rate and the connection deadline begin.

Who Pays for Which Part

According to the district's East Webster sample easement packet, the district installs the grinder station, the lateral and the public lines, and owns, operates, powers and services them. The rest falls to the owner:

• Building sewer. The pipe from the house to the grinder station stub.
• Septic abandonment. The existing tank has to be taken out of service.
• Electrical. Electric service on the property, the power the grinder uses, and any panel upgrade the house needs.
• Permit and inspections. The posted Sewer Use Ordinance charges $250 for a single-family application plus $50 per inspection, and estimates two inspections for a typical home. A September 2025 rate ordinance listed a $200 permit fee instead, so confirm the current amount with the district.

The only hookup cost figure on record came from a Webster Lake resident at the February 9 board meeting. Based on that resident's own research, connecting the resident's house to the grinder and disabling its septic system would cost an estimated $4,000 to $6,000. It is not a bid. A buyer who wants a real number should get a contractor quote during the inspection period.

A permanent 15-foot utility easement also stays with the property after construction. As of August, 190 easements had been signed, about 95% of those needed. Nine remained unsigned. On a lake lot where every foot of yard counts, it's worth asking where the easement sits relative to a planned patio or garage.

The Deadline That Hasn't Started

The Sewer Use Ordinance generally requires connection within 90 days of official notice. At the February 9 meeting, Steve Henschen said no one has to connect until the district sends a letter announcing that the project is done, which he expected in May or June of 2027. From that letter, owners would have at least three months to connect, and typically six. No East Webster connection notice has been issued yet.

The district's August 10, 2026 board minutes show how enforcement works in practice. The deadlines there were December 22, 2025 for Contract A at Chapman Lakes, May 13, 2026 for Contract B on West Tippecanoe and June 29, 2026 for Contract C on East Tippecanoe. District counsel said state law allows penalties of up to $100 a day. For Contract A, the board started at $1 a day for up to 90 days after notices went out. By August, fines had begun for the Contract A properties that hadn't connected. In July, the board's minutes recorded certified letters going out to Contract B and C owners who hadn't connected.

For a sale, the point is simple. If the notice arrives while a home is under contract, the 90-day clock can start before closing, and the deadline becomes the buyer's problem afterward.

When the Exemption Transfers

Some owners will skip connection for now through Indiana's septic exemption, IC 13-26-5-2.5. To qualify, the system must have been new when installed, approved in writing by the local health department, and certified as not failing. The initial exemption runs 10 years, with two possible five-year extensions. If the property sells, the buyer gets whatever is left of the current exemption period and can apply for the remaining extensions. The total can never exceed 20 years, no matter who owns the home.

As of August, the district had approved three exemptions. One exempt owner asked to stay in the project as a debt-service customer so a grinder station would be ready when the septic system fails or the exemption runs out. That choice makes sense given what the project engineer told residents in 2025. An exempt owner whose system later fails could face the full cost of a grinder station, estimated at $25,000 or more in future dollars, according to InkFreeNews. An exempt home can look cheaper to carry month to month. What it actually comes with is a deadline and a possible bill later on.

What the Paperwork Covers

Indiana's Seller's Residential Real Estate Sales Disclosure, State Form 46234, asks whether the structures are connected to a public sewer system. It also lists septic fields, septic and holding tanks and other sewer systems in its condition checklist. The seller reports current actual knowledge, and the form notes that buyers may want professional inspections. The Kosciusko County Health Department's septic page covers permits for new systems and for repairs or replacements. It does not list a point-of-sale inspection requirement. Neither document asks about interim charges, exemption status or the easement. Those questions have to come from the buyer, the seller and their representatives.

Questions for an East Webster Contract

Who pays interim charges billed before closing? Nothing in the district's materials decides this. Write a proration into the purchase agreement, and ask the district for the account balance before closing.

Has the property claimed or received an exemption? Ask for the health department determination and its date. The date tells you how much of the 10-year period is left.

Has a connection notice been issued? Ask before signing and again before closing. A notice that arrives mid-contract changes who carries the deadline.

Who should confirm the current figures? The district. Its next board meeting is October 12, 2026 at 6:30 p.m. This post is general information, not legal or financial advice.

If you own on the east shore or are looking at a home inside these boundaries, I can help you work through the sewer timeline, the paperwork and the proration terms before they become a surprise at closing. Billie Shively works with buyers and sellers around Webster Lake to get these details settled early. Let's Connect.