Marshall County Council approves $3.4M appropriation for Sewer District BAN

Thursday, December 11, 2025 at 4:00 AM

By Kathy Bottorff

12-11-25 Thursday News 3 A.M. E-6

The Marshall County Council voted 6-1 on Monday evening to approve a $3.4 million appropriation from the General Fund to purchase a Bond Anticipation Note (BAN) related to the dissolution of the Marshall County Regional Sewer District.

County Council Attorney Marcel Lebbin reported that an Elkhart County judge denied Thomas McFadden's motion to dismiss his lawsuit against the County Commissioners. The case concerns the Regional Sewer District board and the procedures for removing board members.

The summary judgment deadline is set for Friday, December 12th.

The county will purchase the short-term municipal debt instrument from Star Bank to fulfill its commitment to the Indiana Department of Environmental Management (IDEM). A BAN is interim financing that bridges cash flow gaps while governments await larger, long-term bond proceeds.

Council President Tim Harman said the appropriation exceeds the current liability, but the county committed to purchasing the note in its petition to IDEM. The Regional Sewer Board currently has approximately $2 million in its account, with a couple of outstanding claims to pay.

"The bottom-line cost to the county will be about $1.5 million," Harman said.

Councilman Greg Compton cast the sole dissenting vote, questioning the appropriation before reaching an agreement with the Sewer District. However, attorneys Lebbin and Surrisi strongly recommended moving forward.

Harman explained that a safeguard exists: the commissioners can deny the claim if an agreement cannot be reached.

Harman also announced that a non-quorum meeting with the Sewer District is scheduled for December 11^th. Himself, Council Vice President Nicole Cox, and a county commissioner will hold a private conversation with representatives of the Regional Sewer District to work on an agreement. Harman noted that a special council meeting may follow to address any proposals.

"We will do our best to get everything done right for the people," Harman said, noting that both the County Council and Commissioners will weigh in on final decisions.