Valparaiso officials are gearing up to drill three new municipal water wells, backed by a roughly $10 million bond issue as they hustle to keep up with growth and rising peak-day demand. At the same time, the city is negotiating with Indiana American Water over whether treated Lake Michigan water should serve as a long-term supply or a backup to Valparaiso’s existing groundwater system.
The City Council is weighing a proposed $10 million bond that would pay for three new wells and about 11,200 linear feet of transmission pipe to the Flint Lake treatment plant. The full package is estimated at just under $13.4 million and, if the financing is approved, construction is scheduled to begin on Aug. 1, 2026. City staff say the new wells are meant to add redundancy and bolster firm capacity as additional neighborhoods connect to the system. As reported by Chicago Tribune.
Where the water comes from now
Valparaiso’s utility currently relies on groundwater production at the Flint Lake and Airport treatment plants, and the city’s 2026 planning materials flag a new wellfield as a priority project for this spring and summer. The system is divided into two service zones, with a Billings Street booster station that can shift water between them, and the planned east-side wells are each expected to add about 2 million gallons per day of capacity to improve redundancy. As outlined by City of Valparaiso.
Money and timing
City finance staff and outside advisers have presented the bond plan as a way to expand capacity while holding off, at least for now, on another large rate increase, using a mix of reserves and phased construction in an effort to soften the impact on customers. Technical consultants who have worked on recent well projects say the long lead time for design, permitting and drilling makes a summer 2026 construction start line up with typical delivery schedules. For context on advisory work and past well projects, see project notes from INTERA.
The utility currently holds roughly $13 million in cash reserves, and staff have told the council the plan could tap up to $4 million of that to avoid an immediate rate hike. Officials estimate average daily demand at about 4.8 million gallons and say peak-day use could climb from around 6.8 million gallons to 8.9 million. Firm capacity is pegged at roughly 8.6 million gallons without the two largest wells and would rise to about 9.1 million gallons with the three new wells online. City engineers add that wells typically last about 30 years, or up to 40 years if conditions are favorable, a lifespan that is helping drive the parallel talks over whether to buy treated Lake Michigan water. As reported by Chicago Tribune.
What to watch next
Council members are set to take public comment at a June 8 hearing on the proposed bond. If the financing and construction package advances, the city plans to phase the work so new production comes online while negotiations continue over a possible Lake Michigan connection. City documents describe the proposal as a near-term move to protect reliability for existing customers and anticipated growth while keeping the option open for a longer-term source shift. As outlined by City of Valparaiso.
