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per year. It was a high burden before but we got twenty (20) year to do it instead of fifteen (15) <br />which while that is helpful it has its own issues because it pushes it off further. If you have an <br />affordability issue it doesn't go away by adding time to the project. <br />Committee Chair Dr. Varner stated he believes it begins with information which was totally <br />lacking in the initial process. The fact that the Administration is able to do this and keep people <br />informed is a good start. Regarding affordability it is something that is pretty easily defined. He <br />stated it is his opinion that the City never should have signed the consent decree because the City <br />was restricted on the decree to two point six one percent (2.61 %) when the EPA already <br />considered two percent (2 %) as being unaffordable. The big burden is we were never asked to <br />sign this but are being asked to fund it. The willingness to keep people informed is a good start <br />and if we have to go to litigation someone has to be able to go ahead and do it because <br />unaffordable is still unaffordable. <br />Committeemember Dr. Ferlic stated Committeemember Davis is exactly right. Even with the <br />2007 numbers when the decree was signed in 2012 there were two (2) studies done that showed <br />economically we could not afford anything over $400 million. From the engineering standpoint <br />they are doing a tremendous job and we also have a legal firm working with us in Washington <br />D.C. It is the accounting that is a disaster. This three point seven percent (3.7 %) is probably one <br />(1) of the highest in the nation. We basically cannot afford this. We are still dealing with a $600 <br />million project without financing. That is where we get the really big numbers. You also cannot <br />file bankruptcy in the State of Indiana. We have a problem where people will not be able to live <br />in South Bend and companies will not be able to locate here unless we develop a solution to this. <br />Councilmember Tim Scott stated other cities along the St. Joseph River have to do this as well. <br />He asked where they are on this. <br />Committee Chair Dr. Varner stated Mishawaka and Elkhart were done somewhere in the <br />neighborhood of $140 or $150 million dollars. They got nine (9) overflows as opposed to our <br />four (4). The economic issue is not that someone could not find the money it's that business will <br />not be able to operate here. What will eventually happen is each business wanting to come in will <br />have a special water rate or they will just go to Mishawaka. The economic issue is much bigger <br />than people realize. <br />Committeemember Dr. Ferlic stated you can kick the can down the road only so far but you are <br />financing it all along. <br />Committeemember Davis stated when we first had this come to us we saw back in 2012 this <br />wasn't going to work. He stated almost five (5) years ago he was in favor of making a legal <br />argument. <br />Committee Chair Dr. Varner stated there is a natural opening in the consent decree at five (5) <br />years where the City can request a reassessment. He stated he believes from day one (1) the plan <br />was to do Phase One (1) and then argue for this reassessment. <br />5 <br />