Monona City Council has proposed a significant 20% increase in sewer rates to address rising costs and meet financial obligations tied to revenue bonds. This decision, discussed during the June 16, 2025, meeting, stems from escalating expenses primarily driven by the Madison Metropolitan Sewer District (MMSD), which accounts for approximately 90% of the city's sewer utility costs.

City officials highlighted that the MMSD has raised its rates substantially over the past few years, with a notable 20% increase anticipated for the upcoming year. This surge in costs has strained the city's ability to maintain compliance with bond covenants, which require that revenues exceed operating expenses by a specific ratio. Without the proposed rate hike, Monona risks falling short of these financial requirements.

The council's discussions revealed that the city's sewer usage has remained relatively stable, yet the costs imposed by the MMSD continue to rise. Officials are actively seeking clarity on the factors contributing to these increases, particularly regarding the flow measurement methodology used by the district, which has raised concerns about its accuracy and fairness.

In addition to the rate increase, council members emphasized the importance of ongoing communication with the MMSD to address these issues. They plan to engage with representatives from the Dane County Cities and Villages Association to advocate for more transparency and accountability in the district's pricing structure.

The proposed rate increase is seen as a necessary step to ensure the financial health of Monona's sewer utility while also prompting a broader discussion about the sustainability of rising costs in the region. As the council moves forward, residents can expect further updates on both the rate adjustment and efforts to engage with the MMSD on these pressing financial matters.