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Council adopts sewer rate ordinance to address $283,000 utility shortfall; city says most households face $3–$5 monthly increase
Summary
Council adopted an ordinance changing the sewer billing methodology to address a $283,000 shortfall and to preserve access to low‑interest state clean water funds; staff said most residential bills will rise $3–$5 monthly starting in 2026.
The City Council on Monday adopted an ordinance amending municipal code section 5‑2‑5 to change sewer service charges and spread costs across customer classes following a reported $283,000 shortfall in the sewer utility.
City staff explained the sewer utility is separate from the general fund and must maintain a revenue-to-debt service threshold in order to qualify for low‑interest state financing. City staff told the council the utility is currently at roughly 108% of the required debt coverage and would fall to about 104% after taking on planned debt; staff said they must maintain at least 110% to access the State of Wisconsin clean water loan funds.
City Manager Matt (full name not provided) described the new billing methodology and its effect on customers: “For most families in 2 Rivers, the monthly bill would increase $3 to $5 a month starting in 2026.” He said the proposal shifts some charges away from multifamily dwellings and onto high‑strength waste dischargers and larger meter accounts; it also introduces an equivalent‑meter sizing method where larger water meters are assigned more equivalent units.
Staff and council discussed impacts on manufacturers and restaurants that discharge high‑strength waste. The ordinance includes a separate class for large industrial customers that disproportionately affect biochemical oxygen demand (BOD) and other strength measures; council and staff said those customers will face larger adjustments. Finance staff warned that if the city cannot meet the 110% coverage requirement it may need to use cash or pursue higher‑cost general obligation borrowing to pay for projects.
Some council members expressed dissatisfaction with raising charges. Councilmember Adam Mohusky said he opposed large increases and said they would affect businesses: “I am definitely a 100% against the increase to businesses, some of which are gonna increase more than $900 a month.” Other council members urged that changes are required to comply with state loan program rules and to avoid higher long‑term costs.
On a roll call vote the council adopted the ordinance. Staff said the revised rate structure will take effect in 2026; departments will return with implementation details, billing notices and class definitions for affected commercial and industrial accounts.
