Waterloo staff propose 5% sewer-rate increase as city exits EPA consent decree; multiple plant and lift-station projects outlined

Bridget Wood, the city finance director, proposed a 5% increase in sewer rates for fiscal 2026 and told the council the boost is intended to preserve Waterloo’s eligibility for State Revolving Fund (SRF) financing and cover upcoming wastewater projects.

"So for fiscal 26, we're looking at, a 5% increase for sewer rates," Wood said during the council meeting. She said the proposed increase would keep Waterloo "still at the lowest of the largest 10 communities," assuming those peers do not adopt rate changes.

The proposal follows a multi-year pattern of increases: council members noted last year’s increase was 8% and the year before was 5%. Wood said staff expect the city will likely need similar increases in coming years but cautioned the exact percentage could change as project plans firm up.

The rate discussion was paired with a multi-point update from wastewater staff on projects and regulatory status. Jesse Gearty, collections systems projects director, said Waterloo has been released from a federal consent decree and that future regulatory oversight now rests with the Iowa Department of Natural Resources.

"As of last, the fifteenth,…