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Council adopts 2026 stormwater and wastewater utility rate increases
Summary
Following analysis by Trilogy Inc., the council adopted a 2026 stormwater rate increase of $12 per ERU and a 3% wastewater rate increase, both effective Jan. 1, 2026, to build reserves for infrastructure repairs and permit compliance.
Director Navan presented staff recommendations and the Trilogy Inc. financial analysis for the city’s stormwater and wastewater utilities at the Oct. 20 meeting.
Stormwater: Navan said Trilogy’s analysis found the stormwater utility in an acceptable position but vulnerable to emergency repairs such as a major storm sewer project on Milwaukee Avenue. The council adopted a resolution to set the 2026 stormwater utility rate at $90.60 per ERU per year, which staff described as an additional roughly $12 ERU increase effective Jan. 1, 2026. Navan and council members discussed that continued, moderate rate increases are intended to create a sustainable fund for capital repairs and to meet state‑mandated reductions tied to the city’s MS4 permit and total maximum daily load (TMDL) requirements.
Wastewater: Navan said a 2020 rate study and subsequent annual increases left the wastewater utility in good financial shape but projected reserve drawdowns due to capital spending. Staff recommended and the council adopted a 3% wastewater rate increase for 2026, effective Jan. 1, 2026, and noted that the increase had been included in the draft 2026 budget presented earlier in October.
Motion and outcome: Council members moved and seconded the resolutions for both utilities. Each resolution was approved by voice vote; no council member recorded opposition.
Ending: Staff said the increases will be incorporated into the 2026 budget and used to fund capital projects and ensure utilities meet legal and operational requirements.
