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Council reviews 2026 utility‑rate proposals; water and stormwater hold steady, wastewater up 6% and solid‑waste plan introduces new cart options
Summary
Staff proposed holding Bloomington water and stormwater rates flat in 2026, a 6% wastewater rate increase, and a restructuring of solid‑waste (garbage) rates that adds an every‑other‑week small‑cart option and strengthens price signals to downsize carts.
City utility staff presented the proposed 2026 utility rates and a solid‑waste rate restructuring during the Oct. 20 budget discussion.
Water: Utility staff proposed no change to water rates for 2026. Scott Anderson, utilities superintendent, said Bloomington’s water system compares favorably to peers, noting average main‑break rates below national averages and that roughly 25 percent of water spending is for purchased water, another 25 percent for supply/treatment/lab services, and a similar share for distribution and metering. Staff recommended holding rates flat for 2026 because the long‑term model and the capital balance can absorb near‑term capital needs.
Wastewater: Staff proposed a 6 percent wastewater rate increase for 2026. The council heard that nearly 70 percent of the wastewater budget reflects Metropolitan Council Environmental Services (MCES) treatment charges, which are rising 5.8 percent in 2026; city staff said the rate increase responds mainly to higher MCES charges and to planned local capacity projects and capital needs.
Stormwater: Staff proposed no stormwater rate increase for 2026. The stormwater utility manager, Brian Griedel, said the fund has a healthy reserve to support projected capital needs; staff highlighted adaptive control studies, enhanced street sweeping to remove phosphorus, and other evolving stormwater practices.
Solid waste (garbage, recycling, organics): Staff proposed a restructuring of garbage rates to strengthen incentives to reduce waste and to introduce a new every‑other‑week pickup option for the smallest cart. Laura Horner, solid‑waste program coordinator, said the draft 2026 rates would: (1) lower the cost for households that keep or choose a small garbage cart (about a 6 percent decrease for the small cart compared with 2025), (2) offer an every‑other‑week small‑cart option that would be roughly 30 percent less than the current small‑cart rate, and (3) charge households that retain the large cart roughly 38 percent more than they paid in 2025. Horner said early outreach is under way and that staff will publish a citywide mailer if the council adopts the rates next month. Residents who request new carts would be billed for the new cart size on the next utility bill after they request it; cart deliveries are scheduled in two waves in March and April 2026 depending on request timing.
Staff also noted the city’s new hauler contract in July 2026 will move disposal billing to the city (to improve transparency) and preserve recycling revenue sharing agreements with haulers; organics participation is at about 32 percent and staff expect participation to grow under the new pricing.
Public hearing and next steps: Staff said proposed utility rates will be published Nov. 6 and the formal public hearing on rates is scheduled for the Nov. 17 council meeting. Solid‑waste rate decisions are expected in November so the city can begin the cart‑change rollout early next year.
