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Cottage Grove council approves utility rate changes: water operations up 14%, wastewater 5%, stormwater 7%

5067747 · June 24, 2025
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Summary

The council adopted a comprehensive fee schedule that raises the operations portion of water rates 14%, wastewater rates 5% and stormwater 7%; staff said the average single‑family home will see about a $6.58 monthly increase.

The Cottage Grove City Council on Monday adopted an amendment to the city’s comprehensive fee schedule that raises utility rates for the coming fiscal year and adjusts the summer sewer billing period and new‑customer treatment.

Public Works Director Faye Stewart described the changes as targeted increases to the operations portions of utility bills rather than across‑the‑board hikes. "For the water fund... the operations portion of this, we need a 14% increase to rectify our imbalance of spending more for services than we were receiving," Stewart said. For an average household using 5,000 gallons per month, Stewart said the combined increase for water, wastewater and stormwater is about $6.58 per month.

Key elements adopted

- Water operations: 14% increase (applies to the operations portion of the water bill; the water improvement portion remains unchanged). - Wastewater operations: 5% increase; volumetric wastewater rate moves from $6.75 to $7.09 per 1,000 gallons. - Stormwater: 7% increase to the monthly storm drainage fee (from $4.94 to $5.29). - Summer sewer period: shift earlier so summer sewer rates apply mid‑April through mid‑October instead of mid‑May through mid‑October to better reflect irrigation patterns. - New‑customer default: council amended the staff proposal to set the temporary default sewer usage for new accounts at 5,000 gallons (staff had proposed 6,000); the council applied that 5,000 figure to both in‑city and outside‑city sewer‑only accounts.

Stewart said the split approach was intended to avoid raising reserve and capital portions of bills unnecessarily while addressing an operational shortfall that had been drawing on carry‑forward reserves. "If you multiplied your entire utility bill by 14% you would see probably a $17 increase per month," Stewart said, adding the actual household impact is smaller because the 14% applies only to part of the bill.

Council debate and vote

Councilors debated the pace and cumulative effect of multi‑year rate projections. Councilor Lammerman warned that repeated annual increases could be hard on low‑income households and businesses; she voted against the fee schedule amendment. Councilor Wilson and others said the city must balance operations, maintain infrastructure and expand the customer base to spread costs.

The motion to adopt Resolution 2171 amending the comprehensive fee schedule, including the change of the new‑account default from 6,000 to 5,000 gallons for sewer calculations, passed after a roll call: several councilors voted aye and Councilor Lammerman voted no.

What residents should know

- The city estimates the average single‑family household using 5,000 gallons will see about a $6.58 monthly increase. - The council said the increase is intended to stabilize operations and avoid deeper draws on reserves; the city also noted capacity exists in its water and wastewater treatment plants to serve growth. - New customers who do not yet have a winter consumption average will be assigned a 5,000‑gallon default for sewer calculations until a winter average can be established.

The fee schedule amendment is effective with the adopted fiscal year and will be reflected on utility bills once the Finance Department implements the change.