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City proposes modest utility-rate increases to fund wastewater obligations, stormwater and urban forest plan
Summary
Staff proposed July 1, 2025 utility-rate adjustments that would raise a typical monthly bill by about $3.87 (1.84%) to fund Marion’s share of future wastewater treatment facility projects, sustain stormwater programs and support a phased urban-forest plan; council review and public notices planned.
City staff presented the first step in the 2026 utility-rate process at the April 15 work session, proposing targeted rate increases to support future wastewater investments, stormwater maintenance and an urban-forest plan while holding solid-waste rates steady pending additional automated-collection data.
Staff said the proposed changes — effective July 1, 2025 if adopted later this year — would add a 15¢ flat increase for sanitary-sewer capital and 15¢ for the sewer service charge (operating), add 15¢ for stormwater service and 10¢ on the ERU, and add $1 to support the urban-forest program. Staff recommended no adjustment to the solid-waste utility at this time because the automated collection system has only produced two billing cycles and more data are needed to determine long-term costs and loan-covenant impacts.
On a typical household using 1,200 cubic feet of water, staff said the combined changes would increase the monthly utility bill by about $3.87, or 1.84%. Staff said the sanitary‑sewer increases are intended to build capacity for Marion’s share of large regional wastewater projects — including a projected solids-handling project (estimated historically at $250 million system total) and a future main‑lift project — and to avoid a single large rate shock by incrementally increasing rates.
Council members asked about the confidence of regional cost projections and how the city will handle cost variations; staff said they will update models annually, coordinate with Cedar Rapids and Hiawatha and work with financial advisors (DA Davidson) to refine assumptions and financing scenarios. Staff outlined the public schedule: materials posted April 26 at the City Showcase and in the Marion Messenger, a council check-in on May 20 and a resolution to amend the schedule of fees on June 19.
No vote was held; council received the proposed schedule and asked staff to continue refining the models and provide updated projections to minimize rate shock for residents.
