Utility commission adopts refined sewer rates, average residential increase ~3.1%

The Cottage Grove Utility Commission voted Dec. 10 to adopt a refined sewer-rate structure developed by consulting firm Eller's, replacing a 4% flat increase that had been included in the 2026 budget. John, a consultant from Eller's, told the commission the recommended schedule is based on customer class and meter size and is intended to allocate costs more equitably.

"For the average residential customer, the recommended rates equate to just over a 3% increase for 2026 — about $1.61 per month," John said. He added that commercial customers are projected to see higher changes on average (about 4.5% for commercial classes).

Staff explained the study refined the earlier budget assumption by evaluating costs by class and meter size rather than applying a uniform percentage to all customers. The study updates an analysis that the commission last completed at full scope more than a decade earlier.

Chair requested a formal motion to adopt the study recommendations; the chair moved to approve the new rate schedule and a commissioner seconded. The motion passed; the transcript records the vote as "all those in favor say aye," with no opposition or abstentions announced. The new rates are to take effect Jan. 1, 2026.

The commission and staff did not record a numeric vote tally in the meeting transcript. Staff said they are available to answer technical questions about the calculations and recommended additional review of class-level impacts as needed.

Next steps: staff will implement the new rate schedule and incorporate the adopted figures into customer billing for the Jan. 2026 effective date. Any further adjustments or appeals would return to the commission for consideration.