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Shorewood committee recommends sewer rate increase as MMSD pass-throughs rise

Shorewood Budget & Finance Committee (followed by JP&L Committee) · January 27, 2026

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Summary

Committee recommended the village board adopt a sewer rate increase after staff said MMSD connection charges rose and the package would add about $721,000 to the budget; staff estimated customers could see about a 22% sewer increase and combined water-and-sewer bills could rise roughly 24% if water increases also proceed.

Mister Hickey, a village staff member, told the Shorewood Budget & Finance Committee the village is recommending an ordinance to raise sewer charges to cover higher pass-through costs and capital needs. The committee voted to recommend the change to the village board.

The presenter said the village’s sewer rate is composed of a fixed facilities charge (which includes MMSD connection fees) and a volume charge based on usage. He reported the MMSD connection charge increased from $9.69 in 2024 to $15.03 on the most recent billing and said the village also incurs roughly $70,000 a year in customer-billing administrative costs. He told the committee bond covenants require a 125% coverage ratio for debt service calculations.

Mister Hickey gave multiple figures while summarizing the proposal: he stated a per-unit figure of $4.26 per 1,000 gallons, said the package would add about $721,000 to the annual budget, and estimated a 22% sewer increase for customers. He also said that, combined with a potential 26% water increase (which requires Public Service Commission approval), the net customer impact could be about 24% overall.

Trustees pressed staff on whether MMSD charges are formulaic and how frequently they change; staff said the connection charge is set on an annual basis and offered to research longer historical trends for the committee. Staff also confirmed the village has reserves to bridge timing gaps while rate and PSC processes proceed.

After discussion the committee approved a motion to recommend the updated sewer rates to the village board by voice vote with no opposition.

The committee’s recommendation moves the proposal to the full village board, which will consider the ordinance at a subsequent meeting. Staff said they will follow up with historical MMSD charge data and additional customer-impact information for residents and the board.