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Maple Grove staff recommend 5% sewer and water rate increases, $5.55 quarterly stormwater hike for 2026
Summary
City consultant Ehlers presented a utility rate study Oct. 20 recommending a 5% increase to sanitary sewer and water rates for 2026 and a $5.55-per-quarter stormwater fee increase; staff asked the City Council to consider adopting the recommendations and deferred structural water-rate changes until Jan. 1, 2027.
Kyle Sawyer, Ehlers’ director of fiscal consulting, presented a utility rate study to the Maple Grove City Council work session on Oct. 20 that recommended a 5% increase to sanitary sewer and water rates for 2026 and a $5.55-per-quarter increase to the stormwater fee.
The study, which the council had authorized in August of last year, examined fund reserves, long-term spending projections, and billing practices for the city’s sanitary sewer, stormwater and water funds. Sawyer told the council the sanitary sewer fund is in generally good financial health but that treatment charges from Metropolitan Council Environmental Services (MCES) remain the largest cost driver; staff recommended a 5% sewer-rate increase in 2026 to preserve reserves while keeping rates below peer-city averages depending on future MCES increases.
On stormwater, Sawyer said the study confirmed the need for additional revenue to build reserves and meet capital goals by 2035; staff recommended a $5.55-per-quarter stormwater fee increase for 2026 and noted that the recommended level would remain below comparable-city averages. For the water fund, the presentation outlined structural options — including a potential expansion of a water treatment plant, adjustments to rate tiers, and changes to the base-charge structure — and recommended a 5% increase for 2026. Sawyer and staff proposed delaying any structural changes to rate tiers and base charges until Jan. 1, 2027 to allow for further review and planning.
Public Works/Engineering Director Chris LaBounty provided operational context in response to council questions, discussing the status of joint-power agreements with neighboring communities and explaining how increased irrigation use could drive a need to expand water-treatment capacity. City staff asked the council to consider adoption of the recommended 2026 rate changes and to continue discussion on long-term water-system planning and billing-structure revisions; the minutes record no formal motion or vote on those recommendations at the work session.
The meeting record lists Mayor Steffenson and all five councilmembers as present and shows the work session was adjourned at 7:25 p.m. The minutes were submitted by City Administrator Heidi Nelson. The council may take formal action on rate changes at a future public meeting.
