Johnson County Wastewater proposes 5% rate increase in 2027, citing long-term capital needs

Johnson County Wastewater staff and their consultant presented a multi-year financial plan that recommends a 5% rate increase for 2027 to support operating needs and a capital program that includes the Nelson project and Tomahawk-related pump-station work.

Consultant Dave Nommen summarized the plan’s key metrics: a 5% increase in 2027 would translate to about a $2.73 monthly increase for a typical residential customer; projected long‑term increases of 5% per year maintain debt‑service coverage and operating reserves while the utility executes large capital phases. Nommen said the county’s bills remain competitive regionally and that an integrated planning approach lets the utility smooth investments and avoid rate shocks.

"When we were visiting the financial plan last year, we anticipated a 5% increase would be proposed in 2027 and we've confirmed that and propose it," Nommen said, explaining the drivers and the balance between operating and capital funds. Staff noted that approximately 20% of the next 10 years’ CIP is expected to be cash‑funded, with the remainder financed.

Commissioners asked about the timing of pump‑station projects and how recent favorable bid results or construction-market volatility affect the forecast; staff said realized contract savings are incorporated into the 2027 plan where appropriate, but planners remain cautious about long‑term uncertainty. Officials also discussed residential usage trends (declining per‑account volumetric use) and a modest assumption of ~1% account growth per year.

The presentation framed the 5% increase as a measured step to preserve key performance indicators — operating‑fund days and debt‑service coverage — while continuing large capital projects and preserving rate stability.