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Council approves sewer rate ordinance after updated rate study
Summary
After hearing that bond principal fell and interest costs dropped following a $1.5 million cash contribution, the council approved on second reading an ordinance updating monthly sewer charges and a system development charge; the recommended rate increase was revised from 42% to 38.77%.
The Common Council voted to approve on second reading General Ordinance No. 6, 2026, which adjusts the city’s schedule of monthly sewer charges and enacts a system development charge for new customers.
Tyler Caulfield, presenting the sewer rate study updates, said bids and a $1.5 million cash contribution reduced the bond principal by about $1.8 million and lowered total interest costs by roughly $2.5 million. "The rate adjustment was 42%. We're now showing a 38.77% increase," he said, adding that the change equates to about a $1.69 reduction on a 4,000-gallon monthly bill and a $2.11 reduction on a 5,000-gallon monthly bill compared with the prior estimate.
Caulfield also said the team trimmed a year from the bond amortization schedule and showed a phased approach that spreads increases with first- and second-phase dollar impacts reduced compared with the earlier plan. He noted that the system development charges will remain at the full charge previously discussed.
After public comment and discussion, council members moved and seconded the ordinance; roll call recorded all present voting in favor. The ordinance advances the new rates and the full system development charge as presented in the updated rate study.
