Establishing Sanitary Sewer Utility Rates for Fiscal Year 2026THE CITY OF
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TO: Michael C. Van Milligen, City Manager
FROM: Deron Muehring, Water & Resource Recovery Center Director
SUBJECT: Sanitary Sewer Rate Changes for Fiscal Year 2026
DATE: April 24, 2025
INTRODUCTION:
The purpose of this memo is to recommend modification of Sections 13-2C-3(B) and 13-
2C-3(C)(7) of the Code of Ordinances, thereby adjusting the sanitary sewer rates as
proposed with the Fiscal Year 2026 budget.
DISCUSSION:
The proposed FY26 sanitary sewer rate increase will fund essential operations,
maintenance, and long-term capital improvements that ensure the reliability, safety, and
environmental compliance of Dubuque's wastewater system. This includes continued
operation of the Water & Resource Recovery Center (WRRC), where wastewater from
homes, businesses, and industries is treated before being safely returned to the
environment. It also supports the upkeep of all 21 lift stations across the city and powers
key treatment processes like digestion, disinfection, and odor control. The fee will also
fund Public Works activities to maintain over 325 miles of sewer mains —cleaning,
televising, and repairing the system to prevent backups and overflows. Importantly, the
rate increase enables the City to move forward with over $131 million in planned capital
improvements between 2025 and 2029. These projects include an $83.8 million
investment in the Catfish Creek sewershed, provide capacity for private investments on
Kerper Bpoulevard and Schmitt Island. They provide for replacing aging infrastructure.
They will allow for responsible growth to continue. Every dollar from the sewer fee is
reinvested directly into this system —supporting the health, safety, and economic future
of Dubuque.
The proposed 9% increase for FY26 will result in a $4.91 increase in the monthly sanitary
sewer fee for the average household in Dubuque, based on typical usage of 6,000 gallons
of water per month. As a user fee, it is based on the amount of water used and
corresponding wastewater generated. For lower consumption households, those that
might only use 3,000 gallons per month, the current fee would be $27.40 per month. This
would increase by $2.47 to $29.87 per month as proposed in FY2026 as outlined in Table
1 below.
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Table 1. Monthly fee comparison for a household that uses 3,000 gallons of water per month.
FY25 FY26 $ %
(Current) (Proposed) Increase Increase
Monthly Cost $27.40 $29.87 $2.47 9%
To ensure rates remain aligned with peer communities across Iowa, the proposed rates
are routinely benchmarked against the largest cities in the state that own and operate
their own wastewater treatment facilities. A comparison of average annual rate increases
from FY20 to FY26, Dubuque's proposed 9% increase will result in an average annual
rate increase of 6.0% over the period —ranking it fourth highest (or fifth lowest) among
the peer cities analyzed as reflected in Table 2 below. While slightly above the group
average of 5.5%, the increase reflects the scope and scale of the planned infrastructure
improvements, some of which are already under construction.
Table 2. Comparison of average annual rate increase from the largest cities in Iowa that own and operate a
wastewater facility.
Rank
City
Average Annual
Increase
1
Sioux City
10.077
2
Council Bluffs*
8.8%
3
Cedar Rapids
6.1 %
4
Dubuque
6.0%
5
Waterloo
5.9%
6
Ames
3.8%
7
Davenport
2.4%
8
Iowa City
1.2%
Average without
Dubuque
5.5%
Additionally, the composition of sewer revenue by user class can vary significantly from
city to city. In Dubuque, residential users account for approximately 41 % of sanitary sewer
revenue, while industrial users contribute about 36%. In some peer communities,
industrial users may represent a larger share of the overall revenue, which can help offset
costs and reduce the financial burden on residential ratepayers. The breakdown is shown
in Table 3 below.
Table 3. Breakdown of sanitary sewer fee revenue by customer classification for FY2025 through March 25, 2025.
Customer
Classification
Percent Revenue
Contribution
Residential
40.9%
Industrial
36.0%
Commercial
21.4%
Other
1.6%
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RECOMMENDATION:
I recommend amending the City Code of Ordinances to increase the sanitary sewer fees
by 9% in support of the proposed Fiscal Year 2026 budget.
ACTION REQUESTED
I respectfully request passing the attached ordinance, amending Sections 13-2C-3(B) and
13-2C-3(C)(7) of the Code of Ordinances to increase the sanitary sewer fees by 9% in
support of the proposed with the Fiscal Year 2026 budget.
Attach.
Cc: Crenna Brumwell, City Attorney
Jennifer Larson, Chief Financial Officer
Adrienne Breitfelder, City Clerk
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Prepared by Deron Muehring WR&RC Director, 795 Julien Dubuque Dr., Dubuque IA 52003 (563)-589-4176
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100
ORDINANCE NO. 12-25
CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES,
CHAPTER 2 SEWERS AND SEWAGE DISPOSAL, ARTICLE C RATES, SECTION 13-
2C-3 RATES ESTABLISHED FOR FISCAL YEAR 2026
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. Section 13-2C-3 of the City of Dubuque Code of Ordinances reads as
follows:
13-2C-3: RATES ESTABLISHED:
Contributors whose property lies within the corporate limits of the city, except as otherwise
provided in this article, shall pay to the city at the same time payment for water services is
made, a sewer service charge computed on water consumption on the following rates:
B. Schedule Of Rates:
Rate per each 100 cubic feet $7.44
Rate per each gallon 0.00995
C. Service Charge:
7. Where the quantity of water consumed is such that the minimum of service is
charged, the minimum sewer service charge, according to the size of the meter,
shall be as follows:
Meter Size
Minimum Charge
Allowance Allowance
(Inches)
(Cubic Feet) (Gallons)
5/8
1[$14.90
200 1,496
i
3/4
$37.23
500 3,740
1 or larger
i $59.58
800 5,984
Section 2. This Ordinance shall take effect on the 1 st day of July, 2025.
Passed, approved, and adopted this 28th day of April 2025.
Brad M. Cavana� ayor
Attest:
Adrienne N. Breitfelde ,'City Clerk
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
05/07/2025
and for which the charge is 24.40
(
Subscribed to before e a Notar , y lic in and for
Dubuque County, Iowa,
this 7th day of May, 2025
JANET K. PAPE
Commission Number 199659
My Commission Expires
12/11/2025
Ad text :
CITY OF DUBUQUE
OFFICIAL PUBLICATION
ORDINANCE NO. 12-25
CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC
UTILITIES, CHAPTER 2 SEWERS AND SEWAGE DISPOSAL, ARTICLE C
RATES, SECTION 13- 2C-3 RATES ESTABLISHED FOR FISCAL YEAR 2026
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. Section 13-2C-3 of the City of Dubuque Code of
Ordinances reads as follows:
13-2C-3: RATES ESTABLISHED:
Contributors whose property lies within the corporate limits
of the city, except as otherwise provided in this article,
shall pay to the city at the same time payment for water
services is made, a sewer service charge computed on water
consumption on the following rates:
B. "Schedule Of Rates:
Rate per each 100 cubic feet; $7.44
Rate per each gallon; 0.00995
C. "Service Charge:
7. Where the quantity of water consumed is such that the
minimum of service is charged, the minimum sewer service
charge, according to the size of the meter, shall be as
follows:
Meter Size (Inches); Minimum Charge; Allowance (Cubic Feet);
Allowance (Gallons)
5/8; $14.90; 200; 1,496
3/4; $37.23; 500; 3,740
1 or larger; $59.58; 800; 5,984
Section 2. This Ordinance shall take effect on the 1st day
of July, 2025.
Passed, approved, and adopted this 28th day of April 2025.
/s/Brad M. Cavanagh, Mayor
Attest: /s/Adrienne N. Breitfelder, City Clerk
Published officially in the Telegraph Herald newspaper on
the 7th day of May, 2025.
/s/Adrienne N. Breitfelder, City Clerk
It 5/7