Establishing Sanitary Sewer Utility Rates for Fiscal Year 2027 Copyrighted
April 28, 2026
City of Dubuque ACTION # 2.
City Council
ITEM TITLE: Establishing Sanitary Sewer Utility Rates for Fiscal Year 2027
SUMMARY: City Manager recommending City Council adopt the
ordinance establishing sewer rates for Fiscal Year 2027
ORDINANCE 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 2027
SUGGUESTED Receive and File; Motion B; Motion A
DISPOSITION:
ATTACHMENTS:
1. Staff Memo - Sanitary Sewer Rates FY2027
2. Ordinance 13-2C-3, Rates Established, FY27
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Dubuque
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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 2027
DATE: April 23, 2026
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 FY27 sanitary sewer rate adjustment is necessary to fund the continued
operation, maintenance, and long-term improvement of Dubuque's wastewater collection
and treatment system. This includes the daily operation of the Water & Resource
Recovery Center (WRRC), where wastewater from homes, businesses, and industries is
treated before being safely returned to the environment, as well as the operation and
maintenance of the City's 22 sanitary sewer lift stations and more than 300+ miles of
sanitary sewer mains. These fees support essential services such as treatment, pumping,
cleaning, televising, repairs, regulatory compliance, laboratory testing, odor mitigation,
and emergency response.
The proposed FY27 rate adjustment supports continued reinvestment in aging
infrastructure and system reliability. Planned investments include improvements to
treatment processes, replacement of obsolete controls and equipment, lift station
reliability upgrades, odor reduction measures, and facility planning efforts that will guide
future capital needs. These investments are necessary to maintain dependable service,
reduce the risk of failures, comply with environmental requirements, and position the utility
to meet future community needs.
The proposed adjustment also reflects the increasing cost of providing wastewater
service. Over the past decade, many of the core inputs required to operate wastewater
utilities have risen significantly faster than general inflation. Costs for electricity, natural
gas, chemicals, equipment, and construction have all increased materially, placing
upward pressure on the cost to maintain current service levels. At the WRRC specifically,
electricity costs have increased by more than 120 percent over the past ten years even
though the WRRC has reduced energy use per million gallons treated by approximately
20 percent over the past three fiscal years through improved operations and process
management. These are not discretionary costs—they are the essential inputs required
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to pump wastewater, operate treatment processes, disinfect flows, manage solids, and
maintain system reliability.
The proposed 9% increase for FY27 will result in a $2.87 increase in the monthly sanitary
sewer fee for the average household in Dubuque, based on typical usage of 3,200 gallons
of water per month as outlined in Table 1 below. 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 2,000 gallons per month, the current fee would be
$19.92 per month. This would increase by $1.79 to $21.71 per month as proposed in
FY2026.
Table 1. Monthly fee comparison for a household that uses 3,200 gallons of water per month.
FY26 FY27 $ %
� (Current) (Proposed) Increase Increase
� �
Monthly Cost $31.86 $34.73 $2.87 9%
To ensure rates remain aligned with peer communities across lowa, 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 the monthly sanitary sewer fee
for the average household is shown in the table below.
Table 2. Comparison of the sanitary sewer fee for a household that uses 3,200 gallons of water per month.
Rank City Average Monthly
Sanita Sewer Fee*
1 Anken $40.97
2 Des Moines $38.32
3 Davenport $38.19
4 Cedar Ra ids $35.91
5 Dubuque $34.73
6 Sioux Cit $32.87
7 Ames $30.34
8 Waterloo $28.01
9 West Des Moines $25.25
10 lowa Cit $23.86
11 Council Bluffs $20.17
Average without $31.39
Dubuque
*Based on 5/8 Meter & 3,200 Gal
The average fee in Dubuque is 14.6% lower than the highest fee. And the average of the
other cities is 9.6% lower than the fee in Dubuque.
A comparison of average annual rate increases from FY20 to FY27, Dubuque's proposed
9% increase will result in an average annual rate increase of 6.4% 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 5.2%, the increase reflects the
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scope and scale of the planned infrastructure improvements, some of which are already
under construction.
Table 3. Comparison of average annual rate increase from the largest cities in lowa that own and operate a
wastewater facility.
Rank City Average Annual
Increase
1 Sioux Cit 8.8%
2 Council Bluffs* 7.5%
3 Cedar Rapids 6.5%
4 Dubu ue 6.4%
5 Waterloo 5.8%
6 Ames 4.0%
7 Daven ort 2.1%
8 lowa Cit 1.7%
Average without 5 2%
Dubuque
Additionally, the composition of sewer revenue by user class can vary significantly from
city to city. In Dubuque, residential users account for approximately 52% of sanitary sewer
revenue, while industrial users contribute about 25%. 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 4. Breakdown of sanitary sewer fee revenue by customer classification for FY2025 through March 25,2025.
Customer Percent Revenue
Classification Contribution
Residential 52%
Industrial 25%
Commercial 22%
Other 1%
Every dollar generated through sanitary sewer fees is reinvested directly into wastewater
collection and treatment systems. The proposed FY27 adjustment will help ensure the
City can continue providing safe, reliable, and environmentally responsible wastewater
service while responsibly addressing aging infrastructure, rising operating costs, and
future system demands.
RECOMMENDATION:
I recommend amending the City Code of Ordinances to increase the sanitary sewer fees
by 9% in support of the proposed Fiscal Year 2027 budget.
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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 2027 budget.
Attach.
Cc: Crenna Brumwell, City Attorney
Jennifer Larson, Chief Financial Officer
Adrienne Breitfelder, City Clerk
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ORDINANCE NO.17-26
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 2027
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
Rate per each gallon
C. Service Charge:
$8.11
$0.0108
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)
5/8
3/4
Minimum Charge Allowance Allowance
(Cubic Feet) (Gallons)
$14.90
$37.23
1 or larger $59.58
200
500
800
1,496
3,740
5,984
Section 2. This Ordinance shall take effect on the 1st day of July, 2026.
Passed, approved, and adopted this 28th day of April 2026.
Brad M. Cava? ayor
Attest:
Trish L. Gleason, ssistant City Clerk