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Ordinance Establishing Minimum Sanitary Sewer Charge for FY27 Copyrighted May 18, 2026 City of Dubuque ACTION ITEMS # 5. City Council ITEM TITLE: Ordinance Establishing Minimum Sanitary Sewer Charge for FY27 SUMMARY: City Manager recommending City Council approval of the ordinance amending Section 13-2C-3(C) of the Code of Ordinances to adjust the minimum sanitary sewer charges by 9% in support of the adopted Fiscal Year 2027 Budget. ORDINANCE Amending City of Dubuque Code of Ordinances Title 13 Public Utilities, Chapter 2 Sewers and Sewage Disposal, Article C Rates, Section 13-2c-3(C)(7) Service Charge SUGGUESTED Receive and File; Motion B; Motion A DISPOSITION: ATTACHMENTS: 1. MVM Memo Minimum Sanitary Sewer Rate Changes for Fiscal Year 2027 2. Staff Memo - Minimum Sanitary Sewer Rates FY2027, 5-2026 3. Sanitary Sewer Rates Ordinance Amendment_05-13-2026 4. Staff Memo - Sanitary Sewer Rates FY2027, 4-2026 Page 853 of 890 Dubuque THE CITY OF � uhA�eMa cin DuB E ; . � , I � � I. Maste iece on the Mississi t 2oo�•zoiz•zois �P Pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Minimum Sanitary Sewer Rate Changes for Fiscal Year 2027 DATE: May 13, 2026 Water & Resource Recovery Center Director Deron Muehring is recommending City Council approval of the ordinance amending Section 13-2C-3(C) of the Code of Ordinances to adjust the minimum sanitary sewer charges by 9% in support of the adopted Fiscal Year 2027 Budget. Following adoption of the ordinance establishing the sanitary sewer rates per 100 cubic feet and rate per each gallon, staff identified that the minimum sanitary sewer charges were not adjusted as part of the ordinance amendment. The minimum sanitary sewer charges should also reflect the same 9% increase adopted for the FY2027 sanitary sewer rates to fully support the adopted FY2027 budget. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Deron Muehring, Water & Resource Recovery Center Director Jennifer Larson, Chief Financial Officer Laura BendorF, Budget Manager Page 854 of 890 Dubuque THE CITY OF � All-Ameriea City Du B E ;�� � , � � � �� Maste iece on the Mississi i Z°°'`Z°12-Z°13 YP Pp zoi�*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Deron Muehring, Water & Resource Recovery Center Director SUBJECT: Minimum Sanitary Sewer Rate Changes for Fiscal Year 2027 DATE: May 12, 2026 INTRODUCTION: The purpose of this memo is to recommend modification of Section 13-2C-3(C) of the Code of Ordinances to adjust the minimum sanitary sewer charges for Fiscal Year 2027. BACKGROUND: The proposed FY27 minimum 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. On April 28, 2026, the City Council adopted the Fiscal Year 2027 budget. Also on April 28, 2026, the City Council adopted an ordinance establishing the schedule of sanitary sewer rates per 100 cubic feet and rate per each gallon in support of the adopted FY2027 budget. The staff inemo associated with the previously adopted ordinance is attached for reference. As outlined therein, 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% Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 855 of 890 DISCUSSION Following adoption of the ordinance establishing the sanitary sewer rates per 100 cubic feet and rate per each gallon, staff identified that the minimum sanitary sewer charges were not adjusted as part of the ordinance amendment. The minimum sanitary sewer charges should also reflect the same 9% increase adopted for the FY2027 sanitary sewer rates to fully support the adopted FY2027 budget. The proposed ordinance amendment will adjust the minimum sanitary sewer charges by 9%, consistent with the sanitary sewer rate increases previously adopted by the City Council for FY2027. A marked-up version of the proposed ordinance amendment is attached to clearly identify the changes proposed to the minimum sanitary sewer charges. RECOMMENDATION: I recommend amending Section 13-2C-3(C) of the Code of Ordinances to increase the minimum sanitary sewer charges by 9% in support of the adopted Fiscal Year 2027 budget. ACTION REQUESTED I respectfully request passage of the attached ordinance amending Section 13-2C-3(C) of the Code of Ordinances to adjust the minimum sanitary sewer charges for Fiscal Year 2027. Attach. Cc: Crenna Brumwell, City Attorney Jennifer Larson, Chief Financial Officer Adrienne Breitfelder, City Clerk Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 856 of 890 Prepared by: Crenna M. Brumwell, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563 589-4381 ORDINANCE NO. 23-26 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 2 SEWERS AND SEWAGE DISPOSAL, ARTICLE C RATES, SECTION 13-2C-3(C)(7) SERVICE CHARGE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1 . Section 13-2C-3(C)(7) of the City of Dubuque Code of Ordinances is hereby amended to read 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: 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 $16.24 200 1,496 3/4 $40.58 500 3,740 1 or larger $64.94 800 5,984 Section 2. This Ordinance shall take effect on the 1st day of July 2026 Passed, approved, and adopted this 18th day of May 2026. Brad M. Cavanagh /Jay-r Attest: Trish L. Gleason, Assistant City Clerk EFFECT OF AMENDMENT Meter Size Minimum Charge Allowance (Cubic Allowance (Inches) Feet) (Gallons) 1 5/8 $16.2/111.90 200 1,496 1 3/4 $40.5837.23 500 3,740 1 or larger $64.9459.58 800 5,984 Dubuque THE CITY OF � All-Ameriea City Du B E ;�� � , � � � �� Maste iece on the Mississi i Z°°'�Z°12-Z°13 YP Pp zoi�*Zoi9 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 Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 859 of 890 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 Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 860 of 890 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. Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 861 of 890 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 Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 862 of 890 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: 05/22/2026 and for which the charge is 20.15 Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 22nd day of May, 2026 Notary Pu n and for Dubuque County, Iowa. p,{n s JANET K. PAPE z `;-' Commission Number 199659 My Commission Expires 12/11/2028 pw Ad text : ORDINANCE NO. 23-26 OFFICIAL NOTICE AMENDING CITY OF DUBUQUE CODE OF ORDINANCES TITLE 13 PUBLIC UTILITIES, CHAPTER 2 SEWERS AND SEWAGE DISPOSAL, ARTICLE C RATES, SECTION 13-2C-3(C)(7) SERVICE CHARGE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Section 13-2C-3(C)(7) of the City of Dubuque Code of Ordinances is hereby amended to read 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: 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 , $16.24, 200, 1,496; 3/4, $40.58, 500, 3,740; 1 or larger, $64.94, 800, 5,984 Section 2. This Ordinance shall take effect on the 1st day of July 2026 Passed, approved, and adopted this 18th day of May 2026. /s/Brad M. Cavanagh, Mayor Attest: /s/Trish Gleason, Assistant City Clerk It 5/22