Dubuque proposes 2027 water and sewer rate hikes to fund PFAS well and WRRC upgrades

Dubuque proposes 2027 water and sewer rate hikes to fund PFAS well and WRRC upgradesThe Iowa municipality is weighing a 9% increase in both sanitary sewer and stormwater rates, alongside a 3% water rate bump, to support a capital improvement plan targeting PFAS remediation, odor control, and flood mitigation.

The proposed FY2027 budget includes a 9% increase for sanitary sewer and stormwater rates, and a 3% increase for water rates.

Capital plans feature a new deep well to address PFAS issues, the Catfish Creek sanitary sewer improvements, and stormwater upgrades at 7th and Locust Streets.

The Water and Resource Recovery Center (WRRC) is undergoing a $7.2 million electrical control replacement and adding an $8.1 million high-strength waste receiver system.

The city manager cited six presidential disaster declarations in 11 years as justification for the city's relatively high stormwater fees compared to peer cities in Iowa.

The City of Dubuque, Iowa, is advancing a fiscal year 2027 budget that relies on targeted utility rate increases to finance a slate of major water, wastewater, and stormwater capital projects, according to a presentation by City Manager Mike Van Milligen during the April 6 city council meeting. Under the proposed budget, the average residential sanitary sewer rate would increase by 9% to $34.73 per month, while the average stormwater rate would also rise by 9% to $12.02 per month. The city is proposing a smaller 3% increase for drinking water, bringing the average monthly water bill to $23.17. The rate adjustments are intended to support a robust capital improvement plan. High-priority water and sewer projects outlined in the presentation include a new deep well for the water department specifically designed to address PFAS issues, as well as the Catfish Creek sanitary sewer improvements. The city is also planning major stormwater upgrades at 7th Street and Locust Street. Significant investments are also directed toward the city's Water and Resource Recovery Center (WRRC) to improve reliability and reduce odors. The city is currently undertaking a $7.2 million replacement of all electrical controls at the facility, with a $2.46 million first phase already underway. Additional WRRC investments include $1.4 million for resiliency upgrades, $135,000 for monitoring upgrades, and the implementation of ferric chloride dosing to reduce sulfur content. Concurrently, the WRRC is constructing an $8.1 million high-strength waste receiver system. Van Milligen noted that this specific project is being funded directly by high-strength waste customers and a federal grant, rather than the general rate base. During the presentation, the city manager contextualized Dubuque's rates against 11 comparable Iowa cities with populations over 50,000. While Dubuque boasts the second-lowest water rate among peer cities utilizing lime water softening, it holds the second-highest stormwater rate. Van Milligen defended the stormwater pricing, pointing to the city's location bordering the Mississippi River and its history of severe flooding, which has resulted in six presidential disaster declarations over the past 11 years. To mitigate the impact of the rate hikes on vulnerable populations, the city will continue to offer a 50% discount on base city utility rates for low-income customers. The budget is scheduled for a final adoption hearing on April 28 following a series of departmental public input sessions.