Germantown approves 3% water and sewer rises to shore up utility finances
Germantown, Village of, Wisconsin · Meeting date: October 19, 2026 · Published: October 20, 2026
The Germantown Village Board has approved 3% increases in water and sewer charges, effective in the first quarter of 2027. The action follows continuing operating losses at both utilities, including only 30 days of cash on hand at the water utility.
Key points
- The board approved 3% increases to water and sewer rates through its October 19 consent agenda, with no opposition recorded.
- The water increase is expected to generate $104,898 annually; an average residential quarterly bill for 12,000 gallons would rise from $73.20 to $75.39.
- Water utility operating losses rose from $400,000 in 2024 to $870,000 in 2025, while the utility reported a negative 4.2% rate of return.
- The sewer utility reported a $770,000 operating loss in 2025; Milwaukee Metropolitan Sewerage District treatment charges account for 67.8% of its operating expenses.
- Average household impacts were stated as $8.76 a year for water and $12.06 a year for sewer.
Full report
Germantown’s Village Board has approved 3% increases in both water and sewer charges from the first quarter of 2027, opting for modest annual adjustments as the two utilities contend with operating deficits and capital needs.
The rate actions were adopted as part of the board’s October 19 consent agenda. For the water utility, the village plans to use Wisconsin’s simplified Public Service Commission rate-case process and was scheduled to file its application on October 20. The customer notice states that the revised rates are anticipated to take effect on January 1, 2027.
The water increase is projected to add $104,898 to annual revenues. For an average residential customer using 12,000 gallons a quarter, the bill would increase from $73.20 to $75.39. A large residential bill at 18,500 gallons would rise from $101.48 to $104.51 per quarter, while an industrial customer using 860,000 gallons would pay $3,743.97, up from $3,633.20.
Staff said the water utility remains in a weak financial position despite recent rate action. Its operating loss was $400,000 in 2024 and $870,000 in 2025, while its current rate of return was negative 4.2%. The utility has only 30 days of cash on hand, against staff guidance that cash should cover at least the village’s 90-day billing period. Staff also reported an operating ratio of 0.90, compared with a target of at least 1.0 to cover operations and depreciation.
The 3% water rise is estimated to cost the average household $8.76 annually. Staff said use of the simplified process was preferable to waiting for another conventional rate case, which was described as taking six to 10 months and carrying costs that would ultimately be recovered through rates.
The board also approved a 3% increase to both fixed and volumetric sanitary-sewer charges. The average household impact was put at $3.02 per quarter, or $12.06 annually.
Germantown’s sewer utility maintains 110 miles of sewer main and serves 5,943 customers. It recorded a $770,000 operating loss in 2025, following a $540,000 loss in 2024, and reported a negative 1.24% rate of return. The village contracts with Milwaukee Metropolitan Sewerage District for treatment, with that annual charge representing 67.8% of sewer operating expenses. Staff said the additional revenue would improve cash flow and build reserves ahead of significant future capital expenditure.
This summary was generated by AI based on the source document and may contain errors.
Source: Village Board, Germantown, Village of