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Consideration of approval of an adjusted 2026 Sanitary Sewer local rate
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Submitted by:
John Ruggini
Department:
Finance Director
A. Issue
The 2026 Budget assumed a 3.0% increase in the local sanitary rate. We know now that the Milwaukee Metropolitan Sewerage District’s rate will increase 4.7%. Given this, we are recommending reducing the City’s portion of the rate from to a 0% increase.
B. Background/Options
The Wauwatosa sanitary bill includes a local rate as well as a pass-through rate from the Milwaukee Metropolitan Sewerage District (MMSD). The 2026 Wauwatosa Budget was adopted, as normal, prior to the Milwaukee Metropolitan Sewerage District publishing it’s 2026 sanitary rate. In that budget, we assumed a 3.0% local increase as well as a 3.0% MMSD increase resulting in a 2.9% bill increase. However, MMSD’s rates will increase 4.7%. If the City maintains a 3.0% local increase, the total bill will increase an estimated 3.8%.
Given that many tax payers had larger than normal property tax increases and given that the Sanitary Reserve has ample reserves, I recommend the City forgo a sanitary rate increase. We are building cash reserves in anticipation of the multi-million East Tosa Sewer project; however, we feel it is important to provide this rate relief. This could result in higher future rate increases; however, we don’t yet have enough information on the East Tosa Sewer project costs to make that determination.
Storm sewer rates will still increase 5% as approved in the 2026 Budget and the City will still pursue a 3.0% water rate increase with the Public Service Commission later this year.
C. Strategic Plan (Area of Focus)
NA
D. Fiscal Impact
The City will collect approximately $212,000 less in rate revenue.
E. Recommendation
I recommend that there be no change made in 2026 to the local sanitary rates and the remain as shown below.
