Met Council sets 2025 wastewater rates

Date: Tuesday, July 30, 2024
Four boxes shown represent 79%25 municipal wastewater charges; 14%25 sewer availability charge; 5%25 industrial waste charges; and 2%25 other revenues.The Metropolitan Council has approved a 5.6% increase in the overall regional municipal wastewater charge for 2025. The 111 cities and townships served by the regional wastewater collection and treatment system pay the Met Council based on the volume of wastewater they send to our water resource recovery facilities.

On average, the retail rate for households in the Twin Cities metro area for wastewater services is about 35% lower than the average rate paid by households in regions that are similar in size and population, according to the most recent data by the National Association of Water Agencies.

“The Met Council’s wastewater collection and treatment system supports the economic vitality, public health, and water quality in our region,” said Charlie Zelle, Met Council Chair. “We’re proud of the value and caliber of our services, including our continued outstanding compliance with environmental standards.”


Wastewater operations funded entirely by user fees

View from third story of building interior shows variety of concrete and metal structures and pipes.The Met Council’s wastewater services are a utility supported by user fees only, and no revenue from these services goes to pay for other Met Council operations.

The Met Council’s Environmental Services division projects $376.9 million in revenue for 2025, with 79% of it coming from the municipal wastewater charge. Another 14% of revenue is from residences or businesses that pay a one-time fee – the sewer availability charge (SAC) – to connect to the regional wastewater system. Businesses also pay this fee if they change use in a way that increases their potential flow to the wastewater system. The fee for one SAC unit will remain the same at $2,485 for the 11th year running.

“Over the last several years the region has seen robust development, especially in the residential sector. This helps us keep our SAC reserve healthy, which in turn allows us to keep our SAC rates flat,” explained Matt Gsellmeier, finance manager in the Environmental Services division.
The remainder of the 2025 revenue comes from industrial waste charges, reserves, and interest.


Maintaining and improving facilities accounts for biggest expense

On the expense side, 41% of the budget goes to debt service – which includes the improvement and expansion of wastewater infrastructure, such as regional sewer pipes, lift stations, flow meters, and treatment facility upgrades. Salaries and benefits account for 25% of the budget. The remainder is spent on supplies and chemicals, utilities, consulting and contracting, and other services.


Rates based on flow; cities can lower flow by preventing infiltration of stormwater

While the overall municipal wastewater rate increase is 5.6%, the rate varies for each local government, depending on the amount of its wastewater flow compared to other municipalities. Allocations for 2025 are based on flow volumes from 2023. For example, a city that accounted for 1.5% of the overall wastewater volume in 2023 will pay 1.5% of the overall municipal wastewater charge in 2025.

Cities can reduce their share by repairing pipes that may allow excess inflow and infiltration of groundwater and stormwater into the sanitary sewer system and by promoting water conservation. Learn more about reducing inflow and infiltration of groundwater and stormwater.

The Met Council presented the rate proposals to local government customers by letter and at two customer forums in May and June. The forums were well attended with 63 people from 41 communities. Approving the rates now allows local governments to budget accurately for 2025 and advances the Met Council’s budget process.

Posted In: Wastewater & Water

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