Understanding Utilities Rate Changes 

What costs are covered by water and sewer utility fees?

Water and sewer utility fees charged by the City cover not only the costs of the water used by your household. These fees also pay for the costs of operating IGH water treatment facilities and systems, including staff time and training, and repair and maintenance expenses. IGH is home to 170 miles of water mains, 2,001 fire hydrants, and 10 million gallons of treated water in storage.

System Challenges:

Aging Water System

The IGH water treatment facility began operating in 1998. As the water system ages, the costs of maintaining it increase until, eventually, the system will reach the end of its lifespan and will need to be repaired or replaced. Preparing for the depreciation of long-term City assets like our water system requires careful planning and the setting aside of funds to maintain it. Maintaining a system is usually more effective than deferring maintenance until an emergency occurs and must be immediately fixed. This is more costly.

As part of the City’s long-term planning process, staff looks at whether we are saving enough to cover both current and future infrastructure maintenance costs. If utilities maintenance costs are under-funded, the City considers modest rate increases to make up the difference.

Increased Fees for Treatment of Wastewater

Another challenge that IGH continues to address is an increase in the rate that the City is charged by the Metropolitan Council for the treatment of IGH wastewater. For every thousand gallons of water used by residents of IGH, the City pays a fee. If the Metropolitan Council raises the rates it charges for water treatment, local municipalities must either absorb that additional expense or pass it on to the residents and business owners who use city water and sewer services by raising water and sewer utility rates. 

How did water and sewer rates change in 2026?

Water utility bills saw a 10% increase. Sanitary sewer bills received a 5% increase to the base rate and a 3% to the volume-related rate. The effective date for these increases on utility bills is the first billing period that contains only 2026 usage.

How do I benefit from this rate increase?

Maintaining the IGH water system saves greater expense down the road, and it helps ensure that the City continues to offer a safe water supply and reliable infrastructure to residents and businesses as IGH grows.

What if I need assistance paying my bill?

There are resources available to residents experiencing financial hardship and need assistance with their utilities bills. View Utility Bill Assistance page.

What if I have utility bill questions? 

Please contact City Hall at 651-450-2500 and staff will happily assist you. 

Increases to Utilities Rates & Fees

How much did water and sewer rates change from 2025 to 2026?

Water utility bills saw a 10% increase. Sanitary sewer bills received a 5% increase to the base rate and a 3% to the volume-related rate. The effective date for these increases on utility bills is the first billing period that contains only 2026 usage.

Water & Sewer

In order to plan for system renewal and cover the increasing costs of water and sewer treatment, the City makes periodic increases to IGH water and sewer utility rates.

Sample Quarterly Utility Bill: Single-Family Residential Utility Customer

The increase total is $16.19 -- a 6.98% increase.

Stormwater

A 25% increase to the stormwater utility fee for most IGH properties was approved in 2026. While this might sound steep, most urban properties will see an annual increase of somewhere between $12 and $26, or between $3 and $6.50 per quarter in additional fees. This will vary based on property type. 

What if I need assistance paying my bill?

There are resources available to residents experiencing financial hardship and need assistance with their utilities bills. View Utility Bill Assistance page.

What if I have more questions?

Should you have a question about your water, sanitary sewer, or stormwater utility bill, please contact City Hall at 651-450-2500.