Reno Considers Sewer Fee Increase

The Reno City Council will consider a proposed increase to sewer user fees, with city staff recommending a $3 a month hike annually for three consecutive years, beginning July 1, 2026.

The proposal replaces an earlier plan that called for an 8% annual increase and reflects updated cost projections and revised funding allocations tied to the Advanced Purified Water Facility.

According to city staff, the adjustment is necessary to keep the sewer fund solvent through 2035 while supporting ongoing infrastructure needs at the Truckee Meadows Water Reclamation Facility and within the broader sewer collection system.

If approved, the council would direct staff to return with an ordinance to implement the new rates.

A key change in the updated recommendation involves how costs for the Advanced Purified Water Facility are divided. The new plan assigns 30% of costs to user fees and 70% to connection fees, shifting away from a previous 50/50 split. Officials say the revision is based on a “benefit of water out” principle, placing a larger share of the cost on new development that will rely more heavily on expanded system capacity.

The adjustment is to reduce the financial burden on existing ratepayers while still generating necessary revenue for operations, capital improvements, and regulatory compliance.

The recommendation comes as the city faces rising costs across the system. Construction expenses have increased by more than 40% in recent years, while essential wastewater treatment costs, including electricity, chemicals, and insurance, have risen approximately 54%. By comparison, sewer user fee adjustments tied to the consumer price index have increased about 21% over the same period.

The city’s long-term capital needs are also significant, with a 20-year, $964 million Capital Improvement Program. More than two-thirds of that funding is for rehabilitation or replacement of aging infrastructure at the Truckee Meadows Water Reclamation Facility.

Staff analysis indicates that without a rate increase, the sewer fund would fall short of solvency and fail to meet reserve requirements by fiscal year 2028.

In addition to the proposed fee increase, city staff is recommending updates to the Sewer Rebate Program. Changes would include adding eligibility for those receiving Supplemental Nutrition Assistance Program benefits, increasing the program’s annual budget from $50,000 to $200,000, and offering application periods twice a year in January and July instead of once annually.

Currently, the program is limited to Reno residents receiving assistance through programs such as the Nevada State Welfare Division Energy Assistance Program, Social Security Disability Income, Supplemental Security Income, or Veterans Administration disability benefits.

The updated financial model, developed by consultant DOWL, incorporates fiscal year 2025 budget data, long-term capital planning, and projected growth. City officials say the proposed rate increases would allow the sewer fund to remain solvent through fiscal year 2035 while maintaining required reserves equal to at least 60 days of operating expenses.