Significant Sewer Bill Increase Coming For GMU Customers

Glenwood Municipal Utilities sewer customers will soon see a noticeable increase to their monthly bill.

In addition to a 2.5% hike in base rates and usage rates (per 1,000 gallons) for water and sewer services, customers hooked up to GMU sewer lines will start paying a new monthly Capital Improvement Wastewater Treatment Facility fee (WWTF) of $22.50.

The new rates and WWTF will become effective on statements generated March 31, according to a letter sent to GMU customers last week.

In 2025, GMU announced plans to construct an estimated $45-$50 million facility to replace Glenwood’s 43-year-old wastewater treatment plant. The $22.50 fee is being added to monthly bills to provide some upfront funding for engineering and construction costs and lessen the financial burden on GMU customers down the road. At this point, GMU is still in the preliminary planning process for the facility that will be built near the existing wastewater treatment plant south of Glenwood near 220th and Kesterson Road.

GMU is pursuing funding from the U.S. Department of Agriculture (USDA), State Revolving Fund  - a mechanism set up by the state for cities and and public utilities to borrow against at low-interest loan rates - and other sources for the project.

GMU estimates that a low-interest loan of up to $50 million financed over up to 40 years will require an annual payment of approximately $2.6 million. The $22.50 WWTF is expected to raise an estimated $600,000 annually.

According to numbers provided to The Opinion-Tribune last fall, GMU currently has 1,850 residential and 320 commercial sewer users in the immediate Glenwood area, 65 in Pacific Junction and about two dozen scattered users in outlying areas.

GMU Superintendent Dave Malcom said the average water / sewage usage for all customers is about 4,000 gallons per month.

For a GMU customer hooked up to both water and sewer that is using 4,000 gallons a month, the 2.5% rate increase and WWTF will raise their monthly bill by 23%, from about $108 to $133.

Malcom said the GMU Board Of Directors gave consideration to setting the initial WWTF higher than $22.50 so that more funds would be available when the time comes to start construction, which would reduce borrowing and interest costs.

“It’s still expensive, don’t get me wrong, but we’re trying to keep it somewhat affordable to get this accomplished,” he said.

Malcom said water and sewer rates will be reviewed annually. According to the letter sent to GMU customers, “User rates will be gradually increased over the upcoming 3 to 4 years to prepare for and offset the cost of the project.”

Malcom stressed that the projected cost of up to $50 million is only an estimate at this point, hopefully on the high end.

“When we get a little farther along with our preliminary engineering study, we’re going to know the costs a little better,” he said.

GMU engineering consultant Jake Zimmerer has stated that the first phase of the design process will focus on determining the size, capacity and cost of the new plant. The entire process, including design, permitting and construction, will likely take five or more years.

The existing wastewater treatment plant was built by the city of Glenwood and became operational in 1983. GMU took over operations in the early 2000s. The plant was built with a life expectancy of 30 years.

“That plant is out of date,” Doug Meggison, chair of the GMU Board Of Directors, said in an interview last fall. “There are parts breaking on machines that can’t be replaced. We have to do something and that’s where we realize as a board we need to start the discussions and start the planning.”

Zimmerer said replacing the outdated facility is GMU’s only option.

“At this point, if we don’t build it, we have no sewer,” he said.

About 600,000 gallons of wastewater is treated at the plant on a daily basis, down from between 800,000-900,000 going through the facility every day when the Glenwood Resource Center was still operating. The facility has the capacity to treat up to 1.2 million gallons daily. The new plant will likely be slightly smaller physically, but have similar treatment capacity.