The Madison Metropolitan Sewerage District has reduced its recommended 2027 rate increase from 12% to 9.9%, following concerns from member communities about the costs of major infrastructure work. The recommendation is not final: commissioners are scheduled to vote on the budget Oct. 22. The district provides wastewater treatment to 24 communities serving about 440,000 people. It bills those communities, not households directly, so any increase in local sewer bills will depend on decisions made by each municipality. McFarland officials have challenged the district’s reliance on cash reserves to cover construction costs before reimbursements arrive through state financing programs. Village Administrator Matt Schuenke has urged the district to consider lower reserves, more short-term borrowing and closer review of the timing and scale of projects. At a Thursday commission meeting, commissioners directed staff to prepare a final budget using the lower increase and reduced capital reserves. The district also plans a broader review of its reserve policies in 2027, with input from member communities. The district says it faces aging infrastructure, stricter environmental requirements and population growth. Some pipes and equipment are nearing 50 years old, and the district is preparing for more than 100,000 additional people over the next two decades. Executive Director Eric Dundee said the aim of the work is to prevent failures at the treatment plant and in the sewer system. Some projects have been postponed to prioritize what the district considers more urgent work. The district is exploring interim financing for planned biosolids improvements and will proceed with preliminary design for its Heat & Power and Biosolids projects to clarify their scope, cost and schedule. Adoption of the budget would not itself authorize construction. The district projects service charge increases of about 10% annually over the next five years, but those figures are forecasts, not approved future rates. Under the original 12% proposal, McFarland estimated that residents could pay roughly $70 to $75 more per year for sewer service. The village has not yet determined what the revised 9.9% recommendation could mean for customers. McFarland last raised its sanitary sewer rate in April 2025. Schuenke said the village may need another increase to cover higher charges from the district, while emphasizing that wastewater treatment must meet health and environmental standards. The McFarland Village Board is expected to consider a resolution opposing the proposed increases on Oct. 13. The resolution would seek changes to the district’s reserves and borrowing practices, as well as limits on annual rate increases. The district commission is scheduled to take final action on its 2027 budget Oct. 22.