S.F. _____ Section 1. Section 331.465, subsection 1, Code 2025, is 1 amended to read as follows: 2 1. a. The board may establish, impose, adjust, and provide 3 for the collection of rates to produce gross revenues at least 4 sufficient to pay the expenses of operation and maintenance 5 of the county enterprise or combined county enterprise and, 6 if revenue bonds or pledge orders are issued and outstanding 7 under this part, shall establish, impose, adjust, and provide 8 for the collection of rates to produce gross revenues at least 9 sufficient to pay the expenses of operation and maintenance of 10 the county enterprise or combined county enterprise, and to 11 leave a balance of net revenues sufficient at all times to pay 12 the principal of and interest on the revenue bonds and pledge 13 orders as they become due and to maintain a reasonable reserve 14 for the payment of the principal and interest, and a sufficient 15 portion of net revenues shall be pledged for that purpose. 16 b. Rates shall be established by ordinance. Rates or 17 charges for the services of a county enterprise defined 18 in section 331.461, subsection 2 , paragraph “b” , if not 19 paid as provided by ordinance, constitute a lien upon the 20 premises served and may be certified to the county treasurer 21 and collected in the same manner as taxes. The treasurer 22 may charge five dollars for each lien certified as an 23 administrative expense, which amount shall be added to the 24 amount of the lien to be collected at the time of payment of the 25 assessment from the payor and credited to the county general 26 fund. 27 c. The aggregate of the rates and charges for sewer services 28 shall not exceed the lower of one hundred two percent of the 29 aggregate of the rates and charges from the previous budget 30 year or the percentage increase in the consumer price index 31 for the midwest region as determined by the United States 32 department of labor, bureau of labor statistics, or a successor 33 index. Increases to rates and charges for sewer services 34 planned prior to July 1, 2025, for repayment of debt incurred 35 -1- LSB 1183XC (2) 91 sb/js 1/ 7

S.F. _____ before July 1, 2025, shall be excluded from rate and charge 1 increase limits established in this paragraph. If rate and 2 charge increases for sewer services exceed the limits required 3 in this paragraph, the increased rate or charge shall be 4 effective at the start of the budget year. The board shall 5 direct the county commissioner of elections to submit to the 6 registered voters of the county at the next general election 7 the question of whether to accept the increased rate or charge 8 by the proposed amount. The result of the election shall take 9 effect immediately upon certification. If the question fails, 10 all rates and charges paid by customers for sewer services 11 exceeding the limits established by this paragraph from the 12 beginning of the current budget year until the certification of 13 the general election shall be refunded by January 1 following 14 the general election. 15 Sec. 2. Section 358.20, subsection 1, Code 2025, is amended 16 to read as follows: 17 1. a. Any sanitary district may by ordinance establish just 18 and equitable rates, charges, or rentals for the utilities and 19 services furnished by the district to be paid to the district 20 by every person, firm, or corporation whose premises are served 21 by a connection to the utilities and services directly or 22 indirectly. The rates, charges, or rentals, as near as may be 23 in the judgment of the board of trustees of the district, shall 24 be equitable and in proportion to the services rendered and the 25 cost of the services, and taking into consideration in the case 26 of the premises the quantity of sewage produced thereby and its 27 concentration, strength, and pollution qualities. The board of 28 trustees may change the rates, charges, or rentals from time 29 to time as it may deem advisable, and by ordinance may provide 30 for collection. The board may contract with any municipality 31 within the district, whereby the municipality may collect or 32 assist in collecting any of the rates, charges, or rentals, 33 whether in conjunction with water rentals or otherwise, and 34 the municipality may undertake the collection and render the 35 -2- LSB 1183XC (2) 91 sb/js 2/ 7

S.F. _____ service. The board of trustees may also contract pursuant 1 to chapter 28E with one or more city utilities or combined 2 utility systems, including city utilities established pursuant 3 to chapter 388 , for joint billing or collection, or both, 4 of combined service accounts for sanitary district services 5 and utility services, and the contracts may provide for 6 the discontinuance of one or more of the sanitary district 7 services or water utility services if a delinquency occurs in 8 the payment of any charges billed under a combined service 9 account. The rates, charges, or rentals, if not paid when due, 10 shall constitute a lien upon the real property served by a 11 connection. The lien shall have equal precedence with ordinary 12 taxes, may be certified to the county treasurer and collected 13 in the same manner as taxes, and is not divested by a judicial 14 sale. 15 b. The aggregate of the rates and charges for sewer 16 services shall not exceed the lower of one hundred two percent 17 of the aggregate of the rates and charges from the previous 18 budget year or the percentage increase in the consumer price 19 index for the midwest region as determined by the United 20 States department of labor, bureau of labor statistics, or a 21 successor index. Increases to rates and charges for sewer 22 services planned prior to July 1, 2025, for repayment of debt 23 incurred before July 1, 2025, shall be excluded from rate and 24 charge increase limits established in this paragraph. If rate 25 and charge increases for sewer services exceed the limits 26 required in this paragraph, the increased rate or charge shall 27 be effective at the start of the budget year. The board of 28 trustees shall direct the county commissioner of elections to 29 submit to the registered voters of the city at the next general 30 election the question of whether to accept the increased rate 31 or charge by the proposed amount. The result of the election 32 shall take effect immediately upon certification. If the 33 question fails, all rates and charges paid by customers for 34 sewer services over the limits established by this paragraph 35 -3- LSB 1183XC (2) 91 sb/js 3/ 7

S.F. _____ from the beginning of the current budget year until the 1 certification of the general election shall be refunded by 2 January 1 following the general election. 3 Sec. 3. Section 358C.15, subsection 1, Code 2025, is amended 4 to read as follows: 5 1. a. A board of trustees may by ordinance establish 6 equitable rates, charges, or rentals for the utilities and 7 services furnished by the district to be paid to the district 8 by every person, firm, or corporation whose premises are 9 served by a connection to the utilities and services directly 10 or indirectly. The rates, charges, or rentals, as near as 11 may be in the judgment of the board of trustees, shall be 12 equitable and in proportion to the services rendered and the 13 cost of the services, and taking into consideration in the case 14 of the premises the quantity of sewage or water produced or 15 used and the concentration, strength, and pollution qualities 16 of the sewage. The board of trustees may change the rates, 17 charges, or rentals as it may deem advisable, and by ordinance 18 may provide for collection. The board may contract with any 19 municipality within the district, whereby the municipality may 20 collect or assist in collecting any of the rates, charges, 21 or rentals, whether in conjunction with water rentals or 22 otherwise, and the municipality may undertake the collection 23 and render the service. The rates, charges, or rentals, if not 24 paid when due, shall constitute a lien upon the real property 25 served by a connection. The lien shall have equal precedence 26 with ordinary taxes, may be certified to the county treasurer 27 and collected in the same manner as taxes, and is not divested 28 by a judicial sale. 29 b. The aggregate of the rates and charges for sewer 30 services shall not exceed the lower of one hundred two percent 31 of the aggregate of the rates and charges from the previous 32 budget year or the percentage increase in the consumer price 33 index for the midwest region as determined by the United 34 States department of labor, bureau of labor statistics, or a 35 -4- LSB 1183XC (2) 91 sb/js 4/ 7

S.F. _____ successor index. Increases to rates and charges for sewer 1 services planned prior to July 1, 2025, for repayment of debt 2 incurred before July 1, 2025, shall be excluded from rate and 3 charge increase limits established in this paragraph. If rate 4 and charge increases for sewer services exceed the limits 5 required in this paragraph, the increased rate or charge shall 6 be effective at the start of the budget year. The board of 7 trustees shall direct the county commissioner of elections to 8 submit to the registered voters of the city at the next general 9 election the question of whether to accept the increased rate 10 or charge by the proposed amount. The result of the election 11 shall take effect immediately upon certification. If the 12 question fails, all rates and charges paid by customers for 13 sewer services over the limits established by this paragraph 14 from the beginning of the current budget year until the 15 certification of the general election shall be refunded by 16 January 1 following the general election. 17 Sec. 4. Section 384.84, subsection 1, Code 2025, is amended 18 to read as follows: 19 1. a. The governing body of a city utility, combined 20 utility system, city enterprise, or combined city enterprise 21 may establish, impose, adjust, and provide for the collection 22 of rates and charges to produce gross revenues at least 23 sufficient to pay the expenses of operation and maintenance of 24 the city utility, combined utility system, city enterprise, or 25 combined city enterprise. When revenue bonds or pledge orders 26 are issued and outstanding pursuant to this subchapter , the 27 governing body shall establish, impose, adjust, and provide 28 for the collection of rates to produce gross revenues at least 29 sufficient to pay the expenses of operation and maintenance of 30 the city utility, combined utility system, city enterprise, 31 or combined city enterprise, and to leave a balance of net 32 revenues sufficient to pay the principal of and interest on 33 the revenue bonds and pledge orders as they become due and to 34 maintain a reasonable reserve for the payment of principal 35 -5- LSB 1183XC (2) 91 sb/js 5/ 7

S.F. _____ and interest, and a sufficient portion of net revenues must 1 be pledged for that purpose. Rates must be established by 2 ordinance of the council or by resolution of the trustees, 3 published in the same manner as an ordinance. 4 b. The aggregate of the rates and charges for sewer services 5 shall not exceed the lower of one hundred two percent of the 6 aggregate of the rates and charges from the previous budget 7 year or the percentage increase in the consumer price index 8 for the midwest region as determined by the United States 9 department of labor, bureau of labor statistics, or a successor 10 index. Increases to rates and charges for sewer services 11 planned prior to July 1, 2025, for repayment of debt incurred 12 before July 1, 2025, shall be excluded from rate and charge 13 increase limits established in this paragraph. If rate and 14 charge increases for sewer services exceed the limits required 15 in this paragraph, the increased rate or charge shall be 16 effective at the start of the budget year. The governing body 17 shall direct the county commissioner of elections to submit to 18 the registered voters of the city at the next general election 19 the question of whether to accept the increased rate or charge 20 by the proposed amount. The result of the election shall take 21 effect immediately upon certification. If the question fails, 22 all rates and charges paid by customers for sewer services over 23 the limits established by this paragraph from the beginning of 24 the current budget year until the certification of the general 25 election shall be refunded by January 1 following the general 26 election. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill creates a maximum yearly increase allowed for 31 sewer rates charged by counties, cities, and intergovernmental 32 sewer services. The bill sets the maximum increase of sewer 33 services rates and charges at 2 percent more than the aggregate 34 of rates and charges from the previous budget year or the 35 -6- LSB 1183XC (2) 91 sb/js 6/ 7

S.F. _____ percentage increase of the consumer price index for the midwest 1 region, whichever is lower. The bill excludes increases to 2 rates and charges planned prior to July 1, 2025, for repayment 3 of debt incurred before July 1, 2025, from the increase limits. 4 The bill provides that if rate and charge increases exceed the 5 limits, the increased rate or charge shall be effective at 6 the start of the budget year. The relevant authority shall 7 direct the county commissioner of elections to submit to the 8 registered voters of the jurisdiction at the next general 9 election the question of whether to accept the increased 10 rate or charge by the proposed amount. The result of the 11 election shall take effect immediately upon certification. If 12 the question fails, all rates and charges paid by customers 13 for sewer services exceeding the limits required by the 14 bill from the beginning of the current budget year until the 15 certification of the general election shall be refunded by 16 January 1 following the general election. 17 -7- LSB 1183XC (2) 91 sb/js 7/ 7