A bill for an act relating to sewer service by establishing a maximum rate increase charged by governmental entities.

Iowa Senate Study Bill 1117 (SSB1117) aimed to limit how much local governments can increase sewer service rates. Specifically, it proposed that any rate hikes should not exceed the lower of two figures: 1) 102% of the previous year's rates, or 2) the percentage increase in the Consumer Price Index (CPI) for the Midwest region, as determined by the U.S. Department of Labor. This means that if the CPI increased by 1.5% in a given year, the maximum allowable rate increase for sewer services would be 1.5%, provided that this is less than a 2% increase over the previous year's rates. The bill was introduced on February 13, 2025, and after a subcommittee recommended its amendment and passage on March 3, 2025, it did not progress further and died in committee.

Supporters of SSB1117 argued that the bill would protect residents from steep and unexpected increases in sewer service rates, ensuring that any rate hikes are predictable and tied to economic indicators like the Consumer Price Index. This approach was seen as a way to promote transparency and fairness in how local governments manage and adjust utility costs, providing a safeguard for consumers against potential overcharging.

Critics of SSB1117 contended that imposing strict caps on sewer rate increases could hinder local governments' ability to maintain and upgrade essential infrastructure. They argued that the costs of operating and improving sewer systems often rise due to factors beyond inflation, such as aging infrastructure, environmental regulations, and unforeseen repairs. By limiting rate adjustments to the lower of 2% or the CPI increase, municipalities might struggle to fund necessary projects, potentially leading to deteriorating services or the need for alternative funding mechanisms.