As Minnetonka approaches 60 years, the water and sewer pipes running under city streets are also getting older. 

A citywide infrastructure assessment found that 70 percent of Minnetonka’s water mains and 80 percent of sewer mains were installed in the 1960s and 1970s.While the city continues to replace infrastructure annually, a large portion of those pipes are nearing the end of their useful life.

“It’s important we understand the life span of our assets, so we can plan and prepare for replacement,” said Finance Director Darin Nelson. “We expect 20 percent of city pipes will need replacement in the 2040s and another 30 percent will be replaced during the 2070s.”

The cost of replacing pipes over one decade will be both intense and expensive. That’s why the city uses a combination of pay-as-you-use and pay-as-you-go financing to spread replacement costs between current and future rate payers.

“The city needs to begin incrementally saving for the renewal and replacement of utility assets,” Nelson said.

Beginning this year, the city is splitting its current infrastructure fee into separate water infrastructure and sewer infrastructure charges. This change not only provides clarity for customers, but also ensures a steady, predictable revenue stream to cover necessary capital and debt service costs for both utilities.

Water

In 2026, Minnetonka is also reducing its number of water billing tiers to simplify bills and reflect residents’ ongoing water conservation efforts.

Over the past 20 years, the average water usage per household has decreased by 33 percent thanks to improved conservation and more efficient appliances.

Overall, quarterly water and sewer rates are increasing between $22.60 (low water user of 9,000 gallons per quarter) and $27.50 (average user of 15,000 gallons per quarter). Future rate increases are expected to be more modest after this year’s increase.

2026 Water Billing Rates

• 0–15,000 gallons $3.50 per 1,000 gallons
• 15,001–30,000 gallons $4.73 per 1,000 gallons
• 30,001 gallons and up $7.50 per 1,000 gallons

Recycling

Recycling rates will also increase $6.27 per quarter in 2026. The increase is due to Republic Services’ annual contract increase and growing participation in organics recycling.

The city contract uses a tier system for organics recycling with higher participation prompting higher rates to cover increased hauler costs. Over the past year, household organics recycling participation grew from less than 10 percent to nearly 20 percent with an additional tier increase anticipated soon.