WATERLOO -- Residents may be paying higher fees next year to deal with the things they throw away.

Waterloo City Council members Thursday discussed the possibility of raising sewer and garbage fees. While implementing a new storm water management fee to deal with federal clean water requirements.

A 5 percent increase in sewer fees was tentatively plugged into the proposed fiscal year 2009-10 budget slated for adoption Monday. The proposed spending plan also projected a new storm water management fee for services such as street sweeping and storm sewer maintenance.

Implementing those changes would require additional council action later in the year once city officials have a better idea of projected costs.

"Sewer operations are under the microscope," said Mayor Tim Hurley. "We've got a new wave of regulatory compliance coming at us."

The city is in the process of renewing its waste water treatment plant operating permit and will be forced to meet new federal requirements, such as disinfecting the treated waste water before dumping it into the Cedar River.

In the re-permitting there are a number of things the U.S. Environmental Protection Agency and Iowa Department of Natural Resources will require Waterloo to do, Hurley said.

"We have just started studying these things," he said. "We all take our shower and flush our toilet � and take it for granted. At the end of the day, it is one complex operation."

The City Council last raised sewer rates in December 2002.

News of the potential rate increase came up during the ongoing council budget deliberations. Waste water treatment, storm sewers and sanitation operations are enterprise funds, which are separate from the general fund and are covered with user fees instead of property taxes.

Hurley said the increased costs are due in large part to Clean Water Act requirements cities are being forced to meet without any federal financial assistance.

Hurley projects a fee of roughly $3 per household each month along with commensurate fees for businesses would generate at least $1 million annually in Waterloo. It could be used to sweep streets, maintain storm sewers, monitor construction sites for erosion and cover engineering costs related to the federal rules.

City Council members voted unanimously to include revenues rated to those fees in next year's budget, understanding formal action would be required later.

Contact Tim Jamison at (319) 291-1577 or tim.jamison@wcfcourier.com.