Utility Rate Changes for Fiscal Year 2023-24 (went into effect Jan. 1, 2024)
The City of Chandler manages and operates Water, Wastewater, Reclaimed Water, and Solid Waste utilities, and has adopted Utility Rate increases to fund rising ongoing operating costs as well as capital construction materials and related debt service costs. The rate adjustments can be identified below.
Operating costs such as chemicals and electricity that are essential to the processes of providing safe drinking water and treating wastewater continue to increase, and there have also been increases in our contract costs for solid waste and recycling collection.
Capital construction materials and related debt service costs have also increased related to Water and Wastewater facility improvement projects focused on aging infrastructure such as main replacements, well construction and rehabilitation, and sewer assessments and rehabilitation.
These water and wastewater rate adjustments incorporate the results of our most recent Cost of Service Study which was completed in 2021. A Cost of Service Study analyzes the actual demand and impact each customer class has on the utility system, and then allocates the costs of providing these services to each classification based on their unique characteristics. This process identified some necessary shifts in the rate structure to ensure each customer class is paying their fair share for the services provided. These adjustments will have impacts on single-family, multi-family, non-residential, landscape, and industrial customer classes for water; and single-family, multi-family, and non-residential customer classes for wastewater. Additional details about these impacts are listed below.
The reclaimed water and solid waste rate and fee changes that are based on revenue requirements to meet the increasing costs associated with these services.
Changes to the current Recycling Solid Waste Collection Center (RSWCC) and bulk pick-up policies were also approved. The updated policy will allow for up to four free visits to the RSWCC (for the first 400 lbs. per visit) or scheduled bulk collections per calendar year in any combination. Any additional visits to the RSWCC will be charged $10 for up to 400 lbs., with loads over 400 lbs. being charged the per ton rate of $50. Any additional bulk collections would be charged a rate of $35 per collection.
To cover the increasing costs of providing solid waste services, the monthly service charge will increase by 7%. In addition to this change, additional recommendations for the services provided are as follows:
A change from the current two no-cost visits to the RSWCC per year (for the first 400 lbs. per visit) and two bulk collections will adjust to allow for up to four free visits to the RSWCC or scheduled bulk collections per calendar year in any combination. Any additional visits to the RSWCC will be charged $10 for up to 400 lbs., with loads over 400 lbs. being charged the per ton rate of $50. Any additional bulk collections would be charged the updated rate of $35 per collection.
Additionally, the hours of operation at the RSWCC will adjust from the current hours of 8:00 a.m. - 4:00 p.m. to 6:00 a.m. - 2:00 p.m. during the summer months from Memorial Day to Labor Day. Normal hours will then resume after Labor Day until the following Memorial Day.
Below is the presentation used during the Council work sessions to discuss the revenue requirements and Cost of Service adjustments needed. The decisions moving forward out of these meetings include:
- Inform and educate residents and businesses on the proposed Water rates allowing for 100% alignment with the results of the Cost of Service Study by 2026.
- Inform and educate residents and businesses on the proposed Wastewater rates allowing for 100% alignment with the results of the Cost of Service Study by 2026.
- Inform and educate residents and businesses on the proposed Reclaimed Water rates.
- Inform and educate residents and businesses on the proposed Solid Waste rate increase needed, as well as policy changes to services provided.
- Gathering any additional feedback or questions from residents and businesses as they may offer.
City Council Work Session: July 20, 2023
FY 2023-24 Informational Paper
Public Meeting Presentations:
Why do we need a utility rate increase?
The City of Chandler Council has reviewed the fiscal health of our water, wastewater and solid waste utilities and determined that rate adjustments are needed to keep the funds balanced with expenses over the next few years.
A financially strong and stable utility is necessary in order to maintain the existing critical infrastructure and services our customers rely on. As infrastructure ages, it needs to be maintained and sometimes, replaced.
- There are planned improvements to the water treatment production plant as well as the water reclamation facility and advanced wastewater treatment processes.
- An additional focus on aging infrastructure and replacements such as Main replacement, well construction and rehabilitation and sewer assessments and rehabilitations.
Solid waste services utility has seen additional contract costs associated with our collection contract. In addition to contract cost changes:
- The recycling industry is volatile. Chandler used to collect revenue from recycling but it is now a net cost to recycle.
- We have seen increased costs for disposing and transporting of waste at landfills and increased costs for operating equipment and containers.
The new rates better reflect today’s cost of service to deliver safe and reliable water, process wastewater and provide solid waste and recycling services to our customers.
How much is my single-family residential bill expected to change?
Please see the Average Bill Change examples above.
How does Chandler compare to other Valley cities for utility costs?
Our most common customer type is residential and that comparison is provided below based on an average 10,000 gallon usage on a 5/8” meter.
Can I minimize the impacts of a rate increase by using less water?
Yes, the fewer gallons of water used, the lower your utility bill will be. Learn more about water conservation.
Updated anticipated future rate changes coming soon.
Should you have specific questions or comments on the changes, please use the comments or feedback form.