(CHANDLER, Ariz.) – The Chandler City Council tentatively approved utility rate increases at the October 15 meeting. The rate increases are likely to raise the average residential bill by nearly $6, beginning in January 2027. Several Chandler residents spoke at the public hearing, urging the city to make large commercial and industrial users more responsible for overall cost increases.
The Council introduced Ordinance 5181 with a 6-1 vote. Doing so will usher in a 9 percent increase on water and reclaimed water rates, with a 6.5 percent jump on wastewater rates. As his time as a councilmember comes to an end, mayor-elect Matt Orlando was the sole no vote.
The Council also unanimously passed a separate resolution to increase solid waste fees by 4.5 percent. Pending final adoption, all proposed changes will go into effect on or after January 4, 2027. Materials released by the city stated the increases will apply across the board for all customer classes.
The City of Chandler states an estimated increase of $5.73 per month for a typical household using about 10,000 gallons of water. City officials also cited higher operating costs for electricity and chemicals, the need to fund capital projects to address aging infrastructure, and rising contracted costs for the collection of solid waste.
Photo Credit: City of Chandler
During the public hearing, several speakers raised opposition to a uniform percentage approach. Chandler resident and educator Michael Louie stated that the city sets customer categories in such a way that businesses are favored. He argued that big tech, industrial users, and data centers are responsible for the majority of utility costs. Long-time Chandler resident Joseph Rock used the example of a microchip company.
“They’re using 76,000 gallons a day, and I might use 10, 20, maybe, at the most. And the same 9% rate. That’s why I disapprove of it,” said Rock.
Another long-time resident, Ed Contreras, expressed deep concern about families and those on a fixed income.
In response to the questions related to who should take on the lion’s share of increased costs, the city of Chandler mentioned its 2020-21 cost-of-service study. The study recommended realigning rates through three planned adjustments. Two of these adjustments have already been implemented.
Since the study was conducted, operating costs and planned capital projects have changed significantly. The remaining realignment has been paused by the city, which proposed across-the-board increases until an updated analysis has been completed.
A new cost-of-service study is slated to address the allocation of costs and revenues for commercial, residential, industrial, and multi-family customers. The city’s study will evaluate whether the revenue being collected from each class accurately reflects the cost of providing service and identify where any adjustments may be needed.
The stated goal is for rates to reflect the cost of service for each customer class. The city of Chandler expects the study to be used for adjusting rates for the 2028 calendar year.
Photo Credit: City of Chandler
Orlando was elected mayor in the July 21 primary. He will take office in January 2027 and explained his no vote by stating he wanted additional review of water usage and potential savings.
While he did not directly comment on his no vote, Orlando has previously stated that he doesn't believe "That residents should be subsidizing large businesses and the other categories of rate payers. Every entity should equally pay their fair share of the cost."
Chandler residents are frustrated, as this marks the second utility rate hike in less than a year. The previous increase went into effect in March and raised water and wastewater rates by 15 percent, with reclaimed water rates going up 18 percent. Final adoption of the current ordinance is scheduled for the November 12 meeting. Residents can review the full proposal and utilize the bill calculator at chandleraz.gov/ProposedUtilityRates.
To add or correct any information contained in this report, please contact me at george.y@lead4earth.org. You can also leave a comment below with your thoughts on the utility rate increases.
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