The Mesa City Council on Sept. 22 adopted a notice of intent to adjust utility rates for water, wastewater and solid waste, beginning a 60‑day public-notice period and scheduling ordinance introductions and a final vote later this year.

Brian Richel, director of the Office of Management and Budget, and Christopher Hassard, Water Resources director, told the council the notice is intended to shore up reserves, accelerate parity between residential and nonresidential rate responsibilities, and allow planned repairs and capital work to proceed. The city presented a multi-year forecast showing net sources and uses moving from negative to positive with the proposed adjustments and debt-structuring changes. Staff said projected reserve levels had been a concern during the budget process and that the recommended approach reduces near-term residential rate increases while shifting some of the burden toward nonresidential rates to move revenue closer to consumption patterns.

Key elements staff presented and the timeline:
- Proposed changes include a residential water usage adjustment (presented as 4.0% on the usage charge in the slides; staff said that would be roughly 3.5% if a capacity fee is adopted) and larger increases for certain nonresidential landscape rates (staff presented a 20% landscape rate and an effective 13.6% impact after credits shown on presentation slides). Staff said the shift accelerates a move toward parity between residential and nonresidential revenue and consumption across the forecast period.
- Staff estimated a combined monthly impact for a typical residential customer using water, wastewater and solid waste of about $6.
- Adoption of the notice of intent starts a 60‑day public process. Staff briefed the council that the ordinance introductions are scheduled for Nov. 17 and that the council would take final action on rates Dec. 1, with an effective date of Jan. 1.
- Staff said the notice sets a maximum adjustment that the council could approve; council can adopt lower rate adjustments during the ordinance process.

Public commenters at the meeting asked for clearer billing breakdowns, transparency about transfers from the utility fund to the general fund, and use of median-customer data in impact estimates. Several residents said they were not aware that a portion of utility receipts have historically funded general government purposes; speakers asked that bills be clearer about transfers and that past bond and budget decisions driving debt service be explained.

Council action: the council approved the notice of intent unanimously and directed staff to continue outreach and public hearings over the next 60 days.

Why it matters: adjusting utility rates affects household budgets citywide and funds water and wastewater infrastructure and reserve levels; the notice opens a public-review period with specific dates for ordinance introduction and final council action.