Goodyear council directs notice to advertise potential stormwater fee; debates size and timing

Water Services Director Barbara Chappell and Finance Director Jared Askelson presented a proposal on Sept. 15 for a citywide stormwater fee to fund stormwater operations, regulatory compliance and capital work. Council directed staff to proceed with advertising a notice of intent to set utility rate changes, including a stormwater fee, for a public hearing in December, while several members said they were uncomfortable with some proposed fee levels.

Why it matters: Goodyear, as a jurisdiction larger than 50,000 people, must meet stormwater regulatory requirements enforced by the Arizona Department of Environmental Quality. Staff said stormwater expenditures have risen from about $400,000 previously to $3,000,000 in the current budget year as the city increased maintenance and right‑of‑way work. Forecasts show ongoing costs could exceed $4,000,000 by FY2030. Currently stormwater expenses are paid from the general fund.

Proposed options: staff presented two approaches. One would recover 100% of operating costs as quickly as practicable (targeting FY2027), with a $7 monthly residential fee in the first two years and increases thereafter. The second, phased approach would begin near $2.25 per month and rise in steps to $9 by year 4, recovering 100% of operating costs around FY2029. The Citizens Water Advisory Committee adopted a rate recommendation last week but had some dissenting members concerned about total monthly household impacts across utilities.

Service area and billing: staff said the stormwater fee would apply citywide and to all utility accounts, including accounts north of I‑10 and commercial customers served through Liberty utilities; staff noted administrative complications in applying parcel‑size or per‑acre charges for commercial properties and referenced state statute limits on certain assessment methods.

Council response: several councilmembers said they supported establishing a stable revenue source but were reluctant to make Goodyear’s fee among the highest in the region. One councilmember favored a lower initial fee (around $3) and incremental steps; another said he did not want one part of the city subsidizing another. Staff reiterated that advertising the notice next week does not adopt an increase; the formal rate adoption hearing is scheduled for Dec. 15, with rates phased in afterward if adopted.

Next steps: staff will include the stormwater fee in the notice of intent to set utility rates for public hearing, continue discussion at the council retreat in October on overall utilities, and present the December hearing with the full rate package for potential adoption.