Mesa staff propose one‑time water and wastewater capacity fee to make growth pay for growth

Mesa City Council staff detailed a proposed water and wastewater capacity fee at a Sept. 11 study session, saying the one-time charge on new connections would make new development pay for the incremental infrastructure it requires. City staff said the fee would fund roughly $400 million in growth-only projects identified in the city's recent integrated master plan and could be introduced as an ordinance Nov. 17, with a council vote Dec. 1 and an effective date of Jan. 1 if adopted.

Why it matters: Staff said Mesa currently has no mechanism to require new development to pay for system expansion, so existing ratepayers now shoulder those costs. The city's presentations said that without a capacity fee, the utility rate base bears the expense and that growing demand forced the city to accelerate a $15 million Gilbert McKellops relief sewer project and defer other rehabilitation work.

City staff said the proposed capacity fee would be a one-time connection charge for new development or redevelopment that increases meter size. Water and wastewater staff cited national guidance and state law in crafting the proposal: the American Water Works Association manual M1, the incremental-cost method, and the statute…