Council hears staff report on sewer fund shortfall; staff to publish 60‑day notice for possible rate change

City staff told the Sierra Vista City Council that the sewer enterprise fund ran a cash shortfall last fiscal year and that the council would be asked to allow a 60‑day public comment period ahead of any formal sewer rate increase.

Mister Felix, presenting the staff report, said Arizona Revised Statutes require a 60‑day public notice before the council may vote on raising sewer rates and that the council would vote on any proposed increase at its mid‑May meeting. “This resolution will do. We'll put a 60 day period comment period out there. We will vote on the actual increase on mid May,” Felix said.

The nut graf: The presentation framed the request as a procedural step to open a public comment window; staff also described operational pressures that led to the request and said the sewer fund took on roughly a million‑dollar negative cash position in the last fiscal year before a $600,000 transfer reduced the deficit.

City staff told council members the sewer fund’s operating position worsened after maintenance and repair needs at the city’s effluent recharge plant and several aging sewer lines. “The liners that are in the four basins have a 10 to 15 year lifespan. The plant was done 12 years ago, so it's coming up on time to do this,” Felix said when asked about a torn liner. Felix said several smaller sewer repair needs (including a Taco Bell lateral and three other lines) are maintenance expenses that come out of the sewer fund’s operations rather than capital accounts.

Mister Gordon, speaking during the same agenda item, described how enterprise funds are accounted for and said those funds are intended to be self‑sustaining on user fees rather than subsidized by sales tax or state shared revenue. “Enterprise funds are set up as businesses... No tax dollars are subsidizing the funds,” Gordon said.

Staff emphasized that the resolution before the council at the meeting was not the rate increase itself but authorization to publish notice and begin the statutorily required comment period. The staff report said the proposed sewer, sewer connection fee and refuse rate changes would take effect July 1 if later approved and that the city will present additional cost estimates and options at a future work session.

The meeting record shows staff presented the resolution and fielded questions; no formal roll‑call vote on the rate change itself occurred at that session. City staff said copies of the associated cash flow statement and public notice would be placed on the city website and in the city clerk’s office for public review.

Looking ahead, staff said they will return with more detailed cost estimates, liner replacement timing and proposed connection‑fee adjustments before council consideration of a final ordinance or resolution in mid‑May.