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Sierra Vista council sets 60-day notice and May hearing on proposed sewer fee increases
Summary
The City Council approved a resolution to declare intent to increase sewer connection fees and opened a 60-day public comment period with a hearing set for May 23, 2025. Staff said the city may propose annual 15% regular fee increases and roughly a 2.25-times increase for connection fees to address cash shortfalls at the wastewater plant.
The Sierra Vista City Council on March 27 approved a resolution declaring its intent to increase sewer connection fees and opened a 60-day public comment period, setting a public hearing for May 23, 2025. The resolution does not itself raise rates but begins the formal notice period required before a rate increase vote.
City staff explained the sewer fund is an enterprise fund and must be self-supporting. "The sewer fund is an enterprise fund, which means that the user fees have to cover the cost of the fund," said Mister Phillips, a city staff member who gave the staff report. He told the council the city is proposing a 15% increase in sewer rates this year with a possible additional 15% next year and that connection fees would rise by about 2.25 times under the current proposal.
Phillips said the fund’s cash position deteriorated after problems at the wastewater plant, noting the fund went from roughly $1.3 million negative to about $2.6 million negative because of plant issues, including a torn liner near the liner’s expected end of life. The last sewer rate increase occurred in 2012; upgrades at that time reduced electricity costs and delayed subsequent increases. The resolution sets the May 23 hearing as the meeting at which the council may vote to raise rates, and staff posted the proposed rates and cash-flow analysis on the city website and at the city clerk’s office.
Council members did not debate alternative percentages during the meeting; the motion to declare intent was made by Council member David Jones and the resolution passed after a voice vote. Staff said council will be able to vote on increases up to, but not exceeding, the 15% proposed rates at the May hearing. Phillips also noted that if the council approves the proposed connection fee increases it would remove existing impact fees for infrastructure, parks, police and fire, producing a net savings of about $198 for a new house under the example shown to council.
Background documents and the proposed fee schedule will remain available for public review. The council’s action on March 27 initiated the legally required notice and set the timetable for public comment and a subsequent formal vote.
