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City staff to publish 60‑day public notice ahead of possible sewer rate increase; sewer fund shortfall cited
Summary
City staff told the Sierra Vista City Council it will publish a 60‑day public notice required by Arizona law before the council votes on proposed sewer rate changes. Staff says the sewer enterprise fund ran a more than $1 million operational deficit last year and that repairs and aging plant liners are driving the request.
City staff said Thursday they will publish the 60‑day public notice required by Arizona law ahead of a May 21 council vote on proposed sewer rate changes.
Felix, a city staff member, told the council that Arizona Revised Statutes require the notice and that the city will make the cash‑flow statement attached to the proposed resolution available on the city website and at the city clerk’s office. "We'll put a 60 day period comment period out there. We'll vote on the actual increase at the May 21 meeting," Felix said.
The item matters because city staff reported the sewer enterprise fund moved to a significant operating deficit last year. Felix said the sewer fund went "over a million dollars cash negative last year," and that a $600,000 transfer provided short‑term relief. Staff said several maintenance needs are driving higher expenses: a ripped liner in the effluent recharge plant, multiple sewer line repairs (including a line that serves a Taco Bell), and other ongoing maintenance work.
City staff said the last sewer rate increase occurred in 2012 and noted the plant upgrades at that time reduced electricity costs by about $200,000 annually. Felix said the proposed package would include a sewer rate increase, a sewer connection fee increase and a refuse rate increase, and that staff is also proposing to suspend the park, infrastructure, police and fire impact funds because current development revenue is not covering those impact‑fee programs.
Felix described the sewer connection fee increase as being coordinated with planned plant work and said staff will present estimated plant costs at an upcoming work session. Felix told council members the change is intended to better match development charges to the expected cost of a new plant and to simplify the fee structure developers face.
Council Member Benning said he compared local rates with Prescott and that the proposed increase appeared "well justified." Felix and other staff members said refuse‑rate changes are not subject to the same 60‑day notice requirement under state statute as sewer rates.
What happens next: staff will publish the 60‑day notice, post related documents online and at the clerk’s office, and present more details — including consultant recommendations on liner repairs and an estimated cost for plant work — at a scheduled work session. The council will be asked to consider the actual rate change at its May 21 meeting; no final vote on rates was recorded at Thursday’s meeting.
