Sierra Vista staff proposes phased sewer and refuse rate increases, shifts impact-fee structure

City staff presented a package of proposed utility and development-fee changes that would raise sewer and refuse rates in two phased increases and restructure several impact fees, with council votes scheduled for the May 22 regular meeting.

The proposal would raise sewer rates by 15% in two steps — the first effective July 1, 2025, and the second July 1, 2026 — and increase refuse rates by 10% on the same schedule. "We're proposing a 10% rate increase, 1 in July '25 and 1 in 07/01/2026," said Mister Felix, a city staff member who presented the item. Felix said the sewer increase is across-the-board for residential and business accounts and the refuse increase will generally raise bills for customers who receive side-loader collection service.

Why it matters: utility rate increases affect household budgets and development costs; staff said the measures are tied to needed sewer-line replacements, higher vehicle maintenance and fuel costs for refuse collection, and planned capital projects that must be funded without delaying scheduled work.

Key details and impacts

- Sewer: a 15% increase phased in two equal steps (effective July 1, 2025, and July 1, 2026); described by staff as an "across the board increase for all businesses and residential." Felix said required public-notice steps have been taken.

- Refuse: a 10% increase phased July 1, 2025, and July 1, 2026. Felix said the net effect for a residential customer with a 65-gallon can is about a $4.41 monthly increase for the first step (billed bimonthly as approximately $8.82). For a 95-gallon can he said the first-step increase is about $4.80 (about $9.38 on a bimonthly bill). Year-in-advance customers retain a 10% discount, Felix added.

- Scope: Felix said the refuse proposal affects residential customers and commercial accounts that use the same side-loader trucks; he also noted some commercial service is covered by separate contracts (for example, with Waste Management) and may not be affected.

- Impact-fee restructure: staff proposed suspending several development fees (police, fire, parks and infrastructure fees) and increasing the sewer connection fee, which is governed by the city’s sewer ordinances. Felix said the change would save builders about $198 per house compared with the existing mix of fees and studies.

- Transfers and uses: Felix said remaining infrastructure development fees would be transferred to the HEERF fund to support an extension of BST toward the American Academy, and other funds would be transferred to the Capital Improvements Fund to pay for the first phase of Roadrunner Park; police and fire impact fees carry negative balances tied to prior construction of Fire Station 3 and police station expansion.

Process and next steps

Felix told council the three related resolutions will be voted on separately at the regular council meeting on Thursday. He said required notices and financial statements have been provided and that staff had received no formal public comments for or against the rate changes as of the work session. No formal motions or votes were taken at the work session; the outcomes will be recorded during the May 22 regular meeting.

Comments from council and staff

Mayor McCall and other council members asked clarifying questions during the presentation. Chuck, a city staff member who later discussed the Riverstone recharge project tied to treated effluent reuse, and Sharon, a staff member who identified a grant source, provided additional context for capital projects that relate to the proposed fee changes.

What was not decided

Council did not vote on the resolutions during the work session; final approval, any amendments and a formal vote will occur at the May 22 regular meeting. Staff did not provide exact counts of commercial accounts that would be unaffected by the refuse increase or a detailed payback analysis for the developer savings beyond the per-home estimate.

Ending

The council will take the three resolutions up separately at its May 22 meeting. Staff said they will be available to answer further questions before that vote.