City staff recommend pursuing Arizona Water agreement to allow shutoffs for long-unpaid sewer bills

City staff recommended that Casa Grande pursue an agreement with Arizona Water Company to permit water-service disconnections for customers who are 90 days or more delinquent on city sewer bills and asked the council for direction at a study session.

The issue arises because the city provides wastewater service but not potable water; staff said gravity-fed sewer systems cannot reasonably be turned off, which has reduced the city’s leverage to collect sewer charges. Rob, a staff member, told the council the city conservatively estimates at least $1,800,000 in sewer revenue "that should have been collected but not collected," and presented an agreement other Arizona municipalities have used to address similar shortfalls.

Why it matters: Staff said allowing Arizona Water to disconnect shared customers who are long-term delinquent would provide a practical collection tool, reduce cross-subsidization by paying customers, and prompt delinquent customers to address balances early through payment plans.

How the proposed agreement would work

- Eligibility and notice: The agreement would apply only to customers who receive water from Arizona Water Company and wastewater service from the city and are 90…