Sierra Vista opens 60-day comment period on proposed sewer fee and connection fee increases

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, staff said.

City utility finance staff told the council the sewer fund is operating as an enterprise fund and must be supported by user fees, not general-tax dollars. “The sewer fund is an enterprise fund, which means that the user fees have to cover the cost of the fund,” city staff member Phillips said during the presentation. Staff proposed a possible 15% increase in sewer rates for the coming fiscal year, another 15% the following year, and a rise in connection fees of about 2.25 times. The increases would not take effect unless adopted at a later public meeting; the May 23 hearing will be the decision point.

The council motion to declare the intent and open the 60-day notice period was moved by Council member David Jones and the resolution passed on a voice vote. The resolution establishes the May 23, 2025 hearing and does not itself raise rates.

Why it matters: Staff said the sewer fund’s cash position has deteriorated after operational problems at the wastewater plant, including a torn liner and other repairs. Phillips said the plant’s liner life expectancy is 10 to 15 years and that the plant was last upgraded in 2011, placing it near the end of that expected service life. He said the previous plant upgrades reduced electricity costs by roughly $225,000 a year. Staff described an operating shortfall and urged building cash reserves to pay for near-term repairs and several upcoming pipe repairs.

Council and staff reiterated the process steps: state law requires a 60-day notice before voting to raise sewer fees; the March 27 resolution sets the notice and hearing date; a subsequent vote at or after the May 23 hearing could adopt increases to take effect July 1 for the new fiscal year. Staff said back-up documents with proposed rates and a cash-flow analysis will be posted on the city website and available at the city clerk’s office.

Details and context: Staff said the last sewer rate increase occurred in 2012, tied to the earlier plant upgrade. At the March 27 meeting staff characterized the sewer fund’s cash position as having worsened—from roughly $1.3 million negative earlier to a multi-million-dollar negative balance after recent plant issues—and said multiple repairs will be needed over the next several years. The resolution cited in council action is 2025-023, Declaration of Intent for increase in sewer connection fees; the hearing is set for the May 23 council meeting.

No changes to rates were adopted March 27; council only approved the notice and hearing date that begins the formal public-comment period.