Gilbert council adopts higher wastewater and reclaimed-water rates after lengthy public hearing

Gilbert Town Council on Feb. 11 adopted new wastewater and reclaimed-water rates after a public hearing that lasted more than three hours.

The council voted 6-1 to approve Resolution No. 4537, which implements an "all-cash" funding option for an identified five-year capital plan to repair and replace aging sewer infrastructure. Council member Jim Torgerson cast the lone dissenting vote. The council separately approved a reclaimed-water rate increase unanimously (7-0).

The vote follows months of study and a two-month public outreach campaign. "Sanitary sewer service is the critical inflection point in human history that has saved the most lives," said Eric (Utilities staff), presenting the need for repairs and replacement and outlining two alternatives: an all-cash option that front-loads projects and a phased cash-and-bond approach that spreads costs but generates long-term interest expense. Eric said the all-cash option would avoid about $72 million in interest costs associated with a proposed $110 million bond.

Why it matters: Much of Gilbert's sewer infrastructure was installed between about 1990 and 2010, and several high-degradation components have reached or passed expected lifespans. Staff showed video and photos of failing force mains and said some emergency repairs and slip-lining contracts are already in progress. The council was asked to decide between a near-term higher rate that places cash on hand into a repair-and-replacement fund or to borrow and phase the cost, which would reduce near-term bills but increase lifetime costs.

What the rates mean: Staff presented residential impacts under each option. Under the all-cash option adopted by the council, the residential flat fee increase shown on staff slides was $29.26 (on top of a current $32.75 baseline figure referenced in the presentation). Under the phased approach discussed during the…