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El Mirage council approves 3% water rate increases after contentious public hearing
Summary
After a lengthy public hearing and an initial failed vote, the El Mirage Common Council approved Resolution R25-54 to raise water rates 3% in fiscal year 2026 and 3% in 2027 and adopt changes to wastewater billing; debate focused on meter replacement costs, use of enterprise funds, and whether general-fund transfers could avoid a rate increase.
The El Mirage Common Council on May 6 approved Resolution R25-54 to set new water and wastewater rate components, adopting a 3% increase to water rates for fiscal year 2026 and a second 3% increase in 2027 and moving wastewater billing to a flat-rate model with a 3% increase only in FY 2027.
Council members opened a public hearing and heard multiple residents oppose any increase. “If there’s any way you can not raise the water, that would be great,” said Tom George, an eight-year El Mirage resident. Several other residents warned that repeated annual increases and higher rents were straining fixed-income households.
Staff and consultants described the financial drivers behind the proposal. The public works presentation said the city would replace roughly 12,000 water meters installed in 2014. The department estimated a total capital cost of about $8.5 million for a full system replacement and said roughly 20% of meters currently are being read manually. The proposed rate changes were presented as necessary to fund ongoing operations, capital needs and debt service tied to the water enterprise fund. The staff presentation also proposed eliminating the recharge fee and accepting water-credits from the city of Surprise, and adding an oversized-line fee to the schedule (91¢ per additional gallon of capacity required).
Several residents and council members pressed alternatives. “Personally, I’d like to see this city live within its means,” said public commenter Jeff Lock, who asked for a 10% budget cut. Council members asked whether the general fund could pay for the meters rather than borrowing or raising rates. Budget staff and the city’s finance representatives said the water utility is an enterprise fund that is intended to be self-supporting and that using general fund dollars to subsidize the water fund could raise legal and policy issues and would, effectively, shift costs from water users to general-taxpayers. Deputy City Manager Robert Neely noted Surprise accounts for roughly 15–20% of system usage and warned that a general-fund subsidy would in practice subsidize Surprise’s share of the system.
The council’s first motion to approve the resolution failed on a roll-call vote. Council then moved to reconsider and, after additional discussion, adopted the resolution on a 4–3 roll call. Vice Mayor Parsons, Council Member Dorsey, Council Member Winston and the mayor voted yes; Council Members Aldridge, Gentry and Norton McDaniel voted no.
The council also instructed staff to reflect the adopted changes in the consolidated fee schedule and to continue work on capital procurement for the meter-replacement project. Staff said procurement had not yet been executed and the budgeted capital estimate could be refined with competitive bidding.
What happens next: staff will update the fee schedule and implement the rate schedule per Resolution R25-54. The meter-replacement procurement and related capital planning will move forward under the adopted CIP and budget authority.
