Avondale staff propose water, sewer and solid‑waste rate increases to cover rising operating and capital costs; public hearing slated for May 5

City staff presented a comprehensive utility update and a proposed multiyear rate plan for water, sewer and solid‑waste utilities to address rising commodity, energy and capital costs, new federal treatment requirements and planned system expansions.

Public Works Director Kirk Beatty and Budget Manager Robert Baer described operational pressures: customer growth, expanded mains and increased capital needs, higher electricity and chemical costs, and large capital projects including planned well construction and the city’s participation in a Verde River sediment mitigation/Water Project with multiple partners. Beatty highlighted the PFAS national primary drinking water regulation finalized in April 2024 that sets a 4 parts‑per‑trillion limit and requires treatment by April 2029; staff estimated an initial capital need for PFAS treatment and related land at roughly $18 million in FY26 and a program‑level estimate of $120 million with approximately $4 million in annual operating costs thereafter.

Baer presented rate‑model proposals and said Avondale’s utility funds are self‑supporting; revenues from utilities do not subsidize other city services. He said the current combined benchmark bill (water, sewer and solid waste) is about $105.80 per month. The proposal includes: water tier increases of 6.7% on Jan. 1, 2026 and 6.1% on Jan. 1, 2027; a dedicated treatment fee of 7.5% on the total water bill (for PFAS design and land) and a 6.2% water‑resource fee on the total bill both effective Jan. 1, 2026; sewer increases of 2% on Jan. 1 of 2026 and 2027; and solid‑waste increases of $1.60 on July 1, 2025 and $1.75 on July 1, 2026. Baer said those changes would raise the typical combined customer bill to $115.13 on Jan. 1, 2026 and to $120.22 on Jan. 1, 2027, keeping utility reserves above policy minimums across the 10‑year forecast while funding capital needs.

Councilmembers asked operational questions about recycling costs, phasing of capital projects, and the timing of truck replacements. Beatty said recycling markets are volatile and that the city is monitoring costs; he noted Avondale has preserved service levels and implemented operational improvements such as route optimization, truck cameras and tablet routing to reduce callbacks and inefficiencies. Baer said the next formal step is a notice of intent set for the March 3 council agenda, followed by public outreach, a published report and a public hearing on May 5; the notice of intent does not set rates but begins the formal public process.

Councilmembers expressed concern for residents on fixed incomes and emphasized the need for public education about the drivers of rates. Staff said they will post detailed financial projections, hold outreach and return to council for adoption hearings in May.