Mesa staff propose one‑time water/wastewater capacity fee to raise $400M; council asks for rate‑shift scenarios

Mesa City staff on Nov. 6 outlined a proposed water and wastewater capacity fee and a linked set of utility rate adjustments, saying the fee is intended to raise about $400,000,000 over a roughly ten‑year horizon to pay for growth‑only infrastructure identified in the city's integrated master plan. The city would introduce the ordinance Nov. 17, act to adopt Dec. 1 and — if adopted — make the fee effective Jan. 1.

Brian Mitchell, the city's Office of Management and Budget director, and Chris Hassard, the city's Water Resources director, told the council the proposal is designed so new development pays for its incremental demand rather than existing ratepayers. "It's to really raise $400,000,000 over the next decade or so," Hassard said, describing the charge as a one‑time fee tied to new meters. Staff said consultant Black & Veatch reviewed the methodology.

Staff described two ordinance modifications offered after outreach to developers: anyone who submits a completed permit application before Jan. 1 would be grandfathered (staff explained the protection applies per lot/meter), and the city…