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Goodyear adopts four‑year utility rate plan; council approves phased increases 5–2

December 26, 2025 | Goodyear, Maricopa County, Arizona


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Goodyear adopts four‑year utility rate plan; council approves phased increases 5–2
Goodyear City Council voted 5–2 on Dec. 15 to adopt a four‑year utility rate plan for water, wastewater and solid waste, approving resolution 2025‑2499 and setting the new rates to take effect in February 2026. The plan phases increases over four years so the average residential customer will pay about $8.50 more per month next year, staff said.

Deputy City Manager Kenny Knudson and Finance Manager Ryan Biddle told the council the recommendation follows months of study, a citizen water advisory committee and third‑party consulting work. "The total impact of the 3 proposed rate increases comes up to $8.50 a month more next year for the average residential Goodyear customer," Biddle said during the presentation.

Water Services Director Barb Chappell explained the primary cost drivers behind the proposal: Goodyear’s reliance on Colorado River (CAP) water that is more expensive than some alternatives; treatment needs for poorer‑quality groundwater that require energy‑intensive reverse osmosis and other processes; sharp increases in chemical and construction costs; and higher electricity bills. "We are not running out of water," Chappell said, "This rate is strictly based on the cost of service to provide safe, reliable drinking water to our residents and collect and treat the sewage that we get back."

Council discussion centered on tradeoffs between protecting affordability and avoiding deferred maintenance or system failures. Councilwoman Gillis said she could not support the package and stated, "Therefore, I will be voting no on this issue." Council member Terry, who supported the plan, said he would vote in favor and explained the phased approach was more manageable for residents: "I will be voting for this rate plan." Several council members pressed staff on specific items including:

- Data centers and large commercial users: staff said Goodyear has six data centers citywide, five of which are in the city water service area, and that the five combined account for roughly 3.6% of annual system demand. Biddle and Chappell said water‑cooled data centers with larger demand typically pay special negotiated rates under development agreements. A public commenter had noted a large data center can have water demand comparable to thousands of homes.

- Stormwater funding and impact fees: council directed that a proposed new stormwater fee not be included in this action; city staff said stormwater currently is funded from the general fund at about $3,000,000 a year. The city attorney clarified that impact fees may be used only for capital improvements tied to new development, not for operations.

- Regulatory and capital obligations: Chappell warned the council the city must begin planning to treat contaminants including PFAS under forthcoming federal requirements and that without sufficient revenue the city could risk deferred rehabilitation of wells and treatment facilities.

After the debate, the motion to adopt resolution 2025‑2499 carried 5–2. The resolution adopts the proposed four‑year water, wastewater and solid‑waste rate structures with rates effective February 2026; the council did not adopt a separate stormwater fee as part of this action.

The record shows a multi‑month process with a citizen advisory committee that recommended a package by a 4–2 vote on Sept. 10; staff said the full rate study and supporting materials are on the city website. Next steps identified by staff include public notifications and implementing billing changes ahead of the February 2026 effective date.

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Scribe from Workplace AI
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