Gilbert council adopts 25% water rate increase for 2026; approves solid-waste rate hikes

The Gilbert Town Council voted Wednesday to raise water rates by 25% in April 2026, approving Resolution 4637 following a multi‑hour staff presentation and public hearing. The motion to adopt Option A passed 4–3, with dissenting councilmembers favoring a phased approach of 14% in 2026 and 14% in 2027.

Water Manager Rebecca Hamill told the council the increase responds to three “main areas creating financial strain”: rising water‑resource costs driven by Colorado River supply reductions, major infrastructure needs such as the North Water Treatment Plant and a well‑drilling program, and higher operating costs for chemicals, power and labor. She said the town’s water portfolio is diversified but that “water is costing more everywhere” and that costs for Colorado River (CAP) water have climbed significantly since 2020.

Hamill said the town considered multiple rate options after the Public Works Advisory Board reviewed the alternatives and recommended Option A. Under Option A, a 25% increase would take effect April 2026; under the previously proposed Option E, the increase would have been split as 14% in 2026 and 14% in 2027. Hamill stressed the purpose is to preserve the water fund’s operating and repair capacity and to avoid issuing as much new debt.

The council’s discussion focused on timing and burden. Councilmembers who supported Option A argued the approach addresses the funding gap now and avoids larger long‑term costs, while supporters of the phased approach said two uncertainties — ongoing meter audits and potential federal cuts to Colorado River deliveries — counsel caution. Vice Mayor Chuck Bongiovanni said the choice was “about timing,” noting the compounding effect of the phased option would cost residents more overall.

Residents packed the public hearing to voice strong views. Daryl Grosson told the council he had reviewed town records and accused the town of using $70 million in transfers from the general fund to cover system development fee shortfalls; he asked the council to pause rate increases pending a full accounting. Budget staff answered that prior councils had directed one‑time general‑fund transfers to cover statutory holes in system development fee collections and that those transfers are included in the adopted budget documents. The town explained system development fees are strictly regulated and held in a separate, interest‑bearing fund under state statute.

The council also adopted two related resolutions affecting waste services. Resolution 4638 increased residential solid‑waste and recycling rates (vote 6–1) and Resolution 4639 increased commercial solid‑waste and recycling rates (vote 6–1). Solid‑waste staff had recommended a small residential increase of about 2% (roughly $0.55 per month on a standard 90‑gallon service) and larger, structured increases for commercial customers to align with private‑market rates and rising disposal costs.

Staff noted the solid‑waste fund faces higher refuse‑truck replacement costs, increased maintenance on an aging fleet and sharply higher landfill tipping fees; recycling market volatility remains a partial offset in years when commodity rebates occur.

What happens next: The water increase will be implemented on bills starting in April 2026 and the town will continue outreach and monitoring of meter audits, conservation programs and potential Colorado River developments that could affect future supply and cost assumptions. Councilmembers also asked staff to report back on utility assistance and timing options for future rate adjustments.

Votes at a glance - Resolution 4637 (water rates, Option A — 25% increase in April 2026): Adopted 4–3. - Resolution 4638 (residential solid waste & recycling rates): Adopted 6–1. - Resolution 4639 (commercial solid waste & recycling rates): Adopted 6–1.

Key quotes “Water is costing more everywhere and paying attention to these increases now helps us avoid even higher costs down the road,” Rebecca Hamill, Water Manager.

“We can’t bathe in popularity,” Vice Mayor Chuck Bongiovanni said, urging council to balance short‑term affordability with long‑term water reliability.

Next steps: Staff will implement the approved rate changes, continue public outreach and provide additional detail on assistance programs and the outcomes of ongoing meter audits.