Council adopts 60‑day notice to change fees, including planned 3% annual water increase; members press staff on meter warranties

The council adopted a notice of intent to change certain fees — a procedural 60‑day posting under Arizona law — that would allow the city to later adopt specific fee changes. The package presented by staff includes: a 3% annual water‑rate pathway consistent with a May 2025 rate study; a 3% wastewater increase; revised development fees and a new $25 per hour charge for commercial public‑records requests; and several development‑process revisions (including a temporary outdoor‑merchant permit).

Public Works Director Nick and finance staff said the water‑rate path supports a capital plan that includes a planned water‑meter replacement project (the meter replacement project cost was described in the meeting as approximately $8.6 million over the multi‑year program). Several council members and residents questioned why prior rate increases did not decline after earlier meter purchases, and whether outstanding warranty obligations from the prior meter supplier had been fully pursued. Public Works said the city obtained about 1,800 warranty replacements but later warranty claims were disputed with the supplier and the vendor was acquired by another company; staff said some replacement activity is being done from funds on hand while a larger procurement for the remaining meter replacements is still in draft request‑for‑proposal form.

City management emphasized that today’s action is to post a notice of intent and that council will receive additional information during the 60‑day period before any final fee adoption. Several council members said they would not support a final water‑rate vote until staff provides more clarity on warranty remedies and procurement timing.

The council voted to adopt the notice of intent to change fees, beginning the 60‑day public‑notice period required before final adoption.