Gilbert council approves wastewater fee increase, chooses cash-funding plan

By Tom Blodgett
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Gilbert Town Council approved an increase in the town’s wastewater and reclaimed water rates Tuesday, selecting an all-cash funding approach to finance a five-year, $230 million plan aimed at rehabilitating and replacing aging sewer infrastructure.

The decision, made during a public hearing, follows months of community outreach and deliberation on how best to address the town’s wastewater system needs.

The council faced two choices: an all-cash option that immediately increases rates but avoids long-term debt or a phased-in increase using a combination of cash and $110 million in bond funding, which would have spread the cost over 20 years with an estimated $72 million in interest.

After extensive discussion, council voted 6-1 in favor of the cash-only plan, emphasizing the long-term financial benefits of avoiding debt accumulation. Councilmember Jim Torgeson voted in dissent.

Urgent infrastructure repairs

Town officials stressed the necessity of immediate investment in sewer infrastructure, citing examples of failing pipelines.

The town has identified numerous issues with its wastewater infrastructure, many of which stem from aging pipes installed between 1990 and 2010.

“Under a normal life cycle, this infrastructure would be middle-aged, but like all of us, infrastructure doesn’t age evenly and some of our midlife components have reached the end of their lives,” Assistant Public Works Director Eric Braun said.

Emergency repairs, such as those made to failing pipes under major roadways, have proven to be disruptive and expensive. In response, Gilbert has developed a proactive plan that includes rehabilitation where possible and full replacement when necessary.

Community feedback

Prior to making a decision, the town conducted an extensive public outreach campaign, including in-person and virtual open houses, utility bill notices, media outreach, and social media engagement. A survey sent to residents received more than 600 responses, with a strong majority favoring the bond/cash mix option.

One concern frequently voiced by residents was the affordability of the rate increase. The council acknowledged this but emphasized the financial risk of delaying repairs or incurring interest on borrowed funds.

“We also know that failing to make the necessary investments into our sewer infrastructure will absolutely result in exponentially higher costs to our residents, not even in the far-off future, but in the near term as well,” Braun said.

Some residents questioned why past councils had not planned for these repairs earlier or implemented incremental rate increases to avoid a large hike now.

“It’s true that wastewater rates were flat for many years in the past and it’s a partial cause for these large corrective actions lately,” Braun said.

However, he also pointed to factors beyond the town’s control, such as supply shortages and rising construction costs, which have driven up the price of infrastructure projects nationwide.

Avoiding debt 

The primary reason council members supported the all-cash option was to avoid the significant cost of interest payments associated with bond financing.

“So just like paying interest on your mortgage means less money going toward the principal balance, this means that money would not go towards the projects but rather towards interest payments for the next 20 years,” Braun said.

Vice Mayor Bobbi Buchli echoed this sentiment, arguing that the fiscally responsible choice was to fund the repairs outright rather than passing on debt to future residents.

“To think that we are going to approve something or vote on something that will cause not just the town of Gilbert but the residents to be paying for 20 years on something that if we use a cash bond... it just doesn’t make sense to do that,” she said.

Some council members acknowledged the difficulty of approving an immediate rate increase but maintained that it was the best long-term solution.

“It’s not a popular decision, but for me, it’s a decision that has to be made for the good of the town,” Councilmember Chuck Bongiovanni said.

Impact on residents

Under the new rate structure, residents will see an increase of $29.26 per month, bringing the total wastewater charge to approximately $62 per month. This increase will take effect on bills received in April.

In comparison, the phased-in bond option would have initially raised rates by only $8.73 per month, with an additional increase of $5.52 the following year.

However, town officials warned that the bond option would have likely resulted in further increases down the line, as the town would have needed additional funding beyond the five-year window.

“It is highly likely — highly, highly likely — that the rate will have to be increased beyond what you see here in order to just pay for the sixth year of the plan,” Braun said.

The town expects to receive a $13.8 million federal grant for wastewater improvements. While the grant was not factored into the rate decision due to uncertainty over federal funding, officials noted that it could lead to a future rate reduction.

Town Manager Patrick Banger told council the town “automatically” will consider rate changes every two years, so the grant would factor into that next decision.

'Impossible to feel good'

Many residents expressed frustration over the increase, with some arguing that the town should have planned better to prevent such a significant hike. Others pointed out that nearly every utility cost has risen in recent years, making this increase particularly difficult to absorb.

“I don’t think the cost should be taken upon the people of Gilbert,” resident Scott Huffman said during public comment, urging the town to explore cost-cutting measures.

Another resident, Lisa Alopogianis, called the increase “too big of an ask” and suggested that the town could have avoided the crisis with better long-term planning.

Council members acknowledged these concerns but ultimately stood by their decision.

“No one feels good about it,” Torgeson said. “It’s impossible to feel good about it. But the problem still has to be decided between cash or phased financing. Throwing blame is not going to help.”

The town also plans to expand its utility assistance program to help residents facing financial hardship.

While the decision was not without controversy, officials emphasized that investing in the town’s infrastructure now will prevent even greater costs and service disruptions in the future.

“Time is the ultimate winner,” Braun said. “It never loses. So all of our infrastructure in the Valley is aging, and those repair costs are coming due.”

We would like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org. Tom Blodgett can be reached by email at tblodgett@iniusa.org or follow him @sp_blodgett on X.

Tom Blodgett
Senior News Editor | Gilbert

tblodgett@iniusa.org

Meet Tom
Tom Blodgett joined Independent Newsmedia, Inc., USA, in 2022, when the company acquired Community Impact Newspaper's Phoenix-area properties. Raised in Arizona, he has spent more than 35 years in journalism in the state.

Community: He has served as an instructional professional in the Walter Cronkite School of Journalism and Mass Communication since 2005, and is editorial adviser to The State Press, the university's independent student media outlet. He also is director of operations for an 18U girls fastpitch softball team from Gilbert.

Education: Arizona State University with a BS in Journalism. 

Random Fact: He lived in Belgium during his freshman year of high school.  

Hobbies: Tweeting enthusiastically about ASU softball (season-ticket holder) and grumpily about other local sports (pessimistic fan).