Gilbert Town Council members received an in-depth look at municipal utility rates, with Water Manager Rebecca Hamel outlining how rising costs, infrastructure projects and long-term planning are shaping the town’s water bills.
“It’s our water team’s top priority to provide clean, safe drinking water and uninterrupted service to all of the residents and businesses,” Hamel said at an Aug. 26 study session.
She said that when setting water rates, the town focuses on three main goals: covering operating costs, funding critical projects and planning for future repair and replacement needs.
A significant budget driver has been the increasing cost of resources.
“We’ve seen since 2020 a 73% increase in the per acre foot cost of CAP water, and we continue to see an increase in the percentage of the water resources as a component of the overall water budget,” Hamel said.
She added that inflation, supply-chain delays and chemical and electrical costs have also pressured the utility’s budget.
Among Gilbert’s top priorities is the North Water Treatment Plant reconstruction, a project expected to serve 250,000 residents for the next 50 years. Once completed, it will provide 70% of the town’s water supply and produce up to 60 million gallons per day.
Hamel noted that the project is reaching its 50% construction milestone and is expected to begin operations within the next 500 days.
The town is also drilling new wells, though four of the seven sites require added infrastructure because of water quality issues.
To balance the five-year budget, Gilbert deferred $151 million worth of pipeline replacements and connectivity projects outside the current plan.
Council members pressed Hamel on why Gilbert residents face higher water bills than those in nearby communities.
“Our water bill funds the costs required to operate the water utility and to maintain our infrastructure,” Hamel said. “And Gilbert’s takes a proactive approach towards retaining our infrastructure.”
Council members noted that part of the difference comes from Gilbert’s major investment in the North Water Treatment Plant, which Town Manager Patrick Banger called “the single largest capital project in the town’s history.”
Another part of the discussion centered on Gilbert’s history of rate adjustments. Hamel showed a “what if” scenario comparing consistent 5% annual rate increases against actual past practices, when rates went unchanged for eight years. The analysis suggested the town would have collected more revenue and ended with a lower final bill had smaller increases been implemented consistently.
“What we do know is that we’ve put off rate increases for as long as possible and continuing with the plan to increase is essential for funding the operation of the water department and paying for critical priorities in the water system,” she said.
In February 2024, council approved a “cash bond and gradual” option that included a 50% water rate increase in April 2024, a 25% increase in 2025, and a proposed 25% increase in 2026. The third year is now under review with the help of a rate consultant.
Residents have expressed frustration over steep bills, with some reporting monthly charges in the hundreds of dollars.
Hamel encouraged those struggling to seek help.
“I would advise those residents to reach out to us and utilize our water conservation programs,” she said. “Our team is more than happy to come out and do water efficiency checkups, set up a landscape budget and help them get their outdoor water use under control.”
Council members shared stories of their own and of constituents.
Councilmember Chuck Bongiovanni said he reduced his monthly bill from $850 to $250 after town staff identified leaks on his property. He emphasized the need for residents to be proactive.
“There are things that we can do rather than just get on social media and complain about our water bill,” he said, adding that homeowners should check for leaks and adjust irrigation.
The session also highlighted concerns about high-usage households. Town data showed that while most residents use fewer than 20,000 gallons a month, a small group of households consume much more.
Councilmember Monte Lyons said 12% of the town is using 40% of the water, with some homes using more than 50,000 gallons per month.
The tiered rate structure, which charges higher per-gallon costs at higher usage levels, is meant to address that. Hamel said it is designed both to keep essential water use affordable and to encourage conservation.
Homeowners associations were another topic of concern. Some councilmembers noted that residents are not only paying for water in their homes but also through HOA fees for irrigated common areas.
Hamel said her team is working with HOAs on conservation strategies.
“We’ve expanded the non-residential grass removal rebate program to have a larger financial impact and make it more appealing to HOAs to remove non-functional turf,” she said.
Gilbert also offers assistance programs for those struggling with costs. Qualifying households can receive up to $30 off their monthly bills, and 408 residents are currently enrolled.
“Even though Gilbert’s water meets the definition of affordability, we realize many customers in Gilbert are still struggling to keep up with rising costs,” Hamel said.
Next steps include continued work with consultants this fall, outreach to HOAs, public open houses and a council vote expected in February 2026 on whether to implement the next rate increase in April.
Please submit comments at yourvalley.net/letters or email them to AzOpinions@inusua.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines. Tom Blodgett can be reached by email at tblodgett@iniusa.org or follow him @sp_blodgett on X.
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).
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