Gilbert Council to consider rate hike to tackle aging wastewater infrastructure 

By Tom Blodgett
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The town of Gilbert will consider a sewer rate increase as high as $29 a month to address urgent wastewater infrastructure needs.  

A discussion of such increases came at the town’s annual retreat of council members and senior staff Nov. 20 at the Southeast Regional Library. It came after Assistant Public Works Director Eric Braun presented the challenges posed by the town’s aging systems and proposed solutions to maintain Gilbert's growth and quality of life.  

Four rate adjustment options were presented, including increases ranging from 30% to 95%, aimed at raising funds for a $230 million, five-year infrastructure plan. Council members gave direction narrowing the choices to two, which the members will consider at their regular meeting Dec. 3 for a possible approval of a “notice of intent to increase rates.” 

The two choices are cash-funding the plan through a steep rate increase or a phased approach to rate increases that would also include bond funding and thus ultimately cost more. 

Proactive investments to avoid catastrophic failures 

Gilbert's wastewater system, which Braun called a critical foundation for economic and residential stability, is showing its age.  

The presentation showed corroded pipelines, some located under major roadways like the 202 Freeway, that pose threats of catastrophic sinkholes and sewer overflows.  

Braun emphasized the necessity of proactive inspections and upgrades to mitigate these risks. 

Recent inspections revealed alarming damage in ductile iron pipelines, a material now considered outdated.  

Braun showed video from an inspection last week that showed holes in a sewer pipeline near San Tan Village shopping center, which would have caused such a catastrophic failure had the pipe not been encased in a steel sleeve that lives would have been at risk. 

While emergency repairs prevented disasters, the high costs underscored the importance of preemptive maintenance, Braun said.  

The plan includes replacing vulnerable pipelines with durable materials and upgrading manholes and lift stations to extend the system's lifespan. 

Financial challenges and rate increase options 

Inflation and rising construction costs have severely eroded the purchasing power of existing rate revenues, Braun said.  

Gilbert has historically kept rates lower than inflation, leaving a funding gap. The proposed rate increases aim to close this gap and fund vital projects, he said. 

The four options presented include: 

• Alternative A: A 55% increase with partial bond funding. Residential bills would increase $17 a month to $50, and the projects would be partly funded by $110 million in bonds. 

• Alternative B: A 95% increase to fully cash-fund projects, eliminating debt. Bills would increase $29 to $62 a month. 

• Alternative C: A 30% increase with heavy reliance on bond financing. Bills would increase $8 to $41 per month, and the projects would be partly funded by $150 million in bonds. 

• Alternative D: A phased approach, starting with a 25% increase followed by 18%. Bills would increase $8 to $41 per month in 2025 and another $6 per month to $47 in 2026, and the projects would be partly funded by $110 million in bonds. 

 The town’s Public Works Advisory Board, which was formed last year to consider and address the services offered by the Public Works Department and the infrastructure that support these services, recommended Alternative B.  

Chairman Sam Elliott said the board’s choice was because of that alternative’s long-term financial responsibility and avoidance of debt burdens for future generations. 

While council members expressed reluctance to put forward another rate increase, they mostly agreed with the board on not taking on more debt to do it and extending the pain to future generations. 

Councilmember Jim Torgeson said the choices are like being between “a headshot and a heart shot,” making this a miserable transaction to do. 

“The fiscally most conservative thing is the most expensive one in the beginning,” he said. “That's the smart move.” 

Other members mostly agreed, though Mayor Brigette Peterson and Councilmember Bobbi Buchli expressed the most reluctance about the rate increases. But Peterson said anything with a bond on it was a non-starter for her. 

Critical projects

The $230 million plan addresses critical areas, including: 

• Pipeline rehabilitation: Replacing corroded pipes to prevent emergencies; 

• Odor and corrosion control: Enhancing systems to improve quality of life and infrastructure longevity; 

• Treatment plant reinvestment: Repairing and maintaining processes and equipment at Gilbert's water reclamation facilities to keep them in good working condition;
• Reclaimed water system improvements: Bolstering the resilience of Gilbert’s “purple pipe” network, which supplies reclaimed water for irrigation and aquifer recharge. 

The town’s presentation also briefly covered reclaimed water fees. Braun said reclaimed water rates, while seeming insignificant, such as going from 54 cents per 1,000 gallons to 99 cents, can have a large financial impact on the large users like HOAs and golf courses that can use millions of gallons per month.  

The council also will consider increasing the reclaimed water rates as part of the overall changes to the sewer/wastewater rates. 

Community engagement and next steps 

If enacted, the council would adopt a new rate structure by February, with implementation starting in April 2024. The town plans to host a utility open house in January to inform residents about the changes and address concerns. 

While the rate increases are substantial, Braun stressed their necessity to sustain Gilbert’s infrastructure and prevent costly failures.  

“Without continued investment and maintenance of this infrastructure, it will fail,” Braun said. “Whether it fails tomorrow or in a year or in 10 years, it will fail. And that is something that we really can't afford because it's the foundation that the strong economy and the prosperous community are built on.” 

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).