Gilbert council to weigh rate increases after deep review  

By Tom Blodgett
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Gilbert Town Council will consider a formal notice of intent next week to raise utility rates after months of work by staff, the Public Works Advisory Board and the Town Council to understand pressures on the town’s solid-waste and water systems.  

The proposal going to the council Dec. 16 outlines a 2% increase for residential solid-waste customers, a targeted 20% increase in commercial solid-waste revenue, and a water-rate adjustment for April 2026. 

Staff told council during its annual retreat that the upcoming notice of intent sets only the maximum potential rates. The formal decision will come at a public hearing in February, following community outreach in January. 

For residential solid-waste customers, the proposed 2% increase amounts to 55 cents per month for a standard 90-gallon trash and recycling cart. 

Commercial solid-waste customers would see increases scaled to their level of service. 

Water-rate options will be presented with detailed scenarios, including debt impacts, long-term capital obligations and affordability considerations.  

The proposal discussed at the retreat maintains the town’s policy that water revenues fund only water operations, not general government services. 

Building recommendations 

Public Works staff and consultants built their recommendations around sharply rising costs in both utilities.  

The Public Works Advisory Board reviewed the solid-waste plan and multiple water-rate options, ranking scenarios by short-term customer impact, fund health, infrastructure needs and long-term affordability. The board ultimately recommended one primary option and supported a second for council consideration. 

Members evaluated five water-rate structures, including high-debt, low-debt and phased-in models. They weighed inflation’s effect on construction and chemicals, uncertainty in the national electrical-equipment supply chain, and the town’s escalating cost for Colorado River supplies. 

“We've been tracking these increases and have seen 73% increase in cost of the CAP raw water since 2020, which translates to an additional three and a half million dollars of cost that rate payers have to pay for the same amount of water,” Water Manager Rebecca Hamel said. 

The board also examined infrastructure demands such as the North Water Treatment Plant expansion and the town’s well-drilling program. Some wells are producing water that requires added treatment, raising program costs.  

Staff emphasized long-term planning: more than 139 miles of aging asbestos-cement pipe will need replacement over the next decade. 

Solid Waste and Recycling Manager Isaias Garcia Romero told council at the retreat that rapidly escalating vehicle costs, maintenance pressures from an aging fleet and higher landfill fees are driving the need for increases. 

Garcia Romero noted the cost of a side loader is now more than $525,000 and has risen 87% since 2020 and 27% since the town’s last rate cycle. 

A backlog in the replacement schedule has pushed one-third of the fleet beyond its intended seven-year lifecycle and the average cost per vehicle spent on repair and maintenance is $136,000, Garcia Romero said. 

Landfill tipping fees, which make up the bulk of the town’s disposal costs, have also surged 45% in the past two years. 

The commercial solid-waste enterprise fund faces deeper gaps. Staff said an overall 20% revenue increase is required to stay above minimum fund-balance thresholds. Individual line-item increases would vary by service level, ranging from 13% to roughly 25%. 

Council members’ questions 

Council members pressed staff for clarity on costs, efficiencies and what alternatives residents may ask about once the notice moves forward. 

Several members questioned whether the town should explore retrofitting solid-waste vehicles rather than replacing them on a seven-year cycle.  

Staff responded that previous refurbishments added limited life at high cost.  

“It extended the life three to four years,” Garcia Romero said. 

Others asked about emerging technologies such as electric refuse trucks. Staff said they continue to monitor pilot programs in Tucson and Scottsdale but that current models cannot meet Gilbert’s service needs. 

Council members also raised questions about the commercial solid-waste market and whether issuing an RFP could help validate the town’s pricing.  

“It would be a way to frame it,” Councilmember Monte Lyons said. “We’re raising rates on every level of service we got, and this is just another one coming in, and I know it needs to get done. I get that. But at the same time, I think that community needs to understand we're doing our due diligence and seeing what options out there are available.” 

 On the water side, council members focused on long-term supply concerns — particularly the rising cost of Colorado River shortages, reclaimed-water recovery and the town’s sizeable investment in resiliency projects.  

“It is a monumental task,” Lyons said. 

The council also asked for more detail at the Dec. 16 study session on how much bulk trash contributes to residential rates and what role high per-capita trash generation plays. 

 “Gilbert creates more trash than most other communities,” Budget Director Kelly Pfost said. 

Council will vote Dec. 16 on whether to approve the notice of intent. That action begins the legally required process for adopting new rates but does not lock in final amounts.  

That meeting will be at 6:30 p.m. at Gilbert Town Hall, 50 E. Civic Center Drive, Gilbert. 

The final vote is scheduled for Feb. 17. 

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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).