Chandler tentatively adopts 9% water-rate rise
Chandler Municipal Utilities Department, Arizona · Meeting date: October 15, 2026 · Published: October 16, 2026
Chandler has moved to raise water and reclaimed-water revenues by 9% and wastewater revenue by 6.5% from January 2027. The city says the increases are needed for debt service, asset renewal and higher power and chemical costs.
Key points
- Ordinance No. 5181 was introduced and tentatively adopted on October 15; the motion carried with Councilmember Orlando voting no.
- The rate plan seeks approximately $5.696 million in additional water revenue, $3.586 million from wastewater and $222,000 from reclaimed water.
- Inside-city reclaimed-water charges will rise from $0.94 to $1.02 per 1,000 gallons; outside-city charges will rise from $1.32 to $1.44.
- Staff cited major water-facility debt service, wastewater-facility improvements and expansions, ageing-infrastructure replacement, and higher power and chemical costs.
- Public speakers challenged the equal percentage increases across customer classes and raised affordability concerns for lower-income residents.
Full report
Chandler City Council has tentatively adopted increases to water, wastewater and reclaimed-water rates from January 4, 2027, advancing a utility revenue package intended to fund capital commitments and operating-cost escalation.
Ordinance No. 5181 passed after a public hearing on October 15. The motion carried, with Councilmember Orlando voting no. The ordinance amends the city code’s water, reclaimed-water and wastewater rate schedules.
The city’s financial plan calls for a 9% overall water-utility revenue increase, expected to generate about $5.696 million in FY2026-27. Staff said the adjustment is needed for additional debt-service costs associated with major water-facility improvement projects, planned replacement of ageing infrastructure, and higher operating costs, particularly power and chemicals.
Wastewater revenue is set to rise by 6.5%, generating an estimated $3.586 million. Chandler cited debt service for facility improvements and expansions, planned asset replacement, and increases in power and chemical costs. The plan maintains the outside-city wastewater differential at 1.6 times inside-city rates.
Reclaimed-water revenue will increase 9%, producing about $222,000. The inside-city reclaimed-water charge will rise from $0.94 to $1.02 per 1,000 gallons for metered users, while the outside-city rate will increase from $1.32 to $1.44 per 1,000 gallons. Outside-city water and reclaimed-water rates will continue to be calculated at 1.4 times inside-city rates.
Among the revised inside-city charges, the monthly base charge for a 5/8-inch water meter will increase from $11.18 to $12.19. Single-family volumetric charges will rise from $1.91 to $2.08 per 1,000 gallons for the first 10,000 gallons, and from $3.90 to $4.25 per 1,000 gallons above 60,000 gallons. The monthly wastewater fee for a single-family dwelling will increase from $31.80 to $33.87.
Public comments focused on the effect of uniform percentage increases on households and large users. High-school student Kathy Jiang opposed the increases, arguing that the council should act before utility costs become unaffordable for more households. Chandler resident Ed Contreras questioned why high-volume users would face the same percentage increase as smaller residential customers.
The rate package follows annual financial-model reviews required under Chandler’s financial policies. The city said it will now review and update utility rates annually rather than every other year; the previous adjustment took effect on March 2, 2026.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council Regular Meeting, Chandler Municipal Utilities Department