Scottsdale advances notice of intention for FY27 water and wastewater rate hikes

Scottsdale advances notice of intention for FY27 water and wastewater rate hikesThe City Council approved the scheduling of a public hearing to discuss proposed increases to utility rates, keeping the item on the consent agenda after clarifying the vote was purely procedural.

The council adopted a notice of intention to increase water and wastewater rates, as well as miscellaneous water charges, for Fiscal Year 2026/27.

A public hearing for the proposed rate adjustments is officially scheduled for May 19, 2026.

The item was approved as part of the consent agenda after officials confirmed the vote was strictly to schedule the future rate conversation.

The Scottsdale City Council has taken the first administrative step toward raising municipal utility rates for the upcoming fiscal year. During its February 24, 2026 meeting, the council approved a notice of intention to increase water and wastewater rates, along with miscellaneous water charges, for Fiscal Year 2026/27. The measure, put forward with Water Resources Senior Director David Walby as the staff contact, also includes housekeeping adjustments to Chapter 49 of the City of Scottsdale Revised Code. The proposed adjustments include a 4.5% increase in water rates and a 3.5% increase in sewer rates. If approved, the hikes are projected to generate an additional $7.4 million in water revenue and $4.4 million in sewer revenue. Officials point to rising costs for chemicals, personnel, electricity, and aging infrastructure as the primary drivers, alongside elevation-related pumping costs and ongoing uncertainties regarding Colorado River water supplies. Despite these regional pressures, Scottsdale's approach is notably more gradual than some neighboring municipalities. Gilbert, for example, recently approved a 25% water rate increase to address its own infrastructure upgrades and Colorado River reliance issues. The item briefly drew attention during the meeting when a council member considered pulling it from the consent agenda for separate discussion. However, the item remained on the consent calendar after city staff clarified the limited nature of the vote. "My understanding is that it is not the actual rate conversation, but rather a vote. It is merely in order to schedule the rate conversation," a council member noted during the proceedings. City officials confirmed that the council was not taking action to enact the rate increases during the February 24 meeting, but was simply authorizing the scheduling of the future discussion. With that clarification, the council unanimously approved the notice as part of a broader consent agenda motion. The substantive debate and final vote on the proposed water and wastewater rate increases will take place during a formal public hearing, which the council has now officially scheduled for May 19, 2026.