It’s almost official: At its March 3 meeting, Scottsdale City Council raised no objections to staff-recommended water, wastewater, garbage collection and other rate increases.
But the final step in the process remains two months away, after a May 19 public hearing – and likely adoption of the increases.
The March 3 vote was hardly a surprise, as two weeks earlier, City Council unanimously approved a “notice of intention to increase water and wastewater rates.”
According to the agenda information, “The city is proposing a 4.5% water rate increase and a 3.5% sewer rate increase for fiscal year 26/27.”
Though the average resident would pay an extra $5.21 per month starting this fall, Scottsdale’s water and sewer rates are second-best in the Valley. Only Chandler, at $71.32 per month, beats the $129.79 Scottsdale charges its average water/sewer user.
Peoria ($134.47), Tempe ($147.31), Phoenix ($154.70), Glendale ($167.84), Mesa ($169.56) and Gilbert ($180.82) all charge more for 16,000 gallons of water and 11,000 gallons of wastewater, according to Scottsdale staff information.
Council also gave nods of approval to raising residential garbage collection by 2%, from $31.78 to $32.42 monthly.
If Council continues to move forward on the administration’s request, sewer rate increases would go into effect July 1, with the water increase coming Nov. 1.
According to a memo from Sonia Andrews, Scottsdale’s treasurer, “These increases were determined by the Water Resources Department using a five-year rate model to calculate revenue requirements for upcoming water and sewer operating and capital needs.”
The rate increases, Andrews noted, “do not include funding for capital projects that do not have accurate cost projections and capital projects that are still being defined.”
More increases could be on the horizon:
“As the Water Department refines the capital projects and related needs, the water and sewer five-year financial plans and rate models will be updated,” Andrews noted.
Andrews is asking Council to approve a “notice of intention to modify rates and miscellaneous water charges” and schedule a May 19 public hearing on the proposed changes.
According to a staff report by David Walby, the city’s interim Water Resources senior director, water rate increases are required by:
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Operating cost increases for raw water to include current drought pricing, put in place by Central Arizona Project (CAP);
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Costs associated with additional water source and supply;
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Operating cost increases for electricity in the Arizona Public Service (APS) service area;
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Increasing cost for replacing and repairing aging infrastructure;
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Operating cost increases for personnel services and benefits.
Like other cities around the Valley, utility rates are trending sharply upwards, here.
In 2025, Scottsdale implemented a 4.5% water fee increase and 6% sewer fees increase.
In 2024, Scottsdale residents saw their water rates increase by 6.3% and sewer rates go up 8%.
In 2023, increases were 4.2% for water and 5.8% for sewer.
According to a presentation last year, even after the increases, Scottsdale’s rates were on the low end, compared to other Valley cities.