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Gilbert Town Council to vote on notice of intent to raise water rates up to 25% next year

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GILBERT, AZ — Gilbert residents could be looking at their third consecutive year of rate increases, with the town council set to vote next week on whether to move forward with a potential hike.

Gilbert staff said they will bring a notice of intent to raise water rates to the Gilbert Town Council on Tuesday, December 16. This is a procedural step that would kick off the formal process for another rate hike.

The council is considering two options: The first would raise rates by 25% next year with no increase for 2027, or a more gradual approach, with 14% increases next year and in 2027.

If the council approves the notice on December 16, the town will hold a public hearing and vote on February 17. The new rates would take effect on April 1.

Gilbert staff say the increases are vital to reduce reliance on Colorado River Water, which currently makes up about 41% of Gilbert’s water supply. The community is investing in eight new wells and multimillion-dollar upgrades to its North Water Treatment Plant.

“This has been a really difficult conversation with the community,” Rebecca Hamel, Gilbert’s water manager, told the council during a retreat on Tuesday. “We don’t want to do rate increases. We are doing them because we have to.”

The proposed increase comes as some residents complain they are paying three times more for water than they did just a few years ago. Gilbert increased water rates by 25% earlier this year on top of a 48% increase last year.

Some residents have even asked the Arizona Attorney General’s Office to investigate.

The rate hikes are particularly concerning for small farmers in Gilbert, who say their livelihood is threatened by the steep increases. Town staff on Tuesday said they will be researching potential options to help small farmers in the next few months, but any changes to the current rate structure would need council approval.

Gilbert staff on Tuesday showed estimates of how the proposed 25% increase for next year would impact residential customers:

  • Lower users of 5,000 gallons a month would see increases of $13 to $166 a month.
  • Average users of 10,000 gallons a month would see their bills increase $17 to $186 a month.
  • Above-average users of 20,000 gallons a month would see their bills go up $26 to $231 a month.
  • High users of 30,000 gallons a month would see bills increase $40 a month to $301 a month.
  • Very high users of 50,000 gallons a month would see their costs rise $84 to $526 a month. 

Upcoming council meeting dates:

  • Dec. 16: Vote on notice of intent to raise rates.
  • Feb. 17: Public hearing on rates and council vote.
  • April 1: New rates take effect. 

Email ABC15 Investigator Anne Ryman at anne.ryman@abc15.com, call her at 602-685-6345, or connect on X.