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Tempe plans higher rates for city services
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The cost of water, sewage and trash pickup will skyrocket in the next several years in Tempe — probably by 50 percent or so in the next half-decade. The city plans to boost rates in November by 9.4 percent for the average homeowner. That comes to $5.55 a month, or $66.66 a year.
Tempe is reacting to a consultant’s study that called for boosting rates by roughly similar levels for five years. The money will pay for growth, improving aging infrastructure and additional equipment needed to meet new state and federal environmental regulations.
The total bill Tempe residents pay for these three services is currently lower than other major Valley communities, but would be higher than Chandler with the increase. Residents of several communities pay anywhere from another $10 a month to nearly $30 a month more than the proposed hike in Tempe.
The city last increased rates three years ago, ranging from 3.5 percent to 5 percent. The increases were locked in before costs spiraled because of rapidly rising gas prices or construction costs, said Don Hawkes, the city’s water utilities manager.
Things changed more rapidly than the city had planned for, he said.
“We got a little behind the curve, so this is kind of catch-up,” Hawkes said.
The city hasn’t set future increases in stone yet, Hawkes said, because it wants to review its costs annually, based on the most current pricing information. He noted steel pipe costs increased 40 percent this year, adding the city will monitor those kinds of changes more frequently to set rates accordingly.
Tempe will hold several public hearings in the following months before formally boosting fees. The fees are based only on the costs the city pays to provide those services, as Tempe is prohibited from making a profit on them.
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