Utility Rate Study

District 3 Meeting November 27: Surprise Utility Rate Study Discussion

Plan to attend a District 3 meeting to learn about the proposed Utility Rate Study. The meeting will be held at 6 p.m. on Thursday, November 27, at Larry H. Miller Chrysler Jeep Dodge Ram, 13165 N. Autoshow Avenue, Surprise.

About the Rate Study

Surprise City Council was presented with the proposed Utility Rate Study during the Tuesday, November 6 Regular City Council Work Session that, if approved, would adjust city-provided solid waste utility base rates in fiscal year (FY) 2020 which begins on July 1, 2019. Water and wastewater utility rates would remain unchanged in FY 2020.

The city reviews utility base rates and creates a five-year structure schedule based on the revenues required to operate utilities and maintain infrastructure while also considering asset replacement and emergency funding needs. Economic influences such as increases in operational resources and future growth are also considered when adjusting the rates.

The last Rate Study was implemented in FY 2014.

If the Utility Rate Study is approved in February, city-serviced single-family residential solid waste customers would see one of two new base rate options presented to Council. The first is a base rate of $22.40 per month, a $5.44 per month increase. The rate schedule would also raise the solid waste rate by $0.30 each fiscal year beginning in 2020, bringing the rate to $23.60 in FY 2024.

The second option is a base rate of $20.70 that would also begin on July 1, 2019, a $3.74 per month increase; the rate would increase to $23.40 on July 1, 2020. The schedule would then increase the solid waste rate by $0.10 each fiscal year beginning in 2021, bringing the rate to $23.70 in FY 2024.

During the discussion Council reached a consensus favoring Option 2.

View the Option 1 and Option 2 rate schedule table

If the base rate increase is approved in February, this would be the first significant solid waste increase since 2010; a $0.33 rate increase did go into effect in FY 2019. There were no increases for more than 8 years between 1/1/2010 and 7/1/2018.

Residents who are serviced by private solid waste providers (Park and Sons, etc.) would not be impacted by the Surprise solid waste adjustment; learn who provides your solid waste utility services at surpriseaz.gov/mysurpriseaddress.

The proposed timeline for the Rate Study is:

  • December 4, 2018: Public ‘Notice of Intent to Increase Rates’
  • February 5, 2019: Public hearing; Council vote on Rate Study
  • July 1, 2019: If approved, new base rates effective

Follow the Rate Study and learn more information about the proposed adjustments at surpriseaz.gov/utilityratesinfo.