Proposed Utility Rate Changes

Attachment 2 
 
 
City of Chandler’s Proposed Utility Rate Changes 
(Effective 7/1/22) 
 
The City of Chandler manages and operates Water, Wastewater, Reclaimed Water and Solid Waste utilities for 
its customers.  As you can imagine, no one likes increases in utility rates, but from time to time rate changes 
are necessary.  Chandler is currently projecting needed rate increases to fund debt service costs related to new 
and expanded Water and Wastewater facilities that serve everyone in Chandler (Ocotillo Water Reclamation 
Facility and San Tan Vista Surface Water Treatment Plant), as well as their expanded ongoing operating costs, 
which include chemicals and electricity. Other drivers are costs for capital system maintenance needed as 
infrastructure ages to ensure safe systems and increased operating costs for our solid waste utility.   
Chandler’s utility projections show revenue increases needed by July 1, 2022 (Water +2%, Wastewater +4%, 
Reclaimed Water +8% and Solid Waste +3.4%).  Most of the time, utility rate increases are implemented “Across 
the Board”.  For example, if revenue increases of 2% were needed for the water system, the rates would go up 
2% for each customer class (single family homes, multi-family units, landscape water usage, industrial, and 
other non-residential uses of water).    
This year, Chandler conducted a “Cost of Service” study to review how much it costs our Water system to provide 
the amount of water needed on a daily basis for each customer class, our Wastewater systems to handle the 
flow being returned for processing, and our solid waste system’s different service levels provided.  In other 
words, this common costing approach more accurately reflects the actual cost of providing service to each 
customer class based on their usage characteristics. Our customer classes, which include single family 
residential, multi-family residential, landscape, industrial and non-residential, each have certain peak water 
usage requirements that the City needs to be able to support through our treatment plant capacity.  The related 
systems’ costs are then distributed to each customer class through this “Cost of Service” approach. 
So, what did the study tell us?  The results of this study showed that over time, customer classes’ demands have 
changed and there are some customer classes paying more than their share of the required costs, and others 
paying less.  This misalignment between customer classes is not surprising since Chandler has continued to 
grow and has become more automated since our last “Cost of Service” study 5 years ago.  Therefore, instead 
of applying “Across the Board” rate increases to generate the needed revenue, we will incorporate the “Cost of 
Service” study results, to get each customer class back in alignment.  But, as we did not get out of alignment 
overnight, we are not going to try to adjust back overnight, instead the needed changes will transition over a 5-
year period. 
Chandler needs to generate additional revenue for each utility; therefore, the first planned rate changes would 
become effective July 1st, 2022.  Proposed rates were included in the FY 2021-22 Adopted Budget at 2% for 
Water, 8% for Wastewater, 8% for Reclaimed, and 6% for Solid Waste, however, rates have been revised after 
the COS study and rate model updates to show actual revenue needs by classification. These rates are currently 
going through the public notification and public hearing process before they become official, and this 
information is intended to help each customer plan for the utility rate impacts for their home, business, or 
homeowner association budget.

Attachment 2 
 
 
A list of the proposed rate changes and average monthly bill impacts per customer class are shown on below 
for each of the Utilities and Classifications.  
City of Chandler’s Proposed Utility Rate Changes 
(Effective 7/1/22) 
 
 
 
The impact of the rate changes for each individual customer would depend on the volume of water used, 
amount of wastewater processed each month and meter size used. 
 
Additionally, there are recommended changes from the Cost of Service Study to certain Solid Waste services. 
The proposed changes would allow for two no-cost visits to the RSWCC per year for the first 400 pounds of a 
load, any weight above 400 pounds will be charged at $50 per ton for the overage. Additional visits will be $10 
per visit for the first 400 pounds, and then $50/ton if over 400 pounds.  
 
Dropping off only recyclable materials or house-hold hazardous waste will remain cost-free. 
 
Curbside bulk collection scheduling will be available for up to 2 free collections per year with additional bulk 
collections costing $30. 
 
Those with alleyway collection instead of curbside collection will be charged for the additional costs associated 
with the service of $1.61 per residence per month. 
 
Detailed information on the COS Study and the full schedule of utility rate changes is available on the City’s web 
site chandleraz.gov/ProposedUtilityRates.