September 2024 - Notice of Proposed Changes to Utility Rates

On Display Indefinitely

September 23, 2024 – In accordance with A.R.S. §9-511.01, public notice is given that Mayor and Council of the City of Mesa adopts this Notice of Intention to increase rates or rate components, fees and/or service charges for district cooling, electric, irrigation water, natural gas, reclaimed water, solid waste, wastewater, and water.

A public hearing on the proposed adjustments will be held as part of the City Council’s regular meeting on December 2, 2024 at 5:45 pm from the Mesa City Council Chambers located at 57 East 1st Street. The meeting location may be changed to the following address in the event the City’s new City Hall and Council Chambers are completed and available for use: 20 East Main Street.

The public may attend and participate in person, electronically, and telephonically.

In Person: Blue speaker/comment cards are available should be filled out and given to the City Clerk. You have the choice to either have your comments read aloud or to speak on the matter. If you choose to speak, your name will be called, and you will be asked to come forward to speak at the lectern.

Telephone: Call 888-788-0099 or 877-853-5247 (toll free) using meeting ID 825 0808 5605 and follow the prompts. To provide a written comment to be read aloud or to speak, submit an online comment card at least one hour prior to the meeting. To speak, you will be prompted to unmute your line to provide comment when the item you have indicated you want to speak on is before the City Council.

Electronic: The live meeting may be watched on local cable Mesa Channel 11, online at www.Mesa11.com/live or https://www.facebook.com/CityofMesa. There is no electronic support for real-time oral comments, but you may provide a written comment to be read aloud by submitting an online comment card at least one hour prior to the start of the meeting.

Reports and data supporting the revised rate schedules for district cooling, electric, irrigation water, natural gas, reclaimed water, solid waste, wastewater, and water will be available for review in the Office of the City Clerk, 20 E. Main Street, Suite 150, Mesa, Arizona, by September 23, 2024.

Electric Utility – Proposed Rate Changes for February 1, 2025

Rates for electric service are comprised of three major components: System Service Charge with a flat monthly rate, Energy Usage Charge based on units of consumption, and the Electric Energy Cost Adjustment Factor (EECAF) which passes the cost of the purchase of the electric commodity to the customer.

Residential Rates
System Service Charge - Summer & Winter: increase $2.75

Usage Charge – Winter Tier 2: increase 39%

Non‐Residential Rates
System Service Charge – Summer & Winter: increase $5.00

Usage Charge - Winter Tier 2: increase 2%

Usage Charge - Summer Tier 2: increase 6%

Natural Gas Utility - Proposed Rate Changes for February 1, 2025

Rates for natural gas service are comprised of three components: System Service Charge with a flat monthly rate, Usage Charge based on units of consumption, and the Purchased Natural Gas Cost Adjustment Factor (PNGCAF) which passes the cost of the purchase of the natural gas commodity to the customer. Those customers that reside in the Magma service area also have a Magma adjustment factor rate component. The adjustment factor benchmarks the City’s rates to the rates of Southwest Gas to ensure market equity.

Residential Rates
Usage Charge - Summer & Winter Tier 1: increase 6%

Usage Charge - Summer Tier 2: increase 15%

Usage Charge - Winter Tier 2: increase 15%

Non‐Residential Rates
System Service Charge - Summer & Winter: increase $3.00

Usage Charge - Summer & Winter Tier 1: increase 9%

Usage Charge - Summer & Winter Tier 2: increase 25%

Solid Waste Utility – Proposed Rate Changes for February 1, 2025

Solid waste services are charged flat monthly rates for the various services provided.

Residential Barrel Rates

  • Increase 90‐gallon trash barrel by $1.73, from $31.44 TO $33.17
  • Increase 60‐gallon trash barrel by $1.54, from $28.06 to $29.60
  • Increase additional trash barrel by $0.82, from $14.84 to $15.66
  • Increase green barrel by $0.41, from $7.43 to $7.84

Commercial Front‐Load Trash

  • Increasing base rates for all size bins by 6% on average
  • Increase out‐of‐zone fee by $3.00, from $25.00 to $28.00
  • Decrease multi‐day discount by 5 percentage points, from 10% to 5%

Commercial Front‐Load Cardboard
Increasing the commercial cardboard base rates

  • Increase 2-yard base rate for cardboard from $67.75 to $74.52
  • Increase 3‐yard base rate for cardboard from $73.64 to $80.99
  • Increase 4‐yard base rate for cardboard from $79.53 to $87.47
  • Increase 6‐yard base rate for cardboard from $97.38 to $102.25
  • Increase 8‐yard base rate for cardboard from $114.81 to $120.55

Commercial Front‐Load Bin
Increasing the commercial compactor base rates

  • Increase 2‐yard from $84.00 to $89.00
  • Increase 3‐yard from $92.00 to $97.00
  • Increase 4‐yard from $100.00 to $105.00
  • Increase 6‐yard from $114.80 to $122.22
  • Increase 8‐yard from $130.35 to $139.69

Commercial Roll‐Off
Increasing the Commercial Roll‐Off fees

  • Increase haul fee by $2.00, from $133.00 to $135.00
  • Increase haul fee by $16.65, from $126.60 to $143.25
  • Increase trash per ton charge by $5.55, from $42.20 to $47.75
  • Increase fee for weight above the limit by $7.51, from $47.40 to $54.91

Commercial Recycling Barrel
Add a new fee for commercial blue barrel service

  • Set new rate at $10.00 per barrel

Water Utility - Proposed Rate Changes for February 1, 2025

Rates for water service are comprised of two components: Service Charge, with a flat monthly rate based on the water meter size and usage charge, based on units of water consumption.

Residential Customers
Increase System Service Charge rates by 4.0%

Increase Tier usage rates by:

  • Tier 1: increase 6.0%
  • Tier 2: increase 7.0%
  • Tier 3: increase 8.0%
  • Tier 4: increase 9.0%

Non‐Residential Customers

Increase System Service Charge by 5.5%

Increase General Commercial Usage rates by 8.5%

Increase General Other Non‐Residential Usage rates by 10.0%

Increase the General Non‐Residential Excess Usage Charge by 10.0%

Increase Landscape Non‐Residential Usage and Excess Usage Charge rates by 10.0%

Increase Large Commercial & Industrial Usage rates by 19.5%

Wastewater Utility - Proposed Rate Changes for February 1, 2025

Rates for residential wastewater service are comprised of two components: Service Charge with a flat monthly rate, and Usage Charge based on wastewater demand volume. Wastewater volume is calculated for each customer based on 90% of the average monthly water use for the three lowest water usage months from December through March (also known as the “winter water monthly average”). This approximates indoor household usage and the resulting demand on the wastewater system. A City‐wide winter water monthly average is used for new customers until an individual customer average can be determined.

Residential Rates
Across Residential customer classes, wastewater rates will increase 7.5% for the service charge and the usage charge.

Non‐Residential Rates
Across Non‐Residential customer classes, wastewater rates will increase 8.5% for the service charge and the usage charge.

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