By Matthew Holloway |

The citizens of Gilbert are bracing for a third water rate increase since 2024 on top of the 2025 sales tax increase that resulted in legal action against the town in January 2025. The new rate increase, following a 95% increase in the town’s utility wastewater rate, could see the town’s water rate jump up another 25%.

Gilbert Water Manager Rebecca Hamill revealed in a Town Council study session last week that the rate hike could be necessary based on Gilbert’s biannual utility rate analysis and adjustments, according to the Gilbert Sun News.

As previously reported by AZ Free News, there were no utility rate increases from 2019 to 2021, until a 29.6 percent jump in 2022, followed by a 48 percent increase in 2024 and a 25 percent increase in 2025, resulting in a staggering hike of 102.4 percent over 2021 rates.

“Arizona and Gilbert are facing uncertainty in water resources and providing a secure water supply is a top priority for our department,” Hamill told the council. “One of the main impacts on the budget is these increasing water resources costs, and we have seen since 2020 a 73% increase in the per acre-foot cost of CAP (Central Arizona Project) water, and we continue to see an increase in the percentage of the water resources as a component of the overall water budget,” she added.

Hamill explained that the Town of Gilbert’s water portfolio includes 40 percent of its potable water coming from the Salt and Verde Rivers, with 41 percent coming from the Colorado River via the CAP, 15 percent coming from the reclaimed recharge system water, and just four percent coming from groundwater. She described the town’s water sources as “diverse,” despite 81 percent of it being dependent on surface water and 41 percent subject to fluctuations in Colorado River water allocation.

As noted by the Gilbert Sun News, the town is in the early stages of reconstructing the North Water Treatment Plant to supply 70 percent of the town’s needs or approximately 60 million gallons per day, but it is only nearing the halfway point of its completion in October and is not expected to come online until 2028, according to the most current project update. This leaves the Town of Gilbert effectively at the mercy of a myriad of factors beyond the town’s control for at least the next two and a half years, with the town forced to defer $151 million in future water system improvements.

“The bill is typically made up of rates and fees for four lines of service, including water, sewer, solid waste, recycling and environmental compliance,” Hamill told the outlet. “We refer to each of these four lines of service as enterprise funds, which means that each fund operates as a self-sustaining business entity within the town. Revenue collected for each service is only used to fund that service.”

The increase is part and parcel to the cash/bond gradual approach the Town approved in February 2024.

“This is where we are now – we are working with our rate consultant to determine that 25% is the proper number for the fund,” Hamill told the council. “This option provided the (water) fund with sufficient revenue for critical capital projects, ongoing $5 million capacity in the operating fund, and an ongoing $66 million capacity in the repair and replacement fund starting in FY29.”

As a result of the delays in the Water Treatment Plant reconstruction, caused in part by an increase in the cost of chemical and electrical components, coupled with its dependence on sources susceptible to environmental and political factors, the Town government is turning to the public and conservation efforts in an attempt to stem the rising costs of the water system. Mayor Scott Anderson explained, “We have to remember it costs, and it’s going to cost more over time, to purchase the water, to transport the water, to treat the water, and to distribute the water. It’s going to cost more all the time – we can’t lose sight of that,” he emphasized. “Conservation is the key.” 

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.