Chandler residents are facing another jump in their monthly utility bills, with the City Council approving a 9% increase for water and reclaimed water, a 6.5% bump for wastewater, and a 4.5% increase for solid waste services. The new rates take effect Jan. 4, 2027, pushing the average resident's bill up about $6, from $83 to $89 a month.
The council tentatively approved the rate package Oct. 15, with final adoption anticipated on Nov. 12, according to golfweek.usatoday.com. Councilmember Matt Orlando was the only member reported to have voted against the increase, per the same outlet's report. This marks the city's second rate hike within a year, following what was described as a record 15% increase for water and wastewater bills, plus an 18% jump for reclaimed water, that took effect in March.
City officials have pointed to rising costs tied to treating and delivering safe drinking water, along with the need to fund planned infrastructure upgrades. Chandler budget and policy director Matt Dunbar told KJZZ that “it's costing more to treat and provide safe drinking water, and there are planned improvement projects to pay for.” Dunbar added that despite the increase, Chandler would still have lower utility rates compared to other Valley cities.
A City That Runs Its Utilities Like a Business
According to Chandler News, the city treats its water, wastewater and solid waste programs as an enterprise fund, meaning those services must pay for themselves rather than relying on general tax revenue. That structure helps explain why rate increases have become a near-annual occurrence as the city pays down debt and funds new projects.
The outlet reported that preliminary figures for the fiscal year beginning July 1 already point to another 9% water-rate increase, with two more anticipated 9% hikes described for fiscal years 2027 and 2028. City staff have also presented council with a 10-year capital-improvement plan totaling $2.95 billion, with $1.44 billion of that earmarked for the Public Works & Utilities Department alone.
Why Rates Keep Climbing Annually
Chandler News also reported that the council last year decided to raise utility rates annually rather than face steeper double-digit jumps every couple of years, a shift that led to the 15% increase approved for the current fiscal year. The city evaluates the revenues and expenditures of each utility annually to determine whether rate increases are needed to cover rising operating and debt-service costs tied to capital improvements, according to the Signals AZ report on the proposed increases.
Even with the latest hikes, Chandler's average monthly utility bill remains lower than several neighboring cities, based on data cited by golfweek.usatoday.com. Scottsdale residents pay around $121 on average, Tempe about $130, Mesa roughly $163, and Gilbert about $179 per month, the outlet reported. Chandler's comparison uses a 10,000-gallon basis.
The City of Chandler has said the proposed rate adjustments would apply to bills issued on or after Jan. 4, 2027, if formally adopted, per the City of Chandler. The council approved the water, wastewater and reclaimed-water increases on Nov. 9.
