The Fountain Hills Sanitary District has released its proposed budget plan for the 2023/2024 Fiscal Year, which is highlighted by a plan to increase user fees for residential customers.

The current $30 per month fee for residential users is proposed to increase to $33 per month for each living unit. These user fees are billed quarterly. The residential fees include single family homes, duplexes, condominiums, townhouses, apartments and other multi-family housing units.

The fee proposal for hotel, motel and bed and breakfast units is $12.75 per unit, an increase of $1. Assisted living, independent living and similar facilities are the same, $12.75. These are also billed quarterly.

Sanitary District Manager Dana Trompke said increases are deemed necessary to meet rising costs.

“In order to cover a 9.6% increase in operating expenses, there is a proposed increase in the monthly sewer user fee, for both residential and commercial properties,” she said. “The Sanitary District is a non-profit governmental agency and therefore all of the increased expenses must be passed along to the sewer users.

“The Fountain Hills Sanitary District is dedicated to maintaining sanitary conditions and the public health of our local community,” Trompke said in a statement to The Times. “The District continues to safely operate through some challenging economic conditions, including record breaking inflation rates and unprecedented supply chain delays in the equipment needed for efficient sewer collection and treatment.”

She said they are experiencing 30% increases in fuel and chemical costs as well as increased costs in nearly every aspect of operations.

“There is a 43% increase of permitting fees and operating licenses from the State Environmental Quality Department,” Trompke said. “We are also experiencing up to 25% increases in construction projects, which reflect both the local labor market and the cost of delays in ordering electrical equipment or motors.

“The labor market continues to be challenging in the Phoenix metro area. Increased personnel expenses are needed to retain and attract the quality, licensed operators necessary for 24/7 safe operations.”

Trompke also cited recent construction activity in the community as a factor in increased costs. She said new housing construction increases the amount of raw sewage generated, which in turn requires more chemicals, more energy, more equipment and more manhours to collect, treat and recycle.

“The District cannot cut corners by using less chlorine and chemicals to treat the wastewater to mandated environmental standards,” she said. “While the District strives to be efficient and cost-effective, we can’t use less fuel or power to operate the necessary equipment to flush sewers and treat raw sewage, maintaining sanitary conditions and eliminating odors.

“Our customers have come to expect a high level of service from the Sanitary District, by responding to odor complaints and sewage back-ups as quickly as possible. District staff works very hard to maintain the customer-first, responsive reputation we have in our community.”

The total budget proposed for the upcoming fiscal year for the Sanitary District is $15,812,150 for operations and facilities improvement. That total includes $1,750,000 in projects that have rolled over from the prior year due to delays beyond the District’s control. There is also a budget line item for a $3,834,410 contingency, which is separate from the $15.8 million total. Contingency funds must be identified in the budget in the event they are needed for unplanned major events, such as infrastructure or equipment failures, according to Trompke.

The Sanitary District Board of Directors will hold a public hearing on Thursday, May 18, at 4:30 p.m., in the board room at the district office, 16941 E. Pepperwood Circle, Fountain Hills. The session is for discussion and approval of the proposed budget and fee schedule. The new fiscal year begins July 1, 2023.