Rising operational costs and debt service are driving another round of proposed rate hikes for water, wastewater, solid waste, natural gas and electricity for residential and commercial customers in Mesa.

Council last raised utility rates in December and they went into effect Feb. 1.

The proposed rate adjustments also are forecast to help boost the city’s reserves to 9.2% from 4.6% in Fiscal Year 2028-29. One of Mesa’s financial principles is to have a 20% or higher reserve fund balance.

“The reserve balance, as we know, is kind of a safety net for unforeseen conditions,” explained Brian Ritschel, Management and Budget director at last week’s Audit, Finance and Enterprise Committee meeting. “The reserve balance can be used to smooth rates year to year, which we try to do.

“But also, on

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