Arizona Lawmakers Push Ballot Measure To Freeze Municipal Rate Hikes For Four Years

## The Gilbert Water Hike Sparked a Statewide Response

Gilbert residents face a 25% water rate increase that takes effect April 1, the third such hike in three years for the city. But that's just one example of a broader trend across Arizona.

Phoenix saw a 13% water rate increase last year. Queen Creek approved a 15% hike. Chandler approved a 15% increase this year. Now Gilbert's 25% jump follows a pattern that's hitting families across the state.

Cathy Krahn, a Gilbert homeowner, told Arizona's Family her water bill has climbed sharply. "We were paying $50-$80 a month, and now we are paying anywhere from $280 to $340 a month."

Darrell Grossen, another Gilbert resident, said his monthly water bill has tripled over the last 14 years. In 2012, Grossen paid $300 per month for his water bill. Now he spends $900 per month.

## A Statewide Solution Gained Traction

State Rep. Justin Olson, who represents Legislative District 10, introduced House Concurrent Resolution 2016 to address these concerns. The measure would impose a four-year moratorium on municipal hikes to sales taxes, fees and utility rates.

HCR 2016 would block cities, towns and counties from raising these charges from July 1, 2026, to June 30, 2030, with two exceptions. Increases based on inflation would be allowed, as would tax increases approved by voters.

"If the cities are going to increase their tax rate at this time, when Arizonans are struggling with the high cost of living, they've got to get approval from the voters," Olson said during a recent hearing.

The proposal was initially introduced earlier in the legislative session but failed to advance out of the House. It was resurrected on March 25 as a strike-everything amendment to another bill.

## Three Factors Driving Water Rate Increases

Kathryn Sorensen, director of research with the Kyl Center for Water Policy, said three key factors are driving the increases across Arizona:

• Inflation — The rising cost of equipment and labor
• Aging infrastructure — The pipes, pumps, wells and systems that deliver safe drinking water are overdue for replacement
• Dwindling supply — Arizona and six other Western states have failed to reach a new agreement on how water from the Colorado River will be dispersed, creating uncertainty over future supply

"The seven-state dispute over Colorado River allocations is now expected to end up in court, leaving Arizona's future water allotment uncertain," Sorensen said.

Gilbert is currently conducting an audit of its water meter and billing system. The audit, conducted by Kimley Horn, has tested close to 500 meters for accuracy. So far, no systemwide issues have been found.

Mayor Scott Anderson said town leaders will take action after seeing the final audit results. Town staff reported that as of mid-March, 4,500 accounts were over 45 days past due on their bills.

## Critics Worry About Local Government Flexibility

The measure is one of at least 25 ballot measures state lawmakers are still considering. If passed by the Legislature, HCR 2016 would go to voters in November's general election.

"This bill is dangerous. It's a dangerous ballot referral," state Sen. Lauren Kuby said during the hearing. "It will restrict local governments and their ability to maintain essential services."

The striker overwrote a proposed ballot measure to bar counties from using countywide voting centers and require them to conduct precinct voting.

Maricopa County election officials are already preparing for the possibility of another two-page ballot in November. The November ballot already has at least three referendums, which the Legislature referred to voters last year. And two groups are collecting signatures for competing initiatives to reform the state's ESA school voucher program.

## What's Next For HCR 2016

If HCR 2016 passes the Senate, the House will need to hold a final vote in order for the measure to go to the ballot. Supporters argue it would provide much-needed relief for Arizonans struggling with the rising cost of living.

"We've heard from folks from all across Arizona that are saying, 'We need this protection,'" Olson told ABC15. "What we're doing with this bill is we're saying ... 'Don't add to the problem. Let's prevent government from increasing tax rates for the next four years.'"

The outcome could have significant implications for how Arizona cities, towns and counties manage their budgets and finances in the coming years.

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Sources

• Proposed Arizona Ballot Measure Would Freeze Municipal Rate Hikes for 4 Years | Phoenix Today | https://nationaltoday.com/us/az/phoenix/news/2026/04/08/proposed-arizona-ballot-measure-would-freeze-municipal-rate-hikes-for-4-years/
• Proposed Arizona ballot measure would ban rate hikes like Gilbert water increase for years | ABC15 | https://www.abc15.com/news/local-news/proposed-arizona-ballot-measure-would-ban-rate-hikes-like-gilbert-water-increase-for-years
• Gilbert water bill controversy: Final audit results coming soon | 12news.com | https://www.12news.com/article/news/local/gilbert-water-bill-controversy-final-audit-results-coming-soon/75-cdc2b82b-235d-4287-ac0e-71846a3b3e5e
• Arizona water rates rising: What's driving the increases across the state? | Arizona's Family | https://www.azfamily.com/2026/03/11/arizona-water-rates-rising-whats-driving-increases-across-state/