Gilbert City Council Study Session on Agricultural Water Rate, February 17, 2026
Gilbert City Council Study Session on Agricultural Water Rate Framework
The Gilbert City Council held a study session on February 17, 2026, focused on a presentation and discussion of a proposed agricultural water rate framework. The session included an update on Colorado River conditions, a detailed proposal for a pilot program to reduce water rates for qualifying residential properties with agricultural or livestock operations, and council questions regarding eligibility and implementation.
Consent Calendar
- [No consent calendar items were discussed.]
Public Comments & Testimony
- [No public comments or testimony were presented.]
Discussion Items
- Colorado River Update: A staff member reported that the Bureau of Reclamation released a draft plan in January 2026 detailing five alternatives for operating the river. The "no deal" alternative could result in Arizona taking up to 77% of water reductions under declining river conditions. Current record low runoff projections indicate a high likelihood that Lake Powell will decline below minimum power pool elevation by the end of 2026. The town continues to advocate that the no-deal alternative is incomplete and has legal concerns, emphasizing the need for water resiliency projects such as the Northwater Treatment Plant Reconstruction and well development program.
- Proposed Agricultural Water Rate Framework: Staff presented a proposal to establish a pilot program allowing qualifying residential properties with livestock or local food production to switch from the tiered residential water rate to the non-residential landscape water rate. The rate change would apply to all water use on the property. The break-even point for savings is approximately 45,000 gallons per month. Example savings: a customer using 60,000 gallons per month average would save about $57 per month ($690/year); a customer using 125,000 gallons per month average would save about $305 per month ($3,600/year).
- Eligibility Criteria: Four categories were proposed: (1) customer requirements (existing residential customer within town limits, with an active animal/agricultural business as of December 31, 2025); (2) property characteristics (lot size ≥35,000 sq ft, no exempt well, compliance with 1980 Groundwater Management Act); (3) water use and efficiency (max 10% ornamental grass, flood irrigation usage preference, water use limited to highest of prior three years' annual use); (4) compliance and audits (cross-connection audit, water efficiency checkup, review of livestock quantity per land development code). The program would not transfer upon sale of property, and participants cannot also participate in the utility discount program.
- Council Questions: Councilmember Buckley asked about the number of eligible properties—staff estimated about 500 properties over 35,000 sq ft using at least 45,000 gallons/month, but the number of actual farms is likely significantly lower. Staff contacted two local farmers markets and found about five farms operating in Gilbert, and worked with a handful of residents. Councilmember Buckley clarified that the program applies only to occupied residential properties, not vacant land, and that agricultural businesses are exempt from Gilbert business license requirements but must prove business existence via tax records or vendor lists. Councilmember Lyons confirmed positive feedback from stakeholders. Vice Mayor Bongiovanni suggested reconsidering the December 31, 2025 deadline to potentially include businesses that may become more compliant.
Key Outcomes
- The council provided general direction for staff to bring the pilot program forward as a resolution at the next regular meeting on March 3, 2026.
- If approved, the program would launch on April 1, 2026, with staff reaching out to eligible customers, adding information to the website, and tracking participation. Staff would return within at least one year with data on program performance.
- The meeting adjourned, with the regular meeting scheduled for 6:30 p.m.
Meeting Transcript
Okay, I'm going to go ahead and call to order the council study session for February seventeenth, twenty twenty-six. Mayor Scott Anderson. Here. Vice Mayor Chuck Bongiovanni. Here. Council Member Bobby Buckley here. Councilmember Kenny Bucklin. Here. Council Member Young Kaprowski. Here. Council Member Monty Lyons. Here. And Councilmember Jim Torgeson. Aquaram is present. Thank you. We have one item on the agenda presentation and discussion on agricultural agriculture water rate framework. Lauren. Reclamation released a draft plan in January detailing five alternatives for operating the river. The only alternative reclamation stated they believe that they can implement without an agreement is shown here on the screen. And if river conditions continue to decline, this no deal alternative shown here could result in Arizona taking up to 77% of reductions while barely reducing the other basin states. We continue to advocate along with our Arizona partners that the no-deal alternative is incomplete and has many legal concerns. However, the need to reduce demand on the system is more real than ever with this year's dismal winter conditions. The current record low runoff projections indicate a high likelihood that Lake Powell will decline below the minimum power pool level by the end of this year. This is the elevation at which the dam can no longer generate hydropower. With or without an agreement, reclamation has stated they will move forward with new guidelines by October 1st, 2026. These current hydrologic and political conditions on the river emphasize the criticality of Gilbert's response to these uncertain shortages through water resiliency projects such as the Northwater Treatment Plant Reconstruction as well as the well development program. So just wanted to take the time to update you on what's going on on the river. This is important context as we discuss the main topic of today's study session, which is the agricultural water rate framework. Next slide. Oh, sorry. Okay. So let's see. There we go. So we're here today because of a request to look into options to ease the rate burden for those who large residential properties that support livestock and local food production that are key elements of Gilbert's rural character and small town charm. And so we've identified the goal has been to identify options to ease this rate burden while ensuring fairness for all customers. So today I'm going to go through research and background information, the proposed rate, eligibility criteria, as well as next steps. As part of our background research, we looked into comparable municipal programs. We were able to find five different comparable programs among cities in the western United States. A couple in California, one in Honolulu, one down in two, a couple down in Tucson, as well as some options that neighboring cities do to allow residential properties to be on a landscape water rate. As we evaluated these programs, we saw that there were really just a handful of communities that have gone this route. There's a wide variability in the eligibility criteria, but they do tend to focus on local food production at either a commercial or nonprofit level. And the ones that are closer to home, the neighboring cities here in the valley, they have allowed residential customers to be on a reduced rate, but they require an additional meter, which is a high upfront cost. And so we really haven't found an industry standard. They were all really developed to meet the needs of the individual communities, which is how we've taken the approach for what we'll present to you today. In addition to the background information on comparable programs, we also wanted to go into important background information as far as Arizona and Gilbert water policy and history. As many of you are aware, the Greater Phoenix Valley, including most of Gilbert, was farmed primarily using surface water from the Salt and Verde Rivers. And these historical water rights and canals continue to support those agricultural uses, even as the valley has developed and water policy has evolved. The main evolution of our water policy took place back in 1980 with the Groundwater Management Act. This act adopted was adopted due to drastic declines in groundwater levels seen throughout the areas shown on the map. And it established water rights for all types of uses, municipal, industrial, agricultural, etc.
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