PUBLIC NOTICE

Of Public Hearing On Proposed Adjustments to Rates, Fees and Charges

            The Arizona City Sanitary District (the “District”) will hold a Public Hearing on June 18, 2008 at the District Offices located at 12922 S. Kashmir Road, Arizona City, Arizona at 6:00 p.m. on the proposed adjustment to its rates, fees and charges.

The Arizona City Sanitary District commissioned a Rate and Fee Study be conducted to determine if current rates and fees will meet the needs of the District for the next 5 years.  The outcome of the Study indicated the District needs to increase its' Rates and Fees 18.2% over the next 3-years.  At this time, the Board of Directors is proposing a $1.00 across the board increase to most user fees plus a slight increase to its' other rates and fees.

            The Board welcomes public comments at the hearing on a proposal to increase the following fees:

            1.         Adjust all Users Fees as follows:

                                                            Current Rate                        Proposed Rate

                        Residential               $ 22.00 per mo.                    $ 23.00 per mo.

                        (R1 thru R3)

                        Commercial             $ 26.40 per mo.                    $ 27.40 per mo.

                        (C1)

                        Commercial             $35.20 per mo.                     $ 36.20 per mo.

                        (C2)

                        Commercial             $ 70.40 per mo.                    $ 71.40 per mo.

                        (C3)

                        Commercial             $ 13.20 per mo.                    $ 14.20 per mo.

                        (C4)

                        Industrial                  $ 33.00 per mo.                    $ 34.00 per mo.

                        (I1)

                        Industrial                  $ 70.40 per mo.                    $ 71.40 per mo.

                        (I2)

                        Elementary School  $450.00 per mo.                No Change

2.       Availability Fee:  $48.00 / year, billed annually - No Change

3.       Sewer Service Connection Permit Fees:

A. Hook-up Fee: Increase from the current $1,600.00 to $1,800.00 per connection to the District's sewer system. Said fee does not include the cost of the actual physical connection, but does include physical inspection and administrative costs. Said fee is payable upon application for connection to the District's sewer system.

B. Capacity Fee: Increase from the current $2,200.00 per tenancy to $2,400.00 per tenancy to cover the costs of capacity in the District's treatment plant required to treat the flow of sewage which enters the sewage system from a particular sewer connection. Said fee is payable upon application for connection to the District's sewer system.

4.       Terms:

A.        For new construction, the User Fee shall commence the earlier of:
three (3) months from the date of issuance of the Sewer Service Connection
Permit or, the first day of the month following the date of inspection.

B.         Sewer Service Connection Permit fees shall be payable upon
application for connection to the District's sewer system.

C.         A Sewer Service Connection Permit shall not be issued by the
District until all delinquent fees on all accounts owned by the applicant or
owner, if any, are paid in full.

D.         Classification of customers and computation of fees shall continue
to be governed by the District's Sanitary Code and the resolutions of the Board of
Directors, as amended from time to time by the Board.

5.       Miscellaneous Fees:

A.         Late Fee: Remains unchanged at $5.00 or 1.5% whichever is
greater and is charged to accounts where payments are made after the stated
due date.

B.         Disconnect / Reconnection Fee: Remains unchanged at
$1,200.00. This fee, plus the actual fees owed on the account, must be paid for
reinstatement of service if the District terminated service for non-payment or
violation of District regulations. This fee may be reduced to $300.00 plus the
actual fees owed on the account where an Elder Valve has been installed and
the customer does not attempt to bypass the disconnection.

C.         Return Check Fee: Remains unchanged at $25.00 on all returned
checks. Bad Checks are now also reported to the Pinal County Attorney's Office.

D.         Other Services: All other services performed by the District (e.g.,
plan reviews, site evaluations, construction inspections, monitoring inspections,
follow-up inspections, etc.) will continue to be billed at the actual cost incurred by
the District plus ten per cent (10%) of the actual costs incurred to recoup costs associated with administrative overhead. 

E.         Live Oak Subdivision Surcharge:  A surcharge fee of $1,000.00 will be added to the Sewer Service Connection Permit fee for the Live Oak Subdivision to recover District costs to correct deficiencies to the Phase 1 Sewer Infrastructure.

Following the Public Hearing, the Board will convene in a Regular Meeting, at which time the Board may adopt any or all of the proposed changes to the Sanitary District policies with regard to Sewer System Charges.

A copy of the Rate Study is available by request.  Please contact the Arizona City Sanitary District in person to obtain a copy.  The Arizona City Sanitary District is located at 12922 S. Kashmir Road, (cross street Battaglia), Arizona City.

Arizona City Sanitary District

Board of Directors

No. of Publications:  2; dates of publication:   May 27, 2008, June 4, 2008