The city of Phoenix has a policy of charging all customers nearly the same rates. Those rates are  significantly lower than Anthem’s, in part because costs are spread over a large customer base.

“Phoenix could never afford to annex Anthem,” Siebert said. “We couldn’t afford to buy out the water/sewer system. It would cost about a billion dollars to buy them (Arizona American) out.”

This is not the first time Anthem residents have posed the question. About a year ago, when residents first raised the issue, the city looked into what it would cost to buy the Anthem utility.

The Phoenix water services department speculated the city would probably have to pay future system revenues projected into the next 20 years, said Joe Villasenor, Siebert’s chief of staff. In addition, Phoenix would be required to purchase the water/sewer lines throughout the community, as well as the treatment plant infrastructure.

“There are so many unknowns,” Villasenor said. “Roughly, we figure (the cost would be) about a billion dollars.”

Arizona American Water spokesman Todd Walker said he would not comment on the worth of the Anthem water and sewer utility.

“The system is not for sale,” stated Walker.

Theoretically, if Phoenix annexed Anthem and took over the Arizona American system, Anthem customers would have to pay twice for the infrastructure– first in the cost of homes and again, Villasenor said, through water/ wastewater rates to compensate the city for its acquisition cost.

“It would be a logistical nightmare,” he added.

Although annexing Anthem is apparently not in the city’s plans, a group of land owners nearby have recently asked the city to annex their properties.

One such parcel lies just north of Anthem, both east and west of Interstate 17, the easterly portion bounded by Teresa Lane on the north.

Another is immediately north of Teresa Lane running to just south of Circle Mountain Road on the east side of I‑17.

Clancy Jayne, a former state legislator representing the north central Valley, is a consultant for the collective property owners of the northern‑most 117‑acre parcel bounded roughly by Circle Mountain Road to the north, Teresa Lane to the south, I‑17 to the west and the 39th Avenue alignment to the east.

The city is not scheduled to vote on approving that parcel for annexation until sometime in the fall. According to Jayne, Phoenix will only agree to the annexation if the property is developed commercial.

“The property owners have no specific use in mind for the property at this time,” he said, adding they plan to hold the property.

Another detail in the proposed annexation: Arizona American Water is talking to the city about extending its water/sewer service north of Anthem. The utility will not agree to extend its infrastructure, however, unless the city releases those customers permanently to be served by Arizona American, Jayne said.

Transwestern Investment LLC owns the parcel on the west side of the highway, Villasenor related. The owner is not planning to develop at this time, so no arrangement for water is under discussion. Tom Tait owns the eastern portion of the annexation.

The city approved this 67‑acre annexation June 6, said the city clerk’s office. The parcel is bounded by Kenai Drive on the south, 43rd Avenue on the west, 39th Avenue alignment on the east and Teresa Lane to the north.

According to Villasenor, Phoenix would never extend its water system north of Anthem on the east side of I‑17 but does plan to extend service on the west side –  but not for at least 10 years.

A third proposed annexation, also west of I‑17 bounded by 43rd Avenue and Circle Mountain directly north of the Daisy Mountain postal office, involves another 10 acres owned by Tait. A public hearing on this proposed annexation will be held before the city council June 20.