City Council approves new water rate policy amid $24M utility deficit

Queen Creek's Town Council made significant strides in financial management during their regular session on February 19, 2025, highlighting a robust approach to debt reduction and utility rate adjustments. The council reported an impressive total of nearly $87 million in debt paid off, resulting in annual tax and fee reductions of approximately $15 million for residents. This cumulative savings over the years has reached nearly $158 million, showcasing the town's commitment to fiscal responsibility.

A key focus of the meeting was the management of water and wastewater services. The council emphasized the importance of maintaining affordable rates while addressing a current deficit in the water utility, which stands at approximately $24 million. To combat this, the council is implementing a 15% increase in water rates, expected to generate around $4.3 million in additional revenue. This increase will primarily affect single-family homes, which constitute about 67% of the town's revenue base.

The council also discussed various strategies to mitigate costs for residents. Notably, they have successfully avoided a planned water rate increase in previous years and refunded over $2.3 million in water deposits to customers. Additionally, a groundwater replenishment reduction policy initiated in 2018 has saved residents over $45 million.

In terms of utility billing, the council clarified the structure of charges, which includes both the town's monthly bill and a groundwater replenishment bill administered through the Central Arizona Groundwater Replenishment District (CAGRID). The council's proactive measures have significantly reduced the CAGRID bills for residents, with some accounts seeing reductions of up to $6,000 annually.

As the council moves forward, they remain focused on balancing the need for revenue generation with the goal of keeping utility costs manageable for residents. The discussions from this meeting reflect a commitment to transparency and effective financial management, ensuring that Queen Creek continues to thrive while providing essential services to its community.