During a recent work session held on May 6, 2025, the Bullhead City Council addressed the pressing issue of potential increases in water and sewer rates, marking the first discussion on this topic in three years. Mayor D'Amico emphasized the importance of the meeting, noting that the city had previously committed to not raising rates when it took over the water system from EPCOR. However, the time has come to reassess this promise due to rising operational costs and aging infrastructure.
The council's discussions highlighted the necessity of ensuring reliable water service for over 20,000 customers. Utility Director Mark Clark presented a detailed analysis of the financial challenges facing the water and wastewater systems. He explained that the city operates as an enterprise fund, relying solely on revenue from utility customers to cover operational costs and debt, without support from sales tax or state funds.
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Subscribe for Free Clark outlined the significant infrastructure improvements made since the city took over the water system, including repairs to wells and reservoirs that had been neglected under EPCOR's management. He noted that the city has invested nearly $10 million in upgrades, which are crucial for maintaining a reliable water supply. Despite these efforts, the city is currently in a financial deficit, borrowing from the general fund to meet its obligations.
The proposed rate increases are structured to be phased in over three years, with a projected 19% increase in 2026, followed by 14% increases in the subsequent years. This approach aims to mitigate the financial impact on residents while addressing the urgent need for infrastructure investment. The council emphasized that even with these increases, the rates would remain lower than those previously charged by EPCOR.
The meeting concluded with a call for feedback from council members and a commitment to engage with the public throughout the rate-setting process. The discussions underscored the city's dedication to local governance and transparency in utility management, as decisions about rates will be made directly in council chambers rather than by external entities. As the city moves forward, the council aims to balance the need for financial sustainability with the community's expectations for affordable utility services.