The Oro Valley Stormwater Utility Commission voted unanimously Oct. 14 to recommend that the Town Council adopt a phased increase in the stormwater utility rate, raising the equivalent residential unit (ERU) monthly charge from $4.50 to $6.50 over three years beginning July 1, 2026.

The commission and staff said the adjustment is necessary to complete urgent infrastructure repairs, meet updated regulatory requirements, and protect the utility’s financial standing. Without an increase, staff projected the stormwater fund’s cash balance could drop to about 12% by 2027, below the town’s 15% reserve target.

Dennis Roberts, stormwater utility division manager for the Town of Oro Valley, presented the analysis that staff used to recommend a phased approach. Roberts said the current $4.50 monthly ERU rate has sustained core operations but “is no longer sufficient to meet the growing demands of the utility,” citing rising construction and materials costs, needed repairs and the need to maintain borrowing capacity and eligibility for external grants. Roberts told the commission that Pima County’s commitment to fund and complete the Oro Valley Drive drainage project influenced staff’s ability to phase the increase.

The commission’s recommendation calls for a three-year phase: effective July 1, 2026 (fiscal year 2027) a 15% increase to a base rate of $5.17; July 1, 2027 (fiscal year 2028) an additional 13% to a base rate of $5.84; and July 1, 2028 (fiscal year 2029) an additional 11% to reach $6.50 per ERU. Staff described the year‑by‑year increases as 67 cents in year one, 67 cents in year two and 66 cents in year three.

Town Engineer and Public Works Director Paul Keesler, answering commissioners’ questions, said council had asked staff to avoid a single large jump and instead follow a phased plan that can be adjusted for inflation and changing needs. Keesler described the multi‑year schedule as providing predictability while preserving the fund’s contingency.

Commissioner Robert Eguayo moved the recommendation to the mayor and council; the motion was seconded and passed unanimously. The commission recorded the motion as supporting a multi‑year fee schedule effective with the fiscal year beginning July 1, 2026.

Next steps outlined by staff include Town Council’s reconsideration of Resolution No. 2552 on Oct. 15, which would initiate the public notice of intent to adjust the stormwater rate, followed by a public hearing scheduled for Jan. 14, 2026. If the council adopts the rate adjustment after the public hearing, the first phase would take effect July 1, 2026.

The commission discussion also emphasized the importance of maintaining a 15% operating reserve as a safeguard for emergency response, operations continuity and grant eligibility. Commissioners and staff noted the increased burden on commercial accounts, which are charged by ERU multiples, and that businesses will see proportionally larger increases than residential accounts.

A formal motion and vote were recorded at the meeting; the commission declared the motion carried and adjourned afterward.