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Oro Valley council approves potable water rate increase, effective July 5
Summary
The council adopted Resolution R25-19 to raise potable base and commodity water rates. Town staff said the average residential customer will see a $1.81 monthly increase; the change is driven largely by higher Central Arizona Project water resource costs and projected capital needs.
The Oro Valley Town Council unanimously approved Resolution R25-19 on June 4 to raise potable water base rates and potable water commodity rates for tiers 1 and 2. Councilmember Rob seconded the motion and the council approved the resolution by a 5-0 vote. Council and staff said the rates will become effective July 5 and appear on bills beginning in August.
Water Utility Director (presenting) explained the utility is an enterprise fund reliant on water sales, fees and charges and not the town’s general fund. He said major drivers of the proposed increase are rising water resource costs, chiefly the Central Arizona Project allocation, and the town’s decision to cash-fund existing system improvements from operating revenues rather than issue new debt.
The director presented specific impacts: 84% of customers have a 5/8-inch meter and would see the base monthly charge increase from $22.20 to $23.31 (a $1.11 increase, 5%). He said tier 1 commodity would increase from $2.92 to $3.02 per 1,000 gallons; tier 2 would rise from $4.85 to $5.02 per 1,000 gallons. Using the proposed rates, the director said “the average water utility customer will see a monthly rate increase of a dollar and 81¢.”
Staff noted they raised tiers 3 and 4 substantially in the prior fiscal year and therefore proposed no change to those tiers this year. The director also said reclaimed water rates would not be changed.
Council members asked clarifying questions; none opposed the proposal at the vote. Staff said benchmarking shows Oro Valley would remain below some nearby providers for typical (tier 1) residential use even after the increase. The resolution passed 5-0.
