Queen Creek council approves notice to set May 7 public hearing on proposed 15% water rate increase

The Queen Creek Town Council voted unanimously to publish a notice of intent and set a public hearing on May 7 for a proposed 15 percent increase to monthly water bills.

Deputy Town Manager and Chief Financial Officer Scott McCarty told council the measure is intended to stabilize the water fund, help cover debt‑service requirements tied to an $85 million loan that funded supply purchases and infrastructure, and buy time for a longer comprehensive water rate study and related policy discussions.

"This item tonight is to start the formal process of having a 15% rate increase to our monthly water bill," McCarty said during the council meeting. He said the town’s water service area extends beyond town limits and that the proposed increase would be phased in after statutorily required notice periods.

McCarty and communications manager Constance Hallen‑Wilson summarized the outreach the town has conducted since the item was first discussed: a dedicated landing page with an online bill calculator and CAGRD (Central Arizona Groundwater Replenishment District) savings information, about 1,200 page views in 14 days, a social video with roughly 12,000 views, a targeted email campaign with a 79 percent open rate and 13 direct email responses so far, and senior‑center briefings and HOA outreach. Hallen‑Wilson said all communications direct residents to the town’s landing page for details and a form for questions.

Town staff presented expected customer impacts. McCarty said the estimated total annual revenue from the 15 percent increase would be approximately $4.3 million, with about $3.0 million of that coming from single‑family residential customers. For an average household under current consumption patterns he said about 65 percent of months would see a $3 to $4 monthly increase, while peak months could rise by about $6.

McCarty reviewed the statutorily required timeline: if council approves publication of the notice of intent it must remain posted for 60 days; the council would then set a public hearing (May 7 in the town’s calendar) and, if council adopts the rate increase, a 30‑day waiting period applies before new rates take effect. Based on billing cycles staff said the first customer bill to reflect the new rates would be issued the week of July 29.

Council members asked for additional customer‑level information. Councilmember Brown asked for an HOA‑level breakout and a list of large accounts; staff agreed to provide HOA account totals and to return with a breakout of the town’s largest customers during the 60‑day notice period.

Motion and vote: the council approved the notice of intent to set a May 7 public hearing on the proposed 15 percent water rate increase. The motion passed unanimously.