Queen Creek staff propose 15% water rate increase to stabilize utility finances; council to consider notice of intent in March

Scott McCarty, Queen Creek’s deputy town manager and chief financial officer, told the Town Council that staff is proposing an interim 15% increase to the town’s water rates to stabilize the utility’s finances while the town completes a comprehensive rate and capacity-fee study.

"The overarching goal here is to continue to ensure we provide safe, reliable water to our 40 plus thousand customers," McCarty said, describing the proposal as an interim step that would help the town refinance an $85 million interim loan and meet legally required debt-coverage ratios on water utility debt. He said a 15% increase would generate roughly $4.3 million in additional annual revenue under current consumption patterns.

Why it matters: McCarty and water staff described a multi-year change in the utility’s scale and costs: the system now covers roughly 70 square miles and about 40,000 accounts; annual billings total about $30 million; water pumping has grown roughly 63% over the last decade; and the town has invested in water supplies and infrastructure through purchases and debt issuance (McCarty cited approximately $240 million in debt issued to finance acquisitions and…