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Oro Valley commission votes to forward proposed 2025 water-rate plan to town council
Summary
On Jan. 13 the Oro Valley Water Utility Commission voted to recommend that the mayor and town council consider a proposed water-rate package for fiscal 2025–26. Staff described a five‑year rate model, capital funding plans and a timetable that would publish a notice of intent March 5 and hold a public hearing June 4 if council agrees.
The Oro Valley Water Utility Commission voted Jan. 13 to recommend that the mayor and town council consider a proposed water‑rate package for fiscal 2025–26, including a 5% increase to potable base charges and commodity increases focused in lower tiers.
The recommendation follows a multi‑hour presentation by utility staff explaining the assumptions and outputs of a five‑year rate model. Peter (water utility staff) and Mary (finance staff) presented the model inputs — personnel, power and CAP delivery costs, projected growth and capital spending — and the model output that the staff said supports a 3.6% rate increase proposed for the next fiscal year and smaller projected increases thereafter.
Why it matters: staff told commissioners that the utility is funded by an enterprise fund and must meet cash‑reserve and debt‑coverage requirements. The model aims to preserve required reserves while increasing annual cash funding…
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