Cave Creek council adopts three-year utility rate plan, citing long-term water reliability

Cave Creek — The Town of Cave Creek on a 6–0 voice vote adopted Resolution 2026‑01, rescinding previously adopted 2026–28 utility rates and putting in place a three‑year schedule of rate increases intended to shore up water and wastewater finances and preserve system reliability.

Utilities staff presented a rate study and recommended adopting modest annual increases — generally about 6% in the first two years on water and wastewater — and restructuring residential volumetric tiers. "What we're asking for is to adopt rate increases for the next 3 years to help give us a little bit of time to work on a more comprehensive rate study," Utilities staff said during the presentation. The proposal adds a new low tier (0–4,000 gallons), shifts the 4,000–10,000 band, and lowers the top tier threshold from "greater than 50,000" to "greater than 40,000" gallons to accelerate higher charges for the heaviest users.

The staff presentation said the first increase would be effective Feb. 5, 2026, with subsequent adjustments taking effect in the first whole billing period of January in 2027 and 2028. Staff described the measures as a way to reduce general‑fund subsidies and meet debt‑service requirements for potential WIFA/WIPA loans while continuing to fund operating and equipment reserves.

The public record included a written comment from Anne and Paul Teixeira opposing the increases. Read into the record by the mayor, their statement said the town paid an "exorbitant price" to acquire a dilapidated system and that residents were promised rates would fall after repairs; the Teixeiras wrote that instead they "have had price increases" and opposed further financial burden on Cave Creek residents.

Council members who supported the resolution said the changes balance fairness and conservation. Mayor (Speaker 1) noted that the increase for very high users could be as much as "$600 a month" while a medium user would see about "$6 a month," and said conservation and maintaining reliability were critical in the face of long‑term Colorado River reductions. Councilmember (Speaker 14), who moved the motion to adopt the resolution, said the town must pay for necessary infrastructure and emergency access and that the proposal reduced what was initially proposed to avoid overcharging residents.

The motion passed on a voice vote, 6–0.

Next steps: Staff said it will return with a more comprehensive rate study and additional conservation and water‑resources work to refine the program and billing structure.