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Cave Creek previews water rate changes to boost system revenue by roughly 6%
Summary
Staff previewed proposed utility rate adjustments the council will consider tonight to generate about 6% additional water‑system revenue over two years, including tier changes to protect low‑volume users and revised wheeling/boosted rates.
Sean Cruz Weisner told attendees that the council will hear a final utility rate ordinance tonight that staff modeled to produce roughly 6% more revenue for the water system over the next two years.
Weisner said the proposal updates customer tiers to shield very low water users (the town created a new lower tier for customers using less than 4,000 gallons per month) and moves the top tier threshold down from 50,000 to 40,000 gallons to better align charges with high use. He also said the wheeling rate between Cave Creek and Desert Hills was revised so Desert Hills customers pay a proportional share of system improvements.
Staff explained the rate package includes changes to booster/pressure zone charges and internal service fees to more equitably allocate utility costs. Weisner said the town has previously relied on general‑fund subsidies and is working toward a self‑supporting enterprise fund for utilities but that near‑term rate changes are needed to cover operating and capital costs, including investments tied to water resources.
