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Oro Valley approves phased stormwater rate increase to fund deferred projects
Summary
Council approved a three-year phased increase to the stormwater utility base rate to address capital and operational needs, raising the ERU from $4.50 to $6.50 over three years and projecting roughly $391,000 in additional annual revenue by FY29.
The Oro Valley Town Council on Jan. 14 approved a phased increase to the town’s stormwater utility base rate after an 18-month review by the Stormwater Utility Commission and staff analysis.
Stormwater Division Manager Dennis Roberts presented the proposed three-year schedule: fiscal year 2027 a 15% increase to $5.17 per equivalent residential unit (ERU) effective July 1, 2026; fiscal year 2028 a further 13% increase to $5.84 effective July 1, 2027; and fiscal year 2029 an 11% increase to $6.50 effective July 1, 2028. Roberts said commercial properties will be adjusted proportionally by impervious area and that by FY29 the phased increases are projected to generate approximately $391,000 in additional annual revenue to sustain operations, capital projects and a 15% reserve threshold.
A public commenter expressed opposition to increasing rates and urged exploring internal cuts first. Roberts said the town had followed the statutory notice-of-intent process and that no formal objections were filed during that period. Councilmembers acknowledged the impact on residents but supported the phased approach as a way to spread the burden; the measure passed on roll-call vote (7–0).
Council directed staff to proceed with the rate adjustment resolution (R26-02); staff will use the additional funds to maintain drainage infrastructure and to pursue capital projects and grant opportunities where feasible.
