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Oro Valley council approves $1.86 monthly increase to potable water base rate
Summary
The Oro Valley Town Council on June 3 approved Resolution R26‑29 to raise potable water base rates only — a $1.86 monthly increase for 5/8-inch meters — to shore up utility reserves and cover rising operating costs; the vote was 7–0 and the change takes effect July 4.
The Oro Valley Town Council voted unanimously June 3 to raise the town’s potable water base rates, approving Resolution R26‑29 to increase the base rate for the most common residential meter from $23.31 to $25.17 per month.
Utility Director Peter Abraham told council the increase affects about 84% of accounts that have 5/8‑inch meters and is limited to the base rate; commodity rates will not change. "With the proposed rate increase, we're projecting our cash reserve will be $4,700,000," Abraham said, saying that would meet the utility’s 20% operating cash‑reserve requirement and produce a roughly $1 million surplus.
Abraham said rising operating costs — personnel, operations and maintenance, power and CAP delivery and wheeling charges — drove the recommendation. He provided a rough breakdown of a projected $900,000 operating increase next year, saying personnel accounts for about $125,000 (roughly 17%) and that CAP‑related delivery and wheeling charges and Northwest Recharge/Recovery delivery fees together represent the largest share.
Councilmember Josh Murphy praised the phased approach. "I think a dollar 86 is gonna hurt a lot less in residents' pockets than if you had waited to come forward until there was an issue," Murphy said.
Councilmember Josh Nicholson pressed staff about potential cuts to Colorado River Project (Central Arizona Project) allocations; Abraham said the town had been told to prepare for a possible 20% cut beginning in January but that Oro Valley’s portfolio and reclaimed‑water entitlements position the town comparatively well.
Mayor Winfield moved to approve the resolution; the motion passed 7–0. Staff said the increase will be effective July 4 and will be reflected on customer bills starting in August.
