2023 Proposed Rate Increase for Phoenix Water Services and Stormwater Excise Tax

Water and Wastewater Rates

​The Phoenix Water Services Dept. is proposing a rate increase to keep up with rising water and wastewater services costs. Despite the increase, Phoenix will still have some of the most affordable water services compared to similar cities, and customers who conserve water will be able to lessen the impact of the higher rates. In addition, the proposal includes a change to the water allowance structure to encourage water conservation. Changes to the water and wastewater rates impact everyone differently, and there are many factors that determine how much each customer pays.​

During the public comment period, the public is encouraged to share their comments and feedback through the Public Outreach Comment Feedback form.

Public Notice for Proposed Water and Wastewater Rate Increase​

Inflationary Pressures

Over the past few years, both the water and wastewater utilities have experienced significant cost increases due to inflationary pressures. These pressures are not isolated to Phoenix, as water and wastewater utilities across the nation have experienced similar challenges. The proposed rate increase will provide the necessary revenue to meet these challenges and maintain the reliable and cost-effective water services that are critical to the quality of life, economic development, and public health and safety of the residents of Phoenix.​

Water Allowance and Conservation 

The proposal also includes changing the water allowance structure to encourage water conservation, which could result in some customers paying an additional amount of approximately $4 more beginning in October 2023.​ The Phoenix Water Services Dept. has a seasonal structure for rates where charges are higher in the hotter seasons and lower in the cooler seasons. It is designed to encourage water conservation and discourage excessive water use in the summer when outdoor water use increases. The City of Phoenix declared a Stage 1 Water Alert​​ on June 1, 2022, and that alert is still in place. With conditions on the Colorado River expected to worsen, Phoenix Water customers must prioritize conservation.​

Stormwater Excise Tax

The Stormwater Excise Tax funds the City’s compliance with a required Clean Water Act Municipal Separate Storm Sewer System (MS4) permit from the Arizona Department of Environmental Quality for operation of the storm drain system. This permit is required to prevent pollution from entering our washes and rivers and requires actions by the City, such as infrastructure maintenance, water quality monitoring, and inspections. As of 2021, the City is operating under a new permit with new and expanded requirements. An increase of $0.25 per month for single family residences (5/8 or 3/4 size water meters) is being proposed to fund the City’s compliance with these legal requirements. This increase equates to an additional $3.00/year for these accounts.​ The proposed increase for larger meter sizes is scaled at a graduated rate using the equivalent dwelling unit methodology.​

Public Notice for Stormwater Excise Tax​ 

Committees and City Council Oversight 

The Water Wastewater Rate Advisory Committee (WWRAC) recommended the revenue increase by a vote of 9-0 on Thursday, Jan. 26, 2023. Staff delivered presentations on the proposed rate and tax increases at the Phoenix City Council's Transportation, Infrastructure and Planning (TIP) subcommittee meeting on Wednesday, Feb. 15, 2023. If the Phoenix City Council approves the plan at its formal meeting in June, staff will implement the rate changes on this schedule: