The Phoenix Water Services Dept. is proposing a rate increase to address rising costs. While the increase is necessary to meet inflationary pressures affecting utilities across the nation, Phoenix will still have some of the most affordable water services compared to other large cities. There is also a request to increase the Stormwater Excise Tax to fund the City's compliance with new requirements for preventing pollution from entering waterways.
- Preliminary estimates show the average residential customer will see an increase for water service (Water Usage Fee) of approximately 6.5% or $2 in October 2023, with additional increases in March 2024 (6.5%) and March 2025 (13%).
- For wastewater service, the average residential customer will see an increase of approximately 6.5% or $1.60 in October 2023 with additional increases in March 2024 (6.5%) and March 2025 (7%).
- The proposal includes changing the water allowance structure to encourage water conservation.
- The Stormwater Excise Tax, which supports the City’s stormwater permit actions required by the Federal Clean Water Act, is expected to increase by $0.25 for most residential customers beginning in October 2023 because of new and expanded permit requirements.
- Generally, for commercial and industrial customers, the proposed increases will be larger for water and wastewater services and the Stormwater Excise Tax.
- Additional revenue is needed to meet higher expenses, improve aging infrastructure, develop advanced water purification operations, protect the department’s bond rating, and meet new stormwater permit requirements.
- Cost Increases through the fiscal year 2023/2024:
The proposed increases are expected to go before the Phoenix City Council with a Notice of Intent in April and a final vote June.
Public meetings will be held in March, April, and May to get feedback from residents.
Phoenix Water Services rates will remain among the most affordable in the country.
Water is the foundation of public health, economic opportunity, and quality of life.
Phoenix Water is owned by the community, and staff work 24/7 to make sure everyone has clean, safe, and reliable drinking water whenever it’s needed.
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.
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.
Current Volume Allowance
|
Proposed Volume Allowance
|
4,488 gallons (6 Units) - October through May
(Cooler Months)
| 3,740 gallons (5 Units) - October through May
(Cooler Months)
|
7,480 gallons (10 Units) – June through September (Warmer Months)
| 5,984 gallons (8 Units) – June through September
(Warmer Months)
|
|
1 Unit = 748 Gallons = 100 Cubit Feet. |
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:Date
|
Water Increase
|
Wastewater Increase
|
Stormwater Excise Tax
|
October 2023
| 6.5%
| 6.5%
| $0.25
|
March 2024
| 6.5%
| 6.5%
| ---
|
March 2025
| 13%
| 7%
| ---
|
The proposed rate increase is part of the department's five-year Capital Improvement Plan, which includes significant investments in water pipes, treatment plants, and advanced water purification technology. The department is committed to maintaining the trust it has established with its customers and will continue to provide reliable and cost-effective water services to meet the public's needs.
City of Phoenix Water Services staff will attend the following public meetings to gather comments and provide information on the proposed increases.
Please visit the
Public Meeting Notice page for information on how to attend the Village Planning Committee meetings.
