PHOENIX, AZ – The Phoenix City Council reported that based on preliminary estimates, the average residential customer will experience a water service rate increase of approximately 6.5% or two dollars in October 2023, with additional increases in March 2024 (6.5%) and March 2025 (13%).
For wastewater service, the average residential customer will experience 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 changes in water and wastewater rates will affect all users differently, and there are different factors that will determine how much each customer will pay.
The proposal also includes changing the water allocation structure to encourage water conservation, which could result in some customers paying an additional amount of approximately four dollars more starting in October 2023.
The Phoenix Water Utilities Department has a seasonal rate structure where charges are higher in warmer seasons and lower in cooler seasons. It is designed to encourage conservation and discourage excessive water use in the summer when water use increases. The City declared a Stage 1 Water Alert last June 01, 2022, which remains in effect. With the anticipation of worsening Colorado River conditions.
Also, the City Council reiterated that 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 the operation of the sewer system.
This permit is necessary to prevent pollution from entering washes and rivers and requires actions by the City, such as infrastructure maintenance, water quality monitoring, and inspections.
Starting in 2021, the City operates under a new permit with expanded requirements. Within the initiative, an increase of $0.25 per month was proposed for single-family residences (5/8 or 3/4 size water meters) to fund compliance. This increase equates to an additional $3.00 per year for these accounts.
The proposed increase for larger meters has been tiered using the equivalent dwelling unit methodology.
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