Oro Valley Water Rates Most Certainly Will Go Up... Up... Up...

The Oro Valley Water Department completed a "Cost of Survey" study as reported at the water utility commission regular session last week.  Studies of this nature are used to determine the rate charged those who use water.   So,  it was good to read the following four study conclusions:

• Residential and irrigation customer classes are meeting their cost of service
• Commercial and master metered multi-family customer classes are exceeding their cost of
• service
• Construction customer class is exceeding its cost of service
• Reclaimed customer class is meeting its revenue requirements

Oro Valley policy is that water rates should be cost of service based and that any change in rates should be gradual. (Source)

This doesn't mean that there won't be an increase in water rates.   Au contraire!

The study recommends that there be no increase in the base rate charged water but there should be an increase in the cost per unit of water "sold" to users.  The study also recommends no increase in the groundwater preservation fee.  

Recognize, that an increase in the consumption portion of the water rates automatically results in an increase in the 4% utility tax.   So, more revenues will automatically flow to the town and you will have less money in your pocket.

The estimated impact on residential consumers is 3.1% or $1.24/month, plus 4% for the utility tax.   The plan is to implement the new rates in January, 2014,  once all hearings are completed and after Oro Valley Town Council approval.

This won't be the only increase.  The towns consultant, CM2Hill, estimates that a 3% increase in water rate rates will be needed through 2017. (Source)  the consultants further estimate that a 10% increase in price results in a 2% decrease in demand.

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