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Oro Valley staff proposes a stormwater fee increase as part of a package of revenue seeking options
The Town of Oro Valley is considering an increase to its monthly stormwater utility fee beginning in fiscal year 2025–26. This fee is added into the town monthly water bill.
The Town of Oro Valley is considering an increase to its monthly stormwater utility fee beginning in fiscal year 2025–26. This fee is added into the town monthly water bill.
This increase is part of a package of proposed new taxes and recreational facility user increases that staff presented two weeks ago in a study session to the Oro Valley Town Council.
Current fee cannot fund new projects
Staff stated that the reason for the proposed increase is that the current rate only covers day-to-day operations and routine maintenance. The current fee level does not generate enough revenue to fund capital improvement projects. For example, the Calle Concordia channel improvement project and the La Cholla wash crossing at Lambert Lane are both on hold due to insufficient stormwater funds. There are other examples of projects proposed by not done around town [See panel right].
About the Stormwater Utility
Oro Valley’s Stormwater Utility was established in July 2001 as an enterprise fund. This means that it operates independently from the Town’s general fund and is supported entirely by user fees. The utility was created to comply with federal and state stormwater regulations, including water quality and floodplain management standards, and to ensure the Town could fund the planning, construction, maintenance, and monitoring of local stormwater infrastructure. By keeping the utility self-supporting, Oro Valley is able to provide dedicated resources for critical drainage and flood control projects, without relying on general tax revenues.
First rate increase since the utility was created in 2001
According to town staff, the stormwater utility fee, first implemented in 2001 when the utility was created, has remained unchanged. Now, Town staff and the town's Stormwater Utility Commission are recommending a $2.00 per month increase for each Equivalent Residential Unit (ERU)—a billing unit that represents the amount of stormwater runoff generated by a typical single-family home. An ERU is also used to calculate charges for commercial properties based on their impervious surface area. The new proposal would raise the base rate from $4.50 to $6.50 per ERU for both residential and commercial properties. This marks the first major change to the stormwater fee since its creation and is intended to support both ongoing operations and a growing list of capital improvement projects.
Staff stated that the reason for the proposed increase is that the current rate only covers day-to-day operations and routine maintenance. The current fee level does not generate enough revenue to fund capital improvement projects. For example, the Calle Concordia channel improvement project and the La Cholla wash crossing at Lambert Lane are both on hold due to insufficient stormwater funds. There are other examples of projects proposed by not done around town [See panel right].
New rates will affect both residents and businesses?
If approved, developed residential properties would see their monthly stormwater feed charge go from $4.50 to $6.50, or an increase of $24 per year per household. Commercial properties, which are billed based on the amount of impervious surface area, would see a similar per-ERU increase. The change is projected to generate approximately $2.2 million in stormwater revenue in FY 2025–26, a substantial increase from current collections of $1.5 million. Staff say this will allow the utility to cover routine costs, meet reserve requirements, and fund some capital improvements without needing to dip into emergency reserves.
What did council members have to say?
Speaking at the study session, several council members acknowledged the need to maintain Oro Valley’s infrastructure and prepare for future challenges. However, concerns were raised about the timing and size of the increase, especially given recent or proposed increases in other fees and taxes. One Councilmember stated that “We need to be sure residents understand why this increase is needed and how the money will be used.” Other members stressed the importance of annual reviews to avoid large, sudden jumps in the future. This is the rate increase model that is used by the Water Utility.
Speaking at the study session, several council members acknowledged the need to maintain Oro Valley’s infrastructure and prepare for future challenges. However, concerns were raised about the timing and size of the increase, especially given recent or proposed increases in other fees and taxes. One Councilmember stated that “We need to be sure residents understand why this increase is needed and how the money will be used.” Other members stressed the importance of annual reviews to avoid large, sudden jumps in the future. This is the rate increase model that is used by the Water Utility.
Resident question: Is this increase simply the result of poor town planning?
One resident wrote us observing tha “Despite our Town Manager updating our 10 Year Capital Improvement Plan in every budget, it is clear to me that there are long needed stormwater projects which have never been adequately socialized with Council, nor planned nor funded. Thus the Town gets the false bliss of thinking we have more money for discretionary spending than we actually do.” This comment highlights the concern that a lack of clear planning and discussion around stormwater needs in the past has lead to an false picture of the Town’s financial flexibility, further emphasizing the importance of addressing overdue infrastructure projects.
One resident wrote us observing tha “Despite our Town Manager updating our 10 Year Capital Improvement Plan in every budget, it is clear to me that there are long needed stormwater projects which have never been adequately socialized with Council, nor planned nor funded. Thus the Town gets the false bliss of thinking we have more money for discretionary spending than we actually do.” This comment highlights the concern that a lack of clear planning and discussion around stormwater needs in the past has lead to an false picture of the Town’s financial flexibility, further emphasizing the importance of addressing overdue infrastructure projects.
Community engagement is underway—get involved
As with other proposed changes, the stormwater fee increase is still under review, and the Town is holding a community engagement process to gather input before any decisions are made. Residents and business owners are encouraged to participate and share their views at upcoming meetings, as these proposals could directly affect them. The council wants to hear from the public before moving forward. So now is the time to get involved if you have an opinion on these potential changes. Here's how.
As with other proposed changes, the stormwater fee increase is still under review, and the Town is holding a community engagement process to gather input before any decisions are made. Residents and business owners are encouraged to participate and share their views at upcoming meetings, as these proposals could directly affect them. The council wants to hear from the public before moving forward. So now is the time to get involved if you have an opinion on these potential changes. Here's how.
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Oro Valley’s Stormwater Utility was established in July 2001 as an enterprise fund. This means that it operates independently from the Town’s general fund and is supported entirely by user fees. The utility was created to comply with federal and state stormwater regulations, including water quality and floodplain management standards, and to ensure the Town could fund the planning, construction, maintenance, and monitoring of local stormwater infrastructure. By keeping the utility self-supporting, Oro Valley is able to provide dedicated resources for critical drainage and flood control projects, without relying on general tax revenues.
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