The Town of Oro Valley will be seeking your input on a planned water rate increase. This is part of the process for a rate increase. The approval by the Oro Valley town council last week allows the posting of a notice of intent and begins the process of public hearings. New rates, if approved, will be in effect as of July 3.
Rationale the result of an methodology change
The rationale for the increase is to "...make the rates equitable to all rate users", according to Town Water Director Peter Abraham. "We tried very hard to make sure that one user group does not subsidize another." In this instance, the town wants to increase the residential water rate and decrease the reclaimed water rate.
Last year, the town hired a consulting firm who did a study that resulted in allocating more cost of water delivery to residential users and less to reclaimed water users. Essentially, the consulting firm changed the methodology of how water cost should be allocated. Thus, based purely on their methodology, Abraham concluded that an increase in residential water cost is needed.
During the meeting, Council Member Jones-Ivey asked why there is a recommendation to increase water rates when water conservation efforts have been so successful? Abraham responded that: "That without conservation the rate increase would be greater than it would be otherwise." He proffered that if residents consumed more water, then more infrastructure to support the service would be needed and, therefore, costs would go up.
In other words, according to Abraham's logic, no amount of effort on the residential user water conservation effort would have influenced this decision.
Under his plan, golf courses using reclaimed water will pay less. You, the residential user, will pay more.
Ride along taxes on water will increase too!
LOVE has previously reported about water rate increases. Increases have happened every year, without fail. The cost of water to Oro Valley residents has shot up exponentially over the years. Read about it here.
As we have pointed out in previous postings, when water cost goes up add on fees and taxes go up. For example, add 12.5% to the cost of water to pay for a sales tax and a utility tax. Add to that a groundwater preservation fee and a Supertax fund. Both of these are based on a percent of water cost.
The council is not required to increase rates
The passing of the resolution to increase water rates starts the process of public discussion. It does not require the council to raise rates. It merely means that the council can not increase rates greater than the the recommended change. The council can, at its option, leave rates as is. It can even decrease rates.
At no time during during the discussion among council members last week was there any mention of the fact that add on taxes and fees will also increase. This is something the public will have to bring to their attention. Perhaps the council needs to consider capping these ride along costs.
