The town council will consider a drinking rate increase in June. This will be the result of a process that started in October, with a consultant's study of the cost of water service. It continued Monday night when the Town of Oro Valley Water Commission will review a report prepared by the consultant, Willdan.
The study, “Water Rate Study and Long-Term Financial Plan”. recommends that the town implement water rate increases each July from 2022 through 2026. The rate of increase this year and next would be 6% (See panel right). This would be a
According to the study, the increases are needed to cover expected personnel and operating expense increase, increases in the cost of CAP water and funding of $18.9 million in capital improvements during these years. Two thirds of the capital improvement spending is for the NWRRDS project that will bring and added $4,000 acre feet of CAP water to Oro Valley.
Most of the improvements will be funded either by the add on tax, the Groundwater Preservation Fee, and through $8million bond issuance in 2023.
Would result in a 6% increase next July
Most of the improvements will be funded either by the add on tax, the Groundwater Preservation Fee, and through $8million bond issuance in 2023.
Would result in a 6% increase next July
A residential user of 7,000 gallons per month would see an increase of $2.15 on their water bill in 2022. That is a 6% increase over their current billed used at this level.
Four reasons the increase benefits the community
The consultant provides four reasons why the 6% rate increase will be beneficial to Oro Valley:
- Will enable utility to continue operating on a stand-alone basis and independent of general fund assistance
- Will result in financially-healthy utility that has ability to fund operations and capital needs
- Ensures that ratepayers pay only what it costs to provide water service
- Will allow $18.8 million of capital investment to improve quality of service and provide a well-functioning system for future generations
