| Phoenix Water Rates are Going up in March |
Phoenix Water Rates are Going up in March
Average residential customer will pay $1.59 more per month for water and sewer service; another increase approved for 2017
City leaders voted 5-4 on Wednesday to raise water rates for about 430,000 households and businesses with city utility service. The water- and sewer-rate hike, a 2.6 percent increase when combined, will be followed by an additional 2 percent increase in 2017. Phoenix has not increased water or sewer rates for three years, but, city officials said, the water system is operating at a loss.
The city avoided increasing its rates in recent years by drawing down its water reserve funds and refinancing bonds to save money, according to the Finance Department. Before 2012, increases had been commonplace since the early 1990s. Water Services Department Director Kathryn Sorensen said the increase is primarily needed so the city can maintain its sprawling utility infrastructure, particularly thousands of miles of aging water pipelines. She said costs, such as electricity and raw water, also are increasing.“We need a rate increase to maintain our infrastructure," Sorensen said. "It’s really as simple as that." The City Council approved the rate hike after a tense debate. Mayor Greg Stanton and council members Thelda Williams, Daniel Valenzuela, Kate Gallego and Laura Pastor voted yes. Councilmen Jim Waring, Sal DiCiccio, Bill Gates and Michael Nowakowski voted against increasing rates. Waring and DiCiccio questioned whether residents could trust the city's claim that it needs more revenue to maintain the water system. DiCiccio compared the situation to a controversial rate increase in 2010, saying residents were misled when they were told the city needed an increase. "This is a sham and a scam," DiCiccio said in a statement released after the vote. "The same arguments were used in 2010 and it turned out to be a lie. The rate increases stopped when the public learned the truth." This year's increase, which will bump the average residential bill to about $59.77 per month, could signal a return to annual rate increases. In addition to the 2017 increase council members approved on Wednesday, city officials have projected rate hikes could be needed through 2021. Valenzuela said the 2016 and 2017 increases are needed because water pipes are bursting as the city's infrastructure ages, calling the decision a "public-safety" issue. “I’m hoping that responsibility rules the day here," he said before the vote. |
Dustin Gardiner, The Republic | 
The average Phoenix resident will pay $1.59 more per month on their water and sewer bill starting in March.