Title
Public Hearing - Proposed Wastewater Service Revenue Increase
Description
Request to hold a public hearing to receive comments on proposed amendment to Sections 28-39 and 28-92 of the Phoenix City Code to provide for a change in the rates for wastewater services. This hearing is held in accordance with Arizona Revised Statute 9-511.01.
Report
Summary
Phoenix wastewater rates remain among the most affordable in major cities throughout the Southwest. The impact of the proposed rate modification to the average single-family home is estimated to be approximately $6 over the three-year period starting on March 2023.
Public Outreach
Information detailing the proposed water revenue increase of 20 percent over a three-year period of calendar years 2023, 2024, and 2025, is available to the public in the City Clerk Department at the City of Phoenix, located at 200 W. Washington St., 15th Floor. Information is also available on the City of Phoenix website: https://www.phoenix.gov/waterrates.
During the months of March, April, May and June 2023, information on the proposed rate increase was mailed to all water account holders through the City Services bill, and PHX at your Service (PAYS). A total of 35 community outreach meetings were held to present information and obtain feedback, and numerous media interviews and social media posts occurred (Attachment A). The Citizens' Water and Wastewater Rate Advisory Committee recommended the proposed revenue increase, citing that it would generate the revenue required to maintain reliable and cost-effective water services, and invest in the future of the City of Phoenix. The rate revenues proposed will offset financial pressure imposed by substantial increases in costs to supplies and materials due to inflation and maintain an adequate fund balance to retain a AAA bond rating. (Attachment B).
Concurrence/Previous Council Action
On April 18, 2023, the City Council heard the Notice of Intention to consider an increase in wastewater rates and set a public hearing date to consider the proposed increase.
On Jan. 26, 2023, the Citizens' Water/Wastewater Rate Advisory Committee recommended:
- Wastewater rate revenue increases of 6.5 percent effective October 2023, 6.5 percent effective March 2024, and 7 percent effective March 2025.
On Feb. 15, 2023, the Transportation, Infrastructure, and Innovation Subcommittee:
- Heard information on the proposed rate revenue increase that included updates on the financial plans, inflationary pressures, and advanced water purification.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services and Finance departments.