Tucson Water Overview

Fiscal Year 2021/22

Mission Statement

To ensure customers receive high quality water and excellent service in a safe, reliable, efficient, and environmentally responsible manner with reasonable, fair and affordable water rates for citizens. Provide the necessary resources to balance the need to maintain Tucson Water's critical infrastructure with the established rates. Above all, to continue to provide excellent customer service, professional development, and continuous process improvement.

Programs

The following programs are included in this department:

Staffing By Program


*Full Time Equivalent Employee (FTE)

Budget By Program



Department Expenses

Budget By Expense Category

Budget By Funding Source

Significant Changes

The adopted budget for Fiscal Year 2021/22 of $295,724,680 reflects a net decrease of $8,115,010 from the Fiscal Year 2020/21 Adopted Budget. Major changes include the following:


  • Increase in road & maintenance streets and water infrastructure expenses by $2,365,610
  • Increase in consultant and survey costs by $1,707,760
  • Increase in salary and employee related expenses by $1,425,040 maily due to increase in starting pay and new additional positions for Green Infrastructure Services
  • Increase in CAP (Central Arizona Project) commodity charges by $1,081,430
  • Decrease in other miscellaneous supplies by $115,000
  • Decrease in other miscellaneous services by $974,510
  • Decrease in debt services cost by $1,302,030
  • Decrease in equipment by $1,420,000
  • Decrease in CAP (Central Arizona Project) capital charges by $1,719,810
  • Decrease in COVID-19 disaster relief funding by $5,445,000

Trends

Water sales are based on the most recent 5-year trends and forecast of development-related revenues (System Equity Fee, CAP Water Resource Fee, and connection fees) consistent with current-year estimates. The Fiscal Year 2021/22 forecast for development-related revenues is relatively flat with revenue levels similar to those in the prior plan. Under the existing rates, water sales revenue is forecasted to continue to decrease during each year of the plan, but at a declining rate slightly slower than the prior plan, although continuing to reflect a downward trend in average annual use per service. Customer account growth in Fiscal Year 2021/22 is expected to increase by less than 1% as compared to Fiscal Year 2020/21 reflecting an approximately increase 750 customers annually. Annual potable sales volumes are projected to decrease at an average rate of about 1.5%. Tucson Water has not noticed a material decline in demand in Fiscal Year 2020/21.

Accomplishments

In partnership with other City of Tucson Departments, Tucson Water completed the buildout of the City of Tucson Development Center. This center provides a one stop shop for those whithin the business and development community to get information related to construction projects. To improve customer service, Tucson Water updated the payment processing system to provide customers with multiple payment options and improve customer access to billing and payment information. This upgrade has increased payment processing efficiency and has elimiated redundant processes and fees.

The department also worked on the Implementation of a new learning management system (Vector Solutions) to assist in providing training content to Tucson Water's employees and tracking and reporting on training status. This system will help ensure training is consistent with water industry standards and other operational training requirements. Tucson Water was awarded Water Loss Control Program grant to monitor and reduce lost and unaccounted for water to below 4%.

Future Objectives

Tucson Water is diligently working on FOCUS 21, the utility’s action plan previously developed to prioritize the utility’s major initiatives.


Specific priorities for 2022 include:

  • Undergoing digital transformation to better support decision-making and drive cost efficiencies that help deliver sustainability.
  • Kick off two major systems implementations to replace the outdated billing system and unsupported asset management system.
  • Establish the Green Stormwater Infrastructure Program.
  • Continue to protect public health from water quality threats.
  • Complete the One Water 2100 Master Plan.
  • Reorganize and reenergize engineering functions to improve project delivery, optimize capital investments, and enhance career opportunities for staff.