Proposed water and environmental services rate increases, 2023-2027


On October 18, 2022, the Mayor and Council of the City of Tucson gave notice of their intention to increase rates and fees for water and environmental services for the fiscal years 2023-2027.


A series of information sessions was held across the City of Tucson’s six wards and a public hearing will be held on January 10, 2023 after which Mayor and Council will vote on the proposed adoption of the rate plan. If adopted, the proposed rate change plan would go into effect 30 days later.

Tucson Water Proposed Rate Adjustments

Tucson Water is now in the third year without a rate increase. Approval of the previous 2020 rate increase proposal was put on hold due to the emergence of the Covid 19 pandemic. However, the measures cannot be sustained indefinitely due to the increased cost of aging infrastructure and swelling cost of water as a result of the drought declaration on the Colorado River.


Tucson Water proposed rate adjustments:


1) Increase the CAP Surcharge (Water Resource Fee) by $0.30/Ccf rom $0.70/Ccf to $1.00/Ccf effective February 13, 2023.


2) Continue a multi-year rate cycle over four years at 5.5% revenue increases each year effective at the City's start of fiscal year (July 1st).

FY 2024 5.5%

FY 2025 5.5%

FY 2026 5.5%

FY 2027 5.5%


Low-Income Assistance will continue to be provided to qualified customers.


Links:

Tucson Water FY 2023-27 Proposed Rate Schedules

Agenda Materials for Mayor and Council Meeting of October 18, 2022 (see Item #10)

Environmental Services Proposed Rate Adjustments

Environmental and General Services (EGSD) is a self-supporting enterprise fund of the City of Tucson with rates and fees based on cost of service. The monthly residential rate for services was last increased in 2011. A recent cost of service study indicates that a rate increase is necessary to maintain current levels of service and ensure the department can meet future costs required for landfill closure and groundwater protection.


Over the last 12 years EGSD has implemented operational changes to reduce costs and has deferred capital improvement projects, however, with new challenges every year, the ES Fund has become unsustainable. The proposed rate increases would be implemented on or after February 13, 2023.


Proposed Residential Collection Fees:


Current Rate Proposed Rate 2023 Proposed Rate 2024

Standard 95 Gallon Cart $16.75/ month $20.00/ month $23.00/ month

Shared Alley Container $16.00/ month $19.27/ month $22.25/ month


-or-


Current rate may be adjusted up to $6.25 over the next four calendar years.

The $12.00 per month Low-Income Assistance Credit (LIAC) will continue to be provided to qualified customers.


Commercial Collection Service Fees, Tucson City Code, Chapter 15-33.3:


A 10% across the board cost adjustment is proposed for all commercial fee schedules with an effective date of February 13, 2023. The last commercial rate increase was adopted in 2016.


Disposal Service Fee (Landfill), Tucson City Code, Chapter 15-34.7:


A $3.00 per ton rate adjustment is proposed for the disposal of commercial waste at the Los Reales Sustainability Campus, with the effective date of February 13, 2023. The last landfill rate increase was in 2011. There is no proposed landfill rate adjustment for self-service residential customers.


Current Rate Proposed Rate

Commercial Waste $32.00/ ton $35.00/ ton

Disposal Fee


Links:

Agenda Materials for Mayor and Council Meeting of October 18, 2022 (see Item #9)