Inflation has driven costs up for many everyday items. We see evidence of it on our grocery bill and at the gas pump. The impact has spread through many industries, including the water industry, with increased costs across the nation in electricity and chemicals used for water treatment. In addition to inflation, the industry also has a shortage of skilled labor which contributes to higher costs, as does the cost of infrastructure improvements. In Phoenix, Arizona, all these factors along with the increased cost of water from the Colorado River system and from the Salt and Verde Rivers, have prompted a proposed water rate increase.

The proposed rate increase would be implemented in three stages: 6.5 percent in October 2023, a second increase of 6.5 percent in March 2024, and an increase of 13 percent in March 2025. The proposal also includes altering the water allowance structure to encourage water conservation, imposing a $4 surcharge for those who don’t conserve water.[1] Last June, the city declared a Stage 1 Water Alert and activated its Drought Management Plan which triggered a public education program that informed the public about the need for conservation. As a result of this and other conservation efforts, the city’s households use 30 percent less water per person than in 1990.[2] The city’s plan to charge additional fees by volume will likely motivate more residents to be conservation-minded.

Although Phoenix’s water rates are considered low compared to other southwestern cities, the increase elicits concerns regarding affordability for low or fixed-income households. The proposed increase goes before the city council this month, and there will be several meetings scheduled for public comment.  The final vote is anticipated in June.

[1] Dominguez, Alexis. “City of Phoenix Considering Changes in Water Rate, Increases for Taxpayers.” Https://Www.azfamily.com, 21 Mar. 2023, https://www.azfamily.com/2023/03/21/city-phoenix-considering-changes-water-rate-increases-taxpayers/.

[2] Resnik, Brahm. “'Make Changes Now': Phoenix Water Users Face Higher Bills If They Don't Conserve.” 12news.Com, 20 Mar. 2023, https://www.12news.com/article/news/local/water-wars/phoenix-water-users-face-higher-bills-if-they-dont-conserve/75-edc86985-1142-4c3b-88d9-c6d935fe0f92.