The Camp Verde Town Council adopted increased fees for town water and wastewater services for fiscal year 2023-24 during its Nov. 1 meeting.
Along with the proposed rate increases, town staff recommended that the council increase the current maximum rate cap of $75 for wastewater rates to $85.
At a council meeting on May 24, council and staff stated that the proposed wastewater rate increase was going to be significant and would need to be restructured. Staff also stated that a new well and arsenic removal was needed.
On Aug. 2, town staff and consulting economist Dan Jackson discussed the water and wastewater rate study and long-term financial plan relating to utility rate adjustments with the council. The council subsequently approved the posting of a notice of intent to increase the rates and posted the notice on Aug. 16.
A public hearing was held on Nov. 1 for residents to comment on the proposed rates, fees and service charges.
Jackson argued that utility rates have been increasing by an average of 5% to 6% each year due to factors such as inflation, environmental regulations and increased maintenance costs, and that rates will continue to increase by 4% to 6% per year through 2025.
Jackson claimed that the more money you put into maintaining a system, the higher the rate becomes. He said that rates must be balanced with the desire to keep them low with the need to invest in the system to ensure it operates properly.
Jackson argued that the adjusted rate plan will benefit the town by enabling the town to cover all costs of water and wastewater service, ensuring the financial health of utilities and allowing the town to make a $24 million investment back into itself.
Town staff are considering two possible rate plans: Retaining the current system with annual percentage adjustments, or creating a new system with incentives for residents to use less water. Staff are recommending a five-year rate plan assuming that all costs will continue to increase.
“This is an opportunity for us to continue to invest in our system,” Councilwoman Jessie Murdock said. She clarified that the rate increase is not for profit and that the money will be reinvested in the system.
Councilwoman Robin Godwin likened the rate increase to paying taxes for school even though her kids don’t go to school anymore and haven’t for years. She said she pays those taxes because she cares about the community.
The council unanimously approved the rate increase, which will take effect on Jan. 1.
