Phoenix, AZ — In a 7-2 vote, the Phoenix City Council has approved an increase in water rates, set to take effect in October. The decision is driven by the aim to address inflation concerns and encourage responsible water usage in the city. The rate adjustments will be implemented progressively, with an initial 6.5% increase in October (equivalent to approximately an additional two dollars per month for the average user). This will be followed by another 6.5% hike in March 2024 and a more substantial 13% increase scheduled for March 2025.

Alongside these rate hikes, the city of Phoenix is taking steps to conserve water resources by imposing limits on water consumption for both businesses and residents. Currently, customers are allowed a monthly allocation of around 7,500 gallons during the summer months. However, starting in the summer of 2024, this allocation will be reduced to 6,000 gallons per month. Those exceeding this limit will incur an additional charge of $4 per month, effective from October. Furthermore, wastewater service rates will also see increases.

The majority of attendees at the City Council meeting expressed their support for the rate adjustments, emphasizing the significance of ensuring long-term water availability and affordability. However, concerns were raised about the potential short-term financial challenges faced by families amid rising inflation.

Merissa Hamilton, a concerned resident, commented on the punitive nature of water consumption penalties, suggesting the city explore alternative approaches to water conservation.

In response, Phoenix Water Services Director Troy Hayes highlighted a unique aspect of the city's rate structure, where water is included in the base fee, making it more affordable for those who are conscientious about water usage. He acknowledged that the rate changes could pose challenges for lower-income households and noted that the city is expanding eligibility for its assistance programs to address this concern.

The decision to increase water rates aligns with efforts to address the water shortage on the Colorado River, prompting cities in the Phoenix area to adopt drought-contingency plans and take proactive measures to manage water resources effectively.