In a recent government meeting, city officials discussed the renewal of a significant water contract involving the Diamondback Golf Course and the Thompson Golf Group. The proposed agreement would allow the new owner to purchase 150 million gallons of reclaimed water annually at a rate of 52 cents per 1,000 gallons, the same rate established 25 years ago.
City staff emphasized that this effluent water, which is treated wastewater, is crucial for irrigation purposes, helping to conserve potable water resources for residents. The contract is expected to generate approximately $75,100 in revenue over its 25-year term. Officials noted that the rate is considerably lower than those charged by other cities, with some charging over a dollar per 1,000 gallons.
Concerns were raised by council members regarding the long-term implications of maintaining the same rate, especially as residential water fees have been increasing annually. Some officials argued that if the city is tightening budgets and raising rates for residential and commercial water services, it may be prudent to reassess the rate for reclaimed water as well. They highlighted the potential disconnect in offering a long-standing discount to a commercial entity while residents face rising costs.
The discussion also touched on the importance of the effluent water program, which aims to reduce the use of municipal treated water by providing an alternative for irrigation. The city has provisions in place to reclaim this water during drought conditions, ensuring that it can be redirected as needed.
Ultimately, the council voted to reopen the discussion on the contract, allowing for further examination of the rate structure and its implications for both the city and its residents. The decision reflects a broader consideration of equitable water pricing amid changing economic conditions.