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Queen Creek council approves notice to set May public hearing on proposed 15% water rate increase

March 06, 2025 | Queen Creek, Maricopa County, Arizona


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Queen Creek council approves notice to set May public hearing on proposed 15% water rate increase
The Queen Creek Town Council voted unanimously to approve a notice of intent to set a public hearing on a proposed 15% increase to monthly water rates. The notice starts a 60‑day public notice period ahead of a May 7 hearing; if the council later adopts rates, state law requires a 30‑day waiting period and staff said the first bills reflecting a final increase would be mailed the week of July 29.

Deputy Town Manager and Chief Financial Officer Scott McCarty described the request as an immediate step to stabilize the utilities fund and to meet debt coverage requirements tied to an $85 million loan tied to water supply purchases and infrastructure. "This item tonight is to start the formal process of, having a 15% rate increase to our monthly water bill," McCarty said during his presentation.

Who will be affected: Staff said the bulk of the impact would fall on single‑family residential customers. Of the $4.3 million in expected additional revenue from the proposed increase, roughly $3.0 million would come from single‑family homes. The presentation estimated a typical customer now pays about $387 annually for water and estimated most single‑family customers would see increases in the range of $3–$6 per month assuming consumption patterns do not change.

Public outreach and responses: Constance Helen Wilson, the town’s communications and marketing manager, briefed council on outreach: the rate landing page had about 1,200 views in the first two weeks and a social video had nearly 12,000 views; the town also sent targeted emails to impacted customers (79% open rate for that mailing) and had received a small number of direct responses to the online feedback form. Council members asked staff for additional breakouts by account type and for HOA‑level totals.

Council action: A motion to approve the notice of intent was made and seconded and passed unanimously; council members present recorded six yes votes. Staff will publish the notice, continue outreach and return to council for the May 7 public hearing and final rate decision.

What staff said next: McCarty said the rate action is intended to preserve financial stability while staff complete a more comprehensive rate study and related policy discussions. The town also highlighted that a separate property tax‑based groundwater replenishment charge (the CAGRD/CAGRID component described in the presentation) has been reduced in recent years, which staff said offsets some of the net effect for certain customers depending on when a home was built.

Ending: Council members said they want additional data for large customers (HOAs, school districts and other high‑use accounts) before the May hearing, and staff agreed to provide account‑level breakout information during the 60‑day notice period.

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