Queen Creek council to set public hearing on water rates

The Queen Creek Town Council will be voting on setting a date for a public hearing on its proposed 15% water rate hike.

At its Wednesday meeting, the council will be moving to approve a 60-day notice of intent to hold the public hearing at 6:30 p.m., Wednesday, May 7 in the town hall council chambers.

Town staff introduced a 15% increase to water rates at the Feb. 19 council meeting. The increase is meant to offset the costs of providing water to the rapidly growing city.

Queen Creek has not instituted a water rate hike since 2010.

During the past 10 years, the town’s water utility has grown to a service area of about 70 square miles — larger than the town’s boundary — and has 40,000 accounts.

That tremendous growth has resulted in the town acquiring other water companies. At the same time, the cost of constructing infrastructure, as well as the purchase of water and groundwater extinguishment credits, has risen, causing the gap between revenue and capital expenses to widen.

Monthly water billings produce about $30 million annually and a 15% rate hike would increase revenues by about $1.3 million.

Of these 40,000 residential water accounts, about 25,000 are expected to see a monthly increase in their water bills of $3 to $6.

If approved, the new rates will be effective on June 6 or June 18, and will be reflected in residents’ water bills beginning with the July 29 billing cycle. Sewer rates would not be affected by the increase.

In order to increase water rates, the town must first provide a written public notice for 60 days regarding the intent to increase rates and include data that supports the proposed fee.

If the notice is approved at the council meeting, a copy of the notice will be published in the newspaper, not less than 20 days before the public hearing date as required.

After the 60-day notice period, the town would conduct the public hearing.

“There’s a lot involved from the acquisition of water to replenishment to all of the infrastructure we build,” Mayor Julia Wheatley said during the Feb. 19 meeting. “I know this council and the previous councils have prided ourselves on the fact that we are fiscally responsible.”

Property taxes in the town have remained frozen since the council approved a five-year freeze in 2022. The town calculates the freeze, other tax cuts and eliminations, and debt payoffs and refinancing have resulted in more than $157 million in savings. Last year, the council eliminated the 0.25% Town Center sales tax and millions of dollars in debt have been retired.

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