3-year phased hikes for Oro Valley stormwater | News

Stormwater utility fees are going up in Oro Valley effective July 1.

Three annual increases, approved unanimously by the Oro Valley Town Council on Jan. 14, are intended to take the fees paid by a residential user from $4.50 to $6.50 a month. They are the first stormwater utility rate hikes since 2016.

Residential increases are pegged at 67 cents, or 15%, to $5.17 per month on July 1; 67 cents, or 13%, to $5.84 per month on July 1, 2027; and 66 cents a month, or 11%, to $6.50 per month, on July 1, 2028. The utility has 19,348 residential accounts, according to director Dennis Roberts.

Commercial properties are charged the same rates based on “equivalent residential units,” or ERUs, which are calculated at 4,000 square feet of impervious area. The larger a commercial property, the more it is assessed. The utility has 325 commercial accounts, representing 8,118 ERUs.

When fully levied in July 2028, the adjustments should generate an additional, estimated $691,000 a year, “supporting essential operations, regulatory compliance and capital improvements,” Roberts said.

The utility has an annual operating budget of $1.22 million, spent on personnel, operations, and maintenance. Its most recent capital budget is $367,725.

After an 18-month study, Oro Valley’s stormwater utility commission and staff concluded revenue from the current $4.50 rate is “insufficient to meet program needs and maintain the required 15% reserve threshold.” Costs, particularly for capital improvements, have gone up, Roberts said.

Originally, the utility proposed a one-time, $2 hike. The town council asked that adjustments be spread out.

Dr. Harry “Mo” Greene II thanked the staff “for listening to us, and rolling this out over a number of years.” Moving forward, he asked the utility to bring cost and revenue challenges to council more regularly, “before it becomes overwhelming to residents.” Councilmember Mary Murphy and Vice Mayor Melanie Barrett concurred.

On Oct. 15, the town council adopted a resolution indicating its intent to raise stormwater fees. No public comments against the increases had been received before Jan. 14, Roberts said.

During a public hearing on the increases, one citizen spoke against any tax hikes.

When money is tight, governments “always resort to adding taxes or fees, that’s the easy way out,” Rob Wanczyk told the town council. “Look at other options” in the town budget, among them “different streams of revenues” and ways to cut expenses, “before we go and add taxes or fees and rates.” After analysis, increases “may be necessary, but have you looked at all the options we might have to offset them?”

Greene, the council’s liaison to the stormwater utility commission, said he has watched the commission and staff “work diligently and hard to try to fulfill the criteria Mr. Wanczyk brought forward.

“All of the suppliers have increased their costs for what we use,” Greene said. “In order to keep the town from being flooded, we need some more money.”

Residents are “directly paying for a service you directly receive,” Barrett said. “It is a public safety concern, too.”

Each year, the utility’s capital budget is sufficient to fund “1-2” projects, augmented by grants, federal funds, and partnership opportunities with Pima County, Roberts said.

The stormwater utility has identified “55 large, small and regular-sized projects that are in need of funding now,” Roberts said. “We’re getting to a point we need to think about an increase.”

“It’s very much like insurance,” Councilmember Josh Nicolson said. He pointed to flattening, if not declining, federal and state-shared funds. “After 10 years, it’s definitely due,” Nicolson said.

“This phased approach reflects fiscal responsibility, and ensures the town can meet its stormwater infrastructure needs while maintaining transparency and community alignment,” Roberts wrote in a memo to council. It demonstrates “community responsiveness,” and “ensures compliance with state and local requirements.”