Tucson City Council Proposes Hike in Water Rates and Camping Ban in Washes

Tucson Water rates may rise as the Central Arizona Project increases costs for delivering the city’s share of the Colorado River. The Tucson City Council is expected to vote on a “notice of intent” to implement the increase during its upcoming meeting on Tuesday. This step is necessary before the actual rate hike is scheduled for approval in December, with new rates taking effect in February.

A 50-cent per month increase is vital to prevent a projected $75 million shortfall for Tucson Water, essential for purchasing the city’s allotment by fiscal year 2030. If the proposal is approved, commercial and industrial water rates are also set to rise accordingly.

Specifically, commercial rates will increase from $3.44 to $3.91 per hundred cubic feet by fiscal year 2027, while industrial rates will go from $3.50 to $3.83 in the same period. Additionally, the summer surcharge for water usage will rise from $1.14 to $1.30 for consumption exceeding 101 percent of winter-based use.

While the council raised water rates in 2023, those recent adjustments applied only through fiscal year 2024. Thus, this proposed hike essentially reinstates prior conditions. The rationale behind this increase is straightforward: Tucson Water operates as a self-sufficient entity reliant on revenue generated from customer bills.

It’s imperative to note that Tucson Water revenues are not allocated to other city programs. According to state law, rate increases can only occur if deemed “just and reasonable,” a definition the courts restrict to essential water provision. Therefore, funds cannot legally be redirected to finance parks or transit subsidies.

In a separate issue, the council is revisiting its involvement with the Regional Transportation Authority (RTA) as it plans for a 20-year cycle of investment. Skepticism has surrounded Tucson’s role in the RTA since the entity was established via voter approval in 2006.

Currently, Tucson receives only half of the revenue generated by a county-wide half-cent sales tax, which is at odds with the fact that two-thirds of the revenue comes from within the city. RTA board chairman Ted Maxwell is negotiating a compromise that could improve Tucson’s financial share.

The Eller College of Business Management has provided revenue projections over the next two decades for the RTA’s half-cent sales tax, estimating potential collections of $2.4 billion under a pessimistic outlook and $2.8 billion under a baseline scenario. Maxwell’s proposal aims to allow the city to retain revenue above the pessimistic forecast while setting aside funds for infrastructure improvements.

All of this hinges on the city’s willingness to commit to this revised funding plan, with a community discussion planned for this Fall. Should the proposal gain public support, it will transition to a ballot question for voters next year, anchoring momentum toward regional collaboration.

The council is also set to vote on an ordinance to prohibit camping in local washes. This decision follows recent clarity from the U.S. Supreme Court regarding a city’s authority to restrict homeless individuals from sleeping in public spaces. Concerns about public safety and concerns about wash flooding are contributing factors to this legislative push. Nevertheless, the proposal underscores the ongoing challenges facing those without shelter, as local government seeks more effective long-term housing solutions.

Additionally, a study session will occur to discuss potential changes for hookah bars, addressing concerns raised by the Tucson Police Department regarding incidents at these establishments. The recommended action would align closing times for hookah lounges with regular bars, potentially due to the disproportionate number of violent events reported in the past.

Finally, the council will consider endorsing a proposal for the establishment of the Santa Cruz River National Urban Wildlife Refuge, a designation that would limit development and could facilitate funding for local water treatment facilities. This initiative reflects a broader commitment to conservation efforts among cooperating organizations across Pima and Santa Cruz counties.