Tucson Water rates are going up thanks to a higher surcharge tied to water from the Central Arizona Project and a rate hike for industrial and commercial customers, officials say.
The City Council this week announced its intent to raise water rates for Tucson Water customers. The two-fold increases: higher rates for industrial and commercial customers; and a rise in the βWater Supply Fee,β a surcharge on every 100 cubic-feet of water, which funds the the cost of water purchased from the CAP.
The increase would take effect in February. The average Tucson Water customer is likely to see an increase to their bill of about $2 per month from the increased surcharge, says Tucson Water Director John Kmiec.
Under the proposal the council discussed Wednesday, the commercial base rate would increase from $3.43 per hundred cubic feet to $3.59 starting in February. It would then climb to $3.75 in the 2025-2026 fiscal year, and to $3.91 in the 2026-2027 fiscal year, according to City Manager Tim Thomure.
The industrial base rate would rise from $3.50 to $3.66 per hundred cubic feet starting in February. It would climb to $3.83 in the 2025-2026 fiscal year, and to $3.99 in the 2026-2027 fiscal year, he said.
The cityβs fiscal year runs from July 1 to the end of June.
The city council this week launched the process to raise water rates for residential and commercial Tucson Water customers.
The summer surcharges that commercial and industrial customers pay also are set to increase if the council approves the proposal.
Meanwhile, the recommended plan calls for the water supply fee to increase from $1 to $1.25 per hundred cubic feet beginning in February.
The rate increases are an attempt by the city to keep up with the Central Arizona Project, which adopted rate increases and will begin charging the city more for water, according to a memo from Thomure.
An additional 25-cent increase to the supply fee will likely be necessary in fiscal year 2027-2028, Thomure said in his memo. If the city were to leave the surcharge at $1 and not impose either 25-cent increase, it would stand to run a net deficit of roughly $76 million by the end of the 2029-2030 fiscal year, according to the memo.
The council approval to move on the plan Wednesday was only for the two rate increases and the surcharge, Kmiec said. The 2027-2028 fiscal year bump could happen to keep pace with projected CAP costs, but that isnβt certain, he said.
The council is scheduled to hold a public hearing on Dec. 10, with adoption of the new rates expected to happen the same day.
