Buckeye approves water rate increases, cites infrastructure and cost pressures

AG TO URBAN. Building continues on Beloat Road, where irrigation brings life to some of Buckeye's most historic farmland, illustrating how important water is to both development and the area's rich agricultural industry. | Photographed by David Kennard.

Find even more reporting on local water issues in this month's edition of InBuckeye Magazine.

By David Kennard

Buckeye residents and businesses will soon see higher utility bills following Tuesday’s Buckeye City Council approval of new water and wastewater rate structures; the move comes after months of analysis and public outreach.

City officials say the increases are designed to keep pace with rising costs while avoiding sharp spikes, opting instead for a gradual, four-year rate adjustment plan

"We're looking at some approach of a gradualism approach where we will incrementally raise rates to keep up with the cost of either inflation or just the cost of performing our service," said Terry Lowe, Buckeye’s Water Resources Director. 

Modest increases for most residents For the average household, the impact is expected to be relatively moderate, according to discussion at Tuesday’s meeting. 

City estimates show a typical residential customer — using about 6,000 gallons of water and generating 4,000 gallons of wastewater per month — will see an overall increase of roughly 5% on their combined bill. 

Water rates are expected to rise about 4% in the first year, with slightly higher increases in later years, while wastewater rates will increase at a faster pace overall.

Why rates are going up

City staff pointed to several key factors driving the need for higher rates:

Rising electricity costs, a major expense in water delivery

• Increased costs for treatment chemicals and materials
• Ongoing staffing and operational expenses
• The need for preventive maintenance and system upgrades

Officials also emphasized the importance of long-term investment, with a goal of reinvesting 2% to 5% of the system’s total asset value annually to maintain pipes, plants and other infrastructure.

Key Expense Drivers:

Operational Expenses: Costs include personnel, electricity, chemicals, and both preventive and corrective maintenance.

Asset Management: The city manages over a billion dollars in assets. While the industry standard is to reinvest 2-5% of asset value annually, the proposed rates will gradually work toward this level to fund less frequent, large-scale maintenance and replacement projects.

Water Portfolio Development: A portion of the rates will fund the ongoing growth and diversification of the city's water portfolio to support long-term demands and maintain flexibility.

Major acquisitions, like Harquahala, will be funded separately through bonding.

Push for fairness and conservation

A major component of the new rate structure is a shift toward what city leaders describe as a more equitable system.

Wastewater rates, in particular, will increase by about 7% overall, partly to better align what commercial users pay with how much they use the system. Historically, officials said, some business customers paid less than their proportional share.

The city is also expanding tiered pricing, meaning customers who use more water will pay higher rates per gallon at upper usage levels.

The steepest increases will apply to the highest tiers, a move intended to encourage conservation in a fast-growing desert community.