No water rate increase for OV customers in FY 2012-13 | Business
At a meeting last week, the Oro Valley Town Council announced there would be no water rate increase for Oro Valley Water Utility customers, during the next fiscal year.
The announcement came at the recommendation of the Water Utility Commission after a thorough review of the annual Water Rates Analysis Report.
“We are very fortunate that previous Councils had the courage and foresight to purchase the water companies and allow us to be vigilant in the governance of this precious resource,” said Councilmember Joe Hornat, Council liaison to the Water Utility Commission, said in a recent news release. “Through its consistent and excellent management of our resources, the Oro Valley Water Utility has ensured that we remain in control of our water fate.”
The Oro Valley Water Utility was able to give the ‘no rate increase’ due to sound fiscal management, closely-monitored operating costs and good stewardship of water resources; this has also allowed OVWU to pay down existing debt and to use long-term storage credits to better manage water resources and reduce financial obligations.
Delivery of Central Arizona Project water (and use of reclaimed water) has reduced Oro Valley’s Central Arizona Groundwater Replenishment District costs. It also has allowed the Town to postpone a $70 million capital investment. Additionally, the refinancing of debt to reduce the annual debt service payments resulted in a $3.4 million savings.
This will be the second consecutive year in which water rates in Oro Valley have not increased.
Although no increase is needed for FY 2012-13, the analysis indicates that nominal rate increases may be necessary in the future.