The city of ÃÛèÖÖ±²¥ took the first step last week in passing a rate increase for ÃÛèÖÖ±²¥ Water customers, a move that could be one of a series of rate or fee hikes to hit residents during the next fiscal year.
While the City Council unanimously opted to start the public hearing process regarding the water rate changes — and cap an increase at no more than 5.5% for the upcoming fiscal year, or a maximum increase of $2.50 a month for the average customer — council members have expressed concern over what other rate or fee increases could do to the taxpayer wallet.
In recent weeks, the council has been hearing from departments regarding needs and priorities as the city prepares its next fiscal-year budget. Those discussions have included talk of potential fee increases in various departments, including changes to parks and recreation, development impact and recycling fees.
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“We have to be very careful about unilaterally raising fees in every department every year,†Vice Mayor Paul Cunningham said. “You don’t want to nickel-and-dime people — especially people who might be struggling.â€
City Manager Michael Ortega stressed that no other decisions have been made yet regarding increases, outside of ÃÛèÖÖ±²¥ Water’s rates, which potentially could stay the same amount they’re currently at. He labeled the discussions as “data-gathering†and said while the series of increases might seem out of the ordinary, the discussions are ones the city has “every year.â€
He called any possible fee or rate increases “the last thing on the list†because “nobody wants to do that†and acknowledged the potential burden on taxpayers.
“The bottom line is that the costs for operations of government go up just like the cost of everything else,†he said.
Challenges can bring fee increase
Fee and rate increases are proposed to offset each department’s challenges, Ortega said. For instance, the water department has faced a thread of issues, including costs associated with cancer-causing PFAS compounds from the city’s water system; the environmental services department has to overcome increased costs that are the result of the collapse of the global recycling market; and the Planning & Development Services Department has to deal with cost recovery associated with sending inspectors and reviewing building plans.
Ortega said the council will be provided an “exhaustive, detailed analysis†for each department, adding that the council can approve changes in fees or rates at any time, not just during the budget process.
“If the council wants to go down that path, they can mull it over and compare that potential increase to the impact of service, the impact on the community as a whole,†he said.
Those discussions have sparked distress from various members of the council, including Cunningham. He said “our concern is to the citizen taxpayer,†and that taxpayers generally don’t care that their bill goes up one amount in one department and another amount in another — just that it goes up.
“Of course we’re going to listen to each department tell us what they need,†said Cunningham, who added the city does have some leeway, arguing that some fees, including recycling, are lower than peer cities like Phoenix.
That move to examine the fees and rates holistically has also garnered the support of Mayor Regina Romero, who said during last week’s study session that what she’s looking at is “giving me a little heartache.â€
“I see the entirety of what we have in front of us is a lot for working families,†she said, adding that “some departments need it more than others.â€
Councilman Steve Kozachik agreed, saying that “all departments are not created equal,†and that he would hope to prioritize ÃÛèÖÖ±²¥ Water.
“The community needs a clean, safe and reliable water system,†he said.
“Death by 1,000 paper cutsâ€
Kozachik also said the discussion should include Pima County’s pay-go road infrastructure plan, which isn’t part of the city’s budget plan but does burden city taxpayers. He has referred to the comprehensive change in taxpayer burden in the past as “death by 1,000 paper cuts,†agreeing that the city should “look at it comprehensively†and that it did in previous years.
“It would be a whole lot more productive if we go back to that process where we do get a comprehensive list of department needs,†he said.
The council directed Ortega to put together a package of all the pieces, a move that Ortega said he’s “very supportive of.†Even if the department needs are not the end of the conversation, he said.
“I think that’s the best way to approach all of these topics because it gives us an opportunity to not just look at what I’ll call the micro impact on a department or on a particular service, but a macro impact on the community as a whole,†he said. “I think it’s very astute to look at it in a holistic manner.â€
Asked if any of the fees are more important than the others, Ortega said they all “have their level of importance and priority.â€
