Council Presentation 5.05.26 Rate Adoption_Final.pdf

City Council Meeting:
Utility Rate Adoption
Terry Lowe, Water Resources Director
Jared Askelson, Deputy City Manager
May 5, 2026
1

Agenda
• Rate Development Timeline
• Outreach Efforts, Metrics, and Feedback
• Recommended Rate Framework
• Expense Drivers 
• Recommended Rate Structure and Rates
o Water Utility 
o Wastewater (Sewer) Utility
o Customer Bill Comparisons
o Other Provide Comparisons 
2

Timeline
• Citizen Water & Wastewater Rates Committee (WRC)
• July – September 2025: Bi-Weekly Meetings
oPublic Outreach Approach 
oDeep Dives into each Utility’s Operations & Asset Demands
oUtility Rate Structure Analysis
oComparisons to other Utility Providers
oUtility Rate and Enterprise Fund Analysis 
oRecommendations 
• Oct. 9th, 2025: Voted on Recommended Rate Cycle, Structure, 
Fees
3

Timeline
• October 2025
• Media campaign
• EOB, social media, 
informational flyers
• November 2025
• Community Outreach Meetings 
Held
• Rate Discussion Videos 
Released
• December 2025
• Meetings with HOAs 
• January 20, 2026
• Council Workshop
• February 3, 2026
• NOI
• Post NOI Outreach Begins
4

Post NOI Outreach *as of 4/23/26
• Attended Six Events:
• 367 Packets Distributed
• 4 Presentations to 296 Customers
• 22 Interactions
• 66,799 Print & Digital Bill Inserts
• 62,225 Tyler Notify Texts & Emails
• 1,100 NOI Flyers & Rate Packets 
Distributed at City Facilities & All Faith
• 335 Customer Emails 
responses from:
• 279 – Tyler Notify
• 14 – Social Media
• 26 – Contact Us Form
• 16 – Unknown Source
• 79 Social Media Posts:
• 66,457 People Reached
• 115,593 Egagements
5

Customer Feedback
• Majority of feedback requested additional clarifying information 
on the new rates.
• “Increase in rates won't kill me like I was assuming - thank you for 
making info clearer to me.”
• “What resources does the City of Buckeye offer to people who 
can't afford to pay their bills? Do Seniors get help?”
6

Recommended Rate Framework
• Gradualism
• Rate changes will be steady and incremental
• Four-year rate plan
• WRC had recommended five-year plan
• New rate structure
• Incentivize conservation
• Fairness to customers
7

Expense Drivers
8
Operational Expenses
• Personnel, Electricity, Chemicals
• Preventative and Corrective Maintenance Activities
• NEW Asset Management Budget (Major Rehab and Replacement)
•
Reduces Unplanned and Expensive Emergencies
•
Optimizes Operational/Asset Efficiency
•
Reduces Asset Lifecycle Costs
•
Improves Asset Reliability
•
Puts Operations in Proactive vs. Reactive Mode
•
Follows Industry Standard Practices and Manufacturer Recommendations

Expense Drivers
9
New Water Portfolio Budget
• Smaller, Routine Water Asset Acquisitions
• Building Passive Reserve Supplies for Future Activation
•
Supports Local Control, Pledged to DAWS/ADAWS 
•
Offsets Groundwater Uses
•
Negotiate Priority Supplies
•
Offset CAGRD Expenses
•
Are a Hedge against Reductions/Losses of Supplies
• A Diverse Portfolio Supports Short- and Long-Term Demands

Recommended
Rate Structures and Rates
10

Water Base Rate Recommendation
*Current rates include $3.05 Replacement Fee for Residential and Potable Landscape
Current Base Rates
Meter 
Size
Residential and Landscape - Proposed Base Rates
Residential*
Potable 
Landscape*
Non-Potable 
Landscape
2026
2027
2028
2029
$35.99 
$29.65 
$22.17 
3/4”
$30.02 
$31.30 
$32.63 
$34.01 
$35.99 
$86.61 
$60.06 
1”
$33.36 
$34.77 
$36.25 
$37.79 
$35.99 
$86.61 
$60.06 
1.5”
$66.51 
$69.34 
$72.29 
$75.36 
$35.99 
$225.92 
$160.19 
2”
$106.46 
$110.98 
$115.70 
$120.62 
$35.99 
$225.92 
$160.19 
3”
$213.12 
$222.18 
$231.62 
$241.46 
$35.99 
$420.94 
$300.36 
4”
$332.96 
$347.11 
$361.87 
$377.25 
$35.99 
$699.53 
$500.59 
6”
$665.73 
$694.02 
$723.52 
$754.26 
$35.99 
$1,396.00 
$1,001.18 
8”
$1,065.20 
$1,110.47 
$1,157.67 
$1,206.87 
$35.99 
$1,396.00 
$1,001.18 
10”
$1,531.39 
$1,596.47 
$1,664.32 
$1,735.06 
11

*Current rates include $3.05 Replacement Fee
Current Base 
Rates
Meter 
Size
Commercial - Proposed Base Rates
Commercial / 
Multi-Family*
2026
2027
2028
2029
$37.40 
3/4”
$70.20 
$73.18 
$76.29 
$79.53 
$111.04 
1”
$78.00 
$81.31 
$84.77 
$88.37 
$111.04 
1.5”
$155.53 
$162.14 
$169.03 
$176.22 
$290.85 
2”
$248.94 
$259.52 
$270.55 
$282.05 
$290.85 
3”
$498.35 
$519.53 
$541.61 
$564.63 
$542.68 
4”
$778.59 
$811.68 
$846.17 
$882.13 
$902.43 
6”
$1,556.71 
$1,622.87 
$1,691.84 
$1,763.74 
$1,801.80 
8”
$2,490.82 
$2,596.68 
$2,707.04 
$2,822.09 
$1,801.80 
10”
$3,580.94 
$3,733.13 
$3,891.78 
$4,057.18 
Water Base Rate Recommendation
12

Residential Usage Rates
per month
Current
Proposed
per kgal
2026
2027
2028
2029
0 – 6k (98.5%)*
$3.93 
$4.77 
$4.97 
$5.18 
$5.40 
6,001– 10k (.6%)*
$4.91 
$5.96 
$6.22 
$6.48 
$6.76 
10,001 – 20k (.84%*)
$6.14 
$7.45 
$7.77 
$8.10 
$8.44 
20,001 -30k (.03%)*
$7.68 
$9.69 
$10.10 
$10.53 
$10.98 
30,001+ (.04%)*
$9.59 
$12.60 
$13.13 
$13.69 
$14.27 
Water Usage Rate Recommendation
* percentage of bills      **prior structure
13

Potable Landscape Usage Rate 
Current
Proposed
per kgal
2026
2027
2028
2029
0 – 50k (75%)*
$6.61**
$7.02 
$7.32 
$7.63 
$7.96 
50,001+ (25%)*
$7.93**
$8.78 
$9.15 
$9.54 
$9.94 
Water Usage Rate Recommendation
Non-Potable Landscape Usage Rate 
Current
Proposed
2026
2027
2028
2029
Per Thousand Gallons
$3.30 
$4.77 
$4.97 
$5.18 
$5.40 
* percentage of bills      **prior structure
14

Commercial Usage Rate
per month
Current
Proposed
per kgal
2026
2027
2028
2029
0 – 10k (50%)*
$8.08 
$9.45 
$9.86 
$10.27 
$10.71 
10,001 – 30k (20%)*
$8.08 
$9.93 
$11.09 
$11.56 
$12.05 
30,001 - 50k (8%)*
$8.08 
$9.93 
$12.47 
$13.00 
$13.55 
50,001+ (23%)*
$8.08 
$9.93 
$12.47 
$14.63 
$15.25 
* percentage of bills      **prior structure
Water Usage Rate Recommendation
15

Water Monthly Impact
Category
Assumptions
Current
*Includes $3.05 
R&R
2026
% Change
Current to 2026
2027
2028
2029
Residential
1” Meter, 6K/month usage
$59.57 
$61.98 
4.0%
$64.61 
$67.36 
$70.22 
Commercial
1” Meter, 15K/month usage
$232.24 
$222.19 
-4.3%
$235.32 
$196.80 
$205.15 
Commercial
2” Meter, 20K/month usage
$452.45 
$442.78 
-2.1%
$468.98 
$334.05 
$348.23 
Landscape
2” Meter, 20K/month usage
$358.12 
$246.89 
-31.1%
$257.38 
$268.32 
$279.73 
Landscape
2" Meter, 500K/month usage
$4,124.92 
$4,407.14 
6.8%
$4,594.44 
$4,789.71 
$4,993.27 
Non-Potable
2” Meter, 150K/month usage
$655.19 
$821.96 
25.5%
$856.89 
$893.31 
$931.28 
Commercial
2” Meter, 800K/month usage
$6,754.85 
$8,188.18 
21.2%
$10,181.78 $11,682.15 $12,177.23 
16

Wastewater Base & Usage Rate Recommendations
Residential Base Rate
Current
2026
2027
2028
2029
(per Meter Size)
≤1” (99.95%)
$28.86 
$39.44 
$42.20 
$45.15 
$48.31 
Res. Usage Rate 
(per thousand gallons)
$2.00 
0
0
0
0
Commercial Base Rate
Current
2026
2027
2028
2029
(per Meter Size)
¾”
$19.12 
$43.50 
$46.55 
$49.80 
$53.29 
1” (37%)
$60.06 
$72.65 
$77.73 
$83.17 
$88.99 
1.5” (11%)
$60.06 
$144.86 
$154.99 
$165.84 
$177.45 
2” (48%)
$160.19 
$231.86 
$248.08 
$265.45 
$284.03 
3” (1.5%)
$160.19 
$464.15 
$496.64 
$531.40 
$568.60 
4” (1.68%)
$300.36 
$725.15 
$775.91 
$830.22 
$888.33 
6” (.55%)
$500.59 
$1,449.86 
$1,551.34 
$1,659.94 
$1,776.13 
Comm. Usage Rate
(per thousand gallons)
$2.51 
$4.00 
$5.00 
$5.72 
$6.13 
17

Wastewater Monthly Impact
*Assumes: Base + Usage Rate of 4 kgal usage 
Category
Assumptions
Current
2026
% Change 
Current to 2026
2027
2028
2029
Residential*
1” Meter, any usage
$36.86 
$39.44 
7.0%
$42.20 
$45.15 
$48.31 
Commercial
1” Meter, 15K/month usage
$97.71 
$132.65 
35.8%
$152.73 
$168.97 
$180.95 
Commercial
2" Meter, 20K/month usage
$210.39 
$311.86 
48.2%
$348.08 
$379.85 
$406.64 
Commercial
2” Meter, 800K/month usage
$2,168.19 
$3,431.86 
58.3%
$4,248.08 
$4,841.45 
$5,188.35 
18

Recommended Bill Comparisons
Residential Bill Totals
1" Meter, 6K Water, 4K Wastewater
Category
Current
Recommended
Water Base
$32.94 
$33.36 
Water Consumption
$23.58 
$28.62 
Sewer Base
$28.86 
$39.44 
Sewer Consumption
$8.00 
$0.00 
Garbage and Recycling
$25.53 
$25.53 
Environmental Fee
$5.00 
$5.00 
Repair & Replacement Fee
$3.05 
$0.00 
Sales Tax
$6.01 
$7.64 
AZ Water Quality Tax
$0.04 
$0.04 
Bill Total
$133.01 
$139.63 
Dollar Amount Increase
$6.62 
Percentage Increase
5.0%
19

Recommended Bill Comparisons
Commercial Bill Totals
1" Meter, 15K Usage
Category
Current
Recommended
Water Base
$107.99 
$70.20 
Water Consumption
$121.20 
$144.15 
Sewer Base
$60.06 
$72.65 
Sewer Consumption
$37.65 
$60.00 
Environmental Fee
$5.00 
$5.00 
Repair & Replacement Fee
$3.05 
$0.00 
Sales Tax
$22.06 
$20.40 
AZ Water Quality Tax
$0.10 
$0.10 
Bill Total
$357.11 
$372.50 
Dollar Amount Increase
$15.39 
Percentage Increase
4.3%
20

Recommended Bill Comparisons
Commercial Bill Totals
2" Meter, 20K Usage
Category
Current
Recommended
Water Base
$287.80 
$248.94 
Water Consumption
$161.60 
$193.80 
Sewer Base
$160.19 
$231.86 
Sewer Consumption
$50.20 
$80.00 
Environmental Fee
$5.00 
$5.00 
Repair & Replacement Fee
$3.05 
$0.00 
Sales Tax
$42.54 
$41.64 
AZ Water Quality Tax
$0.13 
$0.13 
Bill Total
$710.51 
$801.37 
Dollar Amount Increase
$90.86 
Percentage Increase
12.8%
21

Recommended Bill Comparisons
Commercial Bill Totals
2" Meter, 800K Usage
Category
Current
Recommended
Water Base
$287.80 
$248.94 
Water Consumption
$6,464.00 
$7,939.20 
Sewer Base
$160.19 
$231.86 
Sewer Consumption
$2,008.00 
$3,200.00 
Environmental Fee
$5.00 
$5.00 
Repair & Replacement Fee
$3.05 
$0.00 
Sales Tax
$628.67 
$761.96 
AZ Water Quality Tax
$5.20 
$5.20 
Bill Total
$9,561.91 
$12,392.16 
Dollar Amount Increase
$2,830.26 
Percentage Increase
29.6%
22

Recommended Bill Comparisons
Primarily HOAs
Landscape
2" Meter; 1,100,000 Usage
Category
Current
Recommended
Water Base 
$225.92
$106.46
Water Consumption
$8,709.80
$9,566.74
Backflow Admin.
$5.00
$5.00
Environmental Fee
$5.00 
$5.00 
Repair & Replacement Fee
$3.05 
$0.00 
Sales Tax
$832.24
$900.54
AZ Water Quality Tax
$0.72
$0.72
Bill Total
$9,781.72
$10,584.45
Dollar Amount Increase
$802.73
Percentage Increase
8%
23
Landscape
2" Meter; 200,000 Usage
Category
Current
Recommended
Water Base 
$225.92 
$106.46
Water Consumption
$1,572.80
$1,667.53
Backflow Admin. Fee
$5.00
$5.00
Environmental Fee
$5.00 
$5.00 
Repair & Replacement Fee
$3.05 
$0.00 
Sales Tax
$168.49 
$165.91
AZ Water Quality Tax
$0.13
$0.13
Bill Total
$1,980.39
$1,950.04
Dollar Amount Increase
-$30.36
Percentage Increase
-2%

Recommended Bill Comparisons
* Liberty Application with ACC
$0
$20
$40
$60
$80
$100
$120
$140
Avondale
Peoria
Surprise
Glendale
Buckeye
Buckeye
Liberty*
EPCOR
Goodyear
Monthly Residential Total
1” Meter, 6K Water, 4K Wastewater
Water
Wastewater
05/2025
06/2025
07/2024
06/2025
(Current)
(Rec)
09/2025
01/2022
12/2025
24

Next Steps
• June 4th: New Rates Go Live
• Future rate increase on 1/1/27, 1/1/28, and 1/1/29
• Annually Evaluate Budget & Rates
25

Questions?
26