2025 WRC Rate Recommendation Report.docx

2025 CITIZEN WATER & 
WASTEWATER RATE 
COMMITTEE 
RECOMMENDATION 
October 7, 2025 
City of Buckeye Water Resources Department 
Abstract 
This report is prepared based on the findings of the City of Buckeye Water Resources 
Department staff and the 2025 Citizen Water & Wastewater Rate Committee members.

I. 
Introduction: 
 
The City of Buckeye has completed a comprehensive rate study for its water and wastewater utilities. 
Beginning July 17, 2025, city staff have presented the findings of this study to the 2025 Citizen Water 
and Wastewater Rate Committee (WRC). These presentations included a thorough review of utility 
operations, cost drivers and financial forecasts, comparative rate and structure analyses, and a range 
of potential rate and structural adjustment options. 
 
II. 
Background: 
 
The City of Buckeye, through its Water Resources Department, owns and operates the municipal water 
and wastewater systems, currently serving approximately 33,000 water customers and 36,000 
wastewater customers. 
 
In 2013, the Buckeye City Council approved a rate increase, its first since 1986.  These adjustments 
were scheduled over a three-year period (2015–2017), with a commitment to conduct a new rate study 
at the conclusion of the cycle. The initial increase was implemented in 2015. However, the 2016 
increase was reduced, and the 2017 increase was ultimately canceled in response to community 
concerns over affordability. 
 
In 2020, rather than further increasing rates, Council implemented a $3.05 monthly “Repair and 
Replace” fee to fund asset management within the water utility. Since then, no additional rate 
adjustments have been made. 
 
The current rate study, in collaboration with the WRC, aims to establish long-term financial stability 
for the city’s utilities by: 
 
Establishing a consistent rate review and adjustment cycle. 
 
Updating the rate structure to more accurately allocate costs across four customer classes: 
Residential, Commercial/Multi-Family, Potable Landscape, and Non-Potable Landscape, 
based on their system usage and demand impacts. 
 
Recommending feasible rate adjustments that help the utility enterprise funds meet their 
revenue demands while minimizing financial burden on customers. 
 
III. 
Rate Options: 
 
a. No Adjustment 
City staff presented the “No Adjustment” scenario to ensure full transparency and to allow for its 
proper evaluation by the WRC. However, this option is not viable. 
 
As outlined during WRC meetings and confirmed by the Finance Department, the water and 
wastewater enterprise funds are projected to fall into significant deficit as early as July 1, 2026—
and no later than July 1, 2027—if no adjustments are made.  This shortfall could be accelerated by 
variables beyond staff control, including emergency repairs due to aging infrastructure, severe 
weather events, and other unforeseen operational demands.

Recommendation: Not feasible. City staff do not recommend this option. 
 
b. Immediate Catch-Up 
The Immediate Catch-Up option proposes rate increases large enough to immediately bring the 
water and wastewater enterprise funds into financial balance with industry standards for 
operational reinvestment into the system.  Under this model, debt is leveraged, both the revenue 
requirements and emergency reserves would be met in the first year, and the asset management 
program would be fully funded. 
However, given the potential increase, existing city resources lack the internal capacity to 
implement a fully funded asset management program effectively.  While the additional revenue 
would allow for the reinvestment needed, staffing growth across several departments are not 
available to execute on the procurement of necessary activities.  Additionally, this approach would 
place significant financial strain on customers. 
Recommendation: Not recommended. The financial impact on customers is deemed excessive, 
and the city lacks current capacity to implement this approach efficiently. 
c. Cycle 1 Catch-Up 
This option utilizes a longer timeline to reduce the immediate financial impact seen in the 
Immediate Catch-Up model.  Under Cycle 1 Catch-Up, rate adjustments are designed to bring the 
utilities to full revenue requirements by the end of the first five-year cycle. 
Debt would be strategically used in Years 1–4 to compensate for shortfalls, allowing time for 
gradual implementation.  However, even with this mitigation strategy, the typical residential 
customer would experience an increase of approximately $30 per month, considered too 
burdensome for most households. 
Recommendation: Not recommended due to the significant customer impact despite debt-based 
relief. 
d. Gradualism  
The Gradualism approach takes a long-term, incremental path to achieving financial stability. 
Instead of fully closing the revenue gap in the near term, this option focuses on controlled growth 
in operations, targeted use of debt, and minimized customer impact. 
Key elements of the Gradualism model include: 
 
Extended timeline for achieving full revenue requirement to meet full asset management 
reinvestment—by Cycle 3 (Year 15), assuming a five-year rate cycle is adopted. 
 
Increased use of debt in the near term to bridge project shortfalls and fund necessary capital 
improvements. 
 
Measured, sustainable growth of departmental capacity, aligned with community 
development. 
Under this option, the average monthly bill for a residential customer would increase by only $10–
15, and the department would maintain the ability to address emergencies and scale operations as 
needed.

Recommendation: This is the preferred option. Despite the longer timeline and increased debt 
utilization, staff believe the benefits—including manageable customer impacts and sustainable 
utility operations—outweigh the drawbacks. 
IV. 
Proposed Rates: 
 
After careful analysis and community engagement through the WRC, City of Buckeye staff 
recommend the Gradualism approach to water and wastewater rate and structure adjustments. This 
model strikes a responsible balance between utility system health, financial sustainability, and 
customer affordability. 
 
The city remains committed to transparent communication, ongoing rate evaluation, and ensuring 
reliable water and wastewater services for all Buckeye residents. 
 
The Gradualism rate structures and adjustments are as follows: 
WATER 
All Customer (Residential, Multi-Family, Commercial, Potable Landscape, Non-Potable Landscape) Base 
Rates Per Meter Size: 
Base 
Rate/meter 
size 
Current 
Res.  
*includes $3.05 
R&R Fee  
2026 
2027 
2028 
2029 
2030 
≤1” 
$35.99 
$33.93 
$37.15 
$40.68 
$44.34 
$48.34 
1.5” 
$35.99 
$67.67 
$74.10 
$81.14 
$88.44 
$96.40 
2” 
$35.99 
$108.31 
$118.60 
$129.87 
$141.55 
$154.29 
3” 
$35.99 
$216.81 
$237.41 
$259.96 
$283.36 
$308.86 
4” 
$35.99 
$338.73 
$370.91 
$406.15 
$442.70 
$482.54 
6” 
$35.99 
$677.27 
$741.61 
$812.06 
$885.15 
$964.81 
8” 
$35.99 
$1,083.67 
$1,186.62 
$1,299.35 
$1,416.29 
$1,543.75 
10” 
$35.99 
$1,557.93 
$1,705.93 
$1,868.00 
$2,036.12 
$2,219.37 
 
Residential Usage Tier Rates: 
Res. Usage 
Rate 
Current/kgal 
2026 
2027 
2028 
2029 
2030 
0 – 6k 
$3.93 
$4.69  
$5.13  
$5.62  
$6.13  
$6.68  
6,001– 10k 
$4.91 
$5.86  
$6.42  
$7.03  
$7.66  
$8.35  
10,001 – 20k 
$6.14 
$7.32  
$8.02  
$8.78  
$9.57  
$10.43  
20,000 -30k 
$7.68 
$9.16  
$10.07  
$10.98  
$11.97  
$13.04  
30,001+ 
$9.59 
$11.44  
$12.53  
$13.72  
$14.96  
$16.30  
Commercial (now includes Multi-Family) usage tiers and rates: 
Usage 
Rate/month 
Current/kgal 
2026 
2027 
2028 
2029 
2030

0 – 10k 
$8.08 
$6.49 
$7.11 
$7.79 
$8.49 
$9.25 
10,001 – 20k 
$8.08 
$8.12 
$8.89 
$9.73 
$10.61 
$11.56 
20,001 - 30k 
$8.08 
$12.18 
$13.33 
$14.60 
$15.92 
$17.35 
30,000+ 
$8.08 
$21.31 
$23.33 
$25.55 
$27.85 
$30.36 
Potable Landscape usage rates and tiers: 
Usage 
Rate/month 
Current/kgal 
2026 
2027 
2028 
2029 
2030 
0 – 50k 
$6.61 
$5.84 
$6.42 
$7.00 
$7.63 
$8.31 
50,000+ 
$7.93 
$8.75 
$9.63 
$10.49 
$11.44 
$12.47 
Non-Potable Landscape usage rates: 
Usage Rate 
/month 
Current/kgal 
2026 
2027 
2028 
2029 
2030 
Per Thousand 
Gallons 
$3.93 
$4.69 
$5.13 
$5.62 
$6.13 
$6.68 
 
WASTEWATER 
Residential base rate (residential will no longer have a usage rate): 
Base Rate/meter Size 
Current 
2026 
2027 
2028 
2029 
2030 
≤1” 
$28.86 
$46.54 
$51.19 
$56.31 
$61.94 
$68.14 
Commercial (now includes multi-family) base rate: 
Base Rate/meter 
size 
Current 
2026 
2027 
2028 
2029 
2030 
≤1” 
$60.06 
$46.54 
$51.19 
$56.31 
$61.94 
$68.14 
1.5” 
$60.06 
$92.81 
$102.09 
$112.30 
$123.53 
$135.88 
2” 
$160.19 
$148.55 
$163.41 
$179.75 
$197.72 
$217.49 
3” 
$160.19 
$297.37 
$327.11 
$359.82 
$395.80 
$435.38 
4” 
$300.36 
$464.59 
$511.05 
$562.15 
$618.37 
$680.21 
6” 
$500.59 
$928.91 
$1,021.80 
$1,123.98 
$1,236.38 
$1,360.02 
8” 
$1,001.18 
$1,486.31 
$1,634.94 
$1,798.44 
$1,978.28 
$2,176.11 
 
Commercial (now includes multi-family) usage rates:

Usage 
Rate/month  
Current/kgal 
2026 
2027 
2028 
2029 
2030 
(per thousand 
gallons) 
$2.51 
$4.24 
$4.66 
$5.04 
$5.44 
$5.88 
 
BILL EXAMPLES (*taxes and fees not included) 
Water 
Assumptions 
Current 
*includes 
$3.05 R&R 
Fee 
2026 
2027 
2028 
2029 
2030 
Residential 
1” Meter, 
6K/month usage 
$ 59.57 
$62.07 
$67.93 
$74.40 
$81.12 
$88.42 
Commercial 
2” Meter, 
60K/month 
usage 
$775.65 
$792.01 
$893.40 
$949.87 
$1,035.55 $1,128.59 
Landscape 
2” Meter, 
150K/month 
usage 
$1,349.42 $1,275.33 $1,403.14 $1,528.86 $1,667.05 $1,816.79 
Non-
Potable 
2” Meter, 
150K/month 
usage 
$655.19 
$811.88 
$881.10 
$972.87 
$1,061.05 $1,156.29 
 
Sewer 
Assumptions 
Current 
2026 
2027 
2028 
2029 
2030 
Residential 
1” Meter, any 
usage 
$ 38.86 
$46.54 
$51.19 
$56.31 
$61.94 
$68.14 
Commercial 
2” Meter, 
60K/month 
usage 
$310.79 
$402.94 
$443.01 
$482.15 
$524.12 
$570.29