By Nikki Lee
Before I dive into this month’s topic, I’d like to take a moment to remind readers of grief resources we have available. As we continue to grieve community members we’ve lost this year, I’d like to share the following:
• Community-wide Crisis Line – (520) 622-6000: A free 24 hour crisis line for anyone living in Pima County. Crisis line staff can connect callers with local resources and information.
• Hope Inc. Warm Line – (520) 770-9909: This is a 24 hour non-emergency free phone line for anyone living in Pima County. There is also a youth warm line option.
If you’d like additional resources on mental wellness and education, visit pimahelpline.org.
For my main topic this month, I’d like to talk about an important topic being discussed by Mayor & Council: water differential rates. This issue concerns the possibility of the City of Tucson charging a different rate to water customers outside of city limits. The concept can be complex, making it easy for misinformation to spread. Therefore, I’d like to share what actions have and have not been taken so far, and some data behind this issue.
At the April 6, 2021 City Council meeting, the Mayor & Council voted to move forward on a notice of intention with the State of Arizona to explore a potential differential rate for unincorporated areas. This doesn’t mean that a differential rate is going into effect, or if it does, what the rate would be. This means Tucson Water staff will file all necessary documents with the City Clerk to allow the Mayor & Council to consider differential rates. A Public Hearing is scheduled for June 8, 2021.
In 1979, an agreement was made between the city & county that allowed the transfer of the city’s wastewater assets to the county in exchange for the city retaining ownership of the effluent (treated sewage). The city became the effluent holder for 90% of the effluent generated by the two largest metropolitan wastewater treatment plants located along the Santa Cruz River after recognizing the County’s 10% allocation. However, many things have changed over the past four decades. Supplemental agreements in 2001 and 2003 further defined the roles of each agency and the city respected the effluent generated by many of the other local water providers.
The City of Tucson is not the regional water supplier. There are several other water companies located throughout the valley. The City of Tucson and the surrounding areas underwent rapid urbanization and population growth toward the end of the 20th Century, resulting in 35% of all Pima County residents now living outside of an incorporated city or town. By contrast, only about 7% of Maricopa County’s population resides in unincorporated areas of that county.
This situation creates a tax revenue disadvantage that is unique to the metropolitan Tucson area. Because the state’s distribution of shared tax revenues favors populations that reside in cities or towns, our region receives a smaller portion of State Shared Revenues than it would if a larger proportion of the population lived within incorporated Tucson. The resulting loss to the region is an estimated $40-$50 million per year. If unincorporated areas such as Corona de Tucson, Vail, and Catalina Foothills chose annexation or incorporation, they would share the financial benefits of increased State Shared Revenues.
Water differential rates are common in Arizona; they exist in Chandler, Flagstaff, Glendale, Peoria, Phoenix, Scottsdale, Tempe, and Yuma. Currently, more than one-third of Tucson Water’s customers are located outside of the city’s jurisdiction, by far the largest proportion of any Arizona city or town. About 28% of Tucson Water’s total customer base is located within unincorporated Pima County.
Annexation is a heavily debated topic. However, many of us agree that the Tucson region needs access to all available resources as we continue to grow to address the needs of our community. More funding means we can invest in our communities, making it more attractive for families and businesses to move here and put more money and jobs back into our local economy. Implementing a water differential rate provides an opportunity to recoup some of the funds we lose by having so many people in our region living outside city limits.
Tucson Water is serving several unincorporated high growth communities like Corona de Tucson and the unincorporated southeast Tucson. These areas are less dense in population therefore there are more ‘pipes to people’. That means it costs the city more money in repair and capital infrastructure replacement to serve those areas outside of the city. Another increase to the cost of service in unincorporated areas is a little more complicated; Tucson provides water service to communities in the Pima County wastewater sewer sheds that the city does not have any rights to the water those plants produce. The city is bringing in renewable supplies from the Central Arizona Project, and the supply is only being used once, then the county receives the effluent credit generation, not the city. All of this impacts the cost of water service to the City of Tucson.
Increased resources and economic growth helps everyone in our region, both inside and outside city limits. This discussion is ongoing and nothing has been decided yet, but I hope this information provides helpful context as the conversation progresses.
Our next town hall will take place on Thursday, May 27, at 5:30 PM. It will be a budget conversation with City Manager Michael Ortega. As the school year winds down, I’d like to give my warmest congratulations to all graduating seniors in our community. Stay safe, and I’ll be back next month with another Ward 4 Update.
