ARIZONA DAILY STAR: Sat., Jan. 12, 2008

Tucson Water wants rates to go up 10%

City manager: Hold boost to 8%; customers would be hit by summer

By Rob O'Dell

Tucson Water says water rates should go up 10%, starting in summer. That means the new Democratic City Council will face its first challenge in the coming month — trying to decide how much it can reasonably raise the rates.

Tucson Water had a rate increase of 5% this year built into its budget to pay for an expansion of its underground storage facility in Avra Valley, but slow water sales and a lack of new construction activity have the utility's budget in the red. To compensate, the utility proposes raising its revenue by another 5%, pushing the total increase to 10% next fiscal year, which begins July 1.

It may seem paradoxical that conserving water and a slowdown in growth would hurt Tucson Water — as many environmentalists say conservation and curbing of sprawl are the keys to long-term water sustainability.

● Contact reporter Rob O'Dell at 573-4240 or rodell@azstarnet.com.

FULL STORY: http://www.azstarnet.com/allheadlines/220322