2023-2025 Rate Increase Information for Phoenix Water Services and Stormwater Excise Tax
In 2023, the Phoenix Water Services Dept. proposed and received approval for a rate increase to address rising costs. The information below are the details of that rate increase.
**The rate increases that are mentioned in this page were approved by the Phoenix City Council on June 28, 2023 and went into effect on October 1, 2023. The final rate increase from that council action goes into effect on March 1, 2025. There was also a request to increase the Stormwater Excise Tax to fund the City's compliance with new Federal requirements, and this too was approved by the Phoenix City Council.
View the final approved rate schedule for March 2025.
View the Tax and Fee document, which includes the approved Stormwater Excise Tax information.
Overview
The Phoenix Water Services Dept. proposed and received approval for a rate increase to address rising costs. The increase was necessary to meet inflationary pressures affecting utilities across the nation. Even after these increases, Phoenix still has some of the most affordable water services compared to other large cities in the country. There was also a request to increase the Stormwater Excise Tax to fund the City's compliance with new requirements for preventing pollution from entering waterways.
Details on the Rate Increases
| Date | Water Increase | Wastewater Increase | Stormwater Excise Tax |
|---|---|---|---|
| October 2023 | 6.5% | 6.5% |
$0.25 |
| March 2024 |
6.5% | 6.5% | No increase |
| March 2025 |
13% | 7% | No increase |
Changes to Water Allowance and Conservation
Also included in the June 28, 2023 Council action was the changing of the water allowance structure to encourage water conservation, which could result in some customers paying an additional amount of approximately $4 more starting October 2023. The Phoenix Water Services Dept. has a seasonal structure for rates where charges are higher in the hotter seasons and lower in the cooler seasons. It is designed to encourage water conservation and discourage excessive water use in the summer when outdoor water use increases. The City of Phoenix declared a Stage 1 Water Alert on June 1, 2022, and that alert is still in place. With conditions on the Colorado River expected to worsen, Phoenix Water customers must prioritize conservation. See details below.
| Previous Volume Allowance | Approved Change to Volume Allowance |
|---|---|
| 4,488 gallons (6 Units) - October through May (Cooler Months) | 3,740 gallons (5 Units) - October through May (Cooler Months) |
| 7,480 gallons (10 Units) – June through September (Warmer Months) | 5,984 gallons (8 Units) – June through September (Warmer Months) |
1 Unit = 748 Gallons = 100 Cubit Feet
Increase to the Stormwater Excise Tax
The Stormwater Excise Tax funds the City’s compliance with a required Clean Water Act Municipal Separate Storm Sewer System (MS4) permit from the Arizona Department of Environmental Quality for operation of the storm drain system. This permit is required to prevent pollution from entering our washes and rivers and requires actions by the City, such as infrastructure maintenance, water quality monitoring, and inspections. As of 2021, the City is operating under a new permit with new and expanded requirements.