Town council members met June 7 in Study Session to look at the Prescott Valley water and sewer rates, and consider whether the town adequately charges for the service provided.
To determine water rates, Mark Lusson, customer accounts manager, said town staff researched the number of customers and projected gallons of water used, and balanced that to the town’s budget and debt service to find how much revenue is required. From those results, Lusson suggested to council members there be no change in water rates.
The same process was used to ascertain future sewer rates, with the same result – staff proposed no changes to sewer rates for residents.
The cash reserve ratio is where it needs to be, Lusson said. It takes a dip next year because of the purchase of two new tanks; however, the reserve recovers rather quickly the year following.
Staff calculations suggest less expenditures increased about 1 percent, and they do not propose a rate hike as they believe the town can absorb the small increase.
Growth also is steady with the town’s sewer system. Calculations based on projections indicates an even smaller increase of one cent per thousand gallons used. Staff recommends keeping the rates as they currently are.
“We’re in pretty good shape,” said Councilmember Michael Whiting. “We are seeing that growth pays for growth.”