Maricopa Mayor Anthony Smith paddled alone in stormy waters at Monday night's city council meeting. Smith was the only member of the council to vote against a resolution expressing the city’s stance against a proposed rate increase by Global Water. “We cannot handicap utilities to the point of not being able to provide timely infrastructure for development,” Smith said. In a more than 40-minute debate on the city's position concerning the proposed Global Water rate hike, council members Carl Diedrich and Brent Murphree also expressed concerns about voting in favor of the resolution before ultimately changing their tune. “I have an issue with the council taking a public stance on this issue when a process is in place to regulate the rates,” Diedrich said. Diedrich went on to say he would like to see the city rebate the 3 percent franchise fee it receives from Global Water to customers who are able to cut back on water usage. Last year this amount equated to $400,000. “This (the rate increase) is a heavy burden we all have to bear as citizens,” Murphree said. Global Water is requesting a 34 percent increase in its water fees and 130 percent increase in the fees charged for sewer service. An Arizona Corporation Commission hearing is slated for Dec. 14 to consider the utility’s request. Trevor Hill, Global Water’s chief executive officer, approached council before the debate on the issue saying the language in the resolution had a resentful tone. “We filed the rate increase to bring financial stability to a service the city needs,” Hill said. Hill continued by saying his company took steps to minimize the rate increase by omitting $30 million in debt from its proposed rate increase, phasing in the rate increase and offering discounts to people who cut water usage. “I am sensitive to the financial issues the residents of Maricopa are having,” Hill said. However, without the rate increase, Hill said the company would not be able to support the city’s growth plans, and when approached about providing a new business or employer with a water connection, would possibly not be able to comply in a timely manner. Hill also defended the 8 percent rate of return his company was requesting, citing $150 million debt his company was paying a 6.5 percent debt service fee on. Hill also addressed the homeowners' associations, saying the company would be willing to help put some measures in place to help them conserve water. Councilman Joe Estes understands that water usage can be monitored much more closely in the community. “Many of these communities are using five to 10 times as much water as required on their sod,” Estes said. Despite his testimony, Estes said the time was wrong for a rate increase and the citizens of the community need to know their council supports them. “People moved to Maricopa primarily because the cost of living was less, but now with property taxes and utility rates, it is becoming cheaper to live in the Valley,” Estes said. “What is the draw to Maricopa now.” He said the high utility rates were not just detrimental to current and future potential residents but a roadblock to employment and development. “What companies are going to come to Maricopa when they get cheaper water, electricity and property taxes in Chandler and Gilbert,” Estes said. “What do we have to offer.” File photo |