City, Seven Ranches Water District close to agreement

The City of Maricopa and Seven Ranches Domestic Water District are reviewing the details of a draft agreement that would have the city assume control of the district.

The agreement, in the works for months, calls for the city to take over the district. It would contract with Global Water to operate and maintain the system.

The district is composed of about 275 acres south of Honeycutt Road between Porter and White and Parker roads. It includes the Circle K store, Sequoia Pathway Academy, the Arizona Storage Co., and the U.S. Postal Service annex.

City Manager Rick Horst said in April that if a deal was reached, the city would evaluate district infrastructure and operations and recommend necessary improvements to be made at city expense. To ensure public health and safety, the city will assess and likely upgrade fire flow and suppression systems. Property owners in the Seven Ranches would see other benefits, including the installation of sewers to replace existing septic systems.

The agreement still must be ratified by the Maricopa City Council and the Seven Ranches district board of Thomas Chapa and Raul Valenzuela. With the signing of the agreement, the city would move to adopt an annual budget for the district, including setting a tax rate, selling assets with a value of more than $25,000, making expenditures in excess of $50,000 and raising rates beyond the customary historical increases.

The district would be dissolved.

“If we do this, it will bring up the value of the properties in Seven Ranches,” Chapa told InMaricopa in April. “Upgrading the system – and this is not to say it needs improving now – they (the city) could do some things to improve it. The main reason for the city getting involved is fire suppression for the area, to be sure the flows are sufficient.”

The City of Maricopa Fire/Medical Department will also have full knowledge of the new system’s capabilities so it can provide effective service. Systems improvements may result in lower home insurance costs for residents.

Improved fire flows and sewer service should enhance the ability for owners to develop vacant or underutilized property, and also increase land values.

The city has said it will protect rates to ensure they will not exceed current rates by more than the customary rate increases of up to 5% over the past three years. That rate structure will remain in place until a property is developed or otherwise changes ownership.

In addition, the 5.95% property tax paid by district landowners would be eliminated when the district is dissolved.

Already, a Phoenix developer has submitted plans to build 253 single-family rental homes in Seven Ranches.