Notice of Intent to Adjust Water Rates and Fees

On March 17, 2026, the City of Tucson approved a notice of intention to adjust water rates and fees for FY 2027-2030.

The proposed adjustments are based on Tucson Water’s FY 2027–2031 financial plan. The plan outlines funding required for operations and maintenance, capital improvements, financing costs associated with infrastructure investments, and long-term water resources.

A public hearing will be held on May 19, 2026. The community is invited to give input at the hearing before any rate or fee adjustments are finalized. If approved, updated rates and fees will take effect July 2026.

What Will Water Rates Fund?

  • Daily operations and system maintenance
  • Replacement of aging infrastructure
  • Water treatment and delivery systems
  • Colorado River (CAP) water supply obligations
  • Customer assistance programs

The proposed adjustments support Tucson Water’s financial plan by:

  • Ensuring revenues are sufficient to operate and maintain water system
  • Financing infrastructure improvements
  • Meeting debt repayment obligations
  • Maintaining established cash reserve targets and bond indentures. 

Proposed Adjustments

Water Rates

Proposed rate change:

  • 3.5% annual revenue increase from FY 2027 through FY 2030.

The recommendation is based on a review of budgetary proposals from Tucson Water the Citizens' Water Advisory Council (CWAC). For FY 2027, the proposed adjustment is a decrease from the originally approved increase of 5.5%.

For detailed rate schedules see the Financial Plan and Rate Schedules(PDF, 2MB)  and the City of Tucson Notice of Intent(PDF, 659KB) .

Miscellaneous Fees

Miscellaneous fees – such as installation, inspection, and account-related fees – were reviewed as part of Tucson Water’s ongoing financial planning process to ensure fees reflect the cost of providing service.

Proposed updates are described in the Miscellaneous Fee Technical Memorandum(PDF, 2MB) prepared by Tucson Water’s rate consultant.

Central Arizona Project (CAP) Water Resource Fee

The CAP Water Resource Fee applies to new potable metered connections to acquire CAP water rights needed to serve new water connections. It does not fund annual water delivery costs.

The base fee for a standard 5/8-inch residential meter would increase from $200 to $240. Larger meter sizes increase proportionally based on established meter ratios.

Proposed CAP Water Resource Fee
Meter Size Meter Ratio Current Proposed Change
5/8" 1 $200 $240 $40
3/4" 1.5 $300 $360 $60
1" 2.5 $500 $600 $100
1 1/2" 5 $1,000 $1,200 $200
2" 8 $1,600 $1,920 $320
3" 16 $3,200 $3,840 $640
4" 27.5 $5,500 $6,600 $1,100
6" 56.25 $11,250 $13,500 $2,250
8" 85 $17,000 $20,400 $3,400
10" 130 $26,000 $31,200 $5,200
12" 215 $43,000 $51,600 $8,600

Public Process

  • March 17, 2026 – Adoption of Notice of Intent
  • May 19, 2026 – Public hearing
  • July 1, 2026 – Proposed effective date

The City of Tucson will hold a series of community open houses in late March-early April in each city ward to answer questions about the proposed rate and fee increases. Tucson Water will host an information table at each event:

Two virtual open houses will also be available:

More Information

For more detailed information, please review the following materials:

Frequently Asked Questions

Is Tucson Water spending responsibly?

Yes. Tucson Water follows a five-year financial plan and operates under established financial policies. This planning helps the utility manage operating costs, invest in infrastructure, meet financing obligations, and avoid large, sudden rate increases.

Who does this rate increase apply to?

The proposed water rate adjustments would apply to all Tucson Water customers.

The proposed update to the CAP Water Resource Fee would apply only to new potable water connections.

Updates to miscellaneous fees apply only in specific situations, such as service requests or account-related administrative actions.

Details for these fees are provided in the City of Tucson Notice of Intent(PDF, 659KB)  and Technical Memorandum(PDF, 2MB).

I'm on a fixed income – is there any help available?

Tucson Water remains committed to affordability. The Tucson Water CARES program provides payment assistance, bill discounts, and fixture repair support for qualifying households. The income-based discount program was recently expanded to serve more customers.


 

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