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PHX Proposes $1.3B for Water Services

Arizona Falls and Water Works at 56th Street and Indian School Road in Phoenix. Photo credit: Jim Poulin/Phoenix Business Journal

By Eric Jay Toll for Phoenix Business Journal

Phoenix Water Services is asking for $1.3B, five-year capital improvement plan.

The plan is a 10 percent increase from the current CIP. Much of the initial costs is being paid with savings from bond refinancing over the past two fiscal years.

The program is necessary to maintain reliability in the water system, replace aging infrastructure, and upgrade capacity for distribution and treatment. Capital projects amount to more than half of the department’s budget.

The five-year $782M plan, if approved by the council, allocates $168 million for water treatment plants, $183 million for storage and $369M for distribution. Among the other costs, $6M would go to the Colorado River Resiliency Program to prepare for possible drought-caused allocation reductions.

Rate increases are anticipated for both of the systems over the next five years. None are proposed in fiscal 2015, but a 3 percent water increase is under consideration for 2016.

Read more at Phoenix Business Journal