SAFFORD — The Safford City Council unanimously agreed to adjust utility rates.
The vote came during Monday’s regular meeting.
The rate for City of Safford residential and commercial water users will remain the same — $2.11 per 1,000 gallons — for up to 3,001 gallons, but goes up to $2.64 from 3,002 to 8,001 gallons used and continues to go up as more water is used. Industrial water users will see a slight increase, from $2.11 to $2.47.
Wastewater (sewer) rates remain the same; however, electric customers will see a decrease in electric energy per kilowatt hour, from 0.0733 to 0.0623, with more decreases projected for four years in a row.
For residential natural gas users, the service availability charge increases from $15.00 to $16.80, and the delivery charge increases from $5.10 to $5.71, but the stabilization adjustment decreases from $4.10 to $3.75.
Trash rates also are increasing, from $19.86 to $21.00.
The changes are based on a study showing what fund balance each utility should have in order to continue providing serving and maintaining infrastructure over the next five years.
“During the budget process, we’re going to bring you our fund-balance analysis, and if we‘re not seeing the fund balances as specified in this study matching up, if they’re higher then we don’t need to do the rate increase. If they’re lower, then we might need to do the rate increase and then some,” said Finance Director Troy Bingham.
The big issue during public hearings prior to Monday’s meeting has been the change in credits for solar power users. Prior to Monday’s vote, excess power generated by solar would have the solar user compensated at 100 percent, but after the vote, the compensation has been reduced to 25 percent.
Bingham explained that changing that compensation rate to anything more than 25 percent would mean higher electric rates for all other users.
The first bill residents will see with the new rates will be in December, and the new rates will be in effect through June 2026. The council will be asked during budget talks in the Spring to adjust rates up or down each year for the next fiscal year, which begins July 1.
