Oro Valley stormwater staff warn reserves will fall without rate increase; commission sets September target for recommendation

Oro Valley’s Stormwater Utility staff told commissioners on April 18 that the utility will likely run short of reserve funds within the next three years unless the town secures additional grant funding, reduces project scope or increases monthly stormwater fees. The commission asked staff to produce a professional rate report with project scopes and cost estimates and to aim for a recommendation by September.

The presentation was led by John Spyker, stormwater utility manager, who walked the commission through a five‑ and 10‑year forecast and stressed that “we’re gonna be running out of money at some point” if current spending and project demands continue. Spyker said the utility currently bills roughly 28,000 Equivalent Residential Units (ERUs) at $4.50 per ERU, yielding about $1.5 million annually; a rough example presented showed that a $2 monthly increase (to $6.50) would generate roughly $700,000 a year.

Why it matters: staff said the fund is expected to dip below the reserve threshold set by code within the next three years under present assumptions, even counting anticipated grant awards. Commissioners and staff emphasized that key town drainage projects have been deferred for many years and that management supports moving forward in a deliberate way to address those needs.

Amy Ramsey, speaking to the commission, said the town’s leadership has signaled support for advancing work on long‑deferred projects: “we have received support and direction from the management … the reason we’re bringing this back is … they want to get them off the table,” she said, urging the commission to prioritize projects that directly reduce erosion and flood risk.

Staff described a multi-step schedule for a rate review linked to the town’s budget cycle. Staff will refine cost estimates and project scopes, present to the town manager’s office and then to the Town Council (staff noted presentations scheduled for May and suggested a likely council decision in June). Commissioners were asked to plan for roughly three focused commission meetings over the coming months and to consider site visits and a possible October field tour.

Projects that staff flagged as candidates for funded work include drainage improvements at Oro Valley Country Club (the town manager’s office indicated support and asked the stormwater utility to deliver the project), sediment and vegetation removal at multiple washes (Rancho Catalina, CDO Wash, Monterra Knolls/Monterra Ridge), bank repair at Gravel Pit Wash, Mudder’s Wash improvements, and a town‑wide floodplain update. Spyker said some large items on the list assume outside grant funding and noted that if large grants are not awarded the utility would need to scale or sequence work differently.

Commissioners pressed staff on options. Spyker said the utility could seek additional grant funds, reduce the scope or stage projects over several years, or ask the public for a modest, phased rate increase. He also urged commissioners to consider partnering with other departments to realize cost savings by combining construction work.

Votes at a glance: The commission approved the Feb. 15, 2024 meeting minutes by voice vote after a motion and second; later the commission approved a motion to adjourn by voice vote. (The minutes‑approval motion was made in the meeting by Commissioner Matson and recorded as seconded.)

What’s next: Staff committed to deliver a formal rate‑study package with exhibits, project scopes and “today’s‑dollar” cost estimates so the commission can refine priorities and a recommended rate path before the September target date.