Yuma utility system lowers capacity fees

Area businesses stand to gain from reduction

In some good news for developers, the city of Yuma has lowered the capacity fees it charges customers to connect to the city’s utility systems.

For example, the new fees reduce the total capacity fee cost by $1,605 — 13.6 percent — for a new residential connection to city water and wastewater services, reported Jay Simonton, director of utilities for the city.

The lowered fees that went into effect Dec. 2 apply to both residential and non-residential customers.

The new fees also greatly simplify the methodology used to determine the sewer capacity fees for commercial and industrial connections, Simonton said, making the city more competitive for job creation.

“We had gotten a lot of requests from the business community to look at our fees and see if there was something we could do,” said City Administrator Greg Wilkinson. “We were able to reduce some costs.”

A study that reviewed the fees on behalf of the city recommended approximately an 8.7 percent reduction in the water capacity fee per meter size, according to a city staff report. For wastewater capacity fees, the study recommended an approximately 17.5 percent reduction.

The study also recommended that the same water meter size methodology used to calculate water capacity fees be used to determine the wastewater capacity fees.

“We removed a very complicated discharge calculation method that made it very difficult for commercial and industrial customers to compare our fees to other Arizona communities,” Simonton said. “This more simplified approach puts us in line

and makes us more competitive with communities we are competing against for job creators.”

Results of the study, conducted by Willdan/Economists.com, were presented to the City of Yuma Water and Sewer Commission and the Yuma City Council in September. At that time, the council adopted a notice of intention to adjust water and wastewater utility rates and fees based on the results of the report.

During its regular meeting on Nov. 2, the council held a public hearing on the proposed lower capacity fees, then approved a resolution to adopt them.

Under the new schedule, the capacity fee for a residential water connection ranges from $4,752 for a 5/8-inch meter to $7,936 for a 1-inch meter; residential wastewater capacity fees range from $5,423 for a 5/8inch meter to $9,056 for a 1-inch meter. Non-residential water capacity charges range from $4,752 for a 5/8inch meter to $25,328 for a 2-inch meter; wastewater capacity fees are $5,423 for a 5/8-inch meter to $433,833 for an 8-inch meter. Wastewater capacity charges for multifamily and recreational vehicle parks are $2,712 per dwelling unit or space.

Wilkinson explained that the former capacity fees were established based on the cost to the city of expanding its water and wastewater systems to meet the needs of the rapidly growing community a decade ago.

“There was a building boom and we saw a need for future capacity,” he said. Consequently, the city built Desert Dunes Wastewater Treatment Plant and Agua Viva Water Treatment Plant to provide additional utility service, especially to the east side of the city.

“That expansion needed to be paid for,” Wilkinson said.

Then the economy went into a deep recession and the building boom collapsed.

“When the city established the capacity fees, they were figured based on plans for expansion of both plants,” Wilkinson said. “But we didn’t need to do that. We were able to cut back on some things.”

Scaling back on further expansion has saved the city some infrastructure costs it is now able to pass on to utility customers, he

said.

However, the two plants have positioned the city well to meet current and future needs for years to come, Wilkinson said.

“The plants were needed,” he said. “We couldn’t provide enough water in the pipes, especially for the east side. AWC (Arizona Western College) couldn’t flush toilets.”

Furthermore, with the water and wastewater capacity provided by the plants, the city is able to take on new industrial and manufacturing plants, he said.

“We’re situated well for economic development into the future.”

This story originally appeared in Yuma Biz, the monthly publication by the Yuma County Chamber of Commerce.