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Like many small towns, the Town of Kearny is faced with an aging water system and the question of how to pay for much needed repairs.
A recent water rate study conducted for the Town of Kearny by the Phoenix-based firm NCS Engineers revealed some areas of concern for future planning.
A consultant with NCS explained to the council at a meeting held late last month that utility funds should be fully funded by the rates paid by customers and general funds from the municipality should not have to be used to fund the management and maintenance of utilities.
For small towns in the area, the consultant said, rate increases have not occurred over the years but the ongoing need for maintenance on aging water systems continue to increase. As the municipal utility systems age, the costs to maintain and make needed repairs increase.
Kearny’s situation also requires the council to plan in advance to pay for Central Arizona Project water should there not be enough water distributed to Kearny through the Globe Equity Water District each year. In years of extreme drought, the Globe Equity Water district could limit the amount of water given to Kearny from the Gila River. Should that happen the town will need to utilize water from the CAP allocation. In order to access those waters the town will need to have funds available to buy the water from CAP.
Currently the council is working on repairs to the existing filtration system that will help keep the manganese out of the water. There have been some delays in the repair construction process. Some residents in Kearny are experiencing dark water due to the manganese in the water. Town Manager, Anna Flores explained that this has been a problem for a long time in Kearny due to the proximity of the town to the Gila River and the aging water pipes. The rate increases will help to further improve the water systems.
The Council had two options to discuss in which to fund the needed improvements and ongoing maintenance to the water system. Option one was a reallocation of 40 percent of the Central Arizona Water facility fee in the 2015-16 budget year. This would require an increase to 80 percent for the 2016-17 budget. This would still allow for 20 percent of the fees to be used for the CAP facility fee should the CAP water be needed in a drought year. Consultants to the town explained that they plan on a drought to occur every 10 years.
The second option was to increase the per month fee by $2.50 for every customer for the 2015-16 year with an additional increase of $2.50 for a total of $5.00 additional fee for budget years 2016-17 through the 2019-20 budget year.
After much discussion on the funding mechanisms for the repairs and ongoing maintenance, the council voted to combine the two options by raising the fee by $2.50 per month for the first year and then allocating the CAP funds for the second year. The council will need to host a public hearing in order to enact the rate increase. At press time the date and time of the hearing has not been selected; it is expected to be in September.
Mila Besich is a resident of Superior with two children. She volunteers for many local organizations. She is an experienced fundraiser and event planner for Copper Corridor Economic Development Coalition. She covers some of the area town councils and schools.
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