Tiered Water Rates Study

Malcolm Goggin

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As a desert community, water is a precious resource for the City of Peoria. The City has consistently shown it is a forward-thinking community through its sustainability planning efforts. Peoria’s general planning document, PlanPeoriaAZ 2040, outlines the City’s commitment to ensuring the best quality of living for Peoria residents through the Livability Initiatives. As part of its priorities, the City prioritizes “Smart Growth,” emphasizing sustainable development, particularly conserving water resources in anticipation of future growth.

In the Spring 2022 semester, the City of Peoria engaged with two ASU classes to research water conservation strategies and advise on improvements to the City’s existing water policies. The City’s Water Services department has previously engaged with students through the ASU Project Cities program to research best practices for its drought planning efforts. However, as Peoria’s population grows, and thus its residential and commercial developments, the Water Services and Planning departments seek to better integrate water and land use planning into its general plan, codes, and ordinances.

One graduate student from the PAF 509 Public Affairs Capstone course collaborated with Peoria’s Water Services Director as part of the culminating experience for her Master of Public Policy (MPP). The City currently uses block tier pricing to incentivize residents to conserve water use but would like additional guidance on restructuring its tiered rating system. The student conducted a peer community analysis of Arizona and other communities to identify ideal tier pricing.

The City of Peoria has demonstrated its commitment to water conservation efforts, including considering integrating water and land-use methods. While the City offers a variety of rebates and incentives for water use, the student research revealed that the City could benefit from better communicating its water conservation efforts and opportunities to its residents through the City website and social media. Additionally, the City can consider alternative methods for water-saving incentives, including consumption-based fixed rates. The following project summary report details a review of peer community policies and strategies related to water conservation. The student recommendations aim to provide the City of Peoria with tools and best practices to better inform Peoria’s water planning efforts.

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