Phoenix Plans Water Surcharge For Highest Users

PHOENIX — City officials outlined plans for a January 2027 drought response during the Phoenix City Council Policy Meeting on Nov. 10. The plans include voluntary water conservation and a surcharge for higher-volume users.

The city announced the plans Tuesday as it prepares for Colorado River delivery reductions that could reach approximately 30%.

Residents and businesses would voluntarily reduce water use by 5%, while city departments would cut consumption by 10%.

The planned residential surcharge would add $2.10 for each unit above 20 units monthly, equivalent to 14,960 gallons.

One unit equals 748 gallons. The surcharge would apply only to consumption above the threshold, according to the city.

Commercial customers would face the same rate above 300 units monthly. Industrial customers would pay it above 15,000 units.

The surcharge would take effect only when Phoenix declares Stage 2, the city said.

Current usage suggests it would affect approximately 16% of residential monthly bills, 7% of commercial bills and 1% of industrial bills.

Most customers would not incur the surcharge, according to the city.

The plan also would double grass-removal incentives to $4 per square foot and smart irrigation controller incentives to $150.

Phoenix also plans a new $100 annual leak-repair incentive and expanded no-cost water-efficiency consultations.

Stage 2 would not interrupt water service, the city said. Phoenix plans to rely more heavily on backup supplies.

“Conservation is essential because every gallon we save reduces the amount we need to withdraw from our backups,” Water Services Director Brandy Kelso said.

Phoenix receives approximately 40% of its drinking water from the Colorado River, according to the city.

Longer-term efforts include advanced water purification facilities, expanded Verde River storage and regional water-sharing opportunities.

Phoenix has operated under Stage 1 — Water Alert since June 2022.