Sedona, Arizona (AZ Family) — People and businesses in Sedona could see their monthly water bills increase by almost 50%.

This has left local residents concerned about the already high cost of living and wondering how they will be able to cover the rising costs of water.

This nearly 50% increase will hurt residents, businesses, and even private fire agencies.

business like sedona beer companyuses more than 13,000 gallons of water a year and said the cost of water would increase by thousands of gallons.

Kari Gajewski, Owner of Sedona Beer Company said water is the lifeblood of their business.

“Beer is water, so we’re really in the water business,” Gajewski said.

So she was shocked when she heard she was applying to increase her water bill by nearly 50%.

“I was surprised,” Gajewski said. “It’s definitely going to have an impact on local businesses.”

According to the submitted applicationthe proposed increases are: 48.7% residential, 47.2% commercial, 50.4% private fire service.

Arizona Water Co., Ltd. This summer, I submitted a request for a rate increase.

Nick Liu, Arizona Water Company’s vice president of rates and revenue, said current rates are based on 2017 needs.

But since then, the company has added new water infrastructure and been hit by inflation.

“We experienced inflation, including increased operating costs,” Liu said. “Therefore, periodic fees are simply not sufficient to recover the costs of serving Northern Group customers, as one of our priorities is that we provide our customers with safety and security.” We need to provide reliable water service.”

Mr. Liu said the actual ratio would rise to closer to 36%.

However, if additional fees such as system improvements are included, the cost will be close to 50%.

Gajewski said the price of everything from hops to grain has increased over the past five years, but the water rate increase will cost him thousands of dollars.

“Unlike other things that maybe increase by 10, 15, 20 percent, the automatic 50 is going to be a huge jump right away,” she said. “Perhaps we are choosing to pass that water cost on to consumers.”

Sedona voters just Franchise contract signed in summer This will give the company 25 years to operate the water system and use the right-of-way to provide water services to the city.

The application was submitted in June.

butmultiple public comments Share your dissatisfaction on the application, I hoped The company was more proactive about the increase.

“I also believe that companies have a right to a fair return on their investments, but they have historically only made returns after making long-term commitments to provide services. “We have been willing to accept a 48% interest rate increase to improve our bottom line,” Sam Kaplan said on the application page.

Liu said he understands the frustration, but the increase also covers the continued safe drinking water in Sedona.

“We need to provide a safe and reliable service,” he said. “We need to replace our aging infrastructure, we need to build infrastructure that is mandated by federal law. In addition to that, you know, this interest rate case is also currently being considered by the commission. .”

He added that the company has a utility bill assistance program that gives low-income customers and active-duty military a $10 discount, which he is asking to continue if higher rates are approved.

Gajewski said he understands interest rates will rise, but going to 50% all at once would hurt many businesses and local residents.

“If we as a company were to raise all our prices by 50%, we would probably be in big trouble as a company and be held accountable by the public,” she said. “We hope we can hold the water company accountable.”

A public comment session will be held on Jan. 29, during which the water company will hear from residents, after which the state will hear the lawsuit in March.

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