NTUA proposes major water, sewer rate hike
WINDOW ROCK
The Navajo Tribal Utility Authority plans to seek higher water and wastewater rates for customers following an independent rate study and rising costs tied to aging infrastructure and system maintenance.
The proposed increase follows a water and wastewater rate study conducted by NewGen Strategies and Solutions, a financial and economic consulting firm hired last year.
Current water and wastewater rates have remained unchanged since Jan. 1, 2020. Rising costs tied to equipment, materials, labor and maintenance have increased the cost of operating and maintaining water and wastewater systems.
“We understand that any rate increase is important to our customers, and we do not take these decisions lightly,” said NTUA Deputy General Manager Rex Kontz. “As consumers we see rising costs. As a utility, we have the same rising costs for business expenses, such as equipment, materials, labor, maintenance and replacement costs of our water distribution, water wells and water treatment systems. The same is true of NTUA’s wastewater collection and wastewater treatment systems.”
Kontz said the proposed rates would help ensure enough funding to operate and maintain the existing water and wastewater systems. Much of the water and sewer infrastructure is aging and requires ongoing repair, rehabilitation and replacement. Construction materials, contractor services and equipment have also increased in cost in recent years, raising the price of maintenance and system upgrades.
Two possible rate scenarios are under consideration. Both would increase water and wastewater rates gradually over a three-year period.
Customers currently pay $16.21 per month for water service based on 1,000 gallons and $12.49 per month for wastewater service.
Under the first scenario, the monthly water rate would rise to $25.50 by the third year. That would increase the water portion of the bill by $9.29 per month. Wastewater service would rise to $42.75 by the third year, an increase of $30.26. Combined, customers would see a $39.55 monthly increase by the end of the phase-in period.
Under the second scenario, the monthly water rate would rise to $24.82 by the third year, an increase of $8.61. Wastewater service would reach $39.81 by the third year, an increase of $27.32. Combined, that would amount to a $35.93 monthly increase by the end of the phase-in period.
If approved, the new rates would take effect in September 2026 and appear on October utility bills.
A series of public information meetings is scheduled this month and in April to outline the proposal and gather public comment. The meetings are scheduled for Tuesday, March 17, from 6-8 p.m. at the Chinle NTUA District Office, Tuesday, March 24, from 6-8 p.m. at the Tuba City Chapter House, Tuesday, March 31, from 6-8 p.m. at the NTUA Crownpoint Office, Tuesday, April 7, from 6-8 p.m. at the Kayenta Chapter House, Tuesday, April 14, from 6-8 p.m. at the NTUA Dilkon District, Tuesday, April 21, from 6-8 p.m. at the Phil Thomas Performance Center in Shiprock, and Tuesday, April 28, from 6-8 p.m. at the Window Rock Cinema.
Comments gathered during those meetings will be presented to the NTUA Management Board during a formal public hearing set for May 21 at the Navajo Nation Museum in Window Rock. The hearing is scheduled from 6-8 p.m.
Questions or comments may also be sent to [email protected].
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