A long fight came to a painful end for Anthem residents Wednesday, June 4, when the Arizona Corporation Commission voted to allow Arizona American Water to raise rates significantly. Those rates went into effect immediately and now higher bills are beginning to land in mailboxes.
Todd Walker, External Affairs Manager for Arizona American Water, said the process took two years. “It’s the longest process I’ve been through,” Walker said.
The hike, while not the full amount originally requested by Arizona American Water, increases the average bill by about $14 per month for Anthem residents east of I-17 (those on the west side of I-17 are serviced by the City of Phoenix).
Charts
And before ink hit paper on the new rate card, Arizona American Water filed for an additional 66 percent increase. But on June 5, the water company responded to concerns expressed by the Commission and withdrew Anthem from that request.
So, While Anthem can rest assured that no additional water rate increases will be requested until May, 2009, residents are not yet sure what the impact on the budget will be.
In Country Club, where most of the 2,866 homes were built with the larger 1-inch meters to accommodate fire sprinkler systems, residents might feel a bigger pinch. Their new monthly base service charge of $42.88 (up from $26.42) is more than double that of homes with the more common 5/8-inch or ¾-inch meters.
The Ripple Effect
Bob Golembe, a Country Club resident who has been an activist on this issue since May 2007, expects his bills to be 45 percent higher. In addition, “Everybody’s going to get secondary and tertiary hits,” Golembe said. While the most obvious effects will be felt in the monthly bills, “I expect my social dues to go up, which is the funding for ClubCorps management, which includes the irrigation for the golf courses—two of them—I expect my HOA fees will go up…. “
Dues Hold Steady
The Anthem community in general, including the Community Center, 43 acres of turf and 12 sports fields, will cost more to run. The Community Council and the community associations (HOAs) anticipated the hike and each set its 2008 budget accordingly. Anthem Community Council member Sean Riley said the Council budget is in good shape to handle the increased costs.
Parkside
“I think on Parkside, we’re probably going to be okay,” said Parkside Board of Directors President Dennis Thrush of the 2008 budget. However, the possibility of eventually increasing HOA fees was raised at a board meeting June 17. Thrush stressed the goal would be to balance the 2009 budget and, if necessary, cuts would be considered before HOA fees are raised.
Country Club
Bob Tack, Finance Committee Chairman for the Anthem Country Club HOA, in a statement called the water rate increase “Dramatic, unjustified and perhaps subject to a class action originated by individual homeowners.” Tack does not foresee an HOA increase for 2008, however. Good planning and prudent use of water are to be credited, he said. “DLC [Anthem’s landscape contractor] has been very diligent about that,” Tack said. DLC has kept an eye on water usage, shutting off irrigation to mature trees, for example, Tack said.
Fore!
The Country Club’s two golf courses are managed by ClubCorp which, according to a complaint on file with the Arizona Corporation Commission, expects its operational costs to soar by nearly $350,000 annually from $265,000 to over $600,000.
In the complaint, Desi Howe, general manager of the facility, stated that the Club would be required to raise membership dues to offset the significant increase in operational costs. If this cost were shared by all country club residents, it would amount to just over $10 per month per home.
As residents brace for the higher bills, the real effect on household budgets may be months away.
“Our water usage this year was off considerably since we had such a relatively cool May and even some rain,” said longtime resident, Connie Henry. “Next month’s bill would be a more accurate comparison. Hot weather to hot weather.” io
Contact the writer at nadine [at] ioanthem.com.
