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QC moves ahead on buying water company
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Queen Creek took one of the final steps to buy its own water company.
At its meeting Wednesday night, the Queen Creek Town Council voted unanimously to approve the loan documents to purchase the privately held Queen Creek Water Co. The town was approved for the $40 million loan from the Water Infrastructure Finance Authority of Arizona.
Assistant Town Manager Patrick Flynn, who has headed up the water company purchase, said the purchase will go before the Corporation Commission next week, and the deal is expected to close by the end of the month.
The final purchase price of the company is estimated to be $37 million to $37.5 million with the extra money from the loan being used for improvements and maintenance. The town is expected to pay about $3 million annually for 20 years on the loan, requiring an increase in water rates, a staff report states.
The town’s rate consultants said water fees for a customer using 10,000 gallons of water per month would increase from $23.70 per month to $34.29 per month. Town officials said those rates are below the state average of $40 per month.
The town will hold public hearings prior to any increase in water rates.
With the takeover of the water department, the town will also have 30 new employees, Flynn said.
Town Manager John Kross called the water company a “critical community asset” and said work has been under way for nearly 10 years to purchase the utility.
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