FLORENCE, AZ — Florence residents using 4,000 gallons of water per month could pay about $5.77 more each month, while a typical homeowner could see the Town’s share of their property tax bill rise by roughly $10 per year, if the Florence Town Council approves proposed rate increases later this year. The council has not chosen a final rate and is still awaiting state-shared revenue figures before making a final recommendation. The council voted March 3 to post public notices of intent — the first step in a required process that includes public hearings on May 5 and June 2, 2026, before any rates are set. Residents will have the opportunity to comment at those hearings before the council takes any vote on the actual increases.
For a detailed breakdown of proposed rates and their potential household impact, see the Pinal Post’s earlier coverage.
Florence Utility Rate Increase: Phased Over Three Years
The proposed utility rate increases follow a 2022 Water and Wastewater Utility Cost of Service Rate Study prepared by Willdan, approved by the council on September 12, 2022. That study outlined a 10-year schedule with both low- and high-growth scenarios.
In April 2025, the Town shifted to the low-growth model based on actual development trends in the Florence Water Utility Area. Staff recommends incremental rate increases in July 2026, July 2027, and July 2028, consistent with that study.
According to the staff report, the phased increases are intended to “address rising operating costs and ongoing debt service obligations in a responsible and predictable manner.” The report also stated that smaller, scheduled increases help stabilize utility funds while minimizing sudden, significant rate increases for customers. Staff also noted that unforeseen capital needs or additional debt could require future adjustments.
Mayor Keith Eaton noted during the utility discussion that the process is an annual one. “This is actually something we did almost exactly a year ago,” he said. “I think it’s a better way to ease into these different fees, instead of just big lump sums at the end, like some of our power companies are doing to us right now.”
Property Tax Notice: Not a Vote to Raise Taxes
During discussion of the property tax notice, Eaton clarified what the council’s action meant. “This is not a vote to raise taxes,” he said. “This is part of the deal to be able to have these discussions.”
Property Tax Notice and Levy Details
The maximum allowable levy for the upcoming year is $1,825,448. Levying that amount would generate an additional $141,660 in property tax revenue to support the General Fund, covering administration, public safety, community services, and community development.
Arizona law requires a 60-day public notice before the council can act on a rate increase. Both items passed with Councilmember Tony Bencina moving and Councilmember Nicole Buccellato seconding on the utility notice, and Buccellato moving on the property tax notice.
Public Hearings in May and June 2026
The public hearing on utility rate increases is set for May 5, 2026 at 6:00 p.m. The public hearing on the property tax rate increase is set for June 2, 2026 at 6:00 p.m. Both will be held in the Council Chambers at 775 North Main Street in Florence.
If the utility rate increase passes in May, new rates would take effect July 1, 2026, no earlier than 30 days after approval. At the June 2 public hearing, the council will review levy scenarios and take public comment before any final decision on the property tax rate.
