The first: A shortage on the Colorado River could be declared as soon as 2020. The Water Services Department says it needs the additional revenue and infrastructure for two reasons. Julie Watters, a spokesperson for the city, said in a statement that the council would revisit the proposed rate increase on January 9. "Staff is working to provide information to the City Council for their further reconsideration at that time,” she added. S&P gives the utility a AAA bond rating Fitch does not rate it. Phoenix's water utility has a credit rating of "Aa2 stable" - just two rankings below AAA - thanks to its "large and stable service area with ample water supply and treatment capacity," Moody's opinion said. "A newfound pattern of unwillingness to raise utility rates to support capital needs and operations would be credit negative," the ratings agency said in a credit opinion on Phoenix Water Enterprise, issued Tuesday. In a 5-3 vote on December 12, the city council rejected two proposed rate increases of 6 percent in 20, even though in October it had unanimously approved a notice of intent to raise rates.
Moody's is warning that Phoenix's failure to increase water rates to fund badly needed infrastructure could hurt its top-notch credit rating of the city's water utility.įor a city predicated on growth, maintaining pristine credit ratings is crucial to investing in infrastructure and upholding promises of a flourishing future.
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