On Friday, a Maricopa County Superior Court Judge rejected the City of Tucson’s request to move to arbitration a lawsuit brought by Pima County opposing what has become known as “Tucson’s tax the rich” scheme which increased water rates for unincorporated county residents. The suit will proceed before Judge Randall Warner.
The Tucson City Council imposed a 10 percent rate increase that went into effect December 1, 2021 for about 70,000 Tucson Water customers in the unincorporated county. Much of incorporated Pima County includes wealthier suburban areas including the Catalina Foothills.
The rate increase also affects the County, which purchases water from the city for numerous facilities in the unincorporated county.
The County alleges that the City of Tucson filed a motion to compel arbitration and move the proceedings behind closed doors in an attempt to keep the significant issues out of the courtroom and the public eye. The City cited previous water and sewer service agreements between the City and County, stating those agreements required arbitration.
Judge Warner denied the motion, saying the dispute before the court is not about the previous agreements but about matters of “…constitutional, statutory, and common law duties allegedly owed to ratepayers.”
The Pima County Board of Supervisors in November authorized suing the City over the rate increase and filed suit Dec. 17. The suit alleges the City’s action:
- Violates state law requiring water rates be “just and reasonable;”
- Is discriminatory by not treating similarly situated customers equally;
- Violates the 14th Amendment of the United States Constitution and Article II, Section 13 of the Arizona Constitution, providing for equal protection under the law and protection against race based discrimination; and
- Violates Article IV, Part 2, Section 19 of the Arizona Constitution prohibiting governments from enacting “special laws.”