October 5, 2026 Regular Council meeting

OFFICE OF THE CITY CLERK
COUNCIL MINUTES
October 5, 2026
The City Council of the City of Mesa met in the Council Chambers at City Hall, 20 East Main Street, on
October 5, 2026, at 5:47 p.m.
COUNCIL PRESENT COUNCIL ABSENT OFFICERS PRESENT
Mark Freeman None Scott Butler
Scott Somers Holly Moseley
Rich Adams Jim Smith
Jennifer Duff
Alicia Goforth
Francisco Heredia*
Dorean Taylor
(*Participated in the meeting through the use of video conference equipment.)
Mayor’s welcome.
Mayor Freeman conducted a roll call.
Mayor Freeman led a moment of silence.
Pledge of Allegiance was led by a member of Girl Scout Troop 3054.
There were no awards, recognitions, or announcements.
1. Take action on all consent agenda items.
All items listed on the agenda with an asterisk (*) are on the consent agenda which means they
will be considered by the City Council as a group, without any separate discussion of these
items, unless a Councilmember or citizen requests the item be removed from the consent
agenda to be considered separately. If a citizen wants an item removed from the consent
agenda, a request must be made prior to the scheduled start time of the meeting.
It was moved by Vice Mayor Somers, seconded by Councilmember Goforth, that the consent
agenda items be approved.
Upon tabulation of votes, it showed:
AYES – Freeman–Somers–Adams–Duff–Goforth–Heredia–Taylor
NAYS – None
Carried unanimously.

Regular Council Meeting
October 5, 2026
Page 2
*2. Approval of minutes of previous meetings as written.
Minutes from the Study Session held on September 28, 2026; and the Regular Council meeting
held on September 28, 2026.
3. Take action on the following liquor license applications:
*3-a. Blue Dragon Smoke & Vape
A smoke shop is requesting a new Series 10 Beer and Wine Store License for Blue
Dragon Smoke & Vape LLC, 430 North Dobson Road, Suite 100-101 - Jeffrey Craig
Miller, agent. There is no existing license at this location. (District 3)
*3-b. Harbor Seafood & Cajun House
A restaurant that serves lunch and dinner is requesting a new Series 12 Restaurant
License for Pufferfish LLC, 2711 South Alma School Road, Suite 14 - Jeffrey Craig
Miller, agent. The existing Series 12 Restaurant License held by Haedod One LLC will
revert to the State. (District 3)
*3-c. The Sacred Pint
A bar is requesting an ownership transfer of an existing Series 7 Beer and Wine Bar
License for The Sacred Pint 214 LLC, 214 West Main Street - Jennifer Laurel
McCartney, agent. The existing Series 7 Beer and Wine Bar License held by The Sacred
Pint LLC will revert to the State for modification. (District 4)
*3-d. Altar by Pinnacle Brewing
A tap room that serves lunch and dinner is requesting a new Series 12 Restaurant
License for Pinnacle Brewing Company, 104 West Main Street, Suite 101 - Robert
William Wilson, agent. There is no existing license at this location. (District 4)
*3-e. Buddha’s Brew Coffee Café
A café that serves breakfast and lunch is requesting a new Series 12 Restaurant
License for Old Town Ink Mesa LLC, 710 East Main Street - Michael Joseph Schreier,
agent. There is no existing license at this location. (District 4)
*3-f. Shima Sushi
A restaurant that serves lunch and dinner is requesting a new Series 12 Restaurant
License for Sushi Nakano Inc., 1902 East Baseline Road, Suite 5 - Leo Nakano, agent.
There is no existing license at this location. (District 4)
4. Take action on the following contracts:
*4-a. Use of a Cooperative Contract for the Purchase of One E-ONE Cyclone Chassis 95'
Rear Mount Platform (Replacement) for the Mesa Fire and Medical Department (Funded
by Apparatus Public Safety Bond Funds). (Citywide)
In lieu of the previously approved tiller ladder, the Mesa Fire and Medical Department is
requesting the purchase of one E-ONE Cyclone Chassis 95' Rear Mount Platform, as an

Regular Council Meeting
October 5, 2026
Page 3
essential need to support critical emergency operations. The current unit, a 2016 model
with 112,000 miles, has exceeded its reliable service life and no longer meets the
operational demands placed on it. The unit being replaced will be traded, auctioned or
sold.
The Mesa Fire and Medical Department and Procurement Services recommend
authorizing a change in vendor and type of apparatus, using the Sourcewell cooperative
contract with Fire Truck Solutions in an amount not to exceed $2,428,503, based on
estimated requirements.
*4-b. Three-Year Term Contract with Two-Year Renewal Options for Large Format
Commercial Printing for the Business Services Department. (Citywide)
This contract will be used by Print Services to print large format printing projects that
Print Services does not have the equipment to complete, or it is not economically
advantageous, such as foamboard posters, laminates, window clings, plotter printing,
and banners.
A committee representing Business Services and Procurement Services evaluated
responses and recommend awarding the contract to the highest scored proposal from
ARC Document Solutions, LLC, in an amount not to exceed $155,000 annually, with an
annual increase allowance of up to 5% or the adjusted Consumer Price Index
5. Introduction of the following ordinance and setting October 26, 2026 as the date of the public
hearing on this ordinance:
*5-a. Amending Mesa City Code Section 1-19-3 to authorize the City Attorney, through the
City’s national insurance broker and with the City Manager’s approval, to purchase
insurance coverages for the City with funds from the Property and Public Liability (PPL)
Trust Fund, consistent with such authority previously provided to the City Attorney via
Resolution Nos. 11602 and 11888. (Citywide) – Ordinance No. 6034
6. Discuss, receive public comment, and take action on the following ordinance and resolution
related to the project known as “Park North”:
*6-a. See: Items not on the Consent Agenda.
*6-b. See: Items not on the Consent Agenda.
Items not on the Consent Agenda
6-a. ZON24-00708 "Park North," 5± acres located approximately 270± feet east of the
northeast corner of South Power Road and East Guadalupe Road. Rezone from Limited
Commercial with Planned Area Development Overlay (LC-PAD) to Multiple Residence-3
with a Planned Area Development Overlay (RM-3-PAD) and Site Plan Review. This
request will allow for a 78-lot attached single residence development. EXDEV PARK
NORTH LLC, Owner; Brennan Ray, Ray Law Firm applicant. (District 6) – Ordinance
No. 6033
Staff Recommendation: Approval with conditions
P&Z Board Recommendation: Approval with conditions (Vote: 7-0)

Regular Council Meeting
October 5, 2026
Page 4
6-b. Approving and authorizing the City Manager to enter into a development agreement
relating to an attached, single residence development known as “Park North” located
approximately 270 feet east of the northeast corner of South Power Road and East
Guadalupe Road, requiring landscaping and construction of pathways in an adjacent
public park and notice to residents of possible noise and light intrusion from the park.
(District 6) – Resolution No. 12578
Anthony Kelley, a Mesa resident, requested an explanation regarding how the Park North
project aligns with the General Plan and how it differs from the Longbow project proposed
several years ago.
Stacy Shepard, a Mesa resident, spoke in favor of the Park North project and asked that
Council approve the project.
Carey Davis, a Mesa resident, expressed his support for the Park North project.
Cheryl Kirby, a Mesa resident, stated that she did not approve of the original apartment plans
for the Park North project; however, she is in support of the newest development of townhomes
for the Park North project.
David Winstanley, a Mesa resident, commended the Council for the modifications made to the
original Park North project and expressed his support for the project.
Brennan Ray, a certified real estate and zoning attorney with Ray Lawfirm, speaking on behalf
of the developer, thanked those who supported the project and described the process as long
and difficult. He explained that, although he was not involved with the original apartment
proposal, he later worked collaboratively with neighbors and City staff to develop a project that
earned community support. He stated that a General Plan amendment is not required since the
Neighborhood Place Type designation permits commercial and multifamily residential uses. He
also noted that the project aligns with the City’s Balanced Housing Plan and requested
approval.
Councilmember Goforth acknowledged that the original Longbow project was approved before
she joined the Council. She expressed sympathy for residents who felt unheard during that
process and apologized for their experience. She said although she could not address the
specifics of the earlier case, she hopes that residents now feel their concerns are being heard
and that the current process has been more responsive.
Councilmember Adams recalled previous discussions related to Park North and issues involving
bridges and cross-access. He praised the parties for working collaboratively to reach a solution
that benefits the neighborhood and praised the Planning & Zoning Board for being fully engaged
and unanimously recommending approval with a 7–0 vote.
Mayor Freeman emphasized that the project was not an easy process for either the developer
or the City and noted that the application has taken approximately seven years to reach this
point.
Mayor Freeman stated that pending no objection from the Council, agenda Items 6-a and 6-b
will be voted on in one motion.

Regular Council Meeting
October 5, 2026
Page 5
It was moved by Vice Mayor Somers, seconded by Councilmember Taylor, that Ordinance No.
6033 and Resolution No. 12578 be adopted.
Upon tabulation of votes, it showed:
AYES – Freeman–Somers–Adams–Duff–Goforth–Heredia–Taylor
NAYS – None
Carried unanimously.
7. Adopting the following Notice of Intention and setting December 8, 2026 as the date for the
public hearing:
7-a. Adoption of Notice of Intention to adjust utility rates.
Mayor Freeman advised that State law requires municipalities to provide advance notice before
adopting rate increases. He stated the proposed notice establishes the maximum rates Council
could adopt at the December 8, 2026 public hearing and that Council is not adopting any rates
at the current meeting. He commented that if Council later wishes to adopt rates higher than
those noticed, a new notice of intent would be required.
Office of Management and Budget Director Brian Ritschel displayed a PowerPoint Presentation.
(See Attachment 1)
Mr. Ritschel provided an overview of the City’s financial principles and explained the main focus
for the proposed utility rate adjustments. (See Pages 2 and 3 of Attachment 1)
Mr. Ritschel reviewed the original forecast, showing negative net sources and uses in FY 25/26
through FY 27/28, causing reserves to fall to approximately 13%, noting an increase to 20.8%
by the end of the forecast. (See Page 4 of Attachment 1)
Mr. Ritschel stated the updated forecast improved significantly due to several factors, including
approximately $12 million in debt-refinancing savings, higher water consumption and revenue,
lower natural gas and other operating costs, and capacity fees that shifted growth-related
project costs away from existing ratepayers. He noted that, as a result, reserves are projected to
improve to approximately 24% by FY 31/32. (See Page 5 of Attachment 1)
Mr. Ritschel highlighted the proposed changes that would reduce the typical water customer’s
impact from about 4.2% to 3.8% and said that lowering the service-charge increase helped
reduce costs for residential, commercial, landscape, and multi-unit customers. (See Page 6 of
Attachment 1)
Mr. Ritschel pointed out that Mesa’s combined water and wastewater costs remain well below
the Environmental Protection Agency’s (EPA) 4.5% threshold for a high household water
burden, including for minimum-wage households. He emphasized that Mesa remains an
affordable water and wastewater utility despite the proposed increases. (See Page 7 of
Attachment 1)
Mr. Ritschel advised that for a typical customer receiving water, wastewater, and solid-waste
services, the proposed increases would add approximately $5.92 per month, while an average
customer receiving electric and natural-gas services would see an impact of slightly more than
$6 per month. (See Page 8 of Attachment 1)

Regular Council Meeting
October 5, 2026
Page 6
Mr. Ritschel presented a graph of a typical homeowner’s average costs among several Arizona
cities, noting that with the proposed recommended increases, Mesa would remain among the
most affordable communities by comparison. He explained that only the FY 26/27 rates would
be formally adopted, while later-year projections are for planning purposes and will be reviewed
and adjusted annually. (See Page 9 of Attachment 1)
Mr. Ritschel outlined the schedule for the introduction of the utility rate ordinances with an
effective date of February 1, 2027. (See Page 10 of Attachment 1)
David Winstanley, a Mesa resident, raised concerns about excess-water surcharges and the
General Fund transfer, particularly for Encore at Eastmark, which has extensive landscaping
and grass. He asked the City to postpone the changes to allow further discussion and
questioned the basis for increasing the General Fund transfer.
It was moved by Councilmember Duff, seconded by Vice Mayor Somers, that the Notice of
Intention be adopted and December 8, 2026 set as the date for the public hearing.
Upon tabulation of votes, it showed:
AYES – Freeman–Somers–Adams–Duff–Goforth–Heredia–Taylor
NAYS – None
Carried unanimously.
8. Items from citizens present.
Yeager Zenkov, a Chandler resident, spoke in opposition to the NTT data center, citing
concerns about environmental impacts, increased heat, utility infrastructure costs, and potential
increases to ratepayers. He also criticized limits on public comments and urged Council to reject
the project.
Noah James Markham, a Tempe resident, requested improved sign-language interpretation for
live and recorded City Council meetings. He stated that he supports data centers and does not
believe water will be an issue.
David Winstanley, a Mesa resident, expressed support for automated license-plate readers and
traffic cameras but requested stronger safeguards for privacy and misuse of collected
information. He asked about consequences for employees and contractors who misuse the
data.
9. Adjournment.
Without objection, the Regular Council Meeting adjourned at 6:33 p.m.
________________________________
MARK FREEMAN, MAYOR
ATTEST:
___________________________________
HOLLY MOSELEY, CITY CLERK

Regular Council Meeting
October 5, 2026
Page 7
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular
Council Meeting of the City Council of Mesa, Arizona, held on the 5th day of October 2026. I further
certify that the meeting was duly called and held and that a quorum was present.
________________________________________
HOLLY MOSELEY, CITY CLERK
lr
(Attachments – 1)

Regular October Attachment Page 1 of Council 5, 84 2026 1 meeting
Recommendation Utility
Presenter:
Brian City Fund
A. FY
October Ritschel Council
– for 2026
5 , Management Forecast
2026 & Meeting Notice /27
Budget
Director &
of
Rates
Intention

Regular October Council 5, 2026 meeting
Attachment Page 2 of 84 1
BALANCE
AND
USES NET
SOURCES
RESIDENTIAL RESIDENTIAL EQUITY
AND BETWEEN 20% Financial
RATES NON- FUND OR
HIGHER
BALANCE
RESERVE
AFFORDABLE Principles
SERVICES
ARE RATE
UTILITY THE SMOOTHED
FORECAST PREDICTABLE ADJUSTMENTS
THROUGHOUT
AND THAT
2

Regular October Council 5, 2026 meeting
Attachment Page 3 of 84 1
and Equity
non-residential between
rates residential
Utility
Growth
pays Main
for Rates
growth
discretionary Focuses
Conservation
water
of Adjustments
use
Smooth
throughout
rate
the
forecast adjustments
3

Regular October Attachment Council 5, 2026 1 meeting
Page 4 of 84
GAS GAS ELECTRIC ELECTRIC SOLID SOLID SOLID WATER WATER *As a % of Ending Ending Beginning TOTAL DISTRICT NATURAL ELECTRIC SOLID WATER As of
Non-Residential Residential WASTE WASTE WASTE WASTEWATER WASTEWATER Next Fiscal Reserve Reserve NET GAS WASTE WASTEWATER 5/11/2026
- svc Non-Residential Residential Rolloff Commercial Residential Year's Balance Reserve SOURCES COOLING
- svc charge - svc Commercial Residential Non-Residential Residential (usage) (Tier 1 Expenditures Balance Balance AND FY
charge - svc charge usage) Percent* USES
charge
$3.00 $0.00 $5.00 $2.75 6.50% 10.00% 5.50% 8.50% 7.50% 8.50% 6.00% 22.0% $119,419,884 $117,019,543 $2,400,341 ($335,236) ($474,783) $659,688 $1,488,195 ($4,094,937) $5,157,415 Actuals FY 24/25 26/27
$3.00 $0.00 $5.00 $1.00 5.50% 5.50% 5.50% 8.50% 7.50% 20.00% 2.50% 17.3% $101,134,190 $119,419,884 ($18,285,694) ($327,380) ($5,404,411) $2,011,761 ($1,618,941) ($6,624,850) ($6,321,872) Estimate FY 25/26
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.50% 8.50% 7.50% 13.00% 3.50% 13.9% $85,597,663 $101,134,190 ($15,536,528) ($160,312) ($4,587,133) ($388,805) ($112,736) ($5,982,727) ($4,304,815) Budget FY 26/27
Adopted
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.50% 8.50% 7.50% 13.00% 3.50% 13.0% $83,983,691 $85,597,663 ($1,613,972) ($142,690) ($3,018,733) ($463,936) $1,953,496 ($3,819,959) $3,877,849 Forecast FY 27/28
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.50% 8.50% 7.50% 13.00% 3.50% 14.5% $100,040,612 $83,983,691 $16,056,922 ($137,173) $677,156 ($274,946) $4,861,956 $108,414 $10,821,514 Forecast FY 28/29
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.50% 8.50% 7.50% 13.00% 3.50% 17.0% $125,039,828 $100,040,612 $24,999,216 ($168,212) $62,329 ($467,300) $4,972,407 $6,387,796 $14,212,197 Forecast FY 29/30 Budget
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.50% 8.50% 7.50% 13.00% 3.50% 20.8% $162,264,504 $125,039,828 $37,224,676 ($201,698) $1,120,156 ($225,868) $10,109,813 $4,663,843 $21,758,429 Forecast FY 30/31
4

Regular October Attachment Council 5, 2026 1 meeting
Page 5 of 84
FY
GAS GAS ELECTRIC ELECTRIC SOLID SOLID SOLID WATER WATER *As a % of Ending Ending Beginning TOTAL DISTRICT NATURAL ELECTRIC SOLID WATER As of
Non-Residential Residential WASTE WASTE WASTE WASTEWATER WASTEWATER Next Fiscal Reserve Reserve NET GAS WASTE WASTEWATER 9/3/2026 26/27
- svc Non-Residential Residential Rolloff Commercial Residential Year's Balance Reserve SOURCES COOLING
- svc charge - svc Commercial Residential Non-Residential Residential (usage) (Tier 1 Expenditures Balance Balance AND
charge - svc charge usage) Percent* USES
charge
$3.00 $0.00 $5.00 $1.00 5.50% 5.50% 5.50% 8.50% 7.50% 20.00% 2.50% 20.6% $120,157,360 $119,419,884 $737,476 ($345,087) ($5,312,726) $4,060,522 $655,139 ($3,781,233) $5,460,861 Estimate FY 25/26
Recommended
$3.00 $1.50 $5.00 $2.00 6.00% 6.00% 5.50% 8.50% 7.50% 13.00% 3.50% 17.5% $108,056,600 $120,157,360 ($12,100,760) ($160,312) ($2,995,696) ($613,600) $210,001 ($5,668,273) ($2,872,881) Projected FY 26/27
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.50% 8.50% 7.50% 13.00% 3.50% 16.5% $106,599,776 $108,056,600 ($1,456,824) ($142,690) ($3,287,572) ($968,075) $2,357,854 ($4,067,116) $4,650,774 Forecast FY 27/28
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.50% 8.50% 7.50% 5.00% 3.50% 17.9% $123,335,020 $106,599,776 $16,735,244 ($137,173) $448,895 ($854,339) $5,372,359 $587,564 $11,317,938 Forecast FY 28/29 Rate
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.00% 8.00% 7.00% 5.00% 3.50% 19.6% $142,420,023 $123,335,020 $19,085,004 ($168,212) $361,173 ($1,269,674) $5,258,107 $4,816,543 $10,087,066 Forecast FY 29/30
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.00% 8.00% 7.00% 5.00% 3.50% 21.9% $167,767,392 $142,420,023 $25,347,369 ($201,698) $1,141,125 ($1,369,446) $9,893,037 $7,593,925 $8,290,426 Forecast FY 30/31
Adjustments
$3.00 $1.00 $5.00 $3.00 5.50% 5.50% 5.00% 8.00% 7.00% 5.00% 3.50% 24.0% $195,421,252 $167,767,392 $27,653,860 ($147,034) $1,840,407 ($1,285,440) $10,705,768 $7,282,910 $9,257,249 Forecast FY 31/32
5

Regular October Attachment Council 5, 2026 1 meeting
Page 6 of 84
(33 Commercial (9 Commercial (6 Multi-unit (6 Typical
kgals/month) – kgals/month) – kgals/month) kgals/month) Residential Customer
Landscape General Development
$235.91 $87.83 $41.48 $44.64 Current
Bill
+12.4% +7.6% +8.8% +4.2% Recommended Prior Customer
Adjustment Forecast
(+$29.18) $265.09 (+$6.68) $94.51 (+$3.64) $45.12 (+$1.87) $46.51 Rate
+12.9% +7.6% +9.2% +4.2% Rate Staff
Adjustment Recommended Impact
(+$30.40) $266.31 (+$6.70) $94.53 (+$3.80) $45.28 (+$1.86) $46.50
+12.8% +7.3% +9.0% +3.8% Recommended
Adjustment* AF&E
(+$30.13) $266.04 (+$6.43) $94.26 (+$3.72) $45.20 (+$1.69) $46.33 Rate
+4.0% water service adjustment *AF&E
down customers charge of recommended Committee
to for the an
+3.5% from all
6

Regular October Council 5, 2026 meeting
Attachment Page 7 of 84 1
in a The 0% 1% 2% 3% 4% 5%
percent 4.5
month,
threshold percent
assuming
a is threshold 2023
40-hour largely is Typical Typical EPA's
consistent widely
work Threshold
used Customer's Customer's
week. with in of
the
Hours literature Annual Annual "High Affordable
of Water 2024 High
Labor (Cardoso Water Water
at & and and Burden"
Minimum Wichman,
Wastewater Wastewater Water
wage 2022a; Utility
metric, Berahzer Expenses Expenses 2025
which et as as
al., a a Burden
suggests 2023; percent percent Services
a
threshold Heminger of of
of et Median Minimum
one al., 2026
day 2023; Household Wage
(8 Mack
hours), & (yearly)
or Wrase, Income
4.6
percent 2017). 2027
of Use of (proposed)
work the
hours 4.5
7

Regular October Attachment Page 8 of Council 5, 84 2026 1 meeting
Natural Electric Residential Total – Solid Wastewater Water (6 Residential
Gas Citywide Waste kgal) Residential
Monthly (90-gal Monthly
Bill Service + Green Bill
Area &
Clean Typical
Fee) Rate
$42.28 $123.10 Current $110.81 $35.99 $30.18 $44.64 Current Customer
$44.63 $126.76 Recommended $116.73 $37.96 $32.44 $46.33 Recommended Adjustments
+$2.35 +$3.66 Change +$5.92 +$1.97 +$2.26 +$1.69 Change
8

Regular Council meeting
October 5, 2026
Attachment 1
Page 9 of 84
9

Regular October Attachment Council 5, 2026 1 meeting
Page 10 of 84
February December December
1,
8, 1,
2027
2026 2026
- - - Next
City
Effective
Introduction
Council
Date
of Steps
for Action
Utility
Utility on
Rate
Rate Utility
Changes Rates Ordinances
10

Regular Council meeting
October 5, 2026
Attachment 1
Page 11 of 84
11

Regular October Council 5, 2026 meeting
Attachment Page 12 of 84 1
separate Each
treated utility
as business is
one
operated
fund center
as
but a
Utility
net Reserve
for
balance
unforeseen
provides Operations
conditions a
safety
smooth Reserve
rate
balance
year
adjustments can
be
year used
to to
12

Regular Council meeting
October 5, 2026
Attachment 1
Page 13 of 84
Updated
Forecast
–
Budgeted
Rate
Adjustments
13

Regular October Attachment Council 5, 2026 1 meeting
Page 14 of 84
• •
• • • • • FY
$ $ $ $ $ 6
2.1M 2.1M 2.3 M 2.6 M .9 M Significant Estimates Improvement
Solid Water Water Higher 25/26
refunding to
Waste than in
commodity of Treatment favorable Quarter net
fleet utility Year
and and anticipated 4
purchases debt items: Year sources
landfill Water
(CY service water End and End
charges 2025 Reclamation uses
consumption
CAP Estimates
Plant from Estimate
reconcile
operating Quarter
credit) 3
expenses Year
Updates
End
14

Regular October Attachment Council 5, 2026 1 meeting
Page 15 of 84
Water
Rates
Erik
Hansen Chase
Joe Resources
– Carlile
Utilities – Giudice
Deputy –
Financial Director Recommendations
Director
Analyst
Department

Regular Council meeting
October 5, 2026
Attachment 1
Page 16 of 84
Recommended
Water
Rate
Program
Adjustments
16

Regular October Attachment Council 5, 2026 1 meeting
Page 17 of 84
$0M $20M $40M $60M $80M $100M $120M $140M
Actual FY21/22 $61.8M
Actual FY22/23 $64.0M
Operating
Actual FY23/24 $73.2M
Actual FY24/25 $78.6M
Estimate FY25/26 $77.9M Costs
Projected FY26/27 $91.5M
–
Forecast FY27/28 $94.5M
Water
Forecast FY28/29 $98.3M
Forecast FY29/30 $101.0M
Utility
Forecast FY30/31 $103.9M
Forecast FY31/32 $107.3M
17

Regular October Attachment Council 5, 2026 1 meeting
Page 18 of 84
$0M $10M $20M $30M $40M $50M $60M $70M $80M $90M $100M
Actual FY21/22 $47.9M
Actual FY22/23 $49.3M Debt
Actual FY23/24 $52.2M
Existing Actual FY24/25 $57.1M Service
Debt
Service Estimate FY25/26 $67.2M
Projected –
Forecast FY26/27 $72.2M
Future
Debt Forecast FY27/28 $72.6M $3.9M $76.5M Water
Service
Forecast FY28/29 $75.0M $6.3M $81.4M
Forecast FY29/30 $75.0M $11.1M $86.1M
Utility
Forecast FY30/31 $74.9M $15.9M $90.7M
Forecast FY31/32 $76.4M $21.3M $97.7M
18

Regular October Attachment Council 5, 2026 1 meeting
Page 19 of 84
Rate
Usage Drought Service Component Rate
Charge Charge
• • • • All Commodity All
Commercial Tier 4 Tier 3 Tier 2 Tier I Residential Customers Customers Adjustments
(>24,000 (15,000 (7,000 (4,000 Charge
– – –
gallons) 24,000 14,000 6,000 Customer
gallons) gallons) gallons) Recommended
that
are
Recommended Budget
+13.0% +4.5% +4.5% +3.5% +3.5% $0.08 +4.5% Adjustment Rate
Forecast
Rate
Predictable
Rate Staff
+13.0% +4.5% +4.5% +3.5% +3.5% $0.13 +4.0% Adjustments
Adjustment Recommended
and
Rate AF&E
+13.0% +4.5% +4.5% +3.5% +3.5% $0.13 +3.5% Adjustment Recommended
Smoothed
19

Regular October Attachment Council 5, 2026 1 meeting
Page 20 of 84
Rate
Surcharge Usage
Charge Component Rate
• • Excess • • Excess Other Large
Tier 2 Tier 1 Tier 2 Tier 1 Non-residential Adjustments
(>150% (>100% Surcharge (>150% (>100% Surcharge Non-residential Commercial
of – - of – -
WWA) 150% WWA) 150% General Landscape Recommended
of Landscape of
WWA) WWA) Customer that
are
Rate
Predictable
(>100% (>100% Recommended Budget
N/A of +15.0% N/A of +13.0% +15.0% +12.0% +13.0% Adjustment Adjustments
WWA) WWA) Forecast
Rate and
+25.0% +15.0% +23.0% +13.0% +15.0% +12.0% +23.0% Adjustment Recommended
Smoothed
Rate
20

Regular October Council 5, 2026 meeting
Attachment Page 21 of 84 1
kgals
0 2 4 6 8 10 12 14 16 Existing
December Excess
Winter Water
January 8 kgals Water
Surcharge:
Average
February
Excess
March
April
Water
May
Existing
June Excess Commercial
Surcharge
July $2.99/kgal Surcharge
Landscape
Threshold
August (>100% Example
WWA)
September
October
November
21

Regular October Council 5, 2026 meeting
Attachment Page 22 of 84 1
kgals
0 2 4 6 8 10 12 14 16 Proposed
December Tiered
Winter Excess
8
January kgals Water
Water
Average
February Surcharge:
Excess
March
April
Water
May
Excess
June Excess
Commercial
Surcharge
Surcharge
–
July Tier $3.44/kgal – $3.74/kgal Surcharge
1 Tier Landscape
(>100 2
– (>150%
August 150% Example
WWA)
WWA)
September
October
November
22

Regular Council meeting
October 5, 2026
Attachment 1
Page 23 of 84
0% 20% 40% 60% 80% 100%
Percent
2025 59% 19% 22% of
Bills
Historical
0% 20% 40% 60% 80% 100%
Percent Under Excess
2025 41% 23% 36% Consumed of General
Water
Proposed Surcharge
kgals
0K 200K 400K 600K 800K Commercial
1
Monthly
2 Tiers
3
4 Consumption Distribution
5
Average by
6
2025
7 Percent
8
Winter
9 -
10 Water
11
12
23

Regular Council meeting
October 5, 2026
Attachment 1
Page 24 of 84
0% 20% 40% 60% 80% 100%
Percent
2025 39% 16% 45% of
Bills
Historical
0% 20% 40% 60% 80% 100%
Percent Excess
Under
Consumed of
2025 17% 14% 69% Commercial
Water
Proposed Surcharge
kgals
0K 200K 400K 600K 800K
1 Monthly Landscape
2 Tiers
3
4 Consumption Distribution
5
Average by
6
2025
7 Percent
8
Winter
9
-
10 Water
11
12
24

Regular October Council 5, 2026 meeting
Attachment Page 25 of 84 1
Equity
44% 48% 52% 56%
Between
FY
Residential Residential 25/26 Estimate
Non-residential Non-residential
Rate
Consumption Rate
Consumption Revenue Residential Residential
Revenue Residential
Rate FY
Consumption 26/27 Projected
Revenue
FY
54% 46% 47% 53% Estimate 25/26
and
FY
53% 47% 50% 50% (parity) Projected 26/27 Non-residential Non-residential
FY Non
27/28 Forecast
FY Rate
53% 47% 52% 48% Forecast 27/28 Consumption
Revenue
FY
53% 47% 53% 47% (equity) Forecast 28/29
-residential
FY
28/29 Forecast
Rates
25

Regular Council meeting
October 5, 2026
Attachment 1
Page 26 of 84
Recommended
Wastewater
Rate
Program
Adjustments
26

Regular October Attachment Council 5, 2026 1 meeting
Page 27 of 84
Millions
$0 $10 $20 $30 $40 $50 $60 $70
Actual FY21/22 $29.6M
Operating
Actual FY22/23 $32.0M
Actual FY23/24 $37.6M
Actual FY24/25 $40.1M Costs
Estimate FY25/26 $42.7M
–
Projected FY26/27 $47.3M
Forecast FY27/28 $49.3M
Wastewater
Forecast FY28/29 $51.1M
Forecast FY29/30 $52.6M
Forecast FY30/31 $53.9M Utility
Forecast FY31/32 $56.7M
27

Regular October Attachment Council 5, 2026 1 meeting
Page 28 of 84
$0M $10M $20M $30M $40M $50M $60M $70M $80M $90M $100M
Actual FY21/22 $39.5M Debt
Actual FY22/23 $37.5M
Actual FY23/24 $41.5M Service
Existing
Actual FY24/25 $41.1M
Debt
Service –
Estimate FY25/26 $43.0M
Projected Forecast FY26/27 $44.3M
Future
Debt Forecast FY27/28 $43.3M $5.7M $49.1M Wastewater
Service
Forecast FY28/29 $41.5M $10.9M $52.3M
Forecast FY29/30 $38.7M $16.7M $55.3M
Utility
Forecast FY30/31 $37.7M $22.5M $60.2M
Forecast FY31/32 $37.9M $29.3M $67.1M
28

Regular October Attachment Council 5, 2026 1 meeting
Page 29 of 84
Rate
Usage Service
Component Rate
Charge Charge
Residential Residential Adjustments
Non-residential Non-residential
Recommended
that
Customer
are
Rate
Predictable
Recommended Prior Adjustments
+8.5% +7.5% +8.5% +7.5% Adjustment Forecast and
Rate
Rate Smoothed
+8.5% +7.5% +8.5% +7.5% Adjustment Recommended
29

Regular October Attachment Council 5, 2026 1 meeting
Page 30 of 84
(9 (4 Typical
kgals/month) Commercial kgals/month) Residential
Customer
$61.70 $30.18 Current Customer
Bill
Usage Service Usage Service
Charge: Charge: Charge: Charge: Adjustment Recommended
+8.5% +8.5% +7.5% +7.5% Rate Impact
+8.5% +7.5% Current Impact
Bill to
(+$5.26) $66.96 (+$2.26) $32.44
30

Regular Council meeting
October 5, 2026
Attachment 1
Page 31 of 84
Rates
Energy
John
Scott
Petrof
–
Bouchie
Senior
–
Fiscal
Recommendations
Director
Resources
Analyst

Regular Council meeting
October 5, 2026
Attachment 1
Page 32 of 84
Electric
32

Regular October Council 5, 2026 meeting
Attachment Page 33 of 84 1
Millions
$0 $2 $4 $6 $8 $10 $12 $14
FY
Actuals 21/22 $8.1M
Operating
FY
Actuals 22/23 $8.5M
FY
Actuals 23/24 $9.3M
FY
Actuals 24/25 $9.1M
Costs
FY
Estimate 25/26 $10.0M
–
FY
Projected 26/27 $10.1M
FY
Forecast 27/28 $10.5M Electric
FY
Forecast 28/29 $10.6M
FY
Forecast 29/30 $10.8M
Utility
FY
Forecast 30/31 $11.0M
FY
Forecast 31/32 $11.3M
33

Regular October Council 5, 2026 meeting
Attachment Page 34 of 84 1
Millions
$0M $5M $10M $15M $20M $25M $30M $35M $40M $45M $50M
Actual FY21/22 $3.2M
Actual FY22/23 $4.1M
Debt
Actual FY23/24 $4.8M
Existing Actual FY24/25 $4.0M Service
Debt
Service Estimate FY25/26 $4.9M
–
Projected Forecast FY26/27 $4.8M
Future Electric
Debt Forecast FY27/28 $5.0M $0.8M $5.8M
Service
Forecast FY28/29 $5.6M $1.3M $6.9M
Utility
Forecast FY29/30 $6.2M $1.9M $8.1M
Forecast FY30/31 $6.4M $2.5M $8.8M
Forecast FY31/32 $6.3M $3.0M $9.3M
34

Regular Council meeting
October 5, 2026
Attachment 1
Page 35 of 84
Total
Residential
Customer
Electric
Supply
Cost
–
SRP
vs
COM
35

Regular October Attachment Council 5, 2026 1 meeting
Page 36 of 84
• • • APS • • • • • • • SRP
Average Rate – Tier Tier Tier Tiered Average Overall –
Average review 2025 3 – 2 – 1 – Average -
Usage residential Rate Large Monthly Usage residential 2.4% November
– process Single-family Multifamily – price
1,000 user Case single-family Service 1,117 user 2025
kWh bill continues home home Charge kWh bill increase
- Rate
impact home with $20 impact
- $20 through user average (current) - Increase
end - $5.61 SRP/APS
per of $40
usage
month 2026 (About -
$30
3%
of
residential Increases
customers)
36

Regular Council meeting
October 5, 2026
Attachment 1
Page 37 of 84
Residential
Electric
Bill
Comparison
37

Regular October Attachment Page 38 Council 5, of 2026 84 1 meeting
*Based • Actual Actual
on Lower Proposed – –
weather electric FY FY
25/26 24/25
normalized supply
costs
residential have
forecasted assisted $61.44 $63.88 $64.06 Small Residential
in
usage lowering
total
bill Electric
amounts $126.76 $137.49 $141.51 Average
Bills
$207.93 $228.34 $235.10 Large
38

Regular October Attachment Council 5, 2026 1 meeting
Page 39 of 84
(Average WINTER USAGE SUMMER USAGE SYSTEM
MONTHLY
INCREASE EFFECTIVE CHARGE COMPONENT
per per
Customers) BILL CHARGE CHARGE SERVICE
kWh kWh
Tier Tier Tier Tier Proposed
2 - 1 - 2 - 1 -
$123.10 $20.50 CURRENT
$0.04741 $0.04533 $0.05228 $0.05336
Tier Tier Tier Tier Residential
2 - 1 - 2 - 1 -
$126.76 $22.50 PROPOSED
$0.05026 $0.04805 $0.05437 $0.05496
Electric
3.0% $3.66 6% 6% 4% 3% $2.00 CHANGE
Rates
3.8% $4.66 6% 6% 4% 3% $3.00 FORECAST PRIOR
39

Regular Council meeting
October 5, 2026
Attachment 1
Page 40 of 84
Commercial
Electric
Bill
Comparison
40

Regular October Attachment Page 41 Council 5, of 2026 84 1 meeting
(Average WINTER USAGE SUMMER USAGE SYSTEM
MONTHLY
INCREASE EFFECTIVE per CHARGE COMPONENT
Customers) BILL CHARGE per CHARGE SERVICE
kWh kWh
Proposed
Tier Tier Tier Tier Three Single
2 - 1 - 2 - 1 - Phase Phase
$478.36 CURRENT
$0.04114 $0.05375 $0.05109 $0.06491 - -
$30.74 $24.72
Commercial
Tier Tier Tier Tier Three Single
2 - 1 - 2 - 1 - Phase Phase
$490.10 PROPOSED
$0.04319 $0.05536 $0.05417 $0.06686 - -
$35.74 $29.72 Electric
2.5% $11.74 5% 3% 6% 3% $5.00 CHANGE Rates
1.0% $5.00 5% 0% 5% 0% $5.00 FORECAST PRIOR
41

Regular Council meeting
October 5, 2026
Attachment 1
Page 42 of 84
Gas
42

Regular October Council 5, 2026 meeting
Attachment Page 43 of 84 1
Millions
$- $5 $10 $15 $20 $25 $30
FY
Actuals 21/22 $16.6M
FY
Actuals 22/23 $17.8M
FY Operating
Actuals 23/24 $19.0M
FY
Actuals 24/25 $19.6M
FY
Estimate 25/26 $21.3M Costs
FY
Projected 26/27 $22.6M –
FY
Forecast 27/28 $23.1M Gas
FY
Forecast 28/29 $23.5M
FY Utility
Forecast 29/30 $23.7M
FY
Forecast 30/31 $24.3M
FY
Forecast 31/32 $24.9M
43

Regular October Attachment Council 5, 2026 1 meeting
Page 44 of 84
Millions
$0M $5M $10M $15M $20M $25M $30M $35M $40M $45M $50M
Actual FY21/22 $8.9M
Actual FY22/23 $12.6M
Debt
Actual FY23/24 $14.7M
Existing Actual FY24/25 $14.1M
Debt Service
Service Estimate FY25/26 $16.3M
Projected Forecast FY26/27 $17.3M –
Future
Debt Forecast FY27/28 $17.6M $2.0M $19.6M Gas
Service
Forecast FY28/29 $15.2M $3.2M $18.3M Utility
Forecast FY29/30 $16.2M $4.4M $20.6M
Forecast FY30/31 $16.4M $5.5M $21.9M
Forecast FY31/32 $16.5M $6.6M $23.1M
44

Regular October Attachment Council 5, 2026 1 meeting
Page 45 of 84
• • April
•
$5.18 From 2027
per Approximately Rate
~$49
month to
Increase
~$54 10.69%
monthly monthly
bill Southwest
increase
for
average Gas
residential
Increase
customers
45

Regular Council meeting
October 5, 2026
Attachment 1
Page 46 of 84
Total
Residential
Customer
Southwest
Natural
Gas
Gas
vs
Supply
COM
Cost
(Average
Customer)
–
46

Regular Council meeting
October 5, 2026
Attachment 1
Page 47 of 84
SWG Mesa SWG Mesa Residential
- - - - Monthly Bill
Current Current Proposed Proposed $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
$19.15 $24.60 $20.35 $26.30 Small
Gas
Bill
$43.65 $42.28 $48.31 $44.63 Average
$82.91 $72.32 $93.12 $75.96 Large
Comparison
47

Regular October Attachment Page 48 Council 5, of 2026 84 1 meeting
SYSTEM
EFFECTIVE (Average WINTER USAGE SUMMER USAGE
MONTHLY per per WINTER SUMMER SERVICE COMPONENT
INCREASE Customers) BILL therm CHARGE therm CHARGE
CHARGE Proposed
Tier Tier Tier Tier
$42.28 2 - 1 - 2 - 1 - $20.24 $17.31 CURRENT
$1.0009 $0.7961 $0.4233 $0.7961
Residential
Tier Tier Tier Tier
$44.63 2 - 1 - 2 - 1 - $21.74 $18.81 PROPOSED
$1.0609 $0.8319 $0.4488 $0.8319 Gas
5.6% $2.35 6% 4.5% 6% 4.5% $1.50 CHANGE Rates
5.4% $2.27 8% 7% 15% 7% $1.00 FORECAST PRIOR
48

Regular October Council 5, 2026 meeting
Attachment Page 49 of 84 1
Monthly Bill
SWG Mesa SWG Mesa
- - - -
Current Current Proposed Proposed $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600
Commercial
$104.01 $107.46 $109.54 $111.61 Small
Gas
$513.56 $475.84 $556.54 $487.68 Average Bill
$1,331.55 $1,405.53 $1,392.52 $1,438.55 Large Comparison
49

Regular October Attachment Council 5, 2026 1 meeting
Page 50 of 84
SYSTEM
EFFECTIVE (Average WINTER USAGE SUMMER USAGE
MONTHLY
per per WINTER SUMMER SERVICE COMPONENT Proposed
INCREASE Customers) BILL therm CHARGE CHARGE
therm
CHARGE
Tier Tier Tier Tier
2 - 1 - 2 - 1 -
$475.84 $57.34 $47.66 CURRENT Commercial
$0.6623 $0.6614 $0.4584 $0.6107
Tier Tier Tier Tier
2 - 1 - 2 - 1 -
$487.68 $60.34 $50.66 PROPOSED Gas
$0.6955 $0.6812 $0.4814 $0.6290
Rates
2.5% $11.84 5% 3% 5% 3% $3 CHANGE
50

Regular October Attachment Council 5, 2026 1 meeting
Page 51 of 84
•
• • • •
$60 No Fee Staff Manual
per charge trip
recovers to
meter, to Meter
cost read Manual
per
customers of meter,
billing Reading
cycle with non-standard document, Meter
AMI Fee
meter for
service provide
non-AMI Reading
information
to meters Fee
billing
51

Regular Council meeting
October 5, 2026
Attachment 1
Page 52 of 84
Rat
es
Solid
Sheri
Collins
-
Recommendat
Director
Wast
e
ions

Regular October Council 5, 2026 meeting
Attachment Page 53 of 84 1
Millions
$- $10 $20 $30 $40 $50 $60 $70 $80
FY
Actuals 21/22 $40.9M
Solid
FY
Actuals 22/23 $45.3M
FY
Actuals 23/24 $49.0M
Waste
FY
Actuals 24/25 $49.5M
FY
Estimate 25/26 $51.8M
FY
Projected 26/27 $57.4M Operating
FY
Forecast 27/28 $59.2M
FY
Forecast 28/29 $60.1M
FY Costs
Forecast 29/30 $60.7M
FY
Forecast 30/31 $61.8M
FY
Forecast 31/32 $63.4M
53

Regular Council meeting
October 5, 2026
Attachment 1
Page 54 of 84
MRF
Recycling
54

Regular October Attachment Page 55 Council 5, of 2026 84 1 meeting
90-Gallon
Trash Residential
Solid
Barrel 5.5%
Waste
$34.99 Current
Proposed
Residential
Proposed
$1.92
Increase Increase
Rate
Proposed
$36.91
Total
55

Regular October Attachment Page 56 Council 5, of 2026 84 1 meeting
and Mesa
Clean
Fee Green Solid
$1.00 Current Waste
$0.05 Increase Proposed
Neighborhood
$1.05 Total Proposed
Cleanup
Program
56

Regular October Attachment Page 57 Council 5, of 2026 84 1 meeting
Mesa
Green 90-Gallon
Total and Trash Residential
Clean Barrel Total
Fee
$35.99 $1.00 $34.99 Current Residential Solid
Waste
Proposed
$1.97 $0.05 $1.92
Increase Increase
Proposed
$37.96 $1.05 $36.91
Total
57

Regular October Attachment Council 5, 2026 1 meeting
Page 58 of 84
Bulk Residential Solid
Waste
$31.00 Current
Bulk
Item
Proposed
$4.00
Increase
Collection
Proposed
$35.00
Total
58

Regular October Attachment Page 59 Council 5, of 2026 84 1 meeting
Appliance Residential Solid
Waste
$19.00 Current
Appliance
Proposed
$4.00
Increase
Collection
Proposed
$23.00
Total
59

Regular October Attachment Council 5, 2026 1 meeting
Page 60 of 84
6%
Commercial
Overall
• • •
Increase • • • Increase • Increase Front
8YD 6YD 2YD, 6-yard Rate
fee from from 3YD, Multi base
for trash
28% 31% 4YD Bin bin rate Load
to to from
out-of-zone 31% 35% Factor increase Increase
36%
to Discount from
collection 40% Trash
$127.48
from
to
$33.00
$138.50
to
$35.00
60

Regular October Council 5, 2026 meeting
Attachment Page 61 of 84 1
Commercial
9%
Rate
•
Front
•
Increase
6-yard
bin base
rate Increase Load
increase
from
$107.87 Recycle
to
$117.57
61

Regular October Attachment Council 5, 2026 1 meeting
Page 62 of 84
• • •
customer $21.50 • • • Increase • • Increase
40-yard 30-yard 15/20-yard Increase Increase
(30 yd) increase roll roll haul tonnage
for off off roll fee green trash
a off by waste tonnage rate
increase increase to
one-time increase $5/$11/$12 tonnage rate follow 6%
from from
trash $166 $150 from rate from landfill
and to to $140 from $51.50
green $178 $161 to to increase Overall Commercial
$145 $59.82
waste to $55.00
$63.32 Rate
Roll
Increase Off
62

Regular October Attachment Page 63 Council 5, of 2026 84 1 meeting
Mesa
Green 90-Gallon
and Residential Appliance Residential Bulk Residential Trash Residential
Clean Barrel
Fee
Residential
$1.00 Current $19.00 Current $31.00 Current $34.99 Current
Proposed Proposed Proposed Proposed Overview
$0.05 $4.00 $4.00 $1.92
Increase Increase Increase Increase
$1.05 Proposed $23.00 Proposed $35.00 Proposed $36.91 Proposed
Total Total Total Total
63

Regular October Attachment Page 64 Council 5, of 2026 84 1 meeting
6Yard 6Yard
30Yard 30Yard Front Front
Rolloff Rolloff Roll Load Load Front
Green Trash Off Recycling Trash Load
Waste – 1x – 1x – 1x Commercial
- 1x Week Week
$479.46 $454.50 Current $107.87 $127.48 Current
Overview
$21.50 $21.50 Increase Proposed $9.70 $11.02 Increase Proposed
$500.96 $476.00 Total Proposed $117.57 $138.50 Total Proposed
64

Regular Council meeting
October 5, 2026
Attachment 1
Page 65 of 84
Backup

Regular October Attachment Council 5, 2026 1 meeting
Page 66 of 84
Electric Natural Solid Water Utility
Wastewater
Gas Waste Utility
FY
24
/25
18,470 80,161 136,694 146,750 165,637 Accounts
Connections
66

Regular October Attachment Council 5, 2026 1 meeting
Page 67 of 84
Landscape Landscape Excess Excess Large Commercial Commercial Multi-Unit Residential Residential Residential Water Detail
Interdepartmental Non-Residential Staff
Excess Excess Surcharge Surcharge Comm./Industrial Usage Usage Tiers Tiers Service
Tier Tier Landscape Service 3 & 4 1 & 2 Recommendations Water of
Surcharge Surcharge 2 1 Charge
Usage Usage Charge
Tier Tier
2 1
Revenue
Old
7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Method
Recommendations
Impact
3.5% 25.0% 15.0% 23.0% 13.0% 23.0% 15.0% 13.0% 4.0% 12.0% 4.5% 3.5% 4.0% Recommended
+$216,000 -$537,000 -$202,000 -$119,000 -$257,000 -$477,000 -$2,205,000 -$1,303,000 +$502,000 -$1,180,000 +$528,000 +$1,414,000 +$1,765,000 Difference Revenue
67

Regular Council meeting
October 5, 2026
Attachment 1
Page 68 of 84
Detail
Water of
Revenue
Recommendations
Impact
68

Regular October Attachment Council 5, 2026 1 meeting
Page 69 of 84
• • • •
the new to
Customers transferred services Clarify Clarify provider services Clarify
receive
Capacity customer until that a that will that
Fees shall to the the the paper a have account Terms
pay new establishes customer bill monthly the
all customer same holders &
customer of paper
applicable service contacts record billing name who
fees at is fee on receive Conditions
the the file
for City responsible will with City
each property be
directly applied their
service and for wastewater
to all to non-City
Updates
responsibility cancel charges and
connection, customers water
for solid
it service, that utility waste
including or utility
a elect
69

Regular October Attachment Council 5, 2026 1 meeting
Page 70 of 84
• •
already Remove Remove
Electric
establishment
included section
duplicated
of
in that
the service Terms
section allows
Terms
on &
&
customers
Conditions non-residential
to
Conditions
provide
security a
letter
deposits of
credit
Updates
that
for
is
the
70

Regular Council meeting
October 5, 2026
Attachment 1
Page 71 of 84
Water
Backup
71

Regular October Council 5, 2026 meeting
Attachment Page 72 of 84 1
Source:
0% 5% 10% 15% 20% 25% 30% 35% 40%
BLS
CPI-U
(All 2018 Residential
Items),
Phoenix-Mesa-Scottsdale; 2019 0.00% 3.07%
Water
CPI
annual
2020 0.00% 4.92% Rate
averages
Base
rebased
to Residential 2021 1.51% 10.19%
2018
=100 Water Year Adjustment
Rate -
2022 4.04% 22.88%
Adjustment 2018
and
(Typical
2023 7.53% 29.25% CPI
Customer)
2024 10.74% 32.12%
Comparison
2025 15.66% 33.69%
72

Regular October Attachment Council 5, 2026 1 meeting
Page 73 of 84
Charge or an authorized sheet. gallons Drought
shall authorized The of
not federal Drought water Commodity
be State
considered agency agency Commodity consumption Charge:
or
gross and authority above During
Charge a Drought
continue or 3,000
revenue b) a shall declared
for until gallons
all shortage become water
purposes per
shortage effective billing shortage,
of declaration Commodity
Mesa upon period a
City declarations for a) in Drought
the a the
Code have Salt shortage amount
Section been River on Commodity Charge
or
3-3-4(D). terminated. Verde declaration the Charge
River for Drought will
The by the be
the Commodity
Drought Salt Colorado assessed
River River Charge per
Commodity Project by 1,000
any
73

Regular October Attachment Council 5, 2026 1 meeting
Page 74 of 84
• • • • • •
recovery. Part One 2026. Another time Rate Currently General Applies
of a recommended more it was Mesa
had to
three-year +30% +30% been adjusted 12 Aviation
facilities
for customers
plan 2027. adjustment adjustment adjusted +30% Area. Gateway
located
to in in on
attain is was ten 2025; this in
the
cost applied years. the rate. North
in first Airport
Fire
Protection
Demand
Charge
74

Regular October Council 5, 2026 meeting
Attachment Page 75 of 84 1
>24 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Kgals
Residential
Total 4 3 2 1 0 Tier
100% 1.95% 5.58% 28.77% 31.24% 32.47% Accounts Percent (December Residential
Average
2026) 2025 Water and
- Winter
140,268 2,730 7,829 40,350 43,818 45,540 Accounts Number February Usage
-
Highest
100% 6.06% 11.80% 31.11% 23.71% 27.32% Accounts Percent (May Point of
2026 Average Usage Commercial
- July Summer (by
143,642 10,203 17,884 42,479 30,595 36,353 Accounts Number 2026) Account)
Accounts Commercial Bill
100% 30.23% 69.77% 69.00% 68.19% 67.32% 66.39% 65.39% 64.36% 63.27% 62.17% 60.93% 59.65% 58.25% 56.68% 54.99% 53.13% 51.07% 48.99% 46.50% 43.79% 40.85% 37.33% 33.16% Percent
(rolling) (August Water
2025 Overall Usage
- July -
Highest Distribution
Accounts 2026)
6,861 2,074 4,787 4,734 4,679 4,619 4,555 4,487 4,416 4,342 4,266 4,181 4,093 3,997 3,889 3,773 3,646 3,504 3,361 3,191 3,004 2,803 2,562 2,275 Number Point
(rolling) of
Usage
75

Regular October Attachment Council 5, 2026 1 meeting
Page 76 of 84
All Large
Other Multi-unit Commercial Residential
Inderdepartmental
Commercial
Development
Total
30,900,096 885,397 1,403,266 4,788,771 663,355 8,858,946 14,300,361
kgals kgals kgals kgals kgals kgals kgals
FY25/26
100% 3% 5% 15% 2% 29% 46%
Water
Multi-Unit Residential
2%
15% Sales
29%
5%
Commercial 3%
Inderdepartmental
All Large
Other 46%
Commercial
76

Regular October Attachment Council 5, 2026 1 meeting
Page 77 of 84
All Large
Other Multi-unit Commercial Residential
Inderdepartmental
Commercial
Development
Total
1,947,962 3,965 14,303 59,987 106 129,800 1,739,801
bills bills bills bills bills bills bills
FY25/26
100.0% 0.2% 0.7% 3.1% 0.0% 6.7% 89.3%
Water
Multi-unit Residential
Development Bills
7%
Commercial 3%
Inderdepartmental
89%
All Large
Other
Commercial
77

Regular October Attachment Council 5, 2026 1 meeting
Page 78 of 84
Rate Rate
Commercial Commercial Commercial
Adjustment Adjustment
(usage General (usage Landscape Customers
Average
charge (kgals/mo) charge (kgals/mo) - Average
Excess
adjustment) adjustment)
Consumption
per Commercial Water
+5.5% 44.14 +7.5% 88.01 FY22/23 Account:
+5.0% 46.36 +7.5% 96.52 FY23/24 Surcharge
Consumption
+8.5% 48.19 +10.5% 105.90 FY24/25
+20.0% 49.02 +25.0% 102.02 FY25/26
78

Regular October Attachment Council 5, 2026 1 meeting
Page 79 of 84
Water - - - In
Income These charge). These These maintain the
at and a City
of
wastewater customers customers customers winter Mesa,
four-and-a-half also only only water the High
service receive pay pay average typical
(4.5) the the
percent charge: 30 service service of customer Water
percent 2kgals/mo. on Affordable
threshold: $622.32/yr off charge charge the
(as their for for As Senior Burden
water their their such:
$13,829/yr proposed) water Low
service wastewater Income – Utility
or (3kgals/mo
$1,152/mo charge (2kgals/mo Discount Senior
are
rate Services
are included uses
included in Low
in their 3kgals/mo,
their water the
service Income
wastewater majority
charge). of
service whom
also
79

Regular October Attachment Council 5, 2026 1 meeting
Page 80 of 84
As Fixed
$141.70 30-unit $54.55 Triplex One Monthly more
3/4” Residential
shared service shared service residential fixed dwellings
across charge across 3 charge minimum charge
30 units. customer revenue share
units. at bill per one
0–3
kgals. dwelling service
dilution
charge,
fixed is
revenue the
$4.72 $18.18 $34.29
recovered
equity
The per
master-meter dwelling
falls concern
benefit
grows sharply.
with
scale.
80

Regular October Council 5, 2026 meeting
Attachment Page 81 of 84 1
The
Still 30-unit Close Triplex 3/4” Multi-unit proposal
below to Residential Per-dwelling
MUD MUD residential
residential residential bill
at 6 monthly customers
because recovery kgals.
one while bill at still narrows
6
fixed retaining kgals receive
charge a per a
is modest unit the
shared
by master-meter
30 master-meter gap
units.
benefit. benefit,
$36.70 $45.28 $46.50
—it
especially
30-unit Triplex Remaining as does
$9.80 $1.22 discount properties
/ / not
unit unit vs. get
Residential larger.
≈21% ≈3% eliminate
it
81

Regular Council meeting
October 5, 2026
Attachment 1
Page 82 of 84
Solid
Waste
Backup
82

Regular October Attachment Council 5, 2026 1 meeting
Page 83 of 84
Logic assessed Proposed Current Barrel Logic additional Proposed Current Barrel with will Logic Thursday) Proposed Current
behind a Not behind allow us behind Cancellation
$12.97 Language Language Out barrels. Language Language Delivery cancellations. to by 5:00 Language Language
proposal: fee. Fee proposal: Charge backfill proposal: PM Language:
There Example: Example: There Example: Example: The before Example: Example: Ratebook
is a No Language: is a Barrel No Language: appointment reason the If a
cost Barrels current cost current for Customers
to to deliveries openings scheduled customer must
drive scheduled language deliver language adjusting
to a for will more the appointment. needs cancel
around additional be around to a
resident's exchange assessed effectively, language cancel special
barrel barrels. barrel is a Language
house and/or not a to Customers scheduled pick-up
to out, Primary delivery delivery providing enhance prior
exchange removal there charge charges, quicker who do to
or that are costs of customer not appointment, arrival
remove are costs drivers $12.97 there service timely of
not are are to service the the
a out for associated truck per costs for cancel customer collection
barrel. barrel individuals will
service with costs for associated residents be must
upon driving and new on the by assessed vehicle
with cancel at
City to a employee solid waiting establishing a trip no the
of Mesa scheduled costs. waste delivering list. fee. later address Recommendations
arrival accounts barrels. It will clearer than or a
barrel also one trip
at the change or for help cancellation business fee
shall
service out. Customer's recover day be
address the windows. (Monday assessed.
will request costs This
be for associated change through
83

Regular Council meeting
October 5, 2026
Attachment 1
Page 84 of 84
Ratebook
Language
Recommendations
84