PowerPoint Presentation (added 10/18/2024)*

Rate Study Review Plan
City Council Workshop October 22, 2024

• Current Rates
• Water Consumption Trend 
• O&M and Capital Improvement Costs
• Drought Drivers
• 2024 Rate Study
• Public Outreach Plan
• Next Steps
2
Meeting Agenda

• Approved Water and Sewer rate adjustments for January 
2022 through January 2026
– 3.7% Combined Annual Increase
• 4.3% Water
• 3.0% Sewer
– Two increases remain
• January 2025
• January 2026
3
Current Rates

4
Water Consumption Trend
Over Past 36 Months

• O&M Expense Increase  34%
– Chemical Costs Increase  85%
– Raw Water Costs Increase  32%
• Construction Costs Increase  38%
• Expected Revenue Increase   13.4%
• Actual Revenue Increase  8.5%
5
O&M and Capital Improvements Costs 
Over Past 36 Months

•
Proposed guidelines for Colorado River
– Lower Basin Proposal shows cuts of up to 50% of Arizona’s 
Central Arizona Project (CAP) water
– Raw Water Costs
•
New groundwater wells 
•
Bartlett Lake additional capacity
•
Advanced Water Purification Facility
6
Drought Drivers

• Water – Rates and Cost of Service analysis
• Wastewater – Rates and Cost of Service analysis
• Stormwater – Study includes analysis of a new rate to 
the Stormwater Program
• Urban Irrigation Rates – Last increase was April 2021
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2024 Rate Study

• Dedicated City Web Page
– Proposed Rate and Fee Information
– Video Links
– Frequently Asked Questions
– Approval Timeline
• Dedicated Email Address
• Public Meeting
• Social Media
• E-News
8
Public Outreach Plan

• Citizen Utility Advisory Commission  (Nov, Jan & Apr)
• Council Workshop Meeting (Jan)
• Conduct Public Outreach (Jan-May)
• Council Voting Meeting (March)
– Consider Notice of Intention and Set Public Hearing Date
• Council Voting Meeting (May)
– Conduct Public Hearing on Proposed Rate Adjustments
– Formal Vote on Proposed Rate Schedules
9
Next Steps

Questions
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