Council Report

City Council Report 
Date: 
January 26, 2026 
To: 
City Council 
Through: 
Marc Heirshberg, Assistant City Manager 
Michael Kennington, Deputy City Manager/Chief Financial Officer 
From: 
Brian A. Ritschel, Management and Budget Director 
Christopher Hassert, Water Resources Director 
Subject:  
 Fiscal Year 2025/2026 Non-Residential Water Utility Rate Recommendations 
This report and attached information describe recommended non-residential water utility 
rates, components, fees and/or charges. The associated Notice of Intention was adopted at 
the December 8, 2025 City Council meeting, with ordinance introduction on January 26, 2026, 
and the public hearing on February 9, 2026 as stated in the Notice of Intention.  
City Council discussed and provided direction at the November 13, 2025 study session to 
reduce residential and multi-unit water rate adjustments from the original staff 
recommendation. To offset the revenue loss in the residential and multi-unit categories, non-
residential rates adjustments were set above the amounts included in the September 22, 
2025 Notice of Intention. Because A.R.S. § 9-511.01 governing water and wastewater rates 
requires the City Council to adopt a Notice of Intention to list the maximum increase before 
adopting that maximum or lesser amount, a new Notice of Intention is necessary to begin the 
process for the incremental non-residential water rates increase from the rates adopted on 
December 8, 2025 to the rates Council has requested. The non-residential water rate 
adjustments for consideration at the February 9, 2026 City Council meeting and public 
hearing will be for the additional increases needed to offset the decrease in residential and 
multi-unit rates that was approved on December 1, 2025. These discussions are available 
online at the City of Mesa website, Mesaaz.gov, under City Council Meetings, agendas and 
minutes. 
PURPOSE AND RECOMMENDATION 
The purpose of this report is to provide staff recommendations for non-residential water utility 
rate adjustments. The rate adjustments are recommended to be effective April 1, 2026. 
For each utility, the forecasted expenses (uses) are compared to the forecasted revenues 
(sources). The table below shows the projected net sources and uses for FY 2025/26 and 
FY 2026/27 if the recommended non-residential water utility rate adjustments are adopted. 
The FY 2025/26 and FY 2026/27 net sources and uses are projected to be negative, however 
the net sources and uses for the Utility Fund does improve throughout the forecast period 
(see Attachment 2 for more detail). 
Utility 
FY 25/26 
FY 26/27 
Water 
  ($5,924,000) 
  ($4,456,000) 
1

The method of implementation of rate adjustments can vary from year to year based on the 
needs and goals of the individual utilities. The impact on individual customers can vary 
based on the method of implementation and customer consumption. 
 
Non-residential water rates were increased at the December 1, 2025 City Council meeting 
and public hearing with a January 1, 2026 effective date. Council direction at the November 
13, 2025 study session necessitated further increases above what was noticed for the 
December 1, 2025 meeting. At the February 9, 2026 meeting, Council  will consider rate 
increases that represent the remaining rate difference between the November 13, 2025 
Council rate direction (Column A) and the December 1, 2025 approved increases (Column 
B) in the table below. The percentage increases for both columns are based off of the base 
rates effective February 1, 2025. 
 
 
 
Non-Residential Rates 
Column A 
Non-Residential Increases 
related to 2.5% Residential 
Increase Scenario 
Column B 
Non-Residential increases 
approved at December 1, 
2025 public hearing 
Service Charge 
+7.5% 
+4.5% 
General Usage 
+20.0% 
+13.0% 
Landscape Usage 
+25.0% 
+20.0% 
General Excess Surcharge 
+25.0% 
+13.0% 
Landscape Excess Surcharge 
+25.0% 
+15.0% 
Large Comm./Industrial 
+25.0% 
+19.0% 
 
The following table below shows the typical/median monthly bill for commercial general and 
commercial landscape customers: 
 
Customer 
Effective 2/1/25 
Effective 1/1/26 Effective 4/1/26 
Commercial General (9 kgal) 
$78.59 
$84.39 
$87.83 
Commercial Landscape (29 kgal) 
$177.01 
$204.06 
$211.79 
 
BACKGROUND AND DISCUSSION 
 
Each utility is operated as a separate business center. As such, rate schedules are adjusted 
annually in a manner consistent with costs of capital, as well as the fixed and variable costs 
of operation and maintenance. In addition, rates are reviewed and updated with the 
requirements of Title 3, Chapter 3 of the Mesa City Code. To develop rate 
recommendations, staff consider the following five (5) Financial Principles to ensure the 
reliability, sustainability, and affordability of the utilities: 
 
• Balance net sources and uses 
• 20% or higher reserve fund balance 
• Rate adjustments that are predictable and smoothed throughout the forecast 
• Equity between residential and non-residential rates 
• Affordable utility services 
 
 
2

In alignment with the City Code and the Financial Principles, the reserve balances are 
combined in the Utility Fund and are managed to maintain a targeted ending reserve 
balance of 20% or higher of the following year’s estimated expenditures. The reserve 
balance allows for the smoothing of rate adjustments. This smoothing avoids large rate 
increases and minimizes the impact to customers in any single year.  
 
The Utility Fund Cash Flow Projections (Attachment 1) includes projections of growth. The 
Water, Wastewater, and Solid Waste utilities have a citywide service area and are expected 
to grow by an average of about 0.9% per year during the forecast.  
 
The Utility Fund Cash Flow Projections also include expenditures that are increased by 
inflationary factors in future years. Some inflationary factors are unique to the individual 
utilities, such as those used for chemicals or purchased water. Other citywide expenditure 
pressures that are included in the forecast are listed below. 
 
Capital Investment 
 
The City continues to place a high priority on infrastructure investment to attract and 
service future development. The FY 2025/26 capital improvement program (CIP) includes 
the planning for increased customer demand, maintaining system reliability, and satisfying 
contractual commitments. The debt service on utility systems revenue bonds and 
obligations is funded through the utility rates paid by customers. The City issues 
obligations on an as-needed basis in order to minimize the interest cost. Anticipated future 
debt service has been included in the forecast and rate recommendations. 
 
Review of the General Fund Contribution 
The Utility Fund contribution to the General Fund is calculated based off 30% of each 
utility’s gross operating revenues. The amount of the transfer throughout the forecast 
period is adjusted based on the gross operating revenue forecast. The adjustment for FY 
2025/26 is projected to be an increase of $9.2 million, increasing from $137.8 million to 
$147.0 million. 
 
WATER UTILITY 
Rates for water service are comprised of two components: Service Charge, with a flat 
monthly rate based on the water meter size and Usage Charge, based on units of water 
consumption. 
 
The water utility forecast includes increased costs for debt service, joint venture costs for 
the operation of the Val Vista Water Treatment Facility, and power, commodity, and 
chemicals at the City’s water treatment plants. Staff reviews and forecasts all costs each 
year to ensure rates are sufficient to keep up with expenses.  This includes significant cost 
increases for operational ($4.1M) and debt service ($12.7M) costs from FY 2024/25 to FY 
2025/26. 
 
 
 
3

Over the last few years, the City has concentrated on aligning its fixed revenues with fixed 
costs.  The goal is to achieve revenues from the Service (fixed) Charge at 35% to 40% of 
overall rate revenues.  FY 2024/25 fell slightly below this goal at 33.3% of total rate revenues. 
The variable rate component (Usage Charge) is based on water consumption rounded to 
1,000-gallon increments.   
 
Non-Residential Water 
Consistent with the direction promoting equity with residential rates and furthering 
conservation efforts, the City is focused on identifying necessary and discretionary water 
use. Additionally, FY 2024/25 continued the recent trend of higher usage for non-residential 
customers compared to residential customers. The impact of increased non-residential 
water usage impacts the amount of water and infrastructure needed to serve these 
customers. 
 
Staff recommends the following non-residential usage rate adjustments compared to the 
rate effective February 1, 2025, consistent with the rate option selected by Council at the 
November 13, 2025 study session. A portion of these increases were approved at the 
December 1, 2025 public hearing (effective January 1, 2026): 
 
Non-residential service charge: 7.5% increase 
General Commercial usage charge: 20.0% increase 
General excess surcharge usage: 25.0% increase 
Landscape usage: 25.0% increase 
Landscape excess surcharge usage: 25.0% increase 
Large Commercial and Industrial: 25.0% increase   
 
Prior to FY 2020/21, the general commercial usage rate was aligned with the necessary 
usage tier (Residential Tier 1).  The proposed rate increases continue to move the non-
residential usage rates closer to the usage tiers representing discretionary usage 
(Residential Tiers 2, 3, and 4).  As the recommended increase is higher for the Usage 
Charge, the monthly bill increase will be smaller for customers that consume less water. 
 
Typical Non-residential Water Consumer Impact: 
 
Customer 
Effective 2/1/25 
Effective 1/1/26 Effective 4/1/26 
Commercial General (9 kgal) 
$78.59 
$84.39 
$87.83 
Commercial Landscape (29 kgal) 
$177.01 
$204.06 
$211.79 
 
The projected annualized increase in revenue for all Water utility recommendations is 
approximately $3,774,000. 
 
 
 
4

ALTERNATIVES 
 
Modify the FY 2025/26 utility rate adjustment proposal. Examples include but are not limited 
to: increase, reduce or eliminate a recommended percentage. 
 
The budgetary impact would need to be calculated by staff based on the modification 
requested. 
 
FISCAL IMPACT 
 
The projected annualized increase in revenues in the Utility Fund from the recommended 
rate adjustments is as follows: 
 
 
 
Utility  
        Annualized Increase   
 
 
Water  
 
           $3,774,000 
 
 
 
 
  
 
The projected ending reserve balance for the Utility Fund with similar adjustment to rates 
each year is: 
 
Fiscal Year 
Ending Reserve 
Balance 
24/25 
20.1% 
25/26 
13.6% 
26/27 
11.4% 
27/28 
10.8% 
28/29 
13.4% 
29/30 
19.0% 
30/31 
26.6% 
 
 
 
Attachments: 
1. 
FY 2025/26 Utility Rate Adjustments Recommendations Summary 
2. 
City of Mesa Utility Fund Cash Flow Projections 
5

ATTACHMENT 1
*City of Mesa, Arizona Utility Rate Adjustments Recommendations for FY 25/26
as of 12/08/2025
Electric
Gas
Residential connections
examples:
Current
Recommended
change
pct change
examples:
Current
Recommended change
pct change
low
62.88
$      
64.34
$
 
1.46
$         
2.3%
low
24.43
$    
24.70
$
 
0.27
$
 
1.1%
average
135.71
$   
137.98
$
 
2.27
$         
1.7%
average
41.06
$    
42.49
$
 
1.43
$
 
3.5%
high
223.76
$   
228.67
$
 
4.91
$         
2.2%
high
67.88
$    
72.80
$
 
4.92
$
 
7.2%
examples:
Current
Recommended
change
pct change
examples:
Current
Recommended
change
pct change
average
$529.60
534.60
$
 
5.00
$         
0.9%
average
$510.19
521.91
$            
11.72
$             
2.3%
Solid Waste
(per month billing)
Water
(per month billing)
Residential:
5.5%
 all barrels
Current
Recommended
change
pct change
     90 gal
33.17
$      
34.99
$
 
1.82
$         
5.5%
examples:
kgal/mo
Current
Recommended change
pct change
     60 gal
29.60
$      
31.23
$
 
1.63
$         
5.5%
6
43.57
$
 
45.46
$             
1.89
$       
4.3%
     extra black
15.66
$      
16.52
$
 
0.86
$         
5.5%
10
66.57
$
 
69.71
$             
3.14
$       
4.7%
     green waste
7.84
$        
8.27
$
   
0.43
$         
5.5%
15
96.59
$
 
101.42
$           
4.83
$       
5.0%
25
167.68
$            
177.15
$           
9.47
$       
5.6%
flat amount per month in each bill
Neighborhood Clean Up
0.47
$        
0.47
$
   
-
$           
0.0%
Household Hazardous Materials
0.53
$        
0.53
$
   
-
$           
0.0%
     Green & Clean Fee Total
1.00
$        
1.00
$
   
-
$           
0.0%
examples: kgal/mo
Current
Recommended change
pct change
9
78.59
$
 
87.83
$             
9.24
$       
11.8%
residential example:
     90 gal w/G&C fee
34.17
$      
35.99
$
 
1.82
$         
5.3%
Wastewater
(per month billing)
per service order request
Bulk Item
5.0%
29.00
$      
31.00
$
 
2.00
$         
6.9%
Residential:  8% rate increase for all components
Homeowner's Landfill
5.0%
15.00
$      
15.00
$
 
-
$           
0.0%
example:
kgal/mo
Current
Recommended
change
pct change
4
28.07
$
 
30.32
$             
2.25
$       
8.0%
Front Load - Trash
5.5%
Commercial Roll Off
5.5%
non-residential: 9% all components
example:
kgal/mo
Current
Recommended
change
pct change
9
56.86
$              
61.95
$             
5.09
$       
9.0%
 overall increase; per ton and green waste rates 
affected 
(including pass through of natural gas energy supply costs)
(Including pass through of electric energy supply costs)
Residential: $1 service charge increase, 2% Summer Tier 1 usage increase, 4% Summer Tier 2 
usage increase, 5% Winter Tier 1 usage increase, and 36.1% Winter Tier 2 usage increase
Non-residential: 7.5% service charge increase, 20% general commerical usage charge
increase, 25% landscape usage increase, 25% landscape excess surcharge increase,
25% large commercial and industrial usage increase, 25% non-landscape excess 
surcharge increase
residential wastewater bill usage is charged at 90% of the winter 
water average
Commercial: $5 service charge increase, 5% Summer Tier 2 usage increase, and 3% Winter 
Tier 2 usage increase
Commercial: $3.00 increase on service charge; 3% Tier 1 usage increase, and 
5% Tier 2 usage increase
 7% Tier 1 usage increase, 15% Summer Tier 2 usage increase, 24% Winter Tier 
2 usage increase 
Residential increases: 4.5% service, 4.0% Tier 1 usage, 5.5% Tier 2 usage, 6.5% 
Tier 3 usage, and 7.5% Tier 4 usage
 increase to base rates and out-of-zone factor; multi-
day discount discontinued 
*Includes rate increases effective January 1, 2026 and the proposed non-residential water increases effective April 1, 2026.
6

Attachment 2 - City of Mesa Utility Fund Cash Flow Projections
As of 11/10/2025
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Estimate
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
WATER
$3,472,435
($5,924,190)
($4,455,891)
$5,365,716
$15,238,263
$26,199,075
$43,591,415
WASTEWATER
($7,285,154)
($12,080,760)
($7,048,336)
($3,014,649)
$1,702,838
$10,205,256
$10,129,209
SOLID WASTE
$26,254
($5,858,624)
$688,832
($629,299)
$2,586,058
$8,510,604
$9,060,768
ELECTRIC
$1,435,561
($1,066,822)
($706,935)
($871,150)
($1,117,234)
($1,646,811)
($1,171,368)
NATURAL GAS
($817,183)
($3,793,486)
($1,982,515)
($1,440,090)
$2,018,693
$1,626,125
$2,301,975
DISTRICT COOLING
($376,552)
($181,786)
($171,502)
($316,383)
($182,335)
($185,275)
($233,758)
TOTAL NET SOURCES AND USES
($3,544,639)
($28,905,668)
($13,676,348)
($905,855)
$20,246,283
$44,708,974
$63,678,240
Beginning Reserve Balance
$117,019,543
$113,474,904
$84,569,236
$70,892,888
$69,987,033
$90,233,316
$134,942,290
Ending Reserve Balance
$113,474,904
$84,569,236
$70,892,888
$69,987,033
$90,233,316
$134,942,290
$198,620,530
Ending Reserve Balance Percent*
20.1%
13.6%
11.4%
10.8%
13.4%
19.0%
26.6%
*As a % of Next Fiscal Year's Expenditures
6.00%
2.50%
3.50%
3.50%
3.50%
3.50%
3.50%
8.50%
20.00%
13.00%
13.00%
13.00%
13.00%
13.00%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
7.50%
8.50%
8.50%
8.50%
8.50%
8.50%
8.50%
8.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
10.00%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
6.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
$2.75
$1.00
$3.00
$3.00
$3.00
$3.00
$3.00
$5.00
$5.00
$5.00
$5.00
$5.00
$5.00
$5.00
$0.00
$0.00
$1.00
$1.00
$1.00
$1.00
$1.00
WATER Residential (Tier 1 usage) 
WATER Commercial (usage)** 
WASTEWATER Residential 
WASTEWATER Non-Residential 
SOLID WASTE Residential
SOLID WASTE Commercial
SOLID WASTE Rolloff
ELECTRIC Residential - svc charge 
ELECTRIC Non-Residential - svc charge 
GAS Residential - svc charge
GAS Non-Residential - svc charge
$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
$3.00
**Per Council direction provided at the November 13, 2025 Study 
Session, rate increases for non-residential Water customers 
above the amounts considered at the December 1, 2025 
public hearing will be considered at the public hearing scheduled on 
February 9, 2026. The Water Commercial (usage) line forecast 
include the combined the December 1, 2025 and February 9, 2026 
increases.
7

City of Mesa Utility Fund Cash Flow Projections
TOTAL
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Estimate
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
Sources of Funding
 Revenues
$463,446,299
$491,897,193
$530,060,239
$573,691,976
$620,012,248
$671,498,712
$728,962,606
 EECAF/PNGCAF Revenues
$45,602,237
$42,541,355
$42,844,952
$46,391,062
$46,643,914
$45,873,658
$45,534,881
Total Sources
$509,048,536
$534,438,548
$572,905,191
$620,083,038
$666,656,163
$717,372,369
$774,497,486
Uses of Funding
 Operating Expenditures
$201,693,807
$222,875,316
$228,221,235
$235,056,449
$238,808,813
$246,766,060
$257,413,144
 EECAF/PNGCAF Expenditures
$44,348,809
$42,541,355
$42,844,952
$46,391,062
$46,643,914
$45,873,658
$45,534,881
 Expenditure Subtotal
$246,042,616
$265,416,671
$271,066,187
$281,447,512
$285,452,728
$292,639,717
$302,948,024
 Project Costs
$751,861
$1,308,172
$308,047
$419,541
$321,857
$340,466
$460,220
 General Fund Transfer
$137,786,286
$146,973,079
$158,430,684
$171,446,860
$185,300,894
$200,680,413
$217,911,088
 Debt Service Transfer
$116,185,455
$134,885,383
$144,003,259
$150,251,140
$156,453,641
$162,374,111
$169,459,302
 Lifecycle/ Infrastructure Transfers
$10,150,067
$10,660,207
$11,428,780
$12,371,712
$13,302,493
$14,316,097
$15,457,912
 Capital Transfer
$1,253,317
$3,535,940
$638,627
$4,204,984
$4,589,930
$1,324,256
$3,594,363
 Other Transfers
$423,573
$564,764
$705,955
$847,146
$988,337
$988,337
$988,337
Total Uses
$512,593,175
$563,344,217
$586,581,539
$620,988,893
$646,409,879
$672,663,395
$710,819,246
Net Sources and Uses
($3,544,639)
($28,905,669)
($13,676,348)
($905,855)
$20,246,283
$44,708,974
$63,678,240
Beginning Reserve Balance
$117,019,543
$113,474,904
$84,569,235
$70,892,888
$69,987,032
$90,233,315
$134,942,289
Ending Reserve Balance
$113,474,904
$84,569,235
$70,892,888
$69,987,032
$90,233,315
$134,942,289
$198,620,529
Ending Reserve Balance Percent*
20.1%
13.6%
11.4%
10.8%
13.4%
19.0%
26.6%
*As a % of Next Fiscal Year's Expenditures
8

City of Mesa Utility Fund Cash Flow Projections
WATER
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Estimate
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
Sources of Funding
 Residential Rate Revenues
$107,694,178
$113,330,743
$117,146,301
$123,171,437
$128,756,016
$134,683,243
$140,775,731
 Non-Residential Rate Revenues
$88,596,264
$96,803,318
$112,041,989
$128,008,163
$146,493,740
$168,212,044
$194,015,643
 Other Revenues
$10,551,261
$8,021,746
$7,979,304
$8,143,225
$8,315,905
$8,479,710
$8,642,813
Total Sources
$206,841,703
$218,155,807
$237,167,594
$259,322,825
$283,565,661
$311,374,997
$343,434,186
Uses of Funding
 Operating Expenditures
$80,801,285
$84,936,468
$90,176,143
$93,241,245
$94,585,085
$98,784,927
$103,267,543
 Project Costs
$6,694
$213,033
$0
$0
$0
$0
$0
 General Fund Transfer
$61,493,443
$64,887,675
$70,583,639
$77,201,096
$84,445,331
$92,764,792
$102,377,088
 Debt Service Transfer
$56,344,337
$69,017,012
$75,515,112
$77,815,975
$83,043,978
$86,922,229
$86,386,626
 Lifecycle/ Infrastructure Transfers
$4,136,834
$4,363,116
$4,743,352
$5,186,457
$5,671,313
$6,227,500
$6,868,684
 Capital Transfer
$426,836
$449,575
$338,841
$192,660
$208,735
$103,516
$569,874
Other Transfers
$159,839
$213,118
$266,398
$319,677
$372,957
$372,957
$372,957
Total Uses
$203,369,268
$224,079,997
$241,623,485
$253,957,109
$268,327,399
$285,175,922
$299,842,771
Net Sources and Uses
$3,472,435
($5,924,190)
($4,455,891)
$5,365,716
$15,238,263
$26,199,075
$43,591,415
WASTEWATER
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Estimate
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
Sources of Funding
 Residential Rate Revenues
$57,601,223
$62,346,522
$67,442,859
$73,265,188
$79,169,964
$85,569,516
$92,472,551
  Non-Residential Rate Revenues
$48,183,069
$51,602,892
$56,460,788
$61,803,857
$67,600,487
$73,958,976
$81,007,878
 Other Revenues
$3,102,839
$3,149,180
$3,210,083
$3,276,341
$3,346,431
$3,413,257
$3,480,645
Total Sources
$108,887,131
$117,098,594
$127,113,730
$138,345,386
$150,116,881
$162,941,749
$176,961,074
Uses of Funding
 Operating Expenditures
$40,130,560
$46,237,687
$47,718,785
$49,286,091
$51,271,786
$52,810,415
$56,163,842
 Project Costs
$26,666
$87,683
$0
$0
$0
$0
$0
 General Fund Transfer
$32,666,139
$35,129,578
$38,134,119
$41,503,616
$45,035,064
$48,882,525
$53,088,322
 Debt Service Transfer
$41,105,133
$43,947,255
$45,492,677
$47,585,657
$48,890,055
$47,637,556
$53,893,103
 Lifecycle/ Infrastructure Transfers
$2,177,743
$2,341,972
$2,542,275
$2,766,908
$3,002,338
$3,258,835
$3,539,221
 Capital Transfer
$26,965
$1,383,075
$209,080
$139,607
$123,618
$55,980
$56,193
Other Transfers
$39,078
$52,104
$65,130
$78,157
$91,183
$91,183
$91,183
Total Uses
$116,172,285
$129,179,355
$134,162,066
$141,360,035
$148,414,043
$152,736,493
$166,831,865
Net Sources and Uses
($7,285,154)
($12,080,760)
($7,048,336)
($3,014,649)
$1,702,838
$10,205,256
$10,129,209
9

City of Mesa Utility Fund Cash Flow Projections
SOLID WASTE
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Estimate
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
Sources of Funding
Revenues
$76,611,113
$81,707,316
$86,385,175
$91,722,228
$97,256,197
$103,141,869
$109,394,532
Uses of Funding
 Operating Expenditures
$50,382,935
$58,551,086
$56,884,935
$57,923,348
$58,180,878
$59,400,161
$61,208,313
 Project Costs
$161,804
$489,655
$308,047
$419,541
$321,857
$340,466
$460,220
 General Fund Transfer
$22,983,334
$24,512,195
$25,915,552
$27,516,668
$29,176,859
$30,942,561
$32,818,360
 Debt Service Transfer
$649,377
$656,657
$644,742
$634,431
$613,293
$544,698
$514,900
 Lifecycle/ Infrastructure Transfers
$1,532,222
$1,634,146
$1,727,703
$1,834,445
$1,945,124
$2,062,837
$2,187,891
 Capital Transfer
$799,516
$1,621,306
$89,244
$3,871,752
$4,255,560
$1,163,976
$2,967,514
Other Transfers
$75,671
$100,895
$126,119
$151,343
$176,567
$176,567
$176,567
Total Uses
$76,584,859
$87,565,941
$85,696,343
$92,351,527
$94,670,138
$94,631,266
$100,333,764
Net Sources and Uses
$26,254
($5,858,624)
$688,832
($629,299)
$2,586,058
$8,510,604
$9,060,768
ELECTRIC
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Estimate
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
Sources of Funding
 Revenues
$21,911,680
$21,897,991
$22,876,980
$24,231,820
$25,554,794
$26,924,724
$28,277,546
 EECAF Revenues
$30,773,774
$24,994,061
$24,637,972
$26,956,444
$27,947,259
$27,465,349
$27,484,403
Total Sources
$52,685,454
$46,892,052
$47,514,953
$51,188,263
$53,502,053
$54,390,073
$55,761,948
$5,232,395
-$190,274
$1,938,064
$53,502,053
$54,389,930
Uses of Funding
 Operating Expenditures
$9,268,294
$10,200,617
$10,385,736
$10,748,964
$10,846,676
$11,217,453
$11,445,227
 EECAF Expenditures
$30,157,167
$24,994,061
$24,637,972
$26,956,444
$27,947,259
$27,465,349
$27,484,403
 Expenditure Subtotal
$39,425,461
$35,194,678
$35,023,709
$37,705,408
$38,793,936
$38,682,801
$38,929,630
 Project Costs
$305,619
$229,925
$0
$0
$0
$0
$0
 General Fund Transfer
$6,416,944
$6,532,386
$6,855,174
$7,241,782
$7,627,506
$8,022,449
$8,426,911
 Debt Service Transfer
$3,986,506
$4,981,839
$5,289,950
$5,965,151
$6,983,946
$8,099,973
$8,317,678
 Lifecycle/ Infrastructure Transfers
$1,053,709
$937,841
$950,299
$1,023,765
$1,070,041
$1,087,801
$1,115,239
 Capital Transfer
$0
$0
$0
$0
$0
$0
$0
 Other Transfers
$61,654
$82,205
$102,756
$123,308
$143,859
$143,859
$143,859
Total Uses
$51,249,893
$47,958,874
$48,221,887
$52,059,414
$54,619,287
$56,036,883
$56,933,317
Net Sources and Uses
$1,435,561
($1,066,822)
($706,935)
($871,150)
($1,117,234)
($1,646,811)
($1,171,368)
10

City of Mesa Utility Fund Cash Flow Projections
NATURAL GAS
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Estimate
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
Sources of Funding
 Revenues
$47,649,496
$51,609,316
$55,050,556
$58,572,269
$61,987,224
$65,547,833
$69,293,392
 PNGCAF Revenues
$14,828,463
$17,547,294
$18,206,979
$19,434,619
$18,696,655
$18,408,309
$18,050,478
Total Sources
$62,477,959
$69,156,610
$73,257,535
$78,006,888
$80,683,879
$83,956,142
$87,343,870
Uses of Funding
 Operating Expenditures
$19,641,784
$21,775,032
$21,859,787
$22,493,812
$22,672,776
$23,272,084
$23,974,678
 PNGCAF Expenditures
$14,191,642
$17,547,294
$18,206,979
$19,434,619
$18,696,655
$18,408,309
$18,050,478
 Expenditure Subtotal
$33,833,426
$39,322,325
$40,066,766
$41,928,430
$41,369,431
$41,680,393
$42,025,155
 Project Costs
$251,078
$287,876
$0
$0
$0
$0
$0
 General Fund Transfer
$13,773,968
$15,482,795
$16,502,338
$17,534,464
$18,556,686
$19,597,824
$20,719,845
 Debt Service Transfer
$14,100,102
$16,282,620
$17,060,778
$18,249,926
$16,922,369
$19,169,655
$20,346,995
 Lifecycle/ Infrastructure Transfers
$1,249,559
$1,383,132
$1,465,151
$1,560,138
$1,613,678
$1,679,123
$1,746,877
 Capital Transfer
$0
$75,335
$0
$0
$0
$0
$0
Other Transfers
$87,010
$116,013
$145,016
$174,020
$203,023
$203,023
$203,023
Total Uses
$63,295,142
$72,950,096
$75,240,050
$79,446,978
$78,665,186
$82,330,018
$85,041,895
Net Sources and Uses
($817,183)
($3,793,486)
($1,982,515)
($1,440,090)
$2,018,693
$1,626,125
$2,301,975
DISTRICT COOLING
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Estimate
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
Sources of Funding
Revenues
$1,545,176
$1,428,168
$1,466,205
$1,497,448
$1,531,491
$1,567,539
$1,601,876
Uses of Funding
 Operating Expenditures
$1,468,949
$1,174,427
$1,195,849
$1,362,990
$1,251,612
$1,281,020
$1,353,541
  General Fund Transfer
$452,458
$428,450
$439,862
$449,234
$459,447
$470,262
$480,563
 Project Costs
$0
$0
$0
$0
$0
$0
$0
 Capital Transfer
$0
$6,649
$1,462
$965
$2,018
$783
$782
 Other Transfers
$321
$428
$535
$642
$749
$749
$749
Total Uses
$1,921,728
$1,609,954
$1,637,707
$1,813,831
$1,713,826
$1,752,814
$1,835,634
Net Sources and Uses
($376,552)
($181,786)
($171,502)
($316,383)
($182,335)
($185,275)
($233,758)
11