Presentation

City of Mesa — City Council (2026-02-09)

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FY 2025/26 
NON-RESIDENTIAL WATER 
RATES 
PUBLIC HEARING
City Council
Presented by: Brian A. Ritschel – Management & Budget Director
February 9, 2026

AGENDA
• Equity between residential and non-residential rates
• Growth pays for growth
• Conservation of discretionary water use
• Smooth rate adjustments throughout the forecast
Utility Rates 
Adjustments
Main Focuses
2

Typical Customer
Current 
Monthly Bill 
Impact to Current Bill – 
AF&E Committee
Recommended Rate Adj. 
with Capacity Fee
2.5% Res. & Multi-Unit 
Rate Adjustment
Residential
(6 kgals/month)
$43.57/mo  
$45.95/mo
(+$2.38/mo)
$45.41/mo  
(+$1.84/mo)
$44.64/mo  
(+$1.07/mo)
Multi-unit 
Development
(6 kgals/month)
$40.46/mo
$43.93/mo
(+$3.47/mo)
$43.98/mo
(+$3.52/mo)
$41.49/mo
(+$1.03/mo)
Commercial – 
General
(9 kgals/month)
$78.59/mo
$84.64/mo
(+$6.05/mo)
$84.39/mo
(+$5.80/mo)
$87.83/mo
(+$9.24/mo)
Commercial – 
Landscape
(29 kgals/month)
$177.01/mo
$198.39/mo
(+$21.38/mo)
$204.06/mo
(+$27.05/mo)
$211.79/mo
(+$34.78/mo)
+2.5%
+2.5%
+11.8%
+19.6%
Customer Impact - Water
+5.5%
+8.6%
+7.7%
+12.1%
3
+4.2%
+8.7%
+7.4%
+15.3%

Water Revenue Parity Analysis
4
2.5% Increase FY 25/26 Res. & Multi-Unit
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
Residential Revenues
55%
54%
51%
49%
47%
44%
Non-Residential Revenues
45%
46%
49%
51%
53%
56%
Consumption
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
Residential
49%
48%
48%
48%
48%
47%
Non-Residential
51%
52%
52%
52%
52%
53%

5
UTILITY FUND FORECAST
2.5% INCREASE FOR RESIDENTIAL AND MULTI-UNIT
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
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

NEXT STEPS
REMAINING NON-RESIDENTIAL WATER RATES
April 1, 2026 
- Effective Date for Non-Residential Water Rates
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