Proposed Utility Rate Outreach Results, Utility Customer Service, Water Conservation and Drought Management Plan Presentation

“Committed to Reliable 
and Affordable Service"
Proposed Utility Rate 
Outreach Results,
Utility Customer Service and 
Water Conservation & 
Drought Management Plan
Mayor & Council Work Session
4:00 p.m. | November 10, 2025

Proposed Utility Rate Outreach Results

Revenue Required for 
Sustainability of Funds
Utility Rate Revenue Requirement Used for Customer Outreach
Rate adjustments will be made across the board this year, meaning 
all classifications will increase at the same percentage in March 2026

Residential Utility Cost Comparison

Utility Rate Outreach
In-Person
•
Presentation and discussion with 
Chandler Chamber
•
Presentation and discussion with 
multi-housing group
•
Two public informational meetings
•
Calculated and communicated rate 
plans and projected monthly/ 
annual effect of bill change to 
various large industrial users
Social Media
•
Posted on all platforms about 
rate changes
•
Posted public informational 
meeting times and locations
•
Posted responses to clarify 
misinformation when needed
Other
•
Posted on City website
•
Presentations
•
Calculator
•
Comment/Feedback Link
•
Issued press release for papers
•
Published CityScope article
•
Posted Adopted Notice of 
Intent (NOI)
•
Emailed 88 HOAs available on 
the Neighborhood Resources 
contact list
•
Upcoming utility bill messages 
in Jan/Feb 2026
chandleraz.gov/proposedutilityrates has all of the proposed rate information
Each group/resident/business we sent specific information to or 
spoke to did not have major concern with proposed rate changes

Feedback Received
As of 10/21/25
Website 2026 Proposed 
Utility Rate Changes
382 views
5 Comments
Website Monthly Bill 
Calculator
211 views
Social Media
3 posts Oct 2, 7 & 12 
22,600 Impressions/Views
1,567 Engagements
2 Public 
Informational 
Sessions
Light public 
participation
Other
1 letter
2 emails

Feedback Received
8 - Emails (2), Letter (1), Website Comments (5)
•
One supported proposed changes
•
One supports the changes to ensure long-term sustainability
•
One support for across-the-board allocation
•
One requested more data-based allocation to customer classes
•
One requested another study to ensure cost split is accurate
•
One concern with overall cost-of-living increases
•
One wanted actions to lower costs
•
One did not want to have drastic increases like other municipalities
43 Captured Social Media Comments
•
13 – Had comments related to other concerns not utility rate related 
•
12 – Generally, not in favor of rate increases
•
6 – While not good news, they understood
•
5 – Did not want to follow other municipality’s drastic increases
•
5 – Some concern with the cost split between residents and businesses  
•
2 – Wanted less growth which could reduce costs

Utility Customer Service 
“The Chandler Way”

Customer Service
 “The Chandler Way”
Highlights

Provides single point of contact for utilities, billing, and collecting 
user charges for water, wastewater, and sanitation systems

Performs billing usage reviews using audit reports

Triages high water bills to meter techs or conservation to 
perform water audits if needed

Provides water usage educational tools

Uses bill messages and electronic bills to communicate  water 
conservation tips, 2x consumption, rate changes, rebates, etc.

No late fee or shut offs for those impacted by federal shut-down

Partners with Neighborhood Resources to triage calls of 
customers needing resources

Proactive full meter review to be completed by manufacturer
  
Utility Billing & Meter Services Teams
Goal to provide information and services fairly and accurately to 
Chandler utility customers with a high level of customer satisfaction
AMI daily 
reads 
coming 
2026

Customer Service
 “The Chandler Way”
Water/Wastewater/Reclaimed/Solid Waste
Rate Change Process
Work session during budget process
Website with rate information
Online bill calculator
Customer feedback button
Significant customer outreach 
Public meetings
City Scope article
Bill message for 2 months prior to change
Utility Reps trained to calculate impact 
Adding additional $25K to A-OK program to help
     rate payers most vulnerable

Task or Event
Date
Feedback to Council on Public Outreach
November 10, 2025
Notice of Intent Published in Newspaper (20 days prior to Public Hearing)
December 17, 2025
Public Hearing / Ordinance First Read / Resolution to Update Citywide Fee 
Schedule
January 8, 2026
Ordinance Final Adoption (Can go into effect 30 days after adoption)
January 22, 2026
Rates Effective for March Billing Cycle
March 2, 2026
Next Cost of Service Study to begin
July 2026
Rate Adjustment Timeline
Visit chandleraz.gov/proposedutilityrates for more information

Chandler Water Conservation 
& Drought Management Plan 
Preparing for water supply reductions
Mayor & Council Work Session – November 10, 2025
Simone Kjolsrud, Water Resources Manager

Agenda
•
Water Resources Update
•
Reclaimed Water Update
•
Water Conservation Programs
•
2-Yr Review of Conservation Success
•
Rebate Policy Updates
•
Drought Management Plan Updates
•
Next Steps

Surface Water 
Snow and rain runs off 
into rivers, lakes and 
streams. The water is 
stored in reservoirs 
behind dams.
Groundwater
Water stored 
underground in 
the space 
between sand 
and gravel.
Where does our water come from?

Chandler’s Water Supplies
Annual Supply (AF)
Water Source
59,530
Salt and Verde Water (SRP)
38,755
Colorado River Water (CAP)
6,346 
Groundwater
104,631
Annual Drinking Water Supply
29,936
Annual Reclaimed Water Supply
57%
37%
6%
Salt and Verde
Colorado River
Groundwater
67%
27%
6%
GRIC Exchange
Direct Use
Aquifer Recharge
Projected Build-out Supply

Water Supply Challenges
Drinking Water
•
Colorado River Shortage (CAP)
Permanent reductions to Arizona’s allocation will likely result 
in a 20% to 40% cut for most central AZ water providers  
•
Salt & Verde Supplies (SRP)
Last winter was second driest on record, the 2026 SRP surface 
water allocation has been reduced by half
•
Groundwater
Reduced surface water supplies will result in aquifer draw down
Reclaimed Water
•
Gila River Indian Community Exchange – 67% of supply
•
Serving 400 direct use customers for irrigation and 
cooling towers – 73 customers exceeded allocation 2024
•
Aquifer recharge helps to manage seasonal demand

Colorado River Post-2026

Salt and Verde River Watersheds
Chandler’s primary water supply is stored in 
SRP reservoirs. 
SRP 
reservoirs 
are 
currently 
about 
55% full

Salt and Verde Reservoirs
Winter 2023 – Very wet year, reservoirs 100%
Winter 2025 – driest on record down to 55%

Colorado River Conditions
Water year 2025 snow-pack slightly below the 30-yr average.

Groundwater Supplies
• In response to surface water 
shortages, Chandler will rely on 
groundwater reserves or stored water
• 32 wells provide redundancy
• 31 active wells
• 1 new well (in-progress)
• 2 future well sites reserved
• Decades of well maintenance and 
careful planning

Regional projects provide additional operational flexibility
Regional Partnerships and Infrastructure
Roosevelt Dam Flood Control Space
Five-year pilot program to optimize 
the use of Roosevelt flood control 
space. Opportunities for planned 
deviations from normal operations, 
extending from 20 days to 120 days.

Water treatment investments, new recharge capacity and 
new wastewater and reclaimed metering infrastructure.
2024/2025 Water Infrastructure Investments

Reclaimed Water Interconnect Facility (RWIF) –             
New membrane treatment facility to increase Chandler’s 
aquifer recharge and deliver additional water for 
industrial cooling at Intel’s expanded facilities.

Two ASR wells at Tumbleweed Park for Aquifer Storage 
& Recovery (ASR), with improvements to the reclaimed 
water conveyance infrastructure between the RWIF and 
Tumbleweed.

Pecos Water Treatment Plant upgrades improve water 
quality – new Granular Activated Carbon (GAC) filters

Reclaimed and Wastewater Meters – Extensive meter 
replacements and infrastructure upgrades
Chandler Reclaimed Water Interconnect Facility – Opened October 2024

All reclaimed accounts evaluated for contract compliance in Summer 2025
2025 Reclaimed Assessment

Outreach & 
Education 
Community workshops, 
water wise site visits 
and landscape 
consultations to assist 
residents, HOAs and 
businesses.
Rebates
Landscape 
conversions and 
technology 
rebates to reduce  
outdoor water 
use.
Chandler Water Conservation

Water Demand Trends

Grass to Xeriscape Rebate
•
$2 per SF of grass converted to 
xeriscape, up to $3,000
•
Landscape must include 50% 
plant coverage post 
conversion
•
Minimum of 500 SF needs to 
be removed to qualify
•
You need to apply before 
removing grass
Indoor Water 
Conservation kits
(multi-family and homes built 
before 1992)
•
Water efficient showerhead
•
Aerators
•
Toilet Water Displacement
Smart Controller Rebate
•
50% off the purchase price 
(pre-tax), up to $250
•
Must be a WaterSense 
approved smart controller
Residential Conservation Rebates

Large Landscape Grass 
Removal Rebate
•
Reimburses 25% of the total project 
cost and an additional $3/Sq Ft for 
“Non-Functional” grass.
•
Landscape must include 50% plant 
coverage post conversion.
•
Minimum of 5,000 SF needs to be 
removed to qualify.
•
Need to apply before removing grass
Water Efficient Technology Rebate
•
Rebate reimburses 50% of the cost to 
install technology that provides real-
time monitoring.
•
Rebated technologies include Smart 
Irrigation Controllers, Irrigation Flow 
Sensors, Cooling Tower Controllers and 
Submeters.
HOA/Commercial Conservation Rebates

Water Conservation Successes
Grass removal incentives increased October 2023 and program participation 
has significantly increased
Water Efficient Technology Rebate– New program in Oct. 2023. 
Thirteen customers approved and approximately $171,000 in rebates.

2025 Conservation Initiatives – City Facilities
New sub-meters on select city pools and all city 
facilities with cooling towers
Turf to xeriscape program in city retention basins, 
$3 Million WIFA grant funding (2,000,000+ sq. ft. )
City Parks – reduced overseeding, smart controllers 
for all parks and 13 basins/medians
Partnered with SRP for funding landscape 
irrigation efficiency evaluations at all city parks
Consultant completed water efficiency evaluations 
for large city facilities and implemented updates

Rebate Policies – Proposed Updates

Drought Management Plan – 
Proposed Updates
Update drought plan triggers to match current water supply expectations, 
remove reclaimed exemption and update outdated language 
Expiration of Drought Stage– One year after issuance or January 
1st of a normal water supply year. Current plan does not address 
procedures to determine when a drought stage expires.

Current triggers for Stage 2 and Stage 3 are no longer appropriate
Drought Plan Triggers – 
Proposed Updates
Declaration
Current Triggers
New Triggers
Responses
Stage 1
Water Resource 
Manager
A surface water 
shortage is predicted.
A surface water shortage is likely.
Increased public information and 
education 
Stage 2
Public Works & 
Utilities Director
SRP reduced to less than 
1.8 AF/acre (about 40%) 
and/or CAP supplies 
reduced 10%   
A surface water shortage occurs, 
reducing surface water supplies by 
more than 20% 
Mandatory water restrictions for 
municipal operations.
Stage 3
City Manager
SRP reduced to less than 
1.5 AF/acre (about 50%) 
and/or CAP supplies 
reduced 15%   
A surface water shortage occurs, 
reducing surface water supplies by 
more than 50% 
Mandatory water restrictions for 
municipal operations.  
Voluntary water reductions for 
businesses and residents.
Stage 4
City Council
Conditions where it is  
unlikely that the City will 
be able to deliver 
sufficient water to meet 
all demands.
A surface water shortage occurs, 
reducing surface water supplies by 
more than 70% and/or supplies 
are insufficient to meet customer 
demands
Mandatory water restrictions for 
all customers - municipal 
operations, businesses and 
residents.

Drought Management Plan
Next Steps:
 2025 - Stage 1
 2026 – cont.
 2027 – Stage 2?
    SRP Reservoirs?
    CAP reductions?

Expanded messaging - drought awareness, landscape rebates and outdoor water use tips
Conservation Public Awareness Campaigns

Next Steps
Regional Partnerships– Participate in feasibility of 
Bartlett Dam Modification, the SRP/CAP Interconnect Facility, 
and maximize investment Roosevelt Dam Flood Control Space.

Questions?