City Council would like to consider implementing tiered rates for non-residential potable water customers.  Should Council give direction to staff that rate structure for non-residential potable water customers should be changed, staff will take the direction and craft a scope of work for financial consulting services which would be brought back to Council for consideration and adoption at a future date.  The goal of obtaining financial consulting services would be to develop defendable rates that are fair and equitable while still promoting community objectives.

The current Non-residential water rate structure was approved in April 2016. A new rate structure for non-residential customers will require a new cost of service study be performed by a financial consultant.

Below are the Council goals that this item supports;
COUNCIL GOALS:
1) Ensure Flagstaff has a long-term water supply for current and future needs
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics

The Flagstaff Regional Plan 2030 supports the update and adjustment to City utility rates with the following goals: Policies are only included where needed to clarify a goal.
Goal WR.2 Manage a coordinated system of water, wastewater and reclaimed water utility service facilities and resources at the City level and identify funding to pay for new resources.
Goal LU.8 balance future growth with available water resources.