In accordance with City Council's adopted Water Policies A1, A2 & A3 - Enterprise Funding and Rate Design Elements, the Utilities Division hired Willdan Financial Services to develop a financial plan and economic model for the Division's four enterprise funds; Water, Sewer, Reclaimed Water and Stormwater.   The purpose for conducting a rate study is to carefully analyze and develop rates that are sufficient to fund the operation, maintenance and replacement of essential utility infrastructure (e.g., treatment plants, pipelines, reservoirs, wells and stormwater facilities) while maintaining a commitment to affordability and transparency.  The objective of the rate study is to ensure the City can responsibly invest in the infrastructure needed to provide round-the-clock, safe and reliable Utilities services to ensure the public's health and economic vitality of our community today and into the future.  

Staff will provide an overview for the need to consider an adjustment in Utilities rates.  Specifically, staff plans to discuss the following:

1.   Overview of Council Goals & Policies
2.   Overview of fiscal stewardship & efficiencies implemented
3.   Overview of the Master Planning and Condition Assessments of Utilities infrastructure and facilities
4.   Recommended repairs and replacements that should be completed over the next 10 years
5.   Next Steps

 COUNCIL GOALS:
2) 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
7) Address key issues and processes related to the implementation of the Regional Plan
8) Improve effectiveness of notification, communication, and engagement with residents, neighborhoods and businesses and about City services, programs, policies, projects and developments
9) Foster relationships and maintain economic development commitment to partners
11) Ensure that we are as prepared as possible for extreme weather events



REGIONAL PLAN:
Policy WR.2.2  Maintain and develop facilities to provide reliable, safe and cost effective water, wastewater and reclaimed water services
Policy WR.3.9  Identify adequate funding sources to pay for new resources for a long-term renewable water supply
Policy WR.4.2  Maintain, at the City level, a financially stable utility to provide reliable, high quality utility services