City Council approved a contract with Stantec in March 2023 to complete a Water, Reclaimed Water, and Wastewater Cost of Service, Rates, and Fees Study (Rate Study). The Rate Study team is currently addressing Task 2 of 7 of the scope – 10-Year Financial Plans. The Water Services Capital Improvement Plan (CIP) project list and three financial planning scenarios were presented for each of the three funds in water, wastewater, and reclaimed water to City Council at the City Council Retreat on October 12. The Water Commission heard the same presentation on October 19 with the addition of a new alternative scenario based on input from City Council at the retreat. This joint meeting allows the City Council and the Water Commission to discuss the final set of scenarios and provide Staff and Stantec with direction on a preferred financial plan for each of the three funds.
 
Council direction on Task 2 allows Stantec to prepare Tasks 3 and 4. Starting in November, Stantec will evaluate and present information on system demands and customer use patterns, different strategies for allocating costs across the customer classes, and ways to finance projects that help meet Council objectives.

Links to the master planning documents can be accessed below:
 
https://www.flagstaff.az.gov/DocumentCenter/View/77507/Final-Sewer-Master-Plan-031315
https://www.flagstaff.az.gov/DocumentCenter/View/77508/City-of-Flagstaff---Water-Infrastructure-Master-Plan---Final-Report---2014
 

The Rate Study is a nine-month process to assess the revenues currently collected for water, wastewater, and reclaimed water services compared with the cost of service. During this time, the Water Commission and City Council will work through revenue requirements and strategies to fund these requirements in coordination with information from public outreach efforts. Stantec aims to bring a final proposal for rate adjustments to City Council starting in April 2024, with a final public hearing in June 2024.