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ITEM NO. 11b |
TOWN OF PRESCOTT VALLEY
STAFF REPORT
STAFF REPORT
DATE: 10/08/2026
TO: Mayor & Town Council
THROUGH: Gilbert Davidson, Town Manager
FROM:
DEPARTMENT: Town Manager's Office
AGENDA TYPE: New Business
SUBJECT: Notice of Intent, Increase Water & Wastewater System Capacity Charges per ARS 9-511.01 - Consideration & Possible Action (Approve Notice of Intent) [Ryan Judy, Deputy Town Manager]
TO: Mayor & Town Council
THROUGH: Gilbert Davidson, Town Manager
FROM:
DEPARTMENT: Town Manager's Office
AGENDA TYPE: New Business
SUBJECT: Notice of Intent, Increase Water & Wastewater System Capacity Charges per ARS 9-511.01 - Consideration & Possible Action (Approve Notice of Intent) [Ryan Judy, Deputy Town Manager]
| VISION 2024 FOCUS AREA: Water and Land Stewardship - Responsible planning for sustainable water management and land conservation. |
SUMMARY/BACKGROUND:
On August 13, 2026, the Town Council approved an agreement with Willdan Financial Services to assist the Town in updating Utility System Rates & Capacity Charges adopted per ARS 9-511.01 (e.g., Water and Wastewater Rates, System Capacity Charges, Water Resource Fee, and Stormwater Fee).
In order to meet statutory deadlines, it is proposed that Willdan first focus on the Water & Wastewater System Capacity Charges (with any increase being considered at the December 10, 2026 Town Council meeting). Therefore, this agenda item is for the Town Council to approve (for public information) this Notice of Intent to increase Water & Wasatewater System Capacity Charges in accordance with applicable procedures in ARS 9-511.01.
Water & Wastewater System Capacity Charges adopted per ARS 9-511.01 are one-time charges paid by new development to fund expansion of utility infrastructure needed for such new developments. The revenue is not used for operations, maintenance, or fixing existing deficiencies—but strictly for building new system capacity.
Water System Capacity Charges fund capital improvements required to provide additional water system capacity, including:
If the timeline proceeds as planned, Willdan will complete the required draft report per ARS 9-511.01 by November 9, 2026 for staff and public review before the scheduled December 10 public hearing and Town Council consideration of any Water & Wastewater System Capacity Charge increases. Thus, it is proposed that the Town Council now vote to approve this Notice of Intent to increase Water & Wastewater System Capacity Charges in accordance with the timeline. Required publication of the hearing date will also occur.
In order to meet statutory deadlines, it is proposed that Willdan first focus on the Water & Wastewater System Capacity Charges (with any increase being considered at the December 10, 2026 Town Council meeting). Therefore, this agenda item is for the Town Council to approve (for public information) this Notice of Intent to increase Water & Wasatewater System Capacity Charges in accordance with applicable procedures in ARS 9-511.01.
Water & Wastewater System Capacity Charges adopted per ARS 9-511.01 are one-time charges paid by new development to fund expansion of utility infrastructure needed for such new developments. The revenue is not used for operations, maintenance, or fixing existing deficiencies—but strictly for building new system capacity.
Water System Capacity Charges fund capital improvements required to provide additional water system capacity, including:
- New well capacity (e.g., drilling or upgrading production wells)
- Water storage tanks (adding volume to meet peak demands and fire-flow requirements)
- Transmission and distribution mains (upsizing or extending water main lines needed because of new development)
- Expansion of the wastewater treatment plant (capacity-related components only)
- Wastewater collection system improvements (wastewater trunk main lines, lift stations, and other conveyance infrastructure supporting new development)
If the timeline proceeds as planned, Willdan will complete the required draft report per ARS 9-511.01 by November 9, 2026 for staff and public review before the scheduled December 10 public hearing and Town Council consideration of any Water & Wastewater System Capacity Charge increases. Thus, it is proposed that the Town Council now vote to approve this Notice of Intent to increase Water & Wastewater System Capacity Charges in accordance with the timeline. Required publication of the hearing date will also occur.
RECOMMENDED MOTION:
Motion to approve a Notice of Intent to increase Water & Wastewater System Capacity Charges in accordance with ARS 9-511.01, and set a date of December 10, 2026 to consider any such increased Charges after a public hearing. VOTE.
STAFF RECOMMENDATION:
Staff recommends the Town Council vote to approve the proposed Notice of Intent to increase Water & Wastewater System Capacity Charges in accordance with ARS 9-511.01.
FISCAL ANALYSIS:
The draft report with any potential Water & Wastewater System Capacity Charges increases (along with supporting financial projections), is anticipated to be ready for staff and public review by November 9, 2026 in anticipation of the Dec 10, 2026 Town Council meeting date (and public hearing).