Flagstaff has seen rising costs due to inflation and cost escalation for materials. Just as costs have risen for household staples and periodic repairs, the City has seen increases too. These rising costs have been absorbed by delaying critical projects and putting off maintenance, but this is not sustainable in the long run. To adequately fund our operations and maintenance programs, capital programs and long-term water security, Flagstaff is evaluating rates to keep water flowing for generations.  

Have costs really gone up? 

Water and wastewater operations and maintenance costs have increased dramatically in recent years and those increases are projected to increase into the future. For example, the cost of treatment chemicals has increased over two-fold from 2019 levels. It is also important to remember that deferred maintenance today will require higher costs for the same project in the future. 

An increased demand in the operations and maintenance (O&M) budget of our water infrastructure has slowly drained the City’s budget for water services capital projects. Capital costs have also risen from 40%-100%.