Council authorizes studies and advisors for utility rates, long-range forecast and event economic analysis after debate on cost and timing

The Cave Creek Town Council authorized a bundle of consultant agreements Monday to update utility user-fee and rate studies, engage a municipal advisor and commission a long-range financial forecast plus economic-impact analysis of the Cave Creek Rodeo and Bike Week. Council asked staff to seek lower hourly usage where practicable and to report final costs.

Approved engagements and purpose: Willdan Financial Services was authorized to complete the town's utility user-fee study and an update to the utility rate study (amendment and remainder of prior contract) for an estimated remaining cost bringing the agreement total to roughly $63,900; Columbia Capital Management LLC was authorized as municipal advisor (fees paid when/if debt financing occurs) to advise on financing strategy; and Rounds Consulting Group, with a Pat Walker subconsultant, will update the long-range financial forecast and perform economic analyses of the Cave Creek Rodeo and Bike Week (proposed not-to-exceed $55,500 for forecast and economic work).

Council debate: Several council members and residents pushed back on the cost of the studies, especially the $15,000 economic-impact piece for the events and the $63,900 for the utility work. Concerns included prior investments in rate models that were expected to be reusable, the value of a $15,000 study for bike-week impact (a weekend event with limited direct tickets), and whether in-house staff could produce some of the needed baseline analyses (for example, sales-tax comparisons for event weekends). Staff replied that prior contracts had been partially used to support the FY25 budget and that the consultants bring technical modeling, cross-consultant coordination, and timeline capacity the town lacks internally; staff said the work is time-sensitive for the council retreat and FY26 budget planning.

Outcome and direction: The motion to authorize the three engagements passed 4-2 (recorded as a majority in transcript comments and roll-call), with council members urging strict hour monitoring and asking staff to negotiate lower costs where feasible. Staff said municipal-advisor fees are typically payable at debt closing and that Willdan's $4,700 remaining from an earlier contract plus an amendment of $48,400 would yield $53,100 in remaining work to complete the user-fee and rate updates.

Why it matters: Staff cited increased construction and material costs since the prior study, new master-plan projects that affect utility capital needs, and the council's strategic plan call to refine financial forecasting and revenue protection. Council sought the information before a February retreat where long-range forecasts and financing strategy will be discussed.