Flagstaff council weighs shifting reclaimed-water pricing to cost-of-service model

Flagstaff City Council members on Feb. 18 heard recommendations to rethink how the city sets reclaimed-water prices, and signaled support for staff to study a cost-of-service approach and pursue water-conservation and demand-smoothing options.

The issue returned to council after a Water Commission work group, made up of reclaimed-water customers and commissioners, recommended moving away from the current policy of setting reclaimed-water charges as a fixed percentage of potable rates. Erin Young, Water Resources Section Director, told council staff could include a formal cost-of-service analysis in the next reclaimed-rate study, scheduled for January 2026, and recommended convening a stakeholder group to pursue conservation measures and options for smoothing seasonal demand.

The recommendation matters because reclaimed water supplies and customers create seasonal imbalances: the city currently delivers much of its reclaimed output in summer to golf courses, apartment irrigation and other large users, while in colder months significant volumes are discharged to the Rio de Flag. Young said…