Cost of Service Study for Water and Wastewater

Ann Arbor’s water infrastructure is essential to the city’s quality of life. This largely unseen network of treatment facilities, pipes, and valves requires constant attention and investment.

Doing so costs money and in the upcoming years much of this infrastructure will need to be upgraded or replaced. That is why the City of Ann Arbor will be conducting a Cost of Service (COS) study for its drinking water and wastewater rates. This study will bring together members of the public, city staff and consultants in an effort to find balance between the infrastructure needs of the city and the values of the community as expressed in the rates and charges paid by users.


A key element of this study will be the participation of the public. Customers are encouraged to attend public meetings and/or submit questions and comments. There will be more in-depth information published on how customers can get involved as the study moves forward.

The City has retained Stantec Consulting Services to provide their expertise in utility engineering and financial services for the study.  Stantec will complete the bulk of cost of service study, which involves determining the requirements for maintaining our systems, allocating the costs among the difference customer types, and designing a rate structure based on community objectives and legal requirements.

Public Advisory Committee

The City of Ann Arbor has formed an Advisory Committee to provide feedback on the City of Ann Arbor’s Comprehensive Water and Wastewater Cost of Service and Rate Design Study.

The purpose of this Advisory Committee is to engage the community in a discussion regarding the City’s water and wastewater financial needs and make recommendations on proposed changes to the City’s rate structure.

The result of these discussions will provide guidance for the Consultant to complete a comprehensive plan including information sufficient to support recommendations to the City Council regarding the City’s water and wastewater cost of service recovery.

The agenda for the Dec. 20 Public Advisory Committee meeting has now been posted at

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