Executive Summary Scottsdale Water Policy – Rudy Fischer

Rudy Fisher’s presentation warns that a shift toward fiscal austerity in the water sector threatens Scottsdale’s legacy of proactive leadership. Prioritizing short-term cuts over long-term security risks future economic instability and higher costs as regional competition for water intensifies. 

Key Issues Identified:

• Impending Water Shortages: With upcoming reductions in Colorado River water allocations, some portion of the CAP water—which accounts for 70% of Scottsdale’s total water—may be at risk. Proactive, timely investments are critical to maintaining the city’s economic health, stability, and competitiveness. Delaying these necessary projects will result in future higher costs and allow competing Valley cities to acquire limited regional water supplies.
• Significant Budget Reductions: A net total of $261 million has been removed from the 5−YearCIP for waterprojects. Crucial initiatives, such as the Advanced Purified Recycled Water facility ($67.7M) and the Bartlett Dam Modification Feasibility Study ($25.4M), were initially removed. Although $100 million for “Sources and Supplies” was eventually added back for future years, the authors argue that removing these vital investments sends a contradictory and confusing message to residents and businesses.
• Insufficient Rate Adjustments: Proposed water and wastewater rates are only increasing by 3.5%, which falls short of the projected 5.7% increase in operating costs. Additionally, transfers to the CIP have been reduced by $30 million. This structural shortfall suggests the city is not raising enough revenue to cover daily operating expenses, secure new water supplies, or maintain current infrastructure.

Recommended Actions:

• Restore Funding and Transparently List Projects: The authors strongly urge city leadership to restore the budget resources needed to support vital water initiatives. Furthermore, they request that the city list all critical water projects on city financial documents and the Capital Improvement Plan (CIP)—even if only as placeholders with estimated costs—so they are effectively planned for and do not get overlooked.
• Keep All Options Open and Execute the Strategic Plan: The city must act decisively on Scottsdale Water’s Strategic Plan and keep all water supply options open. This includes moving quickly to secure increasingly competitive and expensive water credits, continuing investments in water recycling, and securing independent, renewable water sources from the Verde River via the Bartlett Dam project.
• Commit to Proactive Leadership: The City Council must communicate a clear, unified message to the public assuring them that the city is actively investing in new infrastructure, alternative water supplies, and conservation efforts to ensure a reliable and secure water future.

Suggested Email to City Council

Subject: URGENT: Protect Scottsdale’s Water Future – Restore Vital Infrastructure Funding

Dear Mayor and City Council,

As a resident and taxpayer, I am writing to express my deep concern regarding the proposed reductions to the water-related Capital Improvement Plan (CIP) and the potential long-term risks these cuts pose to our community.

Water is the foundation of Scottsdale’s economic health. With the 70% of our water supply that comes from the Colorado River currently at risk due to ongoing shortages and impending allocation reductions, now is the time for proactive investment, not budgetary retreat. Delaying these projects will only lead to higher costs in the future and allow competing Valley cities to secure limited water supplies ahead of us.

Specifically, I urge the Council to:

• Restore Funding for Major Projects: Reinstate the $67.7 million for Advanced Purified Recycled Water and the $25.4 million for the Bartlett Dam Modification Feasibility Study. These projects provide immediate and independent solutions to our water needs.
• Ensure Planning Transparency: Include all water projects in the CIP, even if only as placeholders, to ensure we are planning appropriately for “hard costs” and future growth.
• Re-evaluate Rates and Fees: Ensure our water rates are sufficient to cover actual operating costs and the development of new supplies. Not keeping up today will necessitate much steeper, more painful increases for residents in the future.
• Commit to the Strategic Plan: Move quickly and decisively to secure water credits and implement the options outlined in Scottsdale Water’s Strategic Plan.

We benefit today from the foresight of leaders who invested in our infrastructure decades ago. I ask that you show that same leadership today by restoring the resources needed to ensure a resilient, affordable, and reliable water supply for all Scottsdale residents and businesses.

Thank you for your time and for your commitment to our city’s future.

Sincerely,

[Your Name]

[Your Address/Neighborhood]