Cost of Service Study for Water and Wastewater


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Ann Arbor’s water infrastructure is essential to 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 conducted a Cost of Service (COS) study for its drinking water and wastewater rates.

The study brought 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 was the participation of the public. Customers were encouraged to attend public meetings and provide feedback comments.

Stantec Consulting Services provided their expertise in utility engineering and finance for the study.  Stantec determined the requirements for maintaining our systems, allocated costs among the difference customer types, and designed a rate structure based on community objectives and legal requirements. 

Presentation to City Council can be found is available here. You can view the full presentation on YouTube.

Final Report Now Available report.png

​Final Report​​ (PDF) by Stantec Consulting is now available with complete details of the study.

Related Council Materials


Water Rates Council Presented Materials Compiled (PDF)​

Public Advisory Committee

The City of Ann Arbor 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 Advisory Committee was charged with understanding the cost of service process and providing community-specific feedback on proposed rate structures. The committee ultimately supported the rate design presented to City Council.       

Cost of Service Public Advisory Charter

Advisory Committee Meetings​​

Water Treatment Plant - 919 Sunset Road  

-or- web meetings also available upon request.

July 11, 2017 - 4 p.m. to 6 p.m.  

August 23, 2017- 4 p.m. to 6 p.m. 

September 19, 2017- 4 p.m. to 6 p.m.

October 25, 2017- 4 p.m. to 6 p.m.

December 20, 2017- 4 p.m. to 6 p.m.