RFC has teamed with Galardi Rothstein Group to assist Tucson Water during the last two annual rate cycles. Our team led the technical and public outreach effort to restructure the water rates to address revenue stability and equity issues. This restructuring has included redefining cost recovery from fixed charges and modification of the residential inclining block rate structure to more accurately reflect current usage patterns and community objectives. The public outreach process included participation in customer focus groups, town halls, and meetings of two Tucson Water rate advisory committees. Additional analyses have included evaluation of water utility revenue requirements, financial plans, cost of service analyses, rate designs, and special research. Some of the special issues that have been addressed include financial policy evaluation, low-income assistance programs, pricing of reclaimed water, and development of wheeling rates. Additionally, annual bond reports have been developed and a new system development charge was implemented.