Board approves Preliminary 2020-2024 CAP and CAGRD Water Rate Schedules; approves three additional Drought Contingency Plan agreements

The Central Arizona Water Conservation District Board of Directors (CAWCD) convened today for its May meeting. This is the first meeting where the CAWCD has taken comment electronically, in addition to testimony requested at the meeting.

Related to the Drought Contingency Plan (pages 201-257), the board took action to approve:

  • Central Arizona Regional Irrigation Efficiency and Conservation Project – Agreement amongst CAWCD, ADWR, the Central Arizona Irrigation and Drainage District, Hohokam Irrigation and Drainage District, Harquahala Valley Irrigation District, Maricopa Stanfield Irrigation and Drainage District, Queen Creek Irrigation District and San Carlos Irrigation and Drainage District for the mitigation of reductions to CAP Ag Pool Water under the Drought Contingency Plan
  • NIA Mitigation Agreement – Agreement amongst CAWCD; the United States, the Arizona Department of Water Resources (ADWR); the Arizona Water Banking Authority (AWBA); the Gila River Indian Community; the Cities of Chandler, Glendale, Mesa, Phoenix, Scottsdale and Tempe; and the Town of Gilbert for the mitigation of reductions to CAP NIA Priority water under the Drought Contingency Plan
  • The Arizona Lower Basin Drought Contingency Plan Framework Agreement


Items related to Finance, Audit and Power (pages 20-141) and the Central Arizona Groundwater Replenishment District (CAGRD) included:

  • Approved the Preliminary CAP 2020-2024 Water Rates – Base Case (Tier Zero), and Preliminary CAP 2020-2024 Water Rates – Alternative 1 Case (Tier 1) with a change to raise the Capital Charge rate for 2020 from $48 to $56 and to add the excess property tax revenue to the Extraordinary Cost Reserve Fund -- the Base Case Rate Schedule will be in effect, unless a Tier 1 Shortage is declared for 2020, in which case the Alternative 1 Case would go into effect
  • Adoption of the CAGRD 2020-2024 Preliminary Rate Schedule
  • Took action regarding CAWCD Ad Valorem Taxes for the 2019/2020 tax year:
    • Fixing the CAWCD General Ad Valorem rate at ten cents per $100 of assessed valuation for the 2019/2020 tax year
    • Fixing the CAWCD Water Storage Tax at four cents per $100 of assessed valuation for the 2019/2020 tax year
    • Adopting a resolution determining that all of the tax levied for water storage in tax year 2019/2020 is required for CAP repayment or annual operations, maintenance and replacement costs, including CAWCD costs for Arizona Water Banking Authority M&I firming
  • Approved a Purchase Power Agreement between AZ Solar Storage 2, LLC and CAWCD for a 20-year fixed price agreement to provide for 20MW of solar generation capacity with 60MWh of battery storage


The CAWCD board meeting also included updates on the Colorado River Conditions (pages192 - 195) and a presentation on Intentionally Created Surplus (pages 196-200).

The Central Arizona Water Conservation District (CAWCD) Board of Directors is a popularly elected, 15-member board. Ten members are from Maricopa County, four from Pima County and one from Pinal. Members serve six-year, unpaid terms. The board typically meets publicly the first Thursday of each month to establish policy and set rates and taxes for Central Arizona Project.

For more information on the role of the CAWCD board and its current activities, visit www.cap-az.com/board. For additional details on the May board meeting, take a look at the agenda. Board minutes and videos will be posted here.