Apache Junction water district adopts $28M proposed budget and a 5% base rate increase; public hearing set for June 16

The Apache Junction Water Utilities Community Facilities District board unanimously approved Resolution 2026-002 on the proposed FY 2026–27 budget, proposed rates, fees and charges and directed staff to solicit comments from the City of Apache Junction.

District director Mike presented the budget overview and said recent years showed revenues of about $9.2 million (2024–25) and the district projects a proposed budget of roughly $28 million for FY 2026–27. Staff described a proposed capital program with about $18 million in capital outlay next year and plans to take on approximately $10 million in debt service next year for the district’s planned water district building; staff said that construction spending would be phased across multiple fiscal years.

The board approved a staff proposal for a 5% increase to the base water rate, raising the base from $33.11 to $34.77. Mike said there would be no change to in-city consumption tiers; customers outside city limits (county islands) would face a 5% increase to both base and consumption rates. Staff provided example impacts for a household using 7,500 gallons per month: an in-city bill would rise from about $75 to $76.83 (approximately $1.83), while the same usage in a county island would rise from about $90.53 to $95.05 (about $4.52).

Staff also proposed modest fee increases: system connection fees indexed by CPI (1.7%) from $7,900 to $8,030 per single-family connection; Blossom Rock development agreement fees from $570 to $580; and a 5% increase in the water resource acquisition fee from $3,840 to $4,030. Mike said those funds would be used to bank water supplies and buy credits so the district can acquire supplies without borrowing later.

Capital projects listed by staff for the coming year included replacement of a Baseline/Idaho Road waterline, a 16-inch water main on Tomahawk (US 60 to Southern) coordinated with road work, electrical and pumping equipment at Well 10 (estimated about $2 million), replacement of treatment media (roughly $300,000) and purchase of effluent credits from the Apache Junction Sewer District (about $300,000). Staff also noted the final payment to SRP (~$180,000) for 30% design work on the Bartlett/Verde dam raising.

When board member Daryl asked about CAP use, Mike said the plant is near capacity and staff are using roughly 60% of CAP through the treatment plant on a daily basis while utilizing 100% of CAP on an annual basis through recharge and groundwater savings facilities; staff said the district budgets to purchase credits to manage supply obligations.

The chair opened the public hearing on the proposed budget and rates, called for public comment and, hearing none, closed the hearing. The board then moved to adopt Resolution 2026-002 (citing ARS 48-716); roll call recorded all members voting yes. The board also unanimously approved scheduling the final budget hearing for June 16, 2026 at 6:00 p.m. in the Apache Junction City Council Chambers, 300 East Superstition Boulevard.