Water Utilities Community Facilities District - Regular Meeting

District. Call the city of Apache Junction Water District meeting of 04/21/2026 to order and request all phones be placed on silent. Roll call.

Chairperson Wilson? Here. Vice Chairperson Schroeder? Here. Board member Cross?

Here.

Board member Heck?

Here.

Board member Johnson?

Here.

Board member Suller? Here. Once again, board member Nesser is excused. So you have a quorum, your honor.

Thank you. Approval of minutes of 02/17/2026 meeting. Do I have a motion for the approval of the minutes?

Your honor. Yes. So moved.

Second. Moved and seconded. Roll call.

Board member Cross.

Yes.

Board member Suller.

Yes.

Board member Johnson.

Yes.

Vice chairperson Schroeder.

Yes.

Board member Heck?

Yes.

Chairperson Wilson?

Yes.

Motion passes unanimously.

Thank you. Discussion and selection of dates, times, locations for budget work sessions, tentative budget adoption, and final budget adoption for fiscal year 2026 and 2027. Mike.

Chairman Wilson, members of the board, Mike Loggins, Water District Director, 300 East Superposition Boulevard, Pet Junction, Arizona. Quick update here. We're requesting the selection of the dates for time and location for our budget work session, tenant budget, and final budget. These dates, the district recommends the work session on 05/05/2026 at six p. M.

Here in the City Council Chambers. Also, the tentative budget is a public hearing on 05/19/2026 at six p. M. And then final budget for a public hearing on 06/16/2026 at 6PM in Apache Junction City Council Chambers here at 300 East Superstition Boulevard, Apache Junction, Arizona 85109.

Don't see anyone. So do I have a motion?

Mister chair? Yes. I move that the following dates, times, and locations for fiscal year twenty twenty six twenty twenty seven budget work sessions, tentative budget adoption, and final budget adoption be approved. Special meeting for budget work sessions on Tuesday, 05/05/2026 at 6PM in the City Council Chambers, regular meeting for adoption of class and compensation and tentative budget on Tuesday, 05/19/2026 at 6PM in the City Council Chambers, and regular meeting for public hearing and final budget adoption on Tuesday, 06/16/2026 at 6PM in the City Council Chambers.

Second. Moved and seconded. Roll call.

Board member Johnson?

Yes.

Board member Cross?

Yes.

Board member Hack?

Yes.

Board member Soller? Yes. Vice chairperson Schroeder? Yes. Chairperson Wilson? Yes. Motion passes unanimously.

District manager's report.

No report, your honor.

District director's report. Mike.

Your honor, we just wanna give you a quick update on our annual report with that we have to turn into the Arizona Department of Water Resources annually here at the March. We turned ours in this year. Just kind of give you the direction that we're heading in. Currently, we're on that promotion here, but in the last three years, we went from roughly in 2021 to 2025, 4,000 customers to 8,000 customers. So our service connections out there, sorry.

So kind of we're increasing our water volumes, but what does that really mean out there? As you can see, we didn't really from 2021 to 2025, we didn't double our annual yield that we use water. We're continuously increasing that. All those houses aren't full down there in southern area that we're working towards in new development, but we are moving up in our water resources currently. We'll get into a little bit more here.

As demand's increased over the past four years, roughly 4% to 6% increase as we grow. Even though we doubled, we only probably went up about 25% to 30% in our water needs. Due to the fact in 2023, our gallons per capita per day was roughly 105, which that is each person using 105 gallons in a household, either flushing a toilet, using a washing machine, getting a drink of water, any use that you could have as part of your area has went down. So went from that 105 to 98. So water conservation's here with some of the rates we have, structures we have, some of efforts we put out there, we're actually reducing those amounts water people use per household.

So doing a great job there. Our loss in unaccounted for water was less than 10% as required by state statute, so we're moving towards that. And then this past year we finished up in December, and we're moving an entire year up installing our automated metering infrastructure to give people notice if they have a leak that we can notify them to conserve that water rather than continuing for a month. They would be notified within a week or so to let them know that, hey, your meter's been running for twenty four hours for the last two or three days. You may want to look around.

Either your landscaping stuck on, you may have a leak in your toilet, your sink may have a drip. Something's going on out there so that we could save that water to keep that water for the future too. And the last one, just a note, is our groundwater accounted for less than 1% of delivered water. We're using our renewable resources from our surface water treatment plant, which you guys are aware of currently. And so kind of just our annual update.

Any questions on our annual report for ADWR? On the next one, we have the Salt River Project, our Central Arizona Project interconnect facility. We've been working on this for probably the last three years. You guys had a cost sharing agreement we have approved at that time. We worked through that.

They did a 30% design. We put in more how much water we needed at that point in time, and that was based on what our Verdi supplies were gonna be and what we were looking at actually acquiring from Salt River project. So now our next cost sharing agreement, they're looking to go to 60% design, and this includes the NEPA process, our National Environmental Policy Act study. They have to go through to make sure that we don't have environmental impacts and what are the benefits to all the population around that would be involved in this project. So they're working through that.

We're looking at long lead items as a portion of this as the facility would get built. So this project currently remains on schedule. We'll be working through the NEPA project process to the 2027. I'm sure you guys will hear a little bit more on the week's wash NEPA process lasting more between two to three years to get through, so we're roughly on year two, so we got another year of going through that. Then we reviewed our potential reduction from the Salt River from our Verde system that we looked at before.

As you guys are aware, we initially put in a huge amount we asked for. They brought it down to roughly about 9,000 acre feet. Our last assessment that we received from them based on the government, what they requested, moved us down to 4,500 acre feet. So we wanted to make sure that this facility, if we were going to move water from Salt River to the Arizona project, our Central Arizona project, we were in the amount of how much we were going to receive from the Salt River project and not over allocating ourselves at that point in time. Okay. Any questions on this?

Chair? Yes.

So our

initial projected allocation was how much, and now what is it down to?

So on the Verde system, roughly we asked for the world when we first went in. We roughly asked for about 50,000 acre feet. So we went through a whole process with them as part of the Verdi study, and then it came down to roughly about 9,000 acre Since then, I think roughly about probably six months ago I came back to you guys, the federal government came in and said, Hey, we're going to take half of that facility. So then that cut us in half again. So we're roughly at about 4,500 acre feet. That's on average a three year yield. So roughly for one hundred year insured water supply, it's going be about 1,500 acre feet. But if we get that water, we have to have some way to move it from the Salt River project to the CAP, and that's what this project is about.

That I understand. So dollars and cents, what's that going to come out to per acre foot at 1,500 acre feet?

The Any idea? Roughly right now, with our estimations, we're somewhere between $20,000 thousand dollars an acre feet to $30,000 acre feet.

That's our cost right?

That would be our cost yes.

And

this is why we have our water resource acquisition fee we've been saving for these we planned on $20,000 an acre feet five years ago. Costs are rising. We'll have to look back at that as we get into some of those system connection fees and water resource acquisition fees. But today, that's where we're at. And we've collected roughly about $20,000,000 for this project.

Anyone else got questions? No. Thank you.

So some quick updates from the system. Roughly about, I would say, four months ago, we approved the well drilling of Well Number 10 down in Blossom Rock. We went through that process down there. We did the pilot borehole was completed. We actually completed the entire well.

There's zonal samples. We actually have good water quality and good production again, so roughly about 2,500 gallons a minute, which is about three MGD or 3,000,000 gallons a day. Next week we'll be starting to do the test pumping to verify how fast it can recover, and we'll be going through this. So projects are still scheduled to finish before the end of the fiscal year and on time and on budget where we were before. Kind of picture of what you guys see down there if you're near Ray And Ironwood it's on the Northeast Corner these are sound walls where the drill rig was currently.

This was the design for the well. Obviously we drill a large borehole as you can see here. I think it's 28 or 30 inch borehole, then we put a 18 inch casing in that borehole that sustains that so then we can later slide a pump in here and then pump that water out. Any questions on well? The next one is a superposition area water plant.

As you guys are aware, we initially built it ten years ago. We were at 2,000,000 gallons a day. Last year, we completed the first expansion. It went from 4,000,000 gallons a day at that point in time. We were roughly about halfway through that and during peak demands already when it was 105 degrees we ramped that our treatment plan up to four MGD over those 105 degree days so I'm sure we'll be there during the summer this year at full capacity utilizing that but we also have now started the construction January 1 to go all the way to 10,000,000 gallons per day to service our new customers to the south there.

Our potential finish date currently is 07/01/2028 so we roughly have about two more years of construction at that site to finish this project. Hopefully along the way we can bring additional filters on and do some different things so we can get more production. Currently we're utilizing all of our surface water, as I mentioned earlier, for our Department of Water Resources. We can turn on our wells so we do have supplies for different areas. We need to turn on those wells to add additional production to our system, but currently we're not using those. Any questions on that?

Don't see any.

That's all I have for tonight. Thank you. Mike? Yes, sir.

Thank you for all the hard work you and your team are doing, keeping us from, you know, what happened in Gilbert where we had they had major spikes in their water. We really appreciate the hard work you guys do to keep it reasonable. Thank We'll

be ringing back to the next meeting on what our potential rate increase is, but it's nothing near what you're seeing in Gilbert right now.

Good. Hey, real quick. Do we know where our trailer is at? Portable water trailer or whatever we're calling it?

Currently, we are trying to get vendors to get supply all these. You know, they go from a large scale production down to a pilot study. There's not many vendors that do that for you. So we reached out to the ones that actually produce it. We're finding some guys that are more of a niche that they do a five gallon to 10 mill or 10 gallon a minute trailer for those each treatment trains that we're doing. So it's a little difficult to get there, but we are on the process of procuring those. We're still trying to get those cured before the end of the day. It'll probably roll over until next year, but I'm hoping by fall, we'll have a trailer. And by our last estimate event next spring, we should have something available to us that come out there.

Thank you.

Thank you.

Thank you. Thank you. Registration still expire. District treasurer's report.

No report.

No report?

No report yet. Okay.

Seeing you sitting there, I figured that maybe you were thinking of how much you want to spend on. All right. Would, since there's no further discussion, I will adjourn this meeting. Thank you. We got five minutes before we start.