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Home My WebLink About2025 05.06 WUCFD Minutes City Council Chambers City of Apache Junction, Arizona Ci300ESuperstition Boulevard Special Meeting Minutes Apache Junction,AZ 85119 Water Utilities Community Facilities www.ajwaterdistrict.org District P:(480)982-6030 Doors are open to the public at least 15 minutes prior to the posted meeting start time. Tuesday, May 6,2025 6:00 PM City Council Chambers A. Call to Order Chairperson Wilson called the meeting to order at 6:14 p.m. B. Roll Call Present 7- Chairperson Wilson,Vice Chair Schroeder, Boardmember Cross, Boardmember Soller,Vice Chair Johnson, Vice Chair Heck,and Vice Chair Nesser Staff in attendance: Bryant Powell, District Manager Matt Busby,Assistant District Manager Yvette McKinney, District Clerk Joel Stern, District Legal Counsel Mike Loggins, District Director Charles Briggs, Water District Project Manager Rita Vineyard, Senior Administrative Assistant Angelie Hawley, District Treasurer Connie Chow, District Controller Robert Wisler, Management Analyst Ryan Kaup, Economic Development Director C. Agenda Items 1. 25-199 Approval of meeting minutes of April 15, 2025. Boardmember Johnson made a motion to approve the meeting minutes of the April 15,2025, meeting.Boardmember Soller seconded the motion. Yes: 7- Chairperson Wilson, Vice Chair Schroeder, Boardmember Cross, Boardmember Soller, Vice Chair Johnson,Vice Chair Heck and Vice Chair Nesser No: 0 2. 25-191 Presentation and discussion on proposed District budget for Fiscal Year(FY) 2025-2026 to include proposed rates, fees, and charges applicable during FY 2025-2026 and classification and compensation plan for District employees. District Director Mike Loggins presented an overview of the proposed District budget for Fiscal Year(FY)2025-2026 to include proposed rates, fees, and charges applicable during FY 2025-2026 and classification and compensation plan for District employees. City of Apache Junction,Arizona Pagel Water Utilities Community Facilities Special Meeting Minutes May 6,2025 District Mr. Loggins presented an overview of the current fiscal year budget. The FY 2024-2025 budget was expected to be $13.8 million. The District is projected to spend around $9 million. Mr. Loggins presented an overview of the FY 2025-2026 budget. There were a few projects that did not get finished this year that will be carried over to next year's budget. The District is proposing a budget of$15.7 million. Water resource acquisition fees and system connection fees make up a large portion of the revenue. The system connection fees are used for upgrading the water system. The water resource acquisition fees are used for purchasing additional water in the future. The water resource acquisition funds are being put into a saving account to be used to fund the Bartlett Dam Project. Mr. Loggins presented an overview of vehicles and equipment to be purchased during FY 2025-2026. The District will be purchasing two (2) new%ton service trucks, two (2) new mid-size trucks and one (1) new track hoe and trailer. Boardmember Heck noticed a discrepancy in the operating amount listed on the proposed budget. Mr. Loggins said he would look into it and get back with the board. Mr. Loggins presented an overview of the capital projects proposed for FY 2025-2026 to include the design and construction of a new Water District office, installation of a 12-inch waterline under Highway 60 at Goldfield Road, and replacing an existing 12-inch waterline and installing a new 12-inch waterline under Highway 60 at Idaho Road. The District will purchase one (1) two (2) million gallon a day(MGD)treatment train 5 at the Superstition Area Water Plant, construct a new booster station at Water Campus#2, drill a new well at Superstition Vistas, and finish construction of an Advanced Water Purification Demonstration Trailer. Mr. Loggins presented an overview of the expenditures proposed for FY 2025-2026. Work continues with Salt River Project on the Verde River Sedimentation Mitigation study for a cost of $100,000 per year, over a four-year period. This will be the last of the four payments. Due to an increase in costs,two additional payments of$180,000 are required for the next two years. The District will be purchasing Non-Indian Agricultural (NIA) water. Payments of$334,000 for five years were financed through Central Arizona Project(CAP). This will be the final payment to CAP for the NIA water. Mr. Loggins presented an overview of the cost of CAP water. These charges are increasing annually, and operation and maintenance fees are around $1.4 million. Capital fees to CAP are $390,000. Costs have increased over the last 10 years. Mr. Loggins presented an overview of the proposed rate adjustments for FY 2025-2026. For customers within the city limits this increase would include 5% in the base rate and no change to the consumption rate or tiers, for a 2.3% overall increase, or$1.75 per month. For customers in the county area this increase would include 5% in the base rate, 5%consumption rate and no change to the tiers, for a 4.8% overall increase, or$4.30 per month. These numbers are based City of Apache Junction,Arizona Page 2 Water Utilities Community Facilities Special Meeting Minutes May 6,2025 District on an average customer household using 7,500 gallons per month. He proposed an increase in the residential connection fees and water acquisition fees which will not affect current customers. Mr. Loggins is proposing an increase of 1.8% in system connection fees. The increase is based on the current consumer price index for construction. This is a one-time fee and is only for new development. These fees(funds) assist with upgrades for development. He is also proposing an increase of 1.8% in Water Resource Acquisition fees. These fees help to pay for additional water supplies for the District. Mr. Loggins presented an overview of the proposed classification and compensation plan for District employees. This will include a 2.5% one step increase for all employees, and a 4.5% increase on average to health insurance premiums. The premium cost is shared between the District and the employee. Mr. Loggins presented the upcoming budget meeting schedule. The tentative budget will be presented on Tuesday, May 20, 2025, and the final budget will be presented on Tuesday, June 17, 2025, at 6:00 p.m. in the Apache Junction City Council Chambers. D. District Manager Report No report. E. District Director Report 3. 25-197 Presentation and update on District wide water system. Mr. Loggins presented a re-cap on the Apache Junction Water Festival. The festival was held at Prospector Park on April 24, 2025. The event was attended by four schools, consisting of 8 classes and 198 fourth grade students. There were over 39 volunteers from the City of Apache Junction, the Apache Junction Water District, Arizona Water Company, Project Wet and the community. Mr. Loggins expressed his gratitude to Boardmember Johnson and all the volunteers who made the event a success. Mr. Loggins presented an update on the Colorado River reservoir levels. Water levels are lower than last year in Lake Powell and Lake Mead. Salt River Project reservoir levels are lower as well. Mr. Loggins presented an update on water production in the District. Water production has increased due to the new development. Boardmember Cross asked how much of this water is being used for construction. Mr. Loggins explained that water used for construction comes directly from the CAP canal and is not part of these numbers. F. District Treasurer Report No report. City of Apache Junction,Arizona Page 3 Water Utilities Community Facilities Special Meeting Minutes May 6,2025 District G. Adjournment Chairperson Wilson adjourned the special meeting at 6:50 p.m. ACCEPTED THIS DAY OF J k 0 , 2025, BY THE CHAIR PERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT, (CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS DAY OF J (-If 0 V07 , 2025. WALTER"CHIP"WILSON Chairperson ATTEST: EVIE MCKINNEY District Clerk City of Apache Junction,Arizona Page 4