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HomeMy WebLinkAbout2026 05.05 WUCFD Minutes ambers Im City of Apache Junction Arizona City CouncilSuperstition � 300 E Superstition Boulevard Special Meeting Minutes Apache Junction,AZ 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 5,2026 6:30 PM City Council Chambers A. Call to Order Chairperson Wilson called the special meeting to order at 6:30 p.m. B. Roll Call Present 7- Chairperson Wilson, Vice Chair Schroeder, Boardmember Cross, Boardmember Soller, Boardmember Johnson, Boardmember Heck, and Boardmember 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 Stacy Ramirez, Utility Billing Supervisor Rita Vineyard, Senior Administrative Assistant Angelie Hawley, District Treasurer Connie Chow, District Controller Robert Wisler, Management Analyst Eli Richardson, Management Analyst C. Agenda Items 1. 26-196 Presentation and discussion on proposed District budget for Fiscal Year(FY) 2026-2027 to include proposed rates, fees, and charges applicable during FY 2026-2027 and classification and compensation plan for District employees. District Director Mike Loggins presented an overview of the proposed District budget for Fiscal Year(FY) 2026-2027 to include proposed rates, fees, and charges applicable during FY 2026-2027 and classification and compensation plan for District employees. Mr. Loggins presented an overview of the current fiscal year budget. The FY 2025-2026 budget was expected to be$15.7 million. The District is projected to spend around $15.1 million. Mr. Loggins presented an overview of the FY 2026-2027 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$28.1 million. Water resource acquisition fees and system connection City of Apache Junction,Arizona page 1 Water Utilities Community Facilities Special Meeting Minutes May 5,2026 District 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 large projects, purchasing additional water supplies, or lease additional water supplies. Mr. Loggins presented an overview of vehicles and equipment to be purchased during FY 2026-2027. The District will be purchasing two (2) new%ton service trucks, one (1) new mid-size truck and one (1) new pipe trailer. Mr. Loggins presented an overview of the capital projects proposed for FY 2026-2027 to include installation of a 12-inch waterline on Baseline Avenue from the Water Campus 2 located at the Public Works property to Idaho Road, installation of a 16-inch waterline on Tomahawk Road from US Highway 60 to Southern Avenue, installation of electrical and pumping equipment at Well 10 on Ironwood Drive, purchasing effluent credits from the Apache Junction Sewer District, replace and upgrade booster pumps at Water Campus 2, replace media in treatment train 1 and coat existing pipe at Superstition Area Water Plant and starting the construction of a new Water District office. Mr. Loggins presented an overview of expenditures proposed for FY 2026-2027. Work continues with Salt River Project on the Verde River Sedimentation Mitigation study for a cost of$180,000 per year. This is payment six of six. Mr. Loggins presented an overview of the cost of Central Arizona Project(CAP)water. These charges are increasing annually, and operation and maintenance fees are around $1.5 million. Capital fees to CAP are$215,000. These costs have increased over the last 10 years. Mr. Loggins presented an overview of the proposed rate adjustments for FY 2026-2027. 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 2.4% overall increase, or$1.83 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$4.52 per month. These numbers are based 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 1.7% 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 1.7% in Water Resource Acquisition fees. These fees help to pay for additional water supplies for the District. Boardmember Cross asked how the system connection fees compare to other cities. Mr. Loggins said he would present that information at the May 19, 2026 meeting. Mr. Loggins presented an overview of the proposed classification and compensation plan for City of Apache Junction,Arizona Page 2 Water Utilities Community Facilities Special Meeting Minutes May 5,2026 District District employees. There will be varied salary increases for employees depending on average market salary per position. The average increase across all positions is 8.8%. There will be a 9.5% increase in 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 19, 2026, and the final budget will be presented on Tuesday, June 16, 2026, at 6:30 p.m. in the Apache Junction City Council Chambers 300 East Superstition Boulevard,Apache Junction, AZ 85119. D. District Manager Report No report. E. District Director Report District Direct Loggins presented an overview of the Apache Junction water festival. Mr. Loggins presented an update on the District's water production. Water production has increased in the last few years due to the increase in new customers. F. District Treasurer Report No report. G. Adjournment Chairperson Wilson adjourned the meeting at 6:48 p.m. ACCEPTED THIS 16) DAY OF - L X , 2026, BY THE CHAIR PERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT, (CITY OF APACHE JUNCTION,ARIZONA). 1 -/t7 SIGNED AND ATTESTED TO THIS DAY OF �J 2026. Walter"Chip"Wilson Chairperson ATTEST: Evie McKinney District Clerk City of Apache Junction,Arizona Page 3