The Colorado River's shrinking flows have Phoenix renewing more than $75 million in annual water contracts, a routine vote that lands weeks after a federal plan threatened to cut Arizona's Colorado River supply by up to 40 percent.
The largest item — $62 million to the Central Arizona Water Conservation District — covers Colorado River water delivered through the 336-mile CAP canal system for homes, businesses, and irrigation. Four separate agreements with the Salt River Project total $11.4 million for water transportation, delivery, and management of the CAP-SRP interconnection facility. The Roosevelt Irrigation District receives $1.5 million under a 1998 legal settlement that resolved water rights claims with the Salt River Pima-Maricopa Indian Community.
The spending comes at a moment of heightened uncertainty on the Colorado River. In May, Arizona, California, and Nevada proposed a three-state plan that would reduce Arizona's Colorado River supply by 760,000 acre-feet — substantial, but far less than the federal alternative that water officials said risked sending "CAP going to zero."
Phoenix draws from four water sources. The Salt and Verde rivers, delivered through SRP canals, supply about 60 percent of the city's water. Colorado River water through CAP provides roughly 29 percent, with groundwater and reclaimed water making up the rest, according to the city's water resource plan.
The council will also adopt the 2026-31 Capital Improvement Program, a five-year spending blueprint totaling $12.9 billion. Water projects account for $2.875 billion and wastewater accounts for $1.992 billion — together, 38 percent of every capital dollar over the next five years. The program sets priorities but does not appropriate money; each year's construction budget draws from it.
Other items include memberships in the Western Urban Water Coalition ($44,000), the Water Research Foundation ($274,000), and the National Association of Clean Water Agencies ($82,000) — organizations the city uses to benchmark operations, access research, and participate in federal water policy. The council will also authorize $300,000 in permit fees to the Arizona Department of Environmental Quality and Arizona Department of Water Resources.