Council to take action on the Water Rights Transaction Extinguishment Credits Sale and Purchase Agreement between the City of Buckeye, an Arizona municipal corporation, and Circle G Pegasus, LLC, an A

4.F
CITY OF BUCKEYE
Regular Council Meeting
COUNCIL ACTION REPORT
AGENDA ITEM: 4.F. WR - Pegasus
MEETING DATE: 10/20/26 Extinguishment Credits Sale & Purchase
Agreement
DATE PREPARED: 10/15/26 DISTRICT NO.:
STAFF LIAISON: Terry Lowe, Water Resources Director, tlowe@buckeyeaz.gov,
(623) 349-6102
AGENDA ITEM TYPE: Consent Agenda
DEPARTMENT: Water Resources
Items / New Business
ACTION/MOTION: (This language identifies the formal motion to be made by the Council)
Council to take action on the Water Rights Transaction Extinguishment Credits Sale and Purchase
Agreement between the City of Buckeye, an Arizona municipal corporation, and Circle G Pegasus, LLC,
an Arizona limited liability company; authorize the City Manager to execute and deliver said Agreement;
and authorize and direct the City Manager, City Attorney, and City Clerk to take all steps necessary to
carry out the purpose and intent of said Agreement.
GOALS AND OBJECTIVES FOR THE STRATEGIC PLAN FOCUS AREAS:
Infrastructure
SUMMARY
PROJECT DESCRIPTION:
The acquisition of Extinguishment Credits will provide the city with an additional water resource that can
be utilized to support the city's long-term water supply strategy. Extinguishment Credits may be pledged
toward a Designation of Assured Water Supply (DAWS) and are exempt from replenishment
requirements, providing the city with greater flexibility in managing its water portfolio and meeting future
water supply obligations.
Under the terms of the Sale and Purchase Agreement, the city will acquire 2,017.51 acre-feet (AF) of
Extinguishment Credits from Circle G Pegasus, LLC (Pegasus) at a rate of $315.00 per AF, plus a
$250.00 Arizona Department of Water Resources (ADWR) conveyance fee. The total purchase price is
$635,765.65.
This acquisition represents a strategic investment in the city's water portfolio and supports the city's
continued efforts to secure and diversify long-term water resources necessary to serve future water
demands.
BENEFITS:
Ensuring the City's future as a reliable water provider by continuing to grow its water portfolio.
FUTURE ACTION:
None.
FINANCIAL IMPACT STATEMENT:
The total cost of this purchase is $635,765.65 to be paid from the FY2027 approved budget.
CURRENT FISCAL YEAR TOTAL COST:
The total amount of $635,765.65 is included in the approved FY2027 budget.

BUDGETED:
Yes
FISCAL YEAR:
FY2027
FUND/DEPARTMENT:
40003228-526024
Items related to a project or facility location must include an attached vicinity map for Council
Review.
ATTACHMENTS:
Circle G Pegasus LLC Extinguishment with Exhibits 928.pdf