El Mirage 2025 CAP Water Order

City of El Mirage — Regular Meeting (2024-09-04)

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City of
EL MIRAGE

Arizona

GRAND HERITAGE, BRIGHT FUTURE!

Public Works Department

10355 N 121 Avenue, El Mirage 85335

623-935-6405; Fax 623-935-6184; TDD 623-933-3258

www. cityofelmirage.org

August 12, 2024

Water Services Administrator
Water Control, Central Arizona Project
PO Box 43020

Phoenix, AZ 85080-3020

RE: Subcontract 2025 order

- City of El Mirage
- Municipality
- 508 acre-feet total

Requested Water Type

e Subcontract (No. 07-XX-30-W0504) @ 508 Acre Feet
¢ Subcontract (No. 21-XX-30-W0699) @ 1318 Acre Feet

Delivery Schedule 2025

Request for water to be delivered and stored beginning in July 2025 at one or all of
the three Underground Storage Facilities listed below.

e Hieroglyphic Mountains Recharge Project
Water Storage Permit 73-584466.1200

e Agua Fria Recharge Project (Constructed Facility)
Water Storage Permit 73-569776.1300

¢ Tonopah Desert Recharge Project
Water Storage Permit 73-593305.1400

The 2025 CAP subcontract fees will be $363.00 per acre-foot (AF).
Delivery $295.00 per AF; Capital costs $54.00 per AF; and Storage/Recharge $14.00 per AF.

In the Event NIA Available

NIA allocation is approved and contracts assigned during 2025 El Mirage would take the
allocated 1318 Acre Feet at the 2025 Fee of $363.00 per acre-foot for delivery, capital costs and
storage.

Future Projections
¢ 2026 CAP subcontract 508 Acre Feet; CAP NIA 1318 Acre Feet
¢ 2027 CAP subcontract 508 Acre Feet; CAP NIA 1318 Acre Feet

Contact Info: Mark Ortiz
10355 N 121st Ave
El Mirage, AZ 85335
Phone 623-876-4252
Email: mortiz@elmirageaz.gov

Mailing Address: City of El Mirage, 10000 N El Mirage Road, El Mirage, AZ 85335
(623) 935-6405 FAX (623) 374-7308 TDD (623) 933-3258
www.cityofelmirage.org

CENTRAL ARIZONA PROJECT
FINAL 2025-2030 RATE SCHEDULE
BOARD APPROVED

DELIVERY RATES FOR VARIOUS CLASSES OF WATER SERVICE

Units = $/ acre-foot
(The Letter Designations in the Formulas Refer to the Rate Components Shown Below)

June 6, 2024

Water Volume (acre feet) 900K 900K 900K 900K 900K 900K 900K
Provi-
Firm _ sional Advisory
2024 2025 2026 2027 2028 2029 2030
Municipal and Industrial Subcontract (B+C) $ 270 $ 295 $ 304 $ 306 $ 322 $ 335 $ 350
Federal Contract (B+C) $ 270 $ (295 $ 304 $ 306 $ 322 $ 335 $ 350
Agricultural Settlement Pool (C) * $ 78 $ 95 $ 98 $ 101 $ 104 $ 107 $ 110
Excess (A+B+C)” $ 323 $ 349 $ 360 $ 370 $ 386 $ 396 $ 409
Interstate (A+B+C+D) TBD TBD TBD TBD TBD TBD TBD
RATE COMPONEN
Units = $/acre-foot
Water Volume (acre feet) 900K 900K 900K 900K 900K 900K 900K
Provi-
Firm — sional Advisory
2024 2025 2026 2027 2028 2029 2030
Capital Charges
Municipal and Industrial - Long Term Subcontract-Full rate $ 72 $ 69 $ 67 $ 64 $ 64 $ 61 $ 59
Board applied taxes to Repayment? $ (19) $ (15) $ (11) _ TBD TBD TBD TBD
(A) Municipal and Industrial - Long Term Subcontract-Net” $ 53 $ eG $ 56 $ 64 $ 64 $ 61 $ 59
Delivery Charges
Fixed O&M* 145 160 166 164 177 184 194
"Big R"* 47 40 40 M MN 44 46
(B) Fixed OM&R 7 $ 192 $ 200 $ 206 $ 205 $ 218 $ 228 $ 240
(C) Pumping Energy Rate ° $ 78 $ 95 $ 98 $ 101 $ 104 $ 107 $ 110
(D) Property Tax Equivalency TBD TBD TBD TBD TBD TBD TBD
(E) 2020 Voluntary Rate Stabilization® $ (11) $ = $ - $ - $ - $ - $ -
DIRECT UNDERGROUND WATER STORAGE
U $/acre-foot
Provi-
Firm _ sional Advisory
2024 2025 2026 2027 2028 2029 2030
Underground Water Storage O&M r
Phoenix AMA $ 14 $ 14 $ 15 $ 15 $ 15 $ 15 $ 15
Tucson AMA 15 15 15 15 15 15 15
Underground Water Storage Capital Charge 8
Phoenix AMA $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15
Tucson AMA 9 9 9 9 9 9 9

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CENTRAL ARIZONA PROJECT June 6, 2024
FINAL 2025-2030 RATE SCHEDULE

BOARD APPROVED

NOTES:

1) Agricultural Settlement Pool only pays the energy rate in accordance with the Arizona Water Settlement
Agreement.

2) In the event excess water is available, charges would include the water delivery rate plus a capital charge
equivalent.

3) For M&l use water, the Capital Charge is paid on full allocation regardless of amount delivered and is not included
in delivery rates. The Capital Charge rate is impacted by the following:

. 2024 - 11/2 cents of 2022/23 property taxes are being applied to the federal repayment, resulting in a
reduction of $19/AF.

° 2025 - 11/2 cents of 2023/24 property taxes are being applied to the federal repayment, resulting in a
reduction of $15/AF.

° 2026 - 1 cent of 2024/25 property taxes are being applied to the federal repayment, resulting in a
reduction of $11/AF. :

4) Fixed OM&R charge consists of Fixed O&M and "Big R" (Water delivery capital, large extraordinary maintenance
projects and bond debt service). Both charges are reconciled to actual expenses and water volumes. Debt service
on CAP's Water Delivery O&M Revenue Bonds, Series 2016 is about $3.6 million annually and is included in "Big R".
This rate is collected on all scheduled water whether delivered or not.

5) The pumping energy rate applies to all actual water volumes delivered as opposed to scheduled.

6) The 2020 Voluntary Rate Stabilization program will be completely utilized in 2024, for those entities participating,
resulting in a reduction in the Energy rate. Posted rates do not include this reduction. This is a customer funded
program.

7) Underground Water Storage O&M is paid by all direct recharge customers using CAP recharge sites.

8) Underground Water Storage Capital Charge is paid by all direct recharge customers except AWBA for M&l firming,

the CAGRD, municipal providers within the CAP service area and co-owners of CAWCD recharge facilities using no
more than their share of capacity.

Key Assumptions
-Hohokam CDR allocations are not ordered and therefore do not incur capital charges

-Water volume for Fixed OM&R includes water deliveries, take or pay, and CAGRD long-term storage credit purchases
-Water volume for Energy includes water deliveries and CAGRD long-term storage credit purchases

ERNATIVE WATER VOLUMES (For Planning Purposes Onl

Units = $/ acre-foot

FIXED OM&R RATE A’

Provi-
sional Advisory
Water Volume (acre-foot) 2025 2026 2027 2028 2029 2030
700,000 $ 257 $ 265 $ 263 $ 281 $ 294 $ 309
800,000 $ 224 $ 232 $ 231 $ 246 $ 257 $ 270
900,000 $ 200 $ 206 $ 205 $ 218 $ 228 $ 240
1,000,000 $ 180 $ 186 $ 184 $ 197 $ 206 $ 216
1,100,000 $ 164 $ 169 $ 168 $ 179 $ 187 $ 196

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