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Operating Budget
2026/27
Administration/Project Management
$605,520
Lake Operations
$555,000
Water Quality Management
$285,750
Security
$927,500
Lake Surface, Shoreline Cleanup, and Landscaping
$734,000
Electricity
$160,000
Replacement Water
$282,800
Audit
$690
Liability Insurance Premium
$92,870
Total Operating Budget
$3,644,130
Other Assessable Costs
2026/27
Capital Replacement
$913,400
Equipment
$88,370
Combined Capital Replacement
$1,001,770
2026/27
Operations and Maintenance Budget
$4,645,900
Less CFD Fund Balance adjustment
$300,000
Less Projected Revenues (permits, use fees)
$130,500
Total Operations and Maintenance Budget
$4,215,400
Rio Salado Community Facilities District (CFD)
FY 2026/27 Operations and Maintenance Budget
Summary
Exhibit F
Page 1 of 9
Service Provided to the Rio Salado Community Facilities District:
Administration/Project Management
Description of Service:
FY 2026/27 Service Cost:
2026/27
Description
Account
Budget
Contracted Services
5010 - 6672
$605,520
Total - Project Administration & Management Budget
$605,520
Cost Assumptions
Rio Salado Community Facilities District
FY 2026/27 Operations and Maintenance Budget
Detailed Costs by Service Category
Administrative functions include overall project coordination, Rio Salado Community Facilities District
reporting, budget preparation, legal advertising, financial management, contract administration,
construction oversight, and developer liaison.
Consistent with the Inter-Governmental Agreement, Rio Salado CFD Administration/Project Management
operating costs will not exceed 15% of non-administrative costs, excluding capital outlay. This CFD
administration budget is at 15% of the remaining budget.
Non-administrative costs include: infrastructure replacement, lake operations, water quality management,
lake security, replacement water and electricity, annual audit, and the liability insurance premium.
Exhibit F
Page 2 of 9
Service Provided to the Rio Salado Community Facilities District:
Capital Replacement
Description of Service:
FY 2026/27 Service Cost:
2026/27
Description
Account
Budget
Contracted Services
6206009 - 6999
$913,400
Equipment
6206009 - 6999
$88,370
Total - Capital Replacement
$1,001,770
Cost Assumptions
Projected replacements for the 2026/27 fiscal year may include:
Seepage Recovery Well Mag Meters
$37,600.00
Seepage Recovery Well Pumps (10) and flex piping
$33,900.00
Lake Wall repairs
$153,300.00
Bouys - individual warning markers
$10,400.00
Bouys/Boom replacement (upstream & downstream, 100' per year)
$264,900.00
Replace Buoy line at downstream
$261,800.00
Signage
$22,400.00
Vehicle Replacement
$227,000.00
Unanticipated expenses/repairs/replacements (15%)
$117,645.00
TOTAL
$1,128,945.00
Rio Salado Community Facilities District
FY 2026/27 Operations and Maintenance Budget
Detailed Costs by Service Category
In addition to the proposed operating and capital budget, additional funding is required to create and
maintain a reserve for the replacement of capital items located between lake edge-to-lake edge, dam-
to-dam. This item will appear on the CFD annual financial statements as a reserve for capital
replacement and will be an assessable cost to CFD property owners. The annual funding requirement
for the replacement capital reserve is currently $809,500.
This capital replacement cost was anticipated to change upon completion of a reserve study for
capital asset replacement. The Rio Salado Enhanced Services Commission recommended that this
reserve study be completed to ensure that an appropriate replacement reserve is accounted for in this
budget. Additional equipment reserves have been moved from the Service Cost are to Capital
Replacement.
The capital reserve budget will be modifed each year based upon changes to replaced items during
the previous year, including unspent equipment reserves from the current year, and also based upon
the annualyzed West Urban CPI from December. The 2026 CPI is 2.9%. This year the cap rate of 5% is
used.
The amount to re-appropriate from the estimated 2025/26 carry-forward balance is a maximum of
$2,980,845.
Exhibit F
Page 3 of 9
Service Provided to the Rio Salado Community Facilities District:
Lake Operations
Description of Service:
FY 2026/27 Service Cost:
2026/27
Description
Account
Budget
Contracted Services
5011 - 6672
$555,000
Total Lake Operations
$555,000
Cost Assumptions
FY 2026/27 Operations and Maintenance Budget
Rio Salado Community Facilities District
Detailed Costs by Service Category
Tempe's Public Works Department will perform and administer Tempe Town Lake operations. Primary
functions include:
> 24-hour remote monitoring and control of all of the lake systems via telemetry installed by the
contractor.
> Operations and Maintenance (O&M) of the water delivery systems which are used to fill and maintain
lake water levels and to pass storm flows.
> O&M of the downstream hydrolic dam to maintain lake water levels and to pass storm flows.
> O&M of the seepage recovery wells on the east end of the project to maintain water levels in the lake.
> Installing and monitoring telemetry systems in the Indian Bend Wash for the purpose of advance
warning of flooding from this stormwater channel.
> Providing water balance reports to the City that account for all the water resources used in filling and
maintaining the lake.
A contract with Tetra Tech for the creation of an annual report to the Arizona Department of Water
Resources (ADWR), Dam Safety is also included.
The budget is based on the Municipal Utilities Department's estimate for lake operations. This year's budget
reflects annual operating and maintenance expenses, an estimate for time and material (T&M) charges, and
an estimate for a dam report to the Arizona Department of Water Resources.
Exhibit F
Page 4 of 9
Rio Salado Community Facilities District
FY 2026/27 Operations and Maintenance Budget
Detailed Costs by Service Category
Service Provided to the Rio Salado Community Facilities District:
Water Quality Management
Description of Service:
FY 2026/27 Service Cost:
2026/27
Description
Account
Budget
Landscape Maintenance Contract
5012 - 6671
$66,000
Contracted Services (Water Quality)
5012 - 6672
$211,250
Vehicle Maintenance Costs
5012 - 8303
$7,000
Vehicle Fuel/Oil Costs
5012 - 8306
$1,500
Total Water Quality Management
$285,750
Cost Assumptions
A "Water Quality Management Services" contract with Aquatic Consulting and Testing was approved by
the Tempe City Council on April 27, 2018. Services provided consist of sampling, analysis, and
treatment necessary to meet regulatory permit requirements. There is also a need to meet the aesthetic
parameters expected by the citizens, lake users, and development partners. These services include
sampling and analysis of source waters (SRP canal deliveries), native river sediments, and non-native fill
materials imported during water flow events.
The budget is based on the Rio Salado Water Quality Management Services contract with Aquatic
Consulting and Testing. The budget reflects annual operating expenses of up to $250,000 in relation to
water quality efforts, and up to $66,200 in lake surface cleaning.
In addition to the contract amount we have included estimates for time and material (T&M) costs of
$10,000, and pump well monitoring and analysis by the Tempe Water Utilities Division for $5,000, along
with vehicle maintenance and fuel costs.
Exhibit F
Page 5 of 9
Service Provided to the Rio Salado Community Facilities District:
Lake Security
Description of Service:
FY 2026/27 Service Cost:
2026/27
Description
Account
Budget
Security
5013 - 6625
$755,000
Contracted Services
5013 - 6672
154,500
Equipment & Machine Rental
5013 - 6906
5,000
Vehicle Maintenance Costs
5013 - 8303
10,000
Vehicle Fuel/Oil Costs
5013 - 8306
3,000
Total Lake Security
$927,500
Cost Assumptions
Rio Salado Community Facilities District
FY 2026/27 Operations and Maintenance Budget
Detailed Costs by Service Category
Security monitoring of all lake and dam facilities is provided nearly 24 hours per day, 7 days per
week. The primary role of the security team will include monitoring the safety of the dam, pumping
facilities and shoreline. Also, the security team presence will deter graffiti and vandalism. Additional
functions during operational hours will include assisting the public, distributing information,
surveillance, and patrolling.
The proposed security team will provide a security presence at the lake, including patrol of dams,
pumping facilities, and the shoreline. Specifically, the proposed budget reflects the equivalent of one
hundred eighty (180) patrol hours per week for regular lake operations, including the necessary fees
and services to perform the security function, and one-half of a Police Sergeant to coordinate the Lake
Security staff (contract is found in C2011-150).
Maintenance and fuel costs for 1 boat and 1 truck are accounted for.
Leasing costs for one (1) ADA portable restroom and periodic maintnenance is also included.
Exhibit F
Page 6 of 9
Service Provided to the Rio Salado Community Facilities District:
Shoreline Cleanup, Park Landscaping and Maintenance
Description of Service:
FY 2026/27 Service Cost:
2026/27
Description
Account
Budget
Electrical Supplies
5014 - 6406
$5,000
Contracted Services
5014 - 6672
$715,000
Vehicle Maintenance Costs
5014 - 8303
$7,500
Vehicle Fuel/Oil Costs
5014 - 8306
$6,500
Total Lake Cleanup, Landscaping, etc.
$734,000
Cost Assumptions
Detailed Costs by Service Category
FY 2026/27 Operations and Maintenance Budget
Rio Salado Community Facilities District
Activities on the water and around the lake produce a considerable amount of refuse in the parks. Shoreline and
park cleanup is required to maintain the attractive appearance of the Tempe Town Lake on the Rio Salado that is
expected by both the public and the property owners. Other maintenance functions will include graffiti removal,
weekly sweeping of the bike paths, and trash removal.
The proposed budget assumes regular landscape and linear park maintenance. It includes the marina and the
landscaped park areas on the south and north banks. Additional services included are graffiti removal, bikepath
sweeping, and trash removal. The lake surface maintenance portion was moved and is now included with water
quality due to the combined contract for water quality and lake surface cleaning.
Exhibit F
Page 7 of 9
Service Provided to the Rio Salado Community Facilities District:
Electricity/Replacement Water
Description of Service:
FY 2026/27 Service Cost:
2026/27
Description
Account
Budget
Electricity
5015 - 6605
$160,000
Water, Refuse & Sewer
5015 - 6609
$7,800
Water
5015 - 6616
$275,000
Total Electricity/Replacement Water
$442,800
Cost Assumptions
Rio Salado Community Facilities District
FY 2026/27 Operations and Maintenance Budget
Detailed Costs by Service Category
Electricity:
Electrical power is required for the operation of the inflatable dams, water recovery pumps, the lagoon
circulation pump, and the bike path lighting around Tempe Town Lake.
Replacement Water:
Replacement water will be required for evaporation losses and losses due to seepage not recovered by the
wells.
Electricity:
Electrical costs for the dam (blower operation and lower dam water recirculation system) are based on 19
complete years of operations in FY 2022/23. Electrical costs for the water seepage recovery and circulation
pumps reflect 9 wells, 2 control buildings, 2 pumps for the dam overflow recycle system, 1 circulation pump,
and the bike path lighting found on top of the levee, all operating at 60% capacity. Additionally, all 13 meters
must be serviced on a monthly basis.
Replacement Water:
Water loss due to consumption is estimated at an average of 2,130 acre feet per year. Since we have
periodic inflows from east of Town Lake, the average annual consumption has been reduced to 2,000 acre
feet per year. Consumption includes evaporation and loss due to delivery and seepage. Cost of CAP water
is approximately $256.00 per acre foot. This value is used as our estimate for water replacement.
Exhibit F
Page 8 of 9
Service Provided to the Rio Salado Community Facilities District:
Insurance, and Audit
Description of Service:
FY 2026/27 Service Cost:
2026/27
Description
Account
Budget
Audit
5016 - 6654
$690
Liability Insurance Premium
5016 - 6804
92,870.00
Total Equipment, Insurance, & Audit
$93,560
Cost Assumptions
Rio Salado Community Facilities District
FY 2026/27 Operations and Maintenance Budget
Detailed Costs by Service Category
Lake security patrol, rescue, and maintenance will require a boat and related equipment (such as
special lighting and radios for the rescue boat). The lake security team also uses a truck. Lake cleanup
has a utility truck (3/4 ton pickup) for hauling equipment and trash, and a boat. Lake Operations has a
vehicle as well.
Insurance coverage is $100,000 per occurrence.
The CFD Budget must be audited on an annual basis.
Annual audit of the Rio Salado Community Facilities District is estimated at $630.
Insurance premium is for excess property coverage for the Town Lake Dam systems. The deductible is $100,000 per
claim. Annual premium costs are estimated at $82,800.
Exhibit F
Page 9 of 9