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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
groundwater replenishment districts; annual dues
Purpose
Modifies the calculation for the Central Arizona Groundwater Replenishment District (CAGRD) when determining the amount of revenues to be raised through annual membership dues.
Background
Current statute requires CAGRD to: 1) establish annually the costs and expenses to replenish groundwater with respect to all parcels of member lands and all member service areas located in each active management area (AMA); and 2) provide for the payment of all costs and expenses to replenish groundwater and the payment of operation, maintenance, replacement and administrative costs and expenses of the district. A multi-county water conservation district may also: 1) develop, construct, operate, maintain, replace and acquire permits for water storage, facilities and recovery wells for replenishment purposes; and 2) acquire, hold, exchange, own, lease, retire or dispose of water rights for the benefit of member lands and member service areas (A.R.S. § 48-3772).
On or before the third Monday of August of each year, CAGRD may charge annual membership dues on all parcels of member lands and on all municipal providers having a member service area. The annual membership dues must be established annually by CAGRD and CAGRD must use revenues from the annual membership dues, together with revenues from other revenue sources that are legally available to CAGRD, solely to pay costs associated with acquisition, lease or exchange of water or water rights and development of infrastructure necessary for CAGRD to perform its replenishment obligations, including the payment of debt service expenses and necessary reserves and coverage requirements on bonds issued for replenishment purposes.
When CAGRD has determined the amount of revenues to be raised through the annual membership dues, CAGRD must allocate the amount to be raised between member lands and member service areas prorated on the basis of the following two volumes: 1) total current and projected annual replenishment obligation of all member lands as identified in the most recent plan of operation determined by the Director of Arizona Department of Water Resources (ADWR)to be consistent with achieving the management goal for the AMA; and 2) total planned annual service area replenishment obligations for all member service areas (A.R.S. § 48-3779).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Modifies the calculation for CAGRD when determining the amount of revenues to be raised through annual membership dues by:
a) adding to the calculation, for member lands, the projected groundwater use per lot multiplied by the total number of residential, commercial and common area lots that are included, or intended to be included, in each parcel of member land; and
b) removing from the calculation, total current and projected replenishment obligation of all member lands as identified in the most recent plan of operation determined by the Director of ADWR to be consistent with achieving the management goal for the AMAs.
2. Removes the requirement that the total amount allocated to member lands in any year must be prorated among the Phoenix, Pinal and Tucson AMAs based on the current and projected annual replenishment obligation of all member lands in that AMA as identified in the most recent plan of operation determined by the Director of ADWR to be consistent with achieving the management goal of the AMA.
3. Prohibits CAGRD from charging annual membership dues on any parcel of member land for billing year 2027 at a rate per lot of more than the rate charged per lot for parcels of member land in the same AMA during billing year 2026.
4. Makes technical changes.
5. Becomes effective on the general effective date.
House Action
NREW 2/14/25 DPA 9-0-0-1
3rd Read 3/10/25 50-6-4
Prepared by Senate Research
March 21, 2025
SB/slp