Funding

The majority of the money utilized by the AWBA comes from existing revenue sources and from fees paid by those that benefit directly from the stored water. There are restrictions on the manner in which funds must be expended based on their source of generation. The AWBA obtains its funding from three sources:

1. Fees for groundwater pumping collected within the Phoenix, Pinal and Tucson Active Management Areas (AMA). In the Phoenix AMA, Tucson AMA and most areas of the Pinal AMA, fees are charged at $2.50 per acre foot. Credits accrued with these monies must be used to benefit the AMA in which they were collected.
2. A four cent ad valorem property tax in the three county CAP service area. The CAWCD is statutorily authorized to levy this tax through 2016. If the money is not needed for certain CAP costs, the funds are deposited into a District fund and are used to defray the AWBA's costs associated with the purchase of CAP water. It has done so every year since the AWBA’s inception. Money from this source must be used to benefit the county in which it was collected.
3. A general fund appropriation in an annual amount determined to be appropriate by the Arizona Legislature and the Governor. Funding from this source has not been available. Water stored with these funds may be used to assist communities along the Colorado River, to assist in meeting state water management objectives or as a component of Indian water rights settlements.

In 2005, the AWBA received funding to meet the terms of the Amended Agreement for Interstate Water Banking. The initial $100 million received in 2005 is intended to be an “insurance” payment to develop alternative water resources for Nevada if needed. Ten payments of $23 million beginning in 2009 through 2018 will be used to pay for the cost of water delivery and storage.

In the future, additional sources will likely include fees collected from the replacement of general fund credits used for drought protection and fees associated with water banking services agreements.

Through December 2009, the AWBA has expended approximately $244 million in the process of developing an estimated 3.4 million acre-feet of long-term storage credits. The 2010 Annual Plan of Operation will cost about $20 million and develop about 141,170 acre-feet of long-term storage credits. Annual accounting is detailed in the AWBA’s annual report.