Title
Water Services Department Six-Year Capital Improvement Program for Fiscal Years 2026-31 - Citywide
Description
This report provides the Transportation, Infrastructure, and Planning Subcommittee with information on the Water Services Department’s approved Fiscal Year 2025-26 and proposed Fiscal Year 2027-31 Six-Year Water and Wastewater Capital Improvement Programs.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
The Water and Wastewater Capital Improvement Programs (CIP) provide for the infrastructure needed to supply high quality water and safely remove and treat wastewater; ensure adequate water and sewer capacity for future growth; enhance community sustainability through protection of the environment; ensure operational resiliency of the City's water and wastewater utilities; and provide for a sustainable and resilient supply of water now and into the future. The City’s water and wastewater utilities are financed through water and wastewater enterprise funds. Revenue is generated from sale of metered water, fees for services performed, sale of treated wastewater, and development-related fees.
Funding for the Water and Wastewater CIP comprises more than half of the overall Water Services Department's budget. Because of this, the CIP is one the most significant drivers of the revenue needed to maintain financially viable municipal water and wastewater utilities.
The approved Fiscal Year (FY) 2025-26 and proposed FY 2027-31 CIP budgets were carefully crafted to ensure safe, clean, reliable water deliveries to approximately 1.7 million people over 540 square miles, as well as safe removal and treatment of wastewater for close to 2.5 million people in metropolitan Phoenix. Projects are prioritized through a rigorous process designed to ensure the Water Services Department is building and/or replacing the right infrastructure at the right time and to ensure the most effective use of revenues.
Water CIP
The approved FY 2025-26 and proposed FY 2027-31 Water CIP totals $3.17 billion. The approved FY 2025-26 and proposed FY 2027-31 projects are listed by fiscal year (Attachment A).
The Water CIP includes, but is not limited to, the following key programs: $1,241 million for water treatment plants, including $440 million for the new North Gateway Advanced Water Purification plant; $775.4 million for drought resiliency efforts to protect Phoenix water customers during Colorado River shortages; $551 million for water pipelines; $202.4 million for booster pump stations; and $231.5 million for water storage.
Over the next year, water capital projects under construction include replacement activities at the water treatment plants, replacement and rehabilitation of aging water transmission and distribution mains, replacement of galvanized service lines, replacement of aging booster pump stations, rehabilitating water storage facilities, upgrading and replacing process control and security systems, and continuing construction at new groundwater well facilities.
Wastewater CIP
The approved FY 2025-26 and proposed FY 2027-31 Wastewater CIP totals $2.15 billion. The approved FY 2025-26 and proposed FY 2027-31 projects are listed by fiscal year (Attachment B).
The Wastewater CIP includes, but is not limited to: $1,257 million for wastewater treatment plants, including $325 million for the new North Gateway Advanced Water Purification plant; $723 million for sewer pipelines including $10.9 million for odor control projects; $105.2 million for lift stations; and $27.3 million for energy, technology, and facilities.
Within the overall Wastewater CIP, a total of $116.6 million has been programmed for the Sub-Regional Operating Group interceptors and regional sewer capacity improvements. These improvements are required to ensure that sufficient capacity exists to convey flows to the treatment plants while meeting regulatory requirements.
Over the next year, capital funds will be expended on extensive rehabilitation of aging infrastructure at numerous facilities including the Cave Creek Water Reclamation Plant, 91st Avenue and 23rd Avenue Wastewater Treatment Plants, lift stations and odor control facilities. Construction will also occur on sewer pipe infrastructure to rehabilitate aging lines. In some locations, lines will be replaced with new larger sewers to allow for additional flows due to growth or infill. Safety is also a priority. Modifications are planned for treatment plants and lift stations to improve operational safety, hinder vandalism, and deter cyber-attacks.
Conclusion
The water and wastewater capital projects outlined will ensure reliable infrastructure performance and maintain compliance with environmental regulations. Staff are committed to monitor system needs, seek efficiency savings where possible, and make program adjustments as necessary to ensure program costs are reasonable and fiscally responsible.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Water Services Department.