CAP’s financial planning process, which includes water rates and the Biennial Budget, is transparent and methodical.
Since there is a direct relationship between the budget and rates, it is important the 2-year process of both works seamlessly together to help water users with long-term planning by providing the most reliable water rates possible.
Here’s a snapshot of this financial planning process:
- A bottom-up approach. Strategic Plans serve as the basis for the Biennial Budget, which starts with each area’s business plans for 2026-27 and then identifies the resources to accomplish those plans through the requested budget.
- The budget must align with the rates that CAP has published previously, so CAP puts as much forethought as possible into the rates and budget, collaborating with water users and stakeholders through open dialogue to identify goals, objectives, key issues and future initiatives.
Zoom out from the budget’s extensive information, and this document is all about communicating the path to help CAP achieve its critical mission of reliably delivering water to central and southern Arizona.
“The CAP budget reflects our best estimates for the true cost of service,” CAP Assistant General Manager of Finance and Administration Chris Hall said. “We do not load operating contingencies or any ‘buffer’ into the budget. To maximize transparency, if additional expenses arise, we present those to our board in our normal public process.”
This is because CAP is a cost-of-service entity that does not make a profit, and so we have a responsibility to provide this water supply at a reasonable price.
Here’s one way this is done: The 2-year financial planning process allows the CAWCD Board of Directors to primarily focus on water rates, strategic planning, reserves and financial strategy one year (during “even” years) and the budget in the subsequent year (“odd” years). One part of the process informs the next. Each is then reviewed in its “off” year for any necessary changes.
Therefore, 2025 has primarily been about developing the budget for the next two years.
In fact, the following public meetings focused on the budget will be livestreamed:
- 9 a.m., Tuesday, Oct. 7: Stakeholder Budget Briefing
- 9 a.m., Thursday, Oct. 16: Finance, Audit and Power Committee meeting
- 10 a.m., Thursday, Nov. 6: CAWCD Board of Director’s meeting where CAP staff will request approval of the budget.
The budget will be posted on CAP’s Biennial Budgets webpage by Oct. 1.
CAP encourages the public to review the budget and view/attend the public meetings, including providing any comments, prior to the budget’s approval in November.