Arizona Public Media

A portion of the Central Arizona Project canal snakes through the Arizona desert.

Arizona cities will soon have to pay more for water deliveries from the Central Arizona Project.

The Central Arizona Water Conservation District board voted Thursday to raise the capital charge paid by cities from $23 to $31 per acre foot beginning next year. The rates could climb again in 2018 to $49 per acre foot, pending the board's vote.

The capital charge helps the board pay off its debt of more than a billion dollars owed to the federal government for the construction of the massive canal system more than two decades ago. The annual debt obligation amounts to about $55 million and until recently CAP could cover most of that using the revenue from the Navajo Generating Station. As natural gas prices have plummeted, CAP has been forced to dip into its strategic reserves, pulling out $10 to $20 million a year.

CAP General Manager Ted Cooke said that is no longer an option, so they have to ratchet up the capital charge -- what should have happened long ago.

“So shame on all of us for allowing the situation to go on too long where we were collecting $18, $21, $23 an acre foot on the capital charge when at that point in time it should have been 35, 40 plus dollars.”

“We all knew better, but did not have the political will power.” he said.

At Thursday’s meeting, many cities voiced their displeasure with the proposal, especially because many had budgeted for a lower rate based on information from earlier in the year.

Cynthia Campbell with the City of Phoenix said they were “disappointed” with the process and the unexpected rate hike. Phoenix will have to come up with a million dollars this year and an additional $4 million the year after to pay the new capital charge. Campbell said it is unlikely the city will need to raise rates on customers.