Fiscal Year 2027 Adopted Budget – Effective July 1, 2026
Review the most recent Audited Financial Statements
Budget Development
The Metropolitan Domestic Water Improvement District (District) operates under the mission “to deliver safe, reliable water to our customers.” Budget preparation follows a prioritization process that aligns all financial decisions with the District’s five-year financial plan and organizational mission.
Department managers work collaboratively with staff to develop budget requests and recommendations for new programs, equipment, and operating expenditures. One-time requests for equipment or services that support the District’s mission are prioritized within each department before inclusion in the proposed budget.
The District’s Fiscal Year (FY) 2027 budget is prepared and adopted using the accrual basis of accounting, whereby revenues are recognized when measurable and available, and expenses are recognized when liabilities are incurred. Unexpended funds revert to fund balance at the end of the fiscal year.
Department Structure
The District has established the following departments to account for its primary operational activities:
Utilities
The Utilities Department accounts for operations and costs associated with the Metro Main service areas. The departmental budget includes personnel, operations, maintenance, and power costs associated with providing water service within these areas.
Southwest Utilities
The Southwest Utilities Department accounts for operations and costs associated with the Diablo Village, Lazy B, and E&T service areas. The departmental budget includes personnel, operations, maintenance, and power costs necessary to provide service within these designated areas.
Northwest Utilities
The Northwest Utilities Department accounts for operations and costs associated with the District’s northwest service areas. Operations within this service area are anticipated to begin during the second half of the fiscal year.
The departmental budget includes personnel, operations, maintenance, and power costs associated with service delivery. Costs are shared among the Northwest Recharge, Recovery, and Delivery System partners, including the Town of Marana and the Town of Oro Valley.
Engineering
The Engineering Department accounts for activities related to engineering support services, information technology, and Capital Improvement Program (CIP) project management.
The departmental budget includes personnel, operational, contracted services, and information technology infrastructure costs necessary to support District operations and development activities.
General Manager / Administrative
The General Manager and Administrative Department accounts for the District’s administrative functions, including finance, hydrology support services, customer service, human resources, and safety programs.
The departmental budget includes personnel, operational, contracted, and support service costs necessary to support District operations, customer services, and water resource management functions. Costs associated with Central Arizona Project (CAP) water purchases are also included within this department.
Budget Approval Timeline
The proposed FY 2027 budget was presented to the Board of Directors for review and recommendations at the March 9, 2026 Board Meeting.
A public rate hearing was held on May 11, 2026, during which rate and fee adjustments were approved for a three-year period, including FY 2027.
The FY 2027 budget was officially presented to the Board of Directors for final review and adoption at the May 11, 2026 Board Meeting.
Budget Highlights
The District remains committed to maintaining long-term financial stability through responsible budgeting, infrastructure planning, reserve management, and strategic investment in critical water system assets by addressing the following key priorities.
- Capital improvements to support long-term water delivery, system reliability, operational efficiency and system resiliency
- Funding for operational maintenance and regulatory compliance
- Support for future growth and development within District service areas
- Continued regional collaboration through shared water system projects