Wednesday, April 17, 2024

Oro Valley Built Water Reserves in Fiscal 2023

Water's Annual Report gives glimpse into water operations 
Oro Valley Water Director Peter Abraham emphasized the efficient management of water resources as a cornerstone of community sustainability earlier this month in his remarks to the town council. 

Abraham was presenting the utility’s fiscal 2024 Annual Report. An annual report is required by Article 15-4-5 of the town code. "It's prepared by the Water Utility staff, the commission reviews and comments on the report. Town staff renders a report to town council on behalf of the commission and the report becomes a public document once accepted by the council.”

A dedicated team of professionals keeps everything working
The operational backbone of the water utility lies in its dedicated teams, particularly the water operations group, which oversees metering, distribution, production, water quality, and control systems. Their steadfast commitment ensures the reliability and efficiency of the town's water infrastructure. (See panel right)

Serving 21,300 accounts 
In terms of customer service, the water utility served more than 21,300 accounts with prompt billings, cash receipts processing, and addressing customer inquiries. Furthermore, through an intergovernmental agreement with Pima County, the utility does monthly billing for Pima County Wastewater, increasing its revenue streams.

Has 35,000 acre feet of drinking water reserves
Water resource management remained a focal point, with prudent use of Oro Valley’s three main sources of potable water: Groundwater, CAP water, and reclaimed water. (See panel left) The town has accumulated 35,000 acre feet of long-term storage credits. That's almost six years of water production!

“We continue to buy our full CAP allocation, and we continue to store unused CAP water for future use if we need it….”  Last year, the utility:
  • Used CAP water to replace the 4,925 acre-ft. of groundwater pumped 
  • Stored approximately 2,807 Acre-ft. of CAP water for future use (Drinking water Reserves)
  • Stored approximately 10 Acre-ft. of reclaimed water for future use (reclaimed water reserve
“Between the entitlement or the allocation of CAP water we have of 10,305 acre feet a year, you subtract out replacing the groundwater we pumped and the deliveries we directly delivered. The rest of that we stored in nearby underground aquifer storage facilities, and that was about 2,800 acre feet of that unused CAP water was stored and became long-term storage credits. That goes to our long-term storage credit account, so that account now is just under 35,000 acre feet, so that's great.”

Conservation focus….60% of leaks are from irrigation
Conservation efforts were also paramount, with extensive community outreach and education programs aimed at promoting water efficiency and responsible usage. “Over 8,000 automated alerts were sent to registered users in 2023, and 60% of the leaks were, as confirmed by customers, were related to irrigation leaks, so this is one of the areas we focus with our customers is operating and maintaining their irrigation system and keeping it in good operating form.”

Financial sustainability 
Financially, the water utility maintained stability and resilience despite its operational demands. With two utility funds, the Enterprise Operating Fund and the Water Resources System Development Impact Fee Fund, the utility effectively managed its debt obligations of $18.3 million. Annual debt service is $3.8 million. The water utility's bond ratings from Fitch Ratings and Standard & Poor's is AA and AA+ respectively, meaning that debt is considered of low default risk and that the utility has a strong capacity to service its debt.  
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