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Cave Creek panel warns of uncertain Colorado River cuts as Phoenix interconnect nears operation

Town of Cave Creek water committee · June 8, 2026
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Summary

Town staff told the Cave Creek water committee that final Bureau of Reclamation allocations remain pending and could force deep cuts, while a near‑term interconnect with Phoenix — due to be commissioned in late June–July — may ease pumping costs but will not replace the need for local planning.

Sean (staff member) told the committee the town is watching “everything we can” as the Bureau of Reclamation finishes an environmental review that presents scenarios in which lower‑basin states would face significant cuts to Colorado River supplies. He said the town has not received final allocations and described that uncertainty as “frustrating.”

The committee was told the town is pursuing multiple options to secure water. Staff emphasized two near‑term water‑exchange agreements — one with a nearby city (name in the discussion was transcribed inconsistently) that could be on that city’s council calendar in mid‑June, and another potential agreement with the City of Surprise that cannot reach that council until August. No cost or contract was finalized.

At the same time, Cave Creek is close to bringing online a new interconnect with the City of Phoenix, staff said. Sean said the project’s commissioning is expected in late June or July but that a final Phoenix readiness decision remains pending. He said the interconnect will allow Cave Creek to accept treated Phoenix water into the town system and likely improve overall pumping efficiency — but cautioned that Phoenix will charge for diverting, treating and delivering the water and that those charges will affect the town’s net savings.

Why it matters: The combination of federal allocation uncertainty and near‑term operational changes could change FY2027 budget assumptions, staffing needs and capital priorities. The town’s options range from short‑term exchanges and market purchases to longer‑term infrastructure choices such as a second Phoenix connection or rebuilding the local treatment plant.

“We’re still waiting for the Bureau of Reclamation to make their final determination of what the numbers will be next year,” Sean said, describing the EIS scenarios and the town’s strategy of keeping multiple options open.

Staff recommended public outreach: a water forum is scheduled for mid‑June to explain unknowns and next steps; ADWR declined to attend but CAP staff and town staff will present.

What’s next: Staff will report back when the Bureau’s allocation is released and said the council will receive a statutory drought‑management presentation by October tied to town code triggers for drought actions.