Development News for Prescott, Arizona

Proposal for Supermajority Vote on Critical Water Policy Changes Discussed

The subcommittee discussed a proposal to require a supermajority vote (potentially five or six out of seven council members) for changes to specific parts of the City Code (2-1-8 C.1.A) and the water management policy, particularly regarding water service outside city limits and the formation of water improvement districts with private parties. The goal is to protect taxpayer dollars and prevent exploitation of loopholes by developers. There was also discussion about amending the city charter for a more permanent protection, but the immediate step considered is changing the policy and potentially the ordinance. Concerns were raised about the definition of 'supermajority' and the potential for future councils to overturn such changes. The discussion also touched upon the limitations of current water policy regarding water improvement districts and the need for clearer language.

Water Legislation Update: Most Bills Dead, Two Vetoed, Three Active Amidst Preemptive Policy Concerns

The subcommittee received an update on proposed water legislation impacting the city. Out of 69 tracked bills, only three remained active by April 24th, with two vetoed by the governor. NAMWA (Northern Arizona Municipal Water Users Association) opposed the two vetoed bills (Domestic Water Improvement District for hauling and water improvement program for hauling) as they did not see hauling as a sustainable solution. Of the active bills, NAMWA opposed Senate Bill 1202 (Supply and Demand Assessment Groundwater) due to lack of funding for mandated reports and House Bill 2100 (small land subdivision requirements) for creating exemptions to water requirements. A third bill, concerning groundwater transportation from rural to urban areas (McMullen Valley), remains stagnant but is being closely watched due to its potential impact on rural water rights. Overall, the update indicated minimal impactful water legislation passed this year, with concerns about preemptive policies and lack of conservation incentives.

Water Budget for 2026 Reviewed, Recommendation to Maintain 25 Acre Feet Allocation

The City Council Subcommittee on Water Issues discussed the amended 2022 water management policy and reviewed the semi-annual water budget for residential and non-residential projects for January 1st, 2026, through June 30th, 2026. The budget for both categories was set at 25 acre feet. For residential projects, 11.08 acre feet were approved for two projects (Lakeview Plaza and Embry-Riddle modular dorm), leaving 13.92 acre feet remaining. For non-residential projects, 7.56 acre feet were approved for nine administrative projects and the Prescott Plaza Hotel, leaving 17.44 acre feet remaining. The subcommittee also discussed proposed water budgets for July 2026 through December 2026, recommending to maintain the 25 acre feet budget for both residential and non-residential projects.

Long-Term Water Management Plan Progress: Phased Approach and Consultant Updates

The Subcommittee on Water Issues received a progress report on the long-term water management plan, which involves multiple consultants: Herb Dishlip Consulting (supply-demand projections), Corolla Engineering (infrastructure, stormwater), and Matrix New World (hydrology, groundwater modeling). The project is funded in part by a U.S. Bureau of Reclamation grant of $40,000, matched by the city. The plan is being executed in phases, with Phase One focusing on meeting demands without adding future water resources and investigating the aquifer within the active management area. Phase Two will explore additional water sources like Big Chino, advanced water purification, and others. Technical memos are being produced to cover supply-demand, infrastructure, groundwater modeling, and water demand management practices. Communication and public outreach were also discussed, with a consensus that communication should be more robust and proactive.