1. Arizona Water Banking Authority December 19, 2012

2. 2012 Activities Normal Operating Conditions Lower Basin Uses California – 4.4 million acre-feet (MAF) Nevada – 0.24 MAF Arizona – 2.8 MAF On-River – 1.2 MAF Central Arizona Project 1.6 MAF

3. 2012 Plan of Operation Planned Water Deliveries – 120,002 AF Projected End of Year Deliveries - 135,841 AF Phoenix Active Management Area (AMA) – 80,831 AF Pinal AMA – 21,010 AF Tucson AMA – 34,000 AF No Interstate storage Southside Replenishment Bank – 1,000 AF

4. 2012 Water Deliveries (AF) Recharge SitesPermitted Capacity (AF)Delivery Amount Phoenix AMA Tonopah Desert150,00046,815 Superstition Mtns25,0002,386 New Magma IDD54,00026,400 Queen Creek ID28,0007,230 Pinal AMA Central Arizona IDD110,0008,670 Hohokam IDD55,0003,670 Maricopa-Stanfield IDD120,0008,670 Tucson AMA Avra Valley11,0001,000 SAVSARP60,00015,000 Pima Mine Road30,000600 Lower Santa Cruz50,00011,010 BKW Farms14,316200 Cortaro-Marana ID20,0004,339 Kai Farms-Red Rock11,2311,851 TOTAL DELIVERIES135,851

5. AWBA Long-term Storage Credits 1997-2012 (Acre-Feet) Funding SourcePhoenix AMAPinal AMATucson AMA Withdrawal Fees290,382393,63298,086 4-Cent Tax1,333,628188,867389,918 General Fund42,316306,96854,546 Other: Indian Firming Appropriation--28,481 Shortage Reparation20,64260,5071,227 Pinal Redirect (GSF operators paid 100% of cost) -14,125- Interstate - Nevada 51,009439,851109,791 TOTAL 1,740,0141,403,950682,050 5 * Long-term storage credits estimated for 2012

6. AZ Water Settlements Act Requirement Southside Replenishment Activities 2012 Deliveries (AF) Cumulative Deliveries (AF) Replenishment Obligations00 Replenishment Bank1,0004,000 TOTAL DIRECT DELIVERIES1,0004,000 AWBA Required to Deliver 15,000 AF to Gila River Indian Community to Establish Southside Replenishment Bank Requires Minimum Delivery of 1,000 AF per Year Can Be Used to Offset a Replenishment Obligation

7. Public Review and Comment Groundwater Users Advisory Council Meetings Phoenix AMA Asked for clarification on use of 4¢ ad valorem tax Pinal AMA Made request for additional water if additional funding and water become available Tucson AMA Asked for reconsideration of historic practice scheduling deliveries for direct use (GSF) before USFs Requested storage locations be prioritized on meeting goals

8. 2013 Plan of Operation Three Main Components to Consider Water Availability Funding Storage Facility Capacity

9. Water Availability 2013 Colorado River Lower Basin State Diversions Normal Operating Conditions – 2.8 MAF Central Arizona Project – 1.6 MAF (available for delivery 1.54 MAF) On-River – 1.2 MAF CAWCD Policy for Distributing Excess CAP Water 175,ooo AF AWBA/CAGRD Replenishment Reserve Pool Increased higher priority uses (M&I subcontract, Indian contract, & CAGRD) resulted in reduction to pool 61,371 AF available to pool in 2013 AWBA share of reduced pool – 52,546 AF

10. Funding Sources Withdrawal Fees Collected in Phoenix, Pinal and Tucson AMAs 4-Cent Ad valorem Tax Levied by CAWCD in Maricopa, Pinal, and Pima Counties Retained in CAWCD fund accounts since 2003 Utilized by CAWCD to offset AWBA water storage and delivery costs as part of project operating & maintenance costs General Fund Appropriations Other Funds Pursuant to Contractual Agreements Shortage Reparation – Arizona/Nevada Shortage Sharing Interstate Water Banking

11. Storage Facility Capacity Meetings with Storage Facility Operators to Discuss Storage Opportunities Significant Interest in Providing Storage Capacity Sufficient Storage Capacity Available if Additional Water Becomes Available

12. 2013 Water Delivery Schedule (AF) Recharge SitesPermitted Capacity (AF)Delivery Amount Phoenix AMA USFTonopah Desert150,0006,030 Superstition Mtns25,0001,702 GSFQueen Creek ID28,0007,230 Subtotal14,962 Pinal AMA GSFCentral Arizona IDD110,0006,600 Hohokam IDD55,0006,600 Maricopa-Stanfield IDD120,0006,600 Subtotal19,800 Tucson AMA USFAvra Valley11,000883 SAVSARP60,00011,901 Pima Mine Road30,0004,000 Subtotal16,784 Direct Delivery – Southside Replenishment Bank1,000 TOTAL DELIVERIES52,546

13. 2013 Water and Facility Rates RechargeCost/AF CAWCD delivery rate to AWBA for water storage$144 Groundwater Savings Facility operator cost share rate Phoenix and Pinal AMAs$34 Tucson AMA$16 Underground Storage Facility rate paid by AWBA CAWCD - Phoenix Facilities$8 CAWCD - Tucson Facilities$15 Avra Valley Recharge Project$15 Tucson Water Clearwater Facilities$15.63 Direct Deliveries CAWCD rate to AWBA for Southside Replenishment Bank Deliveries$144

14. Funding for 2013 Annual Plan of Operation

15. AWBA Goals and Obligations Firm existing CAP M&I Priority subcontracts during shortages or outages Firm Fourth Priority Colorado River Water users during shortages Assist in meeting the water management objectives of the Groundwater Code Meet State Indian Settlement obligations Meet contractual obligations for Interstate Banking

16. Projected Goals/Obligations Achieved through 2013 ObjectiveGoal/ObligationCredits Accrued (AF)% Achieved M&I Firming: Maricopa County1,566,000 AF1,340,26686 Pinal County243,000 AF200,55183 Pima County864,000 AF393,86646 (w/fees 57 %) On-River Firming420,000 AF403,83096 Groundwater Mgmt: Phoenix AMA-299,546 Pinal AMA-400,164 Tucson AMA-94,884 Indian Settlements: GRIC Firming15,000 AF/Yr (Est. 350,000 AF)0 Future Settlements8,724 AF/Yr (Est. 200,000 AF)0 Federal AssistanceContribute $3,000,00034,102100 Southside Repl. Bank15,000 AF5,000 (Non-recharge)33 Interstate - Nevada1,250,000 AF600,65148 Shortage ReparationExpend $8,000,00091,45056 Pinal Redirect Credits-14,125n/a