Five Year Strategic Plan State Budget FY 2014 - 2018 Water Infrastructure Finance Authority of Arizona Janice K. Brewer Governor Sandra L. Sutton Executive Director Henry Darwin Chairman Five Year Strategic Plan FY 2014 - 2018 Vision, Mission, Strategy ------------------------------------------------------------- 3 Annual Goals ---------------------------------------------------------------------------- 5 WIFA Teams ---------------------------------------------------------------------------- 6 FY 2014 Planning Year --------------------------------------------------------------- 7 Performance Measures FY 2015 Planning Year --------------------------------------------------------------- 8 Performance Measures FY 2016 Planning Year --------------------------------------------------------------- 9 Performance Measures FY 2017 Planning Year --------------------------------------------------------------- 10 FY 2018 Planning Year --------------------------------------------------------------- 11 Performance Measures Resource Assumptions ---------------------------------------------------------------- 12 WIFA Program Budget Organizational Chart----------------------------------- 12 2 Vision, Mission, Strategy Our Vision… To guide our resources to communities with the greatest need to maintain and enhance Arizona’s quality of life. Our Mission… To maintain and improve water quality in Arizona by providing financial and technical assistance for basic water infrastructure. Description: The Water Infrastructure Finance Authority of Arizona (WIFA) is an independent entity authorized to finance the construction, rehabilitation and/or improvement of drinking water, waste water, waste water reclamation, and other water quality facilities/projects. As a “Bond Bank”, WIFA is authorized to issue water quality bonds on behalf of communities for basic water infrastructure. Generally, WIFA offers borrowers below market interest rates on loans for 100% of eligible project costs. Our Strategic Issues… Historically low interest rates – Low investment returns impact WIFA’s interest earnings and incentivize borrowers to prepay long term (higher interest) loans. Impact of reduced funding – Reduced state funding has required the use of WIFA earnings to be used as match for federal funds, resulting in less funds available for loans. Additionally, reduced state funding to ADEQ has resulted in WIFA earnings and additional federal capitalization grant funds being transferred out to support ADEQ’s water related programs. Reduced federal funds also result in less funds available for loans. Clean water allocation – The clean water fund is capitalized by annual federal contributions. The present allocation is based on a 1977 formula that does not consider Arizona’s population growth since that date. Unfunded federal mandates – The inclusion of Davis-Bacon Fair Labor Law requirements has made WIFA less attractive to rural borrowers. Federally driven requirements to provide up to 30% of the annual capitalization grants directly results in a 30% decrease in the amount of funds that enter and remain in the state revolving fund. Arizona economy – The recovery is improving and we have seen an increase in the number of projects. 3 4 Our Strategy…  Award WIFA’s resources in accordance with the needs of Arizona’s Citizens.  Maintain the fiscal integrity of WIFA’s funds and assure continuous enhancement for future generations.  Effectively and efficiently deliver financial and technical assistance.  Coordinate with other funding sources, technical resources, regulatory authorities, and private sector legal and financial counterparts. 5 Annual Goals FY 2014 – FY 2018 Goal 1. Award WIFA’s resources in accordance with the needs of Arizona’s Citizens. A. Encourage projects that resolve or prevent a public health or environmental problem. B. Work towards implementation of EPA’s four pillars of sustainable infrastructure. C. Encourage projects that promote sustainable infrastructure such as water reuse and conservation, energy efficiency, and other green practices. D. Encourage the consolidation and regionalization of water and wastewater systems. E. Actively document Clean Water and Safe Drinking Water Infrastructure needs. F. Finance infrastructure technology consistent with end use, location, local fiscal capacity and the technical capability of system operators. Goal 2: Maintain the fiscal integrity of WIFA’s funds and assure continuous enhancement for future generations. A. Maintain WIFA’s AAA credit ratings. B. Aggressively pursue federal funding to ensure Arizona obtains its maximum share of federal allocations. C. Work to maximize the amount and duration of funds invested to maximize earnings. D. Balance needs of low credit, high priority borrowers with high credit, low priority borrowers. E. Conduct annual loan reviews. F. Ensure all financial and bond reporting requirements are met in a timely manner. Goal 3: Effectively and efficiently deliver financial and technical assistance. A. Maximize the benefits of WIFA’s integrated information technology and enhance web-based automated applications. B. Assist communities with the completion of the Project Finance Application at their place of business. C. Facilitate public understanding of financial and technical assistance options so that communities are empowered to make good infrastructure financing decisions. D. Stimulate financial and technical assistance demand through continuous outreach efforts. Goal 4: Coordinate with other funding sources, technical assistance resources, regulatory authorities, and private sector legal and financial counterparts. A. Coordinate through the Rural Water Infrastructure Committee (RWIC) to maximize the amount of financial resources available to Arizona communities. B. Coordinate with regulatory authorities to align water infrastructure funding with identified needs. C. Identify opportunities to participate in public-private partnerships. 6 WIFA TEAMS FINANCIAL SERVICES & OPERATIONS Chief Financial Officer Environmental & Technical Services Team Administrative Services Team Loan Origination Team Information Systems Team EXECUTIVE TEAM Executive Director Chief Financial Officer Controller FISCAL & LOAN SERVICING Controller Accounting & Servicing Team PUBLIC AFFAIRS & OUTREACH Marketing Team 7 Performance Measures FY 2014 Performance Measures - Required Annually (Due August) # Activity or Performance Related Measure Goal Reporting Team Frequency Responsible Notes/Target 1 Number of recipients moving from non-compliance to compliance. Goal 1 Annually Environmental 2 Percent of total available funds invested. Average number of weeks to process a loan. Goal 2 Annually Accounting Number of projects that have corrected or prevented public health or environmental problems. Target = 95% Goal 3 Annually Environmental Loan Origination Number of co-financings. Goal 4 Annually Environmental 3 4 Performance Measures for Greater Arizona Development Authority # Activity or Performance Related Reporting Team Measure Goal Frequency Responsible Amount of financial assistance Goal 1 Annually Environmental 1 Number of days from Board action to circulate draft loan documents. Co-financing including local and private contributions. Notes Measured by the number of (in millions) loaned to cities, drinking water construction towns, counties, and special jobs created and/or retained. districts. Amount of savings (in millions) Goal 1 Annually Environmental Measured by the number of 2 for cities, towns, counties, clean water construction tribes, and special districts from jobs created and/or retained. participation in the GADA program over private financing. GADA Fund has experienced budget sweeps and is close to an inability to pursue bonding currently. GADA Goal 1 To increase development of public infrastructure projects. 8 Performance Measures FY 2015 Performance Measures - Required Annually (Due August) # Activity or Performance Related Measure Goal Reporting Team Frequency Responsible Notes/Target 1 Number of recipients moving from non-compliance to compliance. Goal 1 Annually Environmental 2 Percent of total available funds invested. Average number of weeks to process a loan. Goal 1 Annually Accounting Number of projects that have corrected or prevented public health or environmental problems. Target = 95% Goal 3 Annually Environmental Loan Origination Number of co-financings. Goal 4 Annually Environmental 3 4 Performance Measures for Greater Arizona Development Authority # Activity or Performance Related Reporting Team Measure Goal Frequency Responsible Amount of financial assistance Goal 1 Annually Environmental 1 Number of days from Board action to circulate draft loan documents. Co-financing including local and private contributions. Notes Measured by the number of (in millions) loaned to cities, drinking water construction towns, counties, and special jobs created and/or retained. districts. Amount of savings (in millions) Goal 1 Annually Environmental Measured by the number of 2 for cities, towns, counties, clean water construction tribes, and special districts from jobs created and/or retained. participation in the GADA program over private financing. GADA Fund has experienced budget sweeps and is close to an inability to pursue bonding currently. GADA Goal 1 To increase development of public infrastructure projects. 9 Performance Measures FY 2016 Performance Measures - Required Annually (Due August) Performance Measures for WIFA # Activity or Performance Related Measure Goal Number of recipients moving Goal 1 1 Reporting Team Frequency Responsible Notes/Target Annually Environmental Number of projects that have corrected or prevented public health or environmental problems. Target = 95% from non-compliance to compliance. 2 3 4 Percent of total available funds invested. Average number of weeks to process a loan. Goal 1 Annually Accounting Goal 3 Annually Environmental Loan Origination Number of co-financings. Goal 4 Annually Environmental Performance Measures for Greater Arizona Development Authority # Activity or Performance Related Reporting Team Measure Goal Frequency Responsible Amount of financial assistance Goal 1 Annually Environmental 1 Number of days from Board action to circulate draft loan documents. Co-financing including local and private contributions. Notes Measured by the number of (in millions) loaned to cities, drinking water construction towns, counties, and special jobs created and/or retained. districts. Amount of savings (in millions) Goal 1 Annually Environmental Measured by the number of 2 for cities, towns, counties, clean water construction tribes, and special districts from jobs created and/or retained. participation in the GADA program over private financing. GADA Fund has experienced budget sweeps and is close to an inability to pursue bonding currently. GADA Goal 1 To increase development of public infrastructure projects. 10 Annual Performance Measures FY 2017 Performance Measures - Required Annually for JLBC (Due August) Performance Measures for WIFA # Activity or Performance Related Measure Goal Number of recipients moving Goal 1 1 Reporting Team Frequency Responsible Notes/Target Annually Environmental Number of projects that have corrected or prevented public health or environmental problems. Target = 95% from non-compliance to compliance. 2 3 4 Percent of total available funds invested. Average number of weeks to process a loan. Goal 1 Annually Accounting Goal 3 Annually Environmental Loan Origination Number of co-financings. Goal 4 Annually Environmental Performance Measures for Greater Arizona Development Authority # Activity or Performance Related Reporting Team Measure Goal Frequency Responsible Amount of financial assistance Goal 1 Annually Environmental 1 Number of days from Board action to circulate draft loan documents. Co-financing including local and private contributions. Notes . (in millions) loaned to cities, towns, counties, and special districts. Amount of savings (in millions) Goal 1 Annually Environmental 2 for cities, towns, counties, tribes, and special districts from participation in the GADA program over private financing. GADA Fund has experienced budget sweeps and is close to an inability to pursue bonding currently. GADA Goal 1-To increase development of public infrastructure projects. 11 Performance Measures FY 2018 Performance Measures - Required Annually (Due August) Performance Measures for WIFA # Activity or Performance Related Measure Goal Number of recipients moving Goal 1 1 Reporting Team Frequency Responsible Notes/Target Annually Environmental Number of projects that have corrected or prevented public health or environmental problems. from non-compliance to compliance. 2 3 4 Percent of total available funds invested. Average number of weeks to process a loan. Goal 1 Annually Accounting Goal 3 Annually Environmental Loan Origination Number of co-financings. Goal 4 Annually Environmental Performance Measures for Greater Arizona Development Authority # Activity or Performance Related Reporting Team Measure Goal Frequency Responsible Amount of financial assistance Goal 1 Annually Environmental 1 Number of days from Board action to circulate draft loan documents. Co-financing including local and private contributions. Notes Measured by the number of (in millions) loaned to cities, drinking water construction towns, counties, and special jobs created and/or retained. districts. Amount of savings (in millions) Goal 1 Annually Environmental Measured by the number of 2 for cities, towns, counties, clean water construction tribes, and special districts from jobs created and/or retained. participation in the GADA program over private financing. GADA Fund has experienced budget sweeps and is close to an inability to pursue bonding currently. GADA Goal 1 To increase development of public infrastructure projects. 12 Resource Assumptions (Agency Level) FY 2013 Appropriation Full-time-equivalent (FTE) Positions General Fund Other Appropriated Funds Non-Appropriated Funds Federal Funds Total Agency Funds FY 2014 Budget Request FY 2015 Budget Request or Estimate FY 2016 Estimate FY 2017 Estimate FY 2018 Estimate 18 18 18 18 18 18 112,901.4 167,431.9 107,478.5 110,000.0 110,000.0 110,000.0 50,891.8 163,793.2 43,246.2 210,678.1 27,000.0 134,478.6 25,000.0 135,000.0 25,000.0 135,000.0 25,000.0 135,000.00 Water Infrastructure Finance Authority of Arizona Fiscal Year 2013 Program Budget Organizational Chart 13