Water Infrastructure Finance Authority WIFA is Arizona’s water and wastewater Five Year Strategic Plan funding source. WIFA is dedicated to maintaining and improving water quality for all Arizonans, by providing financial and technical assistance for water infrastructure. Through lowinterest loans and subsidies, WIFA is able to save its customers a significant amount of money. Utilizing water and wastewater state revolving funds, WIFA offers loans and grants for drinking water and wastewater projects designed to ensure safe, reliable drinking water and proper wastewater treatment. Over the last 25 years, WIFA has invested over $2 billion in Arizona’s communities. WIFA offers loans and grants for drinking water and wastewater projects FY 2016 - 2020 WIFA’s Leadership Douglas A. Ducey Governor Sandra L. Sutton Executive Director Misael Cabrera Chairman Plan updated August 20, 2015 Five Year Strategic Plan FY 2016 - 2020 Contents Vision, Mission, Strategy ....................................................................................................................... 3 Our Vision… ....................................................................................................................................... 3 Our Mission… .................................................................................................................................... 3 Our Strategic Issues… ........................................................................................................................ 3 Our Goals…........................................................................................................................................ 4 Our Teams… ...................................................................................................................................... 4 Goals & Performance Measures FY 2016............................................................................................ 5 Goals & Performance Measures FY 2017............................................................................................ 5 Goals & Performance Measures FY 2018............................................................................................ 5 Goals & Performance Measures FY 2019............................................................................................ 5 Goals & Performance Measures FY 2020............................................................................................ 5 Resource Assumptions FY 2016 - 2020 .............................................................................................. 5 Board Actions ........................................................................................................................................ 5 Reports & Other Deadlines ................................................................................................................... 5 Major Events & Activities ...................................................................................................................... 5 2|Page 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. Our Strategic Issues… • Managing priorities through changing interest rates - Because WIFA operates like a bond bank, low interest rates affect WIFA in two ways. Low interest rates result in low investment returns and reduced loan interest income, decreasing the income to Arizona’s state revolving fund. WIFA sets loan interest rates for borrowers based on current interest rates. However, WIFA’s bond debt is tied to fixed interest rates based on the date of the bond sale. Historically the bond debt rates are higher than the current low interest rates. • Clean water allocation - The Clean Water Revolving 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. In May 2014 Congress amended Section 601(A) of the Federal Water Pollution Control Act (Title VI State Water Pollution Control Revolving Funds). Section 5005, Report on the Allotment of Funds, reads, in part, “The Administrator of the Environmental Protection Agency shall conduct a review of the allotment formula in effect on the date of enactment of this Act for allocation of funds authorized under title VI of the Federal Water Pollution Control Act to determine whether that formula adequately addresses the water quality needs of eligible States, territories and Indian Tribes…” EPA is required not later than 18 months after that date of enactment of the Act (October 1, 2015) to submit a report to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. 3|Page • The Impact of Arizona’s economy on WIFA - Arizona’s economy is affecting WIFA in that fewer organizations are pursuing loans. The economy is improving and WIFA is expecting an increase in the number of projects. Our Goals… • 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. • Market agency programs and advocate the importance of safe, reliable water through presentations, networking and outreach. Our 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 4|Page Goals & Performance Measures FY 2016 Goal 1: Award WIFA’s resources in accordance with the needs of Arizona’s citizens. Strategies: • Encourage projects that resolve or prevent public health or environmental problems. • Encourage projects that promote sustainable infrastructure such as water reuse and conservation, energy efficiency, green stormwater infrastructure and other environmentally innovative green practices. • Document Arizona’s Clean Water and Drinking Water infrastructure needs. • Finance infrastructure projects for systems that demonstrate technical, managerial, financial and legal capacity. Performance Measure: Number of projects that have corrected or prevented public health or environmental problems (including projects which address non-compliance and maintenance of compliance). Target: Two projects Goal 2: Maintain the fiscal integrity of WIFA’s funds and assure continuous enhancement for future generations. Strategies: • Maintain WIFA’s AAA credit ratings. • Work to maximize the amount and duration of funds invested to maximize earnings. • Maintain a diverse portfolio of borrowers by balancing the needs of low-credit borrowers with high-credit borrowers. • Conduct annual loan reviews. • Ensure all financial and bond reporting requirements are met in a timely manner. Performance Measure: Percentage of total available funds invested. Target: 95% 5|Page Goal 3: Effectively and efficiently deliver financial and technical assistance. Strategies: • Maximize the benefits of WIFA’s information technology and web-based automated application system. • Ensure continuous process improvement and streamlined procedures at all levels with both staff and customers. • Maintain the flexibility to adjust goals in response to changing market conditions and legislative action. • Maintain policies and procedures to guide agency staff in the performance of their job duties. • Facilitate and encourage Board of Directors involvement in WIFA Performance Measures: 1. Average number of days for WIFA to process a disbursement request. Target: 14 days 2. Number of weeks from Board action to circulate draft loan documents. Target: 1.5 weeks Goal 4: Market agency programs and advocate the importance of safe, reliable water through presentations, networking and outreach. Strategies: • Collaborate with other funding sources, technical assistance resources, regulatory authorities, and private sector legal and financial counterparts. • Coordinate the Rural Water Infrastructure Committee (RWIC) to maximize the amount of financial resources available to Arizona communities. • Coordinate with regulatory authorities to align water infrastructure funding with identified needs. • Identify opportunities to participate in public-private partnerships. • Stimulate financial and technical assistance demand through continuous outreach efforts. Performance Measures: 1. Number of RWIC meetings attended or coordinated per year. Target: Two meetings 2. Number of conferences/outreach events attended/presented at per year. Target: Four events 6|Page GADA Goal 1: Increase development of public infrastructure projects. Performance Measures: 1. Amount of financial assistance (in millions) loaned to cities, towns, counties, and special districts. Target: 0* 2. Amount of savings (in millions) for cities, towns, counties, tribes, and special districts from participation in the GADA program over private financing. Target: 0* * GADA has not had any appropriations for the last several years. 7|Page Annual & Performance Measures GoalsGoals & Performance Measures FY 2017 FY 2017 Goal 1: Award WIFA’s resources in accordance with the needs of Arizona’s citizens. Strategies: • Encourage projects that resolve or prevent public health or environmental problems. • Encourage projects that promote sustainable infrastructure such as water reuse and conservation, energy efficiency, green stormwater infrastructure and other environmentally innovative green practices. • Document Arizona’s Clean Water and Drinking Water infrastructure needs. • Finance infrastructure projects for systems that demonstrate technical, managerial, financial and legal capacity. Performance Measure: Number of projects that have corrected or prevented public health or environmental problems (including projects which address non-compliance and maintenance of compliance). Target: Two projects Goal 2: Maintain the fiscal integrity of WIFA’s funds and assure continuous enhancement for future generations. Strategies: • Maintain WIFA’s AAA credit ratings. • Work to maximize the amount and duration of funds invested to maximize earnings. • Maintain a diverse portfolio of borrowers by balancing the needs of low-credit borrowers with high-credit borrowers. • Conduct annual loan reviews. • Ensure all financial and bond reporting requirements are met in a timely manner. Performance Measure: Percentage of total available funds invested. Target: 95% 8|Page Goal 3: Effectively and efficiently deliver financial and technical assistance. Strategies: • Maximize the benefits of WIFA’s information technology and web-based automated application system. • Ensure continuous process improvement and streamlined procedures at all levels with both staff and customers. • Maintain the flexibility to adjust goals in response to changing market conditions and legislative action. • Maintain policies and procedures to guide agency staff in the performance of their job duties. • Facilitate and encourage Board of Directors involvement in WIFA Performance Measures: 1. Average number of days for WIFA to process a disbursement request. Target: 14 days 2. Number of weeks from Board action to circulate draft loan documents. Target: 1.5 weeks Goal 4: Market agency programs and advocate the importance of safe, reliable water through presentations, networking and outreach. Strategies: • Collaborate with other funding sources, technical assistance resources, regulatory authorities, and private sector legal and financial counterparts. • Coordinate the Rural Water Infrastructure Committee (RWIC) to maximize the amount of financial resources available to Arizona communities. • Coordinate with regulatory authorities to align water infrastructure funding with identified needs. • Identify opportunities to participate in public-private partnerships. • Stimulate financial and technical assistance demand through continuous outreach efforts. Performance Measures: 1. Number of RWIC meetings attended or coordinated per year. Target: Two meetings 2. Number of conferences/outreach events attended/presented at per year. Target: Four events 9|Page GADA Goal 1: Increase development of public infrastructure projects. Performance Measures: 1. Amount of financial assistance (in millions) loaned to cities, towns, counties, and special districts. Target: 0* 2. Amount of savings (in millions) for cities, towns, counties, tribes, and special districts from participation in the GADA program over private financing. Target: 0* * GADA has not had any appropriations for the last several years. 10 | P a g e Goals & Performance Measures FY 2018 Goal 1: Award WIFA’s resources in accordance with the needs of Arizona’s citizens. Strategies: • Encourage projects that resolve or prevent public health or environmental problems. • Encourage projects that promote sustainable infrastructure such as water reuse and conservation, energy efficiency, green stormwater infrastructure and other environmentally innovative green practices. • Document Arizona’s Clean Water and Drinking Water infrastructure needs. • Finance infrastructure projects for systems that demonstrate technical, managerial, financial and legal capacity. Performance Measure: Number of projects that have corrected or prevented public health or environmental problems (including projects which address non-compliance and maintenance of compliance). Target: Two projects Goal 2: Maintain the fiscal integrity of WIFA’s funds and assure continuous enhancement for future generations. Strategies: • Maintain WIFA’s AAA credit ratings. • Work to maximize the amount and duration of funds invested to maximize earnings. • Maintain a diverse portfolio of borrowers by balancing the needs of low-credit borrowers with high-credit borrowers. • Conduct annual loan reviews. • Ensure all financial and bond reporting requirements are met in a timely manner. Performance Measure: Percentage of total available funds invested. Target: 95% 11 | P a g e Goal 3: Effectively and efficiently deliver financial and technical assistance. Strategies: • Maximize the benefits of WIFA’s information technology and web-based automated application system. • Ensure continuous process improvement and streamlined procedures at all levels with both staff and customers. • Maintain the flexibility to adjust goals in response to changing market conditions and legislative action. • Maintain policies and procedures to guide agency staff in the performance of their job duties. • Facilitate and encourage Board of Directors involvement in WIFA Performance Measures: 1. Average number of days for WIFA to process a disbursement request. Target: 14 days 2. Number of weeks from Board action to circulate draft loan documents. Target: 1.5 weeks Goal 4: Market agency programs and advocate the importance of safe, reliable water through presentations, networking and outreach. Strategies: • Collaborate with other funding sources, technical assistance resources, regulatory authorities, and private sector legal and financial counterparts. • Coordinate the Rural Water Infrastructure Committee (RWIC) to maximize the amount of financial resources available to Arizona communities. • Coordinate with regulatory authorities to align water infrastructure funding with identified needs. • Identify opportunities to participate in public-private partnerships. • Stimulate financial and technical assistance demand through continuous outreach efforts. Performance Measures: 1. Number of RWIC meetings attended or coordinated per year. Target: Two meetings 2. Number of conferences/outreach events attended/presented at per year. Target: Four events 12 | P a g e GADA Goal 1: Increase development of public infrastructure projects. Performance Measures: 1. Amount of financial assistance (in millions) loaned to cities, towns, counties, and special districts. Target: 0* 2. Amount of savings (in millions) for cities, towns, counties, tribes, and special districts from participation in the GADA program over private financing. Target: 0* * GADA has not had any appropriations for the last several years. 13 | P a g e Goals & Performance Measures FY 2019 Goal 1: Award WIFA’s resources in accordance with the needs of Arizona’s citizens. Strategies: • Encourage projects that resolve or prevent public health or environmental problems. • Encourage projects that promote sustainable infrastructure such as water reuse and conservation, energy efficiency, green stormwater infrastructure and other environmentally innovative green practices. • Document Arizona’s Clean Water and Drinking Water infrastructure needs. • Finance infrastructure projects for systems that demonstrate technical, managerial, financial and legal capacity. Performance Measure: Number of projects that have corrected or prevented public health or environmental problems (including projects which address non-compliance and maintenance of compliance). Target: Two projects Goal 2: Maintain the fiscal integrity of WIFA’s funds and assure continuous enhancement for future generations. Strategies: • Maintain WIFA’s AAA credit ratings. • Work to maximize the amount and duration of funds invested to maximize earnings. • Maintain a diverse portfolio of borrowers by balancing the needs of low-credit borrowers with high-credit borrowers. • Conduct annual loan reviews. • Ensure all financial and bond reporting requirements are met in a timely manner. Performance Measure: Percentage of total available funds invested. Target: 95% 14 | P a g e Goal 3: Effectively and efficiently deliver financial and technical assistance. Strategies: • Maximize the benefits of WIFA’s information technology and web-based automated application system. • Ensure continuous process improvement and streamlined procedures at all levels with both staff and customers. • Maintain the flexibility to adjust goals in response to changing market conditions and legislative action. • Maintain policies and procedures to guide agency staff in the performance of their job duties. • Facilitate and encourage Board of Directors involvement in WIFA Performance Measures: 1. Average number of days for WIFA to process a disbursement request. Target: 14 days 2. Number of weeks from Board action to circulate draft loan documents. Target: 1.5 weeks Goal 4: Market agency programs and advocate the importance of safe, reliable water through presentations, networking and outreach. Strategies: • Collaborate with other funding sources, technical assistance resources, regulatory authorities, and private sector legal and financial counterparts. • Coordinate the Rural Water Infrastructure Committee (RWIC) to maximize the amount of financial resources available to Arizona communities. • Coordinate with regulatory authorities to align water infrastructure funding with identified needs. • Identify opportunities to participate in public-private partnerships. • Stimulate financial and technical assistance demand through continuous outreach efforts. Performance Measures: 1. Number of RWIC meetings attended or coordinated per year. Target: Two meetings 2. Number of conferences/outreach events attended/presented at per year. Target: Four events 15 | P a g e GADA Goal 1: Increase development of public infrastructure projects. Performance Measures: 1. Amount of financial assistance (in millions) loaned to cities, towns, counties, and special districts. Target: 0* 2. Amount of savings (in millions) for cities, towns, counties, tribes, and special districts from participation in the GADA program over private financing. Target: 0* * GADA has not had any appropriations for the last several years. 16 | P a g e Goals & Performance Measures FY 2020 Goal 1: Award WIFA’s resources in accordance with the needs of Arizona’s citizens. Strategies: • Encourage projects that resolve or prevent public health or environmental problems. • Encourage projects that promote sustainable infrastructure such as water reuse and conservation, energy efficiency, green stormwater infrastructure and other environmentally innovative green practices. • Document Arizona’s Clean Water and Drinking Water infrastructure needs. • Finance infrastructure projects for systems that demonstrate technical, managerial, financial and legal capacity. Performance Measure: Number of projects that have corrected or prevented public health or environmental problems (including projects which address non-compliance and maintenance of compliance). Target: Two projects Goal 2: Maintain the fiscal integrity of WIFA’s funds and assure continuous enhancement for future generations. Strategies: • Maintain WIFA’s AAA credit ratings. • Work to maximize the amount and duration of funds invested to maximize earnings. • Maintain a diverse portfolio of borrowers by balancing the needs of low-credit borrowers with high-credit borrowers. • Conduct annual loan reviews. • Ensure all financial and bond reporting requirements are met in a timely manner. Performance Measure: Percentage of total available funds invested. Target: 95% 17 | P a g e Goal 3: Effectively and efficiently deliver financial and technical assistance. Strategies: • Maximize the benefits of WIFA’s information technology and web-based automated application system. • Ensure continuous process improvement and streamlined procedures at all levels with both staff and customers. • Maintain the flexibility to adjust goals in response to changing market conditions and legislative action. • Maintain policies and procedures to guide agency staff in the performance of their job duties. • Facilitate and encourage Board of Directors involvement in WIFA Performance Measures: 1. Average number of days for WIFA to process a disbursement request. Target: 14 days 2. Number of weeks from Board action to circulate draft loan documents. Target: 1.5 weeks Goal 4: Market agency programs and advocate the importance of safe, reliable water through presentations, networking and outreach. Strategies: • Collaborate with other funding sources, technical assistance resources, regulatory authorities, and private sector legal and financial counterparts. • Coordinate the Rural Water Infrastructure Committee (RWIC) to maximize the amount of financial resources available to Arizona communities. • Coordinate with regulatory authorities to align water infrastructure funding with identified needs. • Identify opportunities to participate in public-private partnerships. • Stimulate financial and technical assistance demand through continuous outreach efforts. Performance Measures: 1. Number of RWIC meetings attended or coordinated per year. Target: Two meetings 2. Number of conferences/outreach events attended/presented at per year. Target: Four events 18 | P a g e GADA Goal 1: Increase development of public infrastructure projects. Performance Measures: 1. Amount of financial assistance (in millions) loaned to cities, towns, counties, and special districts. Target: 0* 2. Amount of savings (in millions) for cities, towns, counties, tribes, and special districts from participation in the GADA program over private financing. Target: 0* * GADA has not had any appropriations for the last several years. 19 | P a g e Resource Assumptions FY 2016 - 2020 FY 2016 - 2020 FY 2015 Appropriation Full-timeequivalent (FTE) Positions General Fund Other Appropriated Funds NonAppropriated Funds Federal Funds Total Agency Funds Resource Assumptions (Agency Level) FY 2016 Budget Request FY 2017 Budget Request or Estimate FY 2018 Estimate FY 2019 Estimate FY 2020 Estimate 19 19 19 19 19 19 116,135.8 97,528.4 109,357.5 187,559.7 101,487.8 101,562.7 36,280.9 31,539.6 31,539.6 31,539.6 31,539.6 31,539.6 152,416.7 129,068.0 140,897.1 219,099.3 133,027.4 133,102.3 Water Infrastructure Finance Authority of Arizona Fiscal Year 2016 Program Budget Organizational Chart Clean Water State Revolving Fund 20 | P a g e WIFA Drinking Water State Revolving Fund Greater Arizona Developement Authority Board Actions Board Actions [Note that the WIFA Board of Directors meets bi-monthly.] August October December February April June 21 | P a g e Board • Loans and Commitment Balance and Operating Budget Reports are presented • Loans and Commitment Balance and Operating Budget Reports are presented • Legislative proposals for future legislative cycle • TA Presentation to the Board • Audited Financial Statements provided • Loans and Commitment Balance and Operating Budget Reports are presented • Comment on WIFA Annual Report to Governor • Select WIFA Projects of the Year • Provide annual loan portfolio overview • Loans and Commitment Balance and Operating Budget Reports are presented • Elect a Vice-Chairman (WIFA Policy I.6) • Select Committee Assignments (WIFA Procedure I.6.3) • Adopt Annual Operating Budget • Board terminates DW & CW IUPs and PPLs for previous funding cycle • Adopt next funding cycle DW & CW IUPs and PPLs Reports & Other Deadlines Reports & Other Deadlines Month July August September October December January March April May 22 | P a g e Reports & Actions • • • • • • • • • • • • • • DW and CW IUPs due DBE Reports due quarterly (April – June) Open TA Applications Initiate Annual Loan Portfolio Review for private water companies National Information Management System (NIMS) GADA Bond Arbitrage Annual Report WIFA and GADA Annual Report to JLBC by September 1 WIFA and GADA -Submit budget to Governor’s Office by September 1 Compensation Plan Report due to ADOA by September 1 EPA Annual Report due September 30 Complete Financial Audit by September 30 Department of Revenue Debt Report Federal Financial Status Reports (by Grant) IT Strategic planning reports due to ASET (online): Planning Application for Reporting IT Strategy (PARIS), Technology Infrastructure and Standards Assessment (TISA), Information Services Inventory Status (ISIS) • DBE Reports due quarterly (July – September) • • • • • • • • • • • EPA Annual Review WIFA and GADA Annual Report to Governor due December 31 Allocate borrower debt service reserve earnings to principal outstanding Equal Employment Opportunity Report due to Governor’s Office December 30 DBE Reports due quarterly (October-December) Federal Cash Transactions Report (by ACH) Annual (Jan-Dec) Pay for Performance Annual Report due WIFA Bond Arbitrage Annual Report DBE Reports due quarterly (January – March) Initiate Annual Loan Portfolio Review for political subdivisions Deadline for DW & CW PPL applications to request project carryover from last funding cycle to next funding cycle Major Events & Activities Major Events & Activities [Note that this is a working document.] DATE Weekly Bi-weekly Monthly March April ACTIVITY Project Status Tracking Meeting Technical Team Meeting Multi-Agency Tribal Infrastructure Collaborative (MATIC) WIFA Board Meeting Update Communications Plan Request for Grant Applications Arizona City Managers Association Annual Money & More: Tribal Resources Forum GFOAz Winter Conference Project of the Year Awards Water Resources Research Center Annual Conference Rural Water Association of Arizona Annual Leadership Conference RWIC Executive Committee Meeting & Project Meetings American Water Works Association Utility Management Conference ($$$) Kachina News Article Water Awareness Month May Drinking Water Week May May May June June July CIFA Federal Policy Conference Arizona Water Association Conference Navajo Nation Drinking Water Conference GFOAz Annual Conference (national) WESTCAS (Western Coalition of Arid States) Annual Conference (San Diego) Water Reuse Conference July Aug. Request for Grant Applications League Annual Conference Aug. Aug. American Public Works Association AZ Rural Development Council - Rural Policy Bi-monthly Jan. Jan. Feb. Feb. Feb. Feb. March March March March 23 | P a g e AUDIENCE WIFA’s internal staff WIFA’s technical team MATIC members WIFA Board, internal staff, borrowers, public WIFA’s internal staff Media & listservs City Managers Native American leaders & community members Government finance professionals Past borrowers, WIFA board, public Water policy and management professionals, public DW & WW professionals, potential borrowers DW & WW professionals, potential borrowers Utility management professionals Arizona Water Association members Conservation partners & Arizona homeowners National water professionals and communities Infrastructure financing professionals Water professionals, public Potential borrowers & community members Government finance professionals DW, WW and reclaimed water service providers State and local government, manager, operators Media & listservs Local government leaders, potential borrowers Consultants and suppliers Rural stakeholders, businesses, nonprofits DATE Aug. Aug. Sept. Sept. Sept. Oct. Nov. Nov. Nov. – Dec. Dec. 24 | P a g e ACTIVITY Forum GFOAz Summer Training Rural Water Association of Arizona Annual Conference Arizona Hydrological Society Annual Symposium Kachina News Article EPA Annual Report WESTCAS (Western Coalition of Arid States) Annual Conference (San Diego) CIFA SRF National Workshop RWIC Executive Committee Meeting & Funding Forum Governors Annual Report Kachina News Article AUDIENCE and community leaders Government finance professionals DW & WW professionals, potential borrowers Water professionals, researchers, hydrologist Arizona Water Association members EPA DW, WW and reclaimed water service providers Infrastructure financing professionals DW & WW professionals, potential borrowers Governor’s Office, public Arizona Water Association members