Water Infrastructure Finance Authority

SFY 2012 Drinking Water
Intended Use Plan

Arizona Drinking Water State Revolving Fund

DWSRF Table of Contents
I. INTRODUCTION..................................................................................................1
A. History and Legislation
B. Financial Status of the Arizona DWSRF
C. Arizona’s Request
II. TYPES OF PROJECTS TO BE FUNDED FROM VARIOUS DWSRF
ACCOUNTS ...........................................................................................................2
A. Types of projects intended to be funded from the revolving fund
account
B. Activities intended to be funded from the account for set-aside
programs
III. DWSRF LOAN PROGRAM DESCRIPTION AND GOALS ...........................3
A. DWSRF Loan Program General Information
B. Financial Terms of Loans
C. Long-Term Goals
D. Short-Term Goals
IV. DWSRF SOURCES & USES ...............................................................................4
A. Financial Assistance for Loans
B. ADEQ Public Water System Supervision
C. ADEQ Drinking Water Program
D. ADEQ Wellhead Protection
E. WIFA Technical Assistance Program
F. Program Administration
V. CRITERIA AND METHOD FOR DISTRIBUTION OF FUNDS....................9
A. Project Priority List and Fundable Range
B. Project Priority List Updates
C. Project Readiness to Proceed
D. WIFA Loan & Subsidy Rates
E. Emergency Funding
F. Binding Commitments
G. Green Project Reserve
VI. ASSISTANCE TO PUBLIC WATER SYSTEMS SERVING
DISADVANTAGED COMMUNITIES .............................................................10
VII. U.S. EPA STRATEGIC PLAN GOALS AND OBJECTIVES ........................11
VIII. PUBLIC REVIEW AND COMMENT ..............................................................12
Table of Attachments
Attachment A SFY 2012 DW Project Priority List
Attachment B SFY 2012 DW Fundable Range for Design and Construction
Attachment C SFY 2012 DW Green Project Reserve
Attachment D SFY 2012 DW Final Funding Tables
1

INTRODUCTION
The WIFA Board of Directors is pleased to release Arizona’s Drinking Water State
Revolving Fund (DWSRF) Intended Use Plan (IUP) for the State Fiscal Year (SFY) 2012
funding cycle. The DWSRF IUP describes WIFA’s plan to utilize various sources of funds
to finance drinking water infrastructure and support related program activities during the
SFY 2012 funding cycle from July 1, 2011 through June 30, 2012. Because the final
funding level for the Federal Fiscal Year (FFY) 2011 Federal Capitalization Grant has not
been established at this time, this IUP will present what is thought to be the maximum
funding level for Arizona ($27,259,000) and the minimum ($13,000,000). ADEQ and
WIFA agreed to fix the set-aside budget at the $13,000,000 level for SFY 2012. If
additional funds become available above this minimum level of funding, the additional setaside amounts may be banked.
A. History and Legislation
In August 1996 the Safe Drinking Water Act Amendments were passed by Congress.
This Act authorized the states to establish drinking water revolving funds for
community drinking water infrastructure needs for the first time.
Passage of House Bill 2304 by the Arizona Legislature on April 22, 1997 transformed
the Wastewater Management Authority of Arizona into the Water Infrastructure
Finance Authority of Arizona (WIFA). WIFA was charged with administering the
Clean Water State Revolving Fund (CWSRF) for wastewater projects and the new
Drinking Water State Revolving Fund (DWSRF) for drinking water infrastructure
needs. The Board of Directors was expanded from seven to 12 members.
Title 18, Chapter 15 of the Arizona Administrative Code establishes detailed rules for
the Water Infrastructure Finance Authority. These rules were approved in SFY 2011.
The SFY 2012 Intended Use Plan describes how WIFA intends to use available
DWSRF funds for the year to meet the objectives of the Safe Drinking Water Act and
further the goal of protecting public health.
B. Financial Status of the Arizona DWSRF
Since program inception, WIFA has received 15 DWSRF Capitalization Grants for a
total of $275,747,200. The table below demonstrates the total funding to be awarded
with the 16th DWSRF Capitalization Grant, based on receiving the maximum amount or
minimum amount of funding.
Total Cap Grant Funds Received to Date
With Maximum FFY 2011 Cap Grant
With Minimum FFY 2011 Cap Grant

2

$275,747,200
$27,259,000
$13,000,000

Total with 16th Cap Grant
$303,006,200
$288,747,200

C. Arizona’s Request
This IUP is a required element of the grant application documentation to obtain the
FFY 2011 grant award. Arizona herewith submits its IUP for the FFY 2011 funds
available to Arizona for the purposes of continuing the development, implementation
and administration of the DWSRF program in Arizona.
Total FFY 2011 Cap Grant (amount set-asides are based upon)
$13,000,000
2% (Not To Exceed) (ADEQ)
$260,000
4% (Not To Exceed) (WIFA)
$520,000
10% (Not To Exceed) (ADEQ)
$1,300,000
15% (Not To Exceed) (ADEQ)*
$1,300,000
15% (Not To Exceed) (WIFA)*
$650,000
* No more than 10% of the 15% set-aside to any one program. ADEQ would utilize
$1,300,000 leaving $650,000 (WIFA will use a portion for Technical Assistance)

II.
TYPES OF PROJECTS TO BE FUNDED FROM VARIOUS
DWSRF ACCOUNTS
A. Types of Projects Intended to be Funded from the Revolving Fund Account
(See Sources and Uses Table 1 and Table 2 on Pages 5 and 6 for funding levels)
1. The construction/upgrading of water treatment facilities;
2. Water efficiency, energy efficiency, green stormwater infrastructure or other
environmentally innovative activities;
3. Supplemental water source interconnect;
4. Arsenic treatment to meet public health standards and to protect public health;
5. Consolidation and interconnection of public water systems;
6. Planning and engineering associated with eligible projects;
7. Replacement/rehabilitation of transmission lines and storage facilities;
8. Other projects necessary to address compliance/enforcement or security issues.
B. Activities intended to be funded from the account for set-aside programs
include: (See Sources and Uses Table 1 and Table 2 on Pages 5 and 6 for
funding levels)
1. WIFA administration of the DWSRF Program;
2. ADEQ administration of the PWSS Program;
3. ADEQ administration of the Wellhead Protection Program;
4. WIFA administration of the Technical Assistance Program.

III. DWSRF LOAN PROGRAM DESCRIPTION AND GOALS
A. DWSRF Loan Program General Information
The Arizona DWSRF Loan Program funds publicly and privately-owned
community water systems and non-profit non-community water systems. Eligible
projects include installation and replacement of failing treatment facilities, eligible
storage facilities and transmission and distribution systems. Projects to consolidate
water systems may also be eligible. Loans made under the program currently have
3

interest rates of less than 4% (except in the case of a privately owned facility). Loan
repayments to the State will provide a continuing source of infrastructure financing
into the future. The program also places an emphasis on small and disadvantaged
communities and on programs that emphasize prevention and sustainability as tools
for ensuring safe drinking water.
B. Financial Terms of Loans
1. Subject to the limitation in item 2 of this list, all loans for the financing of
projects will be for a term not to exceed 20 years from loan closing date, except
that under certain conditions including loans to disadvantaged communities
project financing may be made for a period of up to 30 years.
2. Loan terms are not to exceed the useful life of the project.
3. Terms of financial assistance to public water systems serving disadvantaged
communities are addressed in Section VI.
4. Repayment of loan principal must begin within 12 months of project completion
based on the construction schedule available at the loan closing date or actual
completion date or three years from the date of the initial principal advance,
whichever is earlier.
5. Loan disbursements are to be made on a cost reimbursement basis.
6. The decision to leverage will be based on demand on the loan fund for projects
to address health concerns, market conditions and long-term impact to the fund.
7. Up to 30% of the FFY 2011 grant funds may be provided as forgivable principal
and 20% will be used to finance water efficiency, energy efficiency, green
infrastructure or other environmentally innovative activities.
8. All contracts for financial assistance will require the borrower to comply with
the Davis-Bacon Act regardless of the source of funding if required as part of
the FFY 2011 Capitalization Grant.
9. WIFA will allocate income from the Standard Combined Interest and Fee Rate
(CIFR) as either fee income or interest income in accordance with the following
table.
Combined Interest and Fee Rate (CIFR)
Financial Structure
Governmental
Non-Governmental

CIFR
Municipal Market Data Index
(times) Subsidy Rate
Prime Rate (times) Subsidy Rate

Fees

Interest

1.5%

CIFR – 1.5%

3.0%

CIFR – 3.0%

C. Long-Term Goals
For purposes of this IUP, a long term goal is defined as the life of the program. The
following are the long-term goals of the loan program:
•
•
•
•

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;
Facilitate access to and efficiently deliver financial and technical assistance to
Arizona’s drinking water facilities; and
Coordinate with other funding agencies through the Rural Water Infrastructure
Committee (RWIC).
4

D. Short-Term Goals
For the purposes of this IUP, a short-term goal is an activity intended to be initiated
and, in some cases, completed within a year.
•
•
•
•

IV.

WIFA will make drinking water infrastructure loans more accessible and
affordable to small communities by subsidizing all loans and providing below
market rate interest.
WIFA will provide additional assistance to communities who are identified as
disadvantaged.
WIFA may provide 30% of the capitalization grant amount as additional
subsidization in the form of forgivable principal.
WIFA will provide 20% of the capitalization grant amount (as required by the
terms of the capitalization grant) for sustainable construction efforts such as
water efficiency, energy efficiency, green stormwater infrastructure or other
environmentally innovative activities.

DWSRF SOURCES & USES
The Safe Drinking Water Act §1452(g) and §1452(k) allows States to set aside up
to 31% of the capitalization grant for the activities described in Section II.B.
The DWSRF account for set-aside programs includes four specific set-aside
categories identified as the 2%, 4%, 10%, and 15% set-asides. If all of the set-aside
funds within a set-aside activity are not expended, those remaining funds may be
redirected to another set-aside activity as long as the maximum allowed for that
activity has not been reached for the fiscal year from which the funds were derived.
Funds not used for the PWSS and Wellhead programs during SFY 2012 (July 1,
2011 through June 30, 2012) will revert to the DW Loan Fund Account and will be
reflected in the SFY 2013 DW IUP.
The sources and uses for the SFY 2012 funding cycle shown in Table 1 are based
on the FFY 2011 federal allocation and WIFA’s funding plan. The total 2011
DWSRF federal budget allocation available to states is $1,357,260,000 of which
Arizona is currently scheduled to receive 2.01% or $27,259,000. However, the FFY
2011 allocation is still under continuing resolution. As stated earlier, ADEQ and
WIFA have agreed to base the set-aside allocations on $13,000,000.
Because the final funding levels provided through EPA’s FFY 2011 Federal
Capitalization Grant have not been established at this time, WIFA is presenting two
DWSRF Sources and Uses Tables. Table 1 will reflect the full level of funding that
would be provided if the current continuing resolution is approved for the rest of
FFY 2011 (but the set-asides are based on an award level of $13,000,000). Table 2
reflects a funding level of $13,000,000 for all sources and uses including set-asides.

5

Table 1: Arizona DWSRF Sources & Uses for FFY 2011 Funding Cycle (if fully
funded under the current Continuing Resolution).
Arizona DWSRF Sources & Uses for SFY 2012 (FFY 2011 Max Cap Grant)
Federal
WIFA
Contributions Revenues
Funding Sources
Estimated fund balance as of 7/1/2011
New funds expected in SFY 2012
Total Funding Sources
Funding Uses
Financial Assistance Loans
15% Set-Aside Wellhead Protection (ADEQ)
15% Set-Aside Technical Assistance (WIFA)
10% Set-Aside PWSS (ADEQ)*
4% Set-Aside Administration
2% Set-Aside Capacity Development (ADEQ)
Drinking Water Programs (ADEQ)
Forgivable Principal $8,177,700 (30%)
Green Infrastructure $5,451,800 (20%)
Total Funding Uses
* ADEQ PWSS 10% includes $75,000 Border TA

WIFA Loan
Accounts

Total

$
- $ 3,305,450 $ 43,557,080 $ 46,862,530
$ 27,259,000 $5,526,874
$2,582,480 $ 35,368,354
$ 27,259,000 $ 8,832,324 $ 46,139,560 $ 82,230,884

$ 23,581,500 $ 5,451,800 $ 46,139,560 $ 75,172,860
$ 1,300,000
$ 1,300,000
$
357,500
$
357,500
$ 1,300,000
$ 1,300,000
$
520,000 $
64,760
$
584,760
$
200,000
$
200,000
$ 1,160,600
$ 1,160,600

$ 27,259,000 $ 6,677,160 $ 46,139,560 $ 80,075,720

ADEQ has banked $500K in FFY 2009 and $600K in FFY 2010
WIFA may sell water quality revenue bonds - proceeds will be used to increase WIFA's lending capacity

6

Table 2: Arizona DWSRF Sources & Uses for FFY 2011 Funding Cycle (If the
minimum amount of funding is released)
Arizona DWSRF Sources & Uses for SFY 2012 (FFY 2011 Min Cap Grant)
Federal
WIFA
Contributions Revenues
Funding Sources
Estimated fund balance as of 7/1/2011
New funds expected in SFY 2012
Total Funding Sources
Funding Uses
Financial Assistance Loans
15% Set-Aside Wellhead Protection (ADEQ)
15% Set-Aside Technical Assistance (WIFA)
10% Set-Aside PWSS (ADEQ)*
4% Set-Aside Administration
2% Set-Aside Capacity Development (ADEQ)
Drinking Water Programs (ADEQ)
Forgivable Principal $3,900,000 (30%)
Green Infrastructure $2,600,000 (20%)
Total Funding Uses
* ADEQ PWSS 10% includes $75,000 Border TA

WIFA Loan
Accounts

Total

$
- $ 3,305,450 $ 43,557,080 $ 46,862,530
$ 13,000,000 $5,526,874
$2,582,480 $ 21,109,354
$ 13,000,000 $ 8,832,324 $ 46,139,560 $ 67,971,884

$ 9,262,500 $ 2,600,000 $ 46,139,560
$ 1,300,000
$
357,500
$ 1,300,000
$
520,000 $ 220,000
$
260,000
$ 1,160,600

$ 58,002,060
$ 1,300,000
$
357,500
$ 1,300,000
$
740,000
$
260,000
$ 1,160,600

$ 13,000,000 $ 3,980,600 $ 46,139,560 $ 63,120,160

ADEQ has banked $500K in FFY 2009 and $600K in FFY 2010
WIFA may sell water quality revenue bonds - proceeds will be used to increase WIFA's lending capacity

A. Financial Assistance for Loans
Eligible projects include installation and replacement of failing treatment facilities,
eligible storage facilities, and transmission and distribution systems. Projects to
consolidate water systems may also be eligible. The FFY 2011 EPA Drinking
Water Capitalization Grant requires a minimum of 20% to be used to finance
sustainable projects that emphasize water efficiency, energy efficiency, green
stormwater infrastructure or other environmentally innovative activities. See the
Arizona DWRF Sources & Uses for 2011 Funding Cycle Table 1 and Table 2 for
funding details.
B. ADEQ Public Water System Supervision (PWSS)
State and Federal Statutes allow setting aside up to 10% of the Federal funds for the
Public Water System Supervision activities. This set-aside requires a 1:1 match
which will be provided by ADEQ Fees. ADEQ will use this funding for the PWSS
Program, which encompasses all of the various activities involved in implementing
the Safe Drinking Water Act requirements in Arizona. These activities include
operator certification, source water assessment and protection, development of
regulatory guidance and assistance documents, assisting systems in obtaining the
technical, financial, and managerial capability to comply with drinking water
regulations, and technical consultations on water system and treatment system
design. For more information contact ADEQ's Water Quality Division Deputy
Director.

7

C. ADEQ Drinking Water Program
The Drinking Water program is federally mandated to ensure safe drinking water
supplies for the public. Staff reviews water system construction plans, conducts
compliance inspections on drinking water systems, reviews water quality
monitoring data, initiates enforcement actions in response to continued or
significant noncompliance, and conducts outreach to educate stakeholders on
regulatory requirements. The program also evaluates source waters to ascertain
their susceptibility to contamination, promotes voluntary community programs
aimed at protecting aquifers for drinking water use, and administers the monitoring
assistance program to assist public water systems in complying with monitoring
requirements under the federal Safe Drinking Water Act. For more information
contact ADEQ's Water Quality Division Deputy Director. This effort is being
funded through WIFA Revenues.
D. ADEQ Wellhead Protection
State and Federal Statutes allow setting aside up to 15% of the Federal
Capitalization Grant funds for the Public Water System Supervision (PWSS)
activities. A maximum of up to 10% of the Capitalization Grant funds will be used
by ADEQ for Wellhead Protection activities to protect underground sources of
drinking water. For more information contact ADEQ's Water Quality Division
Deputy Director.
E. WIFA Technical Assistance Program
State and Federal Statutes allow setting aside 2% and 15% of the Federal funds to
provide local assistance to water systems in Arizona. The 2% set-aside will be used
by ADEQ’s Capacity Development for Staff Technical Assistance program and a
portion of the 15% will be used for WIFA’s Planning and Design Assistance Grant
program and WIFA’s Professional Technical Assistance program. See the Arizona
DWRF Sources & Uses for 2011 Funding Cycle Table 1 and Table 2 for funding
details.
•

Staff Technical Assistance (2% set-aside) ADEQ's Capacity Development
Unit will assist small individual drinking water systems, serving 10,000 or
fewer people, to improve their day-to-day operation. For more information
contact ADEQ's Drinking Water Division Deputy Director.

•

Professional Technical Assistance – Professional TA includes studies, surveys
and other types of reports that provide benefit to a range of drinking water
systems statewide. WIFA will complete the Drinking Water Residential Rate
Survey with these funds.

•

Planning and Design Assistance Grant – WIFA will assist individual drinking
water systems to conceive, plan, design, and develop infrastructure; including
water and energy efficiency, green stormwater infrastructure or other
environmentally innovative activities.

8

Breakdown of WIFA Technical Assistance Funding Uses
Technical Assistance Program
Staff Technical Assistance
ADEQ Capacity Development
Professional Technical Assistance
Rate Survey
Planning & Design Assistance Grants
Cycle I, Applications Due April
Cycle II, Applications Due October

Set-Aside
Used
2%

Set-Aside
Funds
$200,00

15%
$7,500
15%

$200,000
$150,000

WIFA Revenue
Used
N/A
N/A
N/A

F. Program Administration (4% set-aside)
WIFA will utilize this set-aside to pay salaries and associated expenses of
program’s personnel devoting time to the administration of the funds as well as the
necessary ancillary services performed by other agencies. These funds will also be
used to procure equipment and training necessary for the adequate performance of
staff. Expenses for DWSRF-related public meetings, workshops and conferences
will also be paid for out of this set-aside. Funds not used immediately will be
reserved for use in future years. WIFA will provide additional program
administration support through use of WIFA Fees.

V. CRITERIA AND METHOD FOR DISTRIBUTION OF FUNDS
A. Project Priority List and Fundable Range
Project Priority List (PPL): On an annual basis, following a statewide solicitation
for projects, WIFA develops a statewide priority list of projects. Currently the
WIFA PPL has 28 project priority list applications totaling $64,378,168. See
Attachment A.
Fundable Range: The Fundable Range includes the applicants ready to receive
design or construction financial assistance. See Attachment B.
B. Project Priority List Updates
The WIFA Board of Directors may update the DWSRF-PPL by adding or deleting
projects or adjusting the fundable ranges for design or construction projects. The
decision to update the DWSRF-PPL may be based on a project’s readiness to
proceed, refined project cost estimates, availability of other funding sources or
other new information affecting the expansion or contraction of the PPL and
fundable ranges. The WIFA Board of Directors will adopt the updated DWSRFPPL at a public meeting and the updates will be posted on the WIFA web site. All
projects must meet the applicable requirements under the Safe Drinking Water Act,
42 U.S.C. § 300f to 300j-26.
9

C. Project Readiness to Proceed
Applicants accrue readiness to proceed points based on the following criteria:
1. Approved debt authorization has been received by WIFA.
2. Plans and specifications are complete.
3. Local and state permits have been obtained.
4. The bid or solicitation process has been initiated.
D. WIFA Loan & Subsidy Rates
The WIFA Board of Directors has established a target interest rate ranging between
70% and 95% of tax-exempt AAA Bond Rate for government entities and 70% to
95% of the prevailing prime rate plus 200 basis points for non-government entities.
The subsidy rate is based on the local fiscal capacity which is measured by the
area’s median household income, user rates and charges, the community’s
outstanding and proposed debt, and cost effectiveness of the project. Interest
rates/subsidies on individual loans will be set pursuant to the criteria below:
•
•
•

Priority of the project;
Local fiscal capacity of the area served by the system requesting assistance;
and,
Lending capacity of Arizona’s DWSRF.

E. Emergency Funding
WIFA can provide up to $250,000 for emergency funding under the criteria set
forth in Arizona Revised Statutes (A.R.S.) 49-1269.
Eligible Applicants
Publicly Owned Community Water Systems
Required Conditions
• The term of the loan does not exceed one year.
• The dollar amount of the loan does not exceed two hundred fifty thousand
dollars ($250,000) per borrower, per emergency event.
• The purpose of the loan is to provide assistance for designing, redesigning,
engineering, reengineering, constructing or reconstructing water or wastewater
systems that have failed as the result of a disaster, a natural disaster or a
catastrophic event.
• The disaster, natural disaster or catastrophic event is memorialized in a
declaration of emergency by the Governor or the Federal Emergency
Management Agency.
F. Binding Commitments
If the WIFA Board of Directors approves an applicant’s financial assistance
request, WIFA staff will prepare and circulate financial assistance (loan) documents
to evidence the binding commitment in accordance with applicable federal and state
requirements.
10

G. Green Project Reserve
The FFY 2011 appropriations may require that to the extent there are sufficient
eligible project applications, not less than 20% of the funds provided with the
Federal Capitalization Grant must be used for projects that emphasize sustainability
through water or energy efficiency, or other environmentally innovative activities.

VI.

ASSISTANCE TO PUBLIC WATER SYSTEMS SERVING
DISADVANTAGED COMMUNITIES
The Board may designate an applicant as a Disadvantaged Community if the
applicant satisfies one of the following:
1. The community is a designated “colonia” community through the local
government, or
2. The applicant meets the following criteria:
a. The applicant’s project is above the 50th percentile on the DWSRF Project
Priority List; and
b. WIFA awarded the applicant 50 or more Local Fiscal Capacity points on the
DWSRF Project Priority List.

VII. U.S. EPA STRATEGIC PLAN GOALS AND OBJECTIVES
SFY-12 Drinking Water State Revolving Fund (DWSRF)
U.S. EPA Strategic Plan Goals & Objectives Commitments
The Arizona DWSRF program supports the National USEPA Strategic Plan Goal 2 (Clean
and Safe Water), Objective 1 (Protect Human Health), Sub-objective 1 (Water Safe to
Drink) listed below. Specifically, Arizona established and is managing the revolving loan
fund to make low cost loans and other types of assistance to water systems to finance the
cost of infrastructure projects to achieve or maintain compliance with Safe Drinking Water
Act requirements. Arizona DWSRF activities support USEPA Program Reporting Measure
SDW-04 Fund Utilization and SDW-05 DWSRF projects that have initiated operations.
All planned and prior year loans have assisted public water systems in meeting the federal
and state drinking water compliance requirements. Details of Arizona’s DWSRF activities
supporting the National USEPA Strategic Plan will be included in the DWSRF Annual
Report as well as in the Drinking Water National Information Management System (DW
NIMS), Drinking Water Project Benefit Reporting System (PBR); and the Federal Funding
Accountability and Transparency Act (FFATA) Reporting System.

11

Measure

Measure Text

SDW-04

Fund utilization rate [cumulative dollar amount
of loan agreements divided by cumulative
funds available for projects] for the Drinking
Water State Revolving Fund (DWSRF)
Number of Drinking Water State Revolving
Fund (DWSRF) projects that have initiated
operations (cumulative)

SDW-05

National
Target
93%

Region 9
Target
88%

Arizona
Target
100%

Base
ARRA
Total 6,080

298
84
382

111
29
140

The DWSRF Fund Utilization is calculated by dividing:
Cumulative $$$ in DWSRF Assistance Provided as of June 30, 2012
DWNIMS Line 130
---------------------------------------- by---------------------------------------- or -----------by----------Cumulative DWSRF Funds Available for Projects as of June 30, 2012
DWNIMS Line 283

VIII. PUBLIC REVIEW AND COMMENT
Public review and written comment period will be conducted from May 20, 2011
through June 10, 2011.
WIFA will solicit public review and comment on the draft SFY 2012 DWSRF IUP
and PPL according to the following schedule:

May 13, 2011
May 23, 2011
May 27, 2011
April 20, 2011

July 01, 2011

Distribution and Web posting of the draft DWSRF IUP and PPL
to all interested parties.
Public Hearing – 1110 West Washington, Room 130, Phoenix,
Arizona 85007 from 1:00 P.M. to 2:00 P.M.
Deadline for public comments on the draft DWSRF IUP and
PPL.
The WIFA Board of Directors adopted the final draft DWSRF
IUP and PPL. Unless there are substantive changes through the
public review process or by EPA, the final draft was approved.
Begin implementation of the Approved DWSRF IUP and PPL

12

Attachment A
Arizona’s Drinking Water Revolving Fund
SFY 2012 Funding Cycle – Project Priority List
PPL
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13

14

15
16
17
18
19
20
21

Applicant
Cienega Water
Company
Verde Lee Water
Company, Inc.
Gila Bend, Town
of
Lake Verde
Water Co

Population

County

140

La Paz

500

Greenlee

1,980

Maricopa

204

Yavapai

Arsenic Mitigation

Nogales, City of

21,830

Santa
Cruz

City of Nogales Automated
Meter System Improvements
Well, Tank and Disinfection
System Improvements
Orange Grove Water Storage
and Facility Upgrade

Sulger Water
Company #2
Orange Grove
Water Co.
Pinetop Water
Community
Facilities District
Little Park
Water Company
Eloy, City of

50

Cochise

1,200

Yuma

3,000

Navajo

125

Yavapai

9,600

Pinal

Indiada Water
Company
Cerbat Water
Company
Clear Springs
Utility Company

150

Cochise

2,136

Mohave

1,180

Cochise

East Slope
Water Co.

2,877

Cochise

585

Cochise

Antelope Run
Water Company
Litchfield Park
Service
Company
Clarkdale, Town
of
Granite
Mountain Water
Company
Marana, Town
of
Sabrosa Water
Company
Sandario Water
Company

Project Title
Fluoride Treatment and
System Upgrades
Titanium Arsenic Removal
System
Solar and R/O Facility
Improvements

System Automation
Motor Efficiency Program,
SCADA Implementation
Houser/Toltec Waterline
Improvements
Water Line Replacement and
System Interconnection
Well Purchase, Repairs to
Well Pump, Backup Well
Clear Springs Utility
Consolidation & Upgrades
System Improvements
(Storage, Booster Pumps, Well
Improvements, Main
Replacement)
Storage, Looping and Water
Line Replacement

Project
Number

Amount
Requested

Subsidy
Rate

004 2012

$50,000

75%

005 2012

$165,000

75%

006 2012

$2,572,008

80%

007 2012

$450,000

80%

008 2012

$2,500,000

70%

001 2012

$120,000

80%

015 2012

$200,000

75%

030 2012

$100,000

80%

010 2012

$25,000

80%

031 2012

$1,865,000

75%

012 2012

$327,379

85%

028 2012

$534,710

80%

011 2012

$511,000

80%

014 2012

$2,059,733

80%

003 2012

$612,887

80%

39,000

Maricopa

Airline Reservoir Solar Project
/ LPSC

018 2012

$1,170,000

80%

4,026

Yavapai

Twin 5s Water Main
Replacement

013 2012

$3,487,582

80%

225

Yavapai

Well #5 Replacement & Tank
#3 Addition

017 2012

$181,320

80%

Pima

Purchase of Tucson Water
within Town of Marana

016 2012

$40,000,000

85%

Maricopa

Arsenic Treatment

019 2012

$30,000

85%

Pima

Capital Improvements
(Storage, Pipe Replacement)

020 2012

$780,000

80%

12,000
100
1,000

13

22

Sonoita Valley
Water Company

23

Payson Water
Company, Inc

24
25
26
27
28
29
30
31

Truxton Canyon
Water Company
Litchfield Park
Service
Company
Parker Springs
Water Company
Clarkdale, Town
of
Clarkdale, Town
of
Arizona
American Water
Company
Livco Water
Company
Southland Water
Company

327

Santa
Cruz

1,148

Gila

2,136

Mohave

39,000

Maricopa

System Consolidation
Mesa del Caballo
Supplemental Water Supply
Project
Truxton Canyon Water
Transmission Replacement
LPSCO Recharge Wells

021 2012

$547,000

85%

022 2012

$1,000,000

80%

002 2012

$46,350

85%

029 2012

$1,755,000

85%

Replacement Well, Storage
and Water Line Renovation
Broadway Water Main
Installation- Phase 2
Water System Security
Improvements

027 2012

$271,000

85%

023 2012

$320,500

80%

024 2012

$68,000

80%

Maricopa

Sun City Well 8.3
Replacement

025 2012

$2,000,000

85%

1,100

Apache

Tank #1 Exterior Painting

032 2012

$30,000

85%

1,958

Cochise

Well Improvements and
Meters

026 2012

$1,728,342

85%

126

Cochise

4,026

Yavapai

4,026

Yavapai

43,463

Total

$65,507,812

14

Attachment B
Arizona’s Drinking Water Revolving Fund
SFY 2012 Funding Cycle – Fundable Range for Design and Construction
Fundable
Range
Rank

PPL
Rank

1

8

2

11

3

Applicant
Pinetop Water
Community
Facilities District

Population

County

Project Title

3,000

Navajo

System
Automation

Eloy, City of

9,600

Pinal

15

Litchfield Park
Service Company

39,000

Maricopa

4

17

Clarkdale, Town of

4,026

Yavapai

5

25

Litchfield Park
Service Company

39,000

Maricopa

Total

Houser/Toltec
Waterline
Improvements
Airline Reservoir
Solar Project /
LPSC
Twin 5s Water
Main Replacement
LPSCO Recharge
Wells

Project
Number

Amount
Requested

Subsidy
Rate

030 2012

$100,000

80%

031 2012

$1,865,000

75%

018 2012

$1,170,000

80%

013 2012

$3,487,582

80%

029 2012

$1,755,000

85%

$8,377,582

15

Attachment C
Arizona’s Drinking Water Revolving Fund
SFY 2012 Funding Cycle – Green Project Reserve

PPL
Rank

4

Applicant
Cienega Water
Company
Verde Lee Water
Company, Inc.
Gila Bend, Town
of
Lake Verde Water
Co

5

Nogales, City of

6

Sulger Water
Company #2

1
2
3

Population
140
500
1,980
204
21,830

50

8

Orange Grove
Water Co.
Pinetop Water
Community
Facilities District

9

Little Park Water
Company

10

Eloy, City of

9,600

11

Indiada Water
Company

150

12

Cerbat Water
Company

2,136

13

Clear Springs
Utility Company

1,180

7

14
15
16
17

East Slope Water
Co.
Antelope Run
Water Company
Litchfield Park
Service Company

1,200

3,000

125

2,877
585
39,000
4,026

18

Clarkdale, Town of
Granite Mountain
Water Company

19

Marana, Town of

12,000

225

Project Title
Fluoride Treatment and
System Upgrades
Titanium Arsenic
Removal System
Solar and R/O Facility
Improvements
Arsenic Mitigation
Automated Meter
System Improvements
Well, Tank and
Disinfection System
Improvements
Orange Grove Water
Storage and Facility
Upgrade
Meters and Well
Automation
Motor Efficiency
Program, SCADA
Implementation
Houser/Toltec Waterline
Improvements
Water Line Replacement
and System
Interconnection
Well Purchase, Repairs
to Well Pump, Backup
Well
Clear Springs Utility
Consolidation &
Upgrades
System Improvements
(Storage, Booster Pumps,
Well Improvements,
Main Replacement)
Storage, Looping and
Water Line Replacement
Airline Reservoir Solar
Project / LPSC
Twin 5s Water Main
Replacement
Well #5 Replacement &
Tank #3 Addition
Purchase of Tucson
Water within Town of
Marana

16

Probable
Green
Amount

Project
Number

Amount
Requested

Subsidy
Rate

004 2012

$50,000

75%

005 2012

$165,000

75%

006 2012

$2,572,008

80%

007 2012

$450,000

80%

008 2012

$2,500,000

70%

001 2012

$120,000

80%

015 2012

$200,000

75%

030 2012

$100,000

80%

$100,000

010 2012

$25,000

80%

$25,000

031 2012

$1,865,000

75%

012 2012

$327,379

85%

028 2012

$534,710

80%

011 2012

$511,000

80%

014 2012

$2,059,733

80%

003 2012

$612,887

80%

018 2012

$1,170,000

80%

013 2012

$3,487,582

80%

017 2012

$181,320

80%

016 2012

$40,000,000

85%

$25,000

$2,500,000

$110,000

$1,170,000

20

Sabrosa Water
Company

22

Sandario Water
Company
Sonoita Valley
Water Company

23

Payson Water
Company, Inc

21

100

1,000
327

1,148

25

Truxton Canyon
Water Company
Litchfield Park
Service Company

39,000

26

Parker Springs
Water Company

126

27

Clarkdale, Town of

4,026

28

Clarkdale, Town of
Arizona American
Water Company
Livco Water
Company
Southland Water
Company

4,026

24

29
30
31
Total:

2,136

43,463
1,100
1,958

Arsenic Treatment
Capital Improvements
(Storage, Pipe
Replacement)
System Consolidation
Mesa del Caballo
Supplemental Water
Supply Project
Truxton Canyon Water
Transmission
Replacement
LPSCO Recharge Wells
Replacement Well,
Storage and Water Line
Renovation
Broadway Water Main
Installation- Phase 2
Water System Security
Improvements
Sun City Well 8.3
Replacement
Tank #1 Exterior
Painting
Well Improvements and
Meters

17

019 2012

$30,000

85%

020 2012

$780,000

80%

021 2012

$547,000

85%

022 2012

$1,000,000

80%

002 2012

$46,350

85%

029 2012

$1,755,000

85%

027 2012

$271,000

85%

023 2012

$320,500

80%

024 2012

$68,000

80%

025 2012

$2,000,000

85%

032 2012

$30,000

85%

026 2012

$1,728,342
$65,507,811

85%
$3,930,000

Attachment D
DW SFY 2012 Final Funding Tables
(Based on FFY 2011 DW Capitalization Grant)

B. Financial Status of the Arizona CWSRF
Total Cap Grant Funds Received to Date
With Final FFY 2011 Cap Grant

$275,747,200
$18,614,000

Total with 16th Cap Grant
$294,361,200

(Replaces table on Page 1 of the SFY 2012 CWSRF IUP)

Table 2: Arizona DWSRF Sources & Uses for FFY 2011 Funding Cycle
Arizona DWSRF Sources & Uses for SFY 2012 (FFY 2011 Cap Grant)
Federal
WIFA
Contributions Revenues
Funding Sources
Estimated fund balance as of 7/1/2011
New funds expected in SFY 2012
Total Funding Sources
Funding Uses
Financial Assistance Loans
15% Set-Aside Wellhead Protection (ADEQ)
15% Set-Aside Technical Assistance (WIFA)
10% Set-Aside PWSS (ADEQ)*
4% Set-Aside Administration
2% Set-Aside Capacity Development (ADEQ)
Drinking Water Programs (ADEQ)
Forgivable Principal $5,584,200 (30%)
Green Infrastructure $3,722,800 (20%)
Total Funding Uses
* ADEQ PWSS 10% includes $75,000 Border TA

WIFA Loan
Accounts

Total

$
- $ 3,305,450 $ 43,557,080 $ 46,862,530
$ 18,614,000 $5,526,874
$2,582,480 $ 26,723,354
$ 18,614,000 $ 8,832,324 $ 46,139,560 $ 73,585,884

$ 14,936,500 $ 5,451,800 $ 46,139,560 $ 66,527,860
$ 1,300,000
$ 1,300,000
$
357,500
$
357,500
$ 1,300,000
$ 1,300,000
$
520,000 $ 220,000
$
740,000
$
200,000
$
200,000
$ 1,160,600
$ 1,160,600

$ 18,614,000 $ 6,832,400 $ 46,139,560 $ 71,585,960

ADEQ has banked $500K in FFY 2009 and $600K in FFY 2010
WIFA may sell water quality revenue bonds - proceeds will be used to increase WIFA's lending capacity

(Replaces Tables 1 and 2 on pages 6 & 7 of the SFY 2012 DWSRF IUP)

18