2009 Annual Report Water Infrastructure Finance Authority of Arizona Water Infrastructure Finance Authority of Arizona The Water Infrastructure Finance Authority of Arizona (WIFA) is an independent agency of the state of Arizona established to finance the construction, rehabilitation, and improvement of drinking water, wastewater, wastewater reclamation, and other water quality projects. WIFA offers borrowers below market interest on loans for one hundred percent of eligible project costs. WIFA operates as a “bond bank” and has the authority to issue bonds on behalf of communities for basic water infrastructure. Through an active portfolio and sound financial management, WIFA provides significant savings through low-interest loans. WIFA’s primary tools for providing low-interest loans include the Clean Water Revolving Fund created in 1987 by the Environmental Protection Agency (EPA) for public wastewater treatment projects, and the Drinking Water Revolving Fund created in 1997 to provide states with funding to address important drinking water projects that are necessary to ensure public health. Casa Grande Wastewater Treatment Facility Water Infrastructure Finance Authority of Arizona WIFA 2009 Annual Report Table of Contents I. Goal and Performance Measures A. Goal 1: Award WIFA’s Financial Resources in Accordance with the Water Quality Needs of Arizona’s Citizens….........................................................1 B. Goal 2: Manage WIFA’s Loan and Bond Portfolio and Maintain WIFA’s Fiscal Integrity to Meet the Water Quality Funding Needs of Arizona’s Future Generations…. .............................................................................6 C. Goal 3: Facilitate Access to and Efficiently Deliver Financial and Technical Assistance................................................................................................8 D. Goal 4: Coordinate with other Funding Sources, Technical Resources and Regulatory Authorities….......................................................................................14 II. American Recovery and Reinvestment Act 2009…....................................................15 III. Statement of Finances A. Statement of Financial Position…. ........................................................................16 B. Statement of Revenues, Expenses, and Changes in Fund Net Assets…................17 C. Statement of Net Assets ..........................................................................................18 IV. WIFA Board of Directors and WIFA Staff…..............................................................19 V. WIFA Loans and Grants FY 2009 Map.......................................................................21 VI. WIFA Funds Distributed by District FY 2009 Map ....................................................22 Section I. Goal and Performance Measures Goal 1: Award WIFA’s Financial Resources in Accordance with the Water Quality Needs of Arizona’s Citizens WIFA continues to provide financial assistance to a diverse number of communities with various levels of water quality and infrastructure needs. During Fiscal Year (FY) 2009, WIFA executed 12 Clean Water (CW) and eight Drinking Water (DW) loans. (see Tables 1 and 2). WIFA balances a community’s environmental health and financial needs, while providing assistance to the most significant public health and water quality problems. Table 1: Executed Clean Water Financial Assistance Agreements (Loans) FY 2009 Loan Recipient Project Name Camp Verde Sanitary District Collection System Additions and WWTP Upgrade Casa Grande, City of Water Reclamation Facility Expansion $37,555,540.00 Casa Grande, City of Water Reclamation Facility Expansion $25,000,000.00 *Cave Creek, Town of Cave Creek Water Ranch (Water Reclamation Facility) $22,917,000.00 Eloy, City of Eloy Headworks Project $6,987,834.61 Fawn Brook DWID District Sewer Collection System Project $1,190,910.00 Kingman, City of Hilltop Wastewater Treatment Plant Upgrades $35,000,000.00 Lake Havasu, City of Lake Havasu City Wastewater System Expansion $45,585,000.00 Mogollon Domestic Wastewater Improvement District Design Sewer Collection System Taylor, Town of Taylor Wastewater Treatment Facility Expansion $4,450,000.00 Tucson, City of Roger Road Reclaimed Plant Booster Expansion $1,000,000.00 Yuma County Improvement District Avenue B&C Colonia Sewer Project 12 Projects Totals Loan Amount $5,600,000.00 $77,030.00 $300,000.00 $185,663,314.61 *American Recovery and Reinvestment Act Project 1 Table 2: Executed Drinking Water Financial Assistance Agreements (Loans) FY 2009 Loan Recipient Project Name Flagstaff, City of New Water Wells Fredonia, Town of Fredonia Culinary Water System Improvements Project $563,000.00 *Highland Pines Domestic Water Water Main Replacement Project* $650,000.00 Livco Water Company Upgrade/Replace Old Water Meters $124,000.00 Ojo Bonito Estates Domestic Water Improvement District OBEWID Capital Improvement Phase 1 Rancho Del Conejo Community Water Co-op Rancho Del Conejo - Arsenic Removal Project - Well #3 Tucson, City of Well Drilling, Chemical Feed and Meter Improvements Improvement District Loan Amount $8,500,000.00 $75,000.00 $200,000.00 $2,500,000.00 Valley Utilities Water Company, Inc. Replacement Well for Well #6 Totals 8 projects $250,000.00 $12,862,000.00 *American Recovery and Reinvestment Act Project In February 2010 the American Recovery and Reinvestment Act (ARRA) was voted into law. Loan applicants that were on WIFA’s Project Priority List were offered the opportunity to apply for ARRA funding. The majority of ARRA funded loans were closed in FY 2010 and are not part of this report, however Section II. A. of this report includes a summary of ARRA activities. Some borrowers elected to postpone closing loans to try to qualify for ARRA funds, therefore a smaller number of Clean Water and Drinking Water Loans closed in FY 2009 which will result in a sharp increase in loans closed in FY 2010. Flagstaff Water Wells 2 Consolidation/Regionalization Projects: Fawn Brook Domestic Wastewater Improvement District project included sewering the community and annexation by the City of Show Low. The wastewater flows will be consolidated and treated at a regional facility. Yuma County Improvement District’s loan is for the design of a sewer system that will connect Avenues B & C Colonia to the City of Yuma’s water pollution control facility. Lake Havasu City involves sewering within the city limits. This project is considered one of the most important Consolidation and Regionalization projects in the State. Reuse of Treated Effluent: Casa Grande, Cave Creek, Kingman, and Lake Havasu City all are treating their effluent to the highest quality in order to have flexibility in their water reuse portfolio. Tucson’s project is explicitly for the distribution of recycled water. Use of Renewable Water Supplies: Fredonia’s project, which is also funded by United States Department of Agriculture, Rural Development (USDA RD), is directed to improving their ability to store and utilize surface water. Tucson’s project calls for drilling four new wells that will recover the CAP renewable water that is being pumped into the SAVSARP recharge basins. Compliance Related Projects: WIFA saw a decrease in the percentage of compliance related CW projects and an increase in DW projects in FY 2009. (See Table 3). For the CW Loans, WIFA believes this is a reflection of improved cooperation and communication with Arizona Department of Environmental Quality (ADEQ) which allows wastewater systems with compliance related issues to open a dialog with WIFA earlier in the enforcement process. Table 3: Compliance Related Projects Fiscal Year 2008 2009 Total CW Projects 17 12 Total DW Projects 20 8 Compliance Related CW Projects 6 4 Compliance Related DW Projects 6 1 3 Percentage of CW Compliance Related Projects 35% 33% Percentage of DW Compliance Related Projects 30% 13% Marketing to Stimulate Demand: The implementation of ARRA in FY 2009 became a big marketing tool for WIFA. It stimulated new interest and demand which will be reflected in FY 2010 total project numbers. Other creative marketing tools developed this year include a new WIFA Brochure and a compact disk titled: “Tools for Sustainable Infrastructure Management”. The following documents are included on the disk: • • • • • • • • The Water Infrastructure Finance Authority of Arizona brochure Drinking Water Operational & Technical Assistance Financial Assistance Comparison Tool (FACT) Check up Program for Small Systems (CUPSS) How to Hire an Engineer Sustainable Infrastructure – Best Practices Guide for Arizona Wastewater Utilities Liquid Assets – Community Tool Kit Arizona Rate Survey 2009 In determining the interest rate for a loan, WIFA provides a 5% to 30% discount on the taxexempt AAA Bond Rate for government entities and the prevailing prime-rate plus 2% for nongovernment entities. The percentage of the discount is based on the community’s 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. The final interest rate for the loans closed in FY 2009 averaged 3.08% for governmental entities and 4.97% for non-governmental entities, representing an average discount from the base interest rate of 26% and 32% respectively. WIFA has funded 328 projects providing over $1.6 billion of investment in Arizona’s communities since 1992. Las Quintas Serenas Water Co. 4 WIFA also implemented a program that provides 1% interest loans to very small drinking water systems. The program is expected to stimulate demand for financial assistance from small systems. In accordance with WIFA’s Strategic Plan, WIFA used its resources in accordance with the needs of Arizona’s citizens by funding projects that consolidate water and wastewater systems, reuse or recharge treated effluent, reduce reliance on non-renewable water supplies and protect groundwater contamination from septic tanks. Clean Water Revolving Fund (CWRF) Four of the 12 loans awarded in FY 2009 were used to convert decentralized systems to centralized systems. Drinking Water Revolving Fund (DWRF) WIFA continues to provide funding for a variety of water quality related projects such as; treatment, storage capacity, transmission and distribution. Valley Utilities Water Co. 5 Goal 2: Manage WIFA’s Loan and Bond Portfolio and Maintain WIFA’s Fiscal Integrity to Meet the Water Quality Funding Needs of Arizona’s Future Generations. In FY 2009, WIFA again was awarded “AAA” credit ratings from Moody’s Investors Service, Standard and Poor’s and Fitch. WIFA continues to maintain these ratings due to its demonstrated commitment to responsible fiscal fund management. These ratings are among the highest awarded and the most sought after. These ratings reduce the cost of borrowing from investors when WIFA issues bonds. This also allows for WIFA to establish its loan rates as low as possible, thereby passing on the savings to its borrowers. An essential measure of the benefit WIFA loans provide to communities throughout Arizona is the savings to Arizona tax payers when compared to traditional market financing. In FY 2009, WIFA’s below-market interest rates saved Arizona’s communities millions of dollars over the term of their loans. FY09 showed a decrease from the prior year in the amount of funds invested (see Figure 1). This was due to continued outlays in the form of loan disbursements while there was no corresponding bonding activities to replenish the cash balances. The authority anticipates closing the next bond transactions in early FY10. Figure 1: FY 2008 & 2009 Funds Invested $300 $293 Millions of Dollars $250 $200 $183 $150 $100 $50 $- FY08 FY09 6 In addition to maintaining fiscal integrity, WIFA investments ensure that growth remains on pace with inflation. Figure 2 compares FY 2008 and FY 2009 investments: • The downturn in the economy led to a decrease in non-program revenue. • WIFA’s loan interest revenues and loan fees increased due to a higher number of loans in repayment status. Figure 2: FY 2008 & 2009 Income by Fiscal Year $25 FY08 FY09 $20.07 Millions of Dollars $20 $15 $15 $12.69 $12 $10.69 $10 $10 $5 $Non-Program Revenues Loan Interest Loan Fees During FY 2009, WIFA maintained its diverse portfolio of borrowers by balancing the needs of low-credit, high priority borrowers with high-credit, low-priority borrowers. Figure 3 demonstrates that more than 65% of funds committed through loans in FY 2009 were to borrowers with a credit rating of ‘A’ or better. The presence of strong borrowers within the portfolio benefits all program participants. 7 Figure 3: FY 2009 Funds Committed Applicant Ratings 10% 23% 67% A - funds committed to applicants with a credit rating of "A" or better. B - funds committed to applicants with a credit rating of "B" NR - funds committed to applicants without a credit rating WIFA performs on site inspections throughout the construction period. The determination of when a site inspection is required is set forth in the loan documents. When a disbursement request is received and it is determined a site inspection is required, one is done prior to the release of funds. Site inspections are correlated to disbursement requests so that the site is inspected prior to the release of funds. Goal 3: Facilitate Access to and Efficiently Deliver Financial and Technical Assistance Financial Assistance During FY 2009 WIFA received 109 applications requesting $556,906,184 in financial assistance for CW projects and 195 applications requesting $656,307,481 in financial assistance for DW projects. WIFA continues to market the use of State Revolving Fund (SRF) program through the use of the Financial Alternatives Comparison Tool (FACT) to small communities to help them make informed decisions regarding their funding options. 8 Figures 4 and 5 demonstrate the dollar amount of disbursements and the number of disbursements made for FY 2008 and FY 2009. The median number of days it takes WIFA to make a disbursement is 6.2 work days. Figure 4: FY 2008 & 2009 Amount Disbursed $300 $262.95 $250 $200Millions of Dollars $156.91 $150 $100 $50 $FY08 FY09 Figure 5: FY 2008 & 2009 Number of Disbursements 247 250 200 195 150 100 50 0 FY08 FY09 9 As seen in Figures 6 and 7, WIFA continues to assist small communities by helping them obtain the best possible funding package available. Figure 6: FY 2008 & 2009 Clean Water Assistance by Population Size 100% 17% 90% 33% 80% 70% 33% 60% 25% 50% 40% 39% 30% 42% Less than 3,500 3,500 to 9,999 10,000 to 99,999 100,000 and above 20% 10% 11% 0% 0% FY08 FY09 Figure 7: FY 2008 & 2009 Drinking Water Assistance by Population Size 100% 10% 13% 90% 80% 30% 70% 50% 60% 20% 50% 40% 13% 30% 35% 20% 10% 5% 13% 13% 0% FY08 FY09 10 Less than 501 501 to 3,300 3,301 to 10,000 10,001 to 100,000 100,001 and above Technical Assistance WIFA’s Technical Assistance Program provides funding to drinking water and wastewater facilities for three types of assistance. See Table 4 for a summary of WIFA’s FY 2009 allocation of Technical Assistance funds. • Project Technical Assistance – WIFA awards funds to individual drinking water and wastewater systems for pre-design and design projects. The purpose of these funds is to enhance readiness to proceed with project construction in circumstances where resources are otherwise limited or lacking. For wastewater projects, project technical assistance may be awarded to local governments and districts. Funds for drinking water projects are available to privately-owned companies in addition to districts and local governments. To allocate limited resources to as many deserving systems as possible, the cap on individual awards is $35,000. Recipients are required to contribute a local match. In FY 2009, WIFA awarded 14 clean water projects for a total of $303,390 (Table 5) and 24 drinking water projects for a total of $495,250 (Table 6). • Operational Technical Assistance – WIFA provides funding for the Arizona Department of Environmental Quality’s Capacity Development Program, as well as a Border Infrastructure Engineer. Through the use of third-party state-approved contractors, the Capacity Development Program provides a system evaluation and/or an operation and maintenance package for public drinking water systems at no cost to the system owner. The Capacity Development Program has been valuable for small drinking water systems, which may not need funding for a particular design project, but are instead in need of technical, managerial, and financial capacity development. The system evaluations can identify future infrastructure needs that the facility may pursue through WIFA’s Technical Assistance or Financial Assistance Programs. In FY 2009, the Capacity Development Program funded system evaluations and operation and maintenance packages for 27 drinking water systems. • Policy Technical Assistance – WIFA also funds the development of guidance and other related activities to benefit a wide range of drinking water and wastewater systems. Examples include guidance on arsenic treatment, formation of a water improvement district, and how to hire an engineer. In FY 2009, WIFA funded a water and wastewater residential rate study. Table 4: FY 2009 Funding by Assistance Type Assistance Type Project Technical Assistance Operational Technical Assistance Policy Technical Assistance Clean Water $350,000 Drinking Water $500,000 $75,000 $225,000 $10,000 $10,000 11 Table 5: FY 2009 Clean Water Design and Planning Technical Assistance Awards Committed Amount Recipient Project Name Ash Fork Sanitary District Wastewater System Pre-design $12,000.00 Camp Verde Sanitary District Local Design Assistance $17,640.00 Casa Grande, City of Sewer Rate Analysis $11,250.00 Cave Creek, Town of New Wastewater Treatment Plant Design $35,000.00 Coolidge, City of Southeast Sewer Master Plan $17,500.00 Holbrook, City of Wastewater System Infrastructure Needs Assessment $12,500.00 Kingman, City of Downtown Wastewater Treatment Facility $17,500.00 Marana Unified School District Marana High Waste Treatment Facility Miami, Town of Wastewater System Inspection $35,000.00 Nogales, City of Nogales Wastewater Flow Measurement Study $35,000.00 Shonto Community Development Cooperation Wastewater Planning Show Low, City of Wastewater Treatment Plant Expansion Master Plan $35,000.00 Springerville, Town of Wastewater Capital Improvement Plan $10,000.00 Wilcox, City of Treatment System Evaluation and ReDesign $35,000.00 14 Projects Totals $15,000.00 $303,390.00 Taylor Wastewater Treatment Facility 12 $15,000.00 Table 6: FY 2009 Drinking Water Projects Technical Assistance Awards Committed Amount Recipient Project Name Alpine Domestic Water Improvement District Systems Interconnect Design $32,500.00 Apache Junction Water Utilities CFD Water System Master Plan $35,000.00 Arivaca Townsite Cooperative Water Company Water System Improvements $14,750.00 Avra Water Co-op Drinking Water System Improvements $17,750.00 Holiday Hills DWID Rate Study Joseph City Utilities Reservoir Design $25,000.00 Livco Water Co System Evaluation $10,000.00 Mammoth, Town of Water System Distribution Improvements $11,250.00 $3,750.00 Marana Domestic Water Improvement Master Plan Development District $18,750.00 Maricopa Mountain DWID Well #1 Arsenic Treatment $15,000.00 Navajo Tribal Utility Authority Water Distribution Loss Study $35,000.00 NDWR-Water Management Branch Dilcon Hospital Water Supply $20,500.00 Park Water Company Overall System Capacity Building $7,750.00 Ponderosa Park DWID Manzanita Well Connection $7,500.00 Porter Creek DWID Integration of New Well $5,000.00 Saint David Utilities Kokopelli Springs Resort Drinking Water $16,000.00 San Luis, City of Water System Design $30,000.00 San Simon Water Company Fluoride Removal $30,000.00 Sipalulovi Village Drinking Water Infrastructure Assessment and Upgrade Pre-Design $35,000.00 St. Johns, City of Well Water Transmission Line #3 $35,000.00 Star Valley, Town of Water Resource Master Plan $35,000.00 Tombstone, City of Water System Assessment $27,500.00 Utility Systems, LLC Christopher Creek Haven Water Tank Replacement $15,000.00 Why Utility Co., Inc. Special District Formation $10,000.00 24 Projects Totals 13 $493.000.00 Goal 4: To Coordinate with Other Funding Sources, Technical Resources and Regulatory Authorities WIFA continues to provide outreach to small rural communities by heading the Rural Water Infrastructure Committee (RWIC), an informal partnership that includes several federal and state funding agencies and technical assistance providers. The RWIC held a project meeting in Holbrook in June 2008 and an executive committee meeting in January 2009. There were also two meetings held in April 2009 in conjunction with our design and planning technical assistance workshops in Flagstaff and Tucson. Through the RWIC, the Rural Community Assistance Corporation offered two one-day trainings for financial managers on the topic of “rate structure”. Training opportunities were offered and will continue to be offered. The Yuma Colonias B & C project is a successful example of RWIC collaboration. This project will be receiving co-funding through WIFA, USDA-Rural Development, Border Environmental Cooperation Commission (BECC) and the North American Development Bank (NADB). The Yuma Colonias B & C project will connect the Avenue B & C Colonias Improvement District to the City of Yuma water pollution control facility and bring much needed sewer service to the area. In addition to working with the RWIC partners, WIFA continues to maintain a high level of coordination with the Arizona Department of Environmental Quality increasing communication and information sharing by meeting on a quarterly basis and joining forces to better serve Arizona’s rural communities. Through WIFA’s leadership, the RWIC has increased its visibility as an organization providing assistance and guidance to drinking water and wastewater systems throughout the state. The RWIC website (www.rwic.az.gov) includes an on-line project information form which is distributed to all committee members automatically, and a “Members Online Discussion Board” to improve and encourage better communication. A database tracks requests for assistance from customers and any commitments made by a RWIC partner towards the project. WIFA is the proud recipient of EPA’s 2009 Drinking Water State Revolving Fund-Award for Sustainable Public Health Protection for Innovative Use of DWSRF Funding to Improve Water Quality 14 Section II. American Recovery and Reinvestment Act of 2009 WIFA staff started preliminary planning for ARRA in early November and the Act was signed into law on February 17, 2009. Below is a timeline on the progress of WIFA’s ARRA program through FY 2009: • • • • • • • • • • • • March 3 - Draft ARRA Grant applications with attachments sent to EPA Region 9 March 6 - Response deadline for ARRA Project Priority List (PPL) Applications March 16 -Draft ARRA Intended Use Plan distributed and posted on the WIFA website March 16 -WIFA ARRA CW and DW PPL sent to Governor’s Office March 18 -WIFA Board of Directors approved ARRA Policy 4.009 and reviewed the Draft ARRA Supplemental IUPs including Draft PPLs April 13 - Public Meeting to receive comments on ARRA IUPs April 15 - WIFA Board of Directors approved both DW and CW ARRA IUP (including ARRA PPL), staff presented draft ARRA Loan Document Exhibit, ARRA 1511 Project Certifications, and discussed previously approved loan resolutions that may qualify for ARRA April 19 - EPA Region 9 awards ARRA Capitalization Grants May 27 - WIFA Board Meeting – Board approved eight CW ARRA Loan Resolutions (Binding Commitments), and 20 DW ARRA Loan Resolutions June 24 - WIFA Board Meeting - Board approved four CW ARRA Loan Resolutions and 10 DW ARRA Loan Resolutions June 22 – ARRA TA IUP Public Meeting June 30 – EPA Region 9 approval of the ARRA TA 2010 Work Plan (IUP) WIFA received 114 CW ARRA Applications and 203 DW ARRA applications. Applicants were required to certify the project would retain or create jobs, to certify compliance with Fair Wage (Davis-Bacon) and American Use requirements, and to certify project milestones including construction start dates. WIFA and EPA conducted two special training sessions for ARRA recipients. The first training was conducted by the Office of the Inspector General and focused on fraud and abuse prevention. This training was held in Phoenix, Flagstaff and Tucson. The second training was conducted by Region 9 and focused on all ARRA reporting requirements, including Buy American provisions and the Davis-Bacon Act in Phoenix. 15 Section III. Statement of Finances Statement of Financial Position Assets During FY 2009, total assets remained the same as FY 2008. FY 2008 FY 2009 WIFA's Assets - $ 1.2B FY09 WIFA's Assets - $ 1.2B FY 08 2% 8% 1% 0% 16% 15% 84% 74% Cash & Investments Loans Cash & Investments Loans Reserves Receivables & Capital Assets Reserve Receivables & Capital Assets Liabilities During 2009, WIFA’s liabilities decreased. FY 2008 FY 2009 WIFA's Liabilities - $ 826.5M FY 08 WIFA's Liabilities - $ 796.5M FY09 1% 4% 96% Short Term Liabilities 99% Long Term Liabilities Short Term Liabilities Long Term Liabilities Net Assets WIFA’s net assets continue to grow, primarily the result of capital contributions and loan activities. FY 2008 FY 2009 WIFA's Net Assets - $ 401.7M FY09 WIFA's Net Assets - $ 383.9M FY08 15% 16% 85% 84% Restricted Net Assets Restricted Net Assets Unrestricted Net Assets 16 Unrestricted Net Assets Statement of Revenues, Expenses, and Changes in Fund Net Assets PROGRAM REVENUES Interest Income Debt Management Fees TOTAL PROGRAM REVENUE $ $ $ FY08 14,694,820 9,892,657 24,587,477 FY09 $ 20,067,050 $ 12,689,699 $ 32,756,749 PROGRAM EXPENSE Interest Expense Depreciation Administration & Set Asides Hardship Grant Expense ARRA Financial Assistance Technical Assistance TOTAL EXPENSES $ $ $ $ $ $ $ 26,578,875 5,742,353 75,354 516,420 32,913,002 $ 34,097,678 $ $ 9,428,393 $ 29,248 $ 887,248 $ 612,004 $ 45,054,571 NET INCOME $ (8,325,525) $ (12,297,822) NONPROGRAM REVENUES Administrative Grants Investment Earnings TOTAL NONPROGRAM REVENUES $ $ $ 1,991,818 10,034,896 12,026,714 $ 3,104,125 $ 7,563,645 $ 10,667,770 INCOME BEFORE CONTRIBUTIONS $ 3,701,189 $ (1,630,052) CONTRIBUTED CAPITAL - FEDERAL CONTRIBUTED CAPITAL - STATE CHANGE IN NET ASSETS $ $ $ 46,384,513 2,095,100 52,180,802 $ 19,465,363 $ $ 17,835,311 TOTAL NET ASSETS - Beginning of Year TOTAL NET ASSETS - End of Year $ 331,689,550 $ 383,870,352 $383,870,352 $401,705,663 17 Statement of Net Assets ASSETS Cash Investments Accrued Interest Receivable Capital Assets (net of depreciation) Debt Management Fees Receivable Loans Deferred Bond Issue Costs TOTAL ASSETS FY08 $ 195,621,994 $ 97,100,544 $ 10,283,905 $ $ 5,001,451 $ 897,762,835 $ 4,566,212 $ 1,210,336,941 FY09 $ 85,989,140 $ 97,118,345 $ 12,444,271 $ $ 5,790,963 $ 992,641,348 $ 4,253,609 $1,198,237,676 LIABILITIES AND NET ASSETS LIABILITIES Accrued Payroll Compensation Absences Interest Payable Bonds Payable Unamortized Bond Premiums Deferred Amount on Retired Bonds Loan Reserve TOTAL LIABILITIES $ $ $ $ $ $ $ $ 3,272 65,036 8,943,764 770,260,000 51,799,488 (6,925,971) 2,321,000 826,466,589 $ 7,040 $ 65,090 $ 9,052,313 $ 742,840,000 $ 48,603,062 $ (6,371,739) $ 2,336,247 $ 796,532,013 NET ASSETS Net Assets Invested in Capital Assets Restricted for Capitalization Grants Unrestricted TOTAL NET ASSETS $ $ $ $ 321,576,107 62,294,245 383,870,352 $ $ 341,021,030 $ 60,684,633 $ 401,705,663 TOTAL LIABILITIES AND NET ASSETS $ 1,210,336,941 $1,198,237,676 18 Section IV: WIFA Board of Directors WIFA’s 12 member Board of Directors provides leadership in setting the Authority’s administrative policies and approving loans and other assistance for borrowers. WIFA’s Board of Directors offer expertise on environmental, financial, business, and governmental issues. Benjamin H. Grumbles Chairman Ron Doba Municipalities >50,000 population Mark Herberer Sanitary Districts from Counties <500,000 population Cynthia Seelhammer Counties >500,000 population Paul T. Gardner Water Systems >500 Customers Deb Sydenham Arizona Dept. of Commerce Karen Smith Arizona Dept. of Water Resources William Garfield Water Systems <500 Customers Steve Olea Arizona Corporation Commission Alberta Tippeconnic Tribal Representative Mayor Stanley Gibson Municipalities <50,000 and Counties <500,000 Mark Swenson Office of State Treasurer 19 Section V: WIFA Staff WIFA’s staff has broad state and local government experience as well as private sector business and finance experience. WIFA’s staff is committed to providing exceptional service to Arizona’s communities. Judy Navarrete Executive Director Sandy Sutton Veronica Rivera Chief Financial Officer Communications Director Trish Incognito Angie Valenzuela Senior Loan Officer Senior Loan Officer Jon Bernreuter Bryan Christopher Environmental Program Supervisor Network Administrator Ruby Hernandez James Mañalac Assistant to the Director Systems Analyst Melanie Ford Don States Environmental Program Specialist Controller Angelica Romero Kari MacIsaac Business Manager Staff Accountant Yolanda Mendoza Julie Flores Loan Documentation Specialist Financial Analyst Sara Konrad Rebecca Gomez Environmental Program Specialist Staff Accountant 20 21 22 Credits: Editor: Veronica Rivera Co-Editor: Sandy Sutton Other Contributions: James Mañalac Technical Review: Judy Navarrete, Don States, Sara Konrad, Jon Bernreuter Maps: Jean Ann Rodine Water Infrastructure Finance Authority of Arizona-WIFA 1110 West Washington Street. Suite 290 Phoenix, AZ 85007 Phone: 602-364-1310 Fax: 602-364-1327 www.azwifa.gov Printed on recycled paper