WATER
INFRASTRUCTURE
FINANCE
AUTHORITY

12/31/2014

2014 Annual Report
The

Mission of the Water Infrastructure Finance Authority is to

maintain and improve water quality in Arizona by providing financial
assistance and technical assistance for basic water infrastructure.

Water Infrastructure Finance
Authority
2014 ANNUAL REPORT

OVERVIEW OF WIFA
The Arizona Legislature established the Water Infrastructure Finance Authority of Arizona (WIFA) in
1989. As an independent agency of the state of Arizona, WIFA works to maintain and improve water
quality in the state by financing the construction, rehabilitation and improvement of drinking water and
wastewater facilities.
Maintaining water quality in Arizona requires communities to make large investments in drinking water
and wastewater infrastructure. State revolving funds are the primary resources for helping communities
meet their continuing and significant water infrastructure needs. WIFA maintains Arizona’s revolving loan
fund programs, capitalized by the Environmental Protection Agency (EPA), to provide low cost financing
for water infrastructure projects.

Sustainable Infrastructure
The effective management of water infrastructure is one of the main challenges faced by water systems
across the nation and in Arizona. Sustainable infrastructure and systems are essential to ensuring the
environmental and economic sustainability of communities.
Sustainability can be achieved through strong infrastructure planning and management practices. To help
communities in Arizona, WIFA provides low-interest loans and planning and design technical assistance
funding for drinking water and wastewater projects designed to ensure safe, reliable drinking water and
proper wastewater treatment. Most of WIFA’s funding is directed toward its loan program which can
assist with design, improvement, construction and acquisition. WIFA’s technical assistance program is
available for the planning and design phase of an infrastructure project. A wide variety of drinking
water and wastewater projects can be funded through WIFA.

Example projects include storage tanks,
meters, wells and booster pumps, arsenic
treatment systems, water and sewer distribution
line replacement, solar, new wastewater
facilities, plant upgrades, and reclaimed water
projects. WIFA can also fund stormwater
management and green infrastructure projects.

2014 Annual Report

Page 1

Organization
WIFA is governed by a twelve-member Board of Directors, who provides leadership in setting WIFA’s
administrative policies and approving loans and other assistance for borrowers. WIFA’s Board of
Directors offers expertise on environment, finance, business, and government policies.
• Henry Darwin, Chairman - Arizona Department of Environmental
Quality
• Paul Gardner, Vice Chairman - Water systems which serve more than
500 people
• Ron Doba - Municipalities of more than 50,000 residents
• Kevin Donnellan - Office of State Treasurer
• Tiffany Frechette - Arizona Department of Commerce
• William Garfield - Water systems which serve less than 500 people
• Stanley Gibson - Municipalities with population less than 50,000 and
Counties less than 500,000
• Mark Heberer - Sanitary Districts from Counties less than 500,000
• Michael Lacey - Arizona Department of Water Resources
• Steve OIea - Arizona Corporation Commission

WIFA
Board
Members

There are currently two vacant positions representing tribes and counties with
population more than 500,000.
WIFA is administered by Executive Director, Sandra Sutton, Chief Financial Officer, Trish Incognito,
Controller, Mike Clark, and a strong team of 15 additional staff. WIFA’s friendly and helpful 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.

Sandy Sutton
Trish Incognito
Mike Clark
Susan Craig
Julie Flores
Melanie Ford
Rebecca Gomez
Brenda Guerra
Rodney Held
Ruby Hernandez
Sara Konrad
James Manalac
Yolanda Mendoza
Andrew Smith
Angelica Romero
Chris Unnewehr
Angie Valenzuela

2014 Annual Report

Executive Director
Chief Financial Officer
Controller
Communications Director
Accounting Supervisor
Technical Program Supervisor
Accountant
Administrative Assistant
Senior Loan Officer
Loan Processing Coordinator
Environmental Program Supervisor
Database Administrator
Business Manager
Environmental Program Specialist
Accountant
Network Administrator
Senior Loan Officer

WIFA Board
(12 members)

Executive Director

Administrative
Financial
Fiscal/Loan Servicing
Page 2

WIFA’s Credit Profile
WIFA maintained “AAA” credit ratings (the highest level of ratings) from Moody’s, Standard and Poor’s,
and Fitch. The ratings are based on:
· Program structure that provides significant over-collateralization to the bonds
· Strong credit quality of the local borrowers
· Loan portfolio and investments (Figure 1) with the ability to withstand substantial losses to revenue
· Large size and diversity of loan portfolio
· Strong management practices and policies

$400

Millions of Dollars

$350

$300

$315

$324

$250

$200

$150

$100

FY13

FY14

Figure 1: Funds Invested Dollars invested are primarily used to provide
security for WIFA’s bond portfolio and can be used to originate loans to
WIFA borrowers. Interest generated from the invested funds helps
subsidize WIFA borrower rates.
These ratings support WIFA’s low cost of borrowing from investors when WIFA issues bonds. In turn, this
allows WIFA to pass on the benefit to its borrowers and the citizens of Arizona in the form of low interest
loans. In FY 2014, WIFA’s average interest rate for public entities was 2.74%.
WIFA is able to maintain a diverse portfolio of borrowers by balancing the needs of low-credit
borrowers with high-credit borrowers. The presence of strongly rated borrowers within the portfolio
benefits all program participants.
Another indicator of WIFA’s responsible fiscal fund management is the annual audit performed by Moss
Adams LLP. WIFA’s 2014 Audited Financial Statements are attached and available on WIFA’s website www.azwifa.gov/publications.

2014 Annual Report

Page 3

FINANCIAL ASSISTANCE
WIFA operates as a “bond bank” and is able to issue water quality bonds on behalf of communities for
water and wastewater infrastructure. Through an active portfolio and sound financial management, WIFA
provides significant savings to borrowers by offering loans with below market interest rates.
WIFA’s means for providing low interest financial assistance are the Clean Water Revolving Fund (for
publicly-held wastewater treatment facilities) and the Drinking Water Revolving Fund (for both publicly
and privately-held drinking water systems). Both funds were established by the EPA and are funded by
federal capitalization grants, state matching funds, loan repayments and WIFA bond proceeds.
In addition to loans, WIFA also offers planning and design technical assistance funding. Twice per year,
funding awards are made to eligible wastewater and drinking water systems for the planning or design
phase of a project. The purpose of the program is to help prepare water and wastewater facilities for
the construction of a capital improvement project.
WIFA is making a difference in Arizona. Over $2 billion has been invested in the state since WIFA’s
inception in 1989 and WIFA has funded more than 400 projects across the state. Each project results in
the creation of construction and engineering jobs.

2014 Highlights
•

Approved 13 new loans and one amendment, and provided more than $47.5 million in financial
assistance to cities, towns, districts and private water companies (Figures 2 & 3)
350

Loans (in millions) 13.4

300

36

65.5

120

147

39

164 114.5 201 303.3 161 330.9 93.5 37.2 55.3 47.5

250
200
150
100
50
0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Loans (in millions) 13.4 36 65.5 120 147
39
164 114.5 201 303.3 161 330.9 93.5 37.2 55.3 47.5

Figure 2: Amount of Loan Originations by Fiscal Year
2014 Annual Report

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50
45
40
35
30
25
20
15
10
5
0
Number of Loans

1999
21

2000
15

2001
23

2002
29

2003
28

2004
13

2005
18

2006
21

2007
19

2008
37

2009 ARRA 2010
20
46
35

2011
18

2012
16

2013
19

2014
13

Figure 3: Number of Loan Originations by Fiscal Year

•

Maintained “AAA” credit ratings (the highest level of ratings) due to demonstrated commitment to
responsible fiscal fund management

•

Funded five sustainable (“green”) construction projects focused on energy and water efficiency
(~$9.5 million)

•
•

Co-financed ten projects with contributions from other agencies and local entities
Processed loan documents, on average, in less than one week - from Board action (loan resolution
approval) to distribution of loan documents

•

Processed $65 million in disbursements and administered disbursement requests, on average, in six
business days

•
•

Provided $37 million in funding to maintain or achieve compliance
Assisted disadvantaged communities by providing $3.6 million in forgivable principal for four
projects

•

Conducted the 2013-14 Arizona Water and Wastewater Residential Rates Survey and increased
participation to include 90% of the state’s utilities. The survey was completed at the end of FY
2014, and WIFA released a new and improved Rates Dashboard at the start of FY 2015. This
free, interactive rates and financial benchmarking dashboard is designed to help Arizona utility
managers, finance directors, and council/board members with rates analyses and rate-setting
decisions. Additional associated resources include a summary report and detailed rate tables, and
are available on WIFA’s new Water Rates Survey webpage at www.azwifa.gov/waterrates/.

2014 Annual Report

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•

100%

Provided outreach and assistance to small and rural communities - over 50% of drinking water
loans (Figure 4) and 75% of new clean water loans for wastewater projects (Figure 5) were
provided to communities serving fewer than 10,000 people

14.3%

100%

11.1%

90%

90%
80%

21.4%

70%

70%
60%

40.0%

80%

33.3%
75.0%

21.4%

50%

60%

11.1%

40%
30%
42.9%

44.4%

20.0%

50%

Less than 501
501 to 3,300
3,301 to 10,000
10,001 to 100,000
100,001 and above

Less than 3,500
3,500 to 9,999

40%

10,000 to 99,999

30%

20%

20%

10%

10%

100,000 and above

40.0%
25.0%

0%

0%

FY13

FY13

FY14

Figure 4: Drinking Water Assistance by Population
Percentage based on number of loan agreements.

FY14

Figure 5: Clean Water Assistance by Population

Percentage based on number of loan agreements. All new clean water loan
agreements in FY2014 were provided to communities serving less than 20,000.

Loan Agreements Executed in FY 2014
WIFA executed 13 new loans and one amendment in FY 2014, including nine drinking water loans and
five wastewater loans (four new loans and one amendment). The following water and wastewater service
providers obtained financing through WIFA:

Borrower
Drinking Water Loans
*City of Somerton
Granite Mountain Water Company
*Town of Oro Valley
Payson Water Company
Holiday Water Company
Humboldt Water Company
*City of Globe
Apache Junction Water Utilities
Community Facilities District
Town of Queen Creek

2014 Annual Report

Project Title

Amount ($)

Water Meter/MXU Retrofit

$912,000

Well #5 Replacement & Tank #3
Addition

$181,320

Advanced Metering Infrastructure &
Meter Replacement Program
Mesa del Caballo Supplemental
Water Supply Project
Water System Upgrades - Well,
Storage & Distribution
Water Treatment Facility
Water Distribution System
Improvements
Water Treatment Facility and Water
Resource Acquisition
Acquisition of H2O, Inc. Water Utility

$5,000,000
$275,000
$225,000
$301,528
$5,500,000
$9,077,296
$16,000,000

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Borrower

Project Title

Amount ($)

Wastewater Loans
*City of Douglas
*City of Bisbee

Pinewood Sanitary District
Town of Quartzsite
City of Buckeye
Drinking Water Total
Wastewater Total
TOTAL
* Green project

Douglas WWTP Solar Power
Generation System
San Jose WWTP Solar Addition
Sewering of East and West
Commercial Areas, North Lodge
Subdivision and Northernaire
Subdivision
Quartzsite WWTP
(Loan Amendment)

$1,300,000
$1,600,000

$3,000,000
$1,653,112
$2,500,000
$37,472,144
$10,053,112
$47,525,256

GREEN PROJECT RESERVE
WIFA reserves a portion of the EPA Clean Water
capitalization grant for sustainable construction efforts
such as water efficiency, energy efficiency, green
stormwater infrastructure and other environmentally
innovative projects. WIFA offers a financial incentive for
projects that qualify as green according to EPA
guidelines.

Solar at Water Treatment
Facility
City of Somerton

2014 Annual Report

Page 7

WIFA provides funds for both rural and
urban communities, and has financed
projects all over the state. In FY 2014, WIFA
executed five (four new loans and one
amendment) clean water loans (wastewater
projects) for a total of $10,053,112 and
nine drinking water loans for a total of
$37,472,144.

PLANNING AND DESIGN TECHNICAL ASSISTANCE FUNDING
WIFA provides planning and design technical assistance funding to cities, towns, special districts, tribal
communities and Arizona Corporation Commission-regulated private water companies to help prepare
water and wastewater facilities for capital improvement project construction. Typically, awards are made
to facilities with limited resources that need assistance in completing the planning and/or design phase of
an infrastructure project. Funding is provided to employ the services of an engineer or other consultant to
complete these activities. Awards are capped at $35,000 per project. Project examples include:
•
•
•
•
•
•
•

Feasibility Studies
Rate Studies/Financial Audits
District formation
Capital Improvement Plans
Preliminary Engineering Reports
Environmental Assessments
Engineering Plans and Specifications

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The following planning and design technical assistance awards were made in FY 2014:

Awardee

Project Title

Amount ($)

Drinking Water Technical Assistance
Villa Grande Domestic Water
Improvement District
*Ray Water Company
City of Globe
Community Water Company of
Green Valley
Elfrida Water Improvement District

Avra Water Co-op
Clay Springs DWID
Payson Water Company
Mayer DWID
Picacho Water Improvement
Corporation
Alpine DWID
Town of Fredonia
City of Nogales

Nitrate Mitigation
Water and Energy Efficiency Study
Distribution System Improvements PER
High Sulfate Impact on Arsenic Filtration
Systems Pilot Study
Distribution System Improvements PER
and Environmental Report
Waterline Replacement Program
Preliminary Engineering Report for
System Improvements and Water Loss
Remediation
East Verde Park Supply Study
Production Well Aquifer Study, Energy
Efficiency Analysis & SCADA
Preliminary Design
Design of Replacement
Water System Campus
San Francisco River Waterline
Relocation Project
Filtration Plant Backwash Basin Reengineering
Extreme West Pressure Zone
Storage Tank

$15,877
$35,000
$35,000
$30,000
$24,600
$23,654

$14,612
$35,000
$34,950
$21,000
$15,900
$18,602
$9,936

Wastewater Technical Assistance
City of Casa Grande
*City of Mesa
*Pima County Regional
Wastewater Reclamation
Department
City of Flagstaff
*City of Somerton
*City of Tucson
Drinking Water Total
Wastewater Total
TOTAL
* Green project

2014 Annual Report

Water Reclamation Facility Selenium
Reduction Study
Low Impact Development Toolbox (LID
Tools)
Wastewater Reclamation Facility
Energy Audits
Wildcat Hill WWTP POC Monitor Well
Design
Effluent Management Feasibility Study
Green Stormwater Infrastructure for
Tucson’s Airport Wash

$18,850
$35,000
$35,000
$18,472
$20,956
$35,000
$ 314,131
$ 163,881
$ 478,012

Page 9

CUSTOMER SURVEY
In October 2013, WIFA conducted a customer survey to improve processes and services provided. WIFA
requested feedback based on customers’ experiences, and the information was used to make business
improvements to provide better customer service to water and wastewater providers across Arizona.
The conclusions of the survey include:
•
•
•
•
•
•

•
•

71% of the people who responded had obtained a loan or technical assistance award from
WIFA so the data received was valuable based on real customer experience.
92% of respondents are extremely satifisfied (73%) or moderately satisfied (19%) with WIFA’s
customer service (ability to answer questions) and professionalism.
75% are extremely satisfied (53%) or moderately satisfied (22%) with WIFA’s convenience for
funding needs and interest rates offered.
79% are extremely satisfied (41%) or moderately satisfied (38%) with WIFA’s application
process.
73% are extremely satisfied (45%) or moderately satisfied (28%) with WIFA’s disbursement and
repayment process.
100% of respondents say WIFA is responsive. Comments on responsiveness include:
o “You have absolutely saved our small water company.”
o “Staff was extremely helpful even before we began the application process.”
o “Staff has been extremely helpful and helped me through the entire process.”
o “WIFA was always there to answer questions or supply information.”
98% are satisfied with WIFA (70% extremely satisfied, 22% moderately and 6% average
satisfaction).
92% of respondents will consider WIFA when looking for a loan. Of the people who have
received a WIFA loan, 76% answered that they will come to WIFA again.

Based on suggestions from the survey, WIFA is currently working on a new electronic application system that
will be complete in FY2015.

MARKETING AND OUTREACH
The following is a list of WIFA’s outreach and marketing efforts for FY2014:
• Wrote an editorial titled Ailing Water Infrastructure - WIFA Can Help, which was distributed to
WIFA’s listserv (over 400 people) and published in the Arizona Water Association’s Kachina News.
Resulted in interest/leads from a new group, the Maricopa County Community Development
Advisory Committee.
• Provided sponsorship to the Association of General Contractors (AGC) of America and a member
profile to be featured in AGC’s E-bulletin sent to over 5,000 construction related companies,
public/private owners and affiliated organizations.
• Held five funding workshops around the state to share information on the availability of financial
assistance for drinking water, wastewater and stormwater projects. Outreached to over 80
potential customers.

2014 Annual Report

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•

Created a quarterly update, which covers all projects (loans and planning and design technical
assistance projects) completed during the quarter. The update highlights each of the project’s
successes, and demonstrates the results of the funding that WIFA provides to Arizona’s
communities. The updates are multi-purpose as they are sent to the WIFA Board of Directors and
published in the Arizona Water Association’s Kachina News publication. Q1 through Q3 updates
are attached for reference.
Attended 15 conferences and numerous outreach events. Reached nearly 1,000 people.
Sponsored the League of Cities and Towns conference, and provided WIFA brochures in the
conference bags distributed to attendees (~800). The Bronze level sponsorship includes public
recognition of sponsorship on the conference program, signage, mobile app, website, and at the
opening general session. WIFA was also able to attend the sponsor reception attended by elected
officials.
Sent out numerous e-mails (~25) throughout the year to WIFA’s listserv (~400 people), containing
information about upcoming events, trainings, resources and funding opportunities.
Organized and presented at the Rural Water Infrastructure Committee Funding Forum attended
by ~60 people.
Partnered with Dan McNicol, best-selling author and former White House Appointee, and Case
Construction on the Dire States Tour to raise awareness of ailing water infrastructure. WIFA
organized a tour with the City of Buckeye to demonstrate water infrastructure projects going on in
Arizona and also presented at the Dire States Tour event held in Phoenix and attended by ~50
people.
Developed a new video about WIFA funding with Case Construction and the City of Buckeye
which will be used as an outreach tool at conferences and on social media outlets.

•
•

•
•
•

•

RURAL WATER INFRASTUCTURE COMMITTEE (RWIC)
Led by WIFA, the Rural Water Infrastructure Committee (RWIC) is an informal partnership of various
organizations, mainly federal and state agencies, who provide loans, grants and technical assistance to
Arizona’s rural communities. RWIC serves as a “One-Stop Shop” for rural communities with a population
of less than 10,000.
RWIC core members include: WIFA, Arizona Department of Environmental Quality (ADEQ), USDA Rural
Development (USDA-RD), Arizona Department of Housing (ADOH), North American Development Bank
(NADBank), Border Environment Cooperation Commission (BECC), Rural Community Assistance Corporation
(RCAC), Governor’s Office of Energy Policy and U.S. Department of Housing & Urban Development
(HUD).
RWIC: One-Stop Shopping in Arizona
•
•

A resource for applicants to locate federal, state and local financial assistance programs
Affordable funding solutions and technical assistance to small, rural communities throughout
Arizona

2014 Annual Report

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In FY 2014, RWIC held regular quarterly meetings utilizing the new meeting format where small
communities present about their project needs and Executive Committee members discuss and follow-up
with how they can provide assistance. On December 3rd, 2013, RWIC held its third annual Funding
Furum, which featured a presentation on water/wastewater energy efficiency followed by member
agencies presenting on the funding and technical assistance they could offer. After the presentations and
a sponsored lunch, RWIC partner agencies set up informational booths and met with communities one-onone to discuss potential projects. RWIC plans to continue the combined training/funding format next year.

Forum Evaluation
New this year, WIFA requested that the attendees of the RWIC Funding Forum fill out an evaluation
survey. The results were very positive.
Results of the evaluation include:
•
•
•
•

26 out of 27 attendees rated the usefulness of the information on water and wastewater energy
efficiency practices as very good or good.
26 out of 27 attendees rated the information provided in the presentations on funding
opportunities as very good or good.
100% of the respondents rated the format/organization of the funding forum as very good or
good.
100% of the respondents rated the information as relevant to their work.

There were some helpful comments and ideas for future funding forums (e.g. case studies of co-funded
projects, handouts on the funding sources, rates and finance training) that WIFA will implement next year.

###

2014 Annual Report

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QUARTERLY UPDATES
MAKING A DIFFERENCE IN ARIZONA
Completed Projects: Q1 - Q3 2014 Updates
Below is a summary of the projects that have been completed during the year, both through
construction loans and planning and design technical assistance funding.
Q1 Summary:
11 projects completed
• $61,294,603
o $61,062,012 in loans
o $232,591 in technical assistance funding
• 10 projects completed by small/rural communities
o 6 drinking water projects
o 4 clean water (wastewater) projects
• 1 clean water (wastewater) project completed by a large community (Peoria)
Completed Loans
Clarkdale, Town of
Population: 4,097
Twin 5s Water Main Replacement
Loan Amount: $1,531,961
Project Results: The Town of Clarkdale replaced and relocated two above-ground 5-inch steel water
mains. The 90-year old exposed water mains were vulnerable to natural disasters and introduction of
chemical or biological agents. By implementing these improvements, the Town of Clarkdale has
eliminated the security risk and resolved operation and maintenance issues. The project won WIFA’s
2013 Drinking Water Project of the Year Award.

Lake Havasu, City of
Population: 18,625 (project area)
Lake Havasu City Wastewater System Expansion PY 8
Loan Amount: $59,090,051
Project Results: This is the last Lake Havasu City loan for the sewer project, referred to as Project
Year 8 (PY8). This phase included sewering the Chemehuevi, Mockingbird and Trotwood areas, as well
as a Water Resource Recharge Project, and work on the wastewater treatment plant.

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Oak Creek Water Co., No. 1
Population: 1,800
Oak Creek Water Infrastructure Project
Loan Amount: $440,000
Project Results: The project included various infrastructure upgrades to the small water system
located in Sedona, including a new 116,000 gallon reservoir to meet storage criteria, pipeline
replacement and necessary upgrades to an existing booster pump station.
Completed Technical Assistance Projects
Community Water Company of Green Valley
Population: 20,000
High Sulfate Impact on Arsenic Filtration Systems Pilot Study
TA Amount: $30,000
Project Results: Community Water completed a pilot study to determine the potential effects of an
approaching sulfate plume on its arsenic filtration system. The Company states that they have
determined the limitations and design requirements needed to continue delivery of safe water and will
be able to make more informed decisions on treatment facility modifications.
Kachina Village Improvement District
Population: 2,899
Energy Audit of Drinking Water System
TA Amount: $35,000
Project Results: The funding that was awarded allowed the Improvement District to complete an
energy audit of their water system. Currently they are looking at a cost/benefit analysis of the
recommendations from the energy audit to determine which recommendations will be implemented.
Livco Sewer Company
Population: 50
Create Improvement District and Repair Pumps
TA Amount: $15,050
Project Results: The project created an Improvement District to take over the failing system. In
addition to the District formation, the funding was also used for a facilities assessment report to
prioritize necessary repairs and replacements. They are considering WIFA as a source of financing for
fixing priority items such as pumps and manholes.
Park Water Company
Population: 355
Master Plan
TA Amount: $27,741
Project Results: Park Water Company completed system mapping, modeling and a master plan to
address low pressure, dead end lines, undersized lines and water loss.
Peoria, City of
Population: 156,780
Butler Drive WRF Reclaimed Water System Expansion-Phase II
TA Amount: $35,000
Project Results: This project involved the design of a new booster pump station and 100,000 gallon
storage reservoir to support expansion of the reclaimed water system in the Old Town area and
Pioneer Park of Peoria. The project also included a recharge well impact study.

2014 Annual Report

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Wellton, Town of
Population: 1,295
Water Loss Study and Valve Assessment
TA Amount: $34,500
Project Results: The project has identified leaks and valves to be repaired or replaced throughout the
system. They are considering WIFA as a source of financing for the line replacements as well as for a
project to upgrade their water treatment plant.
Wickenburg, Town of
Population: 5,590
Wickenburg Wastewater Treatment Plant Solar Project
TA Amount: $35,000
Project Results: The project allowed the Town of Wickenburg to complete the design of a 350kW
Photovoltaic (PV) Solar Array to capture enough solar power during the daylight hours to run the facility
at 100%.
Yuma County
Population: 190 (project area)
Gila Acres District Formation, Sewer Collection and Conveyance
TA Amount: $20,300
Project Results: This project addressed a cluster of homes on septic systems in a
commercial/industrial sector of the City of Yuma. The homes are within proximity to a levee and are at
risk for flooding, the groundwater table is too high for effective use of septic systems, and the Yuma
County Environmental Division has received numerous complaints of septic system failures in the past
twenty years. The project began the district formation process and produced a Preliminary Engineering
Report and Environmental Report so that residents can be connected to the City of Yuma’s municipal
sewer system. The County states they will likely come to WIFA for a portion of the financing once the
district formation is complete. (Note: Gila Acres was renamed Valle Verde Estates during this process.)

2014 Annual Report

Page 15

Q2 Summary:
5 projects completed
• $11,534,325
o $11,499,475 in loans
o $34,850 in technical assistance
• 4 drinking water projects
o 2 completed by small/rural communities (less than 10,000)
• 1 clean water (wastewater) project
Completed Loans
City of Eloy
Population: 11,125
Houser/Toltec Waterline Improvements
Loan Amount: $2,000,000
Project Results: This project addressed inadequate water distribution infrastructure to meet the needs
of customers in the Toltec Highway and Sunland Gin Road areas located in the western portion of the
City of Eloy. To secure sufficient distribution and loop the system to increase reliability, the City made
improvements to the existing booster station, including new pumps to provide a capacity of 4000 gpm;
added new 16-inch water main from the booster station to Toltec Highway; and added new 12-inch
water main along the Toltec Highway to connect to the existing 12-inch water main currently serving
Sunland Gin Road.

Metropolitan Domestic Water Improvement District
Population: 47,954
Purchase of Thim Water Systems
Loan Amount: $4,218,531
Project Results: The Metropolitan Water District in Tucson entered into an asset purchase agreement
to acquire three water systems that were in need of upgrades and resolution of compliance problems.
Upgrades completed after the purchase included a fixed network system and automated meter reading
conversion, installation of arsenic treatment, a new well, and storage tank replacement. The purchase
and upgrades have consolidated operations and management of these systems, produced greater
economy of scale through the increased customer base and revenues, and brought the systems back
into compliance.

2014 Annual Report

Page 16

City of Prescott
Population: 30,252
Sundog Filter Replacement & Denitrification
Loan Amount: $1,480,944
Project Results: The City of Prescott used loan funds to remove and replace the under-drain system at
the City’s Sundog WWTP, the City’s largest wastewater treatment plant. Sundog receives the majority
of the City’s wastewater flow and was last upgraded and expanded in 1989. By replacing the underdrain at the Sundog WWTP, the City of Prescott was able to ensure proper wastewater treatment and
improve water quality.
City of Show Low
Population: 1,131 (project area)
Pineview Water System Acquisition and Improvement Project
Loan Amount: $3,800,000
Project Results: The City of Show Low acquired Pineview Water Company, a private water company
which served 1,131 residential and commercial customers in and around the City. The City then
completed significant improvements to bring the infrastructure into compliance with ACC water loss
requirements and to connect the system to the City's distribution system. Cross-connecting these
systems into one system has increased the overall quality and quantity of water available to all
residents. Due to economies of scale, this purchase has led to decreased operational costs. Savings
from these decreased costs will be put back into system improvements or used for rate stabilization.

Completed Technical Assistance Projects
Holiday Water Company
Population: 550
Water Distribution and Storage Improvements
TA Amount: $34,850
Project Results: The Company applied for funding after receiving a Notice of Violation from ADEQ in
September 2012 for failure to provide adequate storage and pressure. The TA award provided funds for
design and permitting of a replacement well, assistance with an ACC rate and finance case, and
construction contract development and bidding. As a result, the Company successfully closed on a
WIFA loan in May of this year, and will soon begin construction of the new well, additional storage, and
new pressure sustaining valves.

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Q3 Summary:
10 projects completed
• $7,437,538
o $7,275,945 in loans
o $161,593 in technical assistance funding
• 5 drinking water projects completed by small/rural communities (less than 10,000)
• 5 clean water (wastewater) projects
o 2 completed by small/rural communities (less than 10,000)
Completed Loans
City of El Mirage
Population: 30,000
WWTP Contact Chlorination Station
Loan Amount: $1,406,078
Project Results: El Mirage constructed a new wastewater treatment facility where the chlorination
station was located (at the site of the decommissioned facilities). The City used the loan funds to
construct a new chlorination station within an enclosed facility adjacent to the new treatment facilities.
City of El Mirage
Population: 35,500
Water Reclamation Facility Efficiencies
Loan Amount: $500,000Project Results: More than 24% of the operating expenses associated with
the City’s wastewater treatment facility were related to energy consumption to pump water into the
treatment facility and to use ultraviolet treatment. Replacing the internal pump station with gravity flow
and replacing ultraviolet treatment with chlorination resulted in expected energy costs savings of
$102,000 annually.
Apache Junction Water Utilities Community Facilities District
Population: 9,000
WUCFD Mesa Interconnect
Loan Amount: $4,956,200
Project Results: Problems with the District’s three wells left it unable to provide sufficient supply, and
temporary package treatment facilities were constructed as an interim solution. This project constructed
a water line, booster station and storage tank to receive water from the City of Mesa to meet demand.

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Town of Eagar
Population: 4,535
Water System Expansion
Loan Amount: $413,667
Project Results: The Town utilized the WIFA funds to install a new well and well connector line as well
as replace water lines on Spanish Trail and Burk Street.
Completed Technical Assistance Projects
Avra Water Co-op, Inc.
Population: 5,687
Waterline Replacement Program
TA Amount: $23,654
Project Results: The Co-op was experiencing high leakage from its water lines and used the technical
assistance funds to conduct a water leak study and develop a waterline replacement plan. The Co-op
has stated the project has been a great benefit, as they now have updated maps that indicate age,
type, size, condition, and expected life of the co-op’s waterlines.
City of Casa Grande
Population: 48,571
Water Reclamation Facility Selenium Reduction Study
TA Amount: $18,850
Project Results: After exceeding its AZPDES permit for selenium, Casa Grande used the technical
assistance funds to conduct a selenium reduction study. The study identified an improved testing
method to obtain more accurate lab results, resulting in compliance with the permit. The study also
identified a chemical injection process for enhanced selenium removal with minimal capital or operating
costs should selenium levels rise beyond current levels.
Maricopa Mountain Domestic Water Improvement District
Population: 822
Groundwater Well Siting Study and Technical Specifications
TA Amount: $26,900
Project Results: Maricopa Mountain Domestic Water Improvement District needed to plan for the
addition of a new production well. The District used the technical assistance funding to determine the
best location for the well based on yield and quality, and to develop technical specifications for
permitting and construction of the new well. The District has stated they are now prepared to make a
decision on location and purchase land for the new well, and may seek WIFA and/or USDA funding.
Sunrise Water Co.
Population: 4,100
Arsenic Remediation Well #2
TA Amount: $22,409
Project Results: Well #2 had been taken out of production in 2006 because it exceeded the arsenic
standard implemented then. The Company used these funds to design an arsenic treatment system for
the well. Recently, the Company received a loan from WIFA for the installation of the arsenic treatment
system.

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Town of Superior
Population: 3,254
Preliminary Engineering Report for WWTP
TA Amount: $34,800
Project Results: The Town used the funds to develop a Preliminary Engineering Report (PER) to
address needed repairs, rehabilitation and upgrades to its WWTP. The Town has stated they are now
ready to approach USDA and/or CDBG for construction funding.
Tri-city Regional Sanitary District
Population: 4,014
Special Assessment Process for Septic to Sewer Planning
TA Amount: $34,980
Project Results: This project addressed a cluster of homes on septic systems between the Town of
Miami and the City of Globe. The technical assistance funded the district formation process. The
District is already on WIFA’s Project Priority List for a future loan.

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