Transcript ppt - 14.9 Mb

THE WIFA WAY…
AFFORDABLE AND
EFFICIENT
Angie Valenzuela, Sr. Loan Officer/GADA Program Manager
Sara Konrad, Environmental Program Supervisor
GFOAZ, February 21, 2013
WIFA TOPICS TO COVER
Who we are and what we can fund
 Who can apply
 What funding and incentives WIFA
offers
 Other services WIFA provides
 Highlighted projects

Water Reclamation Facility
City of Casa Grande
WHO WE ARE
 Water Infrastructure
Finance Authority of
Arizona
 Independent State agency
 “State Revolving Fund”
EPA
Arizona
(Federal
Capitalization
provides initial
funds)
(WIFA provides
20% match of
Federal
Capitalization
Grants)
Wastewater
Loans
Water Infrastructure
Finance Authority
(State Revolving Fund)
Bond
Holders
(provide
additional
funds)
Drinking
Water
Loans
WHO WE ARE

Provide loans and grants for drinking water and wastewater
infrastructure throughout Arizona
 Loans: planning, design, improvement, construction, acquisition
 Grants: planning and design phases
 More than $1.8B of investment in AZ’s communities since 1992

More than 350 projects
Wastewater
Drinking
Water
WHAT WIFA CAN FUND
WHO CAN APPLY
Wastewater
Drinking Water
 Publicly-owned wastewater
by political subdivisions
 Private ACC-regulated systems
facilities
 Public water systems owned
Additional eligibility criteria for noncommunity systems
STREAMLINED APPLICATION PROCESS
 Financing available year-round
 Loans approved at bimonthly board meetings
 Three-step application process
See flowchart of loan application process
STREAMLINED APPLICATION PROCESS
1. Complete online Project
Priority List (PPL) application


Once submitted, project is
assigned to a WIFA project
manager
System/Project is scored and
ranked on WIFA’s Project Priority
List
STREAMLINED APPLICATION PROCESS
2. Obtain debt authorization



Governmental systems with a population of <50,000 resolution of the governing body
Governmental systems with a population of >50,000 –
bond election
Private water companies - ACC financing approval
STREAMLINED APPLICATION PROCESS
3. Request and complete Project Finance Application
(PFA)
PFA Package
1. Project data addendum
2. Financial capability addendum
3. Legal capability addendum
4. Technical capability addendum
5. Managerial capability addendum


Optional site visit
PFA due 8 weeks prior to Board meeting
STREAMLINED APPLICATION PROCESS
 WIFA staff completes due diligence analysis and makes
recommendation to WIFA Board of Directors
 Loan closes approximately 4 weeks after Board approval
 Once loan executed, submit disbursement requests for
costs incurred
WHAT DOES WIFA OFFER?


No application fees or
closing costs
No minimum or
maximum loan Smallest loan amount:
Largest loan amount:
amount
Largest multi-loan project:
Wastewater Collection System
Lake Havasu City
$2,968
$87.7M
$346M
BELOW-MARKET INTEREST RATES
All loans subsidized (typically below market interest
rates)
AAA credit rating = low-interest financial assistance
 Public: Average for most recent years under 3.0%
BELOW-MARKET INTEREST RATES
Interest Rate Index  Subsidy Rate Index =
Combined Interest and Fee Rate (CIFR)
Tax-Exempt Interest Rate Index
 Index for political subdivisions
 Based on WIFA’s AAA rating (20 year AAA Municipal G.O.
bond rate)
STANDARD TERMS
 20 year repayment term
 Fixed payments
 Interest calculated only on funds drawn
 Debt Service Coverage - depends upon dedicated source of
repayment, typically 1.20 on a system revenue pledge
 Subsidized Combined Interest and Fee Rate (CIFR): 70% 95%
PLEDGE/COVERAGE REQUIREMENTS
Type of Pledge
Coverage Requirements
General Obligation
General Obligation Pledge
Enterprise Revenues
Net Revenues = 1.2x Maximum Annual Debt
Service
State Shared and Locally Collected
Sales/Excise Taxes
Gross Revenues = 2.0x Maximum Annual Debt
Service
Special Assessment (usually districts)
Full Cash Value of Benefitting Properties = 10x
Total Special Assessment
Other
Varies by source, subject to approval by WIFA
Board of Directors
WHAT DOES WIFA OFFER?
Special program for design loans
 1% interest rate
 Interest only payments for 3 years
 Principal is rolled into construction loan at end of
3 years
WHAT DOES WIFA OFFER?
Breaks for Disadvantaged
Communities
Longer loan term
Reduced interest and fee
rate
Forgivable Principal
Solar at Drinking Water Facility
City of Somerton
WHAT DOES WIFA OFFER?
Incentives for Green Projects
Water Efficiency
Energy Efficiency
Environmentally Innovative
Green Stormwater Infrastructure
PLANNING AND DESIGN GRANTS
Plan or design a
capital
improvement
project
Funds used to
contract with
engineer or other
consultant
-Feasibility Studies
-Rate Studies/Financial Audits
-District formation
-Capital Improvement Plans
-Other planning projects
Planning
-Preliminary Engineering
Reports
-Environmental Assessments
-Engineering Plans and
Specifications
-Other design projects
Pre-design
& Design
Project Construction
(Not eligible for grant funding)
Construction
PLANNING AND DESIGN GRANTS
 Awards capped at $35,000
 Paid as work is completed
 18 months to complete
 2 cycles per year
PLANNING AND DESIGN GRANTS
Cycle 2
Drinking Water Only
January 1, 2013
Applications available
February 28, 2013
Applications due
April 2013
Award Announcements
PLANNING AND DESIGN GRANTS
Project Funding and Local Match
 Grant funding – 60% of total planning/design project cost
(up to $35,000)
 Local match funding – at least 40% of total project cost
 Cash
 In-kind services
Green Projects - Local match waived or reduced
 Primary purpose must be green
 Green determination based on EPA GPR guidance
PLANNING AND DESIGN GRANTS
Match Examples
TOTAL
COST
TRADITIONAL PROJECTS
GREEN PROJECTS
WIFA (60%)
Match (40%)
WIFA
Match
$35,000
$21,000
$14,000
$35,000
$0
$50,000
$30,000
$20,000
$35,000
$15,000
$65,000
$35,000
$30,000
$35,000
$30,000
WIFA funding cap = $35,000
PLANNING AND DESIGN GRANTS
Five Evaluation Criteria
1.
2.
3.
4.
5.
Need for project
Green components
Project tasks and work products
Costs and benefits
Need for grant funding
OTHER WIFA SERVICES
Annual Residential Rate Survey
FINANCING ALTERNATIVES COMPARISON
TOOL (FACT)
 Compares the costs associated with various financing options for water
infrastructure projects.
 Produces a comprehensive analysis that incorporates financing, regulatory, and
other important costs.
Key Features:
 Pre-loaded with eight different sources of financing,- most common for water
infrastructure projects.
 Setup financing options using multiple funding sources
 Use “Typical Values” for unknown financing and annual costs.
 Can include customized costs that may occur with specific analyses (“Other”).
http://water.epa.gov/grants_funding/cwsrf/fact.cfm
RECENT WIFA LOANS
Borrower
Project Name
Loan Amount
Clarkdale, Town of
Twin 5s Water Main Replacement
$1,600,000
Clarkdale, Town of
Broadway Water Reclamation Facility
$5,500,000
Eagar, Town of
Kennedy Well Purchase
$350,000
El Mirage, City of
Water Reclamation Facility Efficiencies
$500,000
El Mirage, City of
Automated Meter Reading & Line Replacement
$4,550,000
Eloy, City of
Houser/Toltec Waterline Improvements
$2,000,000
Gila Bend, Town of
Solar and R/O Facility Improvements
$2,050,000
Payson, Town of
Payson Cragin Project Phase II
$6,250,000
Prescott, City of
Zone 12, 19 and 27 Water Infrastructure Improvements
Show Low, City of
Private Water Companies Acquisition
$2,000,000
Somerton, City of
208 kW Solar - Wastewater Treatment Facility
$1,187,080
Somerton, City of
272 kW Solar - Water Treatment Facility
$2,046,854
Tucson, City of
SAVSARP Collector Pipelines
$4,000,000
Tucson, City of
SAVSARP Reservoir, Booster, and Interconnect Pipeline
Winslow, City of
Replacement Well # 7
$15,921,582
$16,000,000
$1,583,750
CITY OF PRESCOTT –
ZONE 12, 19 AND 27 INFRASTRUCTURE IMPROVEMENTS
Loan Amount
Pledge
Term
$15,921,582
Revenue
20yrs
 Project Description: Replace and
enhance various aging facilities to
bolster the pressures and to
provide additional storage
capacity
CITY OF EL MIRAGE –
AUTOMATED METER READING & LINE REPLACEMENT
Loan Amount
Pledge
Term
$4,550,000
Revenue
20yrs
 Project Description: Replace 11,000 old,
inaccurate meters with Automated Meter Reading
(AMR) meters. Replace up to 17,600 feet of
existing lines with new lines
CITY OF FLAGSTAFF –
SINAGUA AND FORT TUTHILL WELL PROJECTS (2 LOANS)
Loan Amount
Pledge
Term
$1,000,000
Revenue
20yrs
$775,000
Revenue
20yrs
 Project Descriptions:
 Fort Tuthill Infrastructure upgrades and
improvements to connect the wellsite to the
water distribution system. Replace 898 water
lines, provide adequate water for fire
protection and a looped water distribution
system for redundancy
 Sinagua Combine two wells into one well
house (water transmission line and expansion
of an existing well house)
CITY OF SOMERTON –
272 KW SOLAR - WATER TREATMENT FACILITY
Loan Amount
Pledge
Term
$2,046,854
Revenue
20yrs
 Project Description: Install a solar
array to provide power to the
City’s water treatment plant and
well. The solar array will generate
65% of the facility’s electric
demand. The overall savings from
the solar project are estimated at
$75,000 per year and $2 million
over 30 years.
CITY OF WINSLOW–
REPLACEMENT WELL # 7
Loan Amount
Pledge
Term
$1,583,750
Revenue
20yrs
 Project Description: Replace well
with a new production well in a
location to address water quality
issues
CITY OF TUCSON –
SAVSARP COLLECTOR PIPELINES, RESERVOIR, BOOSTER,
AND INTERCONNECT PIPELINE (2 LOANS)
Loan Amount
Pledge
Term
$4,000,000
Revenue
20yrs
$16,000,000
Revenue
20yrs
 Project Description: Design and
construct an 8.5 million gallon
forebay reservoir and a 40 million
gallons per day booster station to
recover and distribute City’s full
allocation of Colorado River
Water
TOWN OF PAYSON–
CRAGIN PROJECT PHASE II
Loan Amount
Pledge
Term
$6,250,000
Revenue
20yrs
 Project Description: Continuation of
previous loan for $8M (Phase I).
Construct water pipeline from the
Cragin reservoir to water treatment
plant and from water treatment plant
to the distribution system. Construct
water treatment plant
TOWN OF CLARKDALE –
TWIN 5S WATER MAIN REPLACEMENT
Loan Amount
Pledge
Term
$1,600,000
Excise Taxes
20yrs
 Project Description: Replace and
relocate water mains that pose
security, operational and
maintenance issues
TOWN OF CLARKDALE –
BROADWAY WATER RECLAMATION FACILITY
Loan Amount
Pledge
Term
$5,500,000
Revenue
20yrs
 Project Description: Replace an
outdated and technologically
limited municipal wastewater
facility with a recycled and
refurbished mechanical
wastewater treatment facility
producing Class A+ effluent
CITY OF KINGMAN –
DOWNTOWN WWTP UPGRADE AND SOLAR
Loan Amount
Pledge
Term
$18,541,667
Revenue
20yrs
 Project Description: Construct new
0.62 MGD Wastewater Treatment
Plant with solar and other energy
efficiency elements.
 Used WIFA funds for every phase of
project:
 2004 - planning and design grant for
Location and Process Selection Study
 2009 - 3-yr loan for the design
 2011- design loan rolled into
construction loan
CITY OF PRESCOTT –
AIRPORT WWTP UPGRADES - 3.75 MGD
Loan Amount
Pledge
Term
$45,802,753
Revenues
20yrs
 Project Description: Expand to a
treatment capacity of 3.75 mgd to
accommodate current flows.
Approximately 28% of the project
costs, $12,864,000, are for green
components which result in a higher
class (cleaner) effluent; also results
in an increased volume of reclaimed
water produced by the WWTP.
CITY OF FLAGSTAFF –
ENERGY AUDIT PLANNING AND DESIGN GRANT
 Grant Amount: $35,000
 match waived (green project)
 Project Description: Identify and develop
energy efficiencies in drinking water
system. Energy costs are about 50% of
the water production budget. The
drinking water system energy audit
provided valuable information to update
an antiquated system that has expanded
in the past 20 years from serving 40,000
to 65,000 people
CONTACT US
Water Infrastructure Finance Authority of
Arizona
Phone: (602) 364-1310
Fax: (602) 364-1327
Toll-Free: (877) 298-0425
www.azwifa.gov