Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Infrastructure topic
No spam. Unsubscribe anytime.
Oro Valley approves WIFA loan to finish northwest recharge and delivery system
Summary
The council authorized a Water Infrastructure Finance Authority (WIFA) loan to fund remaining components of the Northwest Recharge and Recovery Delivery System, a multi-year project intended to deliver additional water resources to Oro Valley.
The Oro Valley Town Council on April 16 approved Resolution R25-13 authorizing the town to accept a Water Infrastructure Finance Authority (WIFA) loan from the Drinking Water State Revolving Fund program to help complete the Northwest Recharge and Recovery Delivery System (NWRDS).
Water utility director Peter Abrahams told the council the financing will help pay for two remaining independent projects—part of a booster station and transmission main segments—needed to complete the NWRDS. The overall NWRDS effort is intended to provide additional delivery capacity and will increase the town’s ability to recover and use stored water once completed; staff said the system will deliver up to roughly 4,000 additional acre-feet of water to the town when fully online.
Town finance staff said the WIFA package approved by the authority includes more than $12 million in loan authority with a portion of principal eligible for forgiveness; after forgiveness the town’s amortized balance was described on the record as a little above $11 million. The proposed WIFA terms in staff presentations included a 20-year amortization and an estimated interest rate near 3.45 percent; estimated annual debt service was shown at roughly $800,000 to be paid from utility revenues. Staff and the town’s financial adviser represented that no immediate rate increase was required to support the debt service because it will be covered within net utility revenues.
Mark Gebhardt, the town’s finance staff member presenting the package, noted that interest does not accrue on draws until funds are drawn under the loan agreement, which can reduce carrying costs versus immediately funded debt. Council approved the resolution by roll call vote; staff indicated construction completion and project closeout are expected in 2026.
Staff said the WIFA proceeds, combined with previously approved private-placement financing and existing pay-go funding, will allow the town to complete the NWRDS construction and secure the long-term benefits of the system for water reliability and recovery.
