Peoria city council approved a $35 million loan that will help fund a water project to build five new potable water wells and about 13,500 linear feet of waterline.
Officials say these wells are crucial to providing system redundancy if surface water is curtailed or cut off.
This project is located near Lake Pleasant Parkway and Loop 303 and was approved by council as part of the city’s fiscal year 2023-2032 capital improvement program.
The project has a number of parts including piping, reservoir and a booster pump station. The funds from the loan, which includes about $1 million in forgivable principal, will go only to the wellfield itself.
“The main purpose of this project is to provide greater water access to water stored underground,” said Water Services Director Cape Powers. “It will also start building infrastructure out there, so this project can be developed over time. And it helps us prepare us for future growth.”
From time to time, the city uses loans from Water Infrastructure Financing Authority, the state’s “bond bank,” and administers the Arizona State Revolving Funds.
Officials say WIFA loans minimize financing costs and take advantage of the principal forgiveness program to reduce costs on major water and wastewater projects.
The total cost of this project is about $40 million with $5 million in American Rescue Plan Act funds that will be used.
The American Rescue Plan Act was signed by President Joe Biden in 2021, and allows cities and towns to allocate funds to cover lost revenue caused by the COVID-19 pandemic.
The city applied for and was approved for the $35 million loan from WIFA, who can issue bonds for water and wastewater infrastructure at low costs and pass the savings on to municipal borrowers.
WIFA also offers principle forgiveness for certain loans so the borrower does not have to repay the principle forgiveness amount if all federal requirements are met.
The city is required to repay the remaining $34 million over 20 years.
Right now, it is unclear what the interest rate will be at closing, but officials say it will be comparable to the interest rate the city would receive on 20-year tax exempt bonds.
Philip Haldiman can be reached at phaldiman@iniusa.org, or on Twitter @philiphaldiman. We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.
Meet Philip Haldiman is an award-winning journalist who most recently took first place for investigative reporting in 2023 from Arizona Newspapers Association. He joined Independent Newsmedia, Inc., USA, in 2015, covering Sun City West his first year. Since 2016, he has covered the city of Peoria. Prior to coming to INI, he was a reporter with The Arizona Republic for seven years, covering numerous cities throughout the Valley. Before that, he was a freelance writer.
Community: Haldiman spearheads the Peoria Independent Hometown Heroes Awards program, honoring local individuals and businesses that give back to the community. He has hosted local candidate forums over the years and is a member of the Society of Professional Journalists. Haldiman also served as a member of the Journalism Program Community Advisory Board at Glendale Community College. Outside journalism, Haldiman served as a member of the city of Peoria Complete Count Committee for the Census, 2019-2020. Lastly, he has served as a member of his HOA governing board since 2021.
Education: Arizona State University with a BA in Journalism and Mass Communications and a BA in Theater.
Random Fact: Haldiman is a fourth-generation Arizonan as well as wrote and produced an autobiographical comic book about his time spent in Hollywood and his life as a cult film star.
Hobbies: He enjoys hiking Arizona’s mountainous landscapes and is currently working on a play for the stage.
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