Queen Creek Town Council approves water infrastructure financing

The Queen Creek Town Council recently approved  a resolution amending two Water Infrastructure Finance Authority loans and financing two additional projects.

These actions will accomplish a number of strategic financial objectives, which include creating rate capacity, generating cash for reserves and project funding, positioning the utility for rated, open-market bond issuances, improving the revenues to debt service coverage ratio and matching the asset’s useful life with the term of the associated debt, according to a release.

The two amendments update the loans to acquire Queen Creek Water Co. and H2O Water Co. The amendments extend the terms of each loan to 30 years, which better match the asset’s useful life with the term of the debt. The amendments maintain the original call dates, and expand the revenues pledged to repay the debt.

“WIFA provides significantly lower interest rates than traditional financing,” Queen Creek Vice Mayor Julia Wheatley said in the release. “By regularly evaluating opportunities to refinance and amend our loans, it benefits our residents in reduced costs. I’m excited that we’re able to achieve our community’s strategic objectives while being extremely efficient with ratepayer dollars.”

Financing for the two new projects are outlined below:

Drinking Water Project- Queen Creek Groundwater Extinguishment Credit Acquisition

The acquisition of water resources for the Town of Queen Creek were financed by the Drinking Water State Revolving Fund.

The DWSRF program is administered by WIFA of Arizona with joint funding from the U.S. Environmental Protection Agency and Arizona, the release states

This project will expand the town’s water resources portfolio through the acquisition of Ground Water Extinguishment Credits that will allow for long-term stability and resiliency, and enable the town to meet its current and projected long-term water resource requirements for its existing customers in a manner that is cost-effective and will significantly benefit its ratepayers.

Clean Water Project - Encanterra Reclaimed Water Exchange Agreement

The payoff of the Reclaimed Water Exchange Agreement between the Trilogy Encanterra community and the Town of Queen Creek was financed by the Clean Water State Revolving Fund.

The CWSRF program is administered by WIFA of Arizona with joint funding from the U.S. Environmental Protection Agency and Arizona, according to the release.

The Reclaimed Water Exchange Agreement facilitates the mutually beneficial purchase and exchange of effluent between Trilogy Encanterra and the Town, which will enhance the sustainability of water for Queen Creek and provide quality water to the Encanterra Community.

For additional information regarding the town’s Utilities Department, go to QueenCreek.org. To stay updated on activities follow the town on Facebook @QueenCreek and Twitter @TownofQC.