Title
Authorization for the Issuance of Wastewater Obligations for the Water Department's Capital Improvement Program (Ordinance S-49998)
Description
An ordinance authorizing the City Manager to cause the issuance of obligations of or by a municipal property corporation or by a private leasing company as short-term and/or long-term obligations and to issue long-term obligations to refund short-term obligations, including execution and delivery of all leases and other agreements necessary or appropriate for the financing costs of expanding and improving the wastewater treatment system of the City in a principal amount not to exceed $830 million, and in an amount necessary to refund currently outstanding obligations issued for such purposes and in each case, related financing costs; granting an exemption to Phoenix City Code section 42-18 to include indemnification and legal remedy limitations, and authorizing the City Controller to expend all necessary funds therefore.
Report
Summary
As part of the rate revenue setting process, the Water Services Department provided the City Council with an overview of Wastewater Capital Improvement Plan (CIP) infrastructure needs over the next five years totaling over $1.4 billion. The Chief Financial Officer expects to fund approximately $830,000,000 of the Wastewater CIP with debt financing, consisting of issuing tax-exempt bonds and entering into a Water Infrastructure Finance Authority (WIFA) of Arizona loan.
Financial Impact
This ordinance provides authorization to issue obligations to fund the Wastewater CIP. All expenditures related to the issuance and payment of any such obligations will be funded by Water Services wastewater revenues.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the Finance Department.