Discussion and possible action on any and all matters regarding Resolution No. 2383.  A Resolution of the Mayor and City Council of the City of San Luis, Arizona, a Municipal Corporation of Arizona, approving the form and authorizing the execution and delivery of a loan agreement with the Water Infrastructure Finance Authority of Arizona from its Clean Water Revolving Fund Program for the West Wastewater Treatment Plant Expansion; providing for the transfer of certain moneys; approving related covenants and agreements; and declaring an emergency. (Roula Encinas, Director of Finance and Mark Reader, Managing Director of Stifel, Nicolaus & Company)

(6 votes in favor are required to pass immediately as an emergency per A.R.S. § 19-142.)

The City of San Luis has been approved for a Water Infrastructure Finance Authority of Arizona (WIFA) loan under the Clean Water State Revolving Fund program to finance the expansion of the West Wastewater Treatment Plant.

The City Council is asked to consider the attached resolution, which authorizes the City to enter into a WIFA loan agreement to finance the reclaimed wastewater project. The resolution also approves the loan terms and conditions outlined in the attached loan agreement.

The 25-year loan (to mature no later than July 1, 2050), in an amount not to exceed $26,240,000, includes an estimated $1,500,000 in forgivable principal (grant funds) and a federally subsidized interest rate of 4.40% and not to exceed 5.50%. The loan will be repaid through wastewater utility rates.

The expansion will double the plant’s treatment capacity from 1.5 million gallons per day (MGD) to 3 MGD. Additionally, the project includes a treatment process upgrade, transitioning from a Sequential Batch Reactor (SBR) to a Membrane Bioreactor (MBR) system. This upgrade will enable the City to produce higher-quality treated water, which can be reused for irrigation and other non-potable purposes.

This funding will allow the City to enhance wastewater infrastructure, ensure regulatory compliance, and improve long-term sustainability. The improvements financed through this loan are critical to maintaining and expanding wastewater services for the City’s growing population.

The approval of this Resolution formally authorizes executing the loan agreement with WIFA, ensuring access to the funding needed for this essential project.