In October 2024, the City Council approved Resolution No. 2335 authorizing staff to apply for financial assistance through the Water Infrastructure Finance Authority of Arizona (WIFA) for the expansion of the West Wastewater Treatment Plant.

In December 2025, the City was approved for a WIFA loan in the amount of $26,240,000 under the Clean Water State Revolving Fund program. The project subsequently advanced to the bidding phase; however, the lowest responsive and responsible bid received totaled approximately $41 million, significantly exceeding the originally anticipated project cost by approximately $15 million.

Due to the increase in construction costs, staff is requesting authorization to apply for approximately $12 million in additional WIFA funding to cover the remaining funding gap, with the balance of approximately $3 million to be funded from the Wastewater Utility Reserve. The West Wastewater Treatment Plant expansion remains a critical infrastructure investment to support current and future wastewater capacity, regulatory compliance, and community growth.

The Clean Water State Revolving Fund program provides low-cost financing options, including below-market interest rates, appropiate repayment terms, and potential forgivable principal. These financing tools continue to represent the most cost-effective option available to the City to fund this project.

Approval of this resolution will authorize staff to submit an application for additional financial assistance from WIFA. Final loan terms, including interest rate, repayment period, and any potential forgivable principal, will be presented to the City Council for approval at a future meeting.