Capital Improvement Overview – The District actively constructed and upgraded critical infrastructure to ensure the reliability of its water system. The biggest challenge facing water utilities now and into the future is the need to replace aging infrastructure. The District has been proactive with the Capital Improvement Programs (CIP) to minimize significantly the risk of aging infrastructure and reduced overall costs for the future through various improvements.
On March 11, 1997, a 79% voter approval gave the green light to the District’s $23 million CIP to address deficiencies identified in the 1994 Water System Management Plan. The District issued $13 million in Water Revenue Bonds in 1999 with the remaining $10 million bonds issued as part of the Series 2002 Bonds. A Bond Oversight Committee, now known as the Finance Oversight Committee, has actively watched over the CIP to ensure the funding was spent as the voters agreed.
In August 2004, the Board approved a second 10-year CIP to continue to upgrade the District’s service areas to meet present and future water demands.
In October 2004, the Board called for a bond election to finance the first phase of the 10-year CIP. In March 2005, 83 percent of those who voted approved the $28 million bond. Subsequently, the District obtained a loan agreement from the Water Infrastructure Financing Authority of Arizona (WIFA) for $15.375 million in October 2005 for the design and construction of six major capital projects with funds expended by October 2008. On November 9, 2007, WIFA approved the second phase of the $28 million CIP with a loan in the amount of $12.625 million.
In October 2008, the Board decided not to pursue another bond election due to the financial uncertainties of the overall economy.
To date, the District has installed over 100,000 linear feet of transmission mains, replaced approximately 150,000 linear feet of aged and undersized waterlines in neighborhoods and other locations, installed and improved water supply wells and pumping facilities, installed auxiliary power, and completed construction of over 10 million gallons water storage facilities.
The District’s Adopted Budget includes a five-year CIP, which lays out the proposed plan for capital infrastructure for the next five years and includes the components of the discreet tasks such as planning and design, acquiring associated land, and construction. Currently, the top item is the NWRRDS project