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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
cap; water supply development fund
Purpose
Removes the $3,000,000 cap on a single loan for loans that are made from monies in the Water Supply Development Revolving Fund (Fund) to eligible entities for water supply development projects within Arizona.
Background
The Water
Infrastructure Finance Authority (WIFA) is a state agency authorized to provide
funding and financial assistance for water conservation, reuse and augmentation
projects for the purposes of meeting Arizona's current and long-term water
needs (A.R.S. §§ 49-1203.01
and
49-1205).
WIFA is responsible for administering the Fund which consists of: 1) monies
received from the issuance and sale of water supply development bonds; 2)
monies appropriated to the Fund; 3) monies received for water supply
development purposes from the U.S. government;
4) monies received as loan repayments, interest and penalties; 5) interest and
other income received from investing monies in the Fund; 6) gifts, grants and
donations received for water supply development purposes from any public or
private source; and 7) any other monies received by the Water Infrastructure
Finance Authority in connection with the purpose of the Fund (A.R.S.
§ 49-1271).
Monies in the Fund may be used for: 1) making loans of up to $3,000,000 to eligible entities in Arizona for water supply development projects within Arizona; 2) making grants of up to $2,000,000 or providing technical assistance to eligible entities for water supply development projects in Arizona; 3) purchasing or refinancing debt obligations of water providers at or below market rate if the debt obligation was issued for a water supply development purpose; 4) providing financial assistance to water providers with bonding authority to purchase insurance for local bond obligations incurred by them for water supply development projects; 5) paying the costs to administer the Fund; and 6) conducting water supply studies (A.R.S. § 49-1273).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Removes the $3,000,000 cap on a single loan for loans that are made from monies in the Fund to eligible entities for water supply development projects within Arizona.
2. Becomes effective on the general effective date.
Prepared by Senate Research
February 5, 2026
SB/hk