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Strategies for Financing Projects
David Flesher (USDA-Rural Development)
Tim Wendland (Idaho DEQ)
Dennis Porter (Idaho Commerce)
Rick Skinner (Skinner Fawcett LLP)
March 20, 2013
Goals
1. Provide helpful general information
2. Inform you of available resources
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City of Bliss
Before
After
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Discussing the General Concept
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Establish a Citizen’s Group
Sewer: Treatment / Collection / Permits
Current average user rates?
Separate Enterprise Funds?
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Discussing the General Concept
• MCL or Permit Violation?
• Is project a “need” or a “want”
• Include Area Planning Assoc.
or Grant Writer
• Include Potential Funding Agencies
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Selecting a Project Engineer
• RFQ / RFP process
• IDOC process (CDBG handbook)
– Prepare Request for Proposals
– Advertise RFP
– Rank proposals
– Negotiate and Execute Contract
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Get Legal, Administrative and
Funding Entities Involved Early
in the Process
• USDA RD, IDEQ, IDOC, USACE
• Bond and/or general counsel
• Grant administrators
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Funding the Wastewater Facility
Study / PER and ER / EID
• Sufficient funds for grant match?
• If not, can rates be raised?
• IDEQ – Planning Grants
– $250k/year water
– $250k/year sewer
– Maximum 50%
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Funding the Wastewater Facility
Study / PER and ER / EID
• USDA-RD – Predevelopment Planning
Grants & Search Grants
– PPG $25K/year
– % varies
– SEARCH $35-50K/year
– up to 100% for very low income systems)
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Funding the Wastewater Facility
Study / PER and ER / EID
• Construction not a follow-on requirement
• Make sure to include ER / EID costs
– An EID is required if RD grant funds are
involved
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Environmental Report
• Open Bond Market / Idaho Bond Bank
– Must comply with ESA, CWA, Wetlands
• USDA-RD, IDEQ, IDOC
– Must meet NEPA and Agency Specific
requirements
– Lead Agency assigned on jointly funded projects
• primary contact for completing the
environmental report
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Establish a Basic
Funding Package
• Project team needs to include
• Elected officials, citizens, Project Engineer, and
representatives from each potential funding agency
• Can apply for assistance prior to bond election
• Elections only held in November and May
• Early discussions with funding agencies is vital
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Legal Alternatives
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City wastewater revenue bond election
Local improvement districts
Water and sewer districts
Judicial confirmation of city or county
wastewater obligations
• Refinancing of obligations
• Idaho Bond Bank assistance
Planning and Educating for the
Bond Election
• Select experienced Bond Counsel
• Honest and straightforward with public
• The governing board in agreement
before moving forward
• Prepare accurate information for
handouts, power-points, etc.
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Planning and Educating for the
Bond Election
• Ready for questions regarding user rates.
• Local officials ready to answer questions
• Rely on the Project Engineer or Funding
Agency Representatives for technical or
funding questions
• RD Area Office Staff is available to attend
meetings
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Passing a Bond Election
• Local officials in control
• In public meetings – engineers don’t do
most of the talking
• Don’t assume the recommended option will
be how community wants to proceed
– Local officials need to decide which option to
pursue
• Use photos
• It is always the community’s project
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Passing a Bond Election
Before
After
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Judicial Confirmation
• Request a Judge issue ruling that
improvements are ordinary and necessary
• Recognized by IDEQ, IDOC, Idaho Bond
Bank, & Open Market
• Rural Development doesn’t recognize:
• Projects require broad based community support
• Communities that pass a bond election have
priority
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Advantages of Joint Funding
• Funding Agencies meet quarterly to
review applications and inquiries in-hand
– We are committed to actively maximizing the amount
of funding available to the state
• Goal is cooperation, not competition
• Multiple Funding Agencies can be
beneficial
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Applying for Funding
• IDEQ-SRF – Requests due January
– Draft funding list published in March
– Final funding list published in April/May
– Funding July 1 through June 30
• IDOC-CDBG – Uses a grant admin
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Application in November
Addendum in March
Decision by May
Funding by June
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Applying for Funding
• USDA-RD – Apply anytime
– Area Office staff will assist with application
– Funding occurs December - August
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Effective Construction Management
Milestone Meetings
• Before or at funding approval
• At or after bid opening
• Pre-Construction Conference
• During Construction (monthly)
• Substantial Completion
• Final Completion
• Warranty Inspection
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Groundbreaking
• Invite local media
• Inform community that project is under way
• Elected officials visit community
USDA Rural Development
Loan and Grant Program
• Provides funds to rural areas (<10,000 pop)
• Construct, enlarge, extend, and/or improve
water or sewer systems, including solid
waste
• Unable to get credit elsewhere (reasonable
rates/ terms)
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USDA Rural Development
Loan and Grant Program
• Legal authority to incur debt, own, operate,
and maintain facility
• Public Bodies must pass bond election for the
amount of the debt
• Indian Tribes, Associations must have
board approval, majority of member approval
and repayment ability
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USDA Rural Development
• Rates – Fixed; depend on service area MHI
and existing violations
• Terms
– Revenue bond - 40 yrs w/ RD grant
– GO Bond or LID - 30 years max
• Security
– Cities & Districts – Revenue, LID, or GO Bond
– Non-Profit’s - mortgage/deed of trust &
promissory note
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USDA Rural Development
• MHI - 5-year
– Less than $49,561 = 45% - 75%
– Greater than $49,561 = 0
• Similar system costs + $40+/user/month
• Availability of funds = 3:1 loan to grant
• No “grant only” for regular program –
must be with an RD loan
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USDA RD Contacts in Idaho
North Idaho, Coeur d’Alene (208)762-4939
Serving: Benewah, Bonner, Boundary, Clearwater, Idaho, Kootenai, Latah, Lewis,
Nez Perce and Shoshone counties
[email protected]
[email protected]
[email protected]
Western Idaho, Caldwell (208)459-0761
Serving: Ada, Adams, Boise, Canyon, Elmore, Gem, Owyhee, Payette,
Valley and Washington counties [email protected]
[email protected]
Central Idaho, Twin Falls (208)733-5380
Serving: Blaine, Camas, Cassia, Gooding, Jerome, Lincoln, Minidoka and
Twin Falls counties [email protected]
[email protected]
Eastern Idaho, Blackfoot (208)785-5840
Serving: Bannock, Bear Lake, Bingham, Bonneville, Butte, Caribou, Clark,
Custer, Franklin, Fremont, Jefferson, Lemhi, Madison, Oneida, Power & Teton
Counties
[email protected]
[email protected]
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DEQ Funding Opportunities
• Planning Grants
• Construction Loans
– State Revolving Fund (SRF) Loans
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DEQ State Office Contact Information
Planning Grants
CWSFR Loans
Charlie Parkins
MaryAnna Peavey
208-373-0122
Maryanna.peavey
@deq.idaho.gov
208-373-0577
Charlie.parkins@
deq.idaho.gov
DWSFR Loans
Tim Wendland
208-373-0439
[email protected]
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September 2012
Idaho Commerce
State Community Development Block Grant
(CDBG) Program
– Federal funds (HUD)
– Idaho’s 2013 allocation = $7.0M
Contacts, (208) 334-2650
– Regions 1 & 2: Tony Tenne, ext. 2111
– Regions 3 & 4: Sharon Deal, ext. 2137
– Regions 5 & 6: Amanda Ames, ext. 2136
CDBG
CDBG Eligible Applicants
– Cities and Counties
– Sub-grants okay to special districts/non-profits
Must Meet National Objectives
– Benefits an area/family that’s 51% low to
moderate income
– Prevents/eliminates slum and blight
– Eliminates imminent threat/emergency
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CDBG Eligible Activities
Construction or rehabilitation of public…
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Sewer or water systems
Solid waste facilities
Fire or EMT stations
Hospitals or health
facilities
• Infrastructure for jobs
• Infrastructure for
affordable housing
• Youth/child care
centers
• Downtown
improvements
• Senior/community
centers
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CDBG
• Funding partners
– City, County, sub-recipient, DEQ, USDA
RD, ITD, EDA, USACE, urban renewal
districts, bond bank
• Application process
– Not enough to grants to cover demand
• Competitive factors
– Match, need, community impact, readiness
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Questions?
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Dennis Porter, Manager
David A. Flesher
Community Development
Director, Community Programs
Idaho Dept of Commerce (Boise)
208-334-2650 Ext. 2145
[email protected]
USDA Rural Development (Boise)
Boise, Idaho 83709
208-378-5617
[email protected]
Tim Wendland
Loan Program Manager
Idaho DEQ (Boise) (208) 373-0439
[email protected]
Rick Skinner
Bond Counsel
Skinner Fawcett LLP (Boise)
208-345-2663
[email protected]
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