Transcript Connectivity and Cooperation

KENTUCKY INFRASTRUCTURE
AUTHORITY
Office of the Governor
Governor’s Office for Local Development
1024 Capital Center Drive, Suite 340
Frankfort, Kentucky 40601
502-573-0260
http://kia.ky.gov
Planning to Succeed
The Planning Process
• Grants
• Loans
Planning Process for Water & Wastewater
• Project concept
• Discuss alternatives & opportunities with ADD
coordinator utilizing the WRIS
• Work with engineer to develop plan & design
• Develop project profile
• Consider funding sources
• Profile approved by the WMC (WX/SX number
assigned)
• Project ranked using current criteria
• List of ranked projects provided to legislators
Regional Water Management Councils
• In place across Kentucky
and conform to KY’s 15
area development
districts
• Comprised of a group of
elected and appointed
leaders, utility
representatives, health
department
representatives and
citizens at large
• Will use planning to
provide direction, not
dictate route
Grants
Kentucky Infrastructure Authority
Office of the Governor
Grants – Where You Start
The first step is preparation and planning.
• Identify project for which funding is needed
• Create and submit a project profile
• Obtain approval of Area Water Management
Council and go through prioritization process
Grants – You’re in the Budget
• Grantee (as identified in Budget) is notified of
grant award
• Grantee designates a Project Administrator
(an important decision)
• Grantee designates a Project Number
Grants – Doing the Paperwork
• Grant Assistance Agreement is prepared and
forwarded to Grantee for execution
• Grantee completes Assistance Agreement
and Exhibits and submits to KIA.
• KIA executes Assistance Agreement and
submits to Capital Projects and Bond
Oversight Committee for approval.
Grants – Getting Your Money
• Once construction begins, pay requests are
submitted to KIA with supporting invoices.
• Pay requests are reviewed and approved.
• Funds are electronically transferred to the
designated bank account.
Agency Contacts For Grant Programs
Kentucky Infrastructure Authority (KIA)
Debby Milton
Financial Analyst
Suzanne Anderson
Financial Analyst
Kelli Rice
Financial Analyst
Phone 502-573-0260
Optimizing Funding
But sometimes a grant
isn’t the whole answer…
Loans
Kentucky Infrastructure Authority
Office of the Governor
Why Use Loans?
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Project is needed NOW!
Cannot get sufficient grant funding
Will not significantly impact rates
Funding package in place and bids
come in over estimates
Projects KIA Loans Can Fund
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Wastewater Projects
Drinking Water Projects
Solid Waste Projects
Storm Water Control and Treatment
Broadband Projects
Gas or Electric Utility
Environmental Remediation (Brownfields)
Eligible Borrowers
• Governmental Agency
– City
– County
– Special District
• No Federal Agencies
• For Fund A and Fund F Project MUST BE listed on
the SRF Priority List. (Different from Water
Management Council Priority List)
General Funding Requirements
• Must have WX or SX #
• Uniform System of Accounts
– Cost Based Rates
• e-Clearinghouse
• Must be approved by KIA Board
KIA Loan Programs
• Clean Water State Revolving Fund (Fund A)
• Infrastructure Revolving Loan/Grant (Fund B)
• Governmental Agencies Program (Fund C)
• Drinking Water State Revolving Fund (Fund F)
Kentucky’s SRF Programs
• Fund A
–Clean Water State Revolving Fund
–Established in the Clean Water Act
• Fund F
–Drinking Water State Revolving Fund
–Established in the Safe Drinking Water Act
• Loans for planning and design (A1 or F1) are available to
expedite a project, which may be rolled into a construction
loan.
Eligible Projects – Fund A
• Wastewater Collection, Conveyance, &
Treatment Facilities
• Storm Water Collection, Conveyance, &
Treatment Facilities
• Implementation of Nonpoint Source Pollution
Control Management Programs;
• Purchase of Wastewater System
Ineligible Projects – Fund A
• Laboratory Fees and Other Monitoring
Expenses
• Operation and Maintenance Expenses
Eligible Projects – Fund F
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Replace Inadequate/Aging Infrastructure
Upgrade Treatment Facilities
Install or Upgrade Storage
Rehab Wells or Develop Source Water
Consolidation/Purchase of Water Systems
Extension of Service to Existing Homes to
Address Quantity and Quality Issues
• Security Measures
Ineligible Projects – Fund F
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Compliance Monitoring
Operation and Maintenance
Reservoirs (raw water)
Dams or Dam Rehabilitation
Water Rights
Growth
Fire Protection
Loans – Where You Start – Funds A & F
• Project Profile
– Area Water Management Council
– WX or SX #
• Call for Projects
– Look for Notices in October
• Priority Lists
– Expect List to be Available Spring 2008
Current SRF Rates
Interest Rate set annually by the KIA Board.
– Standard Rate is 3.0%
– Non-Standard Rate is 1.0%
– Criteria for Non-standard Rate based on:
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MHI of Jurisdiction
MHI of service area
Regionalization
Orders or Judgments
Public Health or Safety Issues
Environmental Concerns
Financial Considerations
Repayment Terms
• Repayment Period
– CWSRF – 20 Years
– DWSRF – 20 Years (may be 30 years if
disadvantaged community)
• Financing Expenses
– CWSRF – 0.020% Servicing Fee
– DWSRF – 0.025% Servicing Fee
• Debt Service Reserve: None
• Replacement Reserve: Negotiable
Agency Contacts For SRF Program
Division of Water
(DOW)
KY Infrastructure
Authority (KIA)
Donna Marlin
Sandy Williams
Drinking Water Branch Manager
Financial Analyst
Shafiq Amawi
John Covington
Facilities Construction Branch
Manager
Financial Analyst
Chris Whitaker
Lola Lyle
Financial Analyst
Program Administration Section
Supervisor
Phone 502-573-0260
Phone 502-564-3410
Fund B and Fund C
• Programs Are Being Restructured
– Will Have Subsidized Interest Rate
– Loan Terms are normally 20 years
(can be 30 years in certain circumstances)
• Limited to the life of the asset being funded
• Limited Funds Available
• State Funds
Fund B and Fund C
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No federal requirements
e-Clearinghouse
Must follow appropriate procurement policies
State prevailing wage rates may apply
Will have same interest rates as Fund A and
Fund F
Proposed Fund B and C Interest Rates
Interest Rate set annually by the KIA Board.
– Standard Rate is 3.0%
– Non-Standard Rate is 1.0%
– Criteria for Non-standard Rate based on:
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MHI of Jurisdiction
MHI of service area
Regionalization
Orders or Judgments
Public Health or Safety Issues
Environmental Concerns
Financial Considerations
Successes
• Kentucky ranks in the top 5 nationally in
percentage of state population with access to
community water systems.
• Kentucky currently has just over 500 regulated
public water systems (reaching more people with fewer
systems than comparable states)
For more information contact:
Kentucky Infrastructure Authority
1024 Capital Center Drive, Suite 340
Frankfort, KY 40601
(502) 573-0260
http://kia.ky.gov