kentucky infrastructure authority governor’s local issues conference august 17 - 19, 2011
TRANSCRIPT
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KENTUCKY INFRASTRUCTURE AUTHORITY
GOVERNOR’S LOCAL ISSUES CONFERENCE
August 17 - 19, 2011
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What Do We Do?
Facilitate Water and
Wastewater Planning
Fund Infrastructure Projects
Using Loans and Grants
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Statewide Planning
• KIA coordinates drinking water and wastewater planning in cooperation with the ADDs
• Role of planning will become more critical
• Sound planning requires a wide range of information and participation
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Project Rankings
Two Ranking Processes
• SRF Rankings– Clean Water Act– Safe Drinking Water Act
• Area Water Management Council Rankings
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Prioritization of Projects by AWMC
• AWMC rankings are based on local needs
• Consideration will be given to projects…..
– involving regionalization of systems (physical or management)
– with the highest impact in numbers of households served
– with the lowest average cost per customer– where the Median Household Income is less than
the state average
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Grants
• No new in the current biennium
• Close out existing grants
• Grant funds can only be used for the purpose in the budget line item
• Reauthorization
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KIA Has 4 Loan Programs
• Federally Funded– Clean Water State Revolving Fund (Fund A)– Drinking Water State Revolving Fund (Fund F)
• State Funded– Infrastructure Revolving Loan/Grant (Fund B)– Governmental Agencies Program (Fund C)
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State Funded Loan Programs (B and C)
• State Funded programs for governmental entities for the construction of infrastructure projects, primarily water and sewer, broadband and possible financing for brownfields remediation
• Minimal Requirements– WRIS number (WX or SX)– Uniform System of Accounts and Cost Based Rates– E-Clearinghouse– Adequate Revenue to Repay the Loan– Replacement Reserve Requirement– Principal and Interest Repaid Monthly– Submit Audited Financial Statements
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Funds B & C Terms
• Below Market Interest Rates– Fund B Rates are 3%, 2% and 1%– Fund C Rates range from 3% to Market Rate
• Flexible Maturities– Fund B Repayment Terms from 5 to 30 years– Fund C Repayment Terms from 20 to 30 years
• Funds Availability– Limited availability of funds to loan– Fund C may be bond funded
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State Revolving Funds (SRF)
• Created and Funded by the Federal Government– Clean Water Act (Fund A)– Safe Drinking Water Act (Fund F)
• Administered jointly by– Kentucky Infrastructure Authority (KIA)
• KIA receives grant from EPA• KIA provides 20% State Match• Financial and Administrative Responsibility
– Division of Water (DOW)• Environmental Responsibility• Technical Responsibility
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Eligible Borrowers
• Governmental Agency– City– County– Special District
• No Federal Agencies
• Project MUST BE on the SRF Priority List. (Different from Area Water Management Council Priority List)
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REQUIREMENTS FOR 2012• Green Projects – 20% of the federal funds received will go to “Green”
projects
• Principal Forgiveness - All systems that qualify for 1% interest rate loans will receive principal forgiveness– Tiered principal forgiveness will be offered to CWSRF borrowers
• 30% for borrowers’ whose Median Household Income <=$20,599• 10% for borrowers’ whose Median Household Income between
$20,599 & $32,959• No project can receive more than $1,200,000 in forgiveness
– 35% principal forgiveness will be offered to DWSRF borrowers
• Davis-Bacon Act – Federal wage rates could apply– Currently applies to SRF loans – Expires September 30, 2011– Could be reinstated when Congress passes new federal budget
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FUND A
CLEAN WATER STATE REVOLVING FUND
2012 Funds Availability ~ $132,475,385
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ELIGIBLE PROJECTS - CWSRF
• Wastewater Collection, Conveyance, & Treatment Facilities
• Storm Water Collection, Conveyance, & Treatment Facilities
• Implementation of Nonpoint Source Pollution Control Management Programs;
• Purchase of Wastewater System
Loans for planning and design are available to expedite a project, which may be rolled into a construction loan.
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INELIGIBLE PROJECTS - CWSRF
• Laboratory Fees and Other Monitoring Expenses
• Operation and Maintenance Expenses
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FUND F
DRINKING WATER STATE REVOLVING FUND
2012 Funds Availability ~ $38,373,772
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ELIGIBLE PROJECTS - DWSRF
• 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
Loans for planning and design are available to expedite a project, which may be rolled into a construction loan.
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INELIGIBLE PROJECTS - DWSRF
• Compliance Monitoring
• Operation and Maintenance
• Reservoirs (raw water)
• Dams or Dam Rehabilitation
• Water Rights
• Growth
• Fire Protection
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CURRENT SRF RATES
Interest Rate set annually by the KIA Board.• Standard Rate is 3.0% (MHI at or above $41,197)
• Non-Standard Rate (a) is 2.0% (MHI between $32,958 & $41,197)
• Non-Standard Rate (b) is 1.0% (MHI at or below $32,958)
• Criteria for Non-standard Rates based on:– MHI of Jurisdiction– MHI of service area– Regionalization– Orders or Judgments– Public Health or Safety Issues– Environmental Concerns– Financial Considerations
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REPAYMENTS TERMS Repayment Period
CWSRF – 20 YearsDWSRF – 20 Years (may be 30 years if
hardship community)
Financing Expenses
CWSRF – 0.2% Servicing FeeDWSRF – 0.25% Servicing Fee
Debt Service Reserve: None
Replacement Reserve: 2.5% of project amount funded over 10 years
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SRF Basic Process
1. Environmental Review
• Includes E-Clearinghouse
2. Plans Review
3. Financial Administration
• Eligible projects will be “invited”
to apply
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SRF Process FlowchartKIA Board Approval & Binding Commitment
InvitationApplication
Environmental Review(includes E-Clearinghouse)
Plans and Specs Review
Bid Opening
Pre-Construction Conference
Start Construction/ Construction Contract
Enter into Assistance Agreement
Initial Pay Request
Construction Complete
Closeout
KIA Board Approval & Binding Commitment
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WHERE TO START?
• Project Profile• Call for Projects
IMPORTANT DATES:
October 1, 2011 - DW & CW Call by KIA & DOW
December 31, 2011 - Call for Projects Closed
March 31, 2012 - DOW Project Ranking Complete
June 1, 2012 - Draft IUP and Priority List
July 1, 2012 - Beginning of Funding Cycle
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PROCESS IMPROVEMENTS…
• DOW will use the information from the Project Profile to Rank the SRF Projects.
• You DO NOT have to complete an SRF Project Questionnaire Form.
• You DO have to get your project endorsed by the Water Management Council
• You DO have to let DOW know which WX or SX numbers you wish to have considered for SRF funding.
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AGENCY CONTACTSDOW
Shafiq AmawiWater Infrastructure Branch
Branch Manager
Buddy GriffinProgram Administration Section
Supervisor
Amanda YearyDWSRF Coordinator
Anshu SinghCWSRF Coordinator
Phone 502-564-3410
KIA
John CovingtonExecutive Director
Kasi WhiteFinancial Analyst
Sandy Williams Financial Analyst
Phone 502-573-0260
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For more information contact:
Kentucky Infrastructure Authority1024 Capital Center Drive, Suite 340
Frankfort, KY 40601(502) 573-0260
kia.ky.gov