Water and Environmental Programs

Transcription

1 U.S. Department of Agriculture Rural Development, Rural Utilities Service Water and Environmental Programs UNC School of Government Environmental Finance Center 2016Water and Wastewater Finance Workshop February 9-10, 2015 Friday Center for Continuing Education Chapel Hill, NC

2 USDA/Rural Development Rural Utilities Service Water & Environmental Programs

3 Types of Eligible Projects Drinking Water Facilities Sanitary Sewer Facilities Storm Water Drainage Facilities Solid Waste Disposal Facilities

4 Typical Drinking Water Projects New Water Systems (Distribution and/or Treatment Facilities) Water Lines Extensions Improvements to Existing Distribution and/or Treatment Facilities Water Storage Facilities (Tanks and/or Reservoirs)

5 Typical Sewer Projects New Sewer Systems (Collection and/or Treatment Facilities) Sewer Line Extensions Improvements to Existing Collection and/or Treatment Facilities

6 Typical Solid Waste Disposal Projects New Landfills Purchase Trash Trucks Construct Transfer Stations Construct Convenience Centers

7 Eligible Applicants Public Bodies: Counties Towns & Cities Water & Sewer Districts Water & Sewer Authorities Metropolitan Sewerage Districts Sanitary Districts

8 Eligibility Requirements Must serve rural area - any area not in a city or town with a population in excess of 10,000 people according to 2000 US Census Must not be able to finance the proposed project from own resources and/or from commercial sources at reasonable rates and terms Must have the legal capacity and financial ability to borrow, give security, and repay any debt

9 Eligibility Requirements Con t Applicant must be financially sound and have a tax collection rate of 90% or greater Water and sewer facilities to be constructed must be consistent with appropriate State, County, and local development plans Applicant may arrange for a third party to operate, maintain, or manage the system/facility by a contract or management agreement

10 NC Non-metropolitan Median Household Income $45,444,000 MHI below this figure may be considered for grant assistance MHI above this figure would be considered as a loan only

11 Interest Rates (subject to change Oct. 1, Dec. 1, Apr. 1 & July 1) Poverty 1.875% MHI below poverty or 80% of State non-metropolitan MHI and a health and sanitary problem exists Intermediate 2.500% MHI is % of State non-metropolitan MHI without any health issues Market 3.125% MHI exceeds 100% of State non-metropolitan MHI

12 Terms Repayment period 40 years or useful life of facility Principal payments may be deferred up to 3 years

13 Debt Security Public Body General Obligation Bond (Pledge of taxes) Revenue Bond (Pledge of Revenues) Combined General Obligation and Revenue Bonds (Pledge of taxes and revenues) Installment/Purchase (Normally, only if loan amount is $200,000 or less)

14 WEP FY 2016 Funding Loan - $48,547,000 Grant - $13,087,000

15 What do we look at when we determine loan/grant MHI of Proposed Service Area Health or Sanitary Issue Rates Compared to Similar Systems Existing User Rates as a % of MHI Proposed User Rates as a % of MHI Availability of Other Grant Funds

16 What s New RD Apply Strategic Economic and Community Development (SECD) Section 6025 of the 2014 Farm Bill

17 RD Apply RD Apply is an application intake system that allows you (applicant) to apply for USDA - Water & Environmental Programs loan and grant funds electronically.

18 RD Apply RD Apply allows the applicant to log online and create an application, upload documents and attachments, draw service areas, and digitally sign certifications and the application its-self.

19 RD Apply RD uses and X to display whether or not a section is complete, so you can see the status of your application. RUS Program staff will be able to login to the system and review your application, at any stage in the submittal process.

20 RD Apply RD Apply allows the applicant to assign roles to their employees (manager, clerk, finance officer, etc.) or consultants (project engineer, accountant, etc.). Role assignments allow the user to enter specific data and upload documents or just view the data.

21 Strategic Economic and Community Development (SECD) Section 6025 of the 2014 Farm Bill Purpose - To support long-term community and economic development growth strategies that both reflect multi-jurisdictional stakeholder collaboration and capitalize upon the unique strengths of the rural area.

22 Strategic Economic and Community Development (SECD) Section 6025 of the 2014 Farm Bill Project must meet the applicant and project eligibility criteria in RUS Instruction 1780 (Water & Environmental Program) Project must be carried out in a rural area (10,000 or less population) Project must support the implementation of a plan or multi-jurisdictional plan (2 or more jurisdictions)

23 Strategic Economic and Community Development (SECD) Section 6025 of the 2014 Farm Bill Set-aside amounts are (nationwide): Loan - $120,000,000 Grant - $ 17,248,000 Funds are will be available until June 30, 2016 These funds are administered by the National Office

24 For additional information about the USDA Water & Environmental Program National Website: NC State Website:

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26 Questions????

27 Contact Information: USDA Rural Development 4405 Bland Rd. Raleigh, NC Garland Burnette or garland.burnett@nc.usda.gov Dennis R. DeLong or dennis.delong@nc.usda.gov Julia Johnson or julia.johnson@nc.usda.gov

28 Thank You!