RURAL VALUES. Leadership Collaboration Commitment Quality Integrity. Rural Community Assistance Corporation 2015 Annual Report

Transcription

1 RURAL VALUES Leadership Collaboration Commitment Quality Integrity Rural Community Assistance Corporation 2015 Annual Report

2 Creating vibrant, healthy and enduring rural communities FY 15 Board of Directors PRESIDENT Joe Herring, ID VICE PRESIDENT David É. Provost, NY SECRETARY Nalani Fujimori Kaina, HI TREASURER Rachel Morse, AK MEMBERS Elizabeth Moore, NV Vickie Oldman-John, NM John Sheehan, CA Gary Severson, CO Martin Miller, WA Frank Bravo, CA Richard Elías, AZ Jon D. Warner, UT

3 A letter from our CEO Financials Supporters Stanley Keasling Chief Executive Officer Dear RCAC friends, During the first year of our Strategic Plan, we continued to build programs to implement new, strategic directions. Looking back on 2015, there is much to celebrate as we worked to make rural communities vibrant, healthy and enduring. Housing: Last year, 18 U.S. Department of Agriculture (USDA) Mutual Self-Help Housing Program organizations renewed grants totaling more than $19 million. In addition, seven new self-help grantees were awarded grants totaling more than $2 million. RCAC staff worked on two housing developments that secured $23.5 million in financing. We passed through funds or managed more than $2.5 million in resources for 85 housing counseling agencies. As a loan packaging intermediary we helped 44 low income families secure financing through the USDA Rural Development 502 direct loan program. Environmental: In our environmental program, 30 plus small communities secured more than $20 million in financing to upgrade their water and wastewater systems. RCAC staff helped more than 100 water systems to come into compliance with Safe Drinking Water Act standards. Nine communities adopted rate studies that resulted in a $1.8 million increase in revenue, and 18 income surveys were completed to lower financing costs for new systems. We installed nearly 150 water bottle filling stations in schools to give students better access to safe drinking water. Staff also began work on five new regionalization projects to build relationships among 15 small communities that want to make their infrastructure more sustainable. Loan Fund: Our loan fund closed 40 loans totaling almost $30 million, supporting housing development, environmental infrastructure, community facilities and small businesses. In addition, staff closed 22 small loans so families could replace wells that had gone dry as a result of the drought. Training: Training is a big piece of our work, and staff trained more than 7,500 people last year who received almost 40,000 hours of training. We held a Tribal water conference and participated in the National Self-Help Housing Conference. We initiated a new program we call the Tribal Housing Excellence Academy, and the first cohort of students representing seven reservations graduated. Community and economic development: Another new initiative, Building Rural Economies, is working with six communities to create an entrepreneurial culture and support new local business development. We are working with two Tribes in this program. One of the Tribes launched a construction company that now employs six Tribal members. The balance of this report will look at five projects that demonstrate our impact and reflect our core values. Our staff members reflect these values in their work, and we are particularly proud of their commitment to the organization and the communities we serve. Of course none of this would be possible without our generous funders support. It is a pleasure to work with the staff and our dedicated board of directors as we improve the quality of life in the rural West. Sincerely,

4 RCAC s Core Values LEADERSHIP identifies innovative strategies to further rural community and economic development and inspires partners to achieve great outcomes COLLABORATION achieves superior results by respectfully and inclusively identifying partners COMMITMENT works with passion and dedication to improve rural communities and the lives of their low-income residents QUALITY produces exceptional work products to help our partners meet their goals INTEGRITY practices the highest professional standards and cultural competency in our work The following stories from 2015 demonstrate our core values and the impact they have on rural communities throughout the West.

5 Leadership Let s not lose sight of why we are here: water, water, water. Alex Marroquin, Board President, Orosi PUD Tulare County Regionalization Top: Tulare water operators gather to discuss water issues. Bottom: A small Tulare County water system. Rural communities, like those in northern Tulare County, rely on small water systems that often struggle to supply residents with safe, affordable water, particularly when water becomes contaminated, wells go dry or aging infrastructure needs to be replaced. As California regulates more contaminants and enforces more ground water regulations, regional collaboration gives rural communities options to share managerial, infrastructure and/or treatment costs. In 2015, RCAC staff helped the Cutler, East Orosi, Monson, Orosi, Seville, Sultana and Yettem communities form the Northern Tulare County Water Alliance, opening the door for shared resources and solutions. With RCAC s assistance, these communities are drafting an agreement to form a Joint Powers Agency. Next, the group will seek funding for a new surface water treatment plant, which will provide them with a long-term, safe, reliable and affordable water source.

6 Collaboration Our collaboration with RCAC is deep and wide! It s so meaningful to be able to talk and strategize with leaders. Dave Castillo, CEO, Native Capital Access Native Capital Access Tribal Housing Excellence Academy participants enjoy the graduation celebration. In 2012, RCAC entered into a promising partnership with Native Capital Access, a Native Community Development Financial Institution. RCAC already has a long history of providing technical expertise to Tribal communities. This unique collaboration was a chance to expand its efforts to bring affordable housing to Tribes. Similarly, Native Capital Access has strong leadership, expertise, staff and consultants, but it still faced size and capital constraints. Both organizations hoped to increase the capital they provide for critical infrastructure, housing and community facilities on Tribal lands. Together, RCAC and Native Capital Access also developed The Tribal Housing Excellence (THE) Academy, an effective training and technical assistance program that helps build Tribal housing organizations housing development capacity.

7 Commitment Top: A rendering of SDTHA s rental housing project. Bottom: SDTHA staff. THE Academy has greatly benefited [us] with direct examples of the do s and don ts of tribal housing development. Joseph Kunkel, Project Manager, SDTHA Santo Domingo Tribal Housing Authority (SDTHA) The Tribal Housing Excellence (THE) Academy offered four weeks of intensive training and coaching to nine Tribal housing organizations last year. One participant, the Santo Domingo Tribal Housing Authority in New Mexico, is fully committed to applying its new skills it secured low income housing tax credits, U.S. Department of Housing & Urban Development HOME funds and other additional financing, including a loan commitment from Native Capital Access, to build a 41-unit rental housing project. SDTHA faces obstacles to build sustainable and affordable housing on its lands. The staff came to recognize through THE Academy s instruction the many resources they already had and how to set priorities. The staff also used THE Academy coaches for technical assistance, such as developing a request for proposals and scope of work for a tax credit development consultant. Housing construction began in spring, 2016.

8 Quality We ve been doing R&D for years, perfecting our process, and we are excited to be breaking ground on the Puff Factory. Jacqueline Alexander, principal, Puff Factory Puff Factory loan in Oregon Jacqueline Alexander, Puff Factory owner, in her orchard. RCAC s $5.3 million loan to Oregon orchard owner Jacqueline Alexander will bring 41 full-time jobs to the area around Hood River. The loan supports the Puff Factory s construction, a facility that will process, package and ship freeze-dried fruit products. This will allow the company to enter the $36 billion snack food production industry, which has expanded 3.6 percent during the last five years when many industries were in decline. Starbucks, among other companies, has already inquired whether the Puff Factory would produce snack products, smoothie and tea flavorings. The Puff Factory also gives orchardists in the region the opportunity to command a higher return on their quality fruit products, which are currently sold to juice producers at a fraction of the value of freeze dried fruit.

9 Integrity IACET Accredited Providers are an elite group of educators dedicated to quality in continuing education and training. John P. Spitler, IACET commissioner IACET Accredited Trainings Neil Worthen, RCAC rural development specialist, teaches a water operator workshop. RCAC is a leader in training water and wastewater operators and managers in best practices from water chlorination to board member ethics. RCAC has been conducting workshops and training since In 2015 alone, RCAC conducted 220 plus workshops, conferences and online courses. After a rigorous and lengthy application process, RCAC received IACET (International Association for Continuing Education & Training) certification, which allows it to award CEUs, course credits similar in weight to college credits, for IACET-certified trainings. Moreover, unlike most IACET applicants, RCAC earned the certification upon its first attempt, a testament to years of experience conducting training and the hard work and attention to detail that went into developing the pilot course, policies and procedures manual and application.

10 Financial Information Financials The following is a summary of information contained in RCAC s annual financial statements for fiscal years 2015 and Complete financial statements with the associated independent auditor s report are available at Condensed Balance Sheets as of September 30, ASSETS cash and investments $ 20,750,176 $ 21,049,085 loans receivable, net 59,248,686 56,907,886 grants, contracts and other receivables 3,154,963 2,436,210 fixed assets 2,847,654 2,713,666 other assets 4,226,760 2,880,877 total assets $ 90,228,239 $ 85,987,724 LIABILITIES AND NET ASSETS accounts payable & accrued liabilities $ 2,205,056 $ 2,693,572 grants payable 1,124,741 1,122,131 notes and bonds payable 54,044,339 51,998,446 net assets 32,854,103 30,173,575 total liabilities and net assets $ 90,228,239 $ 85,987,724 Condensed Statements of Activity for the 12 Months Ending September 30, REVENUE grants and contracts $ 13,262,779 $ 12,059,855 loan fees and interest 3,494,374 2,972,477 investment income 110, ,861 other 44, ,697 total revenue $ 16,912,219 $ 15,443,890 EXPENSES loan fund $ 2,031,986 $ 2,226,148 housing 3,240,044 3,242,238 community & environmental 5,556,047 4,294,412 other programs 594, ,359 fundraising 268, ,675 rental operations 149, ,053 management and general 2,391,491 2,431,485 total expenses $ 14,231,691 $ 13,348, Five-Year History of Total Assets Millions of Dollars Five-Year History of Net Assets Millions of Dollars increase in net assets $ 2,680,528 $ 2,095,520 consisting of: change in unrestricted net assets $ 2,717,391 $ 1,612,429 change in temporarily restricted net assets (36,863) 483,091 $ 2,680,528 $ 2,095,520

11 Supporters Financials Supporters PRIVATE Ally Bank American Express Anonymous donors Association of California Water Agencies Bank of America Bank of the West Bellagio Resort Beyond Shelter, Inc. Blue Planet Network Burbank Housing Development Corp. Burney Water System California Bank & Trust California Coalition for Rural Housing California Human Development California Municipal Finance Authority California Nevada Community Action Partnership California United Bank Canterbury, LLC Catholic Health Initiatives CIT Bank Citi Business Services Comerica Bank Community & Shelter Assistance Corp. of Oregon Community Economics, Inc. Conejos County Clean Water, Inc. Dignity Health Dominican Sisters of Hope Enterprise Erich & Hannah Sachs Foundation First Foundation Bank Ford Foundation Golden State Acquisition Fund, LLC Hana Water Systems, LLC Hawaiian Legacy Hardwoods, LLC Housing Assistance Council Housing California Insight Center for Community Economic Development Jacumba Community Services District Jennifer Speers JP Morgan Chase Bank Kawela Plantation Homeowners Association Klean Kantene Mary Ahlstrom Environmental McCune Charitable Foundation Meetings & Concierges Source, LLC Mercy Investment Services, Inc. Merrick Bank Corporation Minnesota Housing Partnership Morgan Stanley Bank Na Kupa a O Kuhio Nalco Nalgene National Development Council National Water Research Institute NeighborWorks America Nevada Rural Housing Authority Opportunity Finance Network Pace Engineering Pacific Western Bank PG Environmental, LLC PNC Bank Rabobank Rasmuson Foundation Religious Communities Investment Fund Rural Community Assistance Partnership, Inc. Rural Community Innovations Rural Development Initiatives Rural LISC San Luis Valley Ecosystem Council Sandy Acres Mobile Home Park Santa Rosa Rancheria Self-Help Enterprises Sierra County Waterworks Sierra Health Foundation Sisters of the Holy Cross Sisters of the Holy Names of Jesus & Mary S.L. Gimbel Foundation St. Joseph Health System Tahoe Truckee Community Foundation The California Endowment The Community Foundation The Congregation of the Sisters of Charity of the Incarnate Word The Environmental Justice Coalition for Water The FB Heron Foundation The Sisters of St. Francis of Philadelphia Trinity Health Corporation Union Bank US Bank Washington Mutual Weingart Foundation Wells Fargo Bank West Dakota Water Development District WSOS Community Action Commision, Inc. Zions Bank U.S. GOVERNMENT U.S. Dept. of State U.S. Dept. of Agriculture U.S. Dept. of Health & Human Services U.S. Dept. of Housing & Urban Development U.S. Dept. of Labor U.S. Dept. of the Treasury, SBLF U.S. Dept.of the Treasury, CDFI Fund U.S. Environmental Protection Agency STATE, LOCAL AND TRIBAL Arizona Dept. of Environmental Quality Bear River Rancheria Cahil Dehe Rancheria California Dept. of Community Services and Development California Dept. of Public Health California Dept. of Water Resources California Housing Finance Agency California State Water Resources Control Board City of Blanding City of Calistoga City of Williams County of San Mateo County of Santa Cruz Dept. of Hawaiian Home Lands Hawaii Dept. of Health Honolulu Board of Water Supply Idaho Dept. of Environmental Quality Iipay Nation of Santa Ysabel Indian Health Services California La Posta Band of Mission Indians Mesa Grande Band of Mission Indians New Mexico Environment Dept. New Mexico Mortgage Finance Authority Nooksack Indian Tribe Olene Walker Housing Trust Fund Pala Giving Program Pauma Band of Mission Indians Pueblo de Cochiti Housing Authority Rincon Band of Luiseño Indians San Diego County Water Authority San Pasqual Band of Mission Indians Santa Rosa Rancheria Smith River Rancheria Southern Indian Health Council Spokane Indian Housing Authority Sycuan Band of the Kumeyaay Nation Tachi Palace Hotel and Casino Town of Waterville Tulare County Washington State Dept. of Ecology Washington State Dept. of Health Yocha Dehe Wintun Nation

12 Rural Community Assistance Corporation 3120 Freeboard Drive, Suite 201, West Sacramento, CA Office: (916) Fax: (916) Stay informed with our free publications and social media Subscribe to our newsletters at: facebook.com/rcac.org twitter.com/rcacorg