Water & Wastewater Funding County Commissioners Association Webinar March 12, 2014
Ohio Water Development Authority
Ohio Water Development Authority was created by the Ohio Legislature in 1968 To preserve, protect, upgrade, conserve, develop, utilize and manage the water resources of the state To promote beneficial uses of the waters of the state To assist in the financing of waste water facilities To assist and cooperate with local governmental agencies in achieving such purposes
The Ohio Legislature Sold $100 million in State General Obligation Bonds Created a revolving loan fund Created the Ohio Water Development Board
OWDA Board 5 members appointed by the Governor Director of Department of Natural Resources Director of Development Services Agency Director of Environmental Protection Agency
Revolving Loan Process Make loans Sell bonds to raise additional funds Loan repayments to pay bondholders Make additional loans Cycle repeats
OWDA Makes Loans for: Planning and Design Construction
Eligible Recipients are Local Governmental Agencies Villages Counties Water and Sewer Districts Cities School Districts Conservancy Districts
Entities not eligible: Townships Non-profit Corporations For-profit Corporations
Types of Projects include: Water supply and distribution facilities Wastewater treatment and collection facilities Stormwater facilities Solid waste facilities
Interest Rate Calculated monthly Bond Buyer 20-year GO Index Averaged for eight weeks prior to rate setting
Planning Loan Terms 5 years Semi-annual repayments begin one year after approval 1/40 th principal amount Due in full at end of term Due in full at time of construction Interest rate set at time of loan approval Interest accrues as funds are expended
Construction Loan Terms 5 to 30 years No prepayment Interest rate set at time of loan approval Some discounts available Interest accrues as funds are disbursed Interest up to six months before first payment date is capitalized to the loan
Construction Loan Discounts ½ % for meeting a health concern ½ % for regionalization ½ % for being a previous borrower ½% for having an approved Balanced Growth Plan Maximum of 1%
Community Assistance Loans 2% interest rate for qualified communities Fewer than 2,000 customers or 5,000 population Water user charges 1.1% of MHI Wastewater user charges 1.5% of MHI Combined user charges 2.6% of MHI Discounts apply except for previous borrower
OWDA Requirements Rates in place to support debt and expenses of the system Bids taken for construction loans All environmental permits received Local governmental legislation to enter into the agreement Demographic and financial information including last three audits
OWDA loans do not count against: Voted net indebtedness limit Non-voted net indebtedness limit Does not require additional coverage
One-time administrative fee 35 basis points of loan amount $400 minimum
Board meets monthly except for November for approval of loans Funds available within two weeks Contractors can be paid directly Local government reimbursed for all other costs
Application Due Dates 15 th of month November 25th for December meeting
No priority system Loans awarded on a first come, first serves basis No limit to OWDA funds
www.owda.org Application forms Information regarding existing loans Audit information and confirmations Interest rates Program guidelines
Water Pollution Control Loan Fund Ohio s Clean Water State Revolving Fund (SRF) Created out of Clean Water Act amendments of 1987 Enabling legislation (ORC 6111.036) passed by Ohio Legislature in 1989
Water Pollution Control Loan Fund Jointly administered by Ohio EPA and OWDA Similar revolving loan process, except State also receives an annual federal capitalization grant Lower than market rate loans for: Wastewater treatment Non-point source treatment Stormwater
Water Pollution Control Loan Fund Since inception in 1989, have awarded over 1,700 loans totaling over $6 Billion. Below-market interest rates have saved Ohio communities over $1.4 Billion in interest payments. WPCLF has capacity to loan out $500 million/year for an extended period of time (>20 years)
Water Pollution Control Loan Fund Loans are available for planning, design, and construction Eligible Applicants include any publiclyowned treatment works, such as Villages, Cities, Counties, Water and Sewer Districts Entities not eligible include Townships, Non-profit Corporations, For-profit corporations
Water Pollution Control Loan Fund Project nominations accepted in August each year (August 31 st deadline). Projects are placed on a project priority list which is finalized by January 1 st each year WPCLF has had adequate funds to assists all projects that meet program requirements
Water Pollution Control Loan Fund Types of Projects include: New Wastewater Treatment Plants (WWTP) WWTP Upgrades and Rehabilitation New Sanitary Sewers for unsewered areas Sanitary Sewer Rehabilitation or Replacement Correction of Combined Sewer Overflows Nonpoint Source Pollution Control Projects - Stream Protection and Stream Restoration - Landfill Closure - Development of HSTS Replacement Programs
Water Pollution Control Loan Fund Interest Rates and Terms Standard Rate Established monthly, 20GO Bond Index minus 1.25% (March 2014 = 3.33%) Small Community Rate Standard Rate minus additional 0.50% (March 2014 = 2.83%) Hardship Interest Rates 0% = Pop. 2,500; MHI < 48,750 1% = Pop. 2,500-10,000; MHI <$44,425 30-year Term (>$20M, CSO projects) Same rate as 20-year term
Water Pollution Control Loan Fund Interest Rate Discounts 1. Septage receiving Facilities (interest rate savings up to the cost of the project) 2. Conversion from Class B to Class A Sludge (0.2%) 3. Sustainable Growth Plan Implementation (0.1%) 4. Water Resource Restoration Sponsor Program (up to 0.1%) 5. Green Project Reserve (0.1%)
Water Pollution Control Loan Fund 2014 Program Highlights 1. No limits (minimums or maximums) on borrowing 2. 4 th year of offering limited principal forgiveness ($5 million) 3. Introduced the 30-year term for large CSO projects 4. New Green Project Discount
Drinking Water Assistance Fund Ohio s Drinking Water State Revolving Fund (SRF) Created out of Safe Drinking Water Act amendments of 1996 Enabling legislation (ORC 6109.22) passed by Ohio Legislature in 1997
Drinking Water Assistance Fund Jointly administered by Ohio EPA and OWDA Lower than market-rate loans for drinking water projects necessary to meet standards Public Health Needs Systems in violation of contaminant limits
Drinking Water Assistance Fund Since first award in 1998, have awarded over 440 loans totaling over $987 million. Below-market interest rates have saved Ohio communities over $225 million in interest payments. DWAF has capacity to loan out $150 million/year for an extended period of time (>20 years)
Drinking Water Assistance Fund Loans are available for planning, design, and construction Eligible Applicants include Community Water Systems and non-profit noncommunity public water systems
Drinking Water Assistance Fund Project nomination deadline is March 1 st each year. Projects are placed on a project priority list which is finalized by July 1 st each year DWAF has had adequate funds to award loans to the majority of eligible applications
Drinking Water Assistance Fund Types of Projects include: New Water Treatment Plants (WTP) WTP Upgrades and Rehabilitation New Waterlines (for existing areas w/o public water) Waterline Replacement Water Towers and Booster Stations Water Meters Back-up Power; Interconnections
Drinking Water Assistance Fund Funding Categories, Interest Rates & Terms Disadvantaged Community Tier I Disadvantaged Community Tier II Disadvantaged Community Tier III Non-Disadvantaged w/affordability Pts Up to 40% PF / 0% rate for up to 30 years Up to 30% PF / 2% rate for up to 30 years Up to 20% PF / 2% rate for up to 30 years 2% rate, term = 20 years Small System(<10k)/Long Term Standard Rate minus 0.50% (March 2014 = 2.83%) Standard Long Term Est. monthly (20 GO Bond avg 1.25%) (March 2014 = 3.33%)
Drinking Water Assistance Fund A Look at 2015. Program features under consideration now Emphasis on project planning Likely to make at least $150 million available for 2015 Areas of possible future emphasis are: regionalization, capability assurance, asset management, secondary connections/back-up sources, standby power, and harmful algal blooms (HABs)
The OWDA, WPCLF and DWAF programs have provided over $11 billion in loans to local governments in Ohio to meet their environmental infrastructure needs.
Other Public Funding Programs
Ohio Public Works Commission State Capital Improvement Program funds: Roads Bridges Water Supply Wastewater Solid Waste Storm Water
ODSA Office of Community Development Community Development program Non-entitlement counties, cities benefit low- and moderate-income persons and/or eliminate blighted areas Residential Public Infrastructure Grant program Create a safe and sanitary living environment needy communities in rural areas of Ohio as they work to comply with Environmental Protection Agency mandates http://www.development.ohio.gov/cs/cs_cdbg.htm
ODSA GOA Development Services Agency Governor s Office of Appalachia http://www.development.ohio.gov/cs/cs_goa.htm/ Grant funds for construction of water and wastewater projects Federal Appalachian Regional Commission (ARC) and state GRF funds Projects located in Ohio s 32-county Appalachian region Two programs Area Development and Distressed Counties
ODSA GOA Development Services Agency Governor s Office of Appalachia For more information, contact your LDD Eastgate Eastgate Regional Council of Governments http://www.eastgatecog.org OMEGA Ohio Mid-Eastern Governments Association http://www.omegadistrict.org Buckeye Hills - HVRDD Buckeye Hills Hocking Valley Regional Development District http://www.buckeyehills.org OVRDC Ohio Valley Regional Development Commission http://www.ovrdc.org
Rural Development Goals Loan/Grant funds for water, wastewater, and storm water projects serving most financially needy communities Facilities that are modest in size, design, and cost Reasonable user costs for rural residents, rural businesses, and other rural users http://www.rurdev.usda.gov/oh/
Economic Development Administration (EDA) Investment Focus Support long-term, coordinated and collaborative regional economic development approaches Support innovation and competitiveness Encourage entrepreneurship 3 Key Investment Programs Expand and upgrade physical infrastructure (Public Works) Design and implement strategies to diversify economies (Economic Adjustment) Learn from leading-edge economic development best practices (Technical Assistance) www.eda.gov
Technical Assistance Ohio Rural Community Assistance Program Ohio State University Extension Ohio Environmental Protection Agency Ohio Rural University Program Ohio Rural Water Association
Ohio RCAP Services Program Planning Facility Development Operation and Maintenance Management and Finance Source Water/Wellhead Protection Planning www.glrcap.org/ohio
Ohio RCAP Board Training Course 101 Utility Management for Local Officials Course 201 Financial Management for Local Officials Course 301 Asset Management, Budgeting, and Rate Setting for Local Officials CUPSS Training Check Up Program For Small Systems # 50 www.glrcap.org/ohio
Small Communities Environmental Infrastructure Group (SCEIG) Helping Small Communities meet their Water & Wastewater System Needs
What is S C E I G? An association formed in 1990 Federal Agencies State Agencies Local/Regional Groups Educational Institutions Technical Assistance Providers Financial & Regulatory www.sceig.org
Typical Communities Smaller communities With no system, older system Lower than average MHI figures Older, un-employed populations Lower Rates, Fewer Increases Slower than inflation Administrative Capacity Little/no grant experience www.sceig.org
We usually work with Local officials Elected and Appointed Other Federal/State/Local Agencies Regulators and Funders Consulting Engineers Design and Technologies Technical Assistance Providers www.sceig.org
For further information: Contact the Ohio Water Development Authority at www.owda.org or 614 466-5822 Contact the Ohio Environmental Protection Agency, Division of Environmental and Financial Assistance at www.epa.ohio.gov/defa/ 614 644-2798