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
1/40th 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
•15th 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 31st deadline).
• Projects are placed on a project priority
list which is finalized by January 1st 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
2.
3.
4.
5.
the cost of the project)
Conversion from Class B to Class A Sludge (0.2%)
Sustainable Growth Plan Implementation (0.1%)
Water Resource Restoration Sponsor Program (up to
0.1%)
Green Project Reserve (0.1%)
Water Pollution Control Loan Fund
2014 Program Highlights
1. No limits (minimums or maximums) on borrowing
2. 4th year of offering limited principal forgiveness ($5
3.
4.
million)
Introduced the 30-year term for large CSO projects
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 1st
each year.
• Projects are placed on a project priority
list which is finalized by July 1st 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
Up to 40% PF / 0% rate for up to 30 years
Disadvantaged Community – Tier II
Up to 30% PF / 2% rate for up to 30 years
Disadvantaged Community – Tier III
Up to 20% PF / 2% rate for up to 30 years
Non-Disadvantaged w/Affordability Pts
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
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
http://www.development.ohio.gov/cs/cs_goa.htm/
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
www.glrcap.org/ohio
# 50
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 4665822
• Contact the Ohio Environmental Protection
Agency, Division of Environmental and
Financial Assistance at
www.epa.ohio.gov/defa/ 614 644-2798