What’s New with the Iowa Rural Water Association Annual Conference February 18-20, 2013 Patti Cale-Finnegan Department of Natural Resources STATE REVOLVING FUND SRF Background The SRF is one of Iowa’s primary sources of financing for drinking water and wastewater infrastructure, storm water quality, and nonpoint source protection SRF Background SRF programs authorized by Clean Water Act and Safe Drinking Water Act and administered by U.S. Environmental Protection Agency SRF Background • Iowa Department of Natural Resources – – – – Program planning and prioritization Project planning and permitting Environmental review Federal compliance • Iowa Finance Authority – – – – Financial management Bond issues Loan processing Loan disbursements 1989 - 2002 LOW-INTEREST LOANS FOR Water and wastewater infrastructure only 2003 - Present Water and Wastewater Onsite Septic Systems Planning and Design Lake and Wetland Restoration Soil, Sediment, and Nutrient Management Source Water Protection Brownfield Cleanup Energy and Water Efficiency Sponsored Projects Urban Stormwater Landfill Closure Drinking Water SRF • Loans for: – Improvements to public water supply systems – Consolidations and connections – Source water protection • DWSRF set-asides fund technical assistance, capacity development, state drinking water program, SWP Clean Water SRF • Loans for: – Publicly owned wastewater treatment facilities – Sewer system rehabilitation – New systems for unsewered communities – Stormwater management for water quality – Nonpoint source pollution control Types of Loans • Planning & design • Construction • Source water protection • Stormwater BMPs • Watershed protection SRF Has Loaned Over $2 Billion $2,500,000,000 $2,000,000,000 $1,500,000,000 Drinking water Nonpoint $1,000,000,000 $500,000,000 $- Wastewater What’s New: Interest Rates • Interest rate for loans up to 20 years reduced to 1.75%. • Interest rate for extended terms (between 20 and 30 years) varies. What’s New: Fees • Origination fee reduced from 1% to 0.5% • Servicing fee 0.25%. Only charged on outstanding balance. Billed twice/year with interest. What’s New: Disadvantaged Rate and Term -- DWSRF • Term up to 30 years based on useful life. •DWSRF – must be disadvantaged based on CDBG criteria. •DWSRF– disadvantaged interest rate is 1.75%. •DWSRF – no “non-disadvantaged” interest rate. What’s New: Extended Term -CWSRF • Term up to 30 years based on useful life. •CWSRF– available to all projects •CWSRF– disadvantaged interest rate is 1.75%. •CWSRF –“non-disadvantaged” interest rate is 2.75%. What’s New: Disadvantaged Criteria -- CWSRF •Communities must be determined to be disadvantaged based on criteria in Iowa Code section 455B.199B, Disadvantaged Communities Variance, as amended by Senate File 407 on April 28, 2011. •DNR adopted rules to implement the statute. •SRF will use these rules to establish disadvantaged status for purposes of allowing reduced interest rate of 1.75%. What’s New: Sponsored Projects -- CWSRF •Water Resource Restoration “sponsored projects” Servicing Fees Interest •Nonpoint source project (e.g. green infrastructure, watershed protection) paired with wastewater loan Principal •City borrows more, repays same amount, gets two projects for the cost of one Current CWSRF Loan CWSRF Loan with WRR Project What’s New: Sponsored Project Applications • Application packet on-line at www.IowaSRF.com •Required application workshops: Feb. 26 (Des Moines), Feb. 28 (Coralville), March 13 (Cherokee) • Application deadline: July 19, 2013 How the SRF Helps • “This was our first experience with the SRF. We appreciated all the assistance we received for our many questions!” Lyon-Sioux Rural Water How the SRF Helps • “The SRF allowed the City of Stacyville to make the necessary improvements to our infrastructure when it was needed. ” Harlan Bisbee City Clerk, Stacyville How the SRF Helps • “The SRF provided the lowest rates available for the City of Shenandoah to finance improvements to the Waste Water Treatment Facility. ” Marcia McKay, City Clerk/Treasurer Shenandoah How the SRF Helps • “The City of Ankeny really appreciated being able to use SRF funding for our brownfield cleanup project, as well as the guidance provided by the DNR and IFA staff.” Jolee Belzung Director of Municipal Utilities, Ankeny How the SRF Helps • “The low-interest loan made a huge difference in my livestock water quality project. The people I worked with were helpful and the paperwork was simple. ” Justin Rozeboom Sioux County Questions Patti Cale-Finnegan Iowa Department of Natural Resources 515-725-0498 [email protected] Lori Beary Iowa Finance Authority 515-725-4965 [email protected] THANK YOU!