© 2009 mwh all rights reserved city and private equity sharing introducing the capes™ model
TRANSCRIPT
© 2009 MWH
All Rights Reserved
City and Private Equity SharingIntroducing the CAPES™ model
Government-Owned Pension Plans!
Do we need a new model?
• Is it possible to build a true public-private partnership that shares ownership?
• How can we develop the billions we need for infrastructure development from debt financing alone?
• Can we develop a model that allows the billions of Private Investment Dollars that want to invest in this infrastructure?
City and Private Equity Sharing (CAPES™)
•A partnership model where private and public sectors truly share in ownership and responsibility
•Provide a city the opportunity to monetize a portion of its water and wastewater assets
•Retain attributes of a city-owned system that allow it to participate in grant programs and issue tax-exempt debt
•Foster efficiency and economy to pay a return to both the City and third-party owners
Overview of new organization – CAPES™ model
CustomersCustomers
NewCorporation
NewCorporation
Transfer assets and debts
Receive corporate shares & cash
Annual return to city
MinorityShareholderOwnership
MinorityShareholderOwnership
Up to 49%
Sale proceeds
CityOwnership
CityOwnership
State Utilities Commission Sets Rates
State Utilities Commission Sets Rates
Annualreturn toshareholders
4
Sale of equity in new corporation retains majority
ownership and control for the City
Tax Exempt Debt, SRF,and Grants
Tax Exempt Debt, SRF,and Grants
CustomersCustomers
NewCorporation
NewCorporation
Transfer assets and debts
Receive corporate shares & cash
Annual return to city
Preferred Stock(Mimics Debt)
Preferred Stock(Mimics Debt)
Up to 49%
Sale proceeds
CityEnterprise Fund
CityEnterprise Fund
5
There are multiple variations to handle rate setting in the state
PUC, or through alternate means.
Overview of new organization – CAPES™ model
Annualreturn toshareholders
Tax Exempt Debt, SRF,and Grants
Tax Exempt Debt, SRF,and Grants
City and Private Equity Sharing (CAPES™)
• Richard W. Splete, New York• Lead Finance Consultant• [email protected]