kentucky infrastructure authority
DESCRIPTION
KENTUCKY INFRASTRUCTURE AUTHORITY. Office of the Governor Governor’s Office for Local Development 1024 Capital Center Drive, Suite 340 Frankfort, Kentucky 40601 502-573-0260 http://kia.ky.gov. Planning to Succeed. The Planning Process Grants Loans. - PowerPoint PPT PresentationTRANSCRIPT
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KENTUCKY INFRASTRUCTURE AUTHORITY
Office of the GovernorGovernor’s Office for Local Development
1024 Capital Center Drive, Suite 340Frankfort, Kentucky 40601
502-573-0260http://kia.ky.gov
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Planning to Succeed
The Planning Process
• Grants
• Loans
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Planning Process for Water & Wastewater
• Project concept• Discuss alternatives & opportunities with ADD
coordinator utilizing the WRIS• Work with engineer to develop plan & design• Develop project profile• Consider funding sources• Profile approved by the WMC (WX/SX number
assigned)• Project ranked using current criteria• List of ranked projects provided to legislators
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Regional Water Management Councils
• In place across Kentucky and conform to KY’s 15 area development districts
• Comprised of a group of elected and appointed leaders, utility representatives, health department representatives and citizens at large
• Will use planning to provide direction, not dictate route
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Kentucky Infrastructure AuthorityOffice of the Governor
Grants
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Grants – Where You Start
The first step is preparation and planning.
• Identify project for which funding is needed
• Create and submit a project profile
• Obtain approval of Area Water Management Council and go through prioritization process
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Grants – You’re in the Budget
• Grantee (as identified in Budget) is notified of grant award
• Grantee designates a Project Administrator (an important decision) • Grantee designates a Project Number
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Grants – Doing the Paperwork
• Grant Assistance Agreement is prepared and forwarded to Grantee for execution
• Grantee completes Assistance Agreement and Exhibits and submits to KIA.
• KIA executes Assistance Agreement and submits to Capital Projects and Bond Oversight Committee for approval.
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Grants – Getting Your Money
• Once construction begins, pay requests are submitted to KIA with supporting invoices.
• Pay requests are reviewed and approved.
• Funds are electronically transferred to the designated bank account.
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Agency Contacts For Grant Programs
Kentucky Infrastructure Authority (KIA)
Debby Milton Financial Analyst
Suzanne AndersonFinancial Analyst
Kelli RiceFinancial Analyst
Phone 502-573-0260
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Optimizing Funding
But sometimes a grant
isn’t the whole answer…
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LoansKentucky Infrastructure Authority
Office of the Governor
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Why Use Loans?
• Project is needed NOW!
• Cannot get sufficient grant funding
• Will not significantly impact rates
• Funding package in place and bids come in over estimates
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Projects KIA Loans Can Fund
• Wastewater Projects
• Drinking Water Projects
• Solid Waste Projects
• Storm Water Control and Treatment
• Broadband Projects
• Gas or Electric Utility
• Environmental Remediation (Brownfields)
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Eligible Borrowers
• Governmental Agency– City– County– Special District
• No Federal Agencies
• For Fund A and Fund F Project MUST BE listed on the SRF Priority List. (Different from Water Management Council Priority List)
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General Funding Requirements
• Must have WX or SX #
• Uniform System of Accounts– Cost Based Rates
• e-Clearinghouse
• Must be approved by KIA Board
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KIA Loan Programs
• Clean Water State Revolving Fund (Fund A)
• Infrastructure Revolving Loan/Grant (Fund B)
• Governmental Agencies Program (Fund C)
• Drinking Water State Revolving Fund (Fund F)
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Kentucky’s SRF Programs
• Fund A–Clean Water State Revolving Fund–Established in the Clean Water Act
• Fund F–Drinking Water State Revolving Fund–Established in the Safe Drinking Water Act
• Loans for planning and design (A1 or F1) are available to expedite a project, which may be rolled into a construction loan.
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Eligible Projects – Fund A
• Wastewater Collection, Conveyance, & Treatment Facilities
• Storm Water Collection, Conveyance, & Treatment Facilities
• Implementation of Nonpoint Source Pollution Control Management Programs;
• Purchase of Wastewater System
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Ineligible Projects – Fund A
• Laboratory Fees and Other Monitoring Expenses
• Operation and Maintenance Expenses
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Eligible Projects – Fund F
• Replace Inadequate/Aging Infrastructure• Upgrade Treatment Facilities• Install or Upgrade Storage• Rehab Wells or Develop Source Water• Consolidation/Purchase of Water Systems• Extension of Service to Existing Homes to
Address Quantity and Quality Issues• Security Measures
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Ineligible Projects – Fund F
• Compliance Monitoring• Operation and Maintenance• Reservoirs (raw water)• Dams or Dam Rehabilitation• Water Rights• Growth• Fire Protection
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Loans – Where You Start – Funds A & F
• Project Profile– Area Water Management Council– WX or SX #
• Call for Projects– Look for Notices in October
• Priority Lists– Expect List to be Available Spring 2008
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Current SRF Rates
Interest Rate set annually by the KIA Board.
– Standard Rate is 3.0%– Non-Standard Rate is 1.0%– Criteria for Non-standard Rate based on:
• MHI of Jurisdiction• MHI of service area• Regionalization• Orders or Judgments• Public Health or Safety Issues• Environmental Concerns• Financial Considerations
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Repayment Terms
• Repayment Period
– CWSRF – 20 Years– DWSRF – 20 Years (may be 30 years if
disadvantaged community)
• Financing Expenses
– CWSRF – 0.020% Servicing Fee– DWSRF – 0.025% Servicing Fee
• Debt Service Reserve: None
• Replacement Reserve: Negotiable
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Agency Contacts For SRF ProgramDivision of Water
(DOW)
Donna MarlinDrinking Water Branch Manager
Shafiq AmawiFacilities Construction Branch
Manager
Lola LyleProgram Administration Section
Supervisor
Phone 502-564-3410
KY InfrastructureAuthority (KIA)
Sandy Williams Financial Analyst
John CovingtonFinancial Analyst
Chris WhitakerFinancial Analyst
Phone 502-573-0260
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Fund B and Fund C
• Programs Are Being Restructured– Will Have Subsidized Interest Rate– Loan Terms are normally 20 years
(can be 30 years in certain circumstances)• Limited to the life of the asset being funded
• Limited Funds Available
• State Funds
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Fund B and Fund C
• No federal requirements
• e-Clearinghouse
• Must follow appropriate procurement policies
• State prevailing wage rates may apply
• Will have same interest rates as Fund A and
Fund F
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Proposed Fund B and C Interest Rates
Interest Rate set annually by the KIA Board.
– Standard Rate is 3.0%– Non-Standard Rate is 1.0%– Criteria for Non-standard Rate based on:
• MHI of Jurisdiction• MHI of service area• Regionalization• Orders or Judgments• Public Health or Safety Issues• Environmental Concerns• Financial Considerations
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Successes
• Kentucky ranks in the top 5 nationally in percentage of state population with access to community water systems.
• Kentucky currently has just over 500 regulated public water systems (reaching more people with fewer systems than comparable states)
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For more information contact:
Kentucky Infrastructure Authority1024 Capital Center Drive, Suite 340
Frankfort, KY 40601(502) 573-0260
http://kia.ky.gov