Oklahoma Financial Management Workshop April 2, 2015 JENNIFER WASINGER, ASSISTANT CHIEF Financial Assistance Division Oklahoma Water Resources Board
Meeting Oklahoma’s current and future water challenges… Competing water interests Economic development Population growth Future water needs Fish & recreation needs Water and wastewater infrastructure costs Vulnerability to long-term drought/flooding
Oklahoma’s Precipitation History Have plans in place for drought times and be ready to take advantage of times of plenty!
Water for 2060 Advisory Council www.owrb.ok.gov/2060 Members: J.D. Strong, Chairman • Jim Bachmann (Tulsa) • Lauren Brookey (Tulsa) • Tom Buchanan (Altus) • Bob Drake (Davis) • Danny Galloway (Stillwater) • Roger Griffin (Broken Bow) • Charlette Hearne (Broken Bow) • Mark Helm (OKC) • Nathan Kuhnert (OKC) • Phil Richardson (Minco) • Kevin Smith (Enid) • Trent Smith (Choctaw) • Joe Taron (Shawnee) • Jerry Wiebe (Hooker) •
Water for 2060 ACT Advisory Council Tasks www.owrb.ok.gov/2060 – Recommend incentives for water use efficiency measures and programs – Recommend education programs that modify and improve water consumption practices – Enhance existing or develop new financial assistance programs for leak detection & repair programs
OWRB Assistance Available • Five grant and loan programs for water and wastewater infrastructure – Emergency and Emergency Drought Grants – Rural Economic Action Plan Grants – Financial Assistance Loan Program – Clean Water State Revolving Fund – Drinking Water State Revolving Fund
Eligibility for All Programs • Political Subdivisions of the State – Counties, towns, municipalities – Rural water, sewer, irrigation districts – Water conservation districts – School districts
Emergency Grants • Point-based grant program designed to assist communities facing crises which threaten life, health or property – Maximum grant available $100,000 – 15% local contribution required – Highest point total receives priority – 60 point minimum 120 point maximum – Open funding cycle (as funds are available)
Emergency Scoring Criteria • Type of Emergency • Water and Sewer Rate Structure • Indebtedness per Customer • Median Household Income • Applicant Ability to Finance Project • Amount Requested ($100,000 maximum) • Consolidation/Benefit to other Systems • Previous Emergency Grant Awards
Emergency Drought Grants • Available only if the Governor declares a drought emergency and if there are funds available – Same scoring criteria with the exception of the drought ranking – Highest priority for impacts to human consumption and extreme drought based on the Palmer Drought Severity Index
REAP Grants • Point Based program designed to assist smaller communities that lack sufficient fiscal capacity. – Population must be 7,000 people or less – Higher Priority given to: • Entities with a population less than 1,750 people • RWD with less than 525 non pasture taps • School districts with less than 525 students – Application must be received by 5:00pm on the first business day in September – Available funds divided between COG’s – Highest Point total within each COG gets priority
REAP Scoring Criteria • Population (Customers) • Water and Sewer Rate Structure • Indebtedness per Customer • Median Household Income • Applicant Ability to Finance Project • Enforcement Order (Need) • Amount Requested ($150,000 maximum) • Deduction for previous REAP Grant Awards • Deduction for open audit or refund due as of Aug 31st • No match requirement
Financial Assistance Program Eligible Projects • Construction Projects related to water and/or sewer system improvements • Refinancing of existing water and/or wastewater debt obligations Water Supply Reservoirs Water Rights Acquisition Storage Tanks Water Storage Rights Acquisition Water Supply and Distribution Land Acquisition for Treatment Lines Systems and Source Water Water Treatment Systems Protection Wastewater Treatment Systems Stormwater Sewer System Wastewater Collection Systems Overflow correction
Loan Terms • Minimum payback 6 months • Maximum payback 30 years • Variable or fixed interest rates available • Up to 10% reserve required • 1.25x rate covenant required
Clean Water SRF • The purpose of the program is to provide financial assistance for wastewater and water quality infrastructure improvements to achieve or maintain compliance with the CWA • Program funding includes EPA Capitalization Grant, matching funds, and OWRB issued bonds • Pre-funding elements include: – Request for funding – Engineering report with cost effectiveness – Environmental review documentation – Transcript of public meeting/hearing – Loan pre-application
CWSRF Eligible Projects • Engineering/technical planning, monitoring, assessment, design, construction of eligible projects – Wastewater treatment, collection, storage, disposal infrastructure or equipment (new construction or rehabilitation) – Urban stormwater activities – Water reuse and conservation – Green infrastructure and water/energy efficiency projects – Watershed management/nonpoint source pollution control activities
CWSRF Loan Terms • Interest rate equal to 60% of Municipal Market Daily (mmd) AAA scale spot rates for each year through maturity plus 70 basis points • Calculated approximately 10 days before loan closing • 0.50% administrative fee • Up to 30 Year Amortization available based on useful life of infrastructure constructed • 1.25x debt coverage ratio • No reserve requirement • Principal payback after construction complete • Local trustee bank
Drinking Water SRF • The purpose of the program is to provide financial assistance for drinking water infrastructure improvements to achieve or maintain compliance with Safe Drinking Water Act • Co-administered with the Oklahoma DEQ • Program funding includes portion of EPA Capitalization Grant to DEQ, as well as OWRB matching funds and bonds • Pre-funding elements include: – Request for funding to ODEQ – Engineering report with cost effectiveness and plans and specifications to ODEQ – Environmental review documentation to ODEQ – Loan pre-application to OWRB
DWSRF Eligible Projects • Engineering/technical planning, monitoring, assessment, design, construction of eligible projects – Drinking water treatment – New intake/raw water lines – Major distribution/storage system rehabilitation – Source Water Protection – New storage – Regionalization/Consolidation – Creation of New Systems
DWSRF Loan Terms • Interest rate equal to 70% of Municipal Market Daily (mmd) AAA scale spot rates for each year through maturity plus 70 basis points • Calculated approximately 10 days before loan closing • Principal repayment begins within 1Year of completion of construction • 1.25x debt ratio required • 6 month to 20 year payback, 30 year payback available for disadvantaged communities • No reserve requirements • Local trustee bank
Getting to 2060 Starts and Ends with Local Planning! • Create your long-term Plan! including financing • Start using less Today! Implement immediate solutions to preserve existing supply- e.g. use ordinances, back-up supply contracts, conservation rate structures, maintain storage. • Don’t forget your Water Rights! Obtain and maintain water rights, construct storage, submit annual use report, avoid stream water right forfeiture • Diversify your Water Portfolio! Reuse or new sources
Online Resources Water For 2060
Questions? Jennifer Wasinger, Assistant Chief Financial Assistance Division Oklahoma Water Resources Board jennifer.wasinger@owrb.ok.gov www.owrb.ok.gov 24
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