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STATE REVOLVING FUND PROGRAMS Mike Perkovich, P.E. Department of - - PowerPoint PPT Presentation
STATE REVOLVING FUND PROGRAMS Mike Perkovich, P.E. Department of - - PowerPoint PPT Presentation
STATE REVOLVING FUND PROGRAMS Mike Perkovich, P.E. Department of Environment and Natural Resources Water & Waste Funding Program Administrator Presentation Overview Introduction to the State Revolving Fund Programs Eligible
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State Revolving Fund Programs
Clean Water SRF
Established in 1989 First loan to Huron for $1,656,000
Drinking Water SRF
Established in 1997 First loan to Sturgis for $700,000
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State Revolving Fund Programs
Low-interest loan programs Governed by EPA Federal/State partnership Programs require state matching funds
Annual capitalization grants from EPA State must match on a 5:1 basis Match primarily generated through the issuance of bonds
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SRF Sources of Funds
Federal capitalization grants Issuance of bonds
State Match Leveraged
Repayments from borrowers Interest earned on un-loaned funds Transfers between SRF programs
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Eligible Applicants
Municipalities Counties Special Use Districts
Sanitary Districts Water User Districts
Non-profits organized to provide water services (non-profits not eligible
for CWSRF program)
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CWSRF Eligible Projects
All publicly owned wastewater treatment and conveyance Storm water Nonpoint source (NPS) pollution
Bank stabilization Certain components
- f landfill projects
Agricultural BMP’s
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DWSRF Eligible Projects
Most water storage, treatment, distribution, and source development Domestic use; not industrial use Cannot fund projects primarily for future growth or fire protection
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SRF Interest Rates
Base Rates
1.875% for loans up to 10 years 2.0% for loans up to 20 years 2.125% for loans up to 30 years
Project must have a useful life of 30 years
- r more
Interim Financing Rate
2.00% for 5 years
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DWSRF Disadvantaged Assistance Interest Rates
MHI > 80% of State MHI and < 100% 1.875% for 30 years MHI between 60% and 80% of State MHI 1.625% for 30 years or 1.0% for 10 years for water meter projects MHI < 60% of State MHI 0% for 30 years
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Additional Subsidy
Since American Recovery and Reinvestment Act (ARRA), states can provide additional subsidization
Grants Principal Forgiveness Negative interest rates
South Dakota chose principal forgiveness
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Additional Subsidy Requirements
Clean Water SRF
no less than 10% of cap grant, but no more than 40% Only for communities that meet affordability criteria (based on median household income, population trends, and unemployment)
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Additional Subsidy Requirements
Drinking Water SRF
no less than 20% of cap grant, but no more than 30% for any borrower Up to 30% for disadvantaged communities (based on median househoe income)
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Principal Forgiveness
Your community is awarded a $1,000,000 loan with 20% principal forgiveness not to exceed $200,000.
What does this mean?
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Principal Forgiveness
20% of the final loan amount will be “forgiven” when repayment starts If $1,000,000 drawn, principal to be repaid is $800,000 and interest payments are based on that amount If $600,000 drawn
PF = $600,000 X 0.2 = $120,000; Amount repaid is $480,000
Principal Forgiveness is a grant
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CWSRF Awards by Year
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CWSRF Awards
Through December 31, 2019
$896.9 million awarded 459 loans awarded 170 different borrowers
2020 Awards
$44,994,600 20 loans
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DWSRF Awards by Year
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DWSRF Awards
Through December 31, 2019
$592.3 million awarded 331 loans awarded 159 different borrowers
2020 Awards
$24,644,500 16 loans
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The Board of Water and Natural Resources has awarded nearly $1.56 Billion for infrastructure in South Dakota
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