What’s New with the What’s New with the STATE STATE REVOLVING REVOLVING FUND FUND Patti Cale-Finnegan Patti Cale-Finnegan Department of Natural Department of Natural Resources Resources Iowa Rural Water Iowa Rural Water Association Annual Association Annual Conference Conference February 18-20, 2013 February 18-20, 2013
What’s New with the STATE REVOLVING FUND. ?. Iowa Rural Water Association Annual Conference February 18-20, 2013. Patti Cale -Finnegan Department of Natural Resources. SRF Background. - PowerPoint PPT Presentation
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What’s New with theWhat’s New with the
STATE STATE REVOLVING REVOLVING
FUNDFUNDPatti Cale-FinneganPatti Cale-FinneganDepartment of Natural ResourcesDepartment of Natural Resources
Iowa Rural Water Association Iowa Rural Water Association Annual ConferenceAnnual ConferenceFebruary 18-20, 2013February 18-20, 2013
SRF BackgroundSRF 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 programs authorized by Clean Water Act and Safe Drinking Water Act and administered by U.S. Environmental Protection Agency
SRF BackgroundSRF Background
• Iowa Department of Natural Resources– Program planning and prioritization – Project planning and permitting– Environmental review– Federal compliance
• 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: What’s New: FeesFees• 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: What’s New: Disadvantaged Rate Disadvantaged Rate and Term -- and Term -- DWSRFDWSRF
• 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: What’s New: Extended Term --Extended Term --CWSRFCWSRF
• 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: What’s New: Disadvantaged Disadvantaged Criteria -- Criteria -- CWSRFCWSRF•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%.
How the SRF HelpsHow 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 HelpsHow the SRF Helps• “The SRF allowed the City of
Stacyville to make the necessary improvements to our infrastructure when it was needed. ” Harlan BisbeeCity Clerk, Stacyville
How the SRF HelpsHow 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 HelpsHow 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 BelzungDirector of Municipal Utilities, Ankeny
How the SRF HelpsHow 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. ”