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
• Iowa Finance Authority– Financial management– Bond issues– Loan processing– Loan disbursements
SRF BackgroundSRF Background
LOW-INTEREST LOANS FOR
Water and wastewater infrastructure only
1989 - 2002
2003 - PresentWater and
WastewaterPlanning and Design
Urban Stormwater
Soil, Sediment, and Nutrient Management
Onsite Septic
Systems
Source Water
Protection
Brownfield Cleanup
Landfill Closure
Lake and Wetland Restoration
Energy and Water Efficiency
Sponsored Projects
DrinkingDrinking Water SRFWater SRF• Loans for:
– Improvements to public water supply systems
– Consolidations and connections
– Source water protection
• DWSRF set-asides fund technical assistance, capacity development, state drinking water program, SWP
Clean Water SRFClean Water SRF• Loans for:
– Publicly owned wastewater treatment facilities
– Sewer system rehabilitation– New systems for unsewered
communities– Stormwater management for
water quality– Nonpoint source pollution
control
Types of LoansTypes of Loans
• Planning & design
• Construction
• Source water protection
• Stormwater BMPs
• Watershed protection
SRF Has Loaned Over $2 BillionSRF Has Loaned Over $2 Billion
What’s New: What’s New: Interest RatesInterest Rates
• 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%.
What’s New: What’s New: Sponsored Sponsored Projects -- Projects -- CWSRFCWSRF•Water Resource Restoration “sponsored projects”
•Nonpoint source project (e.g. green infrastructure, watershed protection) paired with wastewater loan
•City borrows more, repays same amount, gets two projects for the cost of one
What’s New: What’s New: Sponsored Sponsored Project ApplicationsProject Applications• Application packet on-line at www.IowaSRF.com •Required application workshops: Feb. 26 (Des Moines), Feb. 28 (Coralville), March 13 (Cherokee)
• Application deadline: July 19, 2013
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. ”
Justin RozeboomSioux County
QuestionsQuestions
Patti Cale-FinneganIowa Department of Natural [email protected]
Lori BearyIowa Finance [email protected]
THANK YOU!THANK YOU!
