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

Planning to Succeed

The Planning Process

• Grants

• Loans

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

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

Kentucky Infrastructure AuthorityOffice of the Governor

Grants

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

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

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.

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.

Agency Contacts For Grant Programs

Kentucky Infrastructure Authority (KIA)

Debby Milton Financial Analyst

Suzanne AndersonFinancial Analyst

Kelli RiceFinancial Analyst

Phone 502-573-0260

Optimizing Funding

But sometimes a grant

isn’t the whole answer…

LoansKentucky Infrastructure Authority

Office of the Governor

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

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)

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)

General Funding Requirements

• Must have WX or SX #

• Uniform System of Accounts– Cost Based Rates

• e-Clearinghouse

• Must be approved by KIA Board

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)

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.

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

Ineligible Projects – Fund A

• Laboratory Fees and Other Monitoring Expenses

• Operation and Maintenance Expenses

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

Ineligible Projects – Fund F

• Compliance Monitoring• Operation and Maintenance• Reservoirs (raw water)• Dams or Dam Rehabilitation• Water Rights• Growth• Fire Protection

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

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

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

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

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

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

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

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)

For more information contact:

Kentucky Infrastructure Authority1024 Capital Center Drive, Suite 340

Frankfort, KY 40601(502) 573-0260

http://kia.ky.gov