Pine-Strawberry Water Improvement District

Pine-Strawberry Water Improvement DistrictCapital Project Public FinancingBoard Member PresentationSam Schwalm

September 12, 2013Pine-Strawberry Water Improvement DistrictCapital Project Financing:Financing ChallengesRe-finance of current loans which are due in 5 years ($7,080,000)Financing of future capital projectsWater Infrastructure Finance Authority (WIFA)WIFA will provide refinancing in conjunction with a new project, BUT the term of the loan has to match the current loanWIFA does have plenty of very low cost money to lend for future capital projectsTwo month turn around on their side once we complete on-line application and required authorizationsNo minimum amountIn 2.5% to 3% range with 20 year termRural Community Assistance Corporation (RCAC) will provide project loans up to $100,000In 5% range with 20 year termNo refinancing of existing loansNeed to explore what Rural Development agency may be able to provide

2Pine-Strawberry Water Improvement DistrictFor water project financing, WIFA is the lender of choice due to their AAA interest ratesInteresting that all the Master Plan submittals talked about how they could help the District obtain project financing from WIFAPSWID will have a great many projects to fund over the years. It would be useful for the District to understand the process for obtaining loans from WIFAPSWID can gain that experience by selecting a small capital project and obtaining a loan from WIFA for itPSWID also needs to gain an understanding of what the scope and duration of a project can be.If we can identify two years worth of capital spending as a single project to WIFA, then we can have a simple approach to obtaining financing that matches the Districts spending needs

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