KENTUCKY INFRASTRUCTURE AUTHORITY

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KENTUCKY INFRASTRUCTURE AUTHORITY
Office of the Governor Governors Office for
Local Development 1024 Capital Center Drive,
Suite 340 Frankfort, Kentucky 40601 502-573-0260 h
ttp//kia.ky.gov
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Planning to Succeed

• The Planning Process
• Grants
• Loans

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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

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Regional Water Management Councils

• In place across Kentucky and conform to KYs 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

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Grants
Kentucky Infrastructure Authority Office of the
Governor
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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

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Grants Youre 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

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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.

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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.

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Agency Contacts For Grant Programs

• Kentucky Infrastructure Authority (KIA)
• Debby Milton
• Financial Analyst
• Suzanne Anderson
• Financial Analyst
• Kelli Rice
• Financial Analyst
• Phone [phone]

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Optimizing Funding

• But sometimes a grant
• isnt the whole answer

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Loans
Kentucky Infrastructure Authority Office of the
Governor
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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

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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)

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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)

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General Funding Requirements

• Must have WX or SX
• Uniform System of Accounts
• Cost Based Rates
• e-Clearinghouse
• Must be approved by KIA Board

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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)

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Kentuckys 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.

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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

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Ineligible Projects Fund A

• Laboratory Fees and Other Monitoring Expenses
• Operation and Maintenance Expenses

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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

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Ineligible Projects Fund F

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

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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

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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

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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

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Agency Contacts For SRF Program

• Division of Water
• (DOW)
• Donna Marlin
• Drinking Water Branch Manager
• Shafiq Amawi
• Facilities Construction Branch Manager
• Lola Lyle
• Program Administration Section Supervisor
• Phone [phone]

• KY Infrastructure
• Authority (KIA)
• Sandy Williams
• Financial Analyst
• John Covington
• Financial Analyst
• Chris Whitaker
• Financial Analyst
• Phone [phone]

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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

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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

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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

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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)

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For more information contact Kentucky
Infrastructure Authority 1024 Capital Center
Drive, Suite 340 Frankfort, KY 40601 (502)
573-0260 http//kia.ky.gov