September 12, 2013

Capital Project Financing: 1.Financing Challenges a.Re-finance of current loans which are due in 5 years ($7,080,000) b.Financing of future capital projects 2.Water Infrastructure Finance Authority (WIFA) a.WIFA will provide refinancing in conjunction with a new project, BUT the term of the loan has to match the current loan b.WIFA does have plenty of very low cost money to lend for future capital projects i.Two month turn around on their side once we complete on-line application and required authorizations ii.No minimum amount iii.In 2.5% to 3% range with 20 year term 3.Rural Community Assistance Corporation (RCAC) will provide project loans up to $100,000 a.In 5% range with 20 year term b.No refinancing of existing loans 4.Need to explore what Rural Development agency may be able to provide 2

For water project financing, WIFA is the lender of choice due to their AAA interest rates – Interesting that all the Master Plan submittals talked about how they could help the District obtain project financing from WIFA PSWID 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 WIFA – PSWID can gain that experience by selecting a small capital project and obtaining a loan from WIFA for it PSWID 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 District’s spending needs 3