1. Loan Programs

2.  What is the PFA?  How does PFA financing work?  What is the Capital Financing Program?  What is the State Revolving Fund Program?

3. The North Dakota Municipal Bond Bank was established on July 1, 1975. for the purpose of making loans to ND political subdivisions through the purchase of municipal securities (bonds). August 1, 2005, the agency’s name was changed to the North Dakota Public Finance Authority (“PFA”). The PFA is under the authority of the Industrial Commission. They appoint a three member Advisory Committee.

4. Municipal Bond Market PFA Issues Bonds and Receives the Proceeds PFA Repays the Bonds with the Payments from the Political Subdivision Political Subdivision PFA Lends the Bond Proceeds to the Political Subdivision Political Subdivision Repays with Revenues, Property Taxes or Special Assessments PFA

6.  Eligibility  Borrowers  Projects Financed  Loan Terms  Why Use the CFP?

7. Financing is available for projects or improvements for which local political subdivisions are legally authorized to borrow money. Must show ability to repay. Utilizing the CFP must provide the borrower an economic benefit.

8. Political Subdivisions: ◦ Cities ◦ Public School Districts ◦ Counties ◦ Townships ◦ Park Districts ◦ Water Districts ◦ Water Resource Districts ◦ Recreation Service Districts ◦ Airport Authorities

9. ◦ Water ◦ Sewer ◦ Roads, curb & gutter ◦ Sidewalks & street lights ◦ Public facilities ◦ Airport improvements ◦ Schools ◦ Public housing ◦ Nursing home ◦ Construction and cash flow financing ◦ Refinancing USDA Rural Development loans, commercial loans and other bonds

10.  Market Rate Interest  Collateral ◦ Revenues ◦ Federal and/or State Reimbursements ◦ Tax Receipts

11.  A+ Rating  Coverage Requirements  PFA files annual Continuing Disclosure documents

13.  SRF Background  Eligibility  About the SRF Program  Projects Financed  Why Use the SRF Program?

14.  Established in 1990 to enable ND to receive federal capitalization grants under the Clean Water Act ◦ Amended in 1998 to include the Safe Drinking Water Act  Jointly administered by the ND Department of Health and the Public Finance Authority  Interest rates are set by Department of Health in consultation with PFA ◦ Currently, 2.0% Interest and 0.5% Administrative Fee ◦ 1-1-17, 1.5% Interest and 0.5% Administrative Fee  Assigned a rating of “Aaa” by Moody’s Investors Service, Inc. and “AAA” by Standard & Poors

15.  Loans available under two programs ◦ Drinking Water SRF (water) ◦ Clean Water SRF (sewer)  Must be on the Health Department’s Intended Use Plan

16.  Below – Market Interest Rate  Must show ability to repay ◦ Revenues ◦ Federal and/or State Reimbursements ◦ Tax Receipts – Property Taxes or Special Assessments

17.  Clean Water SRF (sewer) ◦ Wastewater treatment plants, replacing aging infrastructure, sewer rehabilitation, storm water control, sludge management, toxins management  Drinking Water SRF (water) ◦ Rehabilitate or develop drinking water sources, replacing aging infrastructure, installing or upgrading water treatment, storage or transmission  Cannot be used for expansion, but portions of an expansion project may be eligible

18.  Eliminates negative carry; only borrow as money is needed to pay project costs  Borrowing and repayment flexibility ◦ Only pay interest on money drawn ◦ No penalty for not borrowing the full loan amount ◦ No penalty for early payment from excess revenues  Only cost of issuance is bond counsel  PFA files annual Continuing Disclosure documents

19. DeAnn Ament, Executive Director ND Public Finance Authority PO Box 5509 1200 Memorial Highway Bismarck, ND 58506-3509 701.328-7100 or 1-800-526-3509 Fax 701.328-7130 ndpfa@nd.gov www.nd.gov/pfa