1. Grant Funding for Municipal Projects
Ted Haeder
First District Association of Local Governments

2. Who am I?
Ted Haeder

3. Economic Development Officer Grant Writer Other Duties As Assigned
What Do I Do?
Economic Development Officer
Grant Writer
Other Duties As Assigned

4. Where Do I Work?
First District Association of Local Governments in Watertown
One of Six Planning Districts

6. When Did I Start?
15 Years Ago
May of 2002

7. Why?
I Enjoy Doing What I do

8. How Can Grants Be Used To Fund Municipal Projects?
Planning
Construction

9. Above Ground Ground Level Under Ground
3 Areas
Above Ground
Ground Level
Under Ground

10. Sewer Water Storm Water Rubble Site/Dump
Under Ground
Sewer
Water
Storm Water
Rubble Site/Dump

11. Planning Grants For Under Ground Projects
Small Community Planning Grant
Water Development District Grants

12. Small Community Planning Grant
SD Department of Environment and Natural Resources (DENR)
Communities <2,500
$8,000 for Water
$10,000 for Sewer
Up To 80% - Engineering Study

13. Water Development District Grants
Source of Matching Funds
for the
Small Community Planning Grant

15. Construction Grants For Under Ground Projects
SD Department of Environment and Natural Resources (DENR)
USDA Rural Development
Community Development Block Grant

16. DENR and Rural Development
Submit Funding Application
Grant/Loan Awards
Broken Out By Percentage
Grant% + Loan% = Total
Minimum Rates Required

17. Community Development Block Grant (CDBG)
Grant Only!
Up To 50%
Up To $500,000
Low/Moderate Income Requirements May Apply

18. Project Surcharges and Constitutional Debt Limits
If Constitutional Debt Limits Are An Issue Consider Using Project Surcharge Fees
Project Surcharge Fees Only Repay Debt

19. What are Revenue Bonds?
Revenue Bonds are bonds that are payable from a
specific revenue source

20. What types of revenues are used to pay Bonds?
There are two types of revenues:
Revenues from the operation of system
(system revenues) or
Revenues from of the improvement
(project revenues).

21. Important Distinction
System debt is constitutional debt
(Counts in the city’s 5% or 10% debt limit)
Project debt does not count as constitutional debt.

22. What part of the revenues can the City pledge?
Only net revenues may be pledged for payment.

23. What are net revenues? The net revenues equal
Gross income (all income)
- Cost of operation;
- Costs of maintenance;
- Cost of repairs;
- Cost of replacements; and
- Debt service costs of general obligation bonds issued to pay for the original system.
_________________________
Net Revenues

24. What do we need to know in setting rates?
Rates must be equitable for all services and benefits furnished by the system or project;
Rates, charges, or rentals shall be sufficient to produce net revenues adequate to pay the principal of and interest on the bonds when due and fund and maintain reasonable reserves therefore, if required.

25. When can we use a surcharge or special charge?
The municipality may establish a special charge or surcharge for the services of the facilities financed by the revenue bond

26. How do we calculate the surcharge or special charge?
Annual debt service $10,000
Coverage Requirement (110%) $ 1,000
Debt Service Reserve (RD) $ 1,000
( 10% of an annual payment for 10 Years) ____________
TOTAL $ 12,000
Total Users
Annual Charge per User $12,000/500= $24.00
Monthly/12 Surcharge or Special Charge =$2.00

27. What do we do with the surcharge or special charge?
Segregated on the city’s books from other revenue or income.

28. Why is segregation important?
If the bonds are made payable solely from such segregated revenue or income, or
if the bonds are part of SRF program,
then no election is required to authorize the issuance of the bonds, unless required by S.D. Const., Art. XIII, § 4.
….Thank you Todd Meierhenry for sharing this info….
Why is segregation important?

29. Construction Grants Ground Level Projects
Trails
Roads and Streets

30. SD Department of Transportation SD Department of Game, Fish & Parks
Pedestrian and Non-Motorized Travel
Safe Routes To Schools
Recreational Trails
Grants Up To 80% Of Project Costs

31. SD Department of Transportation
Community Access Grant
<5,000 Population, Main Street, Elevator, School, Hospital, Etc…
Agri-Business Grant
Industrial Park Grant
60% of Construction – up to $400,000

32. Construction Grants Above Ground Projects
Fire Halls
Community Centers
Boys & Girls Clubs
Tornado Safe Rooms
Recreational Projects
Floodplain Buyouts

33. CDBG – 50% up to $500,000 HMGP – 75% LWCF – 50% - $10,000-$75,000
Community Development Block Grant Hazard Mitigation Grant Program Land and Water Conservation Fund
CDBG – 50% up to $500,000
HMGP – 75%
LWCF – 50% - $10,000-$75,000

34. Boys&Girls Club of Brookings

35. Boys&Girls Club of Flandreau

36. DeSmet Event & Wellness Center

37. Lake Norden Community Center

38. Head Start - Madison

39. Tornado Safe Room - Flandreau

40. Revillo Fire Hall/Community Hall

41. Streets and Trails Grants
Recreational Trail – Madison
Industrial Park – Arlington and Highmore

43. Water and Sewer Projects
Canova
Colman
Big Sioux CWS
Sioux RWS
Sewer
Astoria
Aurora
Lake Poinsett
Lake Norden
Sinai

44. Mission
Swimming pool renovations

45. White Lake ADA renovations Security Cameras Water Tower Improvements
Street Repairs
New Mower/Loader
Sidewalks To School
Sewer and Water – New Development

46. Groton Water Tower Pool Slide Sewer Lining/Water Main Replacement
Power Line Burial
Street Construction
Electrical Substation
Storm Sewer Extension
Water Tower Controls
Fence Around Soccer Fields

47. Britton
Event Center
$2,000,000 Received - Donations

48. Other Projects?
Sewer/Water
Buildings
Recreation
Utilities
Roads
Other

49. Anything Else?

50. The end.

51. SD Planning Districts – Contact Info
First District Association of Local Governments
PO Box 1207
Watertown, SD
(605)
FAX
South Eastern Council of Governments
500 North Western Avenue
Suite 100
Sioux Falls, SD
(605)
FAX
Planning and Development District III
PO Box 687
Yankton, SD
(605)
FAX
Northeast Council of Governments
PO Box 1985
Aberdeen, SD
(605)
FAX
Central South Dakota Enhancement District
PO Box 220
Pierre, SD
(605)
FAX
Black Hills Council of Local Governments
730 E Watertown St Ste. 102
Rapid City, SD
(605)
FAX