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Published byNatalie Cliffe Modified over 9 years ago
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Financing Infrastructure 2014 Governor’s Conference on Economic Development Tan Tar A Resort / Sept. 5, 2014
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Types of Projects Funding opportunities Project timelines Strategy Agenda
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Deborah Rush, Thompson Coburn LLP Partner Specializes in Public Finance Law Jason Dohrmann, HR Green Engineer, Private consulting firm Specialize in municipal clientele Who we are…
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Non-Revenue producing Roads / Bridges Drainage Public buildings Revenue-producing Utilities (water, sewer, gas) Can go both ways Stormwater Types of Projects
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Federal BRO/BRM, STP, CMAQ, TAP, B/TEAP http://epg.modot.org CDBG State CDBG, SRF Local Enterprise Funds Bonds Special Taxing Districts TIF, TDD, CID, NID Types of Funding
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Earmarks eliminated Typically require min. match of 20% Cash / Donation / Soft match Reimbursement Program Eligibility Requirements Eligibility Requirements MoDOT EPG Section 136.3.8 Leveraging other funding Road Boards / Special Road Districts Competitive process Coordinate with Planning Organization Federal Funding
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Community Development Block Grant (CDBG) United States Department of Housing and Urban Development (HUD) Purpose is three-fold: Ensure decent, affordable housing Provide services to most vulnerable Create jobs through economic assistance Federal programs: Entitlement and non-Entitlement Metro cities >50K population or Qualified urban counties >200K Federal / State Funding
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CDBG (cont’d) State administers grants to non- entitlement cities or counties Start with MO Dept. Economic Development Typically not large grants on State level Leverage with other funding sources Federal / State Funding
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State Revolving Funds (SRF) Administered by State authority and DNR Low interest loan for water and sewer projects DNR selects qualified projects based on community’s application DNR makes direct loan to community Communities not required to provide local match State Funding
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Enterprise Funds Bonds Special Taxing Districts Local Funding
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Enterprise Funds Raise or borrow money to fund water, sewer, electric Revenues must be accounted for separately from general operating fund
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“Indebtedness” that may be incurred after voter approval Secured by municipality’s obligation to levy unlimited ad valorem property taxes Constitutional limitations on amount of general obligation debt Bond proceeds may be used for any purpose authorized by charter or state law Bonds may be sold to public or banks will purchase bonds for their portfolio General Obligation Bonds
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Generally, some kind of statutory authority required to issue revenue bonds Used to finance facilities with user or revenue base (i.e., water, sewer, capital improvement sales tax) Generally require majority voter approval Revenue Bonds
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Method for municipalities to work the private sector to fund and construct certain infrastructure Often utilizes some form of special taxing district Community Improvement District Transportation Development District Neighborhood Improvement District Tax Increment Financing Special Taxing Districts
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When To develop the strategy To engage experts (consultants) How To develop the strategy To navigate the approval process Why Do you need help Should you bother with funding assistance Strategy / Timeline
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Thank You! Questions
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