1. What’s New with the STATE REVOLVING FUND?
Iowa Rural Water Association Annual Conference
February 18-20, 2013
Patti Cale-Finnegan
Department of Natural Resources

2. SRF Background
The SRF is one of Iowa’s primary sources of financing for drinking water and wastewater infrastructure, storm water quality, and nonpoint source protection

3. SRF Background
SRF programs authorized by Clean Water Act and Safe Drinking Water Act and administered by U.S. Environmental Protection Agency

5. Iowa Department of Natural Resources
SRF Background
Iowa Department of Natural Resources
Program planning and prioritization
Project planning and permitting
Environmental review
Federal compliance
Iowa Finance Authority
Financial management
Bond issues
Loan processing
Loan disbursements

6. LOW-INTEREST LOANS FOR Water and wastewater infrastructure only
LOW-INTEREST LOANS FOR
Water and wastewater infrastructure only

7. 2003 - Present Water and Wastewater Onsite Septic Systems
Planning and Design
Lake and Wetland Restoration
Soil, Sediment, and Nutrient Management
Brownfield Cleanup
Source Water Protection
Energy and Water Efficiency
Sponsored Projects
Urban Stormwater
Landfill Closure

8. Drinking Water SRF Loans for:
Improvements to public water supply systems
Consolidations and connections
Source water protection
DWSRF set-asides fund technical assistance, capacity development, state drinking water program, SWP

9. Clean Water SRF Loans for:
Publicly owned wastewater treatment facilities
Sewer system rehabilitation
New systems for unsewered communities
Stormwater management for water quality
Nonpoint source pollution control

10. Types of Loans Planning & design Construction Source water protection
Stormwater BMPs
Watershed protection

11. SRF Has Loaned Over $2 Billion

12. What’s New: Interest Rates
Interest rate for loans up to 20 years reduced to 1.75%.
Interest rate for extended terms (between 20 and 30 years) varies.

13. What’s New: Fees Origination fee reduced from 1% to 0.5%
Servicing fee 0.25%. Only charged on outstanding balance. Billed twice/year with interest.

14. What’s New: Disadvantaged Rate and Term -- DWSRF
Term up to 30 years based on useful life.
DWSRF – must be disadvantaged based on CDBG criteria.
DWSRF– disadvantaged interest rate is 1.75%.
DWSRF – no “non-disadvantaged” interest rate.

15. What’s New: Extended Term --CWSRF
Term up to 30 years based on useful life.
CWSRF– available to all projects
CWSRF– disadvantaged interest rate is 1.75%.
CWSRF –“non-disadvantaged” interest rate is 2.75%.

16. What’s New: Disadvantaged Criteria -- CWSRF
Communities must be determined to be disadvantaged based on criteria in Iowa Code section 455B.199B, Disadvantaged Communities Variance, as amended by Senate File 407 on April 28, 2011.
DNR adopted rules to implement the statute.
SRF will use these rules to establish disadvantaged status for purposes of allowing reduced interest rate of 1.75%.

17. What’s New: Sponsored Projects -- CWSRF
Water Resource Restoration “sponsored projects”
Nonpoint source project (e.g. green infrastructure, watershed protection) paired with wastewater loan
City borrows more, repays same amount, gets two projects for the cost of one

18. What’s New: Sponsored Project Applications
Application packet on-line at
Required application workshops: Feb. 26 (Des Moines), Feb. 28 (Coralville), March 13 (Cherokee)
Application deadline: July 19, 2013

19. How the SRF Helps
“This was our first experience with the SRF.  We appreciated all the assistance we received for our many questions!”
Lyon-Sioux Rural Water

20. How the SRF Helps
“The SRF allowed the City of Stacyville to make the necessary improvements to our infrastructure when it was needed. ”   Harlan Bisbee City Clerk, Stacyville

21. How the SRF Helps
“The SRF provided the lowest rates available for the City of Shenandoah to finance improvements to the Waste Water Treatment Facility. ”   Marcia McKay, City Clerk/Treasurer Shenandoah

22. How the SRF Helps
“The City of Ankeny really appreciated being able to use SRF funding for our brownfield cleanup project, as well as the guidance provided by the DNR and IFA staff.”
Jolee Belzung Director of Municipal Utilities, Ankeny

23. How the SRF Helps
“The low-interest loan made a huge difference in my livestock water quality project. The people I worked with were helpful and the paperwork was simple. ”
Justin Rozeboom Sioux County

24. ? Questions THANK YOU! Patti Cale-Finnegan
Iowa Department of Natural Resources
Lori Beary
Iowa Finance Authority
THANK YOU!