Pine-Strawberry Water Improvement District

1. Pine-Strawberry Water Improvement District Capital Project Public Financing Board Member Presentation Sam Schwalm September 12, 2013

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

3. Pine-Strawberry Water Improvement District • 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