Texas Water Development Board

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Texas Water Development Board

• Financing Programs Highlights
• Office of Project Finance Construction
  Assistance
• May 3, 2006

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Financial Assistance Programs

• The TWDB offers several state and federal loan
  and grant programs for the planning, design, and
  construction of new water and wastewater
  infrastructure projects and for making
  improvements to existing water and wastewater
  facilities. The following slides highlight some
  of these programs.

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Who Qualifies for TWDB Funds?
1. Political Subdivisions 2. Non-profit water
supply corporations (except CWSRF) 3.
Investor-owned public drinking water systems
(DWSRF only)
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State Funded

• Financial Assistance Programs

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Development Fund I II Water Financial
Assistance Account

• Planning, design, and construction for water,
  wastewater, and flood control projects.
• Eligible applicants - political subdivisions and
  non-profit water supply corporations.
• Interest rates 0.35 above TWDB cost of funds
  (current interest rates can be found at
  www.twdb.state.tx.us)
• Repayment terms range up to 25 years.
• Project selection on a first-come, first serve
  basis.

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Development Fund I II State Participation
Account

• State purchase interest not to exceed 80 of new
  water projects and not to exceed 50 in all other
  water and wastewater projects.
• Enables regional entities to build optimum-sized
  projects where existing population cannot support
  full debt.
• Interest rates 0.35 above TWDB cost of funds.
  Maximum loan term of 34 years.

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Development Fund I II State Participation
Account

• Interest deferred over 9 years.
• Priority system used to select projects
  (Semi-annual cycle).
• Administrative cost recovery fee of 0.77.
• General Obligation bond authorization needed for
  future funding.

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Water Assistance Fund

• Water Loan Assistance for water and wastewater
  treatment and flood control.
• Research and Planning grants for water research,
  flood protection planning, water supply and
  wastewater planning.
• Colonia Self-Help grant assistance for projects
  that provide necessary water and wastewater
  service to a colonia in which the people who will
  benefit from the project actively participate.

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Rural Water Assistance Fund

• Created by the 77th Legislature, Senate Bill 2.
• Eligible borrowers are defined as Rural Political
  Subdivisions with a population up to 10,000.
• Low interest loans and up to 40-year maturity on
  water and wastewater projects.
• Non-profit water supply corporations are exempt
  from sales tax that is incurred for any project
  financed through the fund.

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Federally Funded

• Financial Assistance Programs

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Drinking Water State Revolving Fund (DWSRF)

• Program capacity - est. 65 million per year.
• For Projects to bring water systems in compliance
  with Drinking Water regulations and standards.
• Eligible applicants - Community water systems,
  including private systems, and non-profit
  non-community (NPNC) systems.

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Drinking Water State Revolving Fund (Cont.)

• Priority system used to select projects.
• Mainstream DWSRF Interest Rate 1.5 below market
  rate.
• Disadvantaged Communities funding provides 0
  and 1 loans and 15 - 35 loan forgiveness
  offered eligible systems.
• Loan origination fee of 2.25.

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Clean Water State Revolving Fund (CWSRF)

• Planning, design, and construction of wastewater
  projects and non-point source pollution control
  projects.
• Eligible applicants - political subdivisions.
• Program capacity over 484 million for FY 2006.

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Clean Water State Revolving Fund (Continued)

• Disadvantaged Communities Funding interest rate
  -- 0 or 1
• Federal Tier III Funding interest rate -- 1.95
  below market.
• State Tier II Funding interest rate -- .95
  below market.
• Loan origination charge of 1.85.

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Pre-Design Funding Option

• Planning environmental studies funded at
  closing.
• Interest rates locked in at closing.
• Water wastewater projects (Except State
  Participation).
• Funds for final design, plans specs, and
  construction placed in escrow

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For More Information Regarding TWDB Financing
Programs

• TWDB Website
• www.twdb.state.tx.us
• Office of Project Finance and Construction
  Assistance
• [phone]