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New Mexico Finance Authority

New Mexico Finance Authority. Meeting the challenges of local infrastructure financing. Community Development Block Grant Workshop Las Cruces, NM - October 5, 2011. NMFA Mission Statement.

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New Mexico Finance Authority

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  1. New Mexico Finance Authority Meeting the challenges of local infrastructure financing Community Development Block Grant Workshop Las Cruces, NM - October 5, 2011

  2. NMFA Mission Statement We are dedicated to improving the lives of New Mexicans by planning and financing infrastructure, strengthening the economy through public/private partnerships and setting the standard for superior, diverse, innovative and solution-driven financing. 2009 Highlands University Student Union Building in Las Vegas $14,000,000

  3. A Little Bit About the NMFA… The NMFA is a governmental instrumentality established in 1992 and administers 16 Programs. • 1994 Public Project Revolving Fund • Primary Care Capital Fund • Stand Alone Bond Programs • 1997 Drinking Water State Revolving Fund • 1999 Water and Wastewater Grant Fund • 2001 Water Project Fund • Local Government Planning Fund • Child Care Revolving Loan Fund • More information available at nmfa.net • 2003 Statewide Economic Development Finance Act (Smart Money Loan Participation Program) • Behavioral Health Capital Fund • 2004 Governor Richardson’s Investment Partnership • Local Infrastructure Transportation Fund • 2005 Energy Efficiency & Renewable Bonding Act • 2007 Local Government Transportation Fund • 2007 New Markets Tax Credit Program • 2011 Las Colonias Infrastructure Fund

  4. NMFA Client Services • Who we are? • NMFA financial advisors and analysts travel statewide to assist communities with their financial needs. • What we do? • We are here to help New Mexicans by assisting in both planning for the future and in developing and improving community’s sustainability. • How we do it? • By meeting with communities to determine their needs. • We have partnerships with • 104 Municipalities • 33 Counties • 91 Special Districts • 72 Executive Agencies • The Authority has financed over 1,606 projects totaling over $2.418 billion.

  5. Highlighting NMFA Programs • Public Project Revolving Loan Fund (PPRF) • Local Government Planning Fund (Planning Grants) • Water Trust Board/Water Project Fund • Drinking Water Revolving Loan Fund • Energy Efficiency & Renewable Energy Bonds • Stand Alone Bonding • Innovative Bonding such as BABs, Recovery Zone, Qualified School Construction Bonds, etc. nmfa.net

  6. The Public Project Revolving FundOur “flagship” program • Reaching all of New Mexico with our largest and most diverse program. • Infrastructure • Buildings • Equipment • Refinancing • Requires Legislative Authorization for projects over $1 million • NMFA is the state benchmark for bond/loan issuance • Comparing our pricing to a private bank can give you negotiating leverage to lower your overall cost.

  7. PPRF Refundings • With current low interest rates and various structuring possibilities, Local Governments have taken advantage of refunding debt obligations through the PPRF to: • Capitalize on current interest rates to create economic savings. • Shorten the term of the debt outstanding. • Consolidate multiple debt obligations into one structure. • Refund for technical reasons, such as security and revenue realignment, better cash flow management, and/or for other long term financial strategies. *Refundings for economic savings must have a minimum 3% net present value savings

  8. Water Programs • Local Government Planning Fund (Planning Grants) • Need Based Program based on rates and median household income • Limited to PERs, feasibility studies and master plans (can be used for economic development) • Water Trust Board/Water Project Fund • Since its creation, the WTB has recommended more than $197 million of funding for 195 projects statewide • 16 Member Board empowered to assist the New Mexico Legislature in prioritization and funding statewide water projects • Makes loans/grants to qualified entities for projects annually • Drinking Water Revolving Loan Fund • Federal program with advantageous interest rates over 20 years • Two year construction period with interest only payments. • Can qualify for some loan forgiveness. More information available on nmfa.net.

  9. Water Trust Board Funding Cycle-2012 Tier I Review-60% Tier II Review

  10. NMFA Leverages Federal Dollars The NMFA has taken the lead to try to leverage every Federal and State dollar possible in order to serve all the communities in New Mexico Bringing all Federal programs to the table to try to work collectively to utilize multiple sources to fund projects. Putting communities in touch with all the available federal and state Planning Grants and helping the communities move forward on their projects.

  11. NMFA Leverages Federal Dollars • Many Federal programs have a match component. • Entities can use the NMFA to meet this match • Some Federal programs are on a reimbursement basis. • Entities can fund their project upfront then collect reimbursement at a future date

  12. NMFA Leverages Federal Dollars Example of Federal Leveraging Colonias Dollars for FY11 USDA – $10 million CDBG – $2 million BECC – $10 million Colonias Infrastructure fund – $13 million (est.)

  13. Free Money – Gone with the Wind • Capital Outlay – None last session, none in 2009 or 2010, unlikely in 2012 • CDBG – Still there, requires local match, capped at $500,000, competition is stiff and only low MHI qualify • EPA STAG – aka “earmarks”, a dying breed • Water Trust Board – Now requires loan and match components

  14. In the Future Project must Promote Sustainability • EPA and the State expect projects to promote sustainability • All applicants will be reviewed for minimum criteria to determine their level of compliance with applicable regulations and their capacity for sustainability

  15. What are the Sustainability Criteria? • Human Health & Safety • Compliance with regulations • Appropriate planning – ICIP, PER, EID • Asset Management & Rate Analysis • O&M plan and funding • Green Projects • Conservation, Reuse, and Accountability • Adequate Governance • Regionalization • Leveraging • Readiness to proceed – plans & specs

  16. How to findWater/Wastewater Money • Water Infrastructure Portal (WIP) – Gateway to the funding world • One Project Interest Form (PIF) to access a variety of funding sources via SWIM • http://www.nmenv.state.nm.us/(Click on the money)

  17. Sustainable Water Infrastructure Management (SWIM) Process

  18. Project Interest Form (PIF) Evaluation NMED-DWB Partners DFA OSE Others

  19. PIF Evaluation Outcomes After evaluating the proposed project information submitted by the community along with all other supporting compliance, capacity and long-term sustainability information generated the Community Services Group recommends: Infrastructure Funding System The community be informed that having met basic funding criteria there is the likelihood of possible funding for the proposed project from one or more funders. As a result, the proposed project will be logged into the Infrastructure Funding System (IFS) with a view to further consideration and review by funding agencies Sustainability Action System The community be informed that it does not appear at this stage to have met basic funding criteria and that the likelihood of funding for the proposed project at this time is not high. As a result, the proposed project will be logged into the Sustainability Action System (SAS) with a view to the Community Services Group developing an Action Checklist (AC) of steps that the community may consider taking to increase the likelihood of funding in the future.

  20. How to Get to the Head of Line? • Consider sustainability in project planning and Green components • Use SWIM to access public funding • Observe the funding evaluation criteria and plan for it • Enlist help of NMED-CPB Community Service Unit – Graham Knowles 505-222-9537 graham.knowles@state.nm.us

  21. NMFA is Here to Serve You NMFA offers services at reduced costs with more interest savings. NMFA is your partner in building a sustainable future. Here are some recent examples of great projects we have done across the state…

  22. Kewa Pueblo Safety Complex 2010 Where: Kewa Pueblo Project: Safety Complex Type of Project: PPRF Building Project Description: In 2003, Governor Chavez put together a twenty year plan to better Kewa Pueblo in many respects. Part of this plan was to build a safety complex to benefit all community members as well as visitors. The total Complex cost was $3.5MM. NMFA helped complete the project with a $1.1MM low-interest loan secured by pledge of their gasoline sharing agreement with the state. Community Benefit: Kewa had worked for years to find funds to complete the project. They received most of the funding from State Capital Outlay as well as the Tribal Infrastructure Fund. The NMFA is proud to have provided the final piece. The structure is available to state and county police. The Pueblo hopes to soon start its own Fire Department as well.

  23. Carlsbad Waterline Project 2010 Where: Carlsbad Type of Project: Water Trust Board/ Water Project Fund Project Description: This project incorporates the planning a design of the Double Eagle Waterline Improvements. The Water Trust Board awarded the City with a $1.5MM loan/grant combination to support planning and design. The City has also enacted its Capital Outlay GRT and will be contributing $12MM. The total project cost is estimated at $26,729,565. Pecos River Flume Community Benefit: This will be the main source of water over a vast region that will include; Carlsbad, Otis, happy Valley, La Huerta, Loving, Malaga as well as supply water to the local oil and gas industry, ranchers and the US Department of Energy WIPP site.

  24. Columbus Water Distribution Project 2009 Where: Columbus Type of Project: PPRF Water Infrastructure Project Description:A New water distribution project. This project was a PPRF loan for $175,000 that included the installation of water pipe, service connections, electronic read meters, and a new hydro-pneumatic pump station to increase volume and water pressure for fire flow. New Pump Station Community Benefit: The new system was very much needed and will help improve the health and safety of the nearby residential neighborhood as well as the new Columbus Elementary School by increasing flow for fire protection.

  25. Glorieta Regional Planning 2010 Community Benefit: Each community needs to address pressing issues. Glorieta Estates has a uranium issue, Glorieta East has old and outdated infrastructure, and Glorieta needs to find a new solution for its wastewater. The three communities have been meeting for over a year to help eachother find solutions to these and other problems. Over time, the communities plan on becoming one system and even inviting new neighbors to join. Where: Glorieta, Glorieta Estates, and East Glorieta Type of Project: Local Government Planning Fund Project Description: All three communities are pooling funds to create a regional preliminary engineering report that will address their individual issues as well as the feasibility of a regionalization effort. The PER will cost $50,000.

  26. Farmington Waterline Project 2009 Where: Farmington Type of Project: ARRA Drinking Water Loan Fund Project Description: The project consisted of upgrading water and sewer lines from the 1950’s population boom. The NMFA provided ARRA funds in the amount of $2,109,688. 50% of that amount was a subsidy from the ARRA Drinking Water Funds. The normal drinking water program did not include a subsidy, however it has been continued in 2012. Farmington Riverwalk Community Benefit: This project will help improve both the water quality and public safety in a one-year time frame and will save the community a lot of funding for future projects with the federal subsidy.

  27. ¡Believing in New Mexico! New Mexico Finance Authority 207 Shelby Street Santa Fe, NM 87501 (505) 984-1454 Toll Free 1-877 ASK NMFA Facsimile (505) 992-9635 www.nmfa.net

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