Skip this Video
Download Presentation
How to Use the Drinking Water State Revolving Fund SRF Overview Planning

Loading in 2 Seconds...

play fullscreen
1 / 9

How to Use the Drinking Water State Revolving Fund SRF Overview Planning - PowerPoint PPT Presentation

  • Uploaded on

How to Use the Drinking Water State Revolving Fund SRF Overview Planning Intended Use Plan Application Environmental Review Bidding and Construction Construction Financing Loan Disbursements. Go into Slide Show mode to view the slides and enable the links to other information.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'How to Use the Drinking Water State Revolving Fund SRF Overview Planning' - bart

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
How to Use the

Drinking Water

State Revolving Fund

SRF Overview


Intended Use Plan Application

Environmental Review

Bidding and Construction

Construction Financing

Loan Disbursements

Go into Slide Show mode to view the slides and enable the links to other information

srf overview
SRF Overview
  • The State Revolving Fund is one of Iowa’s primary sources of financing for water system upgrades and water quality projects. Loans are available for planning and design and construction.
  • The SRF is jointly administered by the Iowa Department of Natural Resources and the Iowa Finance Authority.
  • The Drinking Water SRF finances water system improvements and source water protection for eligible public water supplies. The Clean Water SRF finances publicly owned wastewater and sewer projects, as well as nonpoint source control practices.
  • All uses of SRF dollars are outlined in Intended Use Plans (IUPs), including specific projects identified for funding. Applications are taken year-round, with quarterly updates to the IUPs. Iowa’s SRF is currently able to fund all eligible projects.
  • For more information, contact Patti Cale-Finnegan, 515-725-0498; [email protected]
  • All drinking water construction projects must follow the Department of Natural Resources’ water supply construction permitting process. For more information contact Jennifer Bunton.
  • Planning and Design (P&D) loans are available to use for upfront engineering and other costs. Interest rate is 0% for up to three years. P&D loans can be rolled into SRF construction loans or paid off through other permanent financing.
  • The applicant/owner and consulting engineer prepare a preliminary engineering report (PER). A complete and approvable PER must be submitted before an SRF Intended Use Plan application will be considered.
  • Drinking Water SRF applicants must also complete a Viability Self-Assessment.
intended use plan application
Intended Use Plan Application
  • The IUP application is used to apply for inclusion on the project priority list of the Drinking Water SRF Intended Use Plan (IUP). IUPs are developed on an annual basis with quarterly updates.
  • The Drinking Water SRF senior engineer assigns the project to a DNR project manager, who evaluates the application for eligibility and scores it.
  • If the project is eligible, it is placed on the project priority list. If the applicant is not expected to finalize a loan agreement within the current fiscal year, the project may be listed as contingency.
  • Each quarter the IUP is published for public comment and presented to the Iowa Environmental Protection Commission for approval.
  • Projects must be on an approved IUP and meet other SRF requirements to be eligible for a loan.
environmental review
Environmental Review
  • Assessment of the potential impact on natural and cultural resources is required for all SRF water projects. An SRF environmental review (ER) specialist will work closely with you to perform the assessment.
  • When the preliminary engineering report is submitted, please attach the information requested in the Environmental Review Checklist (Exhibit 4). Keep the ER specialist apprised of any changes in the project to avoid delays.
  • The ER specialist will determine whether a Categorical Exclusion (CX) can be used or if a full review is needed to reach a Finding of No Significant Impact (FNSI).
  • If the FNSI path is required, the ER specialist will gather the needed clearances, advise the applicant on flood plain or other permits needed, prepare an Environmental Information Document (EID), and coordinate with the applicant to schedule a public hearing.
  • No construction shall begin before the CX or FNSI are completed, including any public notice or review periods.
bidding and construction
Bidding and Construction
  • SRF front-end specifications must be included in the plans and specifications submitted as part of the construction permit application. SRF recommends simply inserting the Exhibit 7A: SRF Required Front-End Specifications (available in PDF or Word format) for ease of review by the DNR project manager.
  • Currently SRF drinking water project requirements include Davis-Bacon prevailing wages. Contact Lori Beary.
  • Exhibit 7A includes several forms that must be filled out by the bidders and returned with the bids. Applicants should pay close attention to the Disadvantaged Business Enterprise requirements and forms.
  • When the applicant identifies the lowest responsive bidder, a packet of bid documents must be submitted to SRF staff for review of eligible costs and concurrence with the bid award. The packet materials are identified in Exhibit 9.
  • Award concurrence will not be issued until the environmental review is completed and the construction permit is issued.
construction financing
Construction Financing
  • At any time after the PER is approved, the applicant may begin the process for an SRF construction loan. The loan application must be submitted to the Iowa Finance Authority (IFA). This application is separate from the Intended Use Plan application and requests information on user rates, outstanding debt, and system financial data.
  • IFA either approves the loan application or contacts the applicant to work toward approval.
  • The applicant works with bond counsel to schedule and hold a public hearing and pass a bond resolution. IFA will provide a debt service schedule.
  • Typically the loan is not executed until after bidding is completed and final project costs are known.
  • Current interest rate is 3%, with a 0.5% origination fee and .25% annual servicing fee on outstanding principal. Pending approval, the interest rate for 20 year loans will be reduced to 1.75% on September 28, 2012.
loan disbursements
Loan Disbursements
  • Disbursements will continue to be made weekly; generally the funds will be disbursed on Friday. The deadline for submitting disbursement requests will be Monday to receive the funds on Friday of the same week.
  • The borrower will send the disbursement request to IFA. Disbursement requests can be scanned and emailed, faxed to 515-725-4901, or mailed.
  • IFA reviews disbursement requests. Disbursements are checked against eligible expenses. If there is a discrepancy or questions arise, IFA will contact the DNR project manager and the borrower.
  • Quarterly, the SRF Clerk-Specialist will ask the borrower about DBE subcontractors.
  • Change orders must be submitted to the DNR project manager who will verify acceptable expenses and notify IFA of the change.
For More Information on Iowa’s

State Revolving Fund

Click Here