Iowa Department of Natural Resources

Iowa Finance Authority

PUBLIC MEETING AGENDA

 

NOTICE TO PARTIES INTERESTED IN LOW INTEREST LOANS FOR

WATER SUPPLY INFRASTRUCTURE PROJECTS AND

WATER POLLUTION CONTROL AND ABATEMENT PROJECTS

 

 

NOTICE OF PUBLIC HEARING

Updates to the FY 2007 Intended Use Plans

for the administration of the Drinking Water State Revolving Fund

and the Clean Water State Revolving Fund

 

 

The Iowa Department of Natural Resources and the Iowa Finance Authority will hold a public meeting on April 4, 2007, 9:30 a.m., at the DNR Water Supply office, 401 SW 7th Street, Suite M, Des Moines, IA  50309. Comments will be invited on a revision to the CWSRF and DWSRF Intended Use Plans to allow temporary investment of CWSRF monies in the DWSRF.  Updates will be presented to the Environmental Protection Commission in May 2007.

 

Oral comments may be presented at the meetings. Requests for copies of the IUP updates and written comments may be directed to Patti Cale-Finnegan, State Revolving Fund Coordinator, Water Quality Bureau, Iowa Department of Natural Resources, 401 SW 7th Street, Des Moines, IA  50309 (Telephone 515/725-0498 or FAX 515/725-0348) or at [log in to unmask]<mailto:[log in to unmask]>

 

 

Iowa Department of Natural Resources

Environmental Protection Commission

 

 

      ITEM
      
                                                                                     DECISION
     

 

      TOPIC
     Clean Water and Drinking Water State Revolving Loan Funds - 2007 Intended Use Plan Updates to Allow Cross-Program Investment

       
     

 

 

Approval will be sought from the Environmental Protection Commission of changes to the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF Intended Use Plans <>to allow cross-program investment.  A proposal has been sent to the U.S. Environmental Protection Agency.  The primary purpose is to allow use of uncommitted CWSRF monies to delay implementation of a bond issue in the DWSRF program until it is more economically beneficial.  The Iowa Finance Authority estimates that the estimated savings in cost of issuance and interest expense of doing one large issue in the fall of 2008 instead of two smaller bond issues is approximately $300,000.

 

The language below is proposed as additions to the CWSRF and DWSRF Intended Use Plans:

 

With EPA approval, IFA proposes to temporarily invest CWSRF monies in the DWSRF in May or June 2007.  The investment would be short-term in nature.  The investment plus interest would be repaid within two years.  Both the CWSRF and the DWSRF charge 3% interest on their loans.  The investment from the CWSRF will earn the same rate as it would have earned had it been used for wastewater loans.  An investment contract formally detailing the terms between the two programs will be developed and executed.

 

Currently, the CWSRF has a balance of past loan repayments that are not pledged to any outstanding bond issues.  By using these funds to invest, there are no concerns with any outstanding bond documents. The maximum amount of investment from the CWSRF to the DWSRF will be $25 million.  This investment will provide a temporary source of capital to fund DWSRF loans until a bond issue can be completed in FY 2008.   

 

 

Patti Cale-Finnegan

Water Quality Bureau

 

 

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