02-A WTP Improvement Grant - Laserfiche WebLink

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commitment based on preliminary engineering, environmental, economic and social information. Because the DWSRF program is a reimbursement program due to U.S. Environmental Protection agency requirements, DWSRF loans are closed in installments. The interest rate is locked in at the first installment loan closing. Approved applications typically receive a two-year commitment. The applicant's ability to repay the loan is the major determining factor in the approval for using the pre-design funding option. If the pre-design funding option is not used, the applicant must develop plans and specifications and have them approved, obtain all necessary permits, and open bids prior to closing the first installment of the loan. FUNDING AND MONITORING: Prior to loan closing, the applicant submits a final bond ordinance or resolution to the TWDB for review and approval. The applicant's bond counsel arranges for the approval of the debt by the Attorney General's office and the financial adviser schedules a closing date for the exchange of debt for loan money. The applicant and TWDB staff monitor the project during the construction process. Loans are monitored by TWDB staff for the life of the outstanding debt to ensure compliance with the bond indenture requirements and the maintenance of a sound financial condition. ARE THERE ANY SPECIAL CONSIDERATIONS? Applicants for loans greater than $500,000 must adopt a water conservation and drought contingency plan (a statutory requirement). A National Environmental Policy Act type environmental review is required by the SDWA. TWDB staff is available to assist applicants in determining the scope of investigation required, preparing reports, and coordinating with environmental regulatory agencies. TWDB archeologists may also assist applicants by conducting necessary archeological surveys, when appropriate, and securing regulatory agency approval. WHAT ARE THE SPECIAL TERMS OF FINANCIAL ASSISTANCE? Security Instrument: Political Subdivisions will need to issue Bonds. Private and Nonprofit organizations may issue contract. Pledge: System revenues and/or tax pledges are typically required. Contract revenue pledges for river authorities and others are possible. Length of Loans: The maximum repayment period for a DWSRF loan is 20 years from the completion of construction. Bonds may not be pre-paid (called) for approximately 10 years (10 year call provisions). Interest Rates: The DWSRF program can provide funds that are either from State sources or funds directly made available by Federal capitalization grants. The Federal Capitalization Grant funds result in an overall lower interest rate but requires additional