RCAP Annual MeetingWashington, DC December

2010.

• Water and Waste Disposal (WWD) Direct Loans• WWD Guaranteed Loans• WWD Grants• Emergency Community Water Assistance Grants• Technical Assistance and Training Grants• Solid Waste Management Grants

Water and Environmental Programs

ARRA – NEXT 5 YEARS

• 5 year money

• Challenge to get projects built in 5 yrs

• Training for operators

• Rate studies & sustainable management

Challenges• Someone to trust

• Explain the federal application and environmental process

• Loan/Grant splits and fairness – Reality check

• Talk about Sustainable Systems

• Develop a realistic timeline

Players• Specialists• Area Director• Program Director• Owner• Engineering Firm• Contractor• State Engineer• TAT Providers !!!

Owner/RD Borrower

• What are the owner’s responsibilities?

– Basically, it’s their project and they drive the bus

– Need to be fully informed

– Ask Questions

– Expect accountability

Consulting Engineer• Act as owner’s representative• Adhere to terms of their contract

– can be all, or parts of, three pieces• planning• design• construction management

– deliverables– on time– within budget

Contractor

• Build it per plans and specs– On time– Within budget– Fix Warranty items

Celebrate!!

• Ground breaking ceremony

• Let community see progress

• Discuss the project and timeline

• Lots of pictures

Money is left, Now what?

• Any money left is usually grant funds

• Always go back to Scope of work

• Money left –now what?? – Big Red Truck?– Extra Paving

Plan an open house!

• Let community see what they just invested in the improvement to the community

• Invite Congressional political delegation

• They need to see where money is going

Management of System• Sustainability of system

• Discussion of what affects rates, plan on regular rate increases

Financial Analysis Tool

• Financial Ratios– Average Monthly Cost– Average Rate as % of MHI– Current Ratio– Debt Coverage Ratio– Debt Service per User– O&M Ratio

• Current Ratio - Current Assets divided by Current Liabilities - Percentage Form

• Debt Service Coverage Ratio - (Total Revenue + Depreciation - O&M)/Debt Service - Percentage Form