The Basics on Capital Project

Financing

Presented by: Mark BrewerNovember 2012

Introduction

Do More…With Less

Finance Mission

Successfully complete all projectsat the lowest possible cost of

delivery

Department Mission

Successfully complete all projectsand let finance figure out how to pay for

them

Prescription

Evaluate CIP Process Follow the Strategy Identify Specific Funding Options Secure the Funding Manage Funding Requirements Audit/Closeout the Project

Evaluate CIP Process

Expand Project Descriptions– Project names are insufficient– Detailed project elements are required

Question Priorities/Timelines– Every project cannot be the top priority– What if there were no funds?

Segregate by Categories– Water, Wastewater, Stormwater, Parks &

Rec., Police, Fire, Solid Waste, etc.

Follow the Strategy

GRANTS

Identify Specific Funding Options

Match project type with funding source – List potential source in CIP

Gather funding source information– Get rules, forms, applications

Know the flow– Identify funding cycle– Outline the steps

Identify Specific Funding Options

Water: Drinking Water State Revolving Fund (SRF) Loan Program, FRWA Interim Financing Program, EPA Special Water Grants Program, State Bond Loan Program, Water Management District Cooperative Funding Initiative, Economic Development Administration (EDA) Grant Programs, Community Development Block Grant (CDBG)

Wastewater: State Revolving Fund (SRF) Loan Program for Water Pollution Control, FRWA Interim Financing Program, Small Disadvantaged Communities Grant Program, EPA Special Water Grants Program, Water Quality Improvement and Water Restoration Grant Program (Special Appropriations under Florida Statute 403.855), State Bond Loan Program, Water Management District Cooperative Funding Initiative, Economic Development Administration (EDA) Grant Programs, Community Development Block Grant (CDBG)

Identify Specific Funding Options

Stormwater: State Revolving Fund (SRF) Loan Program for Water Pollution Control, Flood Mitigation Assistance Grant Program, Hazard Mitigation Grant Program, Non-point Source Funding (Section 319(h)), Pre-Disaster Mitigation Program Competitive Grant, Water Management District Cooperative Funding Initiative, Economic Development Administration (EDA) Grant Programs, Community Development Block Grant (CDBG)

Transportation: Economic Development Transportation Fund - Road-Fund Incentive program, Office of Tourism, Trade and Economic Development (OTTED), Transportation Enhancements Program, FDOT Local Agency Program, FDOT Local Technical Assistance Program, Economic Development Administration (EDA) Grant Programs, Community Development Block Grant (CDBG)

Know the FlowPreconstruction

RFIPreconstructionLoan Application

PreconstructionLoan Agreement

PreconstructionLoan Administration

Facilities Plan/Capital Financing

Plan

Design/Biddable Plans and Specs

Site Certification Permit

RFI UpdateConstruction

Loan ApplicationConstruction

Loan AgreementBidding

Construction/Project Management

Closeout Final Amendment Project Audit

Secure the Funding

Prepare application Schedule local approvals early Submit on-time Follow-up, Follow-up, Follow-up

Manage the Funding

Establish file system Follow the rules, regulations &

procedures Pay special attention to

procurement Meet all reporting requirements Records retention focus

Audit/Closeout

Submit Annual Audits to Agency Agency Closeout Site Visit Conduct Project Specific Audit Maintain Records