Appendix E

Funding Strategies

E.1 Funding Sources

The following link provides information for each state's small systems community contact:

The following table provides a list of entities that offer funding to water and wastewater utilities in Kansas. Many of these are national organizations that also offer funding in other states.

Organization or Agency USDA Rural Development KS Dept. of Health & Environment KS Dept. of Health & Environment KS Dept. of Commerce Bonds or Leases
Program Title Water & Wastewater Grant & Loan Program (also guaranteed loan program) KS Public Water Supply Loan Fund Water Pollution Control Revolving Fund Community Development Block Grant General obligation; revenue bonds
Eligible Applicants Cities, RWDs, population less than 10,000 Cities, RWDs Publically owned wastewater treatment works Municipalities, RWDs. Apply through county Cities, RWDs, others
Type of Funding Loans, grants and loan guarantees Loans Loans Grants Similar to a loan
Eligible Projects Drinking water, sewer, solid waste & storm Water Wastewater Water, wastewater, other Water, wastewater, other
Approximate Annual Funding $15 million - direct loans & grants, $2.5 million - guaranteed loans $35+ million annually $30 million annually Approximately $9 million annually Unlimited
Maximum Funding 100% of project costs 100% of project costs 100% of project costs $400,000/project, $2000/beneficiary 100% of project costs
Application Cycle Throughout year Submit expression of interest by July 1 Throughout year Submit by Oct. 15, Award Jan. 15 No restriction
Estimated Time to Prepare Application 6 months if engineer and applicant work diligently Typically, 120 days for the application & review process. Funding approval immediately. Typically, 120 days for the application & review process. After engineering report approval, immediate funding. Must appear before Kansas Inter-Agency Coordinating Committee (KIAC). Development & Environmental Review typically require 6 months 45 days minimum, no environmental review required when commercial credit is utilized
Major Application Criteria For rural areas and communities less than 10,000; program should not compete with commercial credit Compliance with drinking water regulations; consolidation Compliance with NPDES & KWPC permits, resolve water quality impairments, regionalization Meet Low-to-Moderate Income Goal requirement Debt authority, direct debt ratios, ability to meet debt service, coverage ratios
Contact Information Gary Smith
(785) 271-2728
William Carr
Rod Geisler
(785) 296-5527
Jeanne Stinson
(785) 296-2725
Financial advisor or other financial institution
Comments For direct loans term is typically 40 years.. For guaranteed loans the interest rate and terms are set by the lender; generally not more than 20 years Loans are 20 years with no penalty for early payment Application includes environmental review and planning coordination. Maximum repayment period 20 years. Interest rate is approximately 60% of market rate Highly competitive application process Ensure competitive pricing through bidding of financing; bond reserve of 10% typically included in the financing