Financing Infrastructure2014 Governor’s Conference on Economic DevelopmentTan Tar A Resort / Sept. 5, 2014

Types of Projects Funding opportunities Project timelines Strategy

Agenda

Deborah Rush, Thompson Coburn LLP

Partner Specializes in Public Finance Law

Jason Dohrmann, HR Green

Engineer, Private consulting firm Specialize in municipal clientele

Who we are…

Non-Revenue producing Roads / Bridges Drainage Public buildings

Revenue-producing Utilities (water, sewer, gas)

Can go both ways Stormwater

Types of Projects

Federal BRO/BRM, STP, CMAQ, TAP, B/TEAP

http://epg.modot.org

CDBG State

CDBG, SRF Local

Enterprise Funds Bonds Special Taxing Districts

TIF, TDD, CID, NID

Types of Funding

Earmarks eliminated Typically require min. match of 20%

Cash / Donation / Soft match

Reimbursement Program Eligibility Requirements

MoDOT EPG Section 136.3.8

Leveraging other funding Road Boards / Special Road Districts

Competitive process Coordinate with Planning Organization

Federal Funding

Community Development Block Grant (CDBG) United States Department of Housing and Urban

Development (HUD) Purpose is three-fold:

Ensure decent, affordable housing Provide services to most vulnerable Create jobs through economic assistance

Federal programs: Entitlement and non-Entitlement Metro cities >50K population or Qualified urban counties

>200K

Federal / State Funding

CDBG (cont’d)

State administers grants to non-entitlement cities or counties

Start with MO Dept. Economic Development

Typically not large grants on State level

Leverage with other funding sources

Federal / State Funding

State Revolving Funds (SRF) Administered by State authority and DNR Low interest loan for water and sewer projects DNR selects qualified projects based on

community’s application DNR makes direct loan to community Communities not required to provide local

match

State Funding

Enterprise Funds Bonds Special Taxing Districts

Local Funding

Enterprise Funds Raise or borrow money to fund water,

sewer, electric Revenues must be accounted for

separately from general operating fund

“Indebtedness” that may be incurred after voter approval

Secured by municipality’s obligation to levy unlimited ad valorem property taxes

Constitutional limitations on amount of general obligation debt

Bond proceeds may be used for any purpose authorized by charter or state law

Bonds may be sold to public or banks will purchase bonds for their portfolio

General Obligation Bonds

Generally, some kind of statutory authority required to issue revenue bonds

Used to finance facilities with user or revenue base (i.e., water, sewer, capital improvement sales tax)

Generally require majority voter approval

Revenue Bonds

Method for municipalities to work the private sector to fund and construct certain infrastructure

Often utilizes some form of special taxing district• Community Improvement District• Transportation Development District• Neighborhood Improvement District

Tax Increment Financing

Special Taxing Districts

When To develop the strategy To engage experts (consultants)

How To develop the strategy To navigate the approval process

Why Do you need help Should you bother with funding assistance

Strategy / Timeline

Thank You!

Questions