HomeMy WebLinkAbout9-10-20 grant finance discussion w Katy Kevin9-10-2020
Grant discussion with Kevin and Katy
Ecology
Ecology open right now and closes 10/13. We are not eligible for construction funding because we don’t have Ecology approved plans/specs submitted. Next year would be better.
We could use their money (loan) to fund on-site work; however, we would not take out a loan without an LID to pay it back. Otherwise, what guarantee do you have that property owners
will pay back the loan. Could roll it into the monthly bill, but that is not recommended as monthly bill will already be high.
From Katy:
I prepared a summary of this year’s Ecology interest rates as would apply to Port Hadlock….for your info. The standard interest rate for 20-year is 1.2%, or 1.6% for 30-year loans.
With hardship, the interest rate would be reduced to 0.0% to 0.8% depending on the amount of grant received overall (reduces the cost of sewer to the customers). The standard Ecology
rate for 20 years is set to be 60% of the bond market. So if rates remain low, all programs should continue to have low rates.
USDA
Katy has spoken with Darla O’Connor at USDA. They are open year round but may not always have funding available. You can apply anytime. They will look at project and decide what they
want to fund, how much, and what percentage will be loan. Their loans right now are 40-year at 1.5%. Fed fiscal year is September to September which might mean something.
EDA
Hope to hear in a few weeks which will influence everything. Should meet with USDA and Ecology after we know more from EDA.
Legislative Appropriation
Need to be preparing. Better to have a scope than just a $ ask. What money is the appropriation leveraging?
PIF extension
As discussed before, would allow significant borrowing. $6 million easily. Should be working on this.