Water Projects Financing Update: July 2021
Update on the financing status of water projects as of June 30, 2021, including cash balance, committed funds, principal forgiveness loans, and program updates. Discussion points for the upcoming virtual meeting on July 27, 2021, regarding funds available for projects, debt service reserves, and pending grants.
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Board for Financing Water Projects July 27, 2021 2:00 PM To be held Virtually Lifesize: https://call.lifesizecloud.com/4155018 Skype for Business: https://skype.lifesizecloud.com/4155018 Call in from Mobile/Phone (audio only): United States: +1 (877) 422-8614 Meeting extension: 4155018# This meeting will not be broadcast over the Internet.
Drinking Water funding update as of June 30, 2021 Cash in fund $68,740,512 Less debt service reserves Add undrawn grant balance 1,208,008.15 Available for projects Committed funds not yet disbursed Add commitments for Board consideration Add projects in discussion with OFA Total committed funds after Board Approval Lowest cash flow balance in three (3) years (6,003,475) $63,945,045 35,137,277 520,360 37,113,000 72,770,637 $20,246,495
Drinking Water funding update as of June 30, 2021 Year 1 $63,945,045 Year 2 $66,065,982 Year 3 $20,246,495 Cash balance forward Receipts from grants awarded 10,236,220 10,236,220 0 Transfer to the CWSRF Program2 0 (30,000,000) 0 Receipts from bonds issued Receipts from treasurer's interest3 Receipts from loan principal Receipts from loan interest Payments for debt service on bonds Payments for loan recipients3 5,001,000 0 0 684,343 530,827 244,117 13,046,247 14,003,506 13,521,123 3,850,217 3,670,926 3,316,814 (3,044,538) (2,958,938) (2,872,600) (27,824,490) (41,472,141) (4,956,118) Change in debt service reserves 171,938 170,113 1,208,338 Cash balance forward $66,065,982 $20,246,495 $30,708,169 [1] Estimate only for planning purposes. All numbers are subject to change. [2] Transfer to CWSRF is dependent upon budget approval and EPA consent. [3] Estimated at 1% A.P.R. on undisbursed cash in the fund. Subject to change.
Drinking Water funding update as of June 30, 2021 $520,360 Current funds to obligate for principal forgiveness loans 520,360 Less projects for board consideration 0 Current funds to obligate for principal forgiveness loans 2,717,620 Pending Grants (estimated allotment) $2,717,620 Total Principal Forgiveness Funds by October 2021 (estimated)
Program Updates All borrowers have made their July 1, 2021 debt service payments timely. As of July 1, 2021, the program has 29 distinct borrowers: o 21 public entities with $161,038,345.56 outstanding o 8 Private entities with $1,663,426.15 outstanding
Capital Improvements Grant funding update as of June 30, 2021 Current Cash $2,755,979.65 Reserved for Administration $15,248.07 Committed funds not yet disbursed: Pending Disbursements $2,755,030.00 - Bond issuance authority (AB492/2021) Projects for Consideration $8,000,000.00 - Reserved Administration (bond proceeds): ($2,334.00) Un-committed bond proceeds: $7,983,367.58 Estimated bond interest earnings not yet received (1% A.P.R. estimate) $138,842.10
Committed funds not yet disbursed: GP2101 Storage Tank 2 rehabilitation $487,500.00 Lovelock Meadows Water District GP2102 Churchill County $622,274.00 New well for redundant source requirements Arsenic Treatment $693,026.00 Alamo Sewer and Water GID $500,000.00 Las Vegas Valley Water District (Big Bend) Treatment plant improvements; storage rehabilitation; distribution; electrical controls $452,230.00 Las Vegas Valley Water District (Blue Diamond) Pipe replacement, storage, and backup well. Total $2,755,030.00
Projects for consideration: None $487,500.00 Total $0.00 Letter of Intent submitted/in discussion for funding: #8 $2,250,000.00 Las Vegas Valley Water District (Clark County Regional) Septic Sewer Conversion Regional (Clark County) #22 Golconda GID $793,000.00 New well for redundant source requirements #27 Topaz Ranch Estates GID Redundant source $1,574,500.00 #41 Las Vegas Valley Water District (Big Bend) Las Vegas Valley Water District (Big Bend) Las Vegas Valley Water District (Blue Diamond) Riverbank Filtration Well $568,000.00 #21 System Rehabilitation $2,688,566.00 #109 Pipe replacement, storage, and backup well. $2,375,000.00 Pershing County Water Conservation District Rodgers Flume Replacement $2,160,000.00
Capital Improvements Grant funding update as of July XX, 2021 NRS 349.986(1): The State Board of Finance shall issue general obligation bonds of the State of Nevada to support the purposes of the program established by NRS 349.981. The aggregate principal amount of such bonds outstanding at any one time may not exceed $125,000,000. Outstanding general obligation bonds as of April 1, 2021 $125,000,000 ($31,998,000) Available for issuance $93,002,000 AB 541 2019 Legislative Session, Section 17 Less 2019B Series issued December 10, 2019 $3,000,000 $1,500,000 Less 2020B Series issued November 10, 2020 $1,500,000 Remaining Authority $0
Capital Improvements Grant funding update as of July XX, 2021 Pending 2021 Legislative Session* $8,000,000 Las Vegas Valley Water District (Blue Diamond) 25% $2,375,000 McGill Ruth CWSGID 52% $520,000 Churchill County 56% $186,662 Nye County (Gabbs) 50% $829,043 Beatty Water & Sanitation District 35% $689,500 Golconda GID Las Vegas Valley Water District (Big Bend Water District) 61% 71% $793,000 $2,690,900 *Subject to change based upon information at time of grant commitment.
Increased funding for Board-approved loans Roark Estates $213,000 approved on April 17, 2019 Backup storage tank has significant deterioration and needs replacing. After several attempts by the engineering firm to advertise for bids, only one viable bid was received, and it came in higher than anticipated. Bid is currently being held by contractor pending additional funding approval. Additional $91,700 requested Total Loan commitment: $304,700 principal forgiveness funding
Project #1 Silver Knolls Mutual Water Company, Washoe County . Arsenic Mitigation
Silver Knolls Community Off of Red Rock Rd, Washoe County, NV
Silver Knolls Mutual Water Company Washoe County Replaces the existing Arsenic treatment system Community PWS owned and operated by SKMWC 64 total connections (120 residents); Also serves Red Rock park Pilot testing done Blending is feasible and final details during design phase Priority list Rank #12 2 wells, but only Lower Well (Well 3) is productive. Well 3 Upper Well (First SRF project!) Blends Raw and Treated water at Well 1 Pump House Upper Tank 200,000+ gallon-capacity (SDWIS 245k) No ongoing As mitigation needs to meet SDWA compliance issues ; Currently on mandatory bottled water supply Sanitary Survey by BSDW in October, 2020 Water Conservation Plan pursuing TA Most recent As treatment project is not practical to use owing to cost prohibitive filter change needs; SKMWC Board discussed and approved a revised project cost estimates cost volatility & supply chain disruptions. System agreed to take on little extra cost over the LoI estimates. SKMWC need to work towards achieving supply redundancy Known culturally sensitive area but work within the fenced premises & no significant new ground disturbance work necessary Motivated Management Has been closely working with NDEP and weekly engagement with the engineering team & local community
SKMWC Facility - Bighorn Pump House, Tank, and Upper Well Upper Tank
Existing As treatment system (Proprietary Zirconium hydroxide filtration/adsorption system)
Catridges for the Existing As treatment system
Preliminary determination for ER & NHPA needs for water project: Project Silver Knolls Mutual Water Company PWS (NV0004021) To assure sustainable supply of safe drinking water To address As mitigation needs and ongoing expenses owing to bottle water supply Feasibility: Engineer s estimated cost $544,623.00 Conservative estimate No other water quality compliance issues; Need to re-establish supply redundancy Experienced management; PWS would be working closely with OFA Water conservation plan significant groundwork done and ready; NDEP TA; Arsenic Mitigation (DWSRF/Local Funding) Ready to proceed
$ 544,623 Principal Forgiveness Loan Silver Knolls Mutual Water Company PWS (NV0004021) Silver Knolls Mutual Water Company is addressing a chronic condition with this project and therefore, eligible to receive up to $1,000,000 in principal forgiveness funding. Financial information provided demonstrates financial capacity for the system System is generating enough revenue to cover operations and maintenance. System will be reviewing rates this year to determine if any increases are necessary. Arsenic Mitigation (DWSRF/Local Funding)
DWSRF Water System Survey Did not Open Unsubscribed 488 513 1001 Total 866 Opens Bounces 257 226 483 121 124 245 3 0 3 Drinking Water Email distribution Feb 19, 2021 @ 9:15 am PT Reminder March 2, 2021 2:10pm PT 866 68 7.85% Responses Response rate Average time to complete survey 8 min,12 sec Eligibility 44 64.8% Qualifying entities 24 35.3% Entities that do not qualify System Size 51 75.0% Less than 6,000 residents 6 8.8% 6,001 to 10,000 residents 11 16.2% More than 10,000 residents
DWSRF Water System Survey Project needs 46 67.6% Less than $1,000,000 15 22.1% $1,000,000 to $10,000,000 7 10.3% More than $10,000,000 How systems determine need 47 30% Failed or failing infrastructure 42 27% Proactive capital improvement planning 37 24% Compliance mandate 23 15% Recommendation from an engineer
DWSRF Water System Survey DWSRF program Successes *Principal forgiveness eligibilities *Loan terms and repayment *Interest rates *staff support *draw processing DWSRF program Challenges *Historic Preservation (SHPO) Consultations *Davis-Bacon Wage Requirements *American Iron and Steel Requirements *Application process *Understanding federal and state requirements
