Financing Infrastructure 2014 Governor’s Conference on Economic Development Tan 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   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 Eligibility Requirements  MoDOT EPG Section  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