1. Michael Vonderheide NMFA Director of Water Resources
Local Government Planning Fund (LGPF) Drinking Water State Revolving Loan Fund (DWSRLF)
Michael Vonderheide NMFA Director of Water Resources
New Mexico Infrastructure Finance Conference October 24-26, Albuquerque, NM

2. Local Government Planning Fund (LGPF)

3. Local Government Planning Fund
Provides up to $50,000 in grant funds for planning related documents
Communities can qualify for two grants per 24-month period not to exceed $100,000
Applications accepted monthly through EnABLE, NMFA’s online application system

4. Eligible Entities Municipalities Counties Mutual Domestics
Public Water Associations and Co-ops
Irrigation Districts
Indian nations, tribes or Pueblos located wholly or partially in New Mexico
Agencies or Institutions of the State

5. Eligible Plans Preliminary Engineering Reports
Environmental Information Documents
Asset Management Plans
Water Conservation Plans
Water Master Plans
Economic Development Plans (LEDA)
Metropolitan Redevelopment Act Plans
Comprehensive Plans
Economic Development Feasibility Studies
Metropolitan redevelopment plans/ LEDA plans, Comprehensive plans, Infrastructure Plans.

6. 0% - 100% grant funds, the remainder is match.
Terms and Rates
0% - 100% grant funds, the remainder is match.
Tests to determine amount of Grant:
Medium Household Income Test
MHI of Entity / MHI of the State
Local Burden Ratio Test
Local water rate / State average water rate (based on 6,000 gallons)
-- Cash Test --
Review financials for no more than ½ total expenditures in available cash
Grant amounts can be combined!

7. Terms and Rates, cont. Job Availability Test Wage Sufficiency Test
Entity Employment / State Employment
Wage Sufficiency Test
Entity Median Earnings / State Median Earnings

8. Local Match Waivers:
Urgent Needs
Projects cure regulatory compliance issues cited by NMED
Public Health Threats
waterborne disease outbreak & inadequate water supply [existing or imminent solved by project]
Acute road hazards brought on by catastrophic events or severe weather
Flood & drainage issues resulting from inadequate or poorly designed infrastructure causing health & safety issues
Dam Safety projects that restore to a safe condition impending failures in dam structures.
Projects that cure conditions brought on by unforeseeable calamity, including: flood, fire, storm, earthquake, drought, civil disturbance, accidental spill of a hazardous material or similar occurrence, disrupts the provision of utility services or endangers the provision of public utility services
Declining Economic Development
Planning documents that enact or update Local Econ Dev Act ordinances
Planning documents that enact or update Metro Redevelopment plans
Qualified entities that qualify for Small Cities Assistance Fund or Small Counties Assistance Fund experienced decline of GRT over past 24 months
Qualified entities that don't qualify for Small Cities Assistance Fund or Small Counties Assistance Fund experienced decline of GRT over past 36 mons
Qualified entities experienced loss of major employer in past 12 months
Qualified entities without GRT authority that serve fewer than 250 connections

9. Tips for Success
Have someone dedicated to monitoring the project, and who will communicate with NMFA through the address
Have the contractor lined up before you apply for the grant, or if you cannot do that, then RFP as soon as you receive the award letter from NMFA
Be aware of the deadlines in the award letter:
Within 5 months you must have a signed contract. This is crucial, otherwise the project will be off track from the get-go!
Within 12 months you must submit the planning document to the reviewing agency
Within 16 months you must have final approval of the planning document (it can take up to 2 months to close)
Within 18 months the grant must be closed and funded
Communication with NMFA is key!

10. Application NMFA Contacts:
Applications accepted monthly through the EnABLE online application system
Send all questions to
Local Government Planning Fund
NMFA Contacts:
Susan Rodriguez, Water Resources Administrator
Mary Finney, Water Resources Administrator

11. Drinking water state revolving loan fund
(DWSRLF)

12. Drinking Water State Revolving Loan Fund
DWSRLF offers low-cost financial assistance to water systems to:
Finance repair and replacement of drinking water infrastructure
Ensure compliance with drinking water regulations
Protect drinking water quality and public health
DWSRLF is jointly administered by New Mexico Finance Authority (NMFA) and New Mexico Environment Department - Drinking Water Bureau (NMED-DWB).

13. Federal Funding Source
DWSRLF is federally funded through U.S. EPA, which has important implications. DWSRLF is subject to:
Availability of federal funds
Federal priorities (e.g. subsidy)
Federal requirements, such as:
National Environmental Policy Act
American Iron and Steel
Davis-Bacon Wage Act
Disadvantaged Business Enterprise
Federal Single Audit

14. DWSRLF Advantages Broad eligibility Low interest rates (0%-2%)
25%-75% subsidy (subject to availability)
Funding requests accepted year-round
Assistance provided to unsuccessful applicants to enable them to qualify
High level of customer service

15. Examples of Eligible Projects
Eligible Systems
Public Water Systems (PWS) that are privately or publicly owned community water systems, or a non-profit non-community PWS
Examples of Eligible Projects
New and replacement sources
Treatment
Transmission/Distribution
Storage
Meters
Infrastructure to regionalize water systems

16. Disadvantaged Systems
Disadvantaged systems qualify for special funding terms.
Disadvantaged system:
Community Median Household Income (MHI) ≤ 90% of State MHI, and
0.01 < Affordability ratio* < 0.015
Severely Disadvantaged system:
Community MHI ≤ 90% of State MHI, and
Affordability ratio* > 0.015
* Affordability ratio = Average Annual User Charges/MHI

17. Interest Rates and Loan Terms
Loan repayment period is up to 20 years, following a 2-year construction period
Severely Disadvantaged systems may qualify for loan repayment period of up to 30 years.

18. Subsidy
Subsidy is determined annually. It may be fully allocated before the end of the fiscal year.
Current subsidy:
All construction projects – 25% subsidy
Disadvantaged systems – Additional 25% subsidy
Severely Disadvantaged systems – Additional 25% subsidy
Maximum subsidy – 75%

19. Priority List
DWB develops and publishes Comprehensive and Fundable Priority Lists.
All systems that submit a Project Interest Form and required supplemental documents to DWB are included on the Comprehensive Priority List.
Systems that meet the following criteria are included on the Fundable Priority List:
Adequate Managerial and Technical Capacity as determined by DWB
Project is ready-to-proceed within 6 months
Financial ability of system to repay the loan

20. Priority List, cont.
Eligible projects are ranked on the Priority Lists according to DWSRLF Project Ranking Criteria, which includes these 6 categories:
Source Water Vulnerability
Safe Drinking Water Act Compliance
Affordability
Regionalization
Water Efficiency
Sustainability
Funding is allocated to projects on the Fundable Priority List in the order they are ranked.

21. Intended Use Plan
NMFA/DWB create an annual DWSRLF Intended Use Plan (IUP), which outlines how we plan to use federal funds for the coming fiscal year. It includes:
Loan interest rates, loan terms, and subsidy
Priority ranking criteria
Annual Fundable Priority List
IUP is subject to public review and comment before it is finalized and approved by EPA.
Current IUP for SFY 2019 is available on NMFA and DWB websites.

22. Drinking Water State Revolving Loan Fund e-mail DW@nmfa.net
NMFA Contacts
Send all questions to:
Drinking Water State Revolving Loan Fund
Todd Johansen, Senior Program Administrator or (505)

23. Thank You