draft

Add Subs Reqd.

Add Subs Actual

DAC Reqd.

DAC Actual

2018 2019 2020 2021 2022

$ 3,519,400 $ 3,486,400 $ 2,442,020 $ 2,439,780 $1,551,140

$ 3,519,400 $ 2,833,248 $2,442,020 $845,619

100%

N/A

81%

$ 1,045,920 $ 1,046,580 $ 1,045,620 $1,332,120

$ 1,045,920 $ 1,046,580 $ 1,661,500

100% 100% 121%

100%

35%

II. INFORMATION ON THE DWSRF ACTIVITIES TO BE SUPPORTED Allocation of Funds Allocation of funds to eligible projects is based on a three-step process: 1. The amount of financial assistance needed for each application is estimated. 2. The sources and spending limits for all DWSRF funds are identified 3. The DWSRF funds are allocated among the projects, consistent with the financial assistance needed.

Information pertinent to each DWSRF project is contained in the attached Project Priority List (Attachment 1).

Sources and Uses of Available DWSRF Funds Iowa received $17,427,000 for the FFY 2021 Cap Grant in November 2021. In September 2022, t he SRF Program was awarded the FFY 2022 Cap Grant in the amount of $11,101,000. Appendix A to this IUP illustrates potential sources and uses of funds in the DWSRF for SFY 2023. As shown, all pending loan requests and program administration needs can be funded. Projects will draw on their funding at different intervals based on their construction cycles. These differences are used to estimate cash needs throughout the year. Appendix A will be updated quarterly as needed to provide an ongoing view of the financial plan for meeting loan requests. Iowa’s SRF program issues bonds as needed. These bond issues typically include the state match for the next federal Cap Grants. See Appendix D. On May 5, 2021, IFA issued $218,290,000 million of SRF bonds; no additional state match funds were necessary at the time and were not included in the 2021 bond issue. On May 3, 2022, IFA issued SRF bonds totaling $206.18 million ($198.025 million tax-exempt and $8.155 million taxable). The 2022 bonds included $3 million of Clean Water state match and $5.7 million of Drinking Water state match, which was deposited in the respective state match accounts. After SRF bonds are issued, the state match is spent first so the Cap Grant can be drawn down at 100% when it is received. The Iowa SRF program was invited to apply for a loan through EPA’s State Infrastructure Financing Authority Water Infrastructure Finance and Innovation Act (SWIFIA) program. SWIFIA is a loan program exclusively for State infrastructure financing authority borrowers. SWIFIA may be used for up to 49 percent of an eligible project’s costs that are ready to proceed, meaning construction will commence within 18 months after the Letter of Interest is submitted to EPA. A preliminary list of mostly CWSRF projects eligible for SWIFIA funding has been identified, totaling more than $500 million. The SRF program is in the process of working through the underwriting process; the timeline for closing the loan is yet to be determined. DWSRF Loan Policies Project Scope. The scope of the project must be outlined on the Intended Use Plan application and in the preliminary engineering report. Changes to the scope are allowed prior to loan closing. Significant changes in scope may cause delays if additional work is required by the project manager or environmental review specialist. Once a loan is signed, only minor changes to the scope will be allowed and only if they do not require additional technical or environmental review. Loan Interest Rates . Interest rates for DWSRF planning and design loans are 0% for up to three years. The current interest rates for DWSRF construction loans are shown in the table below:

IOWA SRF INTENDED USE PLANS 2023 - DWSRF | Page 34