Saturday, April 29, 2017

The Kansas Public Water Supply Loan Fund may be one of your options when it comes to financing water utility improvements.  You can also explore other options here. Also, take a look below at the Kansas Rural Water Finance Authority which can provide assistance with loan applications for both KDHE and USDA Rural Development, issuance of other debt for interim and long-term financing and more.

About the Kansas Public Water Supply Loan Fund:

  • Loans are made at below-market interest rates; the rate is 60% of the 20-Bond Buyer Index as of July 2011. Prior to that date, the rate was set at 80% of the 20-Bond Buyer Index.

  • Small cities and rural water districts receive ongoing financial review, advice and technical support.

  • A negative is that the projects need to comply with Davis-Bacon Wage Scale and also, American-made Iron and Steel.

To learn more about the Kansas Public Water Supply Loan Fund, find Fact Sheets, forms and other related information, click on this link to KDHE: 
Public Water Supply Section--Kansas Public Water Supply Loan Fund

Also to learn about the Kansas Rural Water Finance Authority, check the links below the interest rate chart on this page.

As of January 31, 2017, small systems have received 219 of the 302 loans (73%) for a total of $274,223,078.51 of the total $657,463,930.69 (42%) committed in loans. Systems serving a population of 5,000 or fewer are classified as small systems under the Kansas Public Water Supply Loan Fund.

  • The Kansas Rural Water Finance Authority (KRWFA) is a Kansas corporation created through inter-governmental agreement in 1987, pursuant to Kansas Statutes Annotated 12-2901. The Kansas Rural Water Association endorsed the creation of the Authority. This action was promoted by the Discount Purchase Program, an activity that was initiated by the Reagan Administration to reduce federal debt. The Discount Purchase Program resulted in the sale of a major portion of the old Farmers Home Administration loans for rural water districts. KRWA led an effort that gained systems the right to purchase their loans at the same discount that was being promoted to Wall Street investors. KRWFA assisted hundreds of rural water districts in analyzing the potential purchase of their loans from FmHA at that time; KRWFA negotiated funding for 16 systems in 1988 and 1989 under the Discount Purchase Program.

    In 1997, the State of Kansas, through the Kansas Department of Health & Environment, entered into a contract with KRWFA to provide financial advisory services to the Kansas Public Water Supply Loan Fund. KRWFA conducts a financial review of all applicants to the State Loan Fund and makes recommendations as to the adequacy of the water rates, etc. On rural water districts and those small towns that require reporting assistance to participate in the Loan Fund, the KRWFA enters into agreement with those borrowers to provide financial oversight to those borrowers during the life of their loan. The result is that small and rural water systems are well served as this oversight provides assurance on debt repayment. Systems in turn receive the same interest rate as the large, rated municipalities that participate in the State Revolving Loan Fund.

  • The purpose of the KRWFA is:

    To assist in financing local governmental activities, including adequate water supply, service, and treatment or sewage treatment and disposal;
    To allow cooperation between the Members of the Authority for the efficient use of all power of Public Agencies, and;
    To engage in any lawful act or activity for which the Authority, Rural Water Districts or other Public Agencies may be organized under the Act or other laws of the State of Kansas.

    The Authority strives to achieve the following:

    1. Provide alternative and recommendations to Members for the “most competitive” sources of financing;
    2. Provide a means to “pool” financing needs;
    3. To structure quality financing that serve the best interest of the borrower and that result in the best available market interest rates;
    4. To obtain economy of scale advantages in financing costs;
    5. To gain efficiency and consistency in executing financings, and;
    6. To serve the financing needs of Kansas rural water districts and municipalities.
  • A. Rural Water Districts
    B. Public Wholesale Water Supply Districts
    C. Cities
    D. Counties
    E. Other Municipal Governmental Entities

  • A. Construction and/or equipment
    B. Interim financing
    C. Loan and bond refinancing
    D. Lease/Purchase financing or refinancing

  • A five-member Board of Representatives, elected by the membership, governs the Authority. Email them at the addresses below:

    Patricia Schlesener President (Rural Water District No. 2, Dickinson County)
    Darrell Schlabach Vice-President (Rural Water District No. 1, Washington County)
    Elmer Ronnebaum Secretary/Treasurer (Kansas Rural Water Association)
    Jerry Bennett Director (Rural Water District No. 2, Miami County)
    Allan Soetaert Director (Rural Water District No. 7, Johnson County)

    Ranson Financial Consultants, Wichita, serves as Financial Advisor to the Authority.
    Contact: John Haas,