Water and Sewer
The challenges facing issuers. Counties, municipalities and utility districts of all sizes, multi-jurisdictional utility agencies and state-wide issuers of water and sewer obligations face a threefold challenge in planning water and sewer financings: minimizing the cost of providing services given the regulatory environment, obtaining the most cost-advantageous mix of financing options and minimizing administrative overhead.
Institutional knowledge. To meet these challenges, Peck Shaffer has the institutional knowledge gained from many years of experience with water and sewer financings at both the state and local levels. We can advise issuers as to the multiple sources of funding which may be available for a project, including state grants, subsidized state revolving fund loans premised on Federal Grant qualification, United States Department of Agriculture ("USDA") 40 year loans, state self-supporting bond pool programs with an "AA" rating and interim construction financing options. Over the years, we have assisted in structuring various financings that provide the most economical and operationally advantageous outcome for the given utility. We have also worked on several water district mergers and acquisitions and addressed such complex issues as the assumption of debt, bond resolution authorization and tax implications.
Tax Analysis. Certain legal issues relating to the tax exempt status of bonds often arise with respect to financings involving water and sewer systems, particularly if a private manager is hired to operate the water and sewer system. Our Tax and Financial Analysis Department is dedicated to providing the most up-to-date advice on such tax issues. The members of this department have extensive experience with financings involving private management agreements and special arrangements for certain users, which enables them to quickly identify the issues to be addressed and provide the requisite solutions to insure the unqualified tax-exempt status of the bonds.
Examples of longstanding client relationships. Metropolitan Sewer District, Cincinnati, Ohio ("MSD"). We have served as bond counsel for the Metropolitan Sewer District since it was established in 1968. We have approved the issuance of over $1.2 billion in sewer system revenue bonds for MSD since the inception of its revenue bond program in 1985.
Kentucky Infrastructure Authority ("KIA"). We have served as bond counsel to KIA since its present programs began following its evolution from the former Pollution Abatement Authority in the mid 1980s. KIA has issued obligations in excess of $450 million during this time period. IN addition, we have provided KIA with general legal services and prepared and reviewed agreements for all of KIA's existing programs, totaling more than 300 transactions. Furthermore, we have drafted legislation for KIA as well as the regulations for many of KIA's programs.
City of Cincinnati, Ohio. We have served as bond counsel for the issuance of over $300 million in water system revenue bonds for the City since 2001. The 2001 financing was the first water revenue bond issued for the City of Cincinnati and, because of the City's prior preference for general obligation debt, the first revenue bond issue of any kind by the City in nearly 40 years. We drafted a master indenture in order to provide for that particular financing and the financing of future improvements to the system.
Greene County, Ohio. We have served as bond counsel to Greene County since 1991 for issuances of $68,420,000 in water system bonds and $174,072,000 in sewer system bonds to provide utility service for an expanding service area population and to comply with Ohio Environmental Protection Agency regulations.
Northwestern Water and Sewer District (Ohio). Peck Shaffer was instrumental in forming this District in 1993, which was created to take over the Wood County, Ohio utility system. We have served as bond counsel for the district for issuances of $10,171,000 in water and sewer revenue bonds and $8,314,000 special assessment bonds, many of which were purchased by the USDA, Rural Development.
