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This program runs a financial capability analysis that is similar to the one performed on each project by the PENNVEST staff.   The results from this analysis should help you better understand the information that is used to determine any financial package that may be provided by PENNVEST, and provide a reasonable estimate of the terms (loan amount/grant amount; interest rate; term) of any construction funding that may be made available.   You may not rely upon this analysis to provide the exact construction funding package that may be available to your system.  This program is only to be used a guide. Each project is given a complete in-depth review by PENNVEST staff, prior to recommendation for funding.   Each package is tailored to the specifics that related to an individual project.   For more information regarding this analysis contact the appropriate Project Specialist.

 

County – Use the drop-down list to select the county where the project is located.   If a project crosses county lines, you will have to choose the county with the greatest number of customers that are affected by this project.

 

Municipality – Use the drop-down list to select the municipality where the project is located.   If a project crosses municipal lines, you will have to choose the municipality with the greatest number of customers that are affected by this project.

 

Ownership – Use the drop-down list to select either private or public ownership.   Examples of private owners would be: manufactured housing communities, homeowner associations, investor owned utilities, commercial / industrial ventures.   Most other system owners would likely be identified as public owners; these would include: cities, boroughs, townships and other municipal-related entities such as authorities.

 

Sub-Type – Use the drop-down list to identify if this project will construct water or sewer/storm related improvements.   Water would relate to any potable drinking water projects.   Sewer/storm should be selected if your project relates to sanitary sewer, treatment and/or storm water improvements.  

 

Since storm water projects do not typically utilize a user fee structure for repayment, this analysis may not be useful.   If you are considering a storm water project and do not collect a storm water user fee, you should consult the “cap interest rate” area of the Borrowers Tool Box, or contact the Project Specialist responsible for your area for more detailed information relating to PENNVEST funding for storm water projects.

 

Input Fields – Type in the requested information relating to your estimated project costs, system demographics and annual expenditures.

 

Click on the “?”  image for more detailed descriptions of the information to be provided.

 

   

Tips:

  • No contribution, equity or tap fees are required in order to be eligible for PENNVEST funding.
  • Indicate the total amount of contributions, equity and/or tap fees (if any) in the respective block.
  • Previous Advance Funding will only show a figure if you already have an advance-funding offer from PENNVEST.
  • O&M Costs should be equal to the actual cost of providing service to the customers, and should not include inter-fund transfers or other costs that are not related to the system.   Bulk sales and other system revenue should be deducted from the total O&M.
  • Debt Costs should reflect the annual debt service payment on outstanding system debt that has a repayment period of greater than five (5) years.
  • Percent Residential: enter the percentage (1 to 100) that is equal to the residential customer billing divided by the total number of water/sewer service billings.
  • No of Households should reflect the number of residential households that will be served by the system once this project is complete.
  • Current User Rate – indicate the annual average residential user rate.   If no rate exists indicate with a “0”.

 

Double check to make sure that the figures input are accurate before you click on the calculate button.    

 

 The program will display the results of the analysis based upon the input:

 

Loan Amount – this figure is equal to the amount loan (repayment) funding may be available to the system.

Grant Amount – this figure is equal to the amount of grant (no repayment) funding that may be available to the system.

1 st Interest Rate – the interest rate that will be charged for the first five (5) years against any loan funding that may be available to the system.

2 nd Interest Rate - the interest rate that will be charged for years six (6) through twenty (20)  against any loan funding that may be available to the system.

Loan Term – Length of the loan repayment period.   In most cases this will be equal to two hundred and forty (240) months (twenty (20) years) but in certain hardship cases the term may be extended to a period  up to three hundred and sixty (360) months (thirty (30) years).

Resulting Rate – This is the estimated resulting annual residential user fee that would have to be charged each residential customer in order to repay the debt and cover the cost of operations.

 

You may now click on the re-calculate button in order to change some or all of the variables used on this project, or use the start over button to begin a new analysis.