NYS EFC Announces Over $18 Million in Savings for Clean Water and Drinking Water Projects Across the State

ALBANY, NY (03/17/2011)(readMedia)--

New York State Environmental Facilities Corporation (EFC) President and CEO Matthew J. Driscoll today announced that 140 communities will save a combined $18.3 million with the issuance of $132 million in State Revolving Fund (SRF) refunding bonds. The bonds, issued by EFC, will not only result in significant savings for municipalities throughout the State, but will enable them to continue moving forward with meaningful projects that prevent water pollution and protect local drinking water supplies in a cost-effective manner.

"As State and local governments work through these difficult times, it is imperative that we find ways to provide fiscal relief to our municipalities," said President Driscoll. "This action represents real savings to local taxpayers and I congratulate all of the communities who have participated in this refunding."

The refunding bond sale that closes today delivers additional savings for the 140 borrowers by refinancing the original bonds that funded their projects. The borrowers will save, on average, an additional 6.6 percent. These SRF borrowers participated in earlier project financings through EFC and received a 50 percent interest rate subsidy for Clean Water projects and a 33.3 percent interest rate subsidy for Drinking Water projects. The loans total $140.2 million from the Clean Water State Revolving Fund (CWSRF) and $123.4 million from the Drinking Water State Revolving Fund (DWSRF). By using bond proceeds that are supplemented by other SRF funds to provide leveraged loans, EFC is able to offer two or three times as much capital for water quality protection projects. These EFC tax-exempt bonds are rated triple-A by all three rating agencies (Fitch-AAA, Moody's-Aaa, S&P-AAA), enabling EFC to obtain much lower interest rates than if its borrowers sold their own bonds.

"Today's action brings fiscal relief to hard-pressed municipalities in the same way that refinancing a mortgage to a lower interest rate benefits homeowners," said Joe Martens, Commissioner of the New York State Department of Environmental Conservation (DEC) and Chairman of EFC's Board. "DEC is committed to partnering with EFC to lower the cost burden on municipalities to reach our clean water and drinking water goals."

"Access to clean and safe drinking water is critical to the health of all New Yorkers," said Nirav R. Shah, M.D., M.P.H., Commissioner of the New York State Department of Health (DOH). "The cost savings from this refunding is welcome relief for these municipalities and will make their drinking water improvement projects an even better investment."

EFC manages the largest and one of the most successful State Revolving Fund Programs in the nation, with assets in excess of $12 billion. EFC jointly administers the CWSRF and DWSRF with DEC and DOH, respectively. Since the inception of the CWSRF in 1990, the program has provided $11.8 billion in low-cost financing for over 1,400 water quality improvement projects. Since 1996, the DWSRF has provided $2.7 billion in reduced interest rate financing and grants for over 600 drinking water projects.

A listing of highlighted recipients and their present value savings are attached. The full list of recipients is available at http://www.efc.ny.gov/2011ARefundingSavings .

For additional information on the Clean Water and Drinking Water SRF Programs, please visit www.efc.ny.gov .

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Posted Thursday March 17, 2011 at 11:32 am by New York State Environmental Facilities Corporation