In 2018, Municipal Finance Services, Inc. (MFSOK) began working with the City of Coweta (the City) to evaluate funding options to upgrade the City’s wastewater treatment plant. To accommodate the growing population, the City needed to increase the treatment capacity from 0.75 million gallons per day to 1.5 million gallons per day.
In 2019, MFSOK presented the Coweta Public Works Authority (the Authority) various funding options for long term, fixed interest rate financing. The options considered included revenue bonds issued directly by the Authority, revenue bonds issued by the OWRB on behalf of the Authority or use of the OWRB’s CWSRF loan program. The Authority chose the CWSRF loan program, which offered a subsidized fixed interest rate, a drawdown feature during construction, and significant flexibility in structuring principal repayment. The ability to structure principal repayment was an important consideration for the City/Authority because of the desire to minimize any increases in total annual debt service requirements for the Authority and keep utility rates as low as possible for the City’s utility customers.
MFSOK assisted the City and other transaction participants to structure the loan terms, prepare and submit the loan application on behalf of the Authority, and facilitate the loan application, review, approval, and closing process. The loan closed on October 17, 2019, with a fixed interest rate of 2.08% (including the OWRB 0.50% Administrative Fee).
Back to Case Studies