Finance Authority
What is the Kansas Rural Water Finance
Authority? | Purpose of the KRWFA |
Eligible Entities | Types of Financing
Available | Who Governs the KRWFA?
What is the Kansas Rural Water Finance Authority?
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;back to top
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 Districtsback to top
B. Public Wholesale Water Supply Districts
C. Cities
D. Counties
E. Other Municipal Governmental Entities
A. Construction and/or equipmentA five-member Board of Representatives, elected by the membership, governs the Authority.
B. Interim financing
C. Loan and bond refinancing
D. Lease/Purchase financing or refinancing
