Financial Development Bureau
The Financial Development Bureau is responsible for preparing and managing the cash fow of the division's programs. The bureau also issues loans to borrowers and manages the financial administation of Montana's Water Pollution Control State Revolving Fund (WPCSRF) and Drinking Water State Revolving Fund (DWSRF) loan programs. Functions of the bureau include:
- Issuing general obligation bonds;
- Issuing Coal tax bonds;
- Monitoring the operating budget of the division;
- Preparing cash flows for:
- Monitoring financial statements of public borrowers
- Monitoring arbitrage calculations for all DNRC bonds; and
- Administering loans made to public entities.
With passage of the WPCSRF and DWSRF legislation, the volume of work dictated formation of the Financial Development Bureau. The loan portfolios alone have grown to over $504.8 million.
In FY 2010, the Water and Wastewater loan programs received an additional $38 million in federal ARRA funds. Sixty-four additional projects were completed. Federal ARRA funds from the Army Corp of Engineers programs helped rehabilitate irrigation systems in Montana. These, with the authorized loans funded with Coal Tax Bond proceeds made for a busy construction season in 2010.
Disbursement to grantees can be as much as $6.5 million per year. Approximately 750 to 1000 contracts are outstanding at any one time. Financial expenditures on each contract are tracked separately. Cash flows are produced monthly. For the revolving fund programs, investments must be made for repayment funds in the program.
Bond sales are planned to meet the construction schedules of the borrowers. On average, $5 to $10 million in bonds is issued each year. In FY 2010, more than $15 million in bonds and notes was issued. Loan disbursements were over $67 million in FY2010.
For Additional Information Contact:
Anna Miller firstname.lastname@example.org
Montana Department of Natural Resources and Conservation
Resource Development Bureau
1625 Eleventh Avenue
Helena, Montana 59620-1601