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Project cost overruns are the responsibility of the borrower. Careful consideration by all parties is given to manage and avoid cost overruns. Nonetheless, the BCIB loan budget will always include a contingency line item for unanticipated costs.
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BCIB is a loan financing program for municipal entities (i.e. eligible borrowers) for the design and construction of infrastructure improvements, created by the County utilizing County-allocated Act 13 Impact Fees. The County will use its Act 13 Impact Fee allocation as collateral against new debt and in-turn provides subsidized reduced interest loans for its municipalities, making infrastructure projects more affordable. The County intends to maintain annual set-aside funding with the ultimate goal of creating an ongoing loan fund/financing stream.
Recipients of BCIB loans may receive financing at reduced interest rates for a fixed term than may be available through alternative conventional financing institutions. BCIB loan recipients may also take advantage of the "Turnkey" Project Design and Delivery option for Applicants who may not have the necessary capacity to design proposed projects effectively. The Program Engineer will oversee and lead the project delivery process from planning and design through project completion. This Turnkey process combines the project delivery capabilities of the Program Engineer with Applicant resources to ensure projects are completed in an efficient and cost effective manner.
The following entities may apply for BCIB loans (must be based in Butler County and eligible for tax-exempt borrowing):
(Note that school districts, redevelopment and economic development entities may potentially be beneficiaries of BCIB funding for public infrastructure related projects through cooperation with an eligible applicant, dependent upon proposed use of the proceeds, security and repayment; but are not permitted to apply directly to the BCIB Program at this time.)
Projects eligible for the BCIB Program must be eligible activities under Act 13 and will focus on the following:
No. Eligible project costs include the following:
Please be advised that the above list of eligible uses does not constitute Act 13 eligibility. Municipalities should consult with the County regarding specific eligibility questions. All Applicants must attend a pre-application conference to be considered for the BCIB Program.
There is no minimum or maximum amount of project size or loan financing that may be awarded to an individual project. Loan amounts will be determined based on the scope of the proposed project, the amount of leveraged funds available to the Applicant through other public and private sources, the agreement of the Applicant and/or host municipality to support the credit worthiness necessary to repay the loan, and overall demand for the BCIB Program. The County will also consider the project’s impact on regional public infrastructure goals (relating to transportation, water, wastewater, or stormwater), public health and safety, and economic development when determining subsidized loan financing awards. Applicable costs of issuance associated with securing BCIB loans may be included and financed as eligible project costs.
The maximum term for a BCIB loan is 10 years, unless otherwise determined by the Board of Commissioners. Repayments will be structured as equal payments made annually, semiannually, quarterly, or monthly over the term of the loan (yet to be confirmed). Eligible Applicants may be awarded financing at a fixed reduced interest rate for the 10 year term equal to a 1.5% interest rate subsidy on the financing secured by the County. The official loan and payment terms will be determined following the issuance of County financing. All BCIB Program loans must be secured by the Applicant. The expectation is for BCIB loans to be secured by the full faith and credit of a taxing authority, but the County reserves the right to accept other forms of security upon credit review in accordance with Section 6 of the Program Guidelines.
In order to be considered for financing through the BCIB Program, all Applicants must demonstrate credit worthiness. The evaluation of credit worthiness will include, but is not limited to, the following factors, which may be adjusted by the County as deemed necessary:
The BCIB Advisory Board intends to keep all documents submitted and designated as "confidential" or "proprietary" by eligible Applicants to the extent the documents are exempt from disclosure under the Right-to-Know Law.
To ensure timely completion of projects funded by the BCIB Program, approved projects may take advantage of the "Turnkey" Project Design and Delivery option. If an Applicant selects the Turnkey option, they will independently contract with the BCIB Program Engineer to provide resources necessary to design and implement an approved project, and to oversee and lead the project delivery process from planning and design through project completion.
This Turnkey process combines project delivery capabilities of the Program Engineer with Applicant resources to ensure projects are completed in an efficient and cost effective manner, and in compliance with any applicable time restrictions associated with the County-secured financing. The delivery process will fulfill the Applicant project requirements and ensure adherence to both the County’s and Applicant’s schedule, as well as legal and fiduciary requirements. The Program Engineer will administer all phases of the project including planning, design, permitting, bid document preparation, bidding, contracting (including administering contracts between necessary vendors and the Applicant/loan recipient to complete the project), and commissioning. The County will not be a party to the Applicant’s contract with the Program Engineer.
The "Finance Only" Project Design and Delivery option allows the Applicant to utilize their own professional to design, permit, and prepare plans and specifications for the proposed project, to be reviewed by the County.
Applicants interested in funding through the BCIB Program must request a pre-application conference with the County. Pre-application conferences must be complete per the published funding round schedule. The required conference is designed to provide potential Applicants with an overview of the Program, application process and eligibility, and assistance with budget development to assure the completeness of the project application for formal submission and review.
During the pre-application conference, the County’s BCIB Program consultants and/or staff will discuss the proposed project with the Applicant, answer BCIB Program questions, and gather additional project details.
An important outcome of the pre-application conference will be the development of the Project Budget for the BCIB Program Application. The County’s engineering consultant will review the project budget and provide confirmation or recommended changes for both the Applicant’s and the County’s consideration and concurrence when processing the application. The mutually concurred Project Budget will serve as the basis for determining the project’s financing need.
To schedule the mandatory pre-application conference, contact Mark Gordon at 724-284-5300 or email Mark Gordon.
The BCIB Advisory Board will review applications and make recommendations to the County Board of Commissioners based on the Applicant’s creditworthiness, as well as the project’s constructability and overall consistency with the BCIB Program statement of purpose; identified outcomes, such as the impact on water/wastewater/stormwater service, traffic congestion, public health and safety, and economic development; and ability to meet the overall BCIB Program objectives. The following is an expanded list of potential project evaluation criteria:
The FY 2020-2021 BCIB applications are due February 5, 2021 at 4:00 PM EST.
Submit to:Butler County Infrastructure Bank Advisory Boardc/o Mark Gordon, Chief of Economic Development and Planning County of Butler124 West Diamond StreetPO Box 1208Butler, PA 16003-1208
Email electronic submissions to Mark Gordon.
Note that email submissions cannot exceed 10MB and attachments need to be in Word, Excel or PDF format. ZIP files will not be accepted. You may submit multiple emails. If more than one email is necessary to complete the submission, please use the Subject Line of the email to label the number of submissions (e.g. "Springfield Municipality - BCIB Application 1 of 3").
Applicants must submit either one (1) electronic copy OR one (1) hard copy of the completed application with all required attachments and exhibits as provided in the program guidelines by the deadline stated above.
Applicants should check the Butler County website for the current schedule of dates and deadlines applicable to the BCIB loan program cycle. The BCIB loan approval date is subject to change at any time as may be determined by the BCIB Advisory Board and Butler County Board of Commissioners.
The BCIB Advisory Board intends to follow the process described below. Applicants are encouraged to check the Butler County website for the current schedule of important dates and deadlines applicable to the current BCIB loan Program cycle and approval process:
Following the public meeting, Applicants will receive written communication from the County advising of the loan approval/denial, as applicable.
Upon approval of an application, a commitment letter will be issued to the Applicant that outlines the terms and conditions of the BCIB loan. The commitment letter must be signed and returned within 30 days or the offer may be withdrawn. Following the acceptance of an offer by the Applicant and the satisfactory completion of applicable special conditions, a loan closing will be scheduled. Loan recipients will be required to complete Local Government Unit Debt Act proceedings or have an applicable guarantor complete such proceedings. The County and the Applicant will finalize the terms of the loan agreement, including collateral, repayment schedule, and the process for use of any non-BCIB funds towards project construction. If the Turnkey option is utilized, the County’s consultants will certify that the expenses during construction were incurred in accordance with the final design plans approved by the Applicant and the County. If the Finance-Only option is utilized, the Applicant’s consultant(s) will be required to make this certification.
All vendor contracts will be executed between the Applicant and vendor. During the project activity period, the County will receive and review project costs to confirm eligibility and determine the appropriate release of loan funds in accordance with an agreed upon schedule for the release of loan proceeds. The Applicant will be responsible for loan payments to the County in accordance with the terms and conditions of the BCIB loan documents executed at closing.
Yes. In addition to administrative costs associated with securing the financing, the following eligible project costs can also be included in the BCIB loan: