Services | Energy
Public Agencies Taking The Lead On Environmental Sustainability
Public Agencies are taking the lead by using energy and resources more efficiently, and in the state of California, agencies can enter into negotiated agreements to reduce energy consumption pursuant to Government Code Section 4217 et seq. Beyond improving building energy efficiency, agencies are encouraged to adopt environmentally sustainable practices, such as lighting and ballast retrofits, energy management systems, and upgraded energy efficient HVAC Systems. Public agencies are also encouraged to finance and implement their energy efficiency improvements through performance contracting.
Energy Efficiency Projects
The California public programs office has developed programs that promote energy efficiency in the local government, schools, hospitals, agriculture, industrial, and water treatment sectors of California. With regard to lighting and ballast retrofits, the key is to maintain uniformity and light quality while simultaneously boosting efficiency.
Municipalities statewide continue to see an increase in facility operations costs, with typical energy costs being three to ten percent of annual operating expenses. For this reason, communities who have lighting and HVAC systems that are old, worn and reaching the end of their life cycles, are making necessary upgrades.
At Municipal Finance, we are experienced in financing these types of upgrades and retrofits. Contact Us to find out more about Energy Efficiency Project financing.
Renewable Energy Projects
Faced with increasing pressure to cut costs and comply with emerging emissions reductions goals, public agencies — federal, state, regional, and local — are leading the charge toward sustainability. The renewable energy industry is becoming an increasingly vital component of California’s economy, including solar panels at public facilities, wind turbines, and cogeneration systems at wastewater treatment plants and landfills. By improving energy efficiency and purchasing clean, reliable, and renewable energy, public agencies stand to benefit in many ways.
One of the major challenges, however, regarding public sector adoption of renewable energy, is the ability to secure funds to cover the high upfront costs associated with the purchase and installation of these technologies.
Although purchasing a renewable energy system outright is generally considered to be the most cost effective strategy in the long-term, the high capital costs are often prohibitive. At Municipal Finance, we are experienced in working with public agencies in the funding of such projects. Contact Us to find out more about how we can help you.
About Our Services
At Municipal Finance, our services are highly personalized and always reflective of the responsibilities associated with public transactions. Each of our professionals has vast and diverse experience in creating comprehensive financing strategies.
What Are The Usual Forms Of Financing?
Depending on any constitutional debt limitation and statutory authority pertinent to the agency, the financing may take the form of either a lease/purchase, loan or installment sale agreement. In any instance, the financing will be structured as a fully-amortized obligation. The agency assumes all risks associated with the use and ownership of the property being financed.
What Can Be Financed?
All forms of essential use, governmental purpose property or infrastructure including:
Public Buildings, Schools, Modular Buildings
Fire Stations, Fire Trucks & Rescue Equipment
Police Stations & Police Cars
Schools & School Buses
Computer Systems & Software
Telephone Systems
Construction Equipment & Communications Equipment
Medical Equipment & Office Equipment
Energy Management Systems & Retrofit Projects
Electrical Generating Equipment
Water/Wastewater Treatment Plants
Water and Sewer Lines & Water Meters
Roads and Bridges
Unimproved Land
How Do Municipal Finance’s Programs Work?
MFC handles all aspects of the transaction, from presentation of financing alternatives to administration of vendor/contractor payments. Documentation preparation, credit review and funding administration are all performed by MFC. This results in sole performance accountability by MFC and limited demands on the agency’s staff.
What Are The General Financing Parameters?
Financing amounts between $50,000 to $10,000,000.
3 to 25 year amortization terms.
Payments structured monthly, quarterly, semiannually or annually.
Flexible prepayment provisions.
What Steps Must The Agency Take?
Provide financial statements and other supporting credit data.
Adopt resolution approving financing.
Solicit document review and legal opinion from agency’s legal counsel.
Authorize the issuance of insurance certificates.
Execute documentation.
Authorize disbursement of payments to vendors/contractors.
Certify to the receipt and acceptance of the property.