The Deal:

Ridgeline Municipal Strategies, LLC served as a municipal advisor to the City of San Juan Bautista, CA ("City") on a $10,268,000 Wastewater USDA Loan Financing ("Financing"). The Financing was structured as two series of wastewater revenue bonds that were placed with the United States Department of Agriculture, Rural Utility Service and provided funding for a 7.5-mile sewer forcemain that connected the City to a regional wastewater treatment plant ("Project").

In addition to the Financing, Ridgeline helped the City secure over $10.5 million in grant funds from the USDA, EPA, and the State of California.

The City:

Surrounded by the rolling hills of San Benito County, CA, the City provides wastewater services to a community of over 2,000 people. The City was founded in 1797 and is a home to one of the California’s historic missions.

The Scope:

Ridgeline provided the following services to the City:

• Overview of financing options and preparation of financing strategy
• Preparation and submittal of grant and earmark application requests
• Preparation and submittal of applications to and negotiations with the USDA
• Coordination of the USDA due diligence and compliance process
• Municipal advisory services on obtaining interim construction financing
• Financing documents review
• Financing process coordination

The Outcome:

The City retained Ridgeline to provide municipal advisory services on the Financing. Ridgeline helped the City develop a financing strategy for the $25 million wastewater system compliance project.

After considering various financing strictures, the City selected to pursue a USDA financing option due to the inclusion of supplementary grant funds, low interest rate, and the 40-year financing term. The Financing allowed the City to minimize the interest cost and annual payment amounts for the optimal utilization of ratepayer funds.

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About Ridgeline

Ridgeline Municipal Strategies, LLC is an independent registered municipal advisory and financial consulting firm assisting cities and special districts with financial planning and financing for infrastructure, facilities, and equipment.