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Financing for Environmental Compliance

Planning Process Step Six: Complete a Community-wide Financial Analysis

Once the team has determined the capital asset requirements and calculated the corresponding costs of the project, that information should be analyzed in relation to the community’s overall projects and financial commitments. Questions that might be helpful include:

There are three main municipal credit-rating agencies

These agencies conduct a financial risk analysis by reviewing a city's financial documents. The ratings are then used by potential investors to estimate the credit worthiness of a specific city or city sector. The lower the rating the higher the cost of borrowing. The 2002 article from Standard & Poor's details this further "Top 10 Ways to Improve or Maintain a Municipal Credit Rating." (PDF) (5 pp, 40K, About PDF)

Once the team and municipal officials understand the project costs, benefits and municipal impacts, the team can review alternative finance mechanisms to fill the funding gap.

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Next Step: Select Financing Options

Previous Step: Conduct a Rate Analysis

Compliance Assistance | Compliance Monitoring | Compliance Incentives

 


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