Financing for Environmental Compliance
Step Eight: Create and Communicate the Financing Plan
By completing the prior steps, all the information necessary to create a project financing plan has been collected. A written financing plan will help team members define the project goals, allow the various tasks to be monitored during the course of the project, and help the team members communicate the plan to and obtain buy-in from all project stakeholders.
The financing plan should be kept as simple as possible. This will reduce the opportunity for confusion and encourage stakeholder support. Federal and State government financing contacts are available to discuss and help evaluate the financing plan as necessary.
The project financing plan should include, at a minimum, the following information:
1. Project Goals and Objectives
- Financial goals
- Relevant policies
2. Technical Solution and Scope
- Project description
- Construction schedule
- Total cost
3. Funding Information
- Debt capacity
- Current and expected rate plans
- Other committed municipal financial resources
- External funding sources – Grants, Loans, Bonds, SEPs
- Debt repayment plan
4. Project Approvals
- Construction approvals and contracts
- Funding contracts, bond approvals
- Additional legal requirements
The team should strongly consider providing periodic updates to community members during the course of the project. Town meetings can be convened to provide project updates and to ask for feedback. Project support can be increased by providing examples of specific financing challenges and the strategies designed to address those challenges.
Previous Step: Select Financing Options