Public Finance Authority

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Water/Wastewater Pooled Bond Program

Cities, counties, towns, and districts can finance or refinance water and wastewater projects through the Public Finance Authority (PFA) at AA rates. PFA will bundle eligible borrower obligations and issue bonds with additional security provided by a bond insurer—Assured Guaranty Municipal Corp. (AGM).


Cities, counties, towns and districts will benefit from:

  • Low cost borrowing available through a public offering
  • Simple financing requirements and reduced ongoing reporting burdens
  • Fast and certain access to co-funding or total funding


The following criteria serve as a guide to potential applicants:

  • Sole provider in service area
  • Facilities serve more than 1,000 connections or more than 5,000 total population
  • Independent rate setting authority
  • Loan amounts ranging from $2,000,000 to $30,000,000
  • Senior pledge of gross or net system revenues

Borrowing Requirements

After PFA reviews and approves an application, the borrower will authorize and execute a loan or other form of agreement with an opinion from the borrower’s counsel. Through the agreement, the borrower must agree to:

  • Maintain rates and charges to generate net revenues at least 120% of annual debt service
  • Pay 1/10 of annual debt service as monthly deposits to PFA’s trustee
  • Provide ongoing disclosure of financial status and material events in a format provided by PFA
  • Provide additional security through a reserve surety with AGM and/or a cash funded reserve

Borrowers must be approved by AGM prior to the issuance of any insurance policy and nothing herein shall constitute an offer to sell or solicitation of any offer to buy any insurance policy.


For inquiries or to be on the mailing list, please contact:

Tom Innis
Piper Jaffray & Co.
50 California Street, Suite 3100
San Francisco, CA 94111
T +1 415 616-1635

Greg Swartz
Piper Jaffray & Co.
2525 E. Camelback Road, Suite 950
Phoenix, AZ 85016
T +1 602 808-5426

In providing the information contained herein to a municipal entity, Piper Jaffray is not recommending an action to any municipal entity or obligated person recipient, is not acting as an advisor to any municipal entity or obligated person and does not owe a fiduciary duty pursuant to Section 15B of the Exchange Act to any municipal entity or obligated person with respect to the information and material contained in this communication. Piper Jaffray is acting for its own interests, and any municipal entity or obligated person recipient of this information should discuss any information and material contained in this communication with any and all internal or external advisors and experts that the municipal entity or obligated person deems appropriate before acting on this information or material. Piper Jaffray Companies (NYSE: PJC) is a leading investment bank and asset management firm. Securities brokerage and investment banking services are offered in the U.S. through Piper Jaffray & Co., member SIPC and FINRA; in Europe through Piper Jaffray Ltd., authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Jaffray Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Asset management products and services are offered through five separate investment advisory affiliates—U.S. Securities and Exchange Commission (SEC) registered Advisory Research, Inc., Piper Jaffray Investment Management LLC, PJC Capital Partners LLC and Piper Jaffray & Co., and Guernsey-based Parallel General Partners Limited, authorized and regulated by the Guernsey Financial Services Commission.

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