The SCIP/LTIP Infrastructure Program
The Eastgate Regional Council of Governments serves as the administrative home for the District 6 Public Works Integrating Committee (D6PWIC). There are 19 District Integrating Committees covering all 88 Ohio Counties. In Mahoning and Trumbull Counties, the D6PWIC develops the methodology to administer the State Capital Improvement Program (SCIP) and the Local Transportation Improvement Program (LTIP) and to annually evaluate the Pre Applications submitted by the various units of local government, and submit a slate of projects to the Ohio Public Works Commission (OPWC) for their concurrence and subsequent funding. The OPWC is responsible for administering these two infrastructure programs, SCIP and LTIP on a statewide basis.
State Capital Improvement Program
The State Capital Improvement Program was created in 1987 and renewed in 1995 and 2005 by amendments creating Sections 2k, 2m and 2p, Article VIII of the Ohio Constitution. These Constitutional provisions allow the State to use its general revenues as debt support to issue general obligation bonds up to $120 million annually and then up to $150 million beginning July 2011. Eligible applicants are counties, cities, villages, townships, and water and sanitary districts (ORC 6119 or 6117). Eligible projects are for improvements to roads, bridges, culverts, water supply systems, wastewater systems, storm water collection systems, and solid waste disposal facilities.
Funding is provided through grants, loans, and loan assistance or local debt support. Grants are available for up to 90% of the total project costs for repair/replacement, and up to 50% for new/expansion. Loans can be provided for up to 100% of the project costs. Grant/loan combinations are also available. The term of the loan cannot exceed the useful life of the project, or thirty years, whichever is less. The minimum term is one year. The District will recommend the rate of interest for each loan in whole percent increments from 0 to 3 percent. Once the project is completed a final amortization schedule is provided requiring payments every January and July until the term of the loan expires. Loans may be paid in full with no prepayment penalty. Loan Assistance is a grant that pays for the interest on a public or private loan during the construction period plus one year. This assistance can be used on bond/note issuances or loans initiated up to twelve months prior to the date of the Project Agreement. OPWC may also pay a one-time infusion of funds called a Credit Enhancement to enhance an applicant’s ability to secure affordable debt. The OPWC may pay the premium for a bond insurance policy which would improve the applicant’s credit or bond rating. This category of funding may be applied for as part of a project that is a grant, loan or grant/loan combination but needs to be a separate application for administrative purposes.
A portion of the SCIP funds is set aside for two specific programs that are administered directly by OPWC rather than the districts. The $15 million Small Government Program is a “second chance” for selected village and township projects that have not been funded through the Districts, and the $3 million Emergency Program is for those projects that address immediate health and safety threats and cannot wait for the normal annual funding cycle. For more information on these programs, please go to the OPWC website, www.pwc.state.oh.us.
Local Transportation Improvement Program
The Local Transportation Improvement Program was created by the legislature in 1989 and currently provides approximately $52 million in gasoline tax receipts annually (the equivalent of one cent per gallon). Since the use of such receipts is constitutionally limited to roads and bridges only counties, cities, villages and townships may apply for these funds. Applicants may apply for grants up to 100% of the project cost.
If you have any questions or need additional information, please call or e-mail the D6PWIC Liaison, Mr. Tim Yova at 330-779-3800 ext. 106 or firstname.lastname@example.org.
Program Year 2013 Methodology