By Linda S. Bailiff, OPWC Director
The Ohio Public Works Commission administers the State Capital Improvement Program which finances local government infrastructure projects – roads, bridges, water supply systems, wastewater treatment systems, stormwater collection, and solid waste. It’s supported by bonds originally authorized in 1987 and reauthorized by Ohio’s voters three times. The most recent ballot issue passed with 65% of the vote allowing the issuance of $1.875 billion in general obligation bonds over the course of 10 years of which there are two remaining funding rounds not yet solicited. This authority provided $175 million annually for the first five years and $200 million for the remaining five years.
What largely makes this program successful is the local government project selection model. The state’s 88 counties are divided into 19 regional districts overseen by committees ranging in size from seven members in a single county district in northeast Ohio to 30 members in an 11-county district in Southern Ohio. Committee membership is statutorily defined including county commissioners and engineers, city and village mayors, township trustees, and a private sector member experienced in local infrastructure planning and economic development.
The districts receive annual allocations according to a population-based formula. Of each allocation, 90 percent is for grants and the remaining 10 percent for zero-interest loans and local debt support. Loan repayments are returned to the originating district to include with the next round. Districts solicit project applications from their local governments and regional water and sewer districts. Applications are vetted, rated, and ranked according to a district’s methodology based on criteria defined in the Law. Emphasis is on repair and replacement and the evaluation includes health and safety concerns, age and condition of the existing infrastructure, project readiness, cost, and the ability and effort of the recipient to assist in financing.
Prior to the district allocations, two set asides are taken. Ten percent, $20 million, is used for the Small Government Program. This program permits villages and rural townships with populations less than 5,000 for a second chance to compete for funding if not selected at the district level. Up to six percent, $12 million, is provided to the statewide emergency program. This first-come, first-served program is administered by the Commission director for projects resulting from a catastrophic event that pose an immediate threat to public health and safety and require immediate action. Funds tend to go quickly especially in the late winter and spring when heavy rains cause road slips in the state’s hilly regions.
In addition to the regional selection process, the program’s popularity and efficiency are due to local responsibility for project delivery. Once a project agreement is executed, the recipient is responsible for design, bidding and awarding, and seeing the project constructed to completion. The Commission pays the bills, either directly to the vendors or as reimbursement to the recipient, typically within a week of receipt of the disbursement request, which is submitted through the Commission’s web portal, Public WorksWise.
This bond program helps communities accomplish projects that would likely not be feasible without assistance. We fund more than 400 projects annually. Many Commission projects are part of a larger infrastructure effort to make overall system improvements. For every $1 dollar in Public Works bond funds approximately $3.55 is leveraged in local funds and other sources.
We’ve funded over 20,000 projects statewide since the program’s inception. The health, safety, and quality of life of our residents and our state’s economic future relies on the ability to invest in and provide critical infrastructure – safe roads and bridges, clean water, and available sewer services. The OPWC staff work to make the program and process as simple as possible to benefit as many Ohioans as possible.
For more information about our programs, visit www.pwc.ohio.gov.
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