Introduction -

Managers of water and wastewater utilities face complex financial challenges. The purpose of this guidebook is to provide an overview of issues relating to the financing of water and wastewater projects in general and financing with obligations the interest on which is excluded from gross income for federal income tax purposes (referred to herein as “tax-exempt bonds”) in particular. Although tax-exempt bonds are generally issued by or for a municipal entity or a department of a municipal entity (in either case referred to herein as the “agency”) to finance capital improvements to the agency’s system, tax-exempt financing is available for other purposes and, under some circumstances, may be available to finance projects for private companies or governmental projects with very significant private participation.

This guidebook is intended for general informational purposes and cannot anticipate the needs and circumstances of each or any particular agency or company. Public agencies and private companies considering the financing of water or wastewater projects should consult with expert counsel early in the process.

Orrick, Herrington & Sutcliffe LLP has been ranked first in the country as bond counsel for most of the last two decades and has a long history of participation, in a wide variety of roles, in water and wastewater financings. In addition to bond counsel, disclosure counsel, underwriter’s counsel and lender’s counsel services, Orrick can provide legislative services through its governmental affairs practice and can provide financial advisory, arbitrage rebate calculation and continuing disclosure services through Orrick’s wholly owned subsidiary BLX Group (formerly Bond Logistix LLC).