Projects such as stormwater management, erosion and sediment control, stream corridor restoration, septic system repair and agricultural runoff control could be considered for loans. The criteria of water quality benefits and the capacity to repay are the most important factors in project qualification. Proceeds of mini-bonds could be designated for specific programs or activities, such as stream restoration and forest buffers. Unfortunately, the cost of issuing mini- bonds can be a significant barrier to their use. These costs include the cost of bond council, charges by rating agencies, and the administrative costs of printing and distributing official statements.
Administrative costs are the largest component due to the large number of potential bond holders.
Stormwater Utilities A stormwater management utility is a form of a special assessment district. A special assessment district is an independent government entity formed to finance governmental services for a specific geographic area. They can range in size from a city block to a multi-jurisdictional arrangement. Special districts focus the costs of enhanced services on the beneficiaries of those services by separating benefited taxpayers from general taxpayers. Special districts have the power to levy taxes, fees and special assessments in order to pay for the debt incurred in developing the service as well as to pay for the ongoing upkeep of the project.