The Washington Township Water Authority (WTWA) is a not for profit water utility near Bloomington, Indiana. Construction plans for the southern addition of Interstate 69 bisected the utility and would require WTWA to relocate 11 miles of pipeline. While INDOT would reimburse the utility, there would be a significant lag between the time work was completed and when INDOT made reimbursement.
How LWG helped
As the consultant and accounting firm for WTWA over the past 20 years, WTWA asked us for a strategy to fund the work and stay current on operational funding during the process.
LWG worked with the Indiana Finance Authority and secured an immediate working capital loan and arranged for long term financing associated with laying new pipe on the rerouted portion of the system.
Without additional funding WTWA would face crippling cash flow issues. With interim and long-term financing, the authority was able to upgrade the system while rerouting the lines and is now in a significantly stronger financial position. They are also able to continue to update more of the infrastructure and are working on a new water tower.
“Our long term working relationship and LWG’s reputation helped us get much needed funding through the state revolving fund and work through the regulatory commission in very short time. LWG’s understanding of our situation allowed us to get this process done in just three months, in comparison, some cases can go as long as a year;” said Mark Schmitter, director, Washington Township Water Authority.
A directive to relocate a major portion of the water authority’s pipelines could have financially destroyed WTWA. LWG has decades of experience in working with the Indiana Utility Regulatory Commission (IURC) which allowed us to effectively navigate the process to get approval on debt and the approval on the rates necessary to keep WTWA in business.
It is those long-standing relationships with our clients that assures them that we can assist them through unique situations. As in the case with WTWA, they knew of our expertise and trusted us to help make a difficult situation a positive outcome for all.