© 2009 MWH All Rights Reserved City and Private Equity Sharing Introducing the CAPES™ model.
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Transcript of © 2009 MWH All Rights Reserved City and Private Equity Sharing Introducing the CAPES™ model.
![Page 1: © 2009 MWH All Rights Reserved City and Private Equity Sharing Introducing the CAPES™ model.](https://reader035.fdocuments.us/reader035/viewer/2022080916/56649e425503460f94b358b7/html5/thumbnails/1.jpg)
© 2009 MWH
All Rights Reserved
City and Private Equity SharingIntroducing the CAPES™ model
![Page 2: © 2009 MWH All Rights Reserved City and Private Equity Sharing Introducing the CAPES™ model.](https://reader035.fdocuments.us/reader035/viewer/2022080916/56649e425503460f94b358b7/html5/thumbnails/2.jpg)
Government-Owned Pension Plans!
Do we need a new model?
• Is it possible to build a true public-private partnership that shares ownership?
• How can we develop the billions we need for infrastructure development from debt financing alone?
• Can we develop a model that allows the billions of Private Investment Dollars that want to invest in this infrastructure?
![Page 3: © 2009 MWH All Rights Reserved City and Private Equity Sharing Introducing the CAPES™ model.](https://reader035.fdocuments.us/reader035/viewer/2022080916/56649e425503460f94b358b7/html5/thumbnails/3.jpg)
City and Private Equity Sharing (CAPES™)
•A partnership model where private and public sectors truly share in ownership and responsibility
•Provide a city the opportunity to monetize a portion of its water and wastewater assets
•Retain attributes of a city-owned system that allow it to participate in grant programs and issue tax-exempt debt
•Foster efficiency and economy to pay a return to both the City and third-party owners
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Overview of new organization – CAPES™ model
CustomersCustomers
NewCorporation
NewCorporation
Transfer assets and debts
Receive corporate shares & cash
Annual return to city
MinorityShareholderOwnership
MinorityShareholderOwnership
Up to 49%
Sale proceeds
CityOwnership
CityOwnership
State Utilities Commission Sets Rates
State Utilities Commission Sets Rates
Annualreturn toshareholders
4
Sale of equity in new corporation retains majority
ownership and control for the City
Tax Exempt Debt, SRF,and Grants
Tax Exempt Debt, SRF,and Grants
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CustomersCustomers
NewCorporation
NewCorporation
Transfer assets and debts
Receive corporate shares & cash
Annual return to city
Preferred Stock(Mimics Debt)
Preferred Stock(Mimics Debt)
Up to 49%
Sale proceeds
CityEnterprise Fund
CityEnterprise Fund
5
There are multiple variations to handle rate setting in the state
PUC, or through alternate means.
Overview of new organization – CAPES™ model
Annualreturn toshareholders
Tax Exempt Debt, SRF,and Grants
Tax Exempt Debt, SRF,and Grants
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City and Private Equity Sharing (CAPES™)
• Richard W. Splete, New York• Lead Finance Consultant• [email protected]