Proudly serving the Olympic Valley since 1950 –
previously named Squaw Valley Mutual Water Company

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Project Financing

Financing of the System Infrastructure Improvements

The United States Department of Agriculture (USDA) finances OVMWC’s system infrastructure improvements.

USDA LOAN #1

In November 2011, the USDA awarded OVMWC a loan collateralized by OVMWC’s real property in the amount of $3,931,716 to finance the 2010–2013 construction projects. OVMWC is repaying the loan over 40 years from 2011 to 2051 in semiannual installments for principal and interest of $96,456. The loan bears an interest rate of 3.75%.  Loan balance on June 30, 2023 was $3,014,809.

PROJECT FINANCING – 2020-2024

In 2020 OVMWC signed a promissory note with CoBank to finance the 2020–2024 construction project that is classified as a USDA Rural Development Project. The note’s terms are:

  • Collateralized by OVMWC’s real property.
  • Between May 2020 and July 2024, OVMWC may draw funds from the note in an aggregate principal amount not to exceed $4,946,660 as approved by the USDA.
  • OVMWC draws amounts when needed to pay for construction expenses. CoBank must receive USDA approval prior to extending the funds requests by OVMWC.
  • Note balance on June 30, 2023 was $3,527,233.
  • OVMWC pays monthly interest to CoBank on the outstanding balance at a rate of the monthly LIBOR resetting weekly plus 1.75%. At OVMWC’s discretion, interest payments may be added to the note’s balance.
  • When the construction ends in late 2023, the USDA will pay the note’s balance and OVMWC will be subject to USDA Loan #2 (explained below).

USDA LOAN #2

OVMWC signed an agreement with the USDA stipulating that at the end of the USDA Rural Development Project financed by CoBank (see above), the USDA will pay the balance of the CoBank promissory note and obligate OVMWC to a 40-year term loan at an interest rate of the then prevailing interest rate or 3.5%, whichever is lower. The repayment schedule starts six months after the USDA pays CoBank.