Vermont Municipal Bond Bank Reduces Time for Undersigning Loans

Coordination with the Vermont Municipal Bond Bank (VMBB) and the Water Infrastructure Financial Management team is necessary to streamline the process of Memorandum of Understanding (MOU) to undersign loans with municipalities. Process bottlenecks slow down the issuance of loans to needy municipalities and overlapping effort contributes to redundancy.

A lean event was conducted in December 2018 to work through these challenges.


  • Reduce overlapping work effort between state and VMBB.
  • Speed processing of loan agreements and payment requests.
  • Revise and approve the MOU between DEC and VMBB which includes a new fee schedule, new implementation of municipality payment request approval, audit management by DEC, monthly account reconciliation oversight, and contingent loan approval.


The format that was decided on was a percentage of the fund balance, divided by 12 due to only servicing once per year compared with VEDA + additional underwriting costs.

The big issues of fee schedule and how the two groups interact has been largely resolved by this entire process.