Section 404.39 - What factors will Reclamation consider in evaluating my capability to pay 25 percent or more of the construction costs?Reclamation will consider the following factors:
(a) Economic factors for the project area, relative to the state average, including:(2) Median household income; and(b) The ability of the project sponsor to raise tax revenues or assess fees such as user fees and ad valorum taxes or issue bonds;(c) The strength of the project sponsor financial statements in comparison to other similar entities over the previous 4 years, including a review of:(1) Current (includes cash and inventory) and non-current assets (property, plants etc.);(2) Net Assets (total assets minus total liabilities);(3) Changes to net assets;(4) Operating revenues (water and power sales);(5) Operating expenses (variable costs and depreciation, maintenance and repair);(6) Cash flow from operating activities (positive value from water sales minus payments to supplies and employees);(7) Current (current bonds payable and accounts payable) and non-current liabilities (long term debt payable);(8) Outstanding debts and all other financial obligations;(9) Collateral/equity as appropriate;(10) Cash flows from capital and related financing activities (negative value from principle paid on bonds and interest payments);(12) Any non-operating revenues and expenses;(d) Funding commitments from non-Federal sources, other than the non-Federal project sponsor, including resources committed by state, county, or local governments;(e) The existing cost of water and the cost to develop new water supplies in the region; and(f) The impact of the proposed project on water rates;(g) The projected impact of the proposed project on the non-Federal project sponsor's ability to raise or generate revenues;(h) The non-Federal project sponsor's financial history including their past performance on repaying loans and other debts; and(i) Any other financial means of the non-Federal project sponsor that is not captured in this subsection.