Section 58.01.12.010 - FINANCIAL AND MANAGEMENT CAPABILITY ANALYSISNo loans shall be awarded for projects unless the applicant has demonstrated and certified that it has the legal, technical, managerial, and financial capabilities as provided for in these rules to ensure construction, operation and maintenance, and to repay principal and interest which would be due on a loan.
01.Information Needed. Before an application will be considered complete, the applicant must submit all necessary information on a form prescribed by the Department along with substantiating documentation. The information may include, but not be limited to, demographic information of the applicant, estimated construction or implementation costs, annual operating costs, and information regarding the financing of the project, including the legal debt limit of the applicant and the existence and amount of any outstanding bonds or other indebtedness which may affect the project.02.Incorporated Nonprofit Applicants. a. In addition to all other information required to be submitted by these rules, an incorporated nonprofit applicant must demonstrate to the satisfaction of the Department by its articles of incorporation and/or bylaws, that:i. The corporation is nonprofit and lawfully incorporated pursuant to Chapter 3, Title 30, Idaho Code;ii. The corporation is authorized to incur indebtedness to construct, improve or repair wastewater or drinking water facilities and/or implement water pollution control nonpoint source projects;iii. The corporation is authorized to secure indebtedness by pledging corporation assets, including any revenues raised through a user charge system;iv. The corporation exists either perpetually or for a period long enough to repay a project loan; andv. The corporation is capable of raising revenues sufficient to repay a loan.b. The Department may impose conditions on the making of a facility loan or water pollution control nonpoint source project to an incorporated nonprofit applicant which are necessary to carry out the provisions of these rules and the provisions of Chapter 36 or 76, Title 39, Idaho Code.03.Cost Allocation. An applicant proposing a wastewater, drinking water or nonpoint source project designed to serve two (2) or more entities must show how the costs will be allocated among the participating entities. Such applicants must provide an executed intermunicipal service agreement which, at a minimum, incorporates the following information: a. The basis upon which the costs are allocated;b. The formula by which the costs are allocated; andc. The manner in which the cost allocation system will be implemented.04.Waivers. The requirement in Section 010 may be waived by the Department if the applicant can demonstrate:a. Such an agreement is already in place;b. There is documentation of a service relationship in the absence of a formal agreement; orc. An applicant exhibits sufficient financial strength to continue the project if one (1) or more of the applicants fails to participate.Idaho Admin. Code r. 58.01.12.010