Okla. Admin. Code § 785:50-8-5
Current through Vol. 42, No. 7, December 16, 2024
Section 785:50-8-5 - REAP grant priority point system(a)Basis of priority system and formula.(1)General description. The priority system consists of a mathematical equation rating the qualified entities and the proposed project in accordance with the requirements of state law by means of a formula awarding points for each criterion used in the evaluation. The maximum point total under the system is one hundred twenty-five(125) . The Board may consider each month, and in order from the highest rating, those applications awarded point ratings of 40 or more priority points. If the Board determines that the qualified entity with the highest point rating cannot promptly proceed with the project due to delays, including but not limited to those caused by legal problems, engineering problems, feasibility problems or availability of other funding sources, the Board may pass over consideration of such application then proceed to consider in order the next highest rated application. Applications which are bypassed shall retain their ratings and thus remain eligible for further consideration. Applications preliminarily determined by Board staff to have point ratings of applicant submits additional information showing changed circumstances within 120 days after the date of staff's determination, and such information improves the applicant's preliminary point rating. (2)Statutory criteria. The basis of the priority formula has been developed from the enacting legislation. The primary statutory criteria are: (A) There shall be a higher priority for any city or town with a population less than one thousand seven hundred fifty (1,750) according to the Census Population than for any jurisdiction with a greater population; and (B)Among other cities or towns, those municipalities having relatively weaker fiscal capacity shall have a priority for project funding in preference to other municipalities [62:2003]. In order to give a priority evaluation to each applicant, the Board shall evaluate all applications according to the fiscal capacity criteria set forth in this Section. (3)Total priority points. Total priority points will be calculated and awarded for individual projects. Therefore, qualified entities will be required to complete separate applications for each project for which grant funds are requested. Priority lists compiled and published by other Oklahoma State agencies and/or seniority dates of applications submitted shall be utilized to decide ties in point totals among qualified entities. (b)Priority formula for eligible entities other than school districts and counties.(1)Formula. The following formula has been devised to rank grant applications: T = P + WR + I + MHI+ FP + N + AR + BP + PG + S, Where: (A) T = Total of priority points (C) WR = Water and sewer rate structure (D) I = Indebtedness per customer (E) MHI = Median household income (F) FP = Applicant's ability to finance project (H) AR = Amount of grant requested (I) BP = Project benefit to other systems (J) PG = Previous grant assistance (2)Explanation. Each of these criteria are explained below: (A)Population (P). Municipalities which have a population of less than 1,750 according to the latest Census Population shall be given 55 priority points. Rural water or sewer districts which have less than 525 non-pasture customers shall be given 55 points. (B)Water and Sewer rate structure (WR).(i) For systems providing water service only, points are figured according to the same scale set forth in Section 50-7-5(b)(2)(B)(i). (ii) For systems providing both water and sewer services, points are figured according to the same scale set forth in Section 50-7-5(b)(2)(B)(ii). (iii) For systems providing sewer service only, points are figured according to the same scale set forth in Section 50-7-5(b)(2)(B)(iii). (iv) The Board will deduct 3 points from the total of the Water and Sewer Rate Structure ranking for any system which charges a flat water rate (unmetered) without regard to the amount of water used, and 2 points for a decreasing block rate which lowers the cost per 1000 gallons for customers using larger amounts of water. No points will be added or subtracted for systems using a fixed rate per 1,000 gallons rate. Entities who dedicate sales tax for water and/or sewer improvements will be awarded 1 additional point. Under this category the maximum number of points is 13 and the minimum is -3 points. (C)Indebtedness per customer (I). The indebtedness per customer ranking is calculated by taking the applicant's monthly requirements for debt service on debt incurred for water and/or sewer system purposes and dividing it by the number of customers served. (i) If the indebtedness per customer is $20.00 or greater, the applicant shall be given 10 points. (ii) If the indebtedness per customer is $17.50 to $19.99, the applicant shall be given 9 points (iii) If the indebtedness per customer is $16.00 to $17.49, the applicant shall be given 8 points. (iv) If the indebtedness per customer is $14.50 to $15.99, the applicant shall be given 7 points. (v) If the indebtedness per customer is $13.00 to $14.49, the applicant shall be given 6 points. (vi) If the indebtedness per customer is $11.50 to $12.99, the applicant shall be given 5 points. (vii) If the indebtedness per customer is $10.00 to $11.49, the applicant shall be given 4 points. (viii) If the indebtedness per customer is $8.50 to $9.99, the applicant shall be given 3 points. (ix) If the indebtedness per customer is $7.00 to $8.49, the applicant shall be given 2 points. (x) If the indebtedness per customer is $5.50 to $6.99, the applicant shall be given 1 point. (xi) If the indebtedness per customer is less than $5.50, the applicant shall be given 0 points. (D)Median household income (MHI). The median household income is calculated according to the most current United States Decennial Census or American Community Survey data available. (i) The county median figure for median household income will be used in cases where data for the applicant's service area is not available. (ii) Points for this MHI criterion are awarded according to the scale set forth in Section 50-7-5(b)(2)(E)(ii). (E)Ability to finance project (FP).(i) The maximum points possible under this criterion for the ability of the applicant to finance the project without assistance from the state is 12. (ii) The FP ranking gives a standardized account of the amount the existing water/sewer rates would have to be raised in order for the applicant to finance the project through a loan. A standard interest rate and term of 5% for 25 years is assumed. The cost per customer per month is calculated using the following formula: FP = AR (0.0710)/(12)(C), Where: (I) FP = Estimate of the amount monthly water/sewer rates would have to be raised to finance the amount of grant requested for the project. (II) AR = Amount of grant requested. (III) 0.0710 = Annual rate factor for a 25 year loan at 5%. (IV) 12 = Number of months per year. (V) C = Number of customers. (iii) In cases where the applicant's current revenues exceed expenses by a large margin, the Board will appropriately adjust the (AR) figure to accurately represent the applicant's ability to finance the project. (iv) Points in the FP ranking, based upon the cost per customer per month calculated as set forth in (ii) of this subparagraph, are awarded as follows: (I) If the FP is $10.00 or greater, the applicant shall be given 12 points. (II) If the FP is $8.00 to $9.99, the applicant shall be given 11 points. (III) If the FP is $6.00 to $7.99, the applicant shall be given 10 points. (IV) If the FP is $5.00 to $5.99, the applicant shall be given 9 points. (V) If the FP is $4.00 to $4.99, the applicant shall be given 8 points. (VI) If the FP is $3.00 to $3.99, the applicant shall be given 7 points. (VII) If the FP is $2.00 to $2.99, the applicant shall be given 6 points. (VIII) If the FP is $1.75 to $1.99, the applicant shall be given 5 points. (IX) If the FP is $1.50 to $1.74, the applicant shall be given 4 points. (X) If the FP is $1.25 to $1.49, the applicant shall be given 3 points. (XI) If the FP is $1.00 to $1.24, the applicant shall be given 2 points. (XII) If the FP is $0.75 to $0.99, the applicant shall be given 1 point. (XIII) If the FP is less than $0.75, the applicant shall be given 0 points. (F)Need (N). An applicant who is subject to an enforcement order issued by a governmental agency with environmental jurisdiction shall be given 5 priority points for a proposed project which will remedy the violation out of which the order arose if the order specifies a project construction start date which is on or before June 30 of the Board's current fiscal year for funding REAP grants. (G)Amount of grant requested (AR). Points under this category for amount of grant requested are determined as follows: (i) If the AR is $140,001 to $150,000, the applicant shall be given -5 points. (ii) If the AR is $130,001 to $140,000, the applicant shall be given -4 points. (iii) If the AR is $120,001 to $130,000, the applicant shall be given -3 points. (iv) If the AR is $110,001 to $120,000, the applicant shall be given -2 points. (v) If the AR is $100,001 to $110,000, the applicant shall be given -1 point. (vi) If the AR is $100,000, the applicant shall be given 0 points. (vii) If the AR is $80,000 to $99,999, the applicant shall be given 1 point. (viii) If the AR is $60,000 to $79,999, the applicant shall be given 2 points. (ix) If the AR is $40,000 to $59,999, the applicant shall be given 3 points. (x) If the AR is $20,000 to $39,999, the applicant shall be given 5 points. (xi) Any portion of an AR that is more than $150,000 shall be denied. (H)Project benefit to other systems (BP). If the applicant's project will benefit other adjacent systems as well as applicant's or result in or lead to consolidation of systems, an additional five (5) priority points will be included in the total of priority points assigned to the application. (I)Previous grant assistance (PG). No qualified entity shall receive more than $150,000 in REAP grant assistance in any twelve (12) month period. For purposes of this subparagraph a political subdivision and all its public trusts and similar subordinate entities together shall be treated as one and the same qualified entity; provided, rural water or sewer districts shall not be construed to be subordinate entities of counties unless the effect would be to make multiple grants to substantially the same entity and/or service area. If a qualified entity has received one (1) or more REAP grants from the Board in the past, points shall be deducted from the application according to all of the following provisions that apply, provided points shall not be deducted from any such REAP grant which was funded 10 or more years prior to the date of Board action on the pending application, and has been subject to Board audit: (i) If the qualified entity has received one (1) REAP grant in the preceding twelve (12) month period, the application will be given -8 points. (ii) If the qualified entity has received more than one (1) REAP grant in the preceding twelve (12) month period, the application will be given -10 points for each REAP grant so received. (iii) If the qualified entity has received one (1) REAP grant more than twelve (12) months in the past, the application will be given -5 points. (iv) If the qualified entity has received two (2) REAP grants more than twelve (12) months in the past, the application will be given -8 points. (v) If the qualified entity has received three (3) REAP grants more than twelve (12) months in the past, the application will be given -10 points. (vi) If the qualified entity has received four (4) REAP grants more than twelve (12) months in the past, application will be given -12 points. (vii) If the qualified entity has received five (5) or more REAP grants more than twelve (12) months in the past, the application will be given -14 points. (J)Sustainability. Points will be awarded for an applicant's sustainability and long range planning as follows: (i) Have and have implemented a Fiscal Sustainability Plan that meets the requirements of the Board Staff shall be awarded 10 points (ii) Have but have not implemented a Fiscal Sustainability Plan that meets the requirements of the Board Staff shall be awarded 6 points (iii) Applicant is willing to develop and implement a Fiscal Sustainability Plan prior to funding that meets the requirements of the Board Staff shall be awarded 3 points (c)Priority formula for school districts and counties.(1) School districts created under Article V of the School Code, 70 O.S. 1991, §5-101 et seq., and counties are political subdivisions of the State, and therefore are eligible for financial assistance under the Board's REAP grant program. (2) In evaluating and prioritizing grant applications from school districts and counties, similar criteria to those applied to municipalities and rural water districts will be utilized. (3) In developing a priority formula for school district and county applicants, the primary criteria are average daily membership (for schools only), fiscal capacity, need, amount requested, and previous grant assistance. (4) The following formula has been devised to rank REAP grant applications by counties and school districts: T = ADM + LT + BI + MHI + FP + N + AR + PG, Where: (A) T = Total of priority points (B) ADM = Average daily membership (C) Lt = Local tax levies (D) BI = Bonded indebtedness (E) MHI = Median household income of population within the school district or area of county to be served (F) FP = Applicant's ability to finance project (H) AR = Amount of grant requested (I) PG = Previous grant assistance (5) The criteria MHI, FP, N, AR and PG are the same as that set forth in (b) of this Section. The criteria ADM, LT and BI are explained as follows: (A)Average daily membership (ADM). School districts with an average daily membership of less than 525 students shall be given 55 priority points. (B)Local tax levies (LT). Points awarded under this category for local tax levies are based on the total amount of mills levied, as follows: (i) If the mills are 95 to 100; the applicant shall be given 13 points. (ii) If the mills are 90 to 94.99, the applicant shall be given 11 points. (iii) If the mills are 85 to 89.99, the applicant shall be given 10 points. (iv) If the mills are 80 to 84.99, the applicant shall be given 8 points. (v) If the mills are 70 to 79.99, the applicant shall be given 6 points. (vi) If the mills are 60 to $69.99, the applicant shall be given 4 points. (vii) If the mills are 55 to 59.99, the applicant shall be given 2 points. (viii) If the mills are 50 to 54.99, the applicant shall be given 1 point. (ix) If the mills are 45 to 49.99, the applicant shall be given 0 points. (x) If the mills are 40 to 44.99, the applicant shall be given -1 point. (xi) If the mills are less than 40, the applicant shall be given -2 points. (C)Bonded indebtedness (BI).(i) Priority points for Bonded Indebtedness are as follows: (I) If the percentage is 95% to 100%, the applicant shall be given 10 points. (II) If the percentage is 90% to 94.99%, the applicant shall be given 8 points. (III) If the percentage is 80% to 89.99%, the applicant shall be given 7 points. (IV) If the percentage is 75% to 79.99%, the applicant shall be given 6 points. (V) If the percentage is 70% to 74.99%, the applicant shall be given 5 points. (VI) If the percentage is 65% to 69.99%, the applicant shall be given 4 points. (VII) If the percentage is 60% to 64.99%, the applicant shall be given 3 points. (VIII) If the percentage is 55% to 59.99%, the applicant shall be given 2 points. (IX) If the percentage is 50% to 54.99%, the applicant shall be given 1 point. (X) If the percentage is 45% to 49.99%, the applicant shall be given 0 points. (XI) If the percentage is 40% to 44.99%, the application shall be given -1 point. (XII) If the percentage is 30% to 39.99%, the applicant shall be given -2 points. (XIII) If the percentage is less than 30%, the applicant shall be given -3 points. (ii) A deduction of one (1) point from the indebtedness ranking total will be made for applicants with 75% of existing debts financed at rates of 5% or less, and one (1) point will be added if 75% of existing debts are financed at rates greater than 10%. Okla. Admin. Code § 785:50-8-5
Added at 13 Ok Reg 3733, eff 7-18-96 (emergency); Added at 14 Ok Reg 173, eff 10-24-96 (emergency); Added at 14 Ok Reg 2788, eff 7-1-97 ; Amended at 15 Ok Reg 635, eff 11-11-97 (emergency); Amended at 15 Ok Reg 2881, eff 7-1-98 ; Amended at 16 Ok Reg 2691, eff 7-1-99 ; Amended at 17 Ok Reg 2772, eff 7-1-00 ; Amended at 18 Ok Reg 2247, eff 7-1-01 ; Amended at 20 Ok Reg 2617, eff 7-11-03 ; Amended at 23 Ok Reg 3086, eff 7-27-06 ; Amended at 24 Ok Reg 2453, eff 6-25-07 ; Amended at 25 Ok Reg 1473, eff 5-27-08 ; Amended at 30 Ok Reg 984, eff 6-13-13
Amended by Oklahoma Register, Volume 31, Issue 24, September 2, 2014, eff. 9/12/2014Amended by Oklahoma Register, Volume 32, Issue 24, September 1, 2015, eff. 9/11/2015Amended by Oklahoma Register, Volume 33, Issue 24, September 1, 2016, eff. 9/11/2016Amended by Oklahoma Register, Volume 36, Issue 22, August 1, 2019, eff. 8/11/2019