Current through Register Vol. 54, No.43, October 26, 2024
(a) A grant will be considered only when the Board determines that the financial condition of the recipient indicates that repayment of a loan is unlikely and that the recipient will not be able to proceed with the project without a grant. If the Board decides to award a grant, the Board will attempt to mix the grant funds with loan funds.(b) In determining whether a grant should be offered, and, if so, what proportion of the financial assistance offered should constitute a grant and what portion should constitute a loan, the Board will consider the ultimate effect that financing a project's costs will have on the rates that customers will have to pay. A rate increase will be compared with local incomes and ability to pay in assessing the need for a grant. In doing this assessment, the Board may consider factors including, but not limited to, the following: (1) The median household income of the system's service area.(2) Existing and projected user fees.(3) The financial condition of the applicant, including revenues, expenses, debt structure, equity position, available collateral and financial condition of an owner or parent organization.(4) The social, economic and financial condition of the community served by the project in comparison with communities in similar socio-economic circumstances.(5) The inability of the applicant to secure grant funding from other sources.(c) The Board may limit individual grant awards to whatever amount it deems desirable.(d) A grant will be made subject to terms and conditions the Board establishes.