Section R317-101-4 - Loan, Credit Enhancement, Interest Buy-Down, and Hardship Grant Consideration PolicyA. Water Quality Board Priority Determination In determining the priority for financial assistance the Board shall consider:
1. the ability of the political subdivision to obtain funds for the wastewater project from other sources or to finance such project from its own resources; 2. the ability of the political subdivision to repay the loan or other project obligations; 3. whether a good faith effort to secure all or part of the services needed from the private sector through privatization has been made; and 4. whether the wastewater project: a. meets a critical local or state need; c. will protect against present or potential health hazards; d. is needed to comply with minimum standards of the Federal Water Pollution Control Act Amendments of 1972, U.S.C. 1251 et. Seq., or any similar or successor statute; e. is needed to comply with the minimum standards of Title 19, Chapter 5 Utah Water Quality Act, or any similar or successor statute; f. is designed to reduce or prevent the pollution of the waters of this state; or g. furthers the concept of regionalized sewer service; 5. the priority point total for the project as determined by the Board from application of the current Utah State Project Priority System Rule R317-100; 6. the overall financial impact of the proposed project on the citizens of the community including direct and overlapping indebtedness, tax levies, user charges, impact or connection fees, special assessments, etc., resulting from the project, and anticipated operation and maintenance costs versus the median adjusted gross household income of the community; 7. the readiness of the project to proceed; 8. Consistency with other funding source commitments that may have been obtained for the project; and 9. other criteria that the Board may deem appropriate. B. Water Quality Board Financial Assistance Determination. The amount and type of assistance offered will be based on the following considerations: 1. for loan consideration, the estimated annual cost of sewer service to the average residential user should not exceed 1.4% of the median adjusted gross household income from the most recent available State Tax Commission records. Consideration will also be given to the applicant's unemployment data, population trends, and the applicant's level of contribution to the project. For hardship grant consideration, exclusive of advances for planning and design, the estimated annual cost of sewer service for the average residential user should exceed 1.4% of the median adjusted gross household income from the most recent available State Tax Commission records. The Board will also consider the applicant's level of contribution to the project; 2. the estimated, average residential cost, as a percent of median adjusted gross household income, for the proposed project should be compared to the average user charge, as a percent of median adjusted gross household income, for recently constructed projects in the State of Utah; 3. maximizing return on the security account while still allowing the project to proceed; 4. local political and economic conditions; 5. cost effectiveness evaluation of financing alternatives; 6. availability of funds in the security account; 7. environmental need; and 8. other data and criteria the Board may deem appropriate. C. The Executive Secretary may not execute financial assistance for NPS projects totaling more than $1,000,000 per fiscal year unless directed by the Board. Utah Admin. Code R317-101-4
Amended by Utah State Bulletin Number 2015-20, effective 9/24/2015