Wis. Admin. Code Department of Natural Resources NR 162.10

Current through October 28, 2024

Section NR 162.10 - Loan interest rate

The department shall calculate interest rates in accordance with s. 281.58 (12), Stats., and all of the following:

(1) INTEREST RATES.

(a) For costs of projects or portions of projects described in ss. NR 162.03 (1) (a), (b), and (d), 162.03 (2) and (3), 162.04 (1) (b), 162.22, and 162.23 (1) (a) and (b), the interest rate shall be the interest rate specified in s. 281.58 (12) (a), Stats.

(b) For project costs sanctioned under s. NR 162.08 (4) (b) for noncompliance with requirements for solicitation of DBEs, the interest rate shall be the market interest rate.

(c) For project costs under s. NR 162.03 (1) (c), the department shall determine the appropriate interest rate in accordance with s. 281.58 (8) (h) and (12) (a) 4, Stats.

(2) PROJECT INTEREST RATE CALCULATION.

(a) If all of the eligible costs of a scored project are described under only one paragraph under sub. (1), the interest rate shall be the rate stated in the applicable section of s. 281.58 (12), Stats. If a scored project contains eligible costs described under more than one paragraph under sub. (1) and s. 281.58 (12), Stats., specifies interest rates for the categories that are different from each other, a composite interest rate shall be computed for the scored project under par. (b).

(b) The composite interest rate shall be computed as follows:

RC = (RT 1)(PR 1) + (RT 2)(PR 2) + (RT 3)(PR 3)

where:

RC . . . is the composite interest rate for the project.

RT 1 . . . is the interest rate stated under s. 281.58 (12) (a) 1 a., b., or c., Stats., for the municipality based on its population as described in s. NR 162.003 (55) and median household income as determined under par. (d).

RT 2 . . . is the market interest rate as defined under s. 281.58 (1) (cg), Stats.

RT 3 . . . is the interest rate established under s. 281.58 (12) (a) 5, Stats., for projects that provide facilities to receive or store septage, or provide treatment capacity for septage, as defined in s. 281.58 (1) (cv), Stats.

PR1 . . . is the percentage of the project under s. NR 162.03 (1) (a), (b), and (d) and (2) that is eligible for a subsidized rate and being financed by the CWFP, and under s. NR 162.03 (1) (c) if the municipality is not a violator of an effluent limitation as defined in s. 281.58 (1) (e), Stats.

PR2 . . . is the percentage of the project being financed by the CWFP that is eligible under s. NR 162.04 (1) (b), and under s. NR 162.03 (c) if the municipality is a violator of an effluent limitation as defined in s. 281.58 (1) (e), Stats.

PR3 . . . is the percentage of the project being financed by the CWFP that is eligible under s. NR 162.03 (1) (a) 1. and eligible for a zero percent interest rate under s. 281.58 (12) (a) 5, Stats.

(c) The interest rate shall be based on the market rate in effect at the time the municipality passes a bond resolution to secure the loan from the CWFP.

(d) The department shall determine median household income for purposes of determining the loan interest rate as established in s. 281.58 (12) (a) 1 a. to c., Stats., as follows:

1. If the municipality is a place, as defined for purposes of data collection by the U.S. bureau of the census, including a city, village, or census designated place, or the municipality is a county or a minor civil division, the department shall obtain the most recent 5-year-data median household income figure published for the municipality by the U.S. bureau of the census prior to the department's publishing of the annual project priority list.

Note: The department uses U.S. bureau of the census municipal incomes as derived from the American Community Survey and published annually in the 5-year survey data. At the time of writing of this administrative code, the U.S. bureau of the census is not collecting income data during the decennial census. The U.S. bureau of the census does not publish data for all types of municipalities eligible for CWFP financial assistance.

2. The department may require a municipality for which the U.S. bureau of the census does not publish median household income data to provide information to assist the department in determining a median household income for the municipality for purposes of this chapter. The information required and used by the department may include any of the following:

a. The number of residential users served by the municipality.

b. A map showing the municipal boundaries, and the number of residential users served by or the population of the municipality within each town or county for municipalities that cross town or county boundaries.

3. If the municipality is a town sanitary district or public inland lake protection and rehabilitation district, the municipality may supply a median household income provided by the U.S. bureau of the census, along with documentation of how the median household income was determined. Whether the median household income is initially determined by the department or supplied by the municipality for the department's approval, this median household income of the municipality shall be derived from the same ACS data release as that being used by the department for the fiscal year applicable to the funding cycle for which the application is submitted and shall be one of the following:

a. A median household income derived by requesting a custom tabulation of income data at the census block level from the ACS.

Note: To obtain a custom tabulation, the municipality will likely need to compare a map showing the boundaries of the municipality to a census block map and determine which census blocks contain any portion of the municipality. The municipality would then submit the appropriate census block numbers to the U.S. bureau of the census (see https://www.census.gov/programs-surveys/acs/data/custom-tables.html) with a request for a custom tabulation of a median household income figure for that set of identified blocks only.

b. The median household income of the census tract or block group that encompasses the municipality. If the municipality falls within 2 or more census tracts or block groups, the median household income shall be weighted by the population of the municipality that resides within each census tract or block group.

c. The median household income of the minor civil division within which the municipality is located. If the municipality falls within 2 or more minor civil divisions, the median household income shall be weighted by the population of the municipality that resides within each minor civil division.

d. An average median household income calculated by: determining the published median household income of each member municipality if the applicant municipality, such as a sanitary district or metropolitan sewerage district, is made up of multiple municipalities, such as cities, villages, and census designated places; weighting each of those median household incomes by the percentage that the population of the individual municipality is of the total population; summing the individual weighted median household incomes; and dividing the sum by the total number of municipalities that are members of the applicant municipality.

4. If the sewer service area of the treatment works within the boundaries of the municipality is different than the municipality's boundaries, the municipality may choose to follow the custom tabulation procedure as described under subd. 3. a. and submit the result to the department to use in lieu of the median household income obtained by the department as described under subd. 1.

Wis. Admin. Code Department of Natural Resources NR 162.10

CR 03-027: cr. Register November 2003 No. 575, eff. 12-1-03.

Amended by, CR 14-043: cr. Register June 2015 No. 714, eff.7/1/2015.

Adopted by, CR 22-045: cr. Register October 2023 No. 814, eff. 11/1/2023