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Register February 2002 No. 554
Chapter Adm 35
CLEAN WATER FUND
Adm 35.01   Purpose.
Adm 35.02   Definitions.
Adm 35.03   Certification.
Adm 35.04   Credit and security.
Adm 35.05   Disbursement of project loan proceeds.
Adm 35.06   Interest rates.
Adm 35.07   Accountability for project loan.
Adm 35.08   Financial assistance agreement amendments.
Adm 35.09   Variances.
Ch. Adm 35 Note Note: Chapter Adm 35 was created as an emergency rule effective March 18, 1991. Corrections made under s. 13.93 (2m) (b) 7., Stats., Register, July, 1999, No. 523.
Adm 35.01 Adm 35.01 Purpose. The purpose of this chapter is to establish rules under s. 281.59, Stats., for the administration of a program to provide financial assistance to municipalities for certain costs incurred in abatement of pollution of the waters of the state.
Adm 35.01 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91.
Adm 35.02 Adm 35.02 Definitions. In this chapter, the following terms shall have the respective meanings:
Adm 35.02(1) (1) "Clean water fund" means the fund established under s. 25.43, Stats., for the purpose of providing financial assistance to municipalities for certain costs incurred in abatement of pollution of waters of the state.
Adm 35.02(2) (2) "Department" means the department of administration.
Adm 35.02(3) (3) "Financial assistance" means a project loan or a grant to a municipality.
Adm 35.02(4) (4) "Market interest rate" means interest at the effective rate, as determined by the department, for revenue obligations issued by the state to fund a project loan or a portion of a project loan.
Adm 35.02(5) (5) "Municipality" has the meaning set forth in s. 281.59 (1) (c), Stats.
Adm 35.02(6) (6) "Project" means planning, design, or construction of a water pollution abatement project.
Adm 35.02(7) (7) "Project loan" means a loan to a municipality of money in the clean water fund to pay for costs of a project. "Project loan" includes a capital cost loan under s. 281.59 (9) (a), Stats., a project loan that constitutes financial hardship assistance under s. 281.58 (13), Stats., a project loan for a transition project under s. 281.59 (13), Stats., and other project loans.
Adm 35.02 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91; correction in (7) made under s. 13.93 (2m) (b) 7., Stats., Register February 2002 No. 554.
Adm 35.03 Adm 35.03 Certification.
Adm 35.03(1)(1) In this section, "Certification" means a determination by the department that a municipality meets the conditions of receiving financial assistance under s. 281.59 (9) (am) and (b), Stats.
Adm 35.03(2) (2) A notice of financial assistance commitment shall not be issued if the department determines that the municipality is unlikely to be able to repay the project loan. The department may take into consideration the following factors when determining whether to provide certification:
Adm 35.03(2)(a) (a) The type and amount of the dedicated source of revenue available to repay the project loan.
Adm 35.03(2)(b) (b) Debt service payments on the project loan, including but not limited to, amortization, actual or estimated interest rate and the anticipated disbursement schedule.
Adm 35.03(2)(c) (c) Demographic information, including but not limited to, population, income, property values and employment.
Adm 35.03(2)(d) (d) Services provided and costs incurred by the municipality.
Adm 35.03(2)(e) (e) Revenues available to the municipality.
Adm 35.03(2)(f) (f) Information that is included in financial statements of the municipality for the past 3 fiscal years or that would be required to be included if such statements were prepared in accordance with generally accepted accounting principles applicable to government units, and an auditor's opinion regarding the financial statements, including exceptions in such opinion or failure to provide such opinion.
Adm 35.03(2)(g) (g) Any credit rating assigned to the municipality by a nationally recognized bond rating agency, whether or not such rating is published.
Adm 35.03(2)(h) (h) Terms and conditions contained in any resolution or indenture of trust for obligations issued by the state to fund project loans.
Adm 35.03(2)(i) (i) Any relevant financial information which may have an impact on a municipality"s ability to repay the project loan.
Adm 35.03(3)(a)(a) The department may not issue a certification unless the municipality demonstrates to the satisfaction of the department that the municipality has the financial capacity to assure sufficient dedicated sources of revenue to operate and maintain the project for its useful life and to pay the debt service, including funding and maintaining any debt service reserve, on its project loan. The department may consider the effect of proposed financial hardship assistance or assistance provided by another entity in making a determination of financial capacity.
Adm 35.03(3)(b) (b) The department may require an opinion of counsel or bond counsel, acceptable to the department, to the effect that the obligation of the municipality to repay the project loan is valid and enforceable and that interest on the project loan is excluded from gross income for federal income tax purposes.
Adm 35.03(4)(a)(a) The department may not issue a certification unless the municipality establishes one or more dedicated sources of revenue that the department deems sufficient for repayment of the project loan.
Adm 35.03(4)(b) (b) In this subsection, "dedicated source of revenue" includes any of the following:
Adm 35.03(4)(b)1. 1. For a general obligation, an irrevocable pledge of ad valorem taxes.
Adm 35.03(4)(b)2. 2. For a revenue obligation, a pledge of net revenues available to the utility, including user fees, a pledge of special assessments, municipal payments, other income, or a combination thereof.
Adm 35.03(4)(b)3. 3. For a metropolitan sewerage district organized under ss. 200.21 to 200.65, Stats., a general obligation pledge of ad valorem taxes.
Adm 35.03 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91; correction in (4) (b) 3. made under s. 13.93 (2m) (b) 7., Stats., Register February 2002 No. 554.
Adm 35.04 Adm 35.04 Credit and security.
Adm 35.04(1)(1) The municipality's obligation to repay a project loan may be in the form of a general obligation or a revenue obligation.
Adm 35.04(2) (2) The department may require the project loan to the municipality to be in any form which the department in its discretion determines will not, during the term of the project loan, substantially and adversely affect the municipality's ability to borrow for general operations and capital costs other than the project.
Adm 35.04(3) (3) In administration of its powers and duties under s. 281.59 (11) (b), Stats., the department shall deduct, as a first charge against state payments due the municipality, any amounts due to the clean water fund.
Adm 35.04 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91.
Adm 35.05 Adm 35.05 Disbursement of project loan proceeds.
Adm 35.05(1)(1) Except as provided in this section, proceeds of a project loan shall be distributed by the department to the municipality upon presentation of a request for disbursement from the municipality and written certification from the department of natural resources that the municipality is in compliance with all applicable requirements of ch. NR 162 and the financial assistance agreement. The form and procedure of the request shall be specified in the financial assistance agreement.
Adm 35.05(2) (2) Except when the department determines that there will be no adverse impact on the clean water fund, disbursements shall be no greater than, nor earlier than, the amounts and dates mutually determined by the municipality and the department and stated in the financial assistance agreement.
Adm 35.05(3) (3) Disbursements may be suspended or withheld if the municipality has failed to comply with project objectives or any of the terms, conditions or reporting requirements of the financial assistance agreement. Disbursements may also be suspended or held upon the issuance of a stop-work order under s. NR 162.20. Disbursements shall resume upon correction of the violation or upon amendment of the financial assistance agreement.
Adm 35.05 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91.
Adm 35.06 Adm 35.06 Interest rates. The department shall establish the market rate used to calculate the applicable rate under s. NR 162.07 (4) for each project loan, taking into account the following factors:
Adm 35.06(1) (1) The market rate used to calculate the rate for a particular project loan or portion of a project loan shall be at the effective interest rate of the funds, as determined by the department, that are used to fund all or a portion of each project loan. When a current market rate cannot be determined from an actual bond sale, the department may estimate such market rate based on market comparables and market indices.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.