Section 20. Adm 35.05 (2) is repealed and recreated to read:
Adm 35.05 (2) The department may only disburse financial assistance in accordance with a financial assistance agreement.
Section 21. Adm 35.05 (3) is repealed.
Section 22. Adm 35.06 (intro.) is amended to read:
Adm 35.06 (intro.) 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: Section 23. Adm 35.06 (1) is renumbered Adm 35.06 (1) (intro.) and amended to read:
Adm 35.06 (1) (intro.) The department shall establish periodically review, and may periodically change, the market interest rate used to calculate the applicable rate under s. NR 162.07 (4) for each project loan, taking into account the following factors: . (1) The market interest 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. set by the department under this section shall be the market interest rate for the purpose of ss. 281.58(12) and 281.61(11), Stats. The department may consider any of the following factors when establishing or changing the market interest rate: Section 24. Adm 35.06 (1) (a) to (e) are created to read:
Adm 35.06 (1) (a) Municipal bond market indexes
(b) Comparable bond market transactions.
(c) Expectations for bond market changes to the next planned periodic market interest rate review.
(d) Effective interest rates for environmental improvement fund revenue obligations issued under s. 281.59(4), Stats. (e) Efficient administration of the environmental improvement fund.
Section 25. Adm 35.06 (2) is repealed and recreated to read:
Adm 35.06 (2) The department may review and change the market interest rate at any time as necessary to aid the purposes of ss. 281.58, 281.59, and 281.61. Section 26. Adm 35.06 (3) is repealed.
Section 27. Adm 35.06 (3) (intro.) and (3) (a) and (b) are created to read:
Adm 35.06 (3) (intro.) The department may set multiple market interest rates applicable to different types of obligations, including the following:
(3) (a) Obligations of different final or average maturity.
(b) Taxable obligations as compared to tax-exempt obligations.
Section 28. Adm 35.07 (title) is amended to read:
Adm 35.07 (title) Accountability for project loan financial assistance.
Section 29. Adm 35.07 (1) (intro.), (1) (a) to (c), (2), and (3) are amended to read:
Adm 35.07 (1) (intro.) A financial assistance agreement shall require a municipality that receives recipient of a project loan shall financial assistance to do the following:
(1) (a) Maintain project accounts in accordance with the financial assistance agreement generally accepted government accounting principles., including accurate, complete and current records of project costs, sources and uses of project funds, documentation as to the eligibility of project costs, records of refunds, rebates and other credits relating to the project and all payments that constitute the dedicated source of revenue.
(b) Provide, if available, the most recent audited financial statements at the time of application upon request from the department and at least annually during the term of the financial assistance agreement while the recipient has an obligation outstanding.
(c) Take no action which would to reduce the amount available from adequacy of the dedicated source of revenue established for repayment of the project in accordance with ss. s. 281.58 (14) (b) 1. or 281.61 (8m) (a), Stats. (2) The department may require or perform financial audits prior to, during or at the end of the term of the project loan obligation.
(3) A municipality recipient that receives financial assistance for a project designated as federal equivalency by the department of natural resources provided in whole or in part from the federal capitalization grant described in the Federal Water Quality Act of 1987, 33 USC 1381 to 1387, shall comply with the Federal federal Single Audit Act, 31 USC 7501 to 7507, and OMB Office of Management and Budget Uniform Guidance. circular A 128. A municipality that receives financial assistance from other sources may, at its option, commission a single audit in accordance with the Federal Single Audit Act, OMB circular A 128 and the state's single audit guidelines. All reasonable, allocable costs of single audits are eligible costs to the extent provided in s. NR 162.05. Section 30. Adm 35.08 is repealed and recreated to read:
Adm 35.08 Financial assistance amendments. Neither the recipient nor the department may enter into an amendment to a financial assistance agreement, except in accordance with the terms of the financial assistance agreement. The recipient may not amend the obligation, except in accordance with the terms of the obligation.
Section 31. Adm 35.09 is amended to read:
Adm 35.09 Variances. The department may approve a variance from requirements of this chapter when the department determines that the variance is essential to provide financial assistance within the scope and intent of the program environmental improvement fund, or that the variance is in the best interest of the state. In approving a variance, the department may take into account such factors as good cause, circumstances beyond the control of the recipient or the department and financial hardship. A request by a municipality recipient for a variance shall include a description of the nature of the variance and the circumstances leading to the request.
Section 32. Effective Date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.
