73-10-23 - Loans for water systems -- Board of Water Resources authority -- Procedure.
73-10-23. Loans for water systems -- Board of Water Resources authority --Procedure.
(1) The Board of Water Resources is authorized to make loans to cities, towns,metropolitan water districts, water conservancy districts, improvement districts, specialimprovement districts, or special service districts within the state for the acquisition orconstruction of new or existing water systems or the improvement or extension of those systemsfrom funds appropriated for the purpose of this chapter.
(2) (a) Cities, towns, or districts which participate in this program shall submit anapplication for funds to the Board of Water Resources.
(b) The application may request a loan to cover all or part of the cost of an eligibleproject.
(c) Requests for loans shall be submitted in a form and shall include information as theboard prescribes.
(3) (a) The board shall establish criteria for determining eligibility for loans and shalldetermine appropriate priorities among projects.
(b) Funds received from the repayment of loans shall be added to this special fund and beavailable for additional loans under the administration of the board.
(c) In determining priorities for eligible projects, the board shall consider:
(i) probable growth of population due to actual or prospective economic development inan area;
(ii) possible additional sources of state and local revenue;
(iii) opportunities for expanded employment;
(iv) present or potential health hazards;
(v) water systems which do not meet minimum state standards;
(vi) cities, towns, or districts which have insufficient water to meet current demands;
(vii) feasibility and practicality of the project;
(viii) per capita cost of the project;
(ix) per capita income of the residents in the area;
(x) the borrowing capacity of the city, town, or district and its ability to sell bonds in theopen market; and
(xi) the availability of federal funds for the project.
(4) (a) The board shall consult with the Governor's Advisory Council on CommunityAffairs in the establishment of priorities but that advice is not binding upon the board.
(b) If an application is rejected, the board shall notify the applicant stating the reasons forthe rejection.
(5) The Board of Water Resources shall review the plans and specifications for theproject prior to approval and may condition approval and the availability of funds on assurancesthe board considers necessary to ensure that the proceeds of the loan will be used to pay the costof the project and that the project will be completed.
(6) Any loan shall specify the terms for repayment and may be evidenced by generalobligation bonds, revenue bonds, special assessment bonds, or other bonds or obligations legallyissued by the appropriate city, town, metropolitan water district, water conservancy district,improvement district, special improvement district, or special service district and purchased bythe board pursuant to the authority for the issuance that exists at the time of the loan.
(7) (a) Upon approval of an application, the board shall advise the applicant and may
provide funds as a loan to cover all or part of the costs of eligible projects.
(b) Costs of an eligible project may include all costs of acquisition and construction aswell as costs incurred for preliminary planning to determine the economic and engineeringfeasibility of a proposed project, the engineering, architectural, legal, fiscal, and economicinvestigations and studies, surveys, designs, plans, working drawings, specifications, procedures,and other action necessary to the project and its financing; the cost of erection, building,acquisition, modification, improvement, or extension of water system facilities and the inspectionand supervision of the construction of such facilities.
(8) No loan shall include any project costs for which the applicant receives federalfinancial assistance, other than federal loans which must be repaid by the applicant.
Amended by Chapter 306, 2007 General Session