73-10c-4.2 - Drinking water projects -- Loan criteria and requirements -- Process for approval.
73-10c-4.2. Drinking water projects -- Loan criteria and requirements -- Processfor approval.
(1) The Drinking Water Board shall review the plans and specifications for a drinkingwater project before approval of any loan and may condition approval on the availability of loanfunds and on the assurances that the Drinking Water Board considers necessary to ensure thatloan funds are used to pay the drinking water project costs and that the drinking water project iscompleted.
(2) (a) Each loan shall specify the terms for repayment, with the term, interest rate orrates, including a variable rate, and security as determined by the Drinking Water Board.
(b) The loan may be evidenced by general obligation or revenue bonds or otherobligations of the political subdivision.
(c) Loan payments made by a political subdivision shall be deposited in the DrinkingWater Security Subaccount as described in Section 73-10c-5.
(d) The loans are subject to the provisions of Title 63B, Chapter 1b, State FinancingConsolidation Act.
(3) In determining the priority for a drinking water project loan, the Drinking WaterBoard shall consider:
(a) the ability of the political subdivision to obtain money for the drinking water projectfrom other sources or to finance such project from its own resources;
(b) the ability of the political subdivision to repay the loan;
(c) whether or not a good faith effort to secure all or part of the services needed from theprivate sector of the economy has been made; and
(d) whether or not the drinking water project:
(i) meets a critical local or state need;
(ii) is cost effective;
(iii) will protect against present or potential health hazards;
(iv) is needed to comply with minimum standards of the federal Safe Drinking WaterAct, or any similar or successor statute;
(v) is needed to comply with the minimum standards of Title 19, Chapter 4, SafeDrinking Water Act, or any similar or successor statute; and
(vi) meets any other consideration considered necessary by the Drinking Water Board.
(4) In determining the cost effectiveness of a drinking water project the Drinking WaterBoard shall:
(a) require the preparation of a cost-effective analysis of feasible drinking water projects;
(b) consider monetary costs, including the present worth or equivalent annual value of allcapital costs and operation, maintenance, and replacement cost; and
(c) ensure that the alternative selected is the most economical means of meetingapplicable water quality or public health requirements over the useful life of the facility whilerecognizing environmental and other nonmonetary considerations.
(5) A loan may not be made for a drinking water project that is not in the public interestas determined by the Drinking Water Board.
Amended by Chapter 382, 2008 General Session