15A NCAC 01L .0703. FINANCIAL CONSIDERATIONS

Maximum Value‑‑35 Points:

(1)           Financing of the Project (Select One) - (Maximum Points‑‑10):

(a)           Applicant has applied for but not received a commitment for funding from a federal agency for a portion of the project costs.                                                                                        5 points

(b)           Applicant has funds available or has received a commitment for funding from a federal agency, or bonds have been authorized to cover project costs over and above the state grant or loan funds requested.                                                                                                          10 points

(c)           The loan funds requested cover all the estimated project costs.                                                10 points

(2)           Fiscal Responsibility of the Applicant (Maximum Points‑‑10).  The value of this categorical element shall be the sum of the points awarded Items (a) to (c) of this Paragraph:

(a)           The applicant has followed proper accounting and fiscal reporting procedures as reflected in the applicant's most recent report of audit, and the applicant is in substantial compliance with the provisions of the general fiscal control laws of the state.                                  2 points

(b)           The applicant water system is fiscally self-sufficient.                                                  2 points

(c)           Estimated revenues will provide funds for proper future operation, maintenance and administration, reasonable expansion of the project and estimated annual principal and interest requirements for the project debt plus annual principal and interest requirements on the outstanding debt incurred for existing facilities.                                                 6 points

In determining the points to be awarded this categorical element, the Division of Environmental Health may seek the comments of the Secretary of the Local Government Commission.

(3)           Financial Need of the Applicant (Maximum Points‑‑15).  The financial need of the applicant will be determined by the following formula:

 

Points =  150 (Total Bonded Indebtedness plus Total Estimated Project Cost)

Total Appraised Property Valuation

 

"Total bonded indebtedness" includes all outstanding bonds as of the first day of the quarter in which the project application is eligible for consideration for the assignment of a priority but shall not include bonds already authorized or sold to finance the proposed project.

"Total appraised property valuation" refers only to real property valuation based on the most recent appraisal for tax purposes as officially recorded in the county or counties in which the service area of the proposed project is to be located.

"150" is used in the formula to provide point values for this categorical element.

 

History Note:        Filed as a Temporary Rule Eff. March 8, 1994, for a period of 180 days or until the permanent rule becomes effective, whichever is sooner;

Authority S.L. 1998, c. 132, s. 10;

Eff. July 1, 1994.