Register February 2002 No. 554
Adm 35.01   Purpose.
Adm 35.02   Definitions.
Adm 35.03   Certification.
Adm 35.04   Credit and security.
Adm 35.07   Accountability for project loan.
Adm 35.09   Variances.
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(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(6) (6) "Project" means planning, design, or construction of a water pollution abatement project.
Adm 35.03 Adm 35.03 Certification.
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)(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)(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(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(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(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 35.05(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 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(2) (2) The market rate shall be calculated for each obligation used to fund loans from the clean water fund. If an individual project receives disbursements derived from the proceeds of more than one obligation issued by the state, then the rate applicable to that project may be calculated according to the market rates of the corresponding sources of the disbursements made for that project.
Adm 35.06(3) (3) Notwithstanding subs. (1) and (2), the rate for a project or a portion of a project that qualifies under s. 281.59 (13), Stats., shall be 2.5% per year.
Adm 35.06 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91.
Adm 35.07 Adm 35.07 Accountability for project loan.
Adm 35.07(2) (2) The department may require or perform financial audits prior to, during or at the end of the term of the project loan.
Adm 35.07(4) (4) The department may rely on a commissioned audit unless it finds that the audit was not performed in accordance with state or federal auditing standards. The department may perform, or commission others to perform an additional audit or audits to supplement work done in a single audit, to the extent it deems necessary.
Adm 35.07 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91.
Adm 35.08 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91.
Adm 35.09 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91.
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Published under authority of s. 35.93, Stats. Updated on the first day of each month. Entire code is alwaycurrent. The date shown on each chapter is the date the chapter was last published.