281.58(9m)(e)1.1. Except as provided under
par. (f) and
sub. (13), if a sufficient amount of subsidy is available under
s. 281.59 (3) (d) for the municipality's project, based on the calculation under
s. 281.59 (3) (i), when the department approves the application under
par. (a), the department of administration shall allocate that amount to the project.
281.58(9m)(e)2.
2. If a sufficient amount of subsidy is not available under
s. 281.59 (3) (d) for the municipality's project when the department approves the application under
subd. 1., the department shall place the project on a list for allocation when additional subsidy becomes available.
281.58(9m)(f)
(f) If the amount approved under
s. 281.59 (3) (d), the amount available under
s. 20.866 (2) (tc) or the amount available under
s. 281.59 (4) (f) for a biennium is 85% or less of the amount of present value subsidy, general obligation bonding authority or revenue bonding authority, respectively, requested for that biennium in the biennial finance plan submitted under
s. 281.59 (3) (bm) 1., all of the following apply:
281.58(9m)(f)1.
1. The department shall establish a funding list for each fiscal year of the biennium that ranks projects of municipalities that submit financial assistance applications under
sub. (9) (a) no later than the June 30 preceding the fiscal year in the same order that they appear on the priority list under
sub. (8e).
281.58(9m)(f)2.
2. The department of administration shall allocate funding to projects in the order in which they appear on the funding list under
subd. 1.
281.58(9m)(fm)
(fm) The department, in consultation with the department of administration, shall promulgate, by rule, methods to establish deadlines for actions that must be taken by a municipality to which subsidy has been allocated. The methods may provide for extending deadlines under specified circumstances. If a municipality fails to meet a deadline, including any extension, the department of administration shall release the amount of subsidy allocated to the municipality's project.
281.58(9m)(g)
(g) In allocating subsidy under this subsection, the department of administration shall adhere to the amount approved by the legislature for each biennium under
s. 281.59 (3) (d).
281.58(11)(a)(a) Except as provided in
par. (b), the department of administration shall specify the method by which financial assistance is to be provided for each approved application.
281.58(11)(b)
(b) For municipalities meeting the financial hardship assistance requirements under
sub. (13), the department of natural resources may approve financial hardship assistance.
281.58(12)(a)(a) The types of projects for which municipalities may receive loans under this section and
s. 281.59 shall be classified as follows for the purpose of setting the percentage of market interest rates on loans funding such projects:
281.58(12)(a)4.
4. A planning and design project specified in
sub. (7) (b) 3. shall be classified under
subd. 1.,
2. or
3. based on the type of treatment work construction or replacement project for which the planning and design project is undertaken.
281.58(12)(c)
(c) The department shall establish, by rule, the percentage of market interest rates on loans for each tier of projects specified in
par. (a) 1.,
2. or
3., consistent with the following standards:
281.58(12)(c)1.
1. The percentage of market interest rates established shall, to the extent possible, fully allocate the amount of public debt authorized under
s. 20.866 (2) (tc), the amount authorized under
s. 281.59 (3) (d) and the amount of revenue obligations authorized under
s. 281.59 (4) (f).
281.58(12)(c)2.
2. A different percentage of market interest rate shall be established for each tier of projects in
par. (a). Tier 3 projects shall receive market interest rate. Tier 1 projects shall receive a percentage of market interest rate that is lower than the percentage of market interest rate on tier 2 projects.
281.58(12)(c)3.
3. The department, in establishing percentage of market interest rates, shall attempt to ensure that those rates do not result in any of the following:
281.58(12)(c)3.a.
a. Beginning in fiscal year 1991, increases in all state water pollution abatement general obligation debt service costs greater than 4% annually in the fiscal year in which the rates are established and in the following fiscal year.
281.58(12)(c)3.b.
b. State water pollution abatement general obligation debt service costs greater than 50% of all general obligation debt service costs in the fiscal year in which the rates are established and in any of the following 3 fiscal years.
281.58(12)(f)
(f) The department and the department of administration jointly may request the joint committee on finance to take action under
s. 13.101 (11) to modify the percentage of market interest rates established by rule for tier 1 and tier 2 projects.
281.58(13)(b)(b) A municipality with an application that is approved under
sub. (9m) is eligible for financial hardship assistance for the project costs that are eligible under this section and
s. 281.59, except for costs to which
sub. (8) (b),
(c),
(f) or
(h) applies, if the municipality meets all of the following criteria:
281.58(13)(b)1.
1. The median household income in the municipality is 80% or less of the median household income in this state.
281.58(13)(b)2.
2. The estimated total annual charges per residential user in the municipality that relate to wastewater treatment would exceed 2% of the median household income in the municipality without assistance under this subsection.
281.58(13)(c)
(c) The department shall provide assistance so that estimated total annual charges per residential user in the municipality that relate to wastewater treatment do not exceed 2% of the median household income in the municipality, if possible. The department may not reduce the amount of financial hardship assistance for a municipality's project due to the municipality receiving assistance for the project from another source unless the combination of financial hardship assistance plus the assistance from the other source would reduce the estimated total annual charges per residential user in the municipality that relate to wastewater treatment to less than 2% of the median household income in the municipality.
281.58(13)(d)
(d) The department shall establish a financial hardship assistance funding list for each fiscal year that ranks projects of municipalities that are eligible under
par. (b), and that submit complete financial assistance applications under
sub. (9) (a) no later than June 30 of the preceding fiscal year, in the same order that they appear on the priority list under
sub. (8e).
281.58(13)(e)
(e) In each fiscal year, the department shall allocate financial hardship assistance under this subsection in the following order:
281.58(13)(e)2.
2. Assistance under
par. (b) for projects that were on a funding list under
par. (d) for a prior fiscal year, that have not previously received funding and that were in the top 20% of projects on the priority list under
sub. (8e) for the prior fiscal year, starting with projects on the funding list for the earliest fiscal year.
281.58(13)(e)3.
3. Assistance under
par. (b) for projects on the current fiscal year's funding list under
par. (d) in the order that they appear on the funding list.
281.58(13)(f)
(f) The department shall promulgate, by rule, a formula for estimating operating, maintenance and replacement costs for determining estimated wastewater treatment user charges under this subsection.
281.58(13m)
(13m) Minority business development and training program. 281.58(13m)(a)(a) The department shall make grants to projects that are eligible for financial assistance under this section and
s. 281.59 and that are identified as being part of the minority business development and training program under
s. 66.905 (2) (b).
281.58(13m)(b)
(b) Grants provided under this subsection are not included for the purposes of determining under
sub. (8) (i) the amount that a municipality may receive for projects under this section and
s. 281.59. Grants awarded under this subsection are not considered for the purposes of
sub. (9m) (e) or
s. 281.59 (3) (d).
281.58(14)
(14) Conditions of financial assistance. 281.58(14)(b)(b) As a condition of receiving financial assistance under this section and
s. 281.59, a municipality shall do all of the following:
281.58(14)(b)1.
1. Establish a dedicated source of revenue, that is acceptable to the department of administration under
s. 281.59 (9) (am) and
(b), for the repayment of any financial assistance.
281.58(14)(b)5.
5. Develop and adopt a program of water conservation as required by the department.
281.58(14)(b)6.
6. Develop and adopt a program of systemwide operation and maintenance of the treatment work, including the training of personnel, as required by the department.
281.58(14)(b)7.
7. Develop and adopt a system of equitable user charges to ensure that each recipient of treatment work services pays its proportionate share of the costs of the operation and maintenance of the treatment work. The user fee system shall be in compliance with
33 USC 1284 (b) and the regulations promulgated thereunder. The department may issue an exemption from the requirement imposed under this subdivision if a city or village imposes a system of equitable dedicated charges based upon assessed property values, if the city or village does not operate a treatment work but is served by a regional wastewater treatment plant operated by a metropolitan sewerage district created under
ss. 66.88 to
66.918 and if the user charges imposed by that district are approved by the department and comply with
33 USC 1284 (b). The department may provide that the system of user charges for a project with estimated construction costs of $750,000 or less need only cover the costs of debt service and equipment replacement funds.
281.58(15)(a)(a) The department and the department of administration may, at the request of a municipality, issue a notice of financial assistance commitment to the municipality after all of the following occur:
281.58(15)(a)1.
1. The department approves the municipality's application under
sub. (9m) (a) and the department of administration has allocated subsidy for the municipality's project.
281.58(15)(am)
(am) The notice of financial assistance commitment shall include the conditions that the municipality must meet to secure the financial assistance and shall include the estimated repayment schedules and other terms of the financial assistance.
281.58(21)
(21) Construction. This section shall be liberally construed in aid of the purposes of this section.
281.59
281.59
Clean water fund program; financial management. 281.59(1)(b)
(b) "Market interest rate" means the interest at the effective rate of a revenue obligation issued by the state to fund a project loan or a portion of a project loan under this section and
s. 281.58.
281.59(1)(c)
(c) "Municipality" means any city, town, village, county, county utility district, town sanitary district, public inland lake protection and rehabilitation district, metropolitan sewerage district or federally recognized American Indian tribe or band in this state.
281.59(1)(d)
(d) "Subsidy" means the amounts provided by the clean water fund to projects receiving financial assistance under this section and
s. 281.58 for the following purposes:
281.59(1)(d)1.
1. To reduce the interest rate of clean water fund loans from market rate to a subsidized rate.
281.59(1)(d)2.
2. To provide for financial hardship assistance, including grants.
281.59(1)(f)
(f) "Violator of an effluent limitation" means a person or municipality that after May 17, 1988, is not in substantial compliance with the enforceable requirements of its permit issued under
ch. 283 for a reason that the department determines is or has been within the control of the person or municipality.
281.59(2)
(2) General duties. The department of administration shall:
281.59(2)(b)
(b) Cooperate with the department in administering the clean water fund program.
281.59(2)(c)
(c) Accept and hold any letter of credit from the federal government through which the state receives federal capitalization grant payments and disbursements to the clean water fund.
281.59(2m)
(2m) Investment management; clean water fund. 281.59(2m)(a)1.
1. Subject to
par. (b), direct the investment board under
s. 25.17 (2) (d) to make any investment of the clean water fund, or in the collection of the principal and interest of all moneys loaned or invested from such fund.
281.59(2m)(a)2.
2. Subject to
par. (b), purchase or acquire, commit on a standby basis to purchase or acquire, sell, discount, assign, negotiate, or otherwise dispose of, or pledge, hypothecate or otherwise create a security interest in, loans as the department of administration may determine, or portions or portfolios of participations in loans, made or purchased under this section. The disposition may be at the price and under the terms that the department of administration determines to be reasonable and may be at public or private sale.
281.59(2m)(b)
(b) The department of administration shall take an action under
par. (a) only if all of the following conditions occur:
281.59(2m)(b)1.
1. The action provides a financial benefit to the clean water fund.
281.59(2m)(b)2.
2. The action does not contradict or weaken the purposes of the clean water fund.
281.59(2m)(b)3.
3. The building commission approves the action before the department of administration acts.
281.59(3)
(3) Financial management; biennial finance plan. 281.59(3)(a)(a) By October 1 of each even-numbered year, the department of administration and the department jointly shall prepare a biennial finance plan that includes all of the following information:
281.59(3)(a)1.
1. An estimate of wastewater treatment needs of the state for the 4 fiscal years of the next 2 biennia.
281.59(3)(a)2.
2. The total amount of financial assistance planned to be provided or committed to municipalities for projects during the 4 fiscal years of the next 2 biennia.
281.59(3)(a)4.
4. The extent to which the clean water fund will be maintained in perpetuity.
281.59(3)(a)5.
5. Audited financial statements of the past operations and activities of the program under this section and
s. 281.58, the estimated fund capital available in each of the next 4 fiscal years, and the projected clean water fund balance for each of the next 20 years given existing obligations and financial conditions.
281.59(3)(a)6.
6. An amount equal to the estimated present value of subsidies for all clean water fund loans and grants expected to be made for the wastewater treatment projects listed in the biennial needs list under
s. 281.58 (3m), discounted at a rate of 7% per year to the first day of the biennium for which the biennial finance plan is prepared.
281.59(3)(a)7.
7. A discussion of the assumptions made in calculating the amount under
subd. 6.
281.59(3)(a)8.
8. The amount of any service fee expected to be charged during the next biennium under this section to an applicant.
281.59(3)(a)9.
9. The impact of the biennial finance plan on the guideline under
par. (b).
281.59(3)(b)
(b) The department of administration and the department shall consider as a guideline in preparing the biennial finance plan that all state water pollution abatement general obligation debt service costs should not exceed 50% of all general obligation debt service costs to the state.
281.59(3)(bm)
(bm) The department and the department of administration jointly shall prepare and submit copies of all of the following to the building commission under
s. 13.48 (26), to the joint committee on finance and to the chief clerk of each house of the legislature, for distribution under
s. 13.172 (3) to the appropriate legislative standing committees generally responsible for legislation related to environmental issues:
281.59(3)(bm)1.
1. By October 1 of each even-numbered year, the version of the biennial finance plan initially prepared as part of the budget process.
281.59(3)(bm)2.
2. No later than 30 days after the day on which the biennial budget is submitted to the legislature under
s. 16.45, amendments to the biennial finance plan that update the plan to reflect material approved by the governor for inclusion in the budget.
281.59(3)(bm)3.
3. No later than 30 days after the day on which the governor signs the biennial budget, a version of the biennial finance plan, updated to reflect the adopted biennial budget act.
281.59(3)(br)
(br) The joint committee on finance and each standing committee may submit to the building commission its recommendations and comments regarding each version of the biennial finance plan and amendments to the biennial finance plan, and whether the version of the biennial finance plan updated to reflect the adopted biennial budget act should be approved or disapproved as specified under
s. 13.48 (26). If the building commission disapproves the version of the biennial finance plan that is updated to reflect the adopted biennial budget act, the department and the department of administration shall submit a revised biennial finance plan to the building commission.
