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.
281.59(3)(c)
(c) No moneys from the clean water fund may be expended in a biennium until the legislature reviews and approves all of the following as part of the biennial budget act for the biennium:
281.59(3)(c)1.
1. An amount that is specified for that biennium under
par. (d) and is based on the amount included in the biennial finance plan under
par. (a) 6.
281.59(3)(d)
(d) The amount that is specified under
par. (c) 1. and approved by the legislature under this paragraph is:
281.59(3)(d)3.
3. Equal to $1,000 for any biennium after the 1995-97 biennium.
281.59(3)(dm)
(dm) The department of administration may allocate amounts approved under
par. (d) as the present value of subsidies for financial assistance under this section and
s. 281.58, including financial hardship assistance and assistance for the additional costs of approved projects. The department of administration may allocate amounts from the amount approved under
par. (d) for a biennium until December 30 of the fiscal year immediately following the biennium for projects for which complete applications under
s. 281.58 (9) (a) are submitted before the end of the biennium.
281.59(3)(e)
(e) The department may expend, for financial assistance in a biennium other than financial hardship assistance under
s. 281.58 (13) (e), an amount up to 85% of the amount approved by the legislature under
par. (d). The department may expend such amount only from the percentage of the amount approved under
par. (d) that is not available under
par. (f) for financial hardship assistance.
281.59(3)(f)
(f) The department may expend, for financial hardship assistance in a biennium under
s. 281.58 (13) (e), an amount up to 15% of the amount approved by the legislature under
par. (d) for that biennium. The department may expend such amount only from the percentage of the amount approved by the legislature under
par. (d) that is not available under
par. (e) for financial assistance.
281.59(3)(i)
(i) Using the amount approved under
par. (d) as a base, the department of administration shall calculate the present value of the actual subsidy of each clean water fund loan or grant to be made for those projects in each biennium that are approved for financial assistance by the 2 departments. The present value shall be discounted as provided under
par. (a) 6.
281.59(3)(j)
(j) No later than November 1 of each odd-numbered year, the department of administration and the department jointly shall submit a report, to the building commission and committees as required under
par. (bm), on the implementation of the amount established under
par. (d) as required under
s. 281.58 (9m) (e), and on the operations and activities of the clean water fund program for the previous biennium.
281.59(4)(a)(a) The clean water fund program is a revenue-producing enterprise or program as defined in
s. 18.52 (6).
281.59(4)(am)
(am) Deposits, appropriations or transfers to the clean water fund for the purposes specified in
s. 25.43 (3) may be funded with the proceeds of revenue obligations issued subject to and in accordance with
subch. II of ch. 18 or in accordance with
subch. IV of ch. 18 if designated a higher education bond.
281.59(4)(b)
(b) The department of administration may, under
s. 18.56 (5) and
(9) (j), deposit in a separate and distinct fund in the state treasury or in an account maintained by a trustee outside the state treasury, any portion of the revenues derived under
s. 25.43 (1). The revenues deposited with a trustee outside the state treasury are the trustee's revenues in accordance with the agreement between this state and the trustee or in accordance with the resolution pledging the revenues to the repayment of revenue obligations issued under this subsection.
281.59(4)(c)
(c) The building commission may pledge any portion of revenues received or to be received in the fund established in
par. (b) or the clean water fund to secure revenue obligations issued under this subsection. The pledge shall provide for the transfer to the clean water fund of all pledged revenues, including any interest earned on the revenues, which are in excess of the amounts required to be paid under
s. 20.320 (1) (c) and
(u) for the purposes specified in
s. 25.43 (3). The pledge shall provide that the transfers be made at least twice yearly, that the transferred amounts be deposited in the clean water fund and that the transferred amounts are free of any prior pledge.
281.59(4)(d)
(d) The department of administration shall have all other powers necessary and convenient to distribute the pledged revenues and to distribute the proceeds of the revenue obligations in accordance with
subch. II of ch. 18 or in accordance with
subch. IV of ch. 18 if designated a higher education bond.
281.59(4)(e)
(e) The department of administration may enter into agreements with the federal government or its agencies, political subdivisions of this state, individuals or private entities to insure or in any other manner provide additional security for the revenue obligations issued under this subsection.
281.59(4)(f)
(f) Revenue obligations may be contracted by the building commission when it reasonably appears to the building commission that all obligations incurred under this subsection can be fully paid on a timely basis from moneys received or anticipated to be received. Revenue obligations issued under this subsection shall not exceed $1,297,755,000 in principal amount, excluding obligations issued to refund outstanding revenue obligation notes.
281.59(4)(g)
(g) Unless otherwise expressly provided in resolutions authorizing the issuance of revenue obligations or in other agreements with the holders of revenue obligations, each issue of revenue obligations under this subsection shall be on a parity with every other revenue obligation issued under this subsection and in accordance with
subch. II of ch. 18 or with
subch. IV of ch. 18 if designated a higher education bond.
281.59(9)
(9) Conditions of financial assistance. 281.59(9)(a)(a) A loan approved under this section and
s. 281.58 shall be for no longer than 20 years, as determined by the department of administration, be fully amortized not later than 20 years after the original date of the note, and require the repayment of principal and interest, if any, to begin not later than 12 months after the expected date of completion of the project that it funds, as determined by the department of administration.
281.59(9)(am)
(am) The department of administration, in consultation with the department, may establish those terms and conditions of a financial assistance agreement that relate to its financial management, including what type of municipal obligation, as set forth under
s. 66.36, is required for the repayment of the financial assistance. Any terms and conditions established under this paragraph by the department of administration shall comply with the requirements of this section and
s. 281.58. In setting such terms and conditions, the department of administration may consider factors that the department of administration finds are relevant, including the type of municipal obligation evidencing the loan, the pledge of security for the municipal obligation and the municipality's creditworthiness.
281.59(9)(b)
(b) As a condition of receiving financial assistance under this section and
s. 281.58, a municipality shall do all of the following:
281.59(9)(b)1.
1. Pledge the security, if any, required by the rules promulgated by the department of administration under this section and
s. 281.58.
281.59(9)(b)2.
2. Demonstrate to the satisfaction of the department of administration the financial capacity to assure sufficient revenues to operate and maintain the project for its useful life and to pay the debt service on the obligations that it issues for the project.
281.59(11)(a)(a) The department of natural resources and the department of administration may enter into a financial assistance agreement with a municipality for which the department of administration has allocated subsidy under
s. 281.58 (9m) if the municipality meets the conditions under
sub. (9) and
s. 281.58 (14) and the other requirements under this section and
s. 281.58.
281.59(11)(am)
(am) The department of administration shall make the financial assistance payments to a municipality which has entered into a financial assistance agreement under
par. (a) or to the municipality's designated agent.
281.59(11)(b)
(b) If a municipality fails to make a principal repayment or interest payment after its due date, the department of administration shall place on file a certified statement of all amounts due under this section and
s. 281.58. After consulting the department, the department of administration may collect all amounts due by deducting those amounts from any state payments due the municipality or may add a special charge to the amount of taxes apportioned to and levied upon the county under
s. 70.60. If the department of administration collects amounts due, it shall remit those amounts to the fund to which they are due and notify the department of that action.
281.59(11)(c)
(c) The department of administration may retain the last payment under a financial assistance agreement until the department of natural resources and the department of administration determine that the project is completed and meets the applicable requirements of this section and
s. 281.58 and that the conditions of the financial assistance agreement are met.
281.59(12)
(12) Municipal obligations. The department of administration may purchase or refinance obligations specified in
s. 281.58 (6) (b) 1. or
2. and guarantee or purchase insurance for municipal obligations specified in
s. 281.58 (6) (b) 3. if the department of administration and the department of natural resources approve the financial assistance under this section and
s. 281.58.
281.59(13)(a)1.1. Notwithstanding any other provision of this section and
s. 281.58, a municipality that submits to the department by January 2, 1989, a facility plan meeting the requirements of
s. 281.57 which is approvable under this chapter and that does not receive a grant award before July 1, 1990, only because the municipality is following a schedule contained in the facility plan and approved by the department and the municipality is in compliance with all applicable schedules contained in a permit issued under
ch. 283 or because there are insufficient grant funds under
s. 281.57, is eligible to receive financial assistance under this paragraph. The form of the financial assistance is a loan with an interest rate of 2.5% per year except that
s. 281.58 (8) (b),
(f) and
(k) applies to projects receiving financial assistance under this paragraph.
281.59(13)(a)2.
2. Notwithstanding any other provision of this section or
s. 281.58, the department shall make all loans under
subd. 1. to municipalities ready to construct treatment works before the department provides or approves any other financial assistance under this section except for loans under
par. (b).
281.59(13)(b)1.1. Notwithstanding any other provision of this section or
s. 281.58, an unsewered municipality is eligible to receive financial assistance under this paragraph, in the form of a loan with an interest rate of 2.5% per year, which may be for original financing or refinancing for a collection system that is ineligible for financial assistance under
s. 281.57 because of
s. 281.57 (4) (b) 1. and that is being connected to an existing wastewater treatment plant if all of the following apply:
281.59(13)(b)1.a.
a. The municipality applies to the department for financial assistance under
s. 281.57 (5) for a construction project during 1988.
281.59(13)(b)1.b.
b. Before January 1, 1989, the department issues a notice under
s. 281.57 (6) that the department is ready to allocate funds to the municipality for the project.
281.59(13)(b)1.d.
d. The municipality receives a grant under
s. 281.57 for the construction of the project from the list developed by the department under
s. 281.57 (6) (a) for applications received in 1988.
281.59(13)(b)1m.
1m. Notwithstanding any other provision of this section or
s. 281.58, a town sanitary district is eligible to receive financial assistance under this paragraph, in the form of a loan with an interest rate of 2.5% per year, for the extension of a collection system into an unsewered area that is added to the sanitary district if all of the following apply:
281.59(13)(b)1m.b.
b. The department determines that extension of the collection system into the unsewered area is necessary and cost-effective.
281.59(13)(b)1m.c.
c. The sanitary district invites bids for and begins construction of the extension of the collection system before January 1, 1990.
281.59(13)(b)3.
3. Notwithstanding any provision of this section or
s. 281.58, the department shall annually allocate funds for loans under
subds. 1. and
1m. before the department provides or approves any other financial assistance under this section or
s. 281.58.
281.59(13)(e)
(e) The department of administration and the department may not make loans under s.
144.241 (20), 1987 stats., as affected by
1989 Wisconsin Acts 31,
336 and
366, or under this subsection to a metropolitan sewerage district that serves a 1st class city that total more than $230,900,000.
281.59(13m)
(13m) Legislative moral obligation. The building commission may, at the time the loan is made, by resolution designate a loan made under this section and
s. 281.58 as one to which this subsection applies. If at any time the payments received or expected to be received from a municipality on any loan so designated are pledged to secure revenue obligations of the state issued pursuant to
subch. II of ch. 18 and are insufficient to pay when due principal of and interest on such loan, the department of administration shall certify the amount of such insufficiency to the secretary of administration, the governor and the joint committee on finance. If the certification is received by the secretary of administration in an even-numbered year before the completion of the budget under
s. 16.43, the secretary of administration shall include the certified amount in the budget compilation. In any event, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so requested for the purpose of payment of the revenue obligation secured thereby. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make the appropriation.
281.59(13s)
(13s) Powers. The department of administration may audit, or contract for audits of, projects receiving financial assistance under this section and
s. 281.58.
281.59(14)
(14) Rules. The department of administration shall promulgate rules that are necessary for the proper execution of this section and of its responsibilities under
s. 281.58.
281.59(15)
(15) Construction. This section shall be liberally construed in aid of the purposes of this section.
281.59 History
History: 1989 a. 366 ss.
40,
63,
65,
66,
97,
99,
106,
108 to
110,
115;
1991 a. 32,
39,
189,
315;
1993 a. 16;
1995 a. 27;
1995 a. 227 s.
426; Stats. 1995 s. 281.59;
1995 a. 452.
281.63
281.63
Financial assistance program; combined sewer overflow abatement. 281.63(1)
(1)
Legislative findings. The legislature finds that state financial assistance for the elimination of combined sewer overflow to the waters of the state is a public purpose and a proper function of state government.
281.63(2)
(2) Definitions. As used in this section:
281.63(2)(a)
(a) "Combined sewer" means a sewer intended to serve as a sanitary sewer and a storm sewer or as an industrial sewer and a storm sewer.
281.63(2)(b)
(b) "Combined sewer overflow" means a discharge of a combination of storm and sanitary wastewater or storm and industrial wastewater directly or indirectly to the waters of the state when the volume of wastewater flow exceeds the transport, storage or treatment capacity of a combined sewer system.
281.63(2)(c)
(c) "Facilities plan" means that plan or study which demonstrates the need for the proposed sewerage system or sewerage system component and which demonstrates through a systematic evaluation of alternatives that the selected alternative is the most cost-effective means of correcting combined sewer overflows.
281.63(3)
(3) Administration. The department shall administer the combined sewer overflow abatement financial assistance program. The department shall promulgate rules necessary for the proper execution of this program.
281.63(4)(a)(a)
Eligible municipalities. Only a municipality with a sewerage system which is violating
ch. 283 or title III of the federal act because of combined sewer overflow is eligible to receive financial assistance under the combined sewer overflow abatement financial assistance program.
281.63(4)(b)
(b)
Eligible projects. Only a project for construction necessary to abate combined sewer overflows identified in department-approved facilities plans as cost-effective and reasonably necessary for water quality improvements is eligible for financial assistance under the combined sewer overflow abatement financial assistance program, except that the department need not determine the cost-effectiveness of projects performed under a contract awarded under
s. 66.905.
281.63(4)(c)
(c)
Facility planning; engineering design. Only a municipality which has completed facility planning and engineering design requirements for a combined sewer overflow abatement project is eligible to receive financial assistance under the combined sewer overflow abatement financial assistance program.
281.63(5)
(5) Application. A municipality which seeks financial assistance under the combined sewer overflow abatement financial assistance program shall submit an application to the department. The application shall be in the form and include the information the department prescribes by rule. The department shall review all applications for financial assistance under this program. The department shall determine those applications which meet the eligibility requirements of this section.
281.63(6)
(6) Priority. Each municipality shall notify the department of its intent to apply for financial assistance under the combined sewer overflow abatement financial assistance program. For those municipalities that notify the department of their intention to apply for financial assistance under this program by December 31, the department shall establish annually a priority list which ranks these projects in the same order as they appear on the list prepared under
s. 281.57 (6) (a).
281.63(7)
(7) Payment. Upon the completion by the municipality of all application requirements, the department may enter into an agreement with the municipality for a grant of up to 50% of the eligible construction costs of a combined sewer overflow abatement project if the municipality can begin construction within 3 months after the department is ready to allocate funds.
281.63(8)
(8) Advance commitments for reimbursement of engineering design costs. The department may make an advance commitment to a municipality for the reimbursement of engineering design costs from funds appropriated under
s. 20.866 (2) (to) subject to all of the following requirements:
281.63(8)(a)
(a) The advance commitment shall include a provision making the reimbursement of engineering design costs conditional on the award of a construction grant.
281.63(8)(b)
(b) The advance commitment may be made only for engineering design activities commenced after the department makes the advance commitment.
281.63(8)(c)
(c) The advance commitment may be made only if the municipality has completed all facility planning requirements.
281.63(8)(d)
(d) The advance commitment may be made only for engineering design costs related to a project that is eligible for assistance under
sub. (4).
281.63(8)(e)
(e) The advance commitment shall be subject to a priority determination system consistent with
sub. (6).
