Ch. Adm 35 Note Note: Chapter Adm 35 was created as an emergency rule effective March 18, 1991. Corrections made under s. 13.93 (2m) (b) 7., Stats., Register, July, 1999, No. 523.

Adm 35.01 Adm 35.01 Purpose. The purpose of this chapter is to establish rules under ss. 281.58, 281.59, and 281.61, Stats., for the administration of a program to provide financial assistance for costs incurred to abate pollution of the waters of the state or to provide drinking water.

Adm 35.01 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91; CR 22-079: am. Register July 2023 No. 811, eff. 8-1-23.

Adm 35.02 Adm 35.02 Definitions. In this chapter, the following terms shall have the respective meanings:

Adm 35.02(2) (2) “Department” means the department of administration.

Adm 35.02(2m) (2m) “Environmental improvement fund” means the fund established under s. 25.43, Stats.

Adm 35.02(3) (3) “Financial assistance” means assistance from the environmental improvement fund under s. 281.58 (6) (b), 281.59 (12), or 281.61 (2r), Stats., including assistance that the department does not require the recipient to repay.

Adm 35.02(3m) (3m) “Financial assistance agreement” means an agreement entered into by the department pursuant to s. 281.59 (11) (a), Stats., including an amendment to a financial assistance agreement.

Adm 35.02(4) (4) “Market interest rate” has the meaning given in s. 281.59 (1) (b), Stats.

Adm 35.02(5) (5) “Municipality” has the meaning given in s. 281.59 (1) (c), Stats.

Adm 35.02(7) (7) “Obligation” means financial assistance that the recipient must repay. Obligations include a recipient’s debts guaranteed or insured by the environmental improvement fund that the recipient must repay to another lender.

Adm 35.02 History History: Cr. Register, September, 1991, No. 429, eff. 10-1-91; correction in (7) made under s. 13.93 (2m) (b) 7., Stats., Register February 2002 No. 554; CR 22-079: renum. (1) to (2m) and am., r. and recr. (3), cr. (3m), am. (4), (5), r. (6), r. and recr. (7) Register July 2023 No. 811, eff. 8-1-23; correction in (3) made under s. 35.17, Stats., Register July 2023 No. 811.

Adm 35.03 Adm 35.03 Conditions of financial assistance.

Adm 35.03(3) (3) 

Adm 35.03(3)(a) (a) The department may not enter into a financial assistance agreement unless the recipient demonstrates to the satisfaction of the department that the recipient has the financial capacity to assure sufficient dedicated sources of revenue to operate and maintain the system as long as an obligation is outstanding for the project and to pay the debt service, including funding and maintaining any debt service reserve, on its obligation.

Adm 35.03(3)(b) (b) The department shall require an opinion of counsel or bond counsel, acceptable to the department, to the effect that the obligation of the recipient is valid and enforceable.

Adm 35.03(3)(c) (c) The department may require the opinion of counsel or bond counsel under par. (b) to include a statement that interest on the obligation is excluded from gross income for federal income tax purposes.

Adm 35.03(4) (4) 

Adm 35.03(4)(a) (a) The department may not enter into a financial assistance agreement unless the recipient establishes one or more dedicated sources of revenue that the department deems sufficient for repayment of the obligation.

Adm 35.03(4)(b) (b) The dedicated source of revenue pledged to repayment of the obligation shall include one or more 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(4)(b)4. 4. Any other dedicated source of revenue that the department deems satisfactory.

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; CR 22-079: am. (title), r. (1), (2), am. (3) (a), (b), cr. (3) (c), am. (4) (a), (b) (intro.), cr. (4) (b) 4. Register July 2023 No. 811, eff. 8-1-23.

Adm 35.04 Adm 35.04 Credit and security.

Adm 35.04(2) (2) A recipient may not pay the principal of an obligation prior to the payment schedule specified in the financial assistance agreement, except in accordance with the financial assistance agreement and the 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 environmental improvement fund.