Arkansas Administrative Code
Agency 138 - Arkansas Natural Resources Commission
Rule 138.00.01-002 - Title V - Administrative Rules and Regulations for Financial Assistance
Current through Register Vol. 49, No. 2, February 2024
INTRODUCTION
WATER RESOURCES DEVELOPMENT GENERAL OBLIGATION BOND PROGRAM
The Water Resources Development General Obligation Bond Program (Ark. Code Ann. § 15-22-601 et seq .) was established by Act 496 of 1981. The Act authorized the Arkansas Soil and Water Conservation Commission to apply bond proceeds for the purpose of providing or assisting in providing for the acquisition, development and utilization of surface and subsurface water resources, water storage, impoundment and control facilities and water treatment facilities for the use and benefit of the public and for the conservation and distribution of water for domestic, agricultural, industrial and other essential purposes in or from reservoirs, impoundments or other storage facilities.
WATER DEVELOPMENT FUND PROGRAM
The Water Development Fund (Ark. Code Ann. § 15-22-507 et seq .) was established by Act 217 of 1969. The Act authorized the Arkansas Soil and Water Conservation Commission to engage in any water development project, or any phase thereof, in cooperation with any political subdivision or agency of the State of Arkansas; provided it be included in and made part of the State Water Plan.
WATER, SEWER AND SOLID WASTE MANAGEMENT SYSTEMS PROGRAM
The Water, Sewer and Solid Waste Management Systems Program (Ark. Code Ann. § 14-230-101 et seq .) was established by Act 274 of 1975 and was originally administered by the Department of Local Services. Act 764 of 1981 transferred the administration of the program to the Arkansas Soil and Water Conservation Commission effective July 1, 1981. Act 960 of 1997 amended the Act to increase the level of funding that can be provided under the Act, simplified and streamlined the application process and clarified the terms and conditions under which financial assistance can be provided. The Act authorizes the Arkansas Soil and Water Conservation Commission to assist cities, towns, improvement districts, water associations, regional wastewater treatment districts and counties in financing the construction of facilities for water, sewer and solid waste systems.
WASTE DISPOSAL AND POLLUTION ABATEMENT FACILITIES GENERAL OBLIGATION BOND PROGRAM
The Waste Disposal and Pollution Abatement Facilities General Obligation Bond Program (Ark. Code Ann. § 15-22-701 et seq .) was established by Act 686 of 1987. The Act authorized the Arkansas Soil and Water Conservation Commission to apply bond proceeds for the purpose of financing waste disposal and pollution abatement facilities to serve the inhabitants of the State of Arkansas.
WATER RESOURCES COST SHARE REVOLVING FUND PROGRAM
The Water Resources Cost Share Revolving Fund Program (Ark. Code Ann. § 15-22-801 et seq .) was established by Act 257 of 1989. The Act authorized the Arkansas Soil and Water Conservation Commission to provide grants and loans to the State of Arkansas and its local political subdivisions for the purpose of funding the non-federal share of their financial obligations required under any local cooperative agreements entered into with the federal government in connection with financing a water resources development project.
WATER, WASTE DISPOSAL AND POLLUTION ABATEMENT FACILITIES GENERAL OBLIGATION BOND PROGRAM
The Water, Waste Disposal and Pollution Abatement Facilities General Obligation Bond Program was established by Act 607 of 1997. The Act authorized the Arkansas Soil and Water Conservation Commission to apply bond proceeds for the purpose of financing and refinancing the development of water, waste disposal, pollution control, abatement and prevention, drainage, irrigation, flood control and wetlands projects to serve the citizens of the State of Arkansas.
TITLE V ADMINISTRATIVE RULES AND REGULATIONS FOR FINANCIAL ASSISTANCE
Due to the very specialized nature and complexity of administration of the financial assistance Programs, the rules, regulations, modes of procedure, Commission policies and guidelines herein provided shall, in all instances, be subject to and given a liberal, reasonable, fair and impartial construction, interpretation and application to the end that the intent and purposes hereof may be obtained in compliance with the laws of the State and the public purposes sought to be served thereby.
DEVELOPMENT FUND APPLICATIONS.
TYPE PROJECT |
RANKING |
Public Water Supply |
1 |
Irrigation (water conservation) |
2 |
Flood Control and/or Drainage |
3 |
Erosion and Sediment Control |
4 |
Streambank Stabilization |
5 |
Recreation and/or Fish and Wildlife |
6 |
Hydro-electric Power |
7 |
Navigation |
8 |
The above rankings will be used as a general guide and priority will be based on individual Project merits.
TYPE PROJECT |
RANKING |
Public Water Supply |
1 |
Sewage Systems |
2 |
Solid Waste Collection/Disposal |
3 |
The above rankings will be used as a general guide and priority will be based on individual Project merits.
No grant under the Water Resources Cost Share Revolving Fund Program shall be awarded until the local government applicant has furnished the Commission with sufficient proof of the exhaustion of all other funding sources and has established that a deficiency exists in the amount of local funds available to finance the non-federal share of the Project.
In establishing the debt service reserve fund, depreciation reserve fund or other terms and conditions, the Commission may consider the following:
PROJECT COSTS REPAID. Upon repayment to the Commission of all Project costs and/or such other payments, fees and charges as may be required to be paid to the Commission pursuant to the Project agreements in full satisfaction of the applicant's obligations, the Commission will convey any ownership interest it has in the Project or cause such interest to be conveyed to the proper applicant, or if applicable, to a group of applicants as their interests may appear, and the Commission shall return control over the operation and maintenance of the Project to the applicant or applicants, as the case may be.
All of the entities set out below are collectively referred to in these rules and regulations as "Eligible Entities."
System's Rate Burden Factor (RBF) EXAMPLE:
MHI from the most recent census = $11,000.00
Cost of 4,000 gallons/month = $ 15.00
(cost 4,000 gal/mo. * 12 mo.)
RBF = -------------------------- * 100
MHI
( $15.00 * 12 )
RBF = -------------------------- * 100
($11,000.00)
RBF = 1.64%
SYSTEM'S RATE BURDEN FACTOR (RBF) CHART
RBF |
Type of Financial Assistance |
0.0 - 0.49 |
None |
0.50 - up |
Interim Financing; 5% interest; maximum 3 year payback |
1.00 - 1.49 |
5% interest; 10 year payback |
1.50 - 1.99 |
5% interest; 20 year payback |
1.50 - up |
Grant; Must also have two or more of the following: Greater than average State incidence of elderly, low income or unemployed persons. |
2.00 - 2.99 |
5% interest; 10 years deferred interest and principal payments; 20 year payback after 10 year deferral. |
2.50 - up |
Grant. Must also have one or more of the following: Greater than average State incidence of elderly, low income or unemployed persons. |
3.00 - up |
Grant. |
For the purposes of the Cost Share Program, "water resources development project" means the construction, acquisition, ownership, replacement, operation, and maintenance of facilities, including land, easements, and works of improvement, for the protection, conservation, preservation, development, utilization, and proper disposal of the State's water resources and related land resources in order to: