Current through Register Vol. 63, No. 9, September 1, 2024
(1)
The Authority may award financing in a manner that maximizes the use of
available resources and maintains the desired credit standards of the fund. The
Authority shall determine the amount, type, interest rate and terms of any
financing awarded. It may offer an alternate mix or lower amount of assistance
than requested. The amount of the award may be the minimum amount that the
department determines is necessary to enable the project to proceed, and the
Authority may investigate and recommend other sources of funds for all or part
of a proposed project. Projects that the Authority determines are not
financially feasible will not be funded.
(2) Loans for water projects:
(a) The term of a loan is limited to the
usable life of the contracted project, or 30 years from the year of project
completion, whichever is less.
(b)
The interest rate on a loan is based on market conditions for similar debt. In
addition to, or in lieu of a grant, the Authority may offer a subsidized
interest rate if the community meets the criteria identified in (3)(b) and
(3)(c) below.
(c) The interest rate
on a bond funded loan is equal to the coupon rates on the state revenue bonds
funding the loan. Until the state revenue bonds funding the loan are sold, the
municipality will pay interest at a rate established by the Authority on loan
funds disbursed to the municipality.
(d) The maximum amount for a loan for a
project will be determined by the Authority on the basis of the department's
financial analysis of the municipality's capacity for repaying the debt, the
availability of moneys in the fund and prudent fund management, but will not
exceed $10,000,000.
(e) A loan must
be secured by a full faith and credit obligation that is payable from any taxes
which the municipality may levy within the limitations of Article XI of the
Oregon Constitution and all legally available revenues and other funds of the
municipality. A pledge of specific revenues of the municipality may be required
by the Authority to be pledged in addition to the foregoing.
(3) Grants for water projects:
When making a determination to award a grant, the Authority will apply prudent
fiscal management of the fund in order to manage limited funding resources. The
Authority shall determine if the project meets the criteria of a grant and make
a determination on the amount of the grant based on financial need or other
special circumstances. In making its determination, the Authority shall apply
the following criteria:
(a) The Authority's
financial analysis determines that the municipality's financial resources,
including its borrowing capacity, are insufficient to finance the
project;
(b) The projected annual
residential utility rate for the system is at least equivalent to a minimum
rate as determined by the Authority's policy. The Authority's policy may
include such factors as the most recent U.S. Census data on median household
income and annual adjustments for inflation since the most recent
census;
(c) Only a community with a
median household income below the state average is eligible for a grant award;
and
(d) Grants may be awarded up to
$750,000 based on the department's policy, but not more than 50 percent of the
financial award from the fund.
(4) Loans for technical assistance projects:
(a) A loan of up to $60,000 may be awarded
for a technical assistance project. Interest shall be at 50 percent of the
annual interest rate for other loans made in accordance with the requirements
of this OAR chapter 123, division 43. The loan term shall not exceed seven
years.
(b) A loan must be secured
by a full faith and credit obligation that is payable from any taxes which the
municipality may levy within the limitations of Article XI of the Oregon
Constitution and all legally available revenues and other funds of the
municipality. A pledge of specific revenues of the municipality may be pledged
in addition to the foregoing.
(5) Grants for technical assistance projects:
(a) A grant of up to $20,000 per water,
sewer, and storm drainage system may be awarded once every three (3) years for
a project.
(b) No more than
$600,000 of grant may be awarded for technical assistance projects in any
biennium.
Statutory/Other Authority: ORS
285B.563 &
285A.075
Statutes/Other Implemented: ORS
285B.560 -
285B.599
