Section 18.76.240. Ability to repay.

	(a)  In deciding whether to approve a request for financial assistance from the Alaska drinking water fund, the department will consider the following factors in evaluating an applicant's ability to repay financial assistance and will require that each factor be documented before approval is given:  
		(1) certification that any debt service requirement and debt service coverage test is expected to be met for the term proposed in the application;  
		(2) the applicant's  
			(A) ability to assess and collect revenues for the project and to bring effective sanctions on non-paying customers;  
			(B) debt repayment history;  
			(C) current and overall structure of debt repayment;  
			(D) revenue bond credit rating, if applicable;  
			(E) financial statements, if required by the department, including a comparison of actual financial performance to adopted budget operations;  
			(F) history of financial operations;  
			(G) recent levels of the debt retirement, operations, or similar fund balances;  
			(H) compliance with state and federal environmental laws;  
			(I) levels of financial reserves for unforeseen circumstances and prospective judgments from litigation;  
			(J) adherence to provisions of past and current debt resolutions; and  
			(K) capital improvement plan and proposed debt issuance program;  
		(3) a utility rate feasibility study by a qualified independent consultant or registered engineer, if required by the department;  
		(4) any litigation or threatened litigation that might affect the project or the applicant's ability to pay debt service on the financial assistance;  
		(5) the demand for the proposed project; and  
		(6) demographic and economic trends in the proposed service area.  
	(b)  The department will, in its discretion, deny a request for financial assistance if the department finds that the applicant has not adequately documented the factors in (a) of this section.  

Authorities

46.03.020;46.03.036;46.03.720

Notes

Reference

18 AAC 76.225
18 AAC 76.245

Authority

AS 46.03.020 AS 46.03.036 AS 46.03.720

History

Eff. 8/2/97, Register 143; am 3/14/2002, Register 161