18 AAC 76.050. Ability to repay

(a) In deciding whether to approve a request for financial assistance from the Alaska clean 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 or satisfied 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 financial assistance application;

(2) the applicant's

(A) ability to assess and collect revenues for the project;

(B) debt repayment history;

(D) revenue bond credit rating, if applicable;

(E) financial statements, if required by the department, including a comparison of actual financial performance to adopted budgeted 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 or satisfied the factors listed in (a) of this section.

History: Eff. 11/19/88, Register 108; am 8/2/97, Register 143

Authority: AS 46.03.020

AS 46.03.032

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