Section R18-15-104. General Financial Assistance Application Requirements

A.      The applicant shall provide in the financial assistance applica- tion the information in subsections (B), (C), (D), and (E).

B.       The applicant shall demonstrate the applicant is legally autho- rized to enter into long-term indebtedness, and is legally authorized to pledge a dedicated revenue source for repayment under subsection (C).

1.        If the applicant is a political subdivision and the long- term indebtedness is authorized through an election, the applicant shall provide all of the following:

a.        One copy of the sample election ballot and election pamphlet,

b.        One copy of the governing body resolution calling for the election, and

c.        Official evidence of the election results following the election.

2.        If the applicant is a political subdivision and the long- term indebtedness is not required by law to be authorized through an election, the applicant shall provide one copy of the approved governing body resolution authorizing the long-term indebtedness.

3.        If the applicant is a political subdivision and the long- term indebtedness is authorized through a special taxing district creation process, the applicant shall provide one copy of all final documentation, notices, petitions, and related information authorizing the long-term indebted- ness.

4.        If the applicant is regulated by the Arizona Corporation Commission, the applicant shall provide evidence that the financial assistance from the Authority to the applicant is authorized by the Arizona Corporation Commission.

5.        All other applicants shall demonstrate that a majority of the beneficiaries consent to the terms and conditions of the financial assistance. The Authority shall assist each applicant to devise a process by which this consent is documented.

C.      The applicant shall identify a dedicated revenue source for repayment of the financial assistance and demonstrate that the dedicated revenue source is sufficient to repay the financial assistance.

1.        The applicant shall provide the following information:

a.        Amount of the financial assistance requested;

b.        One copy of each financial statement, audit, or com- prehensive financial statement from at least the pre- vious three fiscal years;

c.        One copy of each budget, business plan, manage- ment plan, or financial plan from the previous and current fiscal years;

d.        One copy of the proposed budget, business plan, management plan, or financial plan for the next fis- cal year;

e.        A projection of revenue anticipated to be collected over the next five fiscal years from the dedicated revenue source for repayment;

f.         A summary of current fees for drinking or wastewa- ter services including, as applicable, any resolutions passed by the governing body of a political subdivi- sion; and

g.        Copies of documentation relating to outstanding indebtedness pledged to the dedicated source for repayment, including official statements, financial assistance agreements, and amortization schedules.

2.        If any of the required information listed in subsection (C)(1) is not available, the Authority may assist the appli- cant in determining alternative documentation to support the applicant’s financial capability.

3.        The Authority may ask for additional financial informa- tion as necessary to evaluate the applicant’s financial capability.

D.      The applicant shall demonstrate the applicant is technically capable to construct, operate, and maintain the proposed project.

1.        The applicant shall provide the following information:

a.        An estimate of the project costs in as much detail as possible, including an estimate of applicable plan- ning, design, construction, and material costs;

b.        The number of connections to be served by the pro- posed project;

c.        The most recent version of the applicant’s capital improvement plan or other plan explaining proposed infrastructure investments;

d.        One copy of each feasibility study, engineering report, design memorandum, set of plans and speci- fications, and other technical documentation related to the proposed project and determined applicable by the Authority for the stage of project completion;

e.        Copies of resumés, biographies, or related informa- tion of the certified operators, system employees, or contractors employed by the applicant to operate and maintain the existing facilities and the proposed project;

f.         A description of the service area, including maps; and

g.        A description of the existing physical facilities.

2.        The Authority may ask for additional information as nec- essary to evaluate the applicant’s technical capability.

E.       The applicant shall demonstrate the applicant is capable to manage the proposed project.

1.        The applicant shall provide the following information:

a.        Years of experience and related information regard- ing the owners, managers, chief elected officials, and governing body members of the applicant; and

b.        A list of professional and outside services retained by the applicant and the proposed project.

2.        If any of the required information listed in subsection (E)(1) is not available, the Authority may assist the appli- cant in determining alternative documentation to support the applicant’s managerial capability.

3.        The Authority may ask for additional information as nec- essary to evaluate the applicant’s managerial capability.

Historical Note

Adopted effective September 18, 1997 (Supp. 97-3). Amended by final rulemaking at 7 A.A.R. 5956, effective December 4, 2001 (Supp. 01-4). Amended by final rule-

making at 16 A.A.R. 1709, effective October 9, 2010

(Supp. 10-3).