PURPOSE: This rule establishes the department’s grant application procedure and a means of administering the state funds appropriated for construction of public water supply systems.

1. (1) Grant Application Requirements.

   1. (A) An application for a grant shall be submitted on forms provided by the department. The application shall be supported by the necessary documents and forms from other state and federal grant or lending agencies or private lending agencies to enable the department to establish eligibility for grant funds.
   2. (B) The project for which the grant application is submitted shall comply with appropriate state and local laws, rules and ordinances.
   3. (C) These grants are to be considered secondary sources of funding and, as such, shall in no case exceed one thousand four hundred dollars ($1400) per contracted connection or fifty percent (50%) of the total project cost, whichever is less.

   4. (D) The grant application shall contain the information listed in paragraphs (1)(D)1.–6. of this rule:

      1. 1. The preliminary engineering cost

study for the proposed project including, but not limited to, the following items: development and administration costs; land, structures, right-of-way costs; legal costs; engineering costs; interest costs; equipment costs; contingencies; other costs; and total project costs;

1. 2. Bonded indebtedness of the district or

community, including: outstanding general obligation and revenue bonds; the purpose of each indebtedness; the amount of each indebtedness; the amortization period; the date payments are due; amount of installment; and the interest rate;

1. 3. The financial condition of the district

or community, including: the total assessed value of agricultural, commercial and industrial property, vacant lots and residential property; total annual revenue anticipated from this assessed property; other sources of income available to finance the project; and cash on hand. The latest audit with an update would satisfy the requirements of this paragraph;

1. 4. The information required to deter-

mine the cost per contracted connection;

1. 5. The median annual gross income of

the residents in the district or community as determined in the latest census; and

1. 6. Information required to determine the

ratio of the contracted users to the potential users.

1. (2) Grant Priorities.

   1. (A) Priorities for grants for public water supply districts and rural community water systems shall be established by the department.
   2. (B) The establishment of priorities and determination of relative need will be coordinated with appropriate federal grant and lending agencies and with appropriate state agencies.

2. (3) Approval and Payment of Grants.

   1. (A) The applicant shall be notified by the department when the grant application has been approved.

   2. (B) Installment payments of the grant shall be made at the request of the applicant and shall be based on expenditures outlined in paragraph (1)(D)1. of this rule. Payments will be made in equal installments as listed in paragraphs (3)(B)1.–4. of this rule—

      1. 1. A first installment will be made when

not less than twenty-five percent (25%) of the construction of the project is completed;

1. 2. A second installment will be made

when not less than fifty percent (50%) of the construction of the project is completed;

1. 3. A third installment will be made

when not less than seventy-five percent (75%) of the construction of the project is completed; and

1. 4. A fourth installment will be made

after the project is completed, appropriate receipts and expenditures have been submitted and approved by the department, a final inspection has been performed by department personnel and construction is approved by the department.

1. (C) Any cost of work completed after the department’s final inspection approval shall not be an eligible project cost.
2. (D) An audit to verify expenditures of grant funds may be made by the department after the completion of each approved project.

AUTHORITY: section 640.615, RSMo 1994.* This rule was previously filed as 10 CSR 60- 2.020 Sept. 21, 1973, effective Oct. 1, 1973. Amended: Filed May 4, 1979, effective Sept. 14, 1979. Amended: Filed April 14, 1981, effective Oct. 11, 1981. Rescinded and readopted: Filed Feb. 2, 1983, effective July 1, 10 CSR 60-13 1983. Emergency amendment filed July 3, 1989, effective July 27, 1989, expired Nov. 23, 1989. Amended: Filed July 3, 1989, effective Nov. 23, 1989. *Original authority 1989.