1. (a) The applicant shall establish:

   1. (1) A schedule of user charges that is designed to generate sufficient revenues to cover operation and maintenance expenses as well as any allocable portion of capital improvements; and
   2. (2) A dedicated source or sources of revenue to repay the loan.
2. (b) For purposes of (a)(2), above, a revenue source shall be considered dedicated when the recipient passes or adopts an ordinance or other binding resolution committing the source of funds for repayment to the DWSRF.
3. (c) The applicant’s ordinance or other binding resolution dedicating a source of funding for repayment of the loan shall be in effect and binding on the applicant prior to the loan agreement taking effect.

4. (d) For an applicant that is a governmental entity, the verification required by Env-Dw 1106.01(g) shall be made using “Form 5A: Financial Certification for Publicly-Owned Systems”, NHDES-W-03-182, January 2020, available at https://onlineforms.nh.gov/?FormTag=NHDES-W-03-182, by:

   1. (1) Identifying the source of repayment;
   2. (2) Stating whether or not the applicant has existing debt outside the New Hampshire municipal bond bank and, if so, the amount of the debt and whether the debt is rated and, if the debt is rated, the rating; and

   3. (3) Certifying that:

      1. a. The applicant has the financial capability to support both the project loan repayment and continuing operation and maintenance of its water system; and
      2. b. The applicant will conduct and report on a financial audit, including compliance and controls, in any fiscal year that it receives federal funds in excess of the threshold amount set under the federal Single Audit Act in OMB Circular A-133 or successor document; and

5. (e) For an applicant that is a non-governmental entity, the verification required by Env-Dw 1106.01(g) shall be made using “Form 5B: Financial Certification for Privately Owned Systems”, NHDES-W-03-183, January 2020, available at https://onlineforms.nh.gov/?FormTag=NHDES-W-03-183, by:

   1. (1) Identifying the source of repayment; and

   2. (2) Certifying that:

      1. a. The applicant has the financial capability to support both the project loan repayment and continuing operation and maintenance of its water system; and
      2. b. The applicant will conduct and report on a financial audit, including compliance and controls, in any fiscal year that it receives federal funds in excess of the threshold amount set under the federal Single Audit Act in OMB Circular A-133 or successor document; and

Source. (See Revision Note #1 and Revision Note #2 at chapter heading for Env-Dw 1100) #13160, eff 1-20-21