(a) All applications will be rated in accordance with the rating system established by the secretary. Criteria used to rate applications will generally include the following:

1. (1) Demonstrated need for the project.
2. (2) The likelihood of timely completion of the project.
3. (3) The potential for municipal cost savings, productivity enhancement or streamlined administration.
4. (4) The number of municipalities involved or the size of the service area.
5. (5) The likelihood of instituting permanent changes to municipal structure or service delivery resulting in cost savings, enhanced productivity or streamlined administration over the long term.
6. (6) The ability of the project to serve as a demonstration program for other municipalities to reduce costs, enhance productivity or streamline administration.
7. (7) Whether the project would advance other State or municipal programs for municipal efficiency and cost savings.
8. (8) The geographic distribution of other fundable projects in any given application cycle.

(b) In the selection of grant awards for applications submitted on or after April 1, 2007, priority shall be given to applications that:

1. (1) Include a municipality that meets any of the following fiscal distress criteria;

   1. (i) Full valuation per capita less than 50 percent of the average full valuation per capita for municipalities in New York State.
   2. (ii) A population at least 10 percent less than the population as reported in the 1970 Federal decennial census.
   3. (iii) Greater than 60 percent real property tax limit exhausted in the most recent local fiscal year as reported to the Division of the Budget by the State Comptroller.
   4. (iv) A percentage of individuals living below the poverty level, as reported for a municipality in the most recent Federal decennial census, in excess of 150 percent of the average percentage of individuals living below the poverty level as reported for municipalities in the most recent Federal decennial census.
2. (2) Plan or implement the consolidation, merger or dissolution of municipalities.
3. (3) Share services between school districts and other municipalities, including application submitted by boards of cooperative educational services.
4. (4) Share highway services, including joint highway equipment purchases, capital improvements that benefit two or more municipal highway departments, contractual services between two or more municipal highway departments or for the consolidation of two or more municipal highway departments.
5. (5) Consolidate health benefit plans offered by two or more municipalities.
6. (6) Encourage countywide shared services, where a county develops a countywide shared services plan under which municipalities in such county agree to participate in shared services, including, but not limited to, public safety, purchasing, payroll and real property tax assessment.