(a) All applications for general planning, efficiency implementation, and 21st century demonstration grants will be rated in accordance with the rating system established by the secretary. Criteria used to rate applications will generally include the following. Different weighting and additional criteria may be applied for 21st century demonstration project grant applications:

1. (1) demonstrated need for the project;
2. (2) the likelihood of timely completion of the project;
3. (3) the potential for ongoing 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) High priority planning grants are not subject to the above general review and approval criteria.

1. (1) In awarding high priority planning grants, the secretary may reserve portions of the money allocated for different categories of plans or studies in order to provide for a variety of types of applications to be funded.
2. (2) Applicants for high priority planning grants will be required to meet deadlines for actions on development of work plans and execution of contracts with the state in order to retain the grant award. Funding awarded to applicants who do not meet established deadlines may be returned to the funding pool for use by other eligible applicants. Applicants who lose eligibility may reapply for available funds.

(c) In the selection of general efficiency planning grant awards, priority shall be given to applications that:

1. (1) Would result in the complete functional consolidation of a municipal service.

2. (2) Includes a municipality that meets three 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.
3. (3) Would result in contractual services between two or more municipal highway departments or the consolidation of two or more municipal highway departments; provided, however, an applicant shall indicate that an objective of the study or plan is to realize financial savings upon implementation.
4. (4) Consolidate health benefit plans offered by two or more municipalities.

(d) In the selection of efficiency implementation grant awards, priority shall be given to applications that:

1. (1) would implement the merger, dissolution or consolidation of municipalities;
2. (2) would result in the complete functional consolidation of a municipal service;
3. (3) are submitted by applicants that successfully completed a high priority planning grant or a planning grant under the shared municipal services incentive grant program for one of the identified high priority activities;
4. (4) include a municipality that meets three of the fiscal distress criteria as described in this Part;
5. (5) would result in contractual services between two or more municipal highway departments or the consolidation of two or more municipal highway departments;
6. (6) consolidate health benefit plans offered by two or more municipalities.