1. (1) Board Priority Determination. To determine an applicant's priority for financial assistance, the Board shall consider the following.

   1. (a) The applicant's ability to obtain funds for the drinking water project from other sources or to finance such project from its own resources.
   2. (b) The applicant's ability to repay the loan or other project obligations.
   3. (c) Whether a good faith effort has been made to secure all or part of the services needed from the private sector.

   4. (d) Whether the drinking water project:

      1. (i) meets a critical local or state need;
      2. (ii) is cost effective;
      3. (iii) will protect against present or potential hazards;
      4. (iv) is needed to comply with the minimum standards of the Federal Safe Drinking Water Act, 42 U.S.C. Section 300(f) et. seq. or similar or successor statute;
      5. (v) is needed to comply with the minimum standards of the Utah Safe Drinking Water Act, Title 19, Chapter 4, or similar or successor statute; or
      6. (vi) is needed due to an Emergency.
   5. (e) The overall financial impact of the proposed project on the citizens of the community, including direct and overlapping indebtedness, tax levies, user charges, impact or connection fees, or special assessments, resulting from the proposed project, and anticipated operation and maintenance costs versus the median income of the community.
   6. (f) Consistency with other funding source commitments which may have been obtained for the project.
   7. (g) The point total from an evaluation of the criteria listed in Table 1.

   8. (h) Other criteria that the Board may consider appropriate.

      TABLE 1NEED FOR PROJECT1. PUBLIC HEALTH AND WELFARE, SELECT ONEPOINTSA. There is evidence that waterborne illnesses have occurred15B. There are reports of illnesses which may be waterborne10C. No reports of waterborne illness, but high potential for such exists5D. No reports of possible waterborne illness and low potential for such exists02. WATER QUALITY RECORD, SELECT ONEA. Primary Maximum Contaminant Level (MCL) violation more than 6 times in preceding 12 months15B. In the past 12 months violated a primary MCL 4 to 6 times12

2. C. In the past 12 months violated a primary MCL 2 to 3 times or exceeded the Secondary Drinking Water Standards by double9D. In the past 12 months violated MCL 1 time6E. Violation of the Secondary Drinking Water Standards5F. Does not meet all applicable MCL goals3G. Meets all MCLs and MCL goals03. VERIFICATION OF POTENTIAL SHORTCOMINGS, SELECT ONEA. Has had sanitary survey within the last year5B. Has had sanitary survey within the last five years3C. Has not had sanitary survey within last five years04. GENERAL CONDITIONS OF EXISTING FACILITIES, SELECT ALL APPLICABLE THAT PROJECT WILL RESOLVEA. The necessary water treatment facilities do not exist, not functioning, functioning but do not meet the requirements of the Utah Public Drinking Water Rules (UPDWR)10B. Sources are not developed or protected according to UPDWR10C. Source capacity is not adequate to meet current demands and system occasionally goes dry or suffers from low pressures10D. Significant areas within distribution system have inadequate fire protection8E. Existing storage tanks leak excessively or are structurally flawed5F. Pipe leak repair rate is greater than 4 leaks per 100 connections per year2G. Existing facilities are generally sound and meeting existing needs05. ABILITY TO MEET FUTURE DEMANDS, SELECT ONEA. Facilities have inadequate capacity and cannot reliably meet current demands10B. Facilities will become inadequate within the next three years5C. Facilities will become inadequate within the next five to ten years36. OVERALL URGENCY, SELECT ONEA. System is generally out of water. There is no fire protection or water for flushing toilets10B. System delivers water which cannot be rendered safe by boiling10C. System delivers water which can be rendered safe by boiling8D. System is occasionally out of water5E. Situation should be corrected, but is not urgent0TOTAL POSSIBLE POINTS FOR NEED FOR PROJECT100

   1. (2) Drinking Water Board Financial Assistance Determination. The amount and type of financial assistance offered will be based on the following considerations.

      1. (a) An evaluation based upon the criteria in Table 2 of the applicant's financial condition, the project's impact on the community, and the applicant's commitment to operating a responsible water system.

         The interest rate to be charged by the Board for its financial assistance will be computed using the number of points assigned to the project from Table 2 to reduce, in a manner determined by Board resolution from time to time, the most recent Revenue Bond Index RBI as published by the Bond Buyer's Guide. The interest rate so calculated will be assigned to the financial assistance.

         For hardship grant consideration, exclusive of planning and design grants or loans described in Sections 309-700-6 through R309-700-8, the estimated annual cost of drinking water service for the average residential user should exceed 1.75% of the median adjusted gross household income from the most recent available State Tax Commission records or the local median adjusted gross income (MAGI) is less than or equal to 80% of the State's median adjusted gross income. When considering funding for planning and design grants and loans described in Sections 309-700-6 through R309-700-8, the Board will consider whether or not the applicant's local MAGI meets the criteria for hardship grant funding. If, in the judgment of the Board, the State Tax Commission data is insufficient, the Board may accept other measurements of the water users' income, including a local income survey or questionnaire when there is a significant difference between the number of service connections for a system and the number of tax filings for a given zip code or city. The Board will also consider the applicant's level of contribution to the project.

         TABLE 2FINANCIAL CONSIDERATIONS1. COST EFFECTIVENESS RATIO, SELECT ONEPOINTSProject Cost per benefitting connectionA. $0 to $50016B. $501 to $1,50014C. $1,501 to $2,00011D. $2,001 to $3,0008E. $3,001 to $5,0004F. $5,001 to $10,0001G. Over $10,00002. CURRENT LOCAL MEDIAN ADJUSTED GROSS INCOME (MAGI), SELECT ONEA. Less than 70% of State Median AGI19B. 71 to 80% of State Median AGI16C. 81 to 95% of State Median AGI13D. 96 to 110% of State Median AGI9E. 111 to 130% of State Median AGI6F. 131 to 150% of State Median AGI3G. Greater than 150% of State Median AGI03. APPLICANT'S COMMITMENT TO PROJECTPROJECT FUNDING CONTRIBUTED BY APPLICANT, SELECT ONEA. Greater than 25% of project funds17B. 15 to 25% of project funds14C. 10 to 15% of project funds11D. 5 to 10% of project funds8E. 2 to 5% of project funds4F. Less than 2% of project funds04. WATER BILL, INCLUDING TAXES, AFTER PROJECT IS BUILT RELATIVE TO LOCAL MEDIAN ADJUSTED GROSS INCOME, SELECT ONEA. Greater than 2.50% of local median MAGI16B. 2.01 to 2.50% of local median MAGI12C. 1.51 to 2.00% of local median MAGI8D. 1.01 to 1.50% of local median MAGI3E. 0 to 1.00% of local median MAGI0

   2. 5. SPECIAL INCENTIVES, SELECT ALL THAT APPLY:The Applicant has the following:A. A replacement fund receiving annual deposits of about 5% of the system's annual drinking water (DW) budget and fund has already accumulated a minimum of 10% of said annual DW budget in this reserve fund.5B. In addition to item 5.A., accumulated an amount equal to at least 20% of its annual DW budget in its replacement fund.5C. Created or enhanced, or will create or enhance, a regionalization plan.16D. Implemented a rate structure encouraging conservation.6TOTAL POSSIBLE POINTS FOR FINANCIAL NEED100

      1. (b) Optimizing return on the security account while still allowing the project to proceed.
      2. (c) Local economic conditions.
      3. (d) Cost effectiveness evaluation of financing alternatives.
      4. (e) Availability of funds in the security account.
      5. (f) Environmental need.
      6. (g) Other criteria the Board may consider appropriate.

KEY: financial assistance, loans, interest buy-downs, credit enhancements, hardship grants

Date of Last Change: May 22, 2023

Notice of Continuation: February 10, 2025

Authorizing, and Implemented or Interpreted Law: 19-4-104; 73-10c; 73-10g-5