Wyo. Code R. 060-0003-2
Loan and Investment Board
Chapter 2: Wyoming Joint Powers Act Loans
Effective Date: 09/25/2023 to Current
Rule Type: Current Rules & Regulations
Reference Number: 060.0003.2.09252023
Wyoming Joint Powers Act Loans
This Chapter is adopted pursuant to Wyoming Statute (W.S.) 16-1-109. Pursuant to 2023 Wyo. Sess. Laws Chapter 135, § 4(a)(i), the Board shall not authorize, approve, structure, guarantee or finance a Wyoming Joint Powers Act loan on and after April 1, 2023.
(a) In addition to the definitions in Chapter 1, as used in this Chapter:
(i) “Administrator” means the Administrator of the Wyoming Department of Transportation (WYDOT) Aeronautics Division.
(ii) “Agencies” means Wyoming counties, municipal corporations, school districts, community college districts, University of Wyoming, special districts and Joint Powers Boards specifically involved in providing facilities or functions enumerated in W.S. 16-1-104(c).
(iii) “Commission” means the Wyoming Aeronautics Commission.
(iv) “Division” means the WYDOT Aeronautics Division.
(v) “Revenue-generating public facilities” means facilities owned by the applicant that generate revenue under this Chapter from user fees or assessments paid by the beneficiaries of the facilities.
The Board shall extend loans under the provisions of this Chapter in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of loan funds.
(a) Applicants. Agencies shall be eligible to apply for loans under this Chapter. Wyoming counties, cities and towns, and Joint Powers Boards specifically involved in providing governing authority over airports and empowered pursuant to W.S. 10-5-101 through W.S. 10-5-204 shall also be eligible to apply for loans under this Chapter. If the applicant is a special district or joint powers board, it must be legally formed and approved prior to loan application. Applicants must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit and the Wyoming Department of Revenue prior to its application being considered by the Board.
(b) Purposes. Loans may be extended for agency purposes involving the planning, construction, acquisition, improvement, emergency repair, acquisition of land for, refinancing of existing debt for, and operation of revenue-generating public facilities. Loans may also be extended to public-use airports for construction, development, and improvement of airport facilities generating user fees, except that no loans shall be extended for fuel system or fuel tank removal or for asbestos removal.
(c) The Board may refinance any delinquent Joint Powers Act loan and reamortize the loan over not more than thirty (30) years from the date of the refinancing.
(a) Applications. Separate applications shall be prepared for each project on a form provided by the Office.
(i) Applicants for a loan not related to an airport shall submit one (1) hard copy and one (1) electronic copy of their completed application to the Office.
(ii) Applicants for a loan related to an airport project shall submit one (1) hard copy and one (1) electronic copy of their completed application to the Division and the Office.
(b) Timing. Applications for loans under this Chapter must be received by the Office at least ninety (90) calendar days prior to any scheduled meeting of the Board. Applicants must cure any defects in their applications no later than forty-five (45) calendar days before any regular or special meeting of the Board.
(i) Applications for airport project loans under this Chapter must be received by the Division at least fifteen (15) working days before the next regular Commission meeting.
(c) Information Required. The following information shall be provided in all application packages:
(i) An application properly executed by the officers of the applicant on a form provided by the Office.
(ii) A full description of the proposed project and detailed cost estimate, including a licensed engineer's statement of feasibility of the project, if applicable.
(iii) A project schedule which includes design, commencement date and completion date for the project.
(iv) The loan amount requested and source of repayment.
(v) A copy of the applicant's financial statements for the last three (3) years. If an independent audit has not been performed, then applicant can submit the last three (3) years of Financial Forms (Survey of Local Government Finances F-32 and F-66WY4 for special districts, Annual City and Town Financial Report F-66WY2 for Cities and Towns).
(vi) A copy of the applicant's annual budget for the preceding and current fiscal years that includes, but is not limited to the following information:
(A) Assessed valuation for the current and two preceding fiscal years;
(B) Total bonded and non-bonded indebtedness, including outstanding principal balance, interest rate, and remaining term;
(C) Total mills levied within the jurisdiction of the applicant for the current and two preceding years; and, a breakdown of the mill levy for the current fiscal year;
(D) Sales and use tax imposed within the jurisdiction of the applicant; and
(E) A summary of the applicant's total investments and cash balances for the two preceding fiscal years.
(vii) If the application is for a water or sewer project, the applicant's current water and sewer rates, tap fees and an indication if water meters have been installed.
(viii) If the application is for a street and road project, a Completed Street Questionnaire is required.
(ix) If the application is for Fire Apparatus Projects, a Completed Fire Apparatus Questionnaire is required.
(x) Applicant shall provide all other documentation and information the Office, Division or Commission deems reasonable, prudent and necessary.
(xi) A description of other project funding sources, committed or pending, and the portion of the project cost expected to be funded from each source, including any future loan applications under this Chapter. A copy of the funding commitment from the other funding sources must be provided.
(xii) If applicable, a copy of the joint powers agreement approved by the Attorney General and a copy of the certificate of organization filed with the Secretary of State.
(xiii) If the applicant is a special district, the application shall also include documentation of the formation of the special district and certification by the Board of County Commissioners that the special district currently exists.
(xiv) A copy of the 'Standard Resolution' form provided by the Office authorizing the filing of the application and providing for a dedicated source of repayment acceptable to the Office.
(d) Preliminary Review. Within ten (10) working days of receiving an application for a loan, the Office shall notify the applicant, in writing, if the application lacks any of the items required in subsection (c) of this section. The applicant shall have ten (10) working days to submit the required information.
(i) Within ten (10) working days of receiving an application for an airport related loan, the Division shall notify the applicant, in writing, if the application lacks any item required in subsection (c) of this section. The applicant shall have ten (10) working days to submit the required information.
(e) Incomplete Applications. Incomplete applications, those missing one or more of the information items requested and/or failing to meet established deadlines, shall not be presented to the Board for consideration.
(a) The Office shall evaluate applications and the Director will formulate a recommendation to the Board utilizing the following criteria:
(i) Whether the applicant’s dedicated source of repayment will be sufficient so that the loan may be considered a reasonable and prudent investment of state permanent funds.
(ii) Whether the applicant is current on all its repayment obligations to the Board.
(iii) The extent to which the applicant is utilizing, or plans to utilize, available and qualified Wyoming based professional firms and contractors on the project.
(iv) Whether the applicant is ready to proceed with construction or implementation of the project.
(v) Whether the applicant has established an adequate operations and maintenance costs fund for the project for which applicant seeks funding.
(vi) Whether the project is appropriately sized for the population to be served by the project.
(vii) Recommendations from the Commission or other interagency consultations.
(b) The Division shall evaluate the applications for airport related projects and the Administrator shall formulate a recommendation to the Commission using the following criteria:
(i) Whether the user fees or assessments generated by the project will be sufficient to justify the loan as a reasonable and prudent investment of state funds.
(ii) Whether the proposed project is in compliance with the current Division accepted Airport Layout Plan and the overall development of the airport.
(iii) Whether the applicant is meeting any and all current and past repayment obligations to the Commission.
(iv) The proposed project’s merit in relation to the overall state system planning and its usefulness in achieving state goals.
(c) Interagency Consultation. The Director shall request that pertinent state agencies assist in the review of the applications and provide comments to the Office for Board consideration.
(a) The Commission shall consider each loan application for an airport related project, allow for comments from the applicant and the Administrator, recommend the loan amount and comment on the appropriateness and nature of the type of security offered for the loan. The Commission shall then recommend approval or disapproval of the loan request to the Board. The Commission’s recommendation shall be written and include the recommended loan amount, loan term in years and document any concerns.
(b) The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the amount of the loan, the term of the loan, and the type of security required to secure the loan pursuant to W.S. 16-1-109(d)(ii).
The interest rate for loans under this Chapter shall be pursuant to Chapter 14 of the rules as established by the Board and a 1% origination fee shall be collected on the amount approved.
(a) The Board may require a first-position security interest in the revenue-generating facility, user fees, assessments and any other dedicated source of repayment.
(b) For loans related to airport projects, the Board and Commission reserve the right to withhold the applicant’s yearly state grant funding and apply those funds to the unpaid loan balance if the borrower defaults on the loan.
(c) During the life of the loan, the applicant shall:
(i) Collect the dedicated source of repayment for the term of the loan, or until the loan is paid in full.
(ii) If assessments are included as part of the dedicated source of repayment, applicant shall establish an annual assessment equal to, or greater than, the amount of the annual debt service payment on the loan. This assessment schedule will be filed on or before February 15th of each year for the full term of the loan, a copy of which will be sent to the Office.
(d) If the Board has required a lien on the facilities, the applicant shall for the life of the loan:
(iv) For airport loans, adhere to and enforce the sponsor's assurances according to the certificate of state airport loan.
(e) If at any time the applicant is found in noncompliance with the above requirements, they will be given thirty (30) days to cure the deficiencies. If after thirty (30) days, the deficiencies are not cured the Board may call the loan.
In the event of a default on an airport related loan, the Office will consult with the Commission on the appropriate way to collect the debt in compliance with state and federal laws.
Loan proceeds shall be disbursed solely for the approved loan purposes and in accordance with the loan terms. Borrower shall submit all requests for payment on a form provided by the Office, with supporting documentation, as required by the Director.
(a) The Board or Commission may, at its expense, conduct an independent audit of the loan recipient's records and inspect the construction and operation of the project.
(b) On an annual basis, records of the loan recipient shall be, at a minimum, compiled by an independent accounting firm. Notification of compliance shall be made to the Board in the form of a Compilation, Review or Audited Financial Statement, per W.S. 16-1-109(d)(iv).