Wyo. Code R. 060-0003-2
Loan and Investment Board
Chapter 2: Wyoming Joint Powers Act Loans
Effective Date: 07/03/2002 to 10/19/2012
Rule Type: Superceded Rules & Regulations
Reference Number: 060.0003.2.07032002
This Chapter is adopted pursuant to W.S. 16-1-109.
(a) 'Agencies' means Wyoming counties, municipal corporations, school districts, community college districts, special districts and Joint Powers Boards created under this act specifically involved in providing facilities or functions enumerated in W.S. 16-1-104(c).
(b) 'Board' means the State Loan and Investment Board.
(c) 'Director' means the Director of the Office of State Lands and Investments.
(d) 'Office' means the Office of State Lands and Investments.
(e) '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.
(a) 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. 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 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. However, in no event shall a loan be extended to pay off or refinance a loan that was previously approved under this chapter.
(a) Applications. Separate applications shall be prepared for each project. Applicants shall submit three (3) copies of their completed application to the Office.
(b) Timing. Applications for loans under this chapter, and for emergency loan/grant combinations, must be received at least 10 working days prior to any regular monthly meeting of the Board. The Board shall meet regularly on the third Thursday of each January and July to consider applications for non-emergency loan/grant combinations. Applications for the January Mineral Royalty Grant meeting must be received by the third Thursday of the preceding October. Applications for the July Mineral Royalty Grant meeting must be received by the third Thursday of the preceding April.
(c) Information Required. The following information shall be provided in the application:
(i) A full description of the proposed project, including a licensed engineer's statement of feasibility of the project, if applicable.
(ii) The loan amount requested and source of repayment.
(iii) A copy of the applicant's annual budget for the preceding and current fiscal years and a completed financial statement provided on a 'General Financial Information' form provided by the Office, 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;
(E) A summary of the applicant's total investments and cash balances for the two preceding fiscal years;
(F) 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.
(iv) 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 other participants must be provided.
(v) 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.
(vi) 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.
(vii) Applications shall be properly executed by the officers of the applicant. A copy of the 'Standard Resolution' form provided by the Office authorizing the filing of the application shall be attached.
(d) Preliminary Review. Within 45 working days of receipt of an application for a non emergency grant/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 10 working days to submit the required information.
(e) Incomplete Applications. Incomplete applications shall not be presented to the Board for consideration.
(a) Criteria. The Office shall evaluate applications and the Director will formulate a recommendation to the Board utilizing the following criteria:
(i) Whether the user fees or assessments generated by the project 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.
(b) 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 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).
(a) 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 borrowed.
Section 9. Security Interest.
(a) The Board may require a first position security interest in the revenue generating facility and the related user fees or assessments.
(b) If the Board has required a lien on the facilities, the applicant shall:
(i) Maintain adequate insurance on the facility;
(ii) Pay all applicable taxes and assessments when due;
(iii) Maintain the facility in good condition.
Section 10. Disbursement of Loan Proceeds.
(a) At closing, the loan proceeds shall be deposited in an interest-bearing escrow account to be disbursed solely for the approved loan purposes. The borrower shall pay the costs of the escrow account. Interest earned shall be credited to the borrower. Borrower shall submit all requests for payment on a form provided by the Office, with supporting documentation, as required by the Director. The Office shall approve or disapprove pay requests in whole or in part within 5 working days and notify escrow bank of the amount to be disbursed to the borrower.
Section 11. Audits and Inspections.
(a) The Board may, at its expense, conduct an audit of the records of the applicant and inspect the construction and operation of the project.