Wyo. Code R. 060-0003-3
Loan and Investment Board
Chapter 3: Federal Mineral Royalty Capital Construction Account Grants
Effective Date: 03/03/2021 to Current
Rule Type: Current Rules & Regulations
Reference Number: 060.0003.3.03032021
(a) This Chapter is adopted pursuant to Wyoming Statute (W.S.) 9-4-604 and Laws 1979, Chapter 160, Section 6.
In addition to the definitions in Chapter 1, as used in this Chapter:
(a) 'Special district' means hospital, fire protection, sanitary and improvement, solid waste disposal, improvement and service, and water and sewer districts.
(b) 'Emergency vehicles' means new and complete fire trucks, police vehicles, and ambulances owned by the applicant, and under original manufacturer's warranty. Fire trucks must also meet current National Fire Protection Association (NFPA) standards, except for wildland firetrucks. The Board may authorize grants for used fire and police vehicles.
(c) 'Eligible project costs' means total project cost, less ineligible project costs.
(d) 'Business Days' means Monday through Friday, except for federal or state holidays.
(a) The Board shall award grants 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 grant funds.
The Board may award a loan instead of a grant in certain situations.
(a) Loan Conditions. When the Board approves a loan, the following conditions shall be included in the award and met prior to the closing of the loan:
(i) Pledge of a dedicated source of repayment that is adequate to service the debt without creating a hardship to the community, as determined by the financial analysis performed by the Office;
(ii) The Attorney General shall review the application to certify the legality of the transaction and to determine if an election is required by law; and
(iii) If the loan is to purchase land/building or construct a building, a mortgage will be taken on the said asset. The Board will require a first position lien on the property.
(i) Interest rate. The interest rate for each loan shall be set by the Board. The interest rate shall be set between zero percent (0%) and the average rate of return realized on all Permanent Mineral Trust Fund investments as determined by the State Treasurer for the five (5) calendar years immediately preceding the year in which the loan is made; no equity requirement.
(ii) Length. The term of each loan shall be set by the Board with due regard given to repayment ability and the security offered, but in no event shall the term exceed ten (10) years.
(iii) Repayment. Loans shall be amortized to ensure repayment of all principal and accrued interest is repaid during the approved term of the loan. Payments shall begin within one (1) year of substantial completion, initiation of operations or final draw of loan funds whichever occurs first.
(a) Applicants. Incorporated cities and towns, counties, special districts and joint powers boards shall be eligible to apply for grants under this Chapter.
(i) If the applicant is a special district or joint powers board, it must be legally formed and approved prior to submitting an application.
(ii) An applicant must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered by the Board.
(iii) Applicants shall be allowed to submit multiple applications for fifty percent (50%) grants and up to two seventy-five percent (75%) grants for different projects at one grant meeting.
(b) Purposes. Pursuant to W.S. 9-4-604(a), the Board may award grants necessary to alleviate an emergency situation which poses a direct and immediate threat to health, safety or welfare, to comply with a federal or state mandate, or to provide an essential public service as defined in W.S. 9-4-604(p).
(i) The Board interprets the term, “federal or state mandate” as used in W.S. 9-604(a) to mean those federal or state mandates that specifically concern public health and safety.
(c) Maximum Grant Percentage. Pursuant to W.S. 9-4-604(g)(ii) and W.S. 9-4-604(h)(ii) the Board may award grants for over 50% to municipalities if the Board determines that the municipality “...either levied at least seven (7) mills for operating expenses including special district levies chargeable against the general city or town levy during the current fiscal year or is imposing the optional tax permitted by W.S.39-15-204(a)(i) or (iii) at the time of the application and is utilizing all other local revenue sources reasonably and legally available to finance the project...' The Board may make grants in excess of fifty percent (50%) to counties and special districts '...if the board determines that the applicant either levied at least eleven (11) mills for operating expenses during the current fiscal year or is imposing the optional tax permitted by W.S. 39-15-204(a)(i) or (iii) at the time of the application and is utilizing all other local revenue sources reasonably and legally available to finance the project ...' The Board shall use the following criteria to determine if applicants are utilizing all other local revenue sources reasonably and legally available to finance the project:
(i) Municipalities that meet one or both of the following criteria are eligible to receive grant assistance up to seventy-five percent (75%) of the eligible project costs: (1) Have a population of less than 1,300 according to the latest federal census. (2) Located within a county where the three-year average of the local government share of state sales and use tax per capita is less than seventy percent (70%) of the statewide average. The Office will use the three most current annual reports from the Wyoming Department of Revenue to determine the three-year average of the local government share of sales and use tax. The Office will use the current federal census to determine the per capita percentage.
(ii) Counties and special districts located within a county, whose assessed valuation is less than two and one-half percent (2.5%) of the State's total assessed valuation are eligible to receive grant assistance up to seventy-five percent (75%) of the eligible project costs. The Office will use the current annual report from the Wyoming Department of Revenue to determine assessed valuation. The Office will use the current federal census to determine population.
(iii) Application for a seventy-five percent (75%) grant precludes a simultaneous application for a fifty percent (50%) grant for the same project. However, applicants may submit multiple applications for separate projects.
(d) Ineligible Project Costs. The following project costs shall be ineligible for reimbursement from grant funds and shall be ineligible to be counted toward the applicant's match:
(i) Costs for sidewalks that are owned or maintained by a private property owner;
(ii) Costs for tap fees, sewer and water fees, and plant investment fees;
(iii) Engineering fees, including design, inspection and contract administration costs, over twenty percent (20%) of project cost;
(iv) All non-cash costs except land provided by the applicant, and used for project purposes, valued at fair market value;
(v) Costs for preparation or presentation of grant or loan applications for any source of funding;
(vi) Costs for transportation, meals, lodging, and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rates;
(vii) Costs for furnishings, supplies and tools, including but not limited to, capital equipment not part of the original project scope, hammers, furniture drapes, blinds, file cabinets, file folders, and survey stakes;
(viii) Legal fees;
(ix) Costs related to issuance of bonds;
(x) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;
(xi) Costs to establish and form special districts or joint powers boards;
(xii) Costs incurred prior to grant award, except costs for architectural and engineering design or in emergency situations;
(xiii) Costs for a contingency or extra work allowances includes but is not limited to, technology fees and inflation fees in excess of 10% of estimated construction costs;
(xiv) Cost of elections;
(xv) Costs for change orders not approved by the Office;
(xvi) Costs associated with the applicant’s own employees and equipment; and
(xvii) Markups to engineering and/or architects of sub-consultant and other outside charges.
(a) Applications. Separate applications shall be prepared for each project. Applicants shall submit one (1) original and two (2) copies of their completed application to the Office. Applications shall be properly executed by the officers of the applicant.
(b) Timing. The Board shall meet at least one time annually, either in February or June, as funding levels allow to consider applications for grants under this Chapter. For Mineral Royalty Grant meetings held in February, applications must be received by the third Thursday of the preceding September. For Mineral Royalty Grant meetings held in June, applications must be received by the third Thursday of the preceding February. Applications for emergency consideration must be received at least fifteen (15) Business Days prior to any regular meeting of the Board.
(c) Renewal of Applications. Applications will not be retained by the Office. A new application shall be submitted for each Board meeting.
(d) Information Required for All Applications. The following information shall be provided by all applicants:
(i) A complete application on a form provided by the Office;
(ii) A detailed project budget broken into at least six (6) month intervals delineating all costs of the proposed project and the method by which the project costs were estimated;
(iii) A licensed engineer’s statement of the feasibility of the project, except for the purchase of emergency vehicles;
(iv) Copies of funding commitments from all project funding sources, including the applicant, to demonstrate commitment to the project;
(v) If the applicant is a special district, a copy of the resolution that shows formation of the special district and certification from the Board of County Commissioners that the special district currently exists;
(vi) If the applicant is a joint powers board, a copy of the certificate of organization filed with the Secretary of State, and a copy of an executed joint powers agreement approved by the Attorney General;
(vii) A standard resolution authorizing the filing of the application on a form provided by the Office;
(viii) If an applicant submits multiple applications under this Chapter for consideration at one meeting, a priority ranking of the multiple applications as established by the applicant;
(ix) If the project is needed to meet federal or state health and safety requirements, documentation of the specific requirements and an explanation of how the project addresses the requirements;
(x) For applications submitted by a special district, either standing alone or as a member of a joint powers board, the written review as required by W.S. 9-4-604(h); and
(xi) Other applicable information as requested by the Office.
(e) Additional Information Required.
(i) If the grant request is for water facilities,
(A) Whether water meters have been installed or will be installed and if they are being or will be used for billing;
(B) Whether the applicant will require the owners of all new additions of land to the city or town to pay all costs of expanding the water system within and to the boundaries of the addition; and
(C) Whether water rates, tap fees, and plant investment fees are in effect or are to be adopted, and an analysis of whether the water rates will be adequate to finance the operation and maintenance of the system;
(ii) If the grant request is for sewer facilities,
(A) Whether the applicant will require the owners of all new additions of land to the city or town to pay all costs of expanding the sewer system within and to the boundaries of the addition; and
(B) Whether sewer rates, tap fees, and plant investment fees are in effect or are to be adopted, and an analysis of whether the sewer rates will be adequate to finance the operation and maintenance of the system.
(f) Preliminary Review. Within forty-five (45) Business Days of receipt of an application, the Office shall notify the applicant, in writing, if the application lacks any of the items required in subsections (d) and (e) of this section. The applicant shall have ten (10) Business Days to submit the required information.
(g) False or Misleading Statements. Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application. Additionally, if it is determined that requested reimbursements were not legitimate and eligible charges, the applicant shall pay those funds back to the Office.
(h) Incomplete Applications. Incomplete applications, those missing one (1) or more of the information items requested and or failing to meet established deadlines, shall not be presented to the Board for consideration.
(a) Criteria. The Board shall evaluate applications utilizing the following criteria:
(i) The extent of match committed to the project from all sources;
(ii) Whether the applicant has made a significant commitment of local resources;
(iii) Whether the applicant has approved matching funds for the project from other than state grants;
(iv) Whether the project is appropriately sized in relation to the population to be served by the project;
(v) The relative urgency of the project;
(vi) Whether the applicant is current on all its repayment obligations to the Board;
(vii) The financial need of the applicant, as determined by the Board;
(viii) The percentage of the applicant’s population directly served by the project;
(ix) Whether the project is ready to be constructed or still needs to be designed;
(x) Historical level of funding funder this Chapter; and
(xi) Whether the applicant has developed a capital improvement plan or an asset management plan.
(a) The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the maximum amount of the grant and the percent of eligible project costs that will be paid by the grant.
(a) Grant Disbursement. Grant funds shall be disbursed to the applicant only as needed to discharge obligations incurred in accordance with the Board approved percentage split of eligible project costs. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing.
(b) Fund Reversion.
(i) If the Director determines that the project has not been commenced within one (1) year from the date the grant is approved, the grant will automatically expire. Based upon information supplied by the grantee, the Director may grant an extension of time in which to commence the project.
(ii) If the Director determines that the project has not been completed within a reasonable time, he shall notify the grantee in writing at least thirty (30) Business Days prior to presenting the matter for Board review. The Board, upon review of the project circumstances, may terminate or modify the grant award.
(iii) If the Director determines that the project is complete, but the full amount of the grant has not been expended, the Office shall notify the grantee of this determination. Thirty (30) Business Days following the notification, the unused portion of the grant or loan shall revert to uncommitted status.
(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.
(a) Amendments to these rules do not apply to applications filed after the effective date for phased construction projects which have already received partial funding under this Chapter.