§404.39. What factors will Reclamation consider in evaluating my capability to pay 25 percent or more of the construction costs?
43 C.F.R. § 404.39
Reclamation will consider the following factors:
Economic factors for the project area, relative to the state average, including—
Per capita income;
Median household income; and
The poverty rate;
The ability of the project sponsor to raise tax revenues or assess fees such as user fees and ad valorum taxes or issue bonds;
The strength of the project sponsor financial statements in comparison to other similar entities over the previous 4 years, including a review of:
Current (includes cash and inventory) and non-current assets (property, plants etc.);
Net Assets (total assets minus total liabilities);
Changes to net assets;
Operating revenues (water and power sales);
Operating expenses (variable costs and depreciation, maintenance and repair);
Cash flow from operating activities (positive value from water sales minus payments to supplies and employees);
Current (current bonds payable and accounts payable) and non-current liabilities (long term debt payable);
Outstanding debts and all other financial obligations;
Collateral/equity as appropriate;
Cash flows from capital and related financing activities (negative value from principle paid on bonds and interest payments);
Net cash flow; and
Any non-operating revenues and expenses;
Funding commitments from non-Federal sources, other than the non-Federal project sponsor, including resources committed by state, county, or local governments;
The existing cost of water and the cost to develop new water supplies in the region; and
The impact of the proposed project on water rates;
The projected impact of the proposed project on the non-Federal project sponsor's ability to raise or generate revenues;
The non-Federal project sponsor's financial history including their past performance on repaying loans and other debts; and
Any other financial means of the non-Federal project sponsor that is not captured in this subsection.
Notes, amendments, and revision history
Authority
Authority: Public Law 109-451 (43 U.S.C. 2401 et seq. )
Source
Source: 73 FR 67782, Nov. 17, 2008, unless otherwise noted.