Arizona Administrative Code › Title 18 - ENVIRONMENTAL QUALITY › Chapter 12 - DEPARTMENT OF ENVIRONMENTAL QUALITY - UNDERGROUND STORAGE TANKS › Article 3 - FINANCIAL RESPONSIBILITY › Section R18-12-315 - Local Government Financial Test

Current through Register Vol. 30, No. 28, July 12, 2024
A. Local government owners and operators may
				satisfy the requirements of
				R18-12-303
				by passing the financial test specified in this Section. To be eligible to use
				the financial test, local government owners and operators shall have the
				ability and authority to assess and levy taxes or to freely establish fees and
				charges. To pass the local government financial test, owners and operators
				shall meet the criteria of subsections (B)(2) and (3) based on year-end
				financial statements for the latest completed fiscal year.
B. To pass the local government financial
				test, owners and operators shall meet all of the following:
1. Local government owners and operators
				shall have the following information available, as shown in the year-end
				financial statements for the latest completed fiscal year:
a. Total revenues: consists of the sum of
				general fund operating and non-operating revenues including net local taxes,
				licenses and permits, fines and forfeitures, revenues from use of money and
				property, charges for services, investment earnings, sales such as property or
				publications, intergovernmental revenues whether or not restricted, and total
				revenues from all other governmental funds including enterprise, debt service,
				capital projects, and special revenues, but excluding revenues to funds held in
				a trust or agency capacity. For purposes of this test, the calculation of total
				revenues shall exclude all interfund transfers between funds under the direct
				control of the local government using the financial test, liquidation of
				investments, and issuance of debt;
b. Total expenditures: consists of the sum of
				general fund operating and non-operating expenditures including public safety,
				public utilities, transportation, public works, environmental protection,
				cultural and recreational, community development, revenue sharing, employee
				benefits and compensation, office management, planning and zoning, capital
				projects, interest payments on debt, payments for retirement of debt principal,
				and total expenditures from all other governmental funds including enterprise,
				debt service, capital projects, and special revenues. For purposes of this
				test, the calculation of total expenditures shall exclude all interfund
				transfers between funds under the direct control of the local government using
				the financial test;
c. Local
				revenues: consists of total revenues, as defined in subsection (B)(1)(a), minus
				the sum of all transfers from other governmental entities, including all monies
				received from federal, state, or local government sources;
d. Debt service: consists of the sum of all
				interest and principal payments on all long-term credit obligations and all
				interest-bearing short-term credit obligations. It includes interest and
				principal payments on general obligation bonds, revenue bonds, notes,
				mortgages, judgments, and interest bearing warrants. It excludes payments on
				non-interest-bearing short-term obligations, interfund obligations, amounts
				owed in a trust or agency capacity, and advances and contingent loans from
				other governments;
e. Total funds:
				consists of the sum of cash and investment securities from all funds, including
				general, enterprise, debt service, capital projects, and special revenue funds,
				but excluding employee retirement funds, at the end of the local government's
				financial reporting year. It includes federal securities, federal agency
				securities, state and local government securities, and other securities such as
				bonds, notes, and mortgages. For purposes of this test, the calculation of
				total funds shall exclude agency funds, private trust funds, accounts
				receivable, value of real property, and other non-security assets.