Iowa Administrative Code › Agency 567 - Environmental Protection Commission › Title IX - Spills and Hazardous Conditions › Chapter 136 - Financial Responsibility for Underground Storage Tanks › Rule 567-136.14 - Local Government Financial Test

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A local government owner or operator may
				satisfy the requirements of rule 567-136.4(455B) by passing the financial test
				specified therein. To be eligible to use the financial test, the local
				government owner or operator must have the ability and authority to assess and
				levy taxes or to freely establish fees and charges.
To pass the local government financial test, the owner or
				  operator must meet the criteria of subrules 136.14(3) and 136.14(4) based on
				  year-end financial statements for the latest completed fiscal year.
(2) The local government owner or
				operator must have the following information available, as shown in the
				year-end financial statements for the latest completed fiscal year:
a.
Total revenues.
Total
				revenues consist of the sum of general fund operating and nonoperating revenues
				including net local taxes, licenses and permits, fines and forfeitures,
				revenues from use of money and property, charges for services, investment
				earnings, sales (property, publications, etc.), intergovernmental revenues
				(restricted and unrestricted), 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
				transfers between funds under the direct control of the local government using
				the financial test (interfund transfers), liquidation of investments, and
				issuance of debt.
b.
Total
				expenditures.
Total expenditures consist of the sum of general fund
				operating and nonoperating 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 transfers between funds
				under the direct control of the local government using the financial test
				(interfund transfers).
c.
Local revenues.
Local revenues consist of total revenues, as
				defined in paragraph 136.14(2)
"a,"
minus the sum of all
				transfers from other governmental entities, including all moneys received from
				federal, state, or local government sources.
d.
Debt service.
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; includes interest and principal payments on general obligation
				bonds, revenue bonds, notes, mortgages, judgments, and interest-bearing
				warrants; and excludes payments on noninterest-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.
Total funds
				consist 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. Total funds include 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 nonsecurity assets.
f.
Population.
Population
				consists of the number of people in the area served by the local
				government.