Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 3 - Drinking Water Systems Improvements Revolving Loan Fund Program Regulations › Section 33-3-IV - Financial Status of the DWSIRLF

Current through June 25, 2024
This section outlines all sources of funding available to the
				DWSIRLF Program and indicates intended uses. This section also describes the
				financial assistance terms available through the Program.
A.
Source and Use of Funds
Funding amounts and their use are outlined in Appendix A. The
				FFY-2014 EPA Capitalization Grant allotment for Mississippi is $9,159,000 and
				with a required 20% state match of $1,831,800, provides a total of $10,990,800
				to be available for both loans and set-aside activities.
With $1,931,204 being utilized for set-aside activities,
				$9,059,596 will be used for loans to Mississippi public water supplies;
				additionally, unobligated funds from the previous year, anticipated loan
				repayments and interest earnings (all of which are not classified as state
				match) should also be available as additional funding sources.
The FFY-2014 "Set-aside" use for the standard Cap grant is
				outlined in Section V of this IUP. Necessary work plans showing utilization of
				these funds are found at the end of this IUP.
1. Federal Allotment
The FFY-2014 Capitalization Grant for Mississippi is $9,159,000
				and contains a requirement that up to 30% of the total grant funds be used as
				additional subsidy to FFY-2014 loan recipients. Based on the Cap grant and
				state match requirements, an expected cash draw ratio of 20.22% state match
				funds to 79.78% federal grant funds will be included in the grant
				application.
2. State Match
			 Requirements
The state receives its 20% state match from the sale of General
				Obligation bonds authorized by the State Legislature. The Legislature passed
				House Bill No. 209 to establish a Local Governments and Rural Water Systems
				Improvements Revolving Loan Program and authorized the sale of $15,000,000 in
				General Obligation Bonds which were deposited into the Fund. As stated in the
				law, one of the purposes for these funds is that, "All or any portion of the
				monies in the fund may be used to match any federal funds that are available
				for the same or related purposes for which funds are used and expended under
				this act." Initially, $10,000,000 of these General Obligation bonds were sold
				in May of 1997 and the proceeds were deposited into the Fund on May 29, 1997.
				Later, the remaining $5,000,000 of the original bonding authority was sold and
				deposited into the Fund on October 5, 2000.
* $3,294,840 was used as match for the FFY-1997 Cap
				grant,
* $1,654,340 was used as match for the FFY-1998 Cap
				grant,
* $1,733,900 was used as match for the FFY-1999 Cap
				grant,
* $1,802,020 was used as match for the FFY-2000 Cap
				grant,
* $1,809,480 was used as match for the FFY-2001 Cap
				grant,
* $1,610,500 was used as match for the FFY-2002 Cap
				grant,
* $1,600,820 was used as match for the FFY-2003 Cap
				grant,
* $1,494,100 was used as match for $7,470,500 of the FFY-2004
				Cap grant. During the Spring 2003 Legislative Session, the Legislature provided
				the Board with an additional $130,000 in bonding authority. Additionally,
				during the Spring 2004 Legislative Session, the Legislature authorized
				$1,613,000 in general obligation bonds. A total of $1,740,000 was deposited in
				the DWSIRL Fund during the 1st Quarter of
				FFY-2005.
* $129,776 was used as match for $648,880 of the FFY-2004 Cap
				grant.
* $36,744 was used as match for $183,720 which was the
				remaining FFY-2004 Cap grant.
* $1,573,480 was used as match for $7,867,400 of the FFY-2005
				Cap grant. During the 2006 Regular Legislative Session, the Legislature
				authorized the sale of general obligation bonds in the amount of $4,003,000,
				which were sold and deposited in the SRF Fund during the
				1st Quarter of FFY-2007. After paying the issuance
				cost of $2,128.26:
* $83,620 was used to match the remaining $418,100 of the
				FFY-2005 Cap grant.
* $1,645,860 was used to match the FFY-2006 Cap grant
				($8,229,300).
* $1,645,800 was used to match the FFY-2007 Cap grant
				($8,229,000).
* $625,591 was used to match a portion ($3,127,955) of the
				FFY-2008 Cap grant.
During the 2008 Regular Legislative Session, the State
				Legislature authorized an additional $4,000,000 in general obligation bonds
				which were sold and deposited into the Fund during the
				1st Quarter of FFY-2009. After paying issuance costs
				of $2,256.05:
* $1,003,609 was used to match the remaining FFY-2008 Cap
				grant.
* $1,629,200 was used to match the FFY-2009 Cap grant
				($8,146,000).
* $1,364,935 was used to match a portion of the FFY-2010 Cap
				grant or $6,824,675.
During the 2010 Regular Legislative Session, the State
				Legislature authorized an additional $1,400,000 in general obligation bonds
				which were sold and deposited into the Fund during the
				4th Quarter of FFY-2010. After paying issuance cost
				of $9,087:
* $1,390,913 was used to match a portion ($6,954,566) of the
				FFY-2010 Cap grant.
During the 2011 Regular Legislative Session, the State
				Legislature authorized an additional $2,700,000 in general obligation bonds
				which were sold and deposited into the Fund during the
				4th Quarter of FFY-2011. After paying issuance and
				discount costs of $13,105:
* $69,152 was used to match the remaining FFY-2010 Cap grant
				($345,760).
* $1,960,400 was used to match the FFY-2011 Cap grant
				(9,802,000).
* $1,834 was used to match $9,166 which was transferred to
				DWSIRLF from the remaining balance of the MS Operator Certification Grant for
				making additional loans.
* The remaining $655,509 was used to match $3,277,545 of the
				FFY-2012 capitalization grant leaving a balance of $6,063,455 to be
				matched.
During the 2013 Regular Legislative Session, the State
				Legislature authorized an additional $1,000,000 in general obligation bonds.
				These bonds were sold and the funds were deposited into the DWSIRLF in December
				2013. No issuance or discount costs were charged, therefore, the full
				$1,000,000 bond amount is available to match a portion ($1,902,240) of the
				FFY-2013 Cap grant and match a portion of ($3,097,760) of the remaining
				FFY-2012 Cap grant. The $1,000,000 state bond funds will be used as
				follows.
* $380,448 will match the FFY-2013 Cap Grant Set-aside amount
				($1,902,240).
* $619,552 will match $3,097,760 of the remaining FFY-2012
				Capitalization Grant.
* $593,139 from the Drinking Water Systems Emergency Loan Fund
				(DWSELF) will be used to complete the match of the remaining FFY-2012
				Capitalization Grant ($2,965,695). (That portion of the DWSELF which exceeds
				the $5,000,000 initially deposited in the fund may be used to match
				capitalization grant funds).
* $26,861 remaining from the $620,000 used from the DWSELF Fund
				will be used to match a portion ($134,305) of the FFY-2013 Cap Grant.
During the 2014 Regular Legislative Session, the State
				Legislature authorized $1,000,000 in direct funding for the DWSRF program and
				the use of $2,000,000 in an existing MSDH account for the DWSRF program.
				Additionally, $180,000 was used from the Drinking Water Systems Emergency Loan
				Fund (DWSELF). These funds will match all outstanding EPA Grant funds; the
				remaining portion of the FFY-2013 Cap Grant ($6,727,455) and match the total
				FFY-2014 Cap Grant ($9,159,000). The $3,180,000 of state funds will be used as
				follows.
* $1,345,491 will match the remainder of the FFY-2013 Cap Grant
				amount ($6,727,455).
* $1,831,800 will match the FFY-2014 Capitalization Grant
				($9,159,000).
* $2,709 from the Drinking Water Systems Emergency Loan Fund
				(DWSELF) will remain to be used as match for future Capitalization
				Grants.
3. Loan Increase
			 Reserve
Beginning in FFY-2003 the Board began to make loan awards after
				approval of the facilities plans and loan application, rather than after
				completion of the project design. This change in the loan award sequence
				increased the likelihood that bid overruns on some projects could be greater
				than the construction contingency included in the loan agreement. In order to
				be able to provide loan increases (when needed) to existing loans, the Board
				intends to set-aside the amount indicated in Appendix A for such loan
				increases; loan increases will be awarded on a first-come, first-served basis.
				Any funds not obligated for these purposes by the end of the fiscal year may be
				made available for new loan awards to the highest ranking project(s) that is
				ready for loan award at the time funds become available.