Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 8 - Drinking Water Systems Improvements Revolving Loan Fund Program Regulations › Section 33-8-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
The amount of the FFY-2017 Cap Grant from EPA for Mississippi
				is not known at this time; therefore, the grant amount received by Mississippi
				in FFY-2016 will be used in this IUP for planning purposes until the actual Cap
				Grant amount is provided. A Cap Grant amount of $8,607,000 is used for these
				purposes. Funding amounts and their use are outlined in Appendix A.
Using an anticipated FFY-2017 EPA Capitalization Grant
				allotment for Mississippi of $8,607,000 a 20% state match of $1,721,400 is
				required; this provides an anticipated amount of $10,328,400 for both loans and
				set-aside activities.
With $2,108,680 being utilized for set-aside activities
				$8,219,720 will remain 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) will also be available as additional funding sources.
The FFY-2017 "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
If the FFY-2017 Capitalization Grant for Mississippi is
				$8,607,000 the state match requirement to federal grant funds (cash draw ratio)
				will be 20.94% state match funds to 79.06% federal grant funds; this
				requirement will be stated in the grant application.
2. State Match Requirements
Until 2014 the state 20% match was provided through 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 1 
				st 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 1 
				st 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 1 
				st 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 4 
				th 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 4 
				th 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 FF Y-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 (House Bill No. 1495) 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). The total of all the state match funds matched
				all outstanding EPA Grant funds; the remaining portion of the FFY-2013 Cap
				Grant ($6,727,455) and the total FFY-2014 Cap Grant ($9,159,000). The
				$3,180,000 of state funds was used as follows.
* $1,345,491 matched the remainder of the FF Y-2013 Cap Grant
				amount ($6,727,455).
* $1,831,800 matched 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.
During the 2015 Regular Legislative Session, the State
				Legislature (House Bill No. 1555) authorized $1,200,000 in direct funding for
				the DWSRF program; however, in July 2015 due to a shortfall in State funds the
				authorized $1,200,000 was reduced by $99,520.00 to $1,100,479.80. In January
				2016, due to a continuing shortfall in State revenue the Governor mandated an
				additional $18,000 be reduced from the State match funds authorized by the 2015
				Legislature, this reduced the authorized State match to $1,082,479.80. In March
				2016, $35,509.77 was returned to the State match funds; in April 2016 an
				additional $5,180.00 was removed from the State match funds; then in May 2016
				$64,010.43 was returned to the State match funds. With all the removals and
				returns the final amount provided by the 2015 State Legislature was $1,176,820.
				In September 2015, EPA reduced the amount of the FFY-2015 Federal Cap Grant to
				$9,099,000 at the award of the FFY-2015 Cap Grant to comply with Federal debt
				reduction requirements; therefore, a 2015 State match of only $1,819,800 was
				needed for the FFY-2015 Cap Grant. The difference between the required 2015
				State match and the available 2015 State match is $642,980.00. To provide the
				remainder of the required 2015 State match for the FFY-2015 Cap Grant, the
				following amounts were available or transferred in 2015 from the Drinking Water
				Systems Emergency Loan (DWSELF) Fund;
* $2,709 remaining from a DWSELF transfer for the FFY-2014 Cap
				Grant match.
* $728,611.20 transferred from the DWSELF Fund in August 2015
				for the original FFY-2015 Cap Grant amount match.
* $6,000 transferred from the DWSELF Fund in February 2016
				after the second reduction in the FFY-2015 Cap Grant match by the State.
The transfers from the Drinking Water Systems Emergency Loan
				Fund (DWSELF) in 2015 provided an amount of $737,320.20; only $642,980.00 is
				required, therefore, an amount of $94,340.20 remains to be used as match for
				the FFY-2016 Capitalization Grant.
During the 2016 Regular Legislative Session, the State
				Legislature (House Bill No. 1651 Adopted ) authorized $1,220,000 in direct
				funding for the DWSRF program. The FFY-2016 EPA Cap Grant amount is $8,607,000;
				the required State match amount is $1,721,400. In September 2016 due to a
				continuing shortfall in State revenue the Governor mandated that the funds
				authorized by the 2016 Legislature be reduced by $19,834 to $1,200,166. In
				January 2017 due to the continuing shortfall in State revenue the Governor
				mandated a second reduction in the amount of $17,746; this reduced the
				available State funds to $1,182,420. With the $94,340.20 remaining from the
				match funds for the FFY-2015 EPA Cap Grant, an additional $444,639.80 will be
				needed as State match for the FFY-2016 Capitalization Grant; the Board will be
				requested to authorize the use of additional funds from DWSELF as the State
				match.
It is anticipated that the State Legislature will continue to
				provide a direct appropriation for the State's 20% match portion of the
				FFY-2017 EPA Capitalization Grant. If this happens, the match amount would be
				$1,721,400 for a grant amount of $8,607,000.
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.