Administrative Rules of Montana › Department 36 - NATURAL RESOURCES AND CONSERVATION › Chapter 36.24 - WATER POLLUTION CONTROL STATE REVOLVING FUND ACT › Subchapter 36.24.1 - Financial Assistance › Rule 36.24.112 - TAX INCREMENT REVENUE BONDS

Current through Register Vol. 13, July 5, 2024
(1) The department
				may accept as evidence for a loan a tax increment revenue bond subject to the
				following terms and conditions:
(a) The urban
				renewal plan or industrial district ordinance shall contain a tax increment
				financing provision as authorized in
				7-15-4282 to
				7-15-4293, MCA.
(b) All tax increments shall be irrevocably
				pledged and appropriated and shall be credited as received to the debt service
				fund for the bonds and shall be applied, to the extent required, to pay debt
				service on the bonds and maintain the reserve account required in (1) (c). The
				bonds shall be secured by a first lien on the tax increment, which lien may be
				granted on a parity with the lien securing other outstanding or additional
				revenue bonds of the municipality payable from the tax increment, which
				collectively are referred to as parity bonds.
(c) The payment of principal of and interest
				on the bonds and any parity bonds shall be secured by a reserve account, to be
				established and thereafter maintained from available tax increment in an amount
				deemed sufficient by the department to provide adequate security for the
				bonds.
(d) The estimated tax
				increment to be received by the municipality and any other revenues pledged to
				the payment of the bonds, which collectively are referred to as pledged
				revenues, are determined by the governing body of the municipality to be
				sufficient to pay the principal of and interest on the bonds and other
				outstanding parity bonds when due.
(e) The municipality shall agree not to issue
				additional parity bonds payable from or secured by the tax increment and other
				pledged revenues, if any, without the prior written consent of the department,
				which consent shall not be granted unless either:
(i) the pledged revenues collected in the
				last completed fiscal year were equal to at least 130% of the maximum annual
				debt service, during the term of the outstanding parity bonds, on all
				outstanding parity bonds and the additional parity bonds proposed to be issued;
				and
(ii) the pledged revenues
				collected in the last completed fiscal year, adjusted as provided in (2) were,
				and the pledged revenues estimated to be received in the next succeeding three
				fiscal years, adjusted as provided in (2), are estimated to be, equal to at
				least 140% of the maximum annual debt service, during the term of the
				outstanding parity bonds, on all outstanding parity bonds and the additional
				parity bonds proposed to be issued.
(A) For
				this purpose, the tax increment received by the municipality in the last
				completed fiscal year may be adjusted by adding any increase in tax increment
				which would have resulted from applying the tax rates effective for the last
				completed fiscal year to the value, as determined by certification of the
				county assessor, of any projects which have been completed in the urban renewal
				area or industrial district before the date of issuance of the additional
				parity bonds and the taxable values of which as so completed are not included
				in the "actual taxable value" of the urban renewal area or industrial
				district.