§ 961.9. Grants.
(a) Grants will be considered only when the Board determines that the financial condition of the recipient is such that repayment of a loan is unlikely and that the recipient will not be able to proceed with the project without a grant. If the Board determines that a grant is appropriate, the Board will attempt to mix the grant funds with loan funds, if financially possible.
(b) In determining whether a grant should be offered, and, if so, what proportion of the financial assistance offered should constitute a grant and what portion should constitute a loan, the Board will consider the ultimate effect that financing a project’s costs will have on the rates that customers will have to pay. A rate increase will be compared with local incomes and ability to pay in assessing the need for a grant. In doing this assessment, the Board may consider factors including, but not limited to, the following:
(1) The median household income of the system’s service area.
(2) Existing and projected user fees.
(3) The financial condition of the applicant, including revenues, expenses, debt structure, equity position, available collateral and financial condition of an owner or parent organization.
(4) The social, economic and financial condition of the community served, including population change, percentage of senior citizens and percentage of low and moderate income persons.
(5) The inability of the applicant to secure grant funding from other sources.
(c) The Board may limit individual grant awards to whatever amount it deems desirable.
(d) Grants will be made subject to the terms and conditions that the Board establishes.
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