Section 22-34-11
Dedicated source of revenue to repay moneys; default; accounting standards.
THIS SECTION WAS AMENDED BY ACT 2022-35 IN THE 2022 REGULAR SESSION, EFFECTIVE FEBRUARY 22, 2022. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
(a) In order to provide for the funding of a loan by the authority for a project to a public body, the public body shall establish a dedicated source of revenue to repay the monies received from the authority and to provide for operation, maintenance, and equipment replacement expenses. Notwithstanding any state law to the contrary, a public body may do all of the following:
(1) Obligate itself to pay to the authority at periodic intervals a sum sufficient to provide bond debt service with respect to the bonds of the authority issued to fund the loan for such project and to pay over such debt service to the account of the project for deposit to the revolving loan fund.
(2) Levy, collect, and pay over to the authority and obligate itself to continue to levy, collect, and pay over to the authority the proceeds of any of the following:
a. A sewer or waste disposal service fee or charge.
b. Licenses, permits, taxes, and fees.
c. A special assessment on the property drained, served, or benefitted by the project.
d. Other revenue available to the public body.
(3) Undertake and obligate itself to pay its contractual obligation to the authority solely from the proceeds from any one or more of the sources specified in subdivision (2), or impose upon itself a general obligation pledge to the authority additionally secured by a pledge of any one or more of such sources.
(4) Obligate itself to levy and collect revenues, fees, and charges in an amount of not less than 110 percent nor more than 125 percent, as determined by the authority, of the maximum principal and interest maturing and coming due in any one year on the bonds issued by the authority to fund a loan for the project.
(5) Enter into agreements, perform acts, and delegate functions and duties as its governing body determines are necessary or desirable to enable the authority to fund a loan to the public body to aid it in the construction or acquisition of a project.
(b) In the event of default, the authority may use all available remedies under state law.
(c) Any loan made by the authority shall provide that repayment of the loan shall begin not later than one year after completion of construction of the project for which the loan was made and shall be repaid in full no later than 20 years after completion of construction. The repayment period may be extended as required or permitted under the Federal Clean Water Act, provided the extended repayment period does not exceed the expected design life of the project.
(d) The recipients of loans shall maintain project accounts in accordance with generally accepted government accounting standards.
(Acts 1987, No. 87-226, p. 317, §11; Act 2022-35, §1.)