Application Contents
Safe Drinking Water Loan Program
To be eligible to apply for Safe Drinking Water Loan Program (SDWLP) financial assistance for a given State Fiscal Year, an applicant's project(s) must appear on the SDWLP Project Priority List for that State Fiscal Year. To apply for SDWLP financial assistance, an applicant must submit to the department or obtain department approval for the following items by the April 30 SDWLP application deadline:
- Evidence of engineering report approval by the Bureau of Drinking Water and Groundwater.
Evidence that three (3) copies of approvable, biddable plans and specifications for the project were submitted to the Bureau of Drinking Water and Groundwater.
A completed SDWLP Financial Assistance Application form (2 copies)--Form 8700-262.
Executed engineering contracts for engineering report and design if funds are requested for these activities. The budget in the application form must include construction costs in order to receive loan funds for engineering report and/or design costs.
Proposed or executed contracts for architectural or engineering work for construction if funds are requested for this activity.
Financial information required by the Department of Administration, e.g. municipality’s current year budget, financial audit reports, information regarding outstanding bank promissory note or bond anticipation note that is going to be refinanced with proceeds from the SDWLP, etc. This information is necessary in determining the affordability of the project and the financial capability of the municipality to repay the loan. (See credit review)
The proposed user charge system if the Public Service Commission (PSC) does not regulate the applicant's water system.
Proposed or executed intermunicipal agreement if the project serves more than one local governmental unit.
Any existing contracts with water system users.
Documentation applicable to IRS tax information.
A resolution declaring intent to reimburse municipal accounts with financial assistance proceeds as required by U.S. Treasury regulations. The application must include a copy of an executed reimbursement resolution if funding from the SDWLP will be directed to a municipal account. The SDWLP would reimburse the municipality for municipal funds previously spent on eligible project costs. The reimbursement resolution should be adopted and in effect before eligible costs are incurred.
Before a project manager can prepare the financial assistance agreement, the municipality will need to submit additional documentation for review. The items shown on page 2 of the application are critical in terms of allowing the project manager to prepare the financial assistance agreement. Supplying target submittal dates on the application for these additional documents will help the project manager prepare an appropriate schedule for project reviews and loan closing. See the financial assistance agreement and loan closing process page for further information.
Prior to the financial assistance agreement preparation, a Bond Counsel is required to prepare the bond documents and the bond transcript for the loan. The SDWLP may require evidence of qualifications, experience and liability insurance coverage to demonstrate the acceptability of the counsel.
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