Rule Rule 123-043-0085
Contract Administration and Disbursement of Funds


The Authority shall disburse monies from the fund only after entering into a binding contract with the municipality.


The contract shall be in a form provided by the Authority, and shall include:


A provision that disbursements from the fund will be according to the terms of the contract;


A provision that the liability of the Authority under the contract is contingent upon the availability of moneys in the fund for use in the project;


If any portion of the assistance is in the form of a loan or the purchase of a bond of a municipality, a provision granting the Authority a lien on or a security interest in the collateral as determined by the Authority to be necessary to secure repayment of the loan or bond;


A provision that, for a period of up to six (6) years after project completion, the Authority may request that the municipality, at its own expense, submit data on the economic development benefits of the project, including but not limited to information on new or retained jobs resulting from the project, and other information necessary to evaluate the success and economic impact of the project;


For a drinking water project, a provision requiring the municipality to install meters on all new active service connections from any distribution lines that may be included in the project;


For a drinking water project with existing, active unmetered service connections, a provision requiring the municipality to install meters on such service connections no later than two years after the completion of the project; and


Other provisions that the Authority considers necessary or appropriate to implement the assistance.


Other funds that may be needed to complete the project must be available or the municipality must have a binding commitment for such funds at the time the contract is executed. If a portion of the other funds needed to complete the project is committed but not available at the time an award is made or the contract executed, the contract shall require that the project be fully funded prior to any disbursement from the fund.


The contract for a loan or grant shall be authorized by an ordinance, order or resolution adopted by the governing body of the municipality in accordance with the municipalitys requirements for public notice and authorizing debt.
Last accessed
Jan. 19, 2020