§ 9-4-604 — Distribution and use; capital construction projects and bonds; municipal, county and special district purposes

Wyoming § 9-4-604

• Jurisdiction: Wyoming
• Title 09: Administration of the Government
• Ch. 4: PUBLIC FUNDS
• Art. 6: GOVERNMENT ROYALTY REVENUE

Text

(a) Revenues received under W.S. 9-4-601(a)(vi) and (b)(i)
shall be credited to a capital construction account. No money
shall be expended from the account until the money has been
appropriated by the legislature to the state loan and investment
board through the normal budget process to be used in the
board's discretion for any purpose authorized by this section.
The revenues shall be used to finance state revenue bonds as
provided by this section. The balance shall be used for the
making of loans or grants to incorporated cities and towns,
counties and special districts as provided in this section. No
loan or grant shall be made by the state loan and investment
board under the provisions of this section until the loan or
grant application has been referred by the board to a state
agency for review as determined by the board. The state agency
shall provide the board with a written review of any loan or
grant application referred to the agency and any other
assistance requested by the board. No grant shall be made by
the state loan and investment board under this section to any
county unless the county imposes at least eleven (11) or ninety-
one and sixty-seven one-hundredths percent (91.67%) of the
available mills authorized by article 15, section 5 of the
Wyoming constitution, or unless the county is imposing the
optional sales tax authorized under W.S. 39-15-204(a)(i) or
(iii). No grant shall be made by the state loan and investment
board under this section to any municipality unless the
municipality imposes at least seven (7) or eighty-seven and
five-tenths percent (87.5%) of the available mills authorized by
article 15, section 6 of the Wyoming constitution. No grant
shall be made by the state loan and investment board under this
section to any special district or other lawful entity which
imposes less than eighty percent (80%) of any authorized mill
levy. The state loan and investment board may waive the
taxation requirements imposed by this subsection for good cause
shown such as other funding sources, but in no case shall the
state loan and investment board authorize any grant to any
municipality under this section which does not impose at least
two (2) or twenty-five percent (25%) of the available mills
authorized by article 15, section 6 of the Wyoming constitution.
The state loan and investment board shall grant money as
authorized by this section only when the board finds the grant
is necessary to:
(i) Alleviate an emergency situation which poses a
direct and immediate threat to health, safety or welfare;
(ii) Comply with a federal or state mandate;
(iii) Provide an essential public service.
(b) The state loan and investment board shall borrow money
in a principal amount not to exceed sixty million dollars
($60,000,000.00) by the issuance from time to time of one (1) or
more series of revenue bonds. The board may encumber revenues
under W.S. 9-4-601(a)(vi) and (b)(i). Any bonds issued under
this section, together with any interest accruing thereon and
any prior redemption premiums due in connection therewith, are
payable and collectible solely out of revenues authorized. The
bond holders may not look to any general or other fund for
payment of the bonds except the revenues pledged therefor. The
bonds shall not constitute an indebtedness or a debt within the
meaning of any constitutional or statutory provision or
limitation. The bonds shall not be considered or held to be
general obligations of the state but shall constitute special
obligations of the state and the board shall not pledge the
state's full faith and credit for payment of the bonds.
(c) Except as otherwise provided, bonds issued under this
section shall be in a form, issued in a manner, at, above or
below par at a discount not exceeding ten percent (10%) of the
principal amount of the bonds, at public or private sale, and
issued with recitals, terms, covenants, conditions and other
provisions not contrary to other applicable statutes, as may be
provided by the board in a resolution authorizing their issuance
and in an indenture or other appropriate proceedings.
(d) Any bonds issued under this section shall:
(i) Be of denominations of five thousand dollars
($5,000.00) or multiples thereof;
(ii) Be fully negotiable within the meaning of and
for all purposes of the Uniform Commercial Code, W.S. 34.1-1-101
through 34.1-10-104;
(iii) Mature at such time or serially at such times
in regular numerical order at annual or other designated
intervals in amounts designated and fixed by the board, but not
exceeding thirty (30) years from their date;
(iv) Bear interest payable annually, semiannually or
at other designated intervals, but the first interest payment
date may be for interest accruing for any period not exceeding
one (1) year;
(v) Be made payable in lawful money of the United
States at the office of the state treasurer or any commercial
bank or commercial banks;
(vi) Be printed at a place the board determines;
(vii) Be additionally secured by a reserve fund
created from revenues received under W.S. 9-4-601(a)(vi) and
(b)(i) or from the proceeds of the bonds, or both, in an amount
determined by the state loan and investment board but not to
exceed an amount equal to ten percent (10%) of the revenue bonds
outstanding.
(e) Before any contract is entered into by the state loan
and investment board to retain the services of a financial
advisor or to sell the bonds to an underwriter, whether by
competitive or negotiated bid, a full disclosure of the terms of
the contract including fees to be paid shall be submitted to the
management council through the legislative service office.
(f) Proceeds of state revenue bonds shall be credited to a
separate account and may be loaned or granted to local
governmental entities as hereafter provided. In determining
which local governmental entities receive loans or grants, the
state loan and investment board shall give priority to projects
in those subdivisions of the state socially or economically
impacted directly or indirectly by the development of minerals
leased under 30 U.S.C. § 181 et seq. Pending distribution the
state treasurer shall invest bond proceeds in a manner which
complies with all requirements of the internal revenue service
to insure the bonds will remain tax free investments.
(g) Not to exceed forty million dollars ($40,000,000.00)
of the total proceeds of all bonds issued under subsection (b)
of this section may be loaned or granted to incorporated cities
and towns. Loans or grants shall be made only under the
following conditions:
(i) Loans may be made for municipal purposes with or
without interest. If the state loan and investment board deems
it necessary to secure the loan, no security other than pledges
of specified revenue to repay a loan shall be required. Before a
loan application is approved the board shall determine by proper
investigation that:
(A) The applicant will fully utilize all local
revenue sources reasonably and legally available for repaying
the loan for which an application is made excluding the local
optional sales tax authorized by W.S. 39-15-204(a)(i) or (iii)
and 39-16-204(a)(i) or (ii);
(B) The project is necessary for the health,
safety and welfare of the inhabitants of the city or town;
(C) The project has been approved by the
qualified electors of the city or town.
(ii) Grants may be made for municipal purposes either
standing alone or in conjunction with a loan under paragraph (i)
of this subsection. Grants may be applied for by a joint powers
board with the approval of the city or town which is a member of
the board or by one (1) or more cities or towns and shall not be
pledged to be payable over a term of years but shall be
distributed within a reasonable time following approval. Grants
shall be used to finance not more than fifty percent (50%) of
the cost of any portion of a project which is unable to be
financed under paragraph (i) of this subsection and projects for
street, curb, gutter or storm drainage improvements provided the
state loan and investment board may make grants in excess of
fifty percent (50%) if the board determines that the applicant
or the member cities or towns if the applicant is a joint powers
board, either levied at least seven (7) mills for operating
expenses including special district levies chargeable against
the general city or town levy during the current fiscal year or
is imposing the optional tax permitted by W.S. 39-15-204(a)(i)
or (iii) at the time of the application and is utilizing all
other local revenue sources reasonably and legally available to
finance the project and:
(A) If the project is for water facilities, that
the city or town, either individually or as a member of a joint
powers board, has installed or during the project will install,
or require the installation of water meters if required by the
state loan and investment board, will require the owners of all
new additions of land to the city or town to pay all costs of
expanding the water system within and to the boundaries of the
addition, is enforcing an appropriate water tap fee as
determined by the state loan and investment board and has or
will adopt water rates which will be adequate to finance the
operation and maintenance of the system;
(B) If the project is for sewer facilities, that
the city or town, either individually or as a member of a joint
powers board, has or will require the owners of all new
additions of land to the city or town to pay all costs of
expanding the sewer system within and to the boundaries of the
addition, is enforcing an appropriate sewer tap fee as
determined by the state loan and investment board and has or
will adopt sewer rates which will be adequate to finance the
operation and maintenance of the system;
(C) The fifty percent (50%) limitation on grants
does not apply to improvements to county or state highways
within city or town boundaries unless otherwise required by the
state loan and investment board.
(iii) Repayments of loans under paragraph (i) of this
subsection shall be credited to a capital reserve account which
shall be available for loans or grants for municipal purposes
under paragraph (i) or (ii) of this subsection;
(iv) No loans shall be made without the written
opinion of the attorney general certifying the legality of the
transaction and all documents connected therewith.
(h) Not to exceed twenty million dollars ($20,000,000.00)
of the total proceeds of all bonds issued under subsection (b)
of this section may be loaned or granted to counties or special
districts. As used in this subsection "special districts" means
hospital districts, fire protection districts, sanitary and
improvement districts, solid waste disposal districts, service
and improvement districts and water and sewer districts.
Notwithstanding any other provision of law, no special district,
either standing alone or as a member of a joint powers board,
shall receive any grant or loan under this section until the
special district's grant or loan application has received a
written review from the board of county commissioners in any
county in which the special district is located. The board of
county commissioners shall review: (1) the ability of the
special district to fund the project through bonds, (2) whether
the project is adverse to the needs, plans or general welfare of
the county, (3) whether the special district has utilized local
funding resources, and (4) whether the special district has met
county standards. If any part of the special district lies
within five (5) miles of the corporate limits of any city or
town, the special district's grant or loan application shall
also receive a written review from the governing body of the
city or town. The written review shall be submitted to the
state loan and investment board by the special district with its
grant or loan application. Loans or grants shall be made only
under the following conditions:
(i) Loans, with or without interest, may only be made
for county or special district purposes which are permitted by
law. If the state loan and investment board deems it necessary
to secure the loan, no security other than pledges of specified
revenue to repay a loan shall be required. Before a loan
application is approved the board shall determine by proper
investigation that:
(A) The applicant will fully utilize all local
revenue sources reasonably and legally available for repaying
the loan excluding the local optional sales tax under W.S.
39-15-204(a)(i) or (iii) and 39-16-204(a)(i) or (ii);
(B) The project is necessary for the health,
safety and welfare of the inhabitants of the applicant;
(C) The project has been approved by the
qualified electors of the applicant.
(ii) Grants may be made for county or special
district purposes either standing alone or in conjunction with a
loan under paragraph (i) of this subsection. Grants may be
applied for by a joint powers board with the approval of the
county or special district which is a member of the board or by
one (1) or more counties or special districts and shall not be
pledged by the board to be payable over a term of years but
shall be distributed within a reasonable time following
approval. Grants shall be used to finance not more than fifty
percent (50%) of the cost of any portion of a project which is
unable to be financed under paragraph (i) of this subsection
provided the state loan and investment board may make grants in
excess of fifty percent (50%) if the board determines that the
applicant either levied at least eleven (11) mills for operating
expenses during the current fiscal year or is imposing the
optional tax permitted by W.S. 39-15-204(a)(i) or (iii) at the
time of the application and is utilizing all other local revenue
sources reasonably and legally available to finance the project;
(iii) Repayments of loans under paragraph (i) of this
subsection shall be credited to a capital reserve account which
shall be available for loans or grants under paragraph (i) or
(ii) of this subsection;
(iv) No loans shall be made without the written
opinion of the attorney general certifying the legality of the
transaction and all documents connected therewith.
(j) After any principal payment date for the bonds issued
under subsection (b) of this section, the board shall deposit
all revenues received pursuant to W.S. 9-4-601(a)(vi) and (b)(i)
which are not required to be otherwise deposited or expended
pursuant to the resolution or resolutions authorizing the
issuance of bonds in a separate account.
(k) All revenues received under W.S. 9-4-601(a)(vi) and
(b)(i) prior to the issuance of bonds under subsection (b) of
this section and all revenues in excess of those required to be
otherwise expended or retained pursuant to subsection (j) of
this section or pursuant to the resolution or resolutions
authorizing the issuance of bonds under subsection (b) of this
section shall be used or distributed as follows:
(i) Not more than seventy-five percent (75%) may be
used by the board to make grants and loans to cities and towns
under subsection (g) of this section in the same manner as the
proceeds of the bonds are to be used;
(ii) Not more than twenty-five percent (25%) may be
granted or loaned by the state loan and investment board to
special districts and counties in the state of Wyoming under
subsection (h) of this section in the same manner as the
proceeds of the bonds are to be used but no revenue shall be
distributed to any county which did not levy at least eleven
(11) mills for the operation of the county during the preceding
fiscal year;
(iii) Funds may be used by the state loan and
investment board to provide one-half (1/2) of the twenty percent
(20%) state matching funds for each federal capitalization grant
to the state drinking water revolving loan account created by
W.S. 16-1-302.
(m) The board may issue refunding revenue bonds:
(i) To refund and discharge and extend or shorten the
maturities of all or any part of any outstanding bonds issued
under this section, including any interest thereon in arrears or
about to become due;
(ii) For the purpose of reducing interest costs on
bonds issued under this section or effecting other economies; or
(iii) For the purpose of modifying or eliminating any
contractual limitations or provisions contained in any indenture
or other proceedings authorizing outstanding bonds issued under
this section.
(n) Any refunding permitted by subsection (m) of this
section shall be accomplished in the manner prescribed by W.S.
16-5-101 through 16-5-119, except any refunding revenue bonds
authorized by the board under subsection (m) of this section
shall not constitute an indebtedness or a debt within the
meaning of any constitutional or statutory provision or
limitation or be considered general obligations of the state.
The board shall not pledge the state's full faith and credit to
the payment of any such refunding revenue bonds. The refunding
revenue bonds shall constitute special obligations of the state
and may be payable only from the sources authorized in this
section for the payment of the bonds refunded. The principal
amount of any bonds which have been refunded need not be taken
into account in computing compliance with the maximum amounts of
bonds authorized to be issued by subsection (b), (g) or (h) of
this section.
(o) Notwithstanding subsections (g) and (h) of this
section, no money shall be loaned or granted by the state loan
and investment board under this section to any applicant for any
water development purpose except for the drilling of new wells,
emergency situations and except for a water treatment facility
or a water distribution system whose primary purpose is to
deliver water.
(p) As used in subsection (a) of this section, "essential
public service" means a public service facility owned by the
applicant and available for use by the general public including:
water and sewer projects, storm drainage projects, street and
road projects, solid waste disposal projects, local natural gas
utility pipelines and distribution systems, acquisition of
emergency vehicles, public administration buildings, health care
facilities, senior citizens centers, jail and detention
facilities, facilities needed to provide services to the
disabled, costs to purchase medical equipment that generates
revenue sufficient to service a Joint Powers Act loan, as
determined by the board, and similar facilities as authorized by
the board. To be considered an "essential public service" under
this section, local natural gas utility pipelines and
distributions center and similar facilities shall be located in
rural and unserved areas. "Essential public service" also means
refinancing outstanding loans extended to the applicant.