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1997 SESSION
972166400Be it enacted by the General Assembly of Virginia:
1. That §§ 62.1-233, 62.1-234, and 62.1-237 through 62.1-239.1 of the Code of Virginia are amended and reenacted as follows:
§ 62.1-233. Definitions.
As used in this chapter, unless a different meaning clearly appears from the context:
"Authority" means the Virginia Resources Authority created in Chapter 21 (§ 62.1-197 et seq.) of this title.
"Board" means the Board of Health.
"Cost," as applied to any project financed under the provisions of this
chapter, means the total of all costs incurred by the local
government as reasonable and necessary for carrying out all
works and undertakings necessary or incident to the accomplishment of any
project. It includes, without limitation, all necessary developmental, planning
and feasibility studies, surveys, plans and specifications, architectural,
engineering, financial, legal or other special services, the cost of
acquisition of land and any buildings and improvements thereon, including the
discharge of any obligations of the sellers of such land, buildings or
improvements, site preparation and development, including demolition or removal
of existing structures, construction and reconstruction, labor, materials,
machinery and equipment, the reasonable costs of financing incurred by the
local government in the course of the development of the
project, carrying charges incurred before placing the project in service,
interest on funds borrowed to finance the project to a date subsequent to the
estimated date the project is to be placed in service, necessary expenses
incurred in connection with placing the project in service, the funding of
accounts and reserves which the Board or the Authority may require
and the cost of other items which the Board or the Authority
determines to be reasonable and necessary.
"Fund" means the Virginia Water Supply Revolving Fund created by this chapter.
"Local government" means any county, city, town, municipal corporation, authority, district, commission or political subdivision created by the General Assembly or pursuant to the Constitution or laws of the Commonwealth or any combination of any two or more of the foregoing.
"Noncommunity waterworks" means a waterworks that serves an average of at least twenty-five individuals for at least sixty days out of the year and such individuals are not year-round residents.
"Other entities" means owners of waterworks; however, this term does not include the federal government or owners of noncommunity waterworks operated for profit.
"Project" means any water supply facility which serves primarily residents of
the Commonwealth or which is located or to be located in the Commonwealth
by any local government. The term includes, without limitation, water
supply and intake facilities; water treatment and filtration facilities; water
storage facilities; water distribution facilities; related office,
administrative, storage, maintenance and laboratory facilities; and interests
in land related thereto.
"Waterworks" means a system that serves piped water for drinking or domestic use to (i) the public, (ii) at least fifteen connections or (iii) an average of twenty-five individuals for at least sixty days out of the year. The term includes all structures, equipment and appurtenances used in the storage, collection, purification, treatment and distribution of pure water except the piping and fixtures inside the building where such water is delivered.
§ 62.1-234. Creation and management of Fund.
There shall be set apart as a permanent and perpetual fund, to be known as the
"Virginia Water Supply Revolving Fund," sums appropriated to the Fund by the
General Assembly, all receipts by the Fund from loans made by it to local
governments or other entities, all income from the investment of
moneys held in the Fund, and any other sums designated for deposit to the Fund
from any source public or private. The Fund shall be administered and managed
by the Authority as prescribed in this chapter, subject to the right of the
Board, following consultation with the Authority, to direct the distribution of
loans, loan subsidies (including principal
forgiveness) or grants from the Fund to particular local governments
or other entities and to establish the interest rates and repayment
terms and conditions of such loans, loan subsidies or
grants as provided in this chapter. In order to carry out the
administration and management of the Fund, the Authority is granted the power
to employ officers, employees, agents, advisers and consultants, including,
without limitation, attorneys, financial advisers, engineers and other
technical advisers and public accountants and, the provisions of any other law
to the contrary notwithstanding, to determine their duties and compensation
without the approval of any other agency or instrumentality. The Authority
may disburse from the Fund its reasonable costs and expenses incurred in the
administration and management of the Fund and a reasonable fee to be approved
by the Board for its management services
However, the Authority shall adopt policies and
procedures that minimize the costs
of professional services associated with the
processing of a loan application and
the financing or refinancing of a project, especially in those
instances in which the Board has identified the applicant as
"disadvantaged."
Notwithstanding any other provision in law, the Board may approve a budget for the Authority's reasonable expenses for the administration and financial management of the Fund, and periodically reimburse the Authority for documented expenses in accordance with state policies and procedures.
§ 62.1-237. Collection of money due Fund.
The Authority is empowered to collect, or to authorize others to collect on its behalf, amounts due to the Fund under any loan to a local government or other entity, including, if appropriate, taking the action required by § 15.1-227.61 to obtain payment of any amounts in default. Proceedings to recover amounts due to the Fund may be instituted by the Authority in the name of the Fund in the appropriate circuit court.
§ 62.1-238. Loans to local governments or other entities.
Except as otherwise provided in this chapter, money Money
in the Fund shall be used solely to make loans or for loan subsidies
to local governments or other entities to finance or refinance
the cost of any project or to establish an endowment fund to
assist in the cost of any project. The local governments
or other entities to which loans are to be made, the purposes of the
loan or loan subsidy, and the amount of each such loan or loan
subsidy, the interest rate thereon and the repayment terms and any
conditions thereof, which may vary between loan recipients,
shall be designated in writing by the Board to the Authority following
consultation with the Authority. No loan from the Fund shall exceed the total
cost of the project to be financed or the outstanding principal amount of the
indebtedness to be refinanced plus reasonable financing expenses.
Except as set forth above, the Authority shall determine the terms and conditions of any loan from the Fund, which may vary between local governments or other entities. Each loan shall be evidenced by appropriate bonds or notes or other adequate security of the local government or other entity payable to the Fund. The bonds or notes shall have been duly authorized by the local government or other entity and executed by its authorized legal representatives. The Authority is authorized to require in connection with any loan from the Fund such documents, instruments, certificates, legal opinions and other information as it may deem necessary or convenient. In addition to any other terms or conditions which the Authority may establish, the Authority may require, as a condition to making any loan from the Fund, that the local government or other entity receiving the loan covenant to perform any of the following:
A. Establish and collect rents, rates, fees and charges to produce revenue sufficient to pay all or a specified portion of (i) the costs of operation, maintenance, replacement, renewal and repairs of the project; (ii) any outstanding indebtedness incurred for the purposes of the project, including the principal of and premium, if any, and interest on the loan from the Fund to the local government or other entity; and (iii) any amounts necessary to create and maintain any required reserve, including any rate stabilization fund deemed necessary or appropriate by the Authority to offset the need, in whole or part, for future increases in rents, rates, fees or charges;
B. Levy and collect ad valorem taxes on all property within the jurisdiction of the local government subject to local taxation sufficient to pay the principal of and premium, if any, and interest on the loan from the Fund to the local government;
C. Create and maintain a special fund or funds for the payment of the principal of and premium, if any, and interest on the loan from the Fund to the local government or other entity and any other amounts becoming due under any agreement entered into in connection with the loan, or for the operation, maintenance, repair or replacement of the project or any portions thereof or other property of the local government or other entity, and deposit into any fund or funds amounts sufficient to make any payments on the loan as they become due and payable;
D. Create and maintain other special funds as required by the Authority; and
E. Perform other acts, including the conveyance of, or the granting of liens on
or security interests in, real and personal property, together with all rights,
title and interest therein, to the Fund, or take other actions as may be deemed
necessary or desirable by the Authority to secure payment of the principal of
and premium, if any, and interest on the loan from the Fund to the local
government and to provide for the remedies of the Fund in the event of
any default by the local government in the payment of the
loan, including, without limitation, any of the following:
1. The procurement of insurance, guarantees, letters of credit and other forms of collateral, security, liquidity arrangements or credit supports for the loan from any source, public or private, and the payment therefor of premiums, fees or other charges;
2. The combination of one or more projects, or the combination of one or more
projects with one or more other undertakings, facilities, utilities or systems,
for the purpose of operations and financing, and the pledging of the revenues
from such combined projects, undertakings, facilities, utilities and systems to
secure the loan from the Fund to the local government made in
connection with such combination or any part or parts thereof;
3. The maintenance, replacement, renewal and repair of the project; and
4. The procurement of casualty and liability insurance.
All local governments or other entities borrowing money from the Fund are authorized to perform any acts, take any action, adopt any proceedings and make and carry out any contracts that are contemplated by this chapter. Such contracts need not be identical among all local governments or other entities, but may be structured as determined by the Authority according to the needs of the contracting local governments or other entities and the Fund.
Subject to the rights, if any, of the registered owners of any of the bonds of
the Authority, the Authority may consent to and approve any modification in the
terms of any loan to any local government subject to guidelines
adopted by the Board.
§ 62.1-239. Grants.
Subject to any restrictions which may apply to the use of money in the Fund, the Board in its discretion may approve the use of money in the Fund to make grants or appropriations to local governments or other entities to pay the cost of any project. The Board may establish such terms and conditions on any grant as it deems appropriate. Grants shall be disbursed from the Fund by the Authority in accordance with the written direction of the Board.
§ 62.1-239.1. Loans and grants for regional projects, etc.
In approving loans and grants, the Board shall give preference to loans and grants for projects that will (i) utilize private industry in operation and maintenance of such projects where a material savings in cost can be shown over public operation and maintenance or (ii) serve two or more local governments or other entities to encourage regional cooperation or (iii) both.