Section 93.727. Local government bond rating test.

 

(1)  

(a) To use the bond rating test to meet the financial responsibility requirements of s. ATCP 93.705 , a general purpose local government owner or operator or local government serving as a guarantor shall have a currently outstanding issue or issues of general obligation bonds of $1 million or more, excluding refunded obligations, with a Moody's rating of Aaa, Aa, A, or Baa, or a Standard & Poor's rating of AAA, AA, A, or BBB.

(b) Where a local government has multiple outstanding issues, or where a local government's bonds are rated by both Moody's and Standard and Poor's, the lowest rating shall be used to determine eligibility.

(c) Bonds that are backed by credit enhancement other than municipal bond insurance may not be considered in determining the amount of applicable bonds outstanding.

(2)  

(a) A local government owner or operator or local government serving as a guarantor that is not a general purpose local government and does not have the legal authority to issue general obligation bonds may satisfy the requirements of s. ATCP 93.705 by having a currently outstanding issue or issues of revenue bonds of $1 million or more, excluding refunded issues, and by also having a Moody's rating of Aaa, Aa, A, or Baa, or a Standard & Poor's rating of AAA, AA, A, or BBB as the lowest rating for any rated revenue bond issued by the local government.

(b) Where bonds are rated by both Moody's and Standard & Poor's, the lower rating for each bond shall be used to determine eligibility.

(c) Bonds that are backed by credit enhancement may not be considered in determining the amount of applicable bonds outstanding.

(3)  The local government owner or operator or guarantor shall maintain a copy of its bond rating published within the last 12 months by Moody's or Standard & Poor's.

(4)  To demonstrate that it meets the local government bond rating test, the chief financial officer of a general purpose local government owner or operator or guarantor shall sign a letter that is identical to the letter specified in 40 CFR 280.104 (d), except for the following:

(a) The instructions in brackets in the letter shall be replaced by the relevant information and the brackets deleted.

(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:

1. Reference in the letter to underground tanks shall be amended to refer to aboveground tanks .

2. Certification that wording is identical to the wording required in 40 CFR 280.104 (d) shall be deleted.

(5)  To demonstrate that it meets the local government bond rating test, the chief financial officer of a local government owner or operator or guarantor other than a general purpose government shall sign a letter which is identical to the letter specified in 40 CFR 280.104 (e), except for the following:

(a) The instructions in brackets in the letter shall be replaced by the relevant information and the brackets deleted.

(b) If financial responsibility for aboveground tanks within the scope of this subchapter is demonstrated using this method, all of the following changes shall be made:

1. Reference in the letter to underground tanks shall be amended to refer to aboveground tanks .

2. Certification that wording is identical to the wording required in 40 CFR 280.104 (e) shall be deleted.

(6)  The department may require reports of financial condition at any time from the local government owner or operator, or local government guarantor. If the department finds that the local government owner or operator or guarantor no longer meets the local government bond rating test requirements of this section, the local government owner or operator shall obtain alternative coverage within 30 days after notification of such a finding.

(7)  If a local government owner or operator using the bond rating test to provide financial assurance finds that it no longer meets the bond rating test requirements, the local government owner or operator shall obtain alternative coverage within 150 days of the change in status.

CR 07-029 : cr. Register November 2008 No. 635 , eff. 2-1-09; correction in (1) (a), (2) (a) made under s. 13.92 (4) (b) 7. , Stats., Register December 2011 No. 672 ; corrections in (1) (a), (2) (a) made under s. 13.92 (4) (b) 7. , Stats., Register October 2013 No. 694 ; CR 16-012 : am. (2) (a) Register August 2016 No. 728 , eff. 9-1-16.

Note

A link to 40 CFR 280 is available at the following U.S. EPA Web site: http://www.epa.gov/oust/fedlaws/cfr.htm . Microsoft Windows NT 6.1.7601 Service Pack 1 A link to 40 CFR 280 is available at the following U.S. EPA Web site: http://www.epa.gov/oust/fedlaws/cfr.htm . Microsoft Windows NT 6.1.7601 Service Pack 1