§ 404.39 What factors will Reclamation consider in evaluating my capability to pay 25 percent or more of the construction costs?

Reclamation will consider the following factors: (a) Economic factors for the project area, relative to the state average, including: (1) Per capita income; (2) Median household income; and (3) The poverty rate; (b) The ability of the project sponsor to raise tax revenues or assess fees such as user fees and ad valorum taxes or issue bonds; (c) The strength of the project sponsor financial statements in comparison to other similar entities over the previous 4 years, including a review of: (1) Current (includes cash and inventory) and non-current assets (property, plants etc.); (2) Net Assets (total assets minus total liabilities); (3) Changes to net assets; (4) Operating revenues (water and power sales); (5) Operating expenses (variable costs and depreciation, maintenance and repair); (6) Cash flow from operating activities (positive value from water sales minus payments to supplies and employees); (7) Current (current bonds payable and accounts payable) and non-current liabilities (long term debt payable); (8) Outstanding debts and all other financial obligations; (9) Collateral/equity as appropriate; (10) Cash flows from capital and related financing activities (negative value from principle paid on bonds and interest payments); (11) Net cash flow; and (12) Any non-operating revenues and expenses; (d) Funding commitments from non-Federal sources, other than the non-Federal project sponsor, including resources committed by state, county, or local governments; (e) The existing cost of water and the cost to develop new water supplies in the region; and (f) The impact of the proposed project on water rates; (g) The projected impact of the proposed project on the non-Federal project sponsor's ability to raise or generate revenues; (h) The non-Federal project sponsor's financial history including their past performance on repaying loans and other debts; and (i) Any other financial means of the non-Federal project sponsor that is not captured in this subsection.