2019 South Bend Financial Assurance Test Report

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SOLID WASTE LAND DISPOSAL FACILITIES requirements,the permittee shall provide alternate financial assurance. (G)A permittee may propose a financial assurance mechanism for restricted waste sites other than those listed in subdivisions (1)through (4)and clauses (A)through (F)in accordance with the following: (i)The permittee must demonstrate to the satisfaction of the commissioner that the proposed mechanism provides equivalent or greater financial responsibility for closure of all the permitted acreage than the listed mechanisms. (ii)Any proposed mechanism is subject to the approval of the commissioner. (6)The local government financial test option,including the following: (A)This financial test is only available for permittees that are local governments.As used in this subdivision,local government”means a county,municipality,township,or solid waste management district. (B)A local government permittee that satisfies the following requirements may demonstrate financial assurance up to the amount specified in clause (C): (i)The local government permittee shall meet the following financial component requirements: (AA)The local government permittee shall satis1~’the following as applicable: (aa)Ifthe local government permittee has outstanding,rated general obligation bonds that are not secured by insurance,a letter-of-credit,or other collateral or guarantee,the local government permittee shall have a current rating of: (1)Aaa,Aa,A,or Baa as issued by Moody’s;or (2)AAA,AA,A,or BBB as issued by Standard and Poor’s; on all the general obligation bonds. (bb)The local government permittee shall satis1~’the following financial ratios based on the local government permittee’s most recent audited annual financial statement: (1)A ratio of cash plus marketable securities to total expenditures greater than or equal to five-hundredths (0.05). (2)A ratio ofannual debt service to total expenditures less than or equal to two-tenths (0.20). (BB)The local government permittee shall: (aa)prepare the local government permittee’s financial statements in conformity with generally accepted accounting principles (GAAP)for governments;and (bb)have the financial statements audited by an independent certified public accountant or the state board of accounts. (CC)A local government permittee is not eligible to assure the local government permittee’s obligations under this subdivision if any of the following applies to the local government permittee: (aa)The local government permittee is currently in default on any outstanding general obligation bonds. (bb)The local government permittee has any outstanding general obligation bonds rated lower than Baa as issued by Moody’s or BBB as issued by Standard and Poor’s. (cc)The local government permittee has operated at a deficit equal to five percent (5%)or more of total annual revenue in each of the past two (2)fiscal years. (dd)The local government permittee receives an adverse opinion,disclaimer of opinion,or other qualified opinion from the independent certified public accountant or the state board of accounts auditing its financial statement as required under subitem (BB).The commissioner may evaluate qualified opinions on a case-by-case basis and allow use of the financial test in cases where the commissioner deems the qualification insufficient to warrant disallowance of use of the test. (DD)As used in this subdivision,the following terms apply: (aa)“Cash plus marketable securities”means all the cash plus marketable securities held by the local government permittee on the last day of a fiscal year,excluding cash and marketable securities designated to satis1~,’past obligations,such as pensions. (bb)“Debt service”means the amount of principal and interest due on a loan in a given time period,typically the current year. Indiana Administrative Code Page 252