NAC349.505. Determination of financial feasibility of proposed improvement; evaluation of certain abilities of applicant and charge for water; determination of exceptional circumstances.

Upon receipt of an application, the Division of Environmental Protection of the Department shall:

     1. If necessary, forward all data and information contained in the application to any financial adviser, attorney and other person retained by the Division to determine the financial feasibility of the proposed improvement.

     2. If applicable, evaluate the ability of the applicant to provide for:

     (a) The continuing replacement of components of the water system that are functionally obsolete or worn out;

     (b) Current and anticipated debt service; and

     (c) Current and future expenses of operation and maintenance.

     3. If applicable, evaluate the charge for water that customers of the community water system or nontransient water system are paying and determine if the charge is sufficient to satisfy expenses related to:

     (a) The operation and maintenance of the community water system or nontransient water system; and

     (b) Periodically replacing components of the community water system or nontransient water system that are functionally obsolete or worn out.

     4. If applicable, determine whether any exceptional circumstances exist in the area served by the community water system or nontransient water system.

     (Added to NAC by Bd. for Financing Water Projects, eff. 12-24-91; A by R113-96, 1-23-98; R104-04, 9-18-2006)