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 The Utah Permanent Community Impact Fund Board (CIB) provides loans and/or grants to state agencies and sub-divisions of the state which may be socially or economically impacted by mineral resource development on federal lands.
The next Board meeting will be WEDNESDAY, May 7, 2008 at the State Library Division, 250 North 1950 West, Salt Lake City - beginning with a staff briefing at 8:30 a.m.
** Please note change of meeting date.
Board meetings are usually the first Thursday of each month.
The CIB reviews applications and authorizes funding assistance on a "Trimester" basis. Meetings are held the first Thursday of each month. The initial meetings of each "Trimester" are "Project Review Meetings". The final meeting of each "Trimester" is the "Prioritization and Funding Meeting". "Prioritization and Funding Meetings" shall be held in February, June, and October.
The deadlines for submitting applications for each of the Trimesters will be no later than the following dates: First Trimester, February 1st; Second Trimester, June 1st; Third Trimester, October 1st.
The Permanent Community Impact Fund Board provides loans and /or grants to state agencies and subdivisions of the state which are or may be socially or economically impacted, directly or indirectly,by mineral resource development on federal lands.
Under the Federal Mineral Lease Act of 1920, lease holders on public land make royalty payments to the federal government for the development and production of non-metalliferous minerals. In Utah, the primary source of these royalties is the commercial production of fossil fuels on federal land held by the U.S. Forest Service and the Bureau of Land Management. Since the enactment of the Mineral Lease Act of 1920, a portion of these royalty payments, called mineral lease payments, have been returned to the state in an effort to help mitigate the local impact of energy and mineral developments on federal lands. The state of Utah then allocates the Permanent Community Impact Funds with 32.5% of the funds. The Board will only fund those applications for funding assistance which are submitted by an eligible applicant for an eligible project.
The Board has the option of funding projects with loans and/or grants. The Board's preferred financing mechanism is an interest bearing loan.
Loan Requirements: In providing financial assistance in the form of a loan, the Board may purchase an applicant's bonds only if the bonds are accompanied by legal opinion of recognized municipal bond counsel to the effect that the bonds are legal and binding under applicable Utah law (including, if applicable, the Utah Municipal Bond Act.)
The Board may purchase either a taxable or tax exempt bond. The Board may purchase taxable bonds if it determines, after evaluating all relevant circumstances, including the applicant's ability to pay, that the purchase of the taxable bonds is in the best interest of the state and the applicant.
Grants: Grants may be provided only when the other financing mechanisms cannot be utilized, where no reasonable method of repayment can be identified, or in emergency situations regarding public health and/or safety.
The Board will review applications and authorize funding assistance on a "Trimester" basis. The first three meetings of each "Trimester" shall be "Project Review Meetings." The fourth meeting of each "Trimester" shall be a "Prioritization and Funding Meeting." Board meetings shall be held the first Thursday of each month. "Prioritization and Funding Meetings" will be held in February, June, and October.
The Utah statute creating the Board specifically defines a "subdivision" as being any of the following: counties, special service districts, cities, special improvement districts, towns, water conservancy districts, school districts, water or sewer improvement districts, building authorities, and housing authorities.
Restrictions include:
a) The Board is prohibited from funding any education project that could otherwise have reasonably been funded by a school district through a program of annual budgeting, capital budgeting, bonded indebtedness, or special assignments.
b) Individuals, corporations, associations, private non-profit organizations are not eligible for financing from the Board.
Project Eligibility
Both state and federal statutes define eligible projects to include:
- Provision of public services
- Construction and maintenance of public facilities
- Planning
The Board's administrative rules further define "public facilities and services" to mean public infrastructure traditionally provided by governmental entities.
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