{"data":{"id":"us/43-cfr-404.39","jurisdiction":"us","citation":"43 CFR 404.39","heading":"What factors will Reclamation consider in evaluating my capability to pay 25 percent or more of the construction costs?","body":"Reclamation will consider the following factors:\n(a) Economic factors for the project area, relative to the state average, including:\n(1) Per capita income;\n(2) Median household income; and\n(3) The poverty rate;\n(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;\n(c) The strength of the project sponsor financial statements in comparison to other similar entities over the previous 4 years, including a review of:\n(1) Current (includes cash and inventory) and non-current assets (property, plants etc.);\n(2) Net Assets (total assets minus total liabilities);\n(3) Changes to net assets;\n(4) Operating revenues (water and power sales);\n(5) Operating expenses (variable costs and depreciation, maintenance and repair);\n(6) Cash flow from operating activities (positive value from water sales minus payments to supplies and employees);\n(7) Current (current bonds payable and accounts payable) and non-current liabilities (long term debt payable);\n(8) Outstanding debts and all other financial obligations;\n(9) Collateral/equity as appropriate;\n(10) Cash flows from capital and related financing activities (negative value from principle paid on bonds and interest payments);\n(11) Net cash flow; and\n(12) Any non-operating revenues and expenses;\n(d) Funding commitments from non-Federal sources, other than the non-Federal project sponsor, including resources committed by state, county, or local governments;\n(e) The existing cost of water and the cost to develop new water supplies in the region; and\n(f) The impact of the proposed project on water rates;\n(g) The projected impact of the proposed project on the non-Federal project sponsor's ability to raise or generate revenues;\n(h) The non-Federal project sponsor's financial history including their past performance on repaying loans and other debts; and\n(i) Any other financial means of the non-Federal project sponsor that is not captured in this subsection.","path":["Title 43—Public Lands: Interior","Subtitle B—Regulations Relating to Public Lands","CHAPTER I—BUREAU OF RECLAMATION, DEPARTMENT OF THE INTERIOR","PART 404—RECLAMATION RURAL WATER SUPPLY PROGRAM","Subpart B—Cost-Sharing"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-43.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:15Z","sha256":"0013669260ddfb531cc467dcf7f3a25d5111dbb4b32fc12e0b7272e01a957aed","source_id":"us-cfr","stale":true,"prev":"us/43-cfr-404.38","next":"us/43-cfr-404.40"},"notice":"GroundRules: Original legal text. Not legal advice."}