Section 1120.120  Availability of Funds − Review Criteria

Applicants shall document that financial resources will be available and be equal to or exceed the estimated total project cost plus any related project costs by providing evidence of sufficient financial resources from the following applicable sources:

a)         Cash and Securities − statements (e.g., audited financial statements, letters from financial institutions, board resolutions) as to:

1)         the amount of cash and securities available for the project, including the identification of any security, its value and availability of those funds; and

2)         interest to be earned on depreciation account funds or to be earned on any asset from the date of applicant's submission through project completion;

b)         Pledges − for anticipated pledges, a summary of the anticipated pledges showing anticipated receipts and discounted value, estimated time table of gross receipts and related fundraising expenses, and a discussion of past fundraising experience.  Provide a list of confirmed pledges from major donors (over $100,000);

c)         Gifts and Bequests − verification of the dollar amount, identification of any conditions of use, and the estimated time table of receipts;

d)         Debt – for applicants with projects involving debt financing, a statement of the estimated terms and conditions (including the debt time period, variable or permanent interest rates over the debt time period, and the anticipated repayment schedule) for any interim and for the permanent financing proposed to fund the project, including:

1)         For general obligation bonds, proof of passage of the required referendum or evidence that the governmental unit has the authority to issue the bonds and evidence of the dollar amount of the issue, including any discounting anticipated;

2)         For revenue bonds, proof of the feasibility of securing the specified amount and interest rate;

3)         For mortgages, a letter from the prospective lender attesting to the expectation of making the loan in the amount and time indicated, including the anticipated interest rate and any conditions associated with the mortgage, such as, but not limited to, adjustable interest rates, balloon payments, etc.;

4)         For any lease, a copy of the lease, including all the terms and conditions, including any purchase options, any capital improvements to the property and provision of capital equipment;

e)         Governmental Appropriations − a copy of the appropriation Act or ordinance accompanied by a statement of funding availability from an official of the governmental unit.  If funds are to be made available from subsequent fiscal years, a copy of a resolution or other action of the governmental unit attesting to this intent;

f)         Grants − a letter from the granting agency as to the availability of funds in terms of the amount and time of receipt;

g)         All Other Funds and Sources − verification of the amount and type of any other funds that will be used for the project.

(Source:  Amended at 40 Ill. Reg. 14067, effective September 27, 2016)