Explanation
1. Background
As authorized by Ordinance 2235-2014, the City issued its $205,425,000 Sewerage System Revenue Refunding Bonds, Series 2014, dated December 1, 2014 (the “2014 Sewer Revenue Bonds”). It is now advantageous for the City to refund all or a portion of the outstanding amount of the 2014 Sewer Revenue Bonds through the Ohio Water Development Authority (“OWDA”) Refinance Loan Program.
In order for the City Auditor to apply for and enter into a Refinance Loan Program Loan Agreement, the OWDA requires legislation authorizing the City Auditor to do so. This ordinance authorizes the City Auditor to apply for and execute a Refinance Loan Program Loan Agreement for the refinancing of the 2014 Sewer Revenue Bonds.
2. Fiscal Impact
The OWDA Loan Administration Fee will be rolled into the total loan amount of the loan. The loan will be paid off from revenues from sewer system rates (the dedicated source of repayment). Sewer rate increases have been projected and planned in anticipation of this loan.
3. Emergency Designation
The Refinance Program Loan Application is now being processed for this refinancing loan. This authorizing legislation is a requirement for loan approval and must be submitted to the OWDA as a part of the Loan Application process prior to consideration by the OWDA Board for loan award. Emergency designation is requested for the purpose of refunding the 2014 Sewer Revenue Bonds expeditiously to take advantage of current interest rates.
Title
To authorize the City Auditor to apply for, accept, and enter into an Ohio Water Development Authority Refinance Loan Program Loan Agreement, for the purpose of providing funds to refund certain outstanding special obligations of the City; to designate a dedicated source of repayment for the loan; to authorize an expenditure of $200,000.00 in the Sewer Operating Fund for costs of issuance; and to declare an emergency ($143,100,000.00).
Section 44-1(b)
Body
WHEREAS, the City of Columbus...
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