Explanation
1. BACKGROUND
Need: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for and execute up to nine (9) Ohio Water Pollution Control Loan Fund (WPCLF) loan agreements totaling approximately $55 million, for construction of eight Sanitary projects and one Water project as identified in Section 1., under the direction of the Division of Sewerage and Drainage and the Division of Power and Water respectively. These Capital Improvements Projects are being financed through the Ohio Water Pollution Control Loan Fund program, and will include up to $10 million in subsidies from the American Recovery and Reinvestment Act of 2009 (ARRA). This loan program is jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance, and the Ohio Water Development Authority (OWDA). The WPCLF provides below-market interest rate loans for municipal wastewater treatment improvements.
2. EMERGENCY DESIGNATION: WPCLF/ARRA loan applications are now being processed for these projects. This authorizing legislation is a requirement for loan approval and must be submitted to the Ohio EPA as a part of each loan application , and one of these loan agreements is scheduled for approval at the OWDA board meeting on July 30, 2009, therefore emergency designation is needed. .
3. FISCAL IMPACT
Budgeted Amount: There is sufficient budget authority in the 2009 Water & Sewer Systems Operating Funds for application fee expenditures. These loans will be paid off over a 20-year period from water and sewerage system fees (dedicated source of repayment). Water and Sewerage fee increases have been projected and planned in anticipation of these projects and loans. Approximately $10 million will be awarded for these projects as subsidies to reduce the principal amount of loan for qualifying projects. This subsidy will be applied to the project's eligible costs.
Title
To authorize the Director of...
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