Explanation
1. BACKGROUND
This ordinance is required by Ohio EPA to authorize the Director of Public Utilities to execute Water Supply Revolving Loan Account (WSRLA) Loan Agreements totaling approximately $1.87 billion, for construction of up to twenty-eight (28) water system projects as identified in Section 1, under the direction of the Division of Water (DOW). These Capital Improvements Projects have been nominated and await OEPA’s approval for financing through the Water Supply Revolving Loan Account (WSRLA) program in Program Year 2027, which runs from July 1, 2026 through June 30, 2027. This loan program is jointly administered by the Ohio EPA’s Division of Environmental and Financial Assistance (DEFA) and the Ohio Water Development Authority (OWDA). The WSRLA program provides below-market interest rate loans for municipal water system improvements.
The Department of Public Utilities anticipates applying for loan funding for the projects listed in Section 1. However, it may become necessary to add or subtract from this list of projects depending upon project schedule adjustments, departmental need, or OEPA deciding the project is not eligible for funding. These loans do not have an annual application period. Loans are applied for on an as-needed basis after bids are opened or after professional service contract pricing has been negotiated.
2. FISCAL IMPACT
All applicable Loan Administration Fees will be rolled into each loan upon execution of the Loan Agreements. These WSRLA loans will be paid off from water service fees (the dedicated source of repayment). Water service rate increases have been projected and planned in anticipation of these projects and loans.
Title
To authorize the Director of Public Utilities to apply for, accept, and enter into up to twenty-eight (28) Water Supply Revolving Account Loan Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority, during the Program Year 2027, for the ...
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