Explanation
1. BACKGROUND
Need: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for and execute nine Ohio Water Pollution Control Loan Fund (WPCLF) loan agreements , for construction of nine projects, as described in Section 1 of this Ordinance, under the direction of the Division of Sewerage and Drainage. It is estimated that up to $285 million of construction costs for these projects will be financed through the Ohio Water Pollution Control Loan Fund program in 2010, with the engineering services costs of the projects being paid for through City bond money. The OSIS Augmentation and Relief Sewer (OARS) is the largest of these projects with an estimated construction cost of $264.5 million. 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. The current rate for WPCLF loans is 3.25 percent.
2. FISCAL IMPACT
Budgeted Amount: There is sufficient budget authority in the 2010 Water & Sewer Systems Operating Funds for application fee expenditures. This loan 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 this project and loan.
Title
To authorize the Director of Public Utilities to apply for, accept, and enter into nine Ohio Water Pollution Control Loan Fund Agreements with the Ohio Water Development Authority and the Ohio Environmental Protection Agency to assist in the project financing, for the Division of Sewerage and Drainage; and to designate a dedicated repayment source for the loans.
Body
WHEREAS, in 2010 the Department of Public Utilities is scheduled to submit nine loan applications to the Ohio EPA under the Ohio Water Pol...
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