Explanation
1. BACKGROUND
This ordinance authorizes the Director of the Department of Public Utilities to apply for loans through the Ohio Water Development Authority (OWDA) Direct Loan program to finance Department of Public Utilities capital improvement projects through 3/31/25, to accept the loan funding if offered under terms agreeable to the City of Columbus, and to execute the documents needed to accept the loans.
The Department of Public Utilities has been using a loan program administered jointly by the Ohio EPA's Division of Environmental and Financial Assistance and the OWDA to finance part of the department’s capital improvement program. In 2023, City Council approved via Ordinance 0997-2023 the Department of Public Utilities to also apply for loans through the OWDA Direct Loan program. The projects to be financed by the OWDA Direct Loan program are projects that typically do not meet the eligibility or timeline requirements of the Ohio EPA/OWDA loan program, which has more stringent requirements for loans funded through that program.
The OWDA’s mission is to provide financial assistance for environmental infrastructure from the sale of municipal revenue bonds through loans to local governments in Ohio. These loans are available at favorable interest rates, frequently below what the City can obtain through a bond sale, and at favorable repayment terms. The projects anticipated to be financed through the OWDA Direct program are shown in the attachment to this ordinance named “ORD 0652-2024 Anticipated OWDA Direct Loan Funded Projects”.
The Department of Public Utilities anticipates applying for loan funding for the projects listed in the attachment. However, it may become necessary to add or subtract from this list of projects depending upon project schedule adjustments, departmental need, or OWDA 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...
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