Explanation
1. BACKGROUND
Need: The Ohio Water Development Authority (OWDA) requires this legislation which authorizes the Director of Public Utilities to apply for and execute three (3) OWDA Local Government Agency Loan Program loan agreements for construction of three water proejcts as identified in Section 1. under the direction of the Division of Power and Water (Water Section). These Capital Improvement Projects are being financed through the OWDA Local Government Agency Loan Program and are administered by the Ohio Water Development Authority (OWDA). This loan program provides low-interest rate loans for municipal water utility capital improvements.
2. FISCAL IMPACT
Budgeted Amount: There is sufficient budget authority in the 2010 Water System Operating Fund for application fee expenditures. This loan will be paid off over a 20-year period from water system fees (dedicated source of repayment). Water 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 three (3) Ohio Water Development Authority Local Government Agency Loan Program loan agreements for the financing of the construction of water system and infrastructure improvements; and to designate a repayment source for the loans.
Body
WHEREAS, the Department of Public Utilities is scheduled to prepare loan applications for submittal to the Ohio Water Development Authority (OWDA) under the Local Government Agency Loan Program to finance, through below-market interest rate loans, the construction of three Capital Improvement Projects under the Division of Power and Water (Water Section), the financial assistance for which will be of help in reducing the over-all projet costs to the City's water rate payers; and
WHEREAS, prior to loan agreement approval by the OWDA, the loan applications and loan agreement documents require the City to submit to ...
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