Explanation
1. BACKGROUND
Need: Ohio EPA requires this legislation which authorizes the Director of Public Utilities to execute up to five (5) Water Supply Revolving Loan Account (WSRLA) loan agreements totaling approximately $16.5 million, for construction of up to five (5) water system projects as identified in Section 1, under the direction of the Division of Water (DOW). These Capital Improvements Projects are eligible for financing through the Water Supply Revolving Loan Account (WSRLA) program in Program Year 2015 which runs from July 1, 2014 through June 30, 2015. 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.
2. FISCAL IMPACT
These loans will be paid off over a 20-year period from water service rate fees (dedicated source of repayment). Water service rate fee 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 five (5) Water Supply Revolving Loan Account Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority, during Program Year 2015, for the construction of water distribution system improvements; and to designate a repayment source for the loans.
Body
WHEREAS, in Program Year 2015 the Department of Public Utilities is scheduled to prepare loan applications for submittal to the Ohio EPA under the Water Supply Revolving Loan Account (WSRLA) program to finance the construction of up to five Capital Improvement Projects under the direction of the Division of Water, the financial assistance for which may be of help in reducing total project costs to the City's water rate payers; and
WHEREAS, the low-interest loans will be applied for based upon th...
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