Explanation
1. BACKGROUND
Need: Ohio EPA requires this legislation which authorizes the Director of Public Utilities to execute up to six (6) Water Supply Revolving Loan Account (WSRLA) loan agreements totaling approximately $22 million, for construction of up to six (6) 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 2016 which runs from July 1, 2015 through June 30, 2016. 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. EMERGENCY DESIGNATION: A WSRLA loan application is currently being drafted for processing for one of the designated projects. This authorizing legislation is a requirement for loan approval and must be submitted to the Ohio EPA as a part of the loan application prior to consideration by the Ohio Water Development Authority (OWDA) board for loan award. Therefore, for the purpose of keeping this project on schedule, emergency designation is requested.
3. 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 six (6) Water Supply Revolving Loan Account Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority, during Program Year 2016, for the construction of water distribution and supply system improvements; to designate a repayment source for the loans; and to declare an emergency.
Body
WHEREAS, in Pro...
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