Explanation
1. BACKGROUND: As authorized by Ordinance 1128-2014 the City issued Notes via PNC Bank in order to most economically finance two large Division of Water plant projects (the Dublin Rd. Water Plant Ion Exchange Plant Reliability Upgrade Project, CIP 690428-100005; and the Parsons Avenue Water Plant Upgrades Project, CIP 690488-100000). These Notes, in the amount of $163,860,000.00, must now be converted and funding to do so is available through the Ohio Water Development Authority (OWDA) Fresh Water Market Rate Loan Program.
Need: In order for the Department of Public Utilities to apply for and enter into a Fresh Water Market Rate Loan Program Loan Agreement the Ohio Water Development Authority (OWDA) requires legislation authorizing the Director of Public Utilities to do so. This ordinance authorizes the Director of Public Utilities to apply for and execute a Fresh Water Market Rate Loan Program Loan Agreement for the construction of two capital improvements projects as identified in Section 1. under the direction of the Division of Water, and establish water rate revenues as the dedicated source of repayment for the Loan. This loan program is administered by the OWDA. The loan program provides low interest rate loans for municipal water utility capital improvements.
2. EMERGENCY DESIGNATION: The Fresh Water Market Rate Loan Program Loan Application is now being processed for these projects. This authorizing legislation is a requirement for loan approval and must be submitted to the OWDA as a part of the Loan Application process prior to consideration by the OWDA Board for loan award. For the purpose of converting these Notes expeditiously to take advantage of current low interest rates emergency designation is requested.
3. FISCAL IMPACT
Budgeted Amount: The OWDA Loan Administration Fee expenditure in the amount of $437,500.00 will be rolled into the total loan amount of the loan. The loan will be paid off over a 20-year period from re...
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