Explanation
BACKGROUND: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for and execute a Water Supply Revolving Loan Account (WSRLA) loan agreement totaling approximately $90 million for the System and Installation of the Enhanced Meter Project as identified in Section 1., under the direction of the Division of Water (DOW). The WSRLA loan program is jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance and the Ohio Water Development Authority (OWDA). The WSRLA program provides below-market interest rate loans for municipal water and wastewater system improvements.
As required by the WSRLA Program, Ordinance 0687-2019 was passed April 8, 2019 authorizing the Director to enter into a WSRLA Loan Agreement for this project based on a cost estimate with a designated “not to exceed” loan amount of $30 million. That dollar figure was estimated based on the possibility of funding the project incrementally over the course of five years. After further evaluation and consultation with our funding partners (OEPA and OWDA) it was determined in the best interest of the City’s ratepayers to fund the project in its entirety from the onset. For this reason Council’s authorization is needed in order to increase the authorization to proceed with financing at an amount now not to exceed $90 million.
FISCAL IMPACT: This loan will be paid off over a 20-year period from Water service rates (dedicated source of repayment). Water service rate increases have been projected and planned in anticipation of this project and loan.
Title
To authorize the Director of Public Utilities to apply for, accept, and enter into a Water Supply Revolving Loan Account (WSRLA) Loan Agreement with the Ohio Water Development Authority and the Ohio Environmental Protection Agency for the financing of the Enhanced Meter Project for the Division of Water (DOW); to designate a dedicated source of repayment fo...
Click here for full text