Explanation
1. BACKGROUND
This ordinance seeks City Council approval for the Director of the Department of Public Utilities (DPU) to execute Water Supply Revolving Loan Account (WSRLA) loan agreements through a loan program jointly administered by the Ohio EPA’s Division of Environmental and Financial Assistance (DEFA) and the Ohio Water Development Authority (OWDA) for the construction of DPU water distribution and supply system improvements.
The WSRLA program provides below-market interest rate loans for municipal water system improvements. The 35 capital improvement construction projects listed in Section 1 of this ordinance, totaling approximately $555 million, are believed by DPU to qualify for the WSRLA program and have been nominated by DPU for loan funding through the WSRLA in Program Year 2025, which runs from July 1, 2024 through June 30, 2025. A WSRLA loan application is submitted for each project after the bid results are known. An ordinance is also submitted for City Council approval to award the bid and to use loan funding to finance the project. The OWDA Board typically reviews applications and approves loans the month following receipt of the application if all other required information has also been submitted. The Ohio EPA (OEPA) requires City Council approval of an ordinance authorizing applications to be submitted for the WSRLA loan program.
The Department of Public Utilities anticipates applying for loan funding for the projects listed in Section 1 of this ordinance. However, it may become necessary to add or subtract from this list of projects depending upon project schedule adjustments, departmental need, or OEPA/OWDA deciding the project is not eligible for WSRLA loan funding.
2. FISCAL IMPACT
An expenditure is not requested with this ordinance. All applicable loan administration fees will be rolled into each loan upon execution of the loan agreements. An ordinance will be submitted seeking City Council approval to ...
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