Regular 2.
Regular City Council Meeting
- Meeting Date:
- 09/14/2009
- TITLE
- Fixing the form and detail of the DNRC loan for the Zone 4 Reservoir Project
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
On April 27 2009, the council authorized a loan application for the issuance of Department of Natural Resources and Conservation revenue bonds to pay for the cost of the Zone 4 Water Reservoir Project. The Zone 4 Water Reservoir Project, which includes construction of a 2 million gallon reservoir and a pump station, is primarily intended to support existing capacity for the area northwest of Ironwood Subdivision.
The resolution authorizes the issuance and fixes the terms and conditions of the bond.
The resolution authorizes the issuance and fixes the terms and conditions of the bond.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution fixing the form and detail of the DNRC loan; or
- Not approve the resolution fixing the form and detail of the DNRC loan.
FINANCIAL IMPACT
Department of Natural Resources and Conservation , through its Drinking Water State Revolving Fund Program, offers low interest loans that fund water projects with no closing costs. The Zone 4 Reservoir project loan is $7,412,000 at 3.75% for 20 years.
RECOMMENDATION
It is recommended that the City Council approve the attached resolution.