Consent 1.J.
Regular City Council Meeting
- Meeting Date:
- 07/12/2010
- TITLE
- Resolution amending Resolution #10-18940 Fixing the Form and Detail of the DNRC for 2010 Water Rehab projects
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
On May 24, 2010, the City Council approved a resolution which authorized the issuance and fixed the terms and conditions of the 2010 Water Rehab DNRC bonds.
After the resolution was approved, the City received notice from DNRC that a portion of the 2010 Water Rehab Loan is eligible for principal forgiveness. Staff is requesting that the City Council accept the DNRC’s offer and adopt this Supplemental Resolution to reflect the changes in the terms of the 2010 Water Rehab Loan.
After the resolution was approved, the City received notice from DNRC that a portion of the 2010 Water Rehab Loan is eligible for principal forgiveness. Staff is requesting that the City Council accept the DNRC’s offer and adopt this Supplemental Resolution to reflect the changes in the terms of the 2010 Water Rehab Loan.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution amending the form and detail of the DNRC loan and bonds; or
- Not approve the resolution amending the form and detail of the DNRC loan and bonds.
FINANCIAL IMPACT
The original terms of the loan were $3,300,000 over the term of 20 years at an interest rate of 3.75%. With the new terms, $500,000 of the loan will be forgiven. The remaining balance of $2,800,000 will be paid over the term of 20 years at a rate of 3.75%.
RECOMMENDATION
It is recommended that the City Council approve the attached supplemental resolution.