CITY OF HOMER

HOMER, ALASKA

                                                                                                  City Manager

ORDINANCE 08-43

 

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, ACCEPTING AND APPROPRIATING A LOAN IN THE AMOUNT OF $5 MILLION DOLLARS FROM THE ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) FOR CONSTRUCTION OF THE NEW WATER TREATMENT PLANT.

 

            WHEREAS, The City Council adopted Resolution 07-115 authorizing the City Manager to apply for a loan in the amount of up to $8 Million Dollars from the Alaska Drinking Water Fund (ADWF) for construction of the new water treatment plant; and

 

            WHEREAS, The City submitted a loan application for $5 Million earlier this year, the application was approved by DEC, and a loan agreement (ADWF # 409131) has been forwarded to the City and signed by the Manager; and

 

            WHEREAS, The terms of the loan include a 20 year repayment schedule, equal annual principle payments, 1.5% interest, and a first payment due date one year after commencement of operations at the new plant.

 

            NOW, THEREFORE, BE IT ORDAINED by the City of Homer:

 

            Section 1: The Homer City Council hereby accepts and appropriates an ADWF loan from DEC in the amount of $5 Million subject to the terms and conditions contained in Loan Agreement ADWF # 409131 as follows:

 

Account No.                                       Description                                           Amount

 205-000-2338                                   ADEC / ADWF Loan                          $5,000,000

 

Expenditure                                        Description                                             Amount

215-865                                               Water Treatment Plant Construction   $5,000,000

 

Estimated Annual Loan Payments    $250,000 plus interest

 

            Section 2: This ordinance is a budget amendment ordinance only, is not of a permanent nature, and shall not be codified.

 

            ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA, this _____ day of __________________, 2008.

 

 

 

                                                                                    CITY OF HOMER

 

 

                                                                                    _____________________________

                                                                                    JAMES C. HORNADAY, MAYOR

 

 

ATTEST:

 

______________________________

JO JOHNSON, CMC, CITY CLERK

 

 

 

 

 

 

 

AYES:

NOES:

ABSTAIN:

ABSENT:

 

First Reading:

Public Hearing:

Second Reading:

Effective Date:

 

Reviewed as to form and content:

 

 

_____________________________                            ____________________________

Walt Wrede, City Manager                                           Thomas F. Klinkner, City Attorney

 

Date: ______________________                                  Date: __________________

 

 

 

Fiscal Note: $250,000 per year plus interest loan payments.