HOMER,
City Manager
ORDINANCE 08-43
AN ORDINANCE OF THE
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.
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
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
_____________________________
JAMES C. HORNADAY, MAYOR
ATTEST:
______________________________
JO JOHNSON,
AYES:
NOES:
ABSTAIN:
ABSENT:
First
Public Hearing:
Second
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.