CITY OF HOMER

HOMER, ALASKA

                                                                                                City Manager

ORDINANCE 08-47

 

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, ACCEPTING AND APPROPRIATING A LOAN INCREASE IN THE AMOUNT OF $3 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) was forwarded to the City and signed by the Manager; and

              WHEREAS, This agreement is amended as of September 3, 2008 by the Alaska Department of Environmental Conservation and the city acting pursuant to the adopted Resolution 07-115 for a loan increase of $3 Million for a total amount of $8 Million; 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 $3 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                            $3,000,000

 Expenditure                                        Description                                             Amount

215-865                                               Water Treatment Plant Construction   $3,000,000

             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

  

                                                                                    _____________________________

                                                                                    MAYOR

 ATTEST:

 

 

 

______________________________

JO JOHNSON, CMC, CITY CLERK

 

AYES:

NOES:

ABSTAIN:

ABSENT:

 

First Reading:

Public Reading:

Second Reading:

Effective Date:

 

 

Reviewed and approved as to form: 

 

_____________________________                            _____________________________

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

 

Date: _________________________                           Date: ________________________