Title
Approval of a Resolution to authorize execution of all documents for a Georgia Fund loan from the Georgia Environmental Finance Authority (GEFA) in an amount not to exceed $15,000,000 to finance the construction of the Roswell Water Plant and approval of Budget Amendment 50544300-02-24-14 establishing revenue and expenditure budgets in the amount of $15,000,000 and appropriating $150,000 from Water Fund fund balance for Debt Issuance Costs.
Presented by Stuart Moring, Director of Public Works/Environmental
Body
Item Summary:
This action authorizes the execution of the required GEFA loan documents for funding of the construction of the Roswell Water Plant. The project consists of a 3.0 million gallon per day (mgd) water treatment plant, new raw water intake, and ten (10) million gallon raw water storage tank. This project was approved in October 2012. The project cost is estimated at $15,000,000. General terms of the loan include an interest rate of 1.40% per annum for 20 years, with a closing fee of 1%. A construction Notice to Proceed is planned to be issued by April 2014.
Committee or Staff Recommendation:
At the October 22, 2012 meeting of Mayor and Council this loan application was approved.
Financial Impact:
Upon approval, Budget Amendment 50544300-02-24-14 will establish a revenue budget in the amount of $15,000,000 in Fund 505, Object 393000 and an expenditure budget in the amount of $15,000,000 in Org 50544300, Object 541300, and Project 80010.
Additionally, the Budget Amendment authorizes the appropriation of $150,000 in Water Fund fund balance for the cost of debt issuance (1%). Funding will be available in Org 50544300, Object 584000, Project 80010.
The City's obligation to repay the loan will be in the form of a Promissory Note. The loan will provide for immediate fund availability and will be repaid over a 20-year term from water system revenues. The total amount of principal and interest each year is estimated at $860,328.
Presented by:
Stuart A. Moring, P.E., Director of Public Works/Environmental