| DOCUMENT DESCRIPTION: |
RESOLUTION introduced by City Manager Stephen Wade authorizing execution of a loan agreement with Kansas Department of Health and Environment (“KDHE”) from the Kansas Public Water Supply Loan Fund. The loan agreement is not to exceed an amount not to exceed $39,105,205 to be taken by the City of Topeka from the Kansas Public Water Supply Loan Fund administered by the Kansas Department of Health and Environment (KDHE) pursuant to K.S.A. 65-163c et seq.
Voting Requirement: Action requires at least six (6) votes of the Governing Body.
(Approval will authorize execution of the loan agreement if the loan is approved by KDHE.)
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| VOTING REQUIREMENTS: |
Action requires at least six (6) votes of the Governing Body. |
| POLICY ISSUE: |
Whether to authorize staff to proceed with the execution of a loan agreement with KDHE for the purposes of permanently financing Water utility projects. |
| STAFF RECOMMENDATION: |
Staff recommends the Governing Body move to approve the resolution. |
| BACKGROUND: |
The loan will permanently finance four Water capital projects up to the amount of $39,105,205 that would have been previously funded by utility revenue bonds in order to capture interest rate savings due to the lower cost of borrowing of the SRF pool.
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| BUDGETARY IMPACT: |
Debt service for permanently financed improvements would be scheduled over a 20-year period and payments would be structured through the appropriate utility fund. |
| SOURCE OF FUNDING: |
Debt service is paid through the respective utility fund and is funded by fees associated with each utility. |