Agenda Item Title:
APPROVE RESOLUTION 2018-038 A RESOLUTION GIVING APPROVAL TO CERTAIN DRINKING WATER FACILITIES IMPROVEMENTS; GIVING APPROVAL TO THE ISSUANCE AND SALE OF A REVENUE BOND TO FINANCE, DIRECTLY OR INDIRECTLY, THE IMPROVEMENTS TO THE FACILITIES; APPROVING THE FORM OF THE LOAN AGREEMENT AND THE REVENUE BOND AND PLEDGING CERTAIN REVENUES AND COLLATERAL TO SECURE THE PAYMENT OF THE REVENUE BOND AND CREATING SPECIAL FUNDS AND ACCOUNTS FOR THE ADMINISTRATION OF FUNDS FOR OPERATION OF THE SYSTEM AND RETIREMENT OF THE REVENUE BOND
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
08/01/2018
City Council Hearing Date:
08/06/2018
Staff Contact:
Pauline Sumption, Finance Officer
Agenda Item Summary:
Authorization was given in March 2018 to apply for an additional $950k SRF loan for the East Rapid City Water Extension Project. This resolution finalizes the authorization to move forward on the loan (approved for up to $500,000) and to allow the Mayor and Finance to sign off on the loan agreement.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
| Repayment will be from the water surcharge that is being assessed against those users that hook on to the new water extension. In addition, the State of SD may also authorize principal forgiveness on the loan, much like they did for the original project loan | |
Recommendations:
Origination Recommendation Action:
Approve