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Report (BODR) prepared by Carollo Engineers and approved finalizing the project
<br />design. The Project is estimated to cost approximately $46 million of which $3.3 million
<br />has already been allocated from the Water Operating Fund to cover design costs
<br />leaving $42.7 million to be funded. At the June 15, 2021 City Council meeting, City
<br />Council directed staff to prepare a funding plan for the unfunded portion of the
<br />estimated project cost and bring that plan to City Council for review and approval.
<br />Staff presented the following funding plan at the September 7, 2021 City Council
<br />meeting that Council adopted:
<br />Total Cost by
<br />Fiscal Year
<br />PFAS Treatment and Well Renovation
<br />Funding Plan
<br />Fiscal Year Total Est. Cost
<br />Water Op
<br />Fund
<br />Connection
<br />Fees
<br />Financing,
<br />Settlement
<br />proceeds &
<br />Grants
<br />2020/21*
<br />$540,000
<br />$540,000
<br />2021/22*
<br />1,707,500
<br />1,707,500
<br />2022/23*
<br />8,026,200
<br />1,067,500
<br />$1,271,804
<br />$5,686,896
<br />2023/24
<br />30,988,300
<br />4,000,000
<br />3,000,000
<br />23,988,300
<br />2024/25
<br />4,713,000
<br />2,000,000
<br />1,000,000
<br />1,713,000
<br />Totals
<br />$45,975,000
<br />$9,315,000
<br />$5,271,804
<br />$31,388,196
<br />*$3.3M in Water Operating Funds already allocated.
<br />As described in the table above, $31.4 million of the Funding Plan will be a combination
<br />of financing and settlement proceeds and grant funds, if available. Because the City has
<br />not secured grant funds for the Project nor has there been settlement related to the
<br />outstanding litigation related to PFAS contamination, the Funding Plan assumes $31.4
<br />million will need to be funded through financing. The SRF loan's current interest rate of
<br />1.8 percent is materially less than the current 3.2 percent interest rate of a revenue
<br />bond. As such, Council directed staff to pursue the SRF loan.
<br />DISCUSSION
<br />Staff initiated the application for SRF loan funds. The general application requires a City
<br />Council resolution authorizing the loan application and designating an authorized
<br />representative to sign and file for and on behalf of the City. Since OSD is the lead
<br />department for the Project, the proposed resolution designates the Director of
<br />Operations and Water Utilities as the City's authorized representative.
<br />Submitted by:
<br />Tina Olson
<br />Director of Finance
<br />Attachment: Resolution
<br />Kathleen Yurchak
<br />Director of Operations and
<br />Water Utilities
<br />Page 3 of 3
<br />Apevedy:
<br />Neho
<br />City Manager
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