TO: Finance Committee
FROM: Kevin Sing, Director of Finance
SUBJECT:
title
Ordinance Approving an Amendment of the WIFIA Master Agreement and One or More WIFIA Project Loan Agreements with the United States Environmental Protection Agency and One or More Supplemental Indentures and Authorizing the Issuance of Waterworks and Sewerage Senior Lien Revenue Bonds of the City of Joliet, Illinois.
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BACKGROUND:
As part of our project to accept Lake Michigan Water, the City must complete certain capital improvements. The financing plan includes the use of WIFIA loans through the U.S. EPA and revenue bonds. The total cost of the improvements is estimated to be $184,463,665. If approved, we anticipate WIFIA loans totaling $86,926,000 and revenue bonds totaling $97,537,665.
WIFIA loans are one of the most flexible debt options available to the City. The loan has a term of 35 years. Rates are based on the US Treasury SLGS rate at closing (currently 4.89%). The rate can be reset once at our request provided; we have not made a draw on the loan.
CONCLUSION:
Approval of this item will allow the financing team to secure the financing necessary to complete the improvements.
RECOMMENDATION:
recommendation
It is recommended that the Finance recommend the Ordinance Approving an Amendment of the WIFIA Master Agreement and One or More WIFIA Project Loan Agreements with the United States Environmental Protection Agency and One or More Supplemental Indentures and Authorizing the Issuance of Waterworks and Sewerage Senior Lien Revenue Bonds of the City of Joliet, Illinois to City Council for approval.
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