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File #: 2021-306    Version: 1 Name:
Type: Resolution Status: Filed
File created: 7/26/2021 In control: Board of Directors
On agenda: 7/28/2021 Final action: 7/28/2021
Title: Update: State Revolving Fund Loans 7461-02 and 7484-01 Rate and Terms
Sponsors: Nicolette Bateson
Indexes: Finance
Attachments: 1. 2 - TFG - SRF Loan Terms 072222, 2. 3 - PFM - GLWA SRF Loan 7484-01 Amortization Memo, 3. 3 - PFM - Proposed Final Options Summary Sheet GLWA DWRF 7.21.2021
Title
Update: State Revolving Fund Loans 7461-02 and 7484-01 Rate and Terms
Body

Agenda of: July 28, 2021
Item No.: 2021-306
Amount: N/A

TO: The Honorable
Board of Directors
Great Lakes Water Authority

FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority

DATE: July 28, 2021


RE: Update: State Revolving Fund Loans 7461-02 and 7484-01 Rate and Terms

MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer/Treasurer, the Board of Directors of the Great Lakes Water Authority, receive and files the update report related to the State Revolving Fund Loans 7461-02 and 7484-01 Rate and Terms as presented to the Audit Committee on July 23, 2021 and recommended by the Committee to receive and file; and authorizes the CEO to take such action as may be necessary to accomplish the intent of this vote.

BACKGROUND
The Great Lakes Water Authority (GLWA) is preparing to close on SRF loan 7461-02 (GLWA) and 7484-01 (for the Detroit Water & Sewerage Department or DWSD) as presented with the Audit Committee and the GLWA Board of Directors during the original loan application process and in quarterly debt reports over the past two years and most recently with the approval of the associated Series Ordinance No. 2021-03 at the June 23, 2021 Board of Directors meeting. These loans are:

1. GLWA Regional System: Loan 7461-02 for approximately $104 million to fund Phase II of the 14 Mile Road Transmission Main Project;
2. DWSD Local System: Loan 7484-01 for approximately $11.5 million (after loan forgiveness of $1.3 million) to fund the Jefferson Chalmers Water Main Replacement Project.

During the preliminary loan closing held with the state of Michigan departments of Environment, Great Lakes, and Energy (EGLE) and Treasury this week, GLWA was offered new FY 2021 rate and term options not available at the time of the original loan applications.

While the Series Ordinance authorizes the GLWA Chief...

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