HomeMy WebLinkAboutAuthorize City Manager to sign a Certification
Commission Memorandum
REPORT TO: Honorable Mayor and Commission Members
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Acceptance of ARRA – Stimulus SRF Funds for Water Reclamation
Facility Administrative/Lab Building.
MEETING DATE: April 27, 2009
RECOMMENDATION: Approve City Manager’s Signature on the Certification of
Acceptance of ARRA Funds.
BACKGROUND: The City has received notice of award of $750,000 from the Montana
Department of Environmental Quality for SRF funds under the American Recovery and
Reinvestment Act (ARRA, aka stimulus bill) for use on the WRF Admin/Lab building. Because
the SRF is a loan program, the money comes in the form of a $750,000 loan:
· $390,700 of the principal is forgiven (effectively a grant), and
· $359,300 is a loan with an interest rate between 0.75% and 1.75%.
The City must accept this award by April 29, 2009.
FISCAL EFFECTS: In the most recent rate scenarios prepared for the Wastewater fund, we
anticipated $400,000 in loan forgiveness/grant through this program. This award will reduce the
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total amount principal paid for the project by $390,700 and will reduce interest costs by a total of
$86,500 - $126,300 over the 20 year term of the loan.
ALTERNATIVES: As suggested by the City Commission.
Attachments: DEQ Award Letter, April 17, 2009
Certification of Acceptance of ARRA Funds
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