Department: Huntsville Utilities
Subject: Type of Action: Unanimous Consent
title
Ordinance authorizing issuance of a $7,515,000 initial principal amount Subordinated Water Revenue Warrant, Series 2025-DWSRF-DL, and Special Authority Loan Conditions Agreement with the Alabama Drinking Water Finance Authority, to finance capital improvements to the safe drinking water system of the City.
Ordinance No.
body
Finance Information:
Account Number: TBD
City Cost Amount: NA
Total Cost: NA
Special Circumstances:
Grant Funded: NA
Grant Title - CFDA or granting Agency: NA
Resolution #: NA
Location: (list below)
Address:
District: District 1 ☐ District 2 ☐ District 3 ☐ District 4 ☐ District 5 ☐
Additional Comments:
By way of background, from time-to-time Huntsville Utilities finances capital improvements to the safe drinking water system through low interest rate loans available from the State’s “SRF Revolving Loan Program”. This is one of those loans. In order to obtain one of these loans the City has to enter a loan agreement, as well as approve issuance of a debt instrument under which the loan, plus interest, is paid-back from net revenues derived from the drinking water system. The debt instrument is a Subordinated Water Revenue Warrant, Series 2025-DWSRF-DL. This financing is NOT a general obligation of the City, and does not count against the City’s debt limit. We have done these in the past, including one in 2024, one in 2023, and two in 2021.