RESOLUTION OF THE
EVANS CITY WATER
AND SEWER AUTHORITY
RESOLUTION NO. 20200624B-W
AUTHORIZING
THE ADOPTION OF SUFFICIENT WATER RATES AND PROVIDING FOR THE IMPLEMENTATION
THEREOF NO LATER THAN THREE MONTHS BEFORE THE SCHEDULED AMORTIZATION DATE AS
DEFINED AT SETTLEMENT ON THE AUTHORITY’S $1,960,000.00
maximum principal amount FUNDING ARRANGEMENT WITH THE PENNSYLVANIA
INFRASTRUCTURE INVESTMENT AUTHORITY (LOAN ME NO. 12766).
WHEREAS, the Evans City Water and Sewer
Authority, Butler County (the “Authority”), created and existing under the laws
of the Commonwealth of Pennsylvania, has determined that it is necessary and in
the best interests of the Authority to undertake a capital project to improve
the water system facilities (the “System”) that are managed by the Authority,
consisting of the replacement of approximately 4,960 linear feet of waterline, 55
service lines, and eight fire hydrants to address water loss and ensure
reliability of the system in the main project area, along with the replacement
of approximately 18 inoperable valves and fire hydrants in the existing system.
WHEREAS, in
order to finance the cost of the Project, the Authority intends to secure a
loan from the Pennsylvania Infrastructure Investment Authority in the maximum
principal amount of $1,960,000.00 to be evidenced by a debt obligation (the
“Debt Obligation”); and
WHEREAS, the Authority
desires to adopt this Resolution to evidence its intent to adopt residential rates
for the System that, will produce revenues sufficient to cover all of its operational
and maintenance costs and the debt service on the Debt Obligation. The future estimated monthly rates are shown
in the following table:
|
Estimated Rates
|
||
|
|
In Borough
|
Out of Borough
|
|
Customer Charge (per month)
|
$8.35
|
$8.35
|
|
Per EDU (per month)
|
$26.69
|
$35.02
|
|
Volume Rate for 0-50,000 gallon usage (per 1,000 gallons)
|
$8.82
|
$8.82
|
|
Volume Rate for 50,000+ gallon usage (per 1,000 gallons)
|
$9.39
|
$9.39
|
NOW, THEREFORE,
BE IT RESOLVED, that the Authority
shall institute rates for the System, and provide for the implementation
thereof, no later than three months before the earlier of: a) the Scheduled Amortization
Date of September 1, 2021 or b) the first day of the first calendar month
following the completion of all actions required to complete construction of
the Project, as defined under
Paragraph D. 1. of the Funding Agreement, at the rates shown in the table above,
to produce revenues from the operation of the System sufficient to cover all
operational and maintenance costs and the debt service on the Debt Obligation.
For purposes hereof, “Scheduled Amortization Date” means the date on which the Authority
shall initiate principal and interest payments on the Debt Obligation, September
1, 2021.
DULY ADOPTED,
this 24th day of June, 2020 by the Evans City Water and Sewer
Authority, Butler County, in lawful session duly assembled.
ATTEST:
_____________________________ ________________________________
Secretary Chairman
(SEAL)
