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ORDINANCE NO. 1894 <br />SERIES 2025 <br />AN ORDINANCE AUTHORIZING A LOAN FROM THE WATER UTILITY FUND TO <br />THE WASTEWATER UTILITY FUND FOR A THREE-YEAR TERM AND AN INITIAL <br />INTEREST RATE OF 4.8 PERCENT <br />WHEREAS, the City of Louisville ("City") is a municipal corporation duly <br />organized and existing as a home rule city pursuant to Article XX of the Constitution of <br />the State of Colorado and the City's Home Rule Charter ("Charter"); and <br />WHEREAS, Section 13-3(b) of the Charter authorizes a City -owned utility to loan <br />money to another City -owned utility by ordinance; and <br />WHEREAS, Section 13-3(b) further provides: "The motion approving the loan shall <br />specify the term of the loan and the interest rate. The interest rate shall be adjusted <br />annually to a rate equal to the average return of City investments for the preceding <br />twelve (12) months;" and <br />WHEREAS, the City's Wastewater Utility Fund is in need of additional monies to <br />pay for capital projects and to fund ongoing maintenance and operation costs; and <br />WHEREAS, the City plans to increase the wastewater utility rates in 2025, but it <br />desires to moderate the impact of such increase on residents; and <br />WHEREAS, the City's Water Utility Fund has sufficient fund balances to make a <br />loan to the Wastewater Utility Fund; and <br />WHEREAS, estimates of future revenue streams and net income of the <br />Wastewater Utility Fund are sufficient to repay the Water Utility Fund for a loan in addition <br />to meeting other financial obligations of the fund; and <br />WHEREAS, City Council desires to loan monies from the Water Utility Fund to <br />the Wastewater Utility Fund and to establish the terms of repayment. <br />NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY <br />OF LOUISVILLE, COLORADO: <br />Section 1. The City Council hereby authorizes a loan from the Water Utility <br />Fund to the Wastewater Utility Fund of up to six hundred thousand dollars ($600,000) in <br />fiscal year 2025 and up to three hundred thousand dollars ($300,000) in fiscal year <br />2026, for a total principal amount not to exceed nine hundred thousand dollars <br />($900,000.00) (hereinafter, the "Loan"). <br />Section 2. The Loan shall have a term of three (3) years. All principal and <br />interest loaned shall be repaid in full by no later than December 31, 2028, unless such <br />Ordinance No. 1894, Series 2025 <br />Page 1 of 3 <br />