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Councilmember Lipton agreed and asked Mr. Manire if the yield curve is <br />about the same for all or should we look at 25 — 15 year. Mr. Manire <br />replied the yield curve is flat. We tend to look at things at long term water <br />financing within that range and is something we have to go through some <br />reiterations to see what impact it has on any cash modeling or forecast <br />we have. He is inclined of doing it less than 20 years as it's likely to put <br />more stress on the cash flow short term but we could model it that way so <br />you have a range to look at. So until we get clarity from the Sub -District <br />on what their structure is we really aren't choosing; we can only say if the <br />City were doing this independently what would its preference be. Then <br />when the real program is visible there will be a more clear distinction <br />between the two. What we've learned that needs to be adapted is that <br />the interest only payment for the first 5 years we will build that in and we'll <br />work with Mr. Kowar and Mr. Peterson to build alternatives. He didn't <br />think there was a magic number. Councilmember Lipton asked about <br />Group Financing vs City funding, if we do City financing is it, in the future, <br />going to limit the capacity for City to issue more debt. Mr. Manire replied <br />either program contributes to debt services. Mr. Manire continued saying <br />there is one thing that is included in the Allotment Contract is that we are <br />certifying the payments will be treated as an O&M cost of the utility. The <br />O&M cost is part of the debt service coverage calculations. <br />Councilmember Fahey asked with all the uncertainty can we schedule <br />another utility meeting so we can then make a recommendation. <br />Councilmember Lipton said yes but we need fuller analysis from all the <br />parties and not just a meeting. He asked how all the other participants <br />are doing on making their decisions. Mr. Johnson stated they too are <br />looking at an October timeline. Mr. Johnson said he has been getting <br />emails during this meeting that the participants have met and there is <br />some significant discussion about the 20 vs 30 year Bond Term for Pool <br />Financing and implication. They are considering some sort of mixed term <br />option that may require some revisions to the Allotment Contract. So <br />there may be some delay associated with that but the main goal for <br />getting this done in October was so the WG Firming Project Enterprise <br />could sign the CWCB loan documents. So it sounds like the timeline will <br />be pushed back and stated other participants are in the same situation as <br />Louisville with the uncertainty of the Pool Financing and trying to be <br />comfortable with the Allotment Contract in the fact that it tries not to <br />present too many impediments to those specific loan terms but also the <br />fact that there is only so much information available at this time and are <br />trying to seek approval in the interim. Councilmember Lipton thanked Mr. <br />Johnson and asked the Mayor if she had anything to add. Mayor <br />Stolzmann stated that she's not clear on how we are going to resolve the <br />timeline and there weren't a lot of questions on the Allotment side of <br />things except the financing side. Then said maybe that's what we need to <br />discuss. She continued to clarify the Allotment Agreement is how we will <br />allocate shares in WG and as part of that we are committing to Group <br />Financing where we all can agree on the water piece of this but it's the <br />financing side that there are still questions about. Councilmember Lipton <br />9 <br />