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TWDB LOAN: EXECUTIVE SUMMARY <br />• Pre-application for low interest loan submitted in spring 2012. <br />• City council approved contracts with Hayter Engineering (application prep and engineering), South- <br />west Securities (bond advisors), and McCall Parkhurst (bond counsel) on May 14, 2012. <br />• City qualifies for 15% loan forgiveness. <br />• Council approved submission of loan application on May 31. <br />• Texas Water Development Board approved loan on September 20. <br />• Negotiated sale of certificates of obligation is required as preferred funding mechanism by TWDB to <br />ensure low interest rate and to offer loan forgiveness. <br />� Certificate of obligation sale must be noticed in newspaper. <br />• Council tabled publishing notice on November 26. <br />• Loan program participation would save $1,359,330 over 20 years, versus GO or traditional CO sale. <br />• Loan program participation would save $211,917 over paying cash. <br />• Sale of COs is a very common, open, and public action taken by city councils. <br />• No duplication of engineering work between Hayter and KSA. <br />• 15 water line replacement projects will be part of 10-year CIP regardless of type of financing. <br />• $3.4 million can be in addition to or a part of $SO million projected CIP cost. <br />�� <br />