STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 97-028

FUTURE LOCAL DEBT, WAIVER OF SECTION XV.E., OF THE POLICY FOR IMPLEMENTING THE STATE REVOLVING FUND FOR CONSTRUCTION OF WASTEWATER TREATMENT FACILITIES

WHEREAS:

1. Section XV.E. of the Policy for Implementing the State Revolving Fund for Construction of Wastewater Treatment Facilities, (SRF Policy) prohibits the sale of future local debt that is senior to any State Revolving Fund (SRF) debt;

2. The City of San Diego, by letter dated December 20, 1996, requested a waiver to Section XV.E. of the SRF Policy;

3. The City offered the following enhancements to offset its request for subordinate status of its SRF Loans:

a. An "A" or higher rating by at least two nationally known rating agencies;

b. A coverage ratio of 1.1 times current year SRF debt service;

c. Payment of the state match share for all SRF loans with a subordinate status; and

4. The Division of Clean Water Programs has reviewed the request and finds the provisions offered by the City of San Diego to be adequate to assure reasonable protection against default on their SRF loans.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves a waiver to Section XV.E. of the SRF Policy allowing the City of San Diego to sell future local debt that is senior to any SRF debt it may acquire.

CERTIFICATION

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on March 20, 1997.

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Maureen Marché
Administrative Assistant to the Board