Title
Resolution to Establish Loan Loss Reserve Fund and to Appropriate Funds ($432,800.00) for Community Energy Projects (8 Votes Required)
Memorandum
This resolution establishes a loan loss reserve fund in the amount of $432,800.00 to be used in conjunction with the City's planned Property Assessed Clean Energy (PACE) program. Funds for the loan loss reserve fund were previously budgeted and appropriated to fund 00MG from the City's Energy Efficiency and Conservation Block Grant (EECBG) from the U.S. Department of Energy (DOE) for this purpose by Resolution R-09-501, which was approved by City Council on December 21, 2009. This resolution also clarifies that the City will follow DOE rules and guidance on the use of EECBG funds for loan loss reserves for the life of the reserve fund.
The PACE program (currently under development) will allow the City to finance voluntary energy improvements to private properties through voluntary single lot or special assessments. The loan loss reserve will allow the City to leverage a much larger pool of private funding (approximately ten times more) for PACE projects and reduce interest rates for participating property owners by covering a portion of delinquent or defaulted payments.
Establishing this loan loss reserve fund is an important step in creating a strong community energy program to meet City Council's Energy Challenge goal of a 20% reduction of community-wide greenhouse gas emissions (from 2000 levels) by 2015.
Staff
Prepared By: Andrew Brix, Energy Programs Manager
Reviewed By: Sue F. McCormick, Public Services Administrator
Approved By: Roger W. Fraser, City Administrator
Body
Whereas, The City of Ann Arbor set ambitious renewable energy and climate protection goals at the May 1, 2006 City Council meeting in Resolution R-172-5-06, including a 20% reduction in community-wide greenhouse gas emission from 2000 levels by 2015;
Whereas, The U.S. Department of Energy (DOE) awarded the City an Energy Efficien...
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