(A) The City-owned Water Treatment and Distribution System will pay the annual debt service charges and Administrative Fee to the City's municipal sewer system for the improvements made at the Water Treatment Plant. The improvements include the installation of a lagoon for the backwash water being discharged and the new outfall pipe line for the backwash water discharge to the stream.
(B) The improvements will be funded by an estimated principal amount of $105,900.00 from the proceeds of the 1997 Kentucky Infrastructure Authority (KIA) loan at an anticipated 1.80% interest rate over a twenty-year payback period.
(C) An administrative Fee of 0.20% of the unpaid principal amount is also required to be paid annually.