management system. This reduces wear and tear and extends the useful life of this important infrastructure.

This ordinance would implement a credit system for commercial and institutional properties, to be overseen by the Director of Engineering and Public Works. Under this system, owners who take steps to materially reduce stormwater runoff from commercial and institutional properties, and can document the reduced impact on the City's stormwater system, will be able to earn credits against their stormwater billing charges.

This was a first reading of the ordinance, so Vice Mayor Byington made no motion.

A copy of the resolution, having been placed on the desks of each member of Council prior to introduction, was read by title.

Vice Mayor Byington explained that at the September 2019 meeting, Council adopted an ordinance to create the “Special Improvement District Assessment Fund” within the City’s accounting records. The purpose of the fund was to allow the Finance Department to separately account for special assessments made in connection with projects that receive Property Assessed Clean Energy (“PACE”) financing. The fund was established in anticipation of receiving the first petition for a PACE-financed project in Oakwood, which was received from Beth Abraham Synagogue on February 24, 2020. The proposed project is a $1.3 million high-efficiency HVAC upgrade for the synagogue.

PACE financing is not new in Ohio, but it is new to Oakwood. Beginning in 2009, the General Assembly adopted various state laws to authorize and implement PACE financing, which is a mechanism for funding energy-efficient property improvements. The funding comes in the form of a loan which is paid via special assessments against the property. It requires cooperation among three separate entities: the property owner who is interested in making these kinds of improvements; a public or private lender; and a city or township that has statutory authority to levy special assessments.

A key detail of PACE financing is that it does not involve the use of city funds. In the Dayton area, properties pursuing PACE financing petition to become part of the Dayton Regional Energy Special Improvement District (“Dayton Regional ESID”), and loans are made via private lenders through the Dayton Port Authority. Oakwood’s role in the process is limited to levying the special assessments against the property, and as they are paid, remitting the proceeds to the lender to pay the loan.

Three pieces of legislation are required to approve and put assessments in place for a PACE-financed project. The first, which is being introduced now, is the “Resolution of Necessity.” It declares the necessity of Beth Abraham Synagogue’s project and approves the addition of the Beth Abraham Synagogue property to the Dayton Regional ESID. The second, which will be introduced if the Resolution of Necessity is adopted, is the “Ordinance to Proceed” which authorizes Beth Abraham Synagogue to proceed with the project. The third and final piece of legislation is the “Ordinance to Levy Assessments,” which will be introduced at the April meeting after Beth Abraham Synagogue has secured arrangements for its PACE financing.

Thereupon, it was moved by Vice Mayor Byington and seconded by Mrs. Hilton that the resolution be passed.

Upon call of the roll on the question of the motion, the following vote was recorded: