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HomeMy WebLinkAbout#4205 Authorizing City of Canton to Borrow Funds From The Public Water Supply Loan Program ORDINANCE NO. 4205 AN ORDINANCE authorizing the City of Canton, Fulton, County,Illinois to borrow funds from the Public Water Supply Loan Program WHEREAS,the City of Canton, Fulton County, Illinois operates its public water supply system (the System) and in accordance with the provisions of Article 11 of the Illinois Municipal Code (65 ILCS 5/11-139-1 et seq.), and the Local Government Debt Reform Act,30 ILCS 350/1 (collectively,the Act), and WHEREAS, the Mayor and City Council of the City of Canton have determined that it is advisable, necessary and in the best interests of public health, safety and welfare to improve the System, including the following: City of Canton—Lead Service Replacements together with any land or rights in land and all electrical, mechanical or other services necessary,useful or advisable to the construction and installation ("the Project"), all in accordance with the plans and specifications prepared by consulting engineers of the City of Canton; which Project has a useful life of 50 years; and WHEREAS, the estimated cost of construction and installation of the Project, including engineering, legal,financial and other related expenses is $1,500,000.00 and there are insufficient funds on hand and lawfully available to pay these costs; and WHEREAS, the loan shall bear an interest rate as defined by 35 Ill. Adm. Code 662, which does not exceed the maximum rate authorized by the Bond Authorization Act, as amended, 30 ILCS 305/0.01 et seq., at the time of the issuance of the loan; and WHEREAS, the principal and interest payment shall be payable semi-annually, and the loan shall mature in 20 years, which is within the period of useful life of the Project;and WHEREAS, the costs are expected to be paid for with a loan to the City of Canton from the Public Water Supply Loan Program through the Illinois Environmental Protection Agency, the loan to be repaid from revenues of the System and the loan is authorized to be accepted at this time pursuant to the Act;and WHEREAS, in accordance with the provisions of the Act, the City of Canton is authorized to borrow funds from the Public Water Supply Loan Program in the aggregate principal amount of $1,500,000.00 to provide funds to pay the costs of the Project; WHEREAS, the loan to the City of Canton shall be made pursuant to a Loan Agreement, including certain terms and conditions, between the City of Canton and the Illinois Environmental Protection Agency; WHEREAS,the Finance Committee of City Council of the City of Canton has determined that it is advisable, necessary and in the best interests of public health, safety and welfare to approve this Ordinance; and WHEREAS, this Ordinance repeals and replaces Ordinance No. 4197, previously passed and approved by the City of Canton on June 16, 2020. BE IT ORDAINED by the City Council of the City of Canton,Fulton County,Illinois,as follows: SECTION 1. INCORPORATION OF PREAMBLES The Corporate Authorities hereby find that the recitals contained in the preambles are true and correct,and incorporate them into this Ordinance by this reference. SECTION 2. DETERMINATION TO BORROW FUNDS It is necessary and in the best interests of the City of Canton to construct the Project for the public health, safety and welfare, in accordance with the plans and specifications, as described; that the System continues to be operated in accordance with the provision of the Act; and that for the purpose of constructing the Project, it is hereby authorized that funds be borrowed by the City of Canton in an aggregate principal amount(which can include construction period interest financed over the term of the loan)not to exceed$1,500,000.00. SECTION 3. PUBLICATION This Ordinance, together with a Notice in the statutory form (attached hereto as Exhibit A), shall be published once within ten days after passage in the Daily Ledger, a newspaper published and of general circulation in the City of Canton and if no petition, signed by electors numbering 10% or more of the registered voters in the City of Canton(i.e. 945)asking that the question of improving the System as provided in this Ordinance and entering into the Loan Agreement therefore be submitted to the electors of the City of Canton is filed with the City Clerk within 30 days after the date of publication of this Ordinance and notice,then this Ordinance shall be in full force and effect. A petition form shall be provided by the City Clerk to any individual requesting one. SECTION 4.ADDITIONAL ORDINANCES If no petition meeting the requirements of the Act and other applicable laws is filed during the 30-day petition period, then the Corporate Authorities may adopt additional ordinances or proceedings supplementing or amending this Ordinance providing for entering into the Loan Agreement with the Illinois Environmental Protection Agency, prescribing all the details of the Loan Agreement, and providing for the collection, segregation and distribution of the revenues of the System, so long as the maximum amount of the Loan Agreement as set forth in this Ordinance is not exceeded and there is no material change in the Project or purposes described herein. Any additional ordinances or proceedings shall in all instances become effective in accordance with the Act or other applicable law. This Ordinance,together with such additional ordinances or proceedings,shall constitute complete authority for entering into the Loan Agreement under applicable law. However, notwithstanding the above, the City of Canton may not adopt additional ordinances or amendments which provide for any substantive or material change in the scope and intent of this Ordinance, including but not limited to interest rate, preference, or priority of any other ordinance with this Ordinance, parity of any other ordinance with this Ordinance, or otherwise alter or impair the obligation of the City of Canton to pay the principal and interest due to the Public Water Supply Loan Program without the written consent of the Illinois Environmental Protection Agency. SECTION 5. LOAN NOT INDEBTEDNESS OF CITY OF CANTON Repayment of the loan to the Illinois Environmental Protection Agency by the City of Canton pursuant to this Ordinance is to be solely from the revenue derived from revenues of the System,and the loan does not constitute an indebtedness of the City of Canton within the meaning of any constitutional or statutory limitation. SECTION 6. APPLICATION FOR LOAN The Mayor is hereby authorized to make application to the Illinois Environmental Protection Agency for a loan through the Public Water Supply Loan Program, in accordance with the loan requirements set out in 35 Ill. Adm. Code 662. SECTION 7.ACCEPTANCE OF LOAN AGREEMENT The Corporate Authorities hereby authorize acceptance of the offer of a loan through the Public Water Supply Loan Program, including all terms and conditions of the Loan Agreement as well as all special conditions contained therein and made a part thereof by reference. The Corporate Authorities further agree that the loan funds awarded shall be used solely for the purposes of the project as approved by the Illinois Environmental Protection Agency in accordance with the terms and conditions of the Loan Agreement. SECTION 7. RESERVE ACCOUNTS As long as the City of Canton has outstanding senior bonds that are payable from revenues of the system, the City of Canton shall maintain an account, coverage, and reserves equivalent to the account(s), coverage(s) and reserve(s)required by the outstanding ordinance(s). SECTION 9. AUTHORIZATION OF MAYOR TO EXECUTE LOAN AGREEMENT The Mayor is hereby authorized and directed to execute the Loan Agreement with the Illinois Environmental Protection Agency. The Corporate Authorities may authorize by resolution a person other than the Mayor for the sole purpose of authorizing or executing any documents associated with payment requests or reimbursements from the Illinois Environmental Protection Agency in connection with this loan. SECTION 10. SEVERABILITY If any section, paragraph, clause or provision of this Ordinance is held invalid, the invalidity of such section,paragraph,clause or provision shall not affect any of the other provisions of this Ordinance. SECTION 11. REPEALER All ordinances, resolutions or orders,or parts thereof, which conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby explicitly repeals and replaces ordinance No. 4197 passed by the City of Canton on June 16, 2020. PASSED AND APPROVED ON TME 20" DAY OF OCTOBER 2020: UUI/N� ""C 'Kent McDowell, ayor A ST: DOma av ey- oc , ityer PUBLISHED in the Canton Daily Ledger on October 30, 2020 RECO i ecords on October 30 ,2020 Diana—Pavley-Rock, City Clerk City of Canton Fulton County, Illinois Exhibit A NOTICE OF INTENT TO BORROW FUNDS AND RIGHT TO FILE PETITION NOTICE IS HEREBY GIVEN that, pursuant to Ordinance Number 4205, adopted on October 20, 2020 the City of Canton, Fulton County, Illinois the City of Canton, intends to enter into a Loan Agreement with the Illinois Environmental Protection Agency in an aggregate principal amount not to exceed $1,500,000.00 and bearing annual interest at an amount not to exceed the maximum rate authorized by law at the time of execution of the Loan Agreement, for the purpose of paying the cost of certain improvements to the public water supply system of the City of Canton. A complete copy of the Ordinance accompanies this notice. NOTICE IS HEREBY FURTHER GIVEN that if a petition signed by 945 or more electors of the City of Canton (being equal to 10% of the registered voters in the City of Canton), requesting that the question of improving the public water supply system and entering into the Loan Agreement is submitted to the City Clerk within 30 days after the publication of this Notice,the question of improving the public water supply system of the City of Canton as provided in the Ordinance and Loan Agreement shall be submitted to the electors of the City of Canton at the next election to be held under general election law on April 6, 2021. A petition form is available from the office of the City Clerk, 2 N. Main Street, Canton, 1 'nois 61 0. City C erk City of Canton Fulton County, Illinois CERTIFICATION I, Diana Pavley Rock, do hereby certify that I am the duly elected, qualified and acting Clerk of the City of Canton. I do further certify that the above and foregoing, identified as Ordinance Number 4205 is a true, complete and correct copy of an ordinance otherwise identified as an ordinance authorizing the City of Canton Fulton County Illinois to borrow funds from the public water supply loan program passed by the City Council members of the City of Canton on the 20th day of October, 2020, and approved by the Mayor of the City of Canton on the same said date, the original of which is part of the books and records within my control as Clerk of the City of Canton. Dated this 20th day of October,2020. ll � City Clerk City of Canton Fulton County, Illinois i NO REFERENDUM CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified, and acting City Clerk of the City of Canton, Fulton County,Illinois,and as such officer I am the keeper of the books,records,files and journal of proceedings of the City of Canton and the Mayor and City Council of the City of Canton. I do further certify that Ordinance Number 4205 being the Ordinance entitled: An ordinance authorizing the City of Canton, Fulton County Illinois to borrow funds from the public water supply loan program was presented to and passed by the Mayor and City Council of the City of Canton at its legally convened meeting held on the 20'' day of October, 2020 and signed by the Mayor of the City of Canton on said day. I do further certify that the Ordinance was duly and properly published in the Daily Ledger , a newspaper published and of general circulation within the City of Canton,on the 30th day of October, 2020,being a date within ten days from the date of passage of the Ordinance. I do further certify that publication of the Ordinance was accompanied by a separate publication of notice of (1) the specific number of voters required to sign the petition requesting the question of constructing improvements to the public water supply system as provided in the Ordinance; (2) the time in which such petition must have been filed; and(3)the date of the prospective referendum. I do further certify that I did make available and provide to any individual so requesting a petition form, which petition form provided for submission to the electors of the City of Canton of the question as set forth therein. Such petition forms were available from me continuously from October,2020, up to and including November 30, 2020 I do further certify that no Petition has been filed in my office within 30 days after publication of the Ordinance or as of the time of the signing hereof as provided by statute asking that the question of improving the public water supply system as provided in the Ordinance and the Loan Agreement therefore be submitted to the electors of the City of Canton. IN WITNESS WHEREOF I have hereunto affixed my official signature and the corporate seal of the City of Canton, Fulton County, Illinois, this 20'--day of October 2020. City Clerk City of Canton Fulton County, Illinois (SEAL)