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HomeMy WebLinkAboutOrdinance #4448 - Declaring Surplus Revenue in the Canton 1-Downtown/5th Avenue TIF District CERTIFICATE THE UNDERSIGNED CERTIFIES THAT SHE IS THE CITY CLERK FOR THE CITY OF CANTON, ILLINOIS, AND THAT THE CITY COUNCIL AT A REGULARLY CONSTITUTED MEETING OF SAID CITY COUNCIL OF THE CITY OF CANTON ON THE 4m DAY OF MARCH, 2025 ADOPTED ORDINANCE NO. 4448. A TRUE AND CORRECT COPY OF WHICH IS CONTAINED IN THIS PAMPHLET. GIVEN UNDER MY HAND AND SEAL THIS 4m DAY OF MARCH,2025. (SEAL) Ay&DREA f.SMITH-WALTERS CITY CLERK CITY OF CANTON, ILLINOIS ORDINANCE NO. 4448 AN ORDINANCE DECLARING SURPLUS REVENUE IN THE CANTON 1- DOWNTOWN/5TH AVENUE TIF DISTRICT SPECIAL TAX ALLOCATION FUND AND AUTHORIZING PAYMENT OF THAT SURPLUS REVENUE TO THE FULTON COUNTY TREASURER FOR DISTRIBUTION TO AFFECTED TAXING DISTRICTS ON A PRO RATA BASIS for TAX YEAR 2023 PAYABLE 2024 ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, ON THE 4TH DAY OF MARCH, 2025. PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY COUNCIL OF THE CITY OF CANTON,FULTON COUNTY,ILLINOIS, THIS 4TH DAY OF MARCH,2025. EFFECTIVE: MARCH 4,2025 1 ORDINANCE NO. 4448 CITY OF CANTON,ILLINOIS AN ORDINANCE DECLARING SURPLUS REVENUE IN THE CANTON 1- DOWNTOWN/5TH AVENUE TIF DISTRICT SPECIAL TAX ALLOCATION FUND AND AUTHORIZING PAYMENT OF THAT SURPLUS REVENUE TO THE FULTON COUNTY TREASURER FOR DISTRIBUTION TO AFFECTED TAXING DISTRICTS ON A PRO RATA BASIS for TAX YEAR 2023 PAYABLE 2024 PREAMBLE WHEREAS, on the 6`' day of July,A.D., 2004, the City of Canton,Fulton County,Illinois (the"City") by its duly elected Mayor and City Council and pursuant to 65 Illinois Compiled Statutes Section 5/11-74.4 et. seq. (the "TIF Act") heretofore adopted a Redevelopment Plan and Projects; designated a Redevelopment Project Area;and adopted Tax Increment Financing for the Canton 1 - Downtown/5th Avenue Tax Increment Financing (TIF) District (f/k/a the International Harvester Site TIF District) (the"TIF District");and WHEREAS, pursuant to the TIF Act, the City approved the First Amendment to the Canton 1-Downtown/5th Avenue TIF District Redevelopment Project Area, Plan and Projects on November 22,2011 by Ordinance No. 2052;and WHEREAS, pursuant to the TIF Act, the City approved the Second Amendment to the Canton 1 -Downtown/5th Avenue TIF District Redevelopment Project Area,Plan and Projects on February 6,2012 by Ordinance No. 2071;and WHEREAS, pursuant to the TIF Act, the City approved the Third Amendment to the Canton 1 - Downtown/5th Avenue TIF District Redevelopment Project Area, Plan and Projects on April 5, 2017 by Ordinance No. 4068, 4069 and 4070;and WHEREAS,on the 4`'day of June,2013 the City by its duly elected Mayor and City Council and pursuant to the TIF Act approved and Authorized the Execution of a First Amendment to an Intergovernmental Agreement with Canton Union School District No. 66 (the "School District") by Ordinance No. 3016 for the Canton 1 -Downtown/5th Avenue TIF District and the Canton 2 -Rt. 9/Chestnut Street TIF District;and WHEREAS,pursuant to said First Amendment to the Intergovernmental Agreement with the School District the City has determined that the TIF District has not resulted in a net increase in new students enrolled in the School District who also reside in TIF-assisted housing units within the TIF District;and WHEREAS,the City Treasurer has determined and reported that as of December 31,2024, the City has received $795,155.21 in total distributions from the Fulton County Treasurer for real 2 estate tax increment generated by the TIF District in tax year 2023 payable 2024 as shown in Exhibit 1,including$46,178.54 from the"Hotel Development Site";and WHEREAS,the City Treasurer has determined and reported that as of December 31,2024, the Canton 1 - Downtown/5th Avenue TIF District Special Tax Allocation Fund includes a surplus of$9,235.71 which represents twenty percent (209/6) of the real estate tax increment deposited into the Fund for the "Hotel Development Site" for tax year 2023 payable 2024, which surplus amount may be paid at this time to the Fulton County Treasurer for distribution to taxing districts in the Redevelopment Project Area in accordance with the provisions of the TIF Act as shown in Exhibit 2;and WHEREAS,the Mayor and City Council of the City of Canton hereby find and determine that it is appropriate to declare surplus in the amount of$9,235.71 and to cause that surplus to be distributed by the County Treasurer to the taxing districts as provided in the TIF Act. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS: 1. The recitals set forth in the preamble to this Ordinance are hereby incorporated by reference as if fully set forth herein. 2. The Mayor and City Council, pursuant to Sections 4-7 and 4-9 of the TIF Act and other applicable authority, hereby declare a surplus of funds in the Canton 1 - Downtown/5th Avenue TIF District Special Tax Allocation Fund in the amount of$9,235.71,to be distributed by the Fulton County Treasurer to all the taxing districts in the Redevelopment Project Area as shown in Exhibit 2. 3. The City Treasurer is hereby authorized and directed to pay such funds from the Canton 1- Downtown/5th Avenue TIF District Special Tax Allocation Fund in the amount of$9,235.71 to the Fulton County Treasurer for distribution to the taxing districts in the Redevelopment Project Area in accordance with the provisions of the TIF Act. Payment by the City Treasurer shall be made not more than 180 days after the close of the City's Fiscal Year 2025. The City Treasurer also is authorized and directed to file a certified copy of this Ordinance with the Fulton County Treasurer. 4. This Ordinance shall be in full force and effect from and after its passage and approval as provided by law and shall take effect upon its passage as required by law. 3 LOCALiQ The State Journal-Register 1 Canton Daily Ledger The Courier I The Register-Mail IJournalstar PO Box 631200 Cincinnati,OH 45263-1200 The McDonough County Voice I Star Courier Pontiac Daily Leader I Pekin Daily Times Journal-Standard I Rockford Register Star AFFIDAVIT OF PUBLICATION Shelly A.Scinto Miller Canfield 227 West Monroe Street,Suite 3600 Chicago 60606 STATE OF ILLINOIS,COUNTY OF FULTON The Daily Ledger,a daily newspaper of general circulation, printed and published_in Canton, Fulton County,Illinois; that the publication,a copy of which is attached hereto, was published in said newspaper in the issues dated: 02/16/2025 That said newspaper was regularly issued and circulated on those dates and that the fees charged are legal. Sworn to and subscribed before on 02/16/2025 Legal Cler Notary,SLora of Brown My commissiof expires Publication Cost: $305.80 Tax Amount $0.00 Payment Cost: $305.80 - Order No: 11034448 #of Copies: Customer No: 858141 1 PO#: THIS IS NOT AN INVOICE! Please do not use this jornt jar parnrent remittance. AMY KOKOTT Notary Public State o WWisconsin Page 1 of 3 Page 1 of 2 NOTICE OF INTENT TO BORROW FUNDS AND RIGHT TO FILE PETITION NOTICE IS HEREBY GIVEN that, pursuant to Ordinance Number 4446, adopted on February 10, 2025, the City of Canton, Fulton County, Illinois (the"City"), intends to enter into a Loan Agreement with the Illinois Environmental Protection Agency in an aggregate principal amount not to exceed$50,000,000 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 combined waterworks and sewerage system(the"System")of the City. A complete copy of the Ordinance is attached hereto and appears below this Notice. NOTICE IS HEREBY FURTHER GIVEN that if a petition signed by 906 or more electors of the City(being equal to 10 of the registered voters in the City),requesting that the ques- tion of improving the 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 System of the City as provided in the Ordinance and Loan Agreement shall be submitted to the electors of the City at the general primary election to be held on the 17th day of March, 2026. A petition form shall be provided by the City Clerk at the principal office of the City, located at 2 North Main Street,Canton,Illinois. Andi Walters,City Clerk, City of Canton, Fulton County, Illj- nois ORDINANCE NUMBER 4446 AN ORDINANCE authorizing the City of Canton,.Fulton County,Illinois,to borrow funds from the Water Pollution Control Loan Program of the Illinois Environmental Protec- tion Agency. WHEREAS,the City of Canton, Fulton County, Illinois (the "City") operates its combined waterworks and sewerage system (the"System") in accordance with the provisions of the Illinois Municipal Code (65 ILCS 5/11-139) and the Local Government Debt Reform Act of the State of Illinois (the "State"),30 ILCS 35011 (collectively,the"Act'),and WHEREAS,the Council of the City(the"Corporate Authori- ties") has determined that it is advisable, necessary and in the best interests of public health,safety and welfare of the City and its residents to make improvements to the Canton Wastewater Treatment Plant, including, any and all other System-related projects and improvements in connection thereto,together with any land or rights to land and all elec- trical, mechanical or other services necessary, useful or advisable to the construction and installation (collectively, the"Project"),all in accordance with the plans and specifi- cations prepared by consulting engineers of the City, which Project has a useful life of 40 years;and WHEREAS,the estimated cost of construction and installa- tion of the Project, including engineering, legal, financial, and other related expenses is$50,000,000,and there are insuf- ficient funds on hand and lawfully available to pay these costs;and WHEREAS, the loan shall bear an interest rate as defined by 35 III. Adm. Code 365, which does not exceed the maxi- mum 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 30 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 from the Water Pollution Control Loan Program (the "Loan") through the Illinois Environmental Protection Agency (the "[EPA"), the Loan to be repaid from the Net Revenues (i.e.,gross revenues minus operations and mainte- nance expenses) of the System (the "Pledged Revenues"), 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 is authorized to borrow funds from the Water PDIIu- tion Control Loan Program of an aggregate principal amount of not to exceed$50,000,000 to provide funds to pay the costs of the Project;and WHEREAS, the Loan to the City shall be made Pursuant to a Loan Agree- ment, including certain terms and conditions, between the City and the[EPA; NOW THEREFORE, Be It Ordained by the Corporate Authorities 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 incorpo- rate them into this Ordinance by this reference. SECTION 2.DETERMINATION TO BORROW FUNDS It is necessary and in the best interests of the City 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 accor- dance with the provisions of the Act; and that for the purpose of constructing the Project,it is hereby authorized that funds be borrowed by the City in an aggregate principal amount (which can include construction period interest financed over the term of the Loan) in one or more draws not to exceed $50,000,000 in the aggregate. SECTION 3.SECTION 3. PUBLICATION This Ordinance,together with a Notice in the statutory form (attached hereto as Exhibit A), shall be published once within ten (10) days after passage in the Canton Daily Ledger,a newspaper published and of general circulation in the City,and if no petition,signed by electors numbering 10 or more of the registered voters in the City(i.e.,906 or more) asking that the question of improving the System as provided P W Page 2 of 2 in this Ordinance and entering into the Loan Agreement therefore be submitted to the electors of the City,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 IEPA,prescribing all the details of the Loan Agreement,and Providing for the collection, segregation, and distribution of the Pledged Revenues, 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 Prolect or purposes described herein. Any additional ordinances or proceedings shall in all instances become effective in accor- dance 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 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, prefer- ence,or priority of any other ordinance with this Ordinance, parity of any other ordinance with this Ordinance, or other- wise alter-or impair-the obligation of-the-City-to-pay the grin- -- - cipal and interest due to the Water Pollution Control Loan Program without the written consent of the IEPA. SECTION S.LOAN NOT INDEBTEDNESS OF CITY Repayment of the Loan to the IEPA by the City pursuant to this Ordinance is to be solely from the Pledged Revenues, and the Loan does not constitute an indebtedness of the City within the meaning of any constitutional or statutory limita- tion. SECTION 6.APPLICATION FOR-LOAN The Mayor is hereby authorized to make application to the IEPA for a loan through the Water Pollution Control Loan Program, in accordance with the loan requirements set out in 35 III.Adm.Cade 365. SECTION 7.ACCEPTANCE OF LOAN AGREEMENT The Corporate Authorities hereby authorize acceptance of the offer of a loan through the Water Pollution Control 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 Author- ities further agree that the Loan funds awarded shall be used solely for the purposes of the Proiect as approved by the IEPA in accordance with the terms and conditions of the Loan Agreement. SECTION 8.OUTSTANDING BONDS The City has no outstanding bonds that are payable from the Pledged Revenues. SECTION 9.AUTHORIZATION FOR MAYOR TO EXECUTE LOAN AGREEMENT The Mayor is hereby authorized and directed to execute the Loan Agreement with the IEPA. The Corporate Authorities may authorize by resolution a person other than the Mayor for the sale purpose of authorizing or executing any docu- ments associated with payment requests or reimbursements from the IEPA in connection with the Loan. SECTION 10.SEVERABILITY If any section, Paragraph, clause or provision of this Ordi- nance is held invalid, the invalidity of such section, Para- graph, 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 repealed. PASSED by the Corporate Authorities on February 10,2025. Approved February 10,2025. Kent A. McDowell, Mayor, City of Canton, Fulton County, Illinois RECORDED in the City Records on February 10,2025. ATTEST: Andi Walters, City Clerk, City of Canton, Fulton County,Illinois PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton, Fulton County, Illinois, on the 4' day of March,A.D., 2025, and deposited and filed in the Office of the City Clerk of said City on that date. MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT Alderman Justin Nelson Alderwoman Angela Lingenfelter Alderman Patrick Ketcham Alderman Ralph Grimm Alderman Greg Gossett Alderwoman Andra Chamberlin Alderman John Lovell Alderwoman Angela Hale Mayor Kent McDowell TOTAL VOTES APPROVED: ATTEST: g6 Mayor ity Clerk ATTACHMENT: EXHIBIT 1: Canton 1-Downtown/5th Ave TIF District Real Estate Tax Increment Distributions EXHIBIT 2: Canton 1-Downtown/5th Ave TIF District Surplus Distribution Calculation 4 EXHIBIT 1 Canton 1-Downtown/5th Avenue TIF District Real Estate Tax Increment Distributions Received by the City of Canton from the Fulton County Treasurer for tax year 2023 payable 2024 5 Tax Year:2023 Final Settlement Sheet Page 1 of 1 Fulton County 11/21/2024 8:43 INIH -CANTON 1-DOWNTOWN/ 5TH AVENUE INCREMENT Current Year Taxes Due Current Year Taxes Paid Original Amount Due $927,481.52 + Real Estate $795,986.14 + Supplements $0.00 + Railroad $0.00 Cancellations $135.70 + Mobile Home $0.00 Abatements/Refunds $0.00 + Misc.Adjustments $55.85 + Mobile Home $0.00 + Prior Year Real Estate ($886.78) +/- Road &Bridge Transfer $0.00 + Prior Year Mobile Home $0.00 + Misc.Adjustments $55.85 + Prior Year Misc.Adjustments $0.00 Adjusted Amount Due $927,401.67 Abatements/Refunds $0.00 + Prior Year Real EstateTax ($886.78) Total Collected $795,166.21 + Prior Year Mobile Home Tax $0.00 + Hold Back $0.00 + Prior Year Misc.Adjustments $0.00 + County Trustee $2,130.94 Totat Amount Due $926,614.89 + Forfeited Tax $129,22-8-74 Total $926,614.89 Interest Distribution County Interest $1,063.94 Township Interest $0.00 Total Interest $1,063.94 Distribution Summary Tax Distribution Date Amount 05/31/2024 $48,053.08 06/28/2024 $370,024.60 07/31/2024 $8,081.19 08/30/2024 $48,679.16 09/30/2024 $314,053.29 11/25/2024 $6,263.89 Totals:6 Distributions $796,165.21 Interest Distribution Date Amount 11/25/2024 $1,063.94 Totals: 1 Distributions $1,063.94 Grand Totals:7 Distributions $796,219.15 Fund Summary Previously Current Amount PY Over Fund Amount Collected Distributed Distribution Available Interest Distrib 001 -CORPORATE $795,155.21 $788,891.32 $6,263.89 $0.00 $1,063.94 $0.00 Totals $795,155.21 $788,891.32 $6,263.89 $0.00 $1,063.94 $0.00 Miscellaneous Adjustment Detail X= Source Account Tyne AmouII Adjustment Description 2023 RE-Real Estate Back Tax Collected $0.00 09-08-35-105-006 by TBA 2023 RE-Real Estate Back Tax Collected $0.00 09-08-27-415-014 by TBA 2023 RE-Real Estate Back Tax Collected $55.85 09-08-27-415-014 by TBA Tota s 3 entries $55.85 (C)2024 DEVNET Incorporated CKINNAMON EXHIBIT 2 Canton 1-Downtown/5th Avenue TIF District Surplus Distribution Calculation for tax year 2023 Payable 2024 6 EXHIBIT 2 CANTON 1 - DOWNTOWN/5TH AVE TIF DISTRICT 2023 PAYABLE 2024 SURPLUS CALCULATION Parcel# 09-08-27-409-011 2023 Hotel Real Estate Tax Increment: $46,178.54 2023 Hotel Surplus (20%): $9,235.71 District's 2023 Tax %of Total Share of Taxing District Rate Tax Rate Surplus City of Canton 2.3434% 23.80% $2,197.68 Canton Park District 0.5869% 5.96% $550.40 Parlin-Ingersol Library 0.2152% 2.19% $201.82 Canton Township 0.2222% 2.26% $208.38 Canton Twp Road 0.3498% 3.55% $328.05 Canton Union SD#66 4.0536% 41.16% $3,801.53 Fulton Co Ambulance 0.1946% 1.98% $182.50 Fulton County 1.2460% 12.65% $1,168.52 Spoon River Jr Coll 534 0.6364% 6.46% $596.83 Totals 9.8481% 100.00%1 $9,235.71 School Share Calculation: Total School Share of Hotel Increment(10%): $4,617.85 School Share of Surplus: $3,801.53 Additional School Share: $816.32 H:IC4NTONkC4AITON7IFIUlNTONl-DT STHAVfTIFIspreadsheehI5urpluscalculotions The Economic Development Group,Ltd.