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HomeMy WebLinkAboutOrdinance #4446 - Authorizing the City to Borrow Funds from the Water Pollution Control Loan Program of the IEPA CERTIFICATION I, Andrea J. Smith-Walters,hereby certify that I am the duly elected, qualified City Clerk of the City of Canton, Fulton County, Illinois. I do further certify that the above and foregoing, identified as Ordinance Number 4446 , 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 Water Pollution Control Loan Program of the Illinois Environmental Protection Agency" passed by the Council of the City of Canton on the loth day of February, 2025 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 1 Oth day of February, 2025. r ity Clerk ity of Canton Fulton County, Illinois 43302162.2/088888.05277 EXTRACT OF MINUTES of a regular public meeting of the City Council of the City of Canton, Fulton County, Illinois, held at the Historic Depot — Donald E. Edwards Way, 50 North 4th Avenue, Canton, Illinois, at 6:00 p.m., on the 1 Oth day of February, 2025. The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon the roll being called, the Mayor and the following Aldermen answered physically present at said location: Chamberlin, Grimm,Nelson,Lovell,Hale, Gossett,Ketcham The following Aldermen were allowed by a majority of the Council in accordance with and to the extent allowed by rules adopted by the Council to attend the meeting by video or audio conference: No Alderman was not permitted to attend the meeting b video or audio conference. p g Y The following Aldermen were absent and did not participate in the meeting in any manner or to any extent whatsoever: Lingenfelter \ The Council then discussed a proposed capital infrastructure improvement project fo the City and considered an ordinance providing for the authorization to borrow funds from the Water Pollution Control Loan Program of the Illinois Environmental Protection Agency. Whereupon Alderman Chamberlin presented and read by title an ordinance as follows, a copy of which was provided to each member of the Council prior to said meeting and to everyone in attendance at said meeting who requested a copy: 43302162.2/088888.05277 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 Protection 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 350/1 (collectively,the "Act"), and WHEREAS, the Council of the City (the "Corporate Authorities") 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 in land and all electrical, mechanical or other services necessary, useful or advisable to the construction and installation(collectively,the"Project"), all in accordance with the plans and specifications prepared by consulting engineers of the City, which Project has a useful life of 40 years; and WHEREAS, the estimated cost of construction and installation of the Project, including engineering, legal, financial, and other related expenses is $50,000,000, 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 365,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 30 years,which is within the period of useful life of the Project; and 43302162.2/088888.05277 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 "IEPA"), the Loan to be repaid from the Net Revenues (i.e., gross revenues minus operations and maintenance 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 Pollution 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 Agreement, including certain terms and conditions,between the City and the IEPA; 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 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 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 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. 43302162.2/088888.05277 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 Peoria Journal Star,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 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 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 may not adopt additional ordinances or amendments which provide for any substantive or material change in the scope and intent of this 43302162.2/088888.05277 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 to pay the principal and interest due to the Water Pollution Control Loan Program without the written consent of the IEPA. SECTION 5. 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 limitation. 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 Ill. Adm. Code 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 Authorities further agree that the Loan funds awarded shall be used solely for the purposes of the Project 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. 43302162.2/088888.05277 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 sole purpose of authorizing or executing any documents 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.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 repealed. THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK 43302162.2/088888.05277 PASSED by the Corporate Authorities on February 10, 2025. Approved February 10, 2025. ayor City of Canton Fulton County, Illinois AYES: Alderpersons Chamberlin, Grimm,Nelson, Lovell Hale, Gossett, Ketcham NAYS:None ABSENT: Lingenfelter RECORDED in the City Records on February 10, 2025. ATTEST: ty Clerk ity of Canton Fulton County, Illinois 43302162.21088888.05277 EXHIBIT A 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 question 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. /s/Andi Walters City Clerk, City of Canton, Fulton County, Illinois 43302162.2/088888.05277 PETITION To the City Clerk of City of Canton,Fulton County,Illinois(the"City"): We,the undersigned,being registered voters of the City, do hereby petition you to cause the question of the City improving the combined waterworks and sewerage system of the City(the"System") and entering into a loan agreement(the"Loan")for the purpose of paying the cost of certain improvements to the System,with said Loan to be repaid from the Net Revenues(i.e.,gross revenues minus operations and maintenance expenses)of the System to be certified to the County Clerk of Fulton County,Illinois, and submitted to the electors of said County at the next election to be held at which said question may be voted upon. Name Address Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois Canton,Fulton County,Illinois I, of (insert residence address), , Illinois,do hereby certify that I am a citizen of the United States and at least 18 years of age or older,and in the County of Fulton,Illinois, and that the signatures on this petition were signed in my presence, and are genuine, and,to the best of my knowledge and belief,the persons so signing were at the time of signing this petition registered voters of said City and that their respective addresses are correctly stated herein. /s/ Subscribed and sworn to before me this day of ,2025. Illinois Notary Public My Commission Expires: 43302162.2/088888.05277