HomeMy WebLinkAboutOrdinance #1688~~
ORDINANCE NO. 1688
AN ORDINANCE AMENDING ORDINANCE NUMBER 1678 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 is a non-home rule
municipality duly established and operating its municipally-owned waterworks and
sewerage system in accordance with Division 139 of Article 11 of the Illinois Municipal
Code (65 ILCS 11/139-1 et seq. Local Government Debt Reform Act, 30 ILCS 350/1 et
seq. (collectively "the Act"); and,
WHEREAS, the 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
improve the System, including the following:
Water Plant & Water Transmission Line Improvements,
designed to last more than twenty years,
together with 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 to the City
of Canton; and,
WHEREAS, the estimated cost of construction and installing the Project,
including engineering, legal, financial and other related expenses is $4.3 million, and
there are insufficient funds on hand and lawfully available to pay these costs; 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 (415 ILCS
5/19.3) in the aggregate principal amount of $4,300,000.00 to provide funds to pay the
costs of the Project; and,
WHEREAS, the loan to the City of Canton shall be made pursuant to a Loan
Agreement, including certain terms and conditions, between the City and the Illinois
Environmental Protection Agency.
NOW, THEREFORE 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 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 continue to be operated in accordance with
the provisions of the Illinois Environmental Protection Act, 415 ILCS 5/1 et. seq.; 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 includes construction
period interest financed over the term of the loan) not to exceed $4,300,000.00.
SECTION 3. PUBLICATION
This Ordinance, together with a notice in the statutory form, shall be published
once within ten days after passage in the Canton 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 (i.e. 922 electors) and 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 Canton 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 Canton City Clerk to any individual requesting one.
SECTION 4. ADDITIONAL ORDINANCES
If no petition meeting the requirements of the Act and other applicable law 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 dedicated 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 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 Public Water Supply Loan Program without the written consent of
the Illinois Environmental Protection Agency.
SECTION 5. LOAN NOT INDEBTEDNESS OF CITY
Repayment of the loan to the Illinois Environmental Protection Agency by the
City pursuant to this Ordinance is to be solely from the revenues of the system 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 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. The loan funds
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. SUBORDINATION TO ORDINANCE 1451
This ordinance shall be deemed to be a revenue bond that is subordinate to the
bonds established by Ordinance #1451 adopted by the City of Canton February 7, 1995.
Provisions of Sections 11 and 13 of Ordinance # 1451 shall apply to this ordinance so
long as the bonds established by Ordinance 1451 are outstanding.
SECTION 8. RESERVE ACCOUNTS
There shall be a reserve account established and maintained for the life of the loan
in an amount equal to the amount of principal and interest paid to the Illinois
Environmental Protection Agency under the loan during one year (i.e., one annual
payment or two semi-annual payments). The reserve account shall be funded over a 12-
month period by monthly payments with the first monthly payment being due one month
after the final payment schedule is established. The reserve account shall be segregated
in an account named, IEPA Loan #1594 Reserve Account, shall only be used for the
payment of Principal and interest due under the loan agreement.
SECTION 9. AUTHORIZATION OF MAYOR TO EXECUTE LOAN
AGREMENT
The Mayor is hereby authorized and directed to execute the Loan Agreement with
the Illinois Environmental Protection Agency.
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.
PASSED by the City Council of the City of Canton, Fulton County, Illinois at a
regular meeting this 20t1z day of February , 2001.
AYES• Aldermen May, Shores, Meade, Nidiffer, Phillips, Sarff,
• Hartford, r'blleck,
NAYS: None
ABSENT: '.None.
APPROVED:
Donald E. Edwar s, Mayor
Attest:
ancy White City Clerk.