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HomeMy WebLinkAboutOrdinance #1678 ORDINANCE NO. 1678 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 Chapter 415 ILCS which authorizes operation of a public water supply system and the Local Government Debt Reform Act, 30 ILCS 350/1 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 $4,040,000.00 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 L 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 $4,040,000.00. 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 l0% 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 ORDIANCES 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. RESERVE ACCOUNTS There shall be a reserve account as follows: The fractional amount to be set aside each month in such Reserve Account, the fraction shall be so computed that a suillcient amount will be set aside in such Reserve Account and will be available for the prompt payment of such principal of and interest on all Outstanding Bonds and shall be not less than one-fifth (1 /S) of the interest becoming due on the next succeeding interest payment date and not less than one-tenth (1/10) of the principal becoming due (or subject to mandatory redemption) on the next succeeding principal payment date on all Outstanding Bonds until there is sufficient money in such Debt Service Account to pay such principal or interest, or both. Credits into such Debt Service Account may be suspended in any Fiscal Year at such time as there shall be a sufficient sum held in cash and investments in such Account to meet principal and interest requirements in such Account for the balance of such Fiscal Year, but such credits shall again be resumed at the beginning of the next Fiscal Year. All moneys in such Debt Service Account shall be used only for the purpose of paying interest and principal and applicable premium on Outstanding Junior Bonds. SECTION 8. 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 9. SEVERABILITY If any section, paragraph, clause or provision of th is 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 1Q. 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 5th day of December , 2000. AYES: Aldermen May, Shores, Meade, Nidiffer, Phillips., Sarff, Hartford, Molleck. NAYS: None . ABSENT: Nom . APPROVED: onald E. Edwards, Mayor ATTEST: ~~ Nancy Whites, Clerk.