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HomeMy WebLinkAboutG3-25 Ordinance No.G3-25 AN ORDINANCE AUTHORIZING THE CITY OF ELGIN,KANE COUNTY, ILLINOIS TO BORROW FUNDS FROM THE ILLINOIS ENVIRONMENTAL PROTECTION AGENCY'S PUBLIC WATER SUPPLY LOAN PROGRAM FOR THE CITY OF ELGIN LEAD SERVICE LINE REPLACEMENT PROJECT WHEREAS, the City of Elgin, Kane County, Illinois(the"City"),operates its public water supply system (the "System") and in accordance with the provisions of Article VII of the Illinois Constitution and the Local Government Debt Reform Act,30 ILCS 350/1 et seq. (collectively the "Act"); and WHEREAS, the Mayor and the City Council of the City of Elgin (the "Corporate Authorities") have determined that it is advisable, necessary, and in the best interest of the public health,safety, and welfare to improve the System, including the.following: Replacement by the City of the publicly-owned and privately-owned portions of the lead water service from the water meter to the water main for up to 870 properties; 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 the consulting engineers of the City of Elgin which Project has a useful life of 100 years; and WHEREAS, the estimated cost of construction and installation of the Project, including engineering, legal, financial and other related expenses is up to Fifteen Million Dollars ($15,000,000), and there are insufficient funds on hand and lawfully available to pay these costs; and WHEREAS,the loans 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 loans; and WHEREAS,to principal and interest payment shall be payable semi-annually,and the loans shall mature in no greater than 30 years,which is within the period of useful life of the Project; and WHEREAS, the costs are expected to be paid for with loans to the•City' from the Public Water Supply Loan Program through the Illinois Environmental Protection Agency,the loans to be repaid from revenues of the System, and the loans are 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 Public Water Supply Loan Program in the aggregate principal amount of up to $15,000,000 to provide funds to pay the costs of the Project; and WHEREAS, the loans to the City shall be made pursuant to Loan Agreements, 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 CITE' OF ELGIN, KANE 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 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 the aggregate principal amount(which can include construction period interest financed over the term of the loans) not to exceed$15,000,000. SECTION 3.ADDITIONAL ORDINANCES The Corporate Authorities may adopt additional ordinances or proceedings supplementing or amending this Ordinance, providing for entering into the Loan Agreements with the Illinois Environmental Protection Agency, prescribing all the details of the Loan Agreements, and providing for the collection, segregation and distribution of the revenues of the System, so long as the maximum amount of the Loan Agreements 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 laws. This Ordinance, together with such additional ordinances or proceedings, shall constitute complete authority for entering into the Loan Agreements 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 of 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 4. LOANS NOT INDEBTEDNESS OF THE CITY • Repayment of the loans to the Illinois Environmental Protection Agency by the City pursuant to this Ordinance is to be solely from the revenue derived from the revenues of the System, and the loans do not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation. • • SECTION 5.APPLICATION FOR LOANS • The City Manager is hereby authorized to make application to the Illinois Environmental Protection Agency for loans through the Public Water Supply Loan Program, in accordance with the loan requirements set out in 35 Ill. Adm. Code 662. SECTION 6. ACCEPTANCE OF LOAN AGREEMENTS The Corporate Authorities hereby authorize acceptance of the offer of loans through the Public Water Supply Loan Program, including all terms and conditions of the Loan Agreements 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 Agreements. SECTION 7.OUTSTANDING BONDS The City has outstanding bonds,payable from revenues of the system, that are senior to the loans authorized by this Ordinance, and the City establishes an account, coverage, and reserves equivalent to the account(s), coverage(s) and reserve(s) as the senior lien holders in accordance with 35 Ill. Adm. Code 662.350(a)(9)(C)(PWS). • SECTION 8.AUTHORIZATION OF MAYOR TO EXECUTE LOAN AGREEMENTS The Mayor is hereby authorized and directed to execute the Loan Agreements 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 o, executing any documents associated with payment requests or reimbursements from the Illinois Environmental Protection Agency in connection with these loans. • SECTION 9. 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 IQ. REPEALER All ordinances, resolutions, orders, or parts thereof, which conflict with the provisions of this Ordinance,to the extent of such conflict,are hereby repealed. SECTION 11. EFFECTIVE DATE • That this ordinance shall be in full force and effect upon its passage and publication in the manner provided by law. avid J. K ain, ayor Presented: February 12, 2025 Passed: February 12, 2025 Omnibus Vote: Yeas: 9 Nays: 0 Recorded: February 12, 2025 -411* Published: February 12, 2025 Atte . 1, , v�: imberly Dewi Ci C erk • ayY`�;.s 4