Loading...
HomeMy WebLinkAboutT19-16 Ordinance No. T19-16 ORDINANCE AMENDING ORDINANCE NO. T24-15 ESTABLISHING AN AMENDED EMERGENCY LOAN PROGRAM FOR HUMAN SERVICE AGENCIES WHEREAS, the State of Illinois has not adopted a budget for the 2015-2016 fiscal year, which began on July 1, 2015; and WHEREAS,the failure of the State of Illinois to adopt a budget has left a number of human service agencies without the necessary funding to provide critical services to Elgin residents; and WHEREAS, the City Council of the City of Elgin has determined that it is necessary and desirable to provide for a temporary one-year emergency loan program to human service agencies that are facing financial and operational emergencies due to the lack of payments from the State of Illinois that were otherwise due and owing to be made to such human service agencies; and WHEREAS,the City of Elgin is a home rule unit and as a home rule unit may exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, providing for a temporary emergency loan program to certain local human service agencies will protect the public health, safety and welfare of the city and pertains to the government and affairs of the city; and WHEREAS, on December 2, 2015, the City Council of the City of Elgin adopted Ordinance No. T24-15, establishing an emergency loan program for human services; and WHEREAS, the City Council of the City of Elgin has determined that it is desirable to provide for certain amendments to such emergency loan program for human services; and WHEREAS, the provisions of this ordinance are intended to provide for an amended emergency loan program for human services and to supersede the provisions of Ordinance No. T24-15. NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. There is hereby established a temporary emergency loan program for local human service agencies with the following terms and provisions: 1. Purpose. The purpose of this temporary emergency loan program is intended to provide one time short-term financial assistance in 2016 to local human service agencies whose ongoing services have been jeopardized due to the State of Illinois' budget crisis. 2. Funding. The City of Elgin will make available up to $625,000 in total funds for the temporary emergency loan program. The amount of any loans to a particular human service agency shall be as determined by the City Council. In formulating recommendations to the City Council as to loan amounts to each agency, the review committee shall consider the total funds available, the services provided by various requesting agencies, the number of requests and the scope of an agency's request. 3. Eligibility. Applications will be considered for human service agencies that meet the following minimum requirements: a. Elgin-based not-for-profit organizations with 501C3 IRS tax exempt status that serve Elgin residents. b. The human service agency must demonstrate lack of payments from the State of Illinois based upon a contract with the State of Illinois in fiscal year 2015 and/or fiscal year 2016. c. The human service agency must demonstrate challenges to sustain operations due to lack of state payments. d. Priority consideration shall be given to those local human service agencies that provide services in the following areas: food, shelter, health care, mental health, domestic violence and child care. 4. Review Process and Time Line. Application forms shall be prepared by the City Manager and shall be made available online. a. A review committee shall be established by the City Manager to review applications and make recommendations to the City Manager, and ultimately, to the City Council for final approval. The review committee shall consist of at least three (3) individuals and no more than five(5)individuals, comprised of city staff and volunteers. b. Recommendations for individual loan amounts shall consider the individual human service agency's requested amount compared to the total funds available and the total applications received. The review committee shall consider the agency's total request based upon past missed payments during the State of Illinois' fiscal year 2015 and fiscal year 2016. c. Documentation shall be required to verify submitted invoices to the State of Illinois and subsequent delinquent payments from the State of Illinois. Agencies shall also be asked to confirm whether they have contacted State of Illinois Comptroller's Office for expedited payments due to hardship. d. Applications shall be made available beginning in December 2015. Recommendations as to proposed funding shall be submitted to the City Council. If funds remain available under the emergency loan program after the initial application period, additional applications will be considered as determined by the City Council. The review and approval process shall be as follows: (1)Human service agencies submit applications to review committee;(2)Review committee makes recommendations to the City Manager; -2- and (3) Final recommendations submitted to the City Council for consideration and approval. 5. Loan Agreement and Terms. Human service agencies selected pursuant to this program to receive emergency loans shall be required to enter into individual agency loan agreements in a form as approved by the City's Corporation Counsel. The loan terms shall include, but not be limited to, an initial interest rate for up to twenty-four months of zero percent (0%); repayment in monthly installments shall be required not more than eighteen(18) months after the entry into the loan agreement and repayment in full shall be required not more than twenty-four (24)months after the entry into the loan agreement; repayment shall be accelerated and due in six (6)monthly installments beginning on the first of the month of the month after the State of Illinois begins making payments to the borrowing human service agency in the event the State of Illinois begins processing payments to the human services agency; an agency defaulting under a loan agreement shall pay a default interest rate of nine percent (9%) and all of the City's cost and expenses, including attorneys' fees, incurred in any collection efforts by the City. 6. No Vested Rights Created. The creation or existence of this emergency loan program shall not create any rights, vested or otherwise, for any person or organization to receive loan funds. The City Council of the City of Elgin retains the right to determine whether to approve the loans of any funds including, but not limited to, which human service agencies are to receive funds and the amount of the loans to such human service agencies. Section 2. That Ordinance No. T24-15 be and is hereby repealed and replaced and superseded in its entirety by this ordinance. Notwithstanding the foregoing, the adoption of this ordinance and the repeal of Ordinance No. T24-15 shall not affect the terms or validity of any loan agreements previously entered into by the City of Elgin under the then existing Emergency Loan Program pursuant to Ordinance No. T24-15. Section 3. That this ordinance shall be in full force and effect upon its passage and publication in the manner provided by law. pGLt avid J. Kaptai , a or Presented: April 13,2016 Passed: April 13,2016 Vote: Yeas: 9 Nays: 0 GAT Y pp' Recorded: April 13, 2016 p�'. "-s: "" +C Published: April 15, 2016 •"� Attest: ':_ 4,6te/4e/4ef Kimberly Dewis, City Clerk - 3 -