T24-15 Ordinance No. T24-15
ORDINANCE ESTABLISHING AN 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.
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 in December 2015. Recommendations
as to proposed funding shall be submitted to the City Council in January of 2016. If funds
remain available under the emergency loan program after the initial application period, a
second application process will be re-opened at a date to be 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; 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 six(6)months of zero percent(0%);repayment
in monthly installments shall be required six (6) months after the entry into the loan agreement
and repayment in full shall be required within twelve (12) months of the entry into the loan
agreement; repayment shall be accelerated and due in the event the State of Illinois begins
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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 this ordinance shall be in full force and effect upon its passage and
publication in the manner provided by law.
David J. Ka l ain, ayor
Presented: December 2, 2015
Passed: December 2, 2015
Vote: Yeas: 8 Nays: 1
Recorded: December 2, 2015
Published: December 4, 2015
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Attest:
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Kimberly Dewis, Cit r lerk ,::
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