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ORDINANCE NO. 3190
AN ORDINANCE AUTHORIZING THE CITY OF DIXON, LEE COUNTY, ILLINOIS TO BORROW FUNDS FROM THE PUBLIC WATER SUPPLY LOAN PROGRAM
WHEREAS the City of Dixon, Lee County, Illinois (the “City”) operates its public water supply system (“the System”) in accordance with the provisions of 65 ILCS 5/11-139 and the Local Government Debt Reform Act, 30 ILCS 350/1 (collectively, “the Act”), and
WHEREAS the Mayor and City Council of the City of Dixon (the “Corporate Authorities”) have determined that it is advisable, necessary and in the best interests of public health, safety and welfare to improve the System, including for purposes of the following: construction of approximately 31,140 feet of watermain and appurtenances at an estimated cost of $10,678,000, together with any acquisition of necessary land or rights in land and all surface restoration or other services necessary, useful or advisable to the construction and installation thereof (all of the foregoing, “the Project”), all in accordance with the plans and specifications as prepared by the consulting engineers to the City; and
WHEREAS, the useful life of the Project is anticipated to be at least thirty (30) years; and
WHEREAS, the estimated cost of constructing and installing the Project, including costs for engineering, legal, financial and other related expenses is $10,678,000, and the City has insufficient funds on hand and lawfully available to pay these costs; and
WHEREAS, in accordance with the provisions of the Act, the City is authorized to borrow funds from the Public Water Supply Loan Program, 415 ILCS 5/19.3 (the “PWSLP”), in the aggregate principal amount of $14,000,000.00 in order to provide funds to pay the costs of the Project; and
WHEREAS, the costs are expected to be paid for with a loan to the City (the “Loan”) from the PWSLP through the Illinois Environmental Protection Agency (the “IEPA”), 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, the Loan to the City shall be made pursuant to a loan agreement, including certain terms and conditions, between the City and the IEPA (all of the foregoing, the “Loan Agreement”); and
WHEREAS, the Loan 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 making of the Loan; and
WHEREAS, the principal and interest payment shall be payable semi-annually, and the Loan shall mature in thirty (30) years, which is within the estimated useful life of the Project.
NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF DIXON, LEE 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 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 financing the construction and installation of the Project, it is hereby authorized that funds be borrowed by the City through the PWSLP in an aggregate principal amount not to exceed $14,000,000.00.
SECTION 3. PUBLICATION
This Ordinance, together with a notice in the statutory form, shall be published once within ten (10) days after passage in the Dixon Telegraph, a newspaper published and of general circulation in the City, and if no petition, signed by electors numbering 10% or more of the registered voters in the City (i.e. 811 electors),asking that the question of improving the System and entering into the Loan Agreement therefore be submitted to the electors of the City, is filed with the City Clerk within thirty (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 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 thirty (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 IEPA, prescribing all the details of the Loan Agreement, and providing for the collection, segregation and distribution of the revenues of the System, so long as the maximum amount set forth in the Loan Agreement, as authorized by 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 the PWSLP without the written consent of the IEPA.
SECTION 5. LOAN NOT INDEBTEDNESS OF CITY
Repayment of the loan to the IEPA by the City pursuant to this Ordinance shall be made solely from the revenues derived from the operation of the System, and the Loan does not and shall 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 IEPA for the Loan through the PWSLP, in accordance with the loan requirements set out in 35 Ill. Adm. Code 662.
SECTION 7. ACCEPTANCE OF LOAN AGREEMENT
The Mayor and the City Council hereby authorize acceptance of the offer of the Loan for the Project through the PWSLP, in accordance with the loan requirements set out in 35 Ill. Adm. Code 662. The Loan funds shall be used solely for the purpose of constructing and installing the Project as approved by the IEPA in accordance with the terms and conditions of the Loan Agreement.
SECTION 8. RESERVE ACCOUNTS
As long as the City has outstanding revenue bonds or indebtedness payable from revenues of the System that are senior to the Loan authorized by this Ordinance, the City shall maintain an account, debt service coverage ratios and reserves for the Loan that are equivalent to the accounts, debt service coverage ratios and reserves required for the aforesaid outstanding revenue bonds or indebtedness.
SECTION 9. AUTHORIZATION AND MAYOR
TO EXECUTE LOAN AGREEMENT
The Mayor is hereby authorized and directed to execute the Loan Agreement with the IEPA for the financing of the construction and installation of the Project through the PWSLP.
SECTION 10. SEVERABILITY
If any section, paragraph, clause or provision of this Ordinance shall be 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 CORPORATE AUTHORITY
ON , 2020.
APPROVED ON , 2020.
CITY OF DIXON
LEE COUNTY, ILLINOIS
PUBLISHED IN THE DIXON TELEGRAPH ON , 2020.
CITY OF DIXON
LEE COUNTY, ILLINOIS
RECORD OF VOTE
MAYOR LIANDRO ARELLANO JR.
COUNCILMAN MIKE VENIER
COUNCILMAN DENNIS CONSIDINE
COUNCILWOMAN MARY OROS
COUNCILMAN RYAN MARSHALL
Certified to be a true and accurate copy, passed and adopted on the above date.
(SEAL) KEESHA BLUMHOFF, CITY CLERK