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Ordinance 2005-015 ORDINANCE NUMBER 1 AN ORDINANCE authorizing the UNITED CITY of YORKVILLE, KENDALL COUNTY, ILLINOIS to borrow funds from the Public Water Supply Loan Program WHEREAS the United City of Yorkville, Kendall County, Illinois operates its public water supply system ( "the System") and in accordance with the provisions of 65 ILCS 5/11 -129 and the Local Government Debt Reform Act, 30 ILCS 350/1 et. Seq. (collectively, "the Act "); i and WHEREAS the Mayor and City Council of the United City of Yorkville (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 the following: Radium Compliance and Water Works System Improvements including Wells No. 3 and 4 Water Treatment Plant and Raw and Finished Water Mains For The United City of Yorkville 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 consulting engineers to the United City of Yorkville; and WHEREAS the useful life of the Well House and Water Transmission main is 50 years and the useful life of the treatment equipment is 20 years; and WHEREAS the estimated cost of construction and installing the Project, including engineering, legal, financial and other related expenses is $5,000,000, and there are insufficient funds on hand and lawfully available to pay these costs; 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 the making of the loan; WHEREAS the principal and interest payment shall be payable semi - annually, and the loan shall mature in 20 years, which is within the period of useful life of the project; and WHEREAS the costs are expected to be paid for with a loan to the United City of Yorkville 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 United City of Yorkville is authorized to borrow funds from the Public Water Supply Loan Program [415 ILCS 5/19.3] in the aggregate principal amount of $ 5,000,000 to provide funds to pay the costs of the Project; and WHEREAS the loan to the United City of Yorkville shall be made pursuant to a Loan Agreement, including certain terms and conditions, between the United City of Yorkville and the Illinois Environmental Protection Agency; NOW, THEREFORE be it ordained by the Mayor and City Council of the United City of Yorkville, Kendall 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 United City of Yorkville 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 511 et. Seq.; and that for the purpose of constructing the Project, it is hereby authorized that funds be borrowed by the United City of Yorkville in an aggregate principal amount (which includes construction period interest financed over the term of the loan) not to exceed $5,000,000. SECTION 3. PUBLICATION This Ordinance, together with a notice in the statutory form, shall be published once within ten days after passage in the Kendall County Record, a newspaper published and of general circulation in the United City of Yorkville and if no petition, signed by electors numbering 10% or more of the registered voters in the United City of Yorkville (i.e., 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 United City of Yorkville, is filed with the United City of Yorkville 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 United City of Yorkville 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 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 revenues of the System, 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 United City of Yorkville 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 United City of Yorkville 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 UNITED CITY OF YORKVILLE Repayment of the loan to the Illinois Environmental Protection Agency by the United City of Yorkville pursuant to this Ordinance is to be solely from the revenues of the System and the loan does not constitute an indebtedness of the United City of Yorkville within the meaning of any constitutional or statutory limitation. SECTION 6. APPLICATION FOR LOAN The Mayor of the United City of Yorkville 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 I11. 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. I SECTION 7. RESERVE ACCOUNTS If the City does not use a revenue bond ordinance to support this loan, then, the City shall establish coverage and a reserve account identical to the coverage and reserves in the outstanding senior revenue bond issue(s), if any. SECTION 8. AUTHORIZATION OF MAYOR TO EXECUTE LOAN AGREEMENT The Mayor is hereby authorized and directed to execute the Loan Agreement with the Illinois Environmental Protection Agency. The Corporate Authorities may authorize by resolution another person other than the Mayor for the sole purpose of authorizing or executing any documents associated with payment requests or reimbursements from the Illinois Environmental Protection Agency in connection with this loan. 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 10. REPEALER All ordinances, resolutions, orders, or parts thereof, which conflict with the provisions of this Ordinance, is to the extent of such conflict, are hereby repealed. t - THE REST OF THIS PAGE IS LEFT INTENTIONALLY BLANK. PASSED by the Corporate Authorities on _� • as , 20 Cam Approved a- , 20 6!�;' a fo orkville Kendall, County, Illinois AYES: NAYS: —" ABSENT: PUBLISHED in the Kendall County Record on 200 RECORDED in the United City of Yorkville Records on �• ATTEST: ��Url City oNYorkville Clerk [ENTITY]United City of Yorkville, Kendall County, Illinois t NOTICE OF INTENT TO BORROW FUNDS AND RIGHT TO FILE PETITION NOTICE IS HEREBY GIVEN that, pursuant to Ordinance Number 0 -00"S> - - ( S adopted onP-CA , 20 ©,! , the United City of Yorkville, intends to enter into a Loan Agreement with the Illinois Environmental Protection Agency in an aggregate principal amount not to exceed $5,000,000 and bearing annual interest at an amount not to exceed the maximum rate authorized by law at the time of execution of the Loan Agreement, for the purpose of paying the costs of certain improvements to the public water supply system of the United City of Yorkville A complete copy of the Ordinance accompanies this notice. NOTICE IS HEREBY FURTHER GIVEN that if a petition signed by 611 or more electors of the United City of Yorkville (being equal to 10% of the registered voters in the United City of Yorkville, requesting that the question of improving the public water supply system and entering into the Loan Agreement therefore is submitted to the City Clerk within 30 days after the publication of this Notice, the question of improving the public water supply system of the United City of Yorkville as provided in the Ordinance and Loan Agreement shall be submitted to the elector of the United City of Yorkville at the General Election to be held on ( r 20 b( A petition form is available from the office of the City Clerk. ity Cl rk United City of Yorkville of Kendall, County, Illinois t