Ordinance 2005-064 I
ORDINANCE NUMBER 70�R�-:;
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 ");
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 5/1 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
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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.
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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.
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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 Ill. 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.
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.
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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
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this Ordinance, is to the extent of such conflict, are hereby repealed.
THE REST OF THIS PAGE IS LEFT INTENTIONALLY BLANK.
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PASSED by the Corporate Authorities
on c 20 CC'S
Approved :yL 20 b�
r ; e
Mayor of the United City of Yorkille
Kendall. County, Illinois
AYES:
NAYS: — �-
ABSENT: —1
PUBLISHED in the Kendall County Record on c' R, 20 CSC
RECORDED in the United City of Yorkville Records onUL)L* oho , 2005
ATTEST:
Uni City off' Yorkville Clerk
United City of Yorkville, Kendall County, Illinois
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NOTICE OF INTENT TO BORROW FUNDS
AND RIGHT TO FILE PETITION
NOTICE IS HEREBY GIVEN that, pursuant to Ordinance Number
adopted on ,7uQA ate, 20 CS , 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 electors of the United City of
Yorkville at the General Election to be held on March 21, 2005. A petition form is
available from the office of the City Clerk.
' y Cleri
United City of Yorkville of
Kendall, County, Illinois