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An Ordinance Authorizing a Loan Agreement for the Public Water Supply Loan Program for the Five-Year Water Main Replacement Program.
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AN ORDINANCE authorizing the VILLAGE of Romeoville, Will County, Illinois, to borrow funds from the Public Water Supply Loan Program
WHEREAS, the VILLAGE of ROMEOVILLE, Will County, Illinois, operates its public water supply system ("the System") and in accordance with the provisions included in Article VII, Section 6 of the Illinois Constitution and the Local Government Debt Reform Act, 30 ILCS 350/1 et seq. (collectively "the Act"); and
WHEREAS, the MAYOR and BOARD OF TRUSTEES of the VILLAGE ("the Corporate Authorities") have determined that it is advisable, necessary, and in the best interest of the public health, safety, and welfare to improve the System, including the following:
ROMEOVILLE FIVE YEAR WATER MAIN REPLACEMENT PROGRAM
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 the consulting engineers of the VILLAGE, which Project has a useful life of 50 years; and
WHEREAS, the estimated cost of construction and installation of the Project,
including engineering, legal, financial and other related expenses is $40,000,000, 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 issuance of the loan; and
WHEREAS, the principal and interest payment shall be payable semi-annually, and the loan shall mature in 30 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 VILLAGE 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 VILLAGE is authorized to borrow funds from the Public Water Supply Loan Program in the aggregate principal amount of $40,000,000 to provide funds to pay the costs of the Project; and
WHEREAS, the loan to the VILLAGE shall be made pursuant to a Loan Agreement, including certain terms and conditions between the VILLAGE and the Illinois Environmental Protection Agency;
NOW THEREFORE, be it ordained by the Corporate Authorities of the VILLAGE of Romeoville, Will 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 VILLAGE to construct the Project for the public health, safety, and welfare, in accordance with the plans and specifications, as described; that the System continues 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 VILLAGE in the aggregate principal amount (which can include construction period interest financed over the term of the loan) not to exceed $40,000,000.
SECTION 3. ADDITIONAL ORDINANCES
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 laws. 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 VILLAGE 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 VILLAGE 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 4. LOAN NOT INDEBTEDNESS OF VILLAGE
Repayment of the loan to the Illinois Environmental Protection Agency by the VILLAGE pursuant to this Ordinance is to be solely from the revenue derived from the revenues of the System, and the loan does not constitute an indebtedness of the VILLAGE within the meaning of any constitutional or statutory limitation.
SECTION 5. APPLICATION FOR LOAN
The MAYOR 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.
SECTION 6. ACCEPTANCE OF LOAN AGREEMENT
The Corporate Authorities hereby authorize acceptance of the offer of a loan through the Public Water Supply Loan Program, including all terms and conditions of the Loan Agreement as well as all special conditions contained therein and made a part thereof by reference. The Corporate Authorities further agree that the loan funds awarded 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. OUTSTANDING BONDS
The VILLAGE has outstanding bonds, payable from revenues of the system, that are senior to the loan authorized by this Ordinance, and the VILLAGE establishes an account, coverage, and reserves equivalent to the account(s), coverage(s) and reserve(s) as the senior lien holders in accordance with 35 Ill. Adm. Code 662.350(a)(9)(C)(PWS).
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 a 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, to the extent of such conflict, are hereby repealed.