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Village of Kincaid Ordinance Number 902

PUBLIC WATER 

SUPPLY LOAN 

PROGRAM

ORDINANCE AUTHORIZING LOAN AGREEMENT

NON-HOME RULE 

ENTITY VILLAGE

ORDINANCE

NUMBER 902

AN ORDINANCE authorizing the Village of Kincaid, Christian County, Illinois, to borrow funds from the Public Water Supply Loan Program.

WHEREAS, the Village of Kincaid, Christian County, Illinois (“the Village”) operates its public water supply system (“the System”) and in accordance with the provisions of 65 ILCS 5/1 et. seq and 65 ILCS 5/11-129-1 et. seq and the Local Government Debt Reform Act, 30 ILCS 350/1 (collectively, “the Act”), and

WHEREAS, the President and Board of Trustees of the Village (“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:

The Village of Kincaid will be making Phase 1 water project improvements to their water system which entails replacing 6,500 LF of water mains, and replacing exiting water meters

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 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 $2,500,000.00, 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 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 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 $2,500,000.00 to provide funds to pay the costs of the Project.

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 Kincaid, Christian 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 provision 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 an aggregate principal amount not to exceed $2,500,000.00.

SECTION 3.

 PUBLICATION

This Ordinance, together with a Notice in the statutory form (attached hereto as Exhibit A), shall be published once within ten days after passage in the Taylorville Breeze Courier, a newspaper of general circulation in the Village, and if no petition, signed by electors numbering 10% or more of the registered voters in the Village (1665), 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 Village, is filed with the Village 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 Village Clerk to any individual requesting one.

SECTION 4.

ADDITIONAL 

ORDINANCES

If no petition meeting the requirements of the Act and other applicable laws 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 Water and Sewer Fund, 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 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 5.

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 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 6. 

APPLICATION FOR LOAN

The President 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 7. 

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 8.

OUTSTANDING BONDS

The Village has no outstanding bonds that are payable from revenues of the system.

SECTION 9. AUTHORIZATION OF PRESIDENT TO 

EXECUTE LOAN AGREEMENT

The President 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 President 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 10.

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 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 Authorities on November 14, 2022.

Approved November 14, 2022.

Robert Morris, President

Village of Kincaid

Christian County, Illinois

AYES: 6

NAYS: 0

ABSENT: 0

RECORDED in the Village Records on November 14, 2022.

Marla O’Dell, Clerk

Village of Kincaid

Christian County, Illinois

Exhibit A

NOTICE OF INTENT TO BORROW FUNDS AND RIGHT TO FILE PETITION

 NOTICE IS HEREBY GIVEN that, pursuant to Ordinance Number 902, adopted on November 14, 2022, the Village of Kincaid, Christian County, Illinois (the Village), intends to enter into a Loan Agreement with the Illinois Environmental Protection Agency in an aggregate principal amount not to exceed $2,500,000.00 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 cost of certain improvement to the public water supply system of the Village. A complete copy of the Ordinance accompanies this notice.

 NOTICE IS HEREBY FURTHER GIVEN that if a petition signed by 1665 or more electors of the Village, requesting that the question of improving the public water supply system and entering into the Loan Agreement is submitted to the Village Clerk within 30 days after the publication of this Notice, the question of improving the public water supply system of the Village as provided in the Ordinance and Loan Agreement shall be submitted to the electors of the Village at the next election to be held under general election law on November 8, 2022. A petition form is available from the office of the Village Clerk.

Marla O’Dell, Clerk

Village of Kincaid

Christian County, Illinois

CERTIFICATION

I, Marla O’Dell, do hereby certify that I am the duly appointed, qualified and acting Clerk of the Village of Kincaid. I do further certify that the above and foregoing, identified as Ordinance Number 902, is a true, complete and correct copy of an ordinance otherwise identified as the Ordinance Authorizing Loan Agreement passed by the Board of Trustees of the Village of Kincaid on the 14th day of November, 2022, and approved by the President of the Village of Kincaid on the same said date, the original of which is part of the books and records within my control as Clerk of the Village of Kincaid.

Dated this 14th day of November, 2022.

Marla O’Dell, Clerk

Village of Kincaid

Christian County, Illinois

11/20/2022

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