2024-24 Ordinance Authorizing the City of Decatur of Macon County, Illinois to Borrow Funds from the Public Water Supply Loan Program

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ORDINANCE NO. W j� —,%�[ ORDINANCE AUTHORIZING THE CITY OF DECATUR OF MACON COUNTY, ILLINOIS TO BORROW FUNDS FROM THE PUBLIC WATER SUPPLY LOAN PROGRAM WHEREAS, the CITY of Decatur, Macon County, Illinois, operates its water system ("the System") and in accordance with the provisions of the Art. VII, Sec. 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 CITY COUNCIL of the City of Decatur ("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: The South Water Treatment Plant Electrical Improvements, L17-2292 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 City of Decatur, 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 Twenty-One Million Dollars ($21,000,000.00), 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 from City Fund 81, "Water Fund" which contains the Water User Fees collected by the City 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 City of Decatur 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 City of Decatur is authorized to borrow funds from the Water Pollution Control Loan Program in the aggregate principal amount of Twenty-One Million Dollars ($21,000,000.00) to provide funds to pay the costs of the Project; and 1