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2026-14 Ordinance Authorizing the City of Decatur, Macon County, Illinois, to Borrow Funds from the Public Water Supply Loan Program through the Illinois Environmental Protection Agency for the Galvanized Water Service Line Replacement
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2026-14 Ordinance Authorizing the City of Decatur, Macon County, Illinois, to Borrow Funds from the Public Water Supply Loan Program through the Illinois Environmental Protection Agency for the Galvanized Water Service Line Replacement
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3/18/2026 5:02:17 PM
Creation date
3/18/2026 5:02:15 PM
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Resolution/Ordinance
Res Ord Num
2026-14
Res Ord Title
2026-14 Ordinance Authorizing the City of Decatur, Macon County, Illinois, to Borrow Funds from the Public Water Supply Loan Program through the Illinois Environmental Protection Agency for the Galvanized Water Service Line Replacement
Department
Finance
Approved Date
3/16/2026
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Million, Five Hundred Thousand Dollars (S6.500.000.00) to provide funds to pay the costs of the <br /> Project; and <br /> WHEREAS. the Loan shall be made pursuant to a Loan Agreement (the "Loan <br /> Agreement"), including certain terms and conditions between the City and the Illinois <br /> Environmental Protection Agency; and <br /> WHEREAS, the Loan shall bear an interest rate as defined by 35 III. Adm. Code 662. <br /> which does not exceed the maximum rate authorized by the Bond Authorization Act, as amended <br /> by 35 Ill. Adm. Code 663, at the time of the issuance of the loan; and <br /> WHEREAS. the principal and interest payments on the Loan shall be from City Fund 80. <br /> "Water Fund" which contains the Water User Fees collected by the City payable semi-annually. <br /> and the Loan shall mature in 30 years, which is within the period of useful life of the Project; and <br /> WHEREAS. the City has heretofore issued and has outstanding certain obligations <br /> payable from revenues of the System. namely, the City's Promissory Note, Series 2020. and <br /> certain Illinois Environmental Protection Agency Water Loans (collectively, "the Parity Bonds"); <br /> and <br /> WHEREAS, the Note was authorized by an ordinance adopted by the Corporate <br /> Authorities on May 18. 2020 ("the Note Ordinance"); and <br /> WHEREAS, the proceedings of the City which authorized the Parity Bonds, including the <br /> Note Ordinance. permit the City to issue additional debt payable from the revenues of the System <br /> on a parity with the Parity Bonds, so long as the City determines that the Net Revenues(as defined <br /> in the Note Ordinance) for the last completed fiscal year prior to the issuance of such additional <br /> debt are equal to at least 125°%o of Maximum Annual Debt Service (as defined in the Note <br /> Ordinance); and <br /> WHEREAS. the City hereby determines that such coverage test is satisfied with respect <br /> to the Loan: <br /> NOW THEREFORE, Be It Ordained by the Council of the City of Decatur, Macon <br /> County. Illinois. in the exercise of its home rule powers, as follows: <br /> SECTION 1. INCORPORATION OF PREAMBLES <br /> The Corporate Authorities hereby find that the recitals contained in the preambles are true <br /> and correct. and incorporate them into this Ordinance by this reference. <br /> SECTION 2. DETERMINATION TO BORROW FUNDS <br /> It is advisable. necessary and in the best interests of the City that the City construct the <br /> Project for the public health. safety, and welfare, in accordance with the plans and specifications, <br />
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