2013-28 AUTHORIZING THE CITY TO BORROW FUNDS FROM THE WATER POLLUTION CONTROL REVOLVING LOAN FUND

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ORDINANCE NO. 2013-28 AN ORDINANCE AUTHORIZING THE CITY OF DECATUR OF M CON COUNTY, ILLINOIS TO BORROW FUNDS FROM THE WATER POLLUT113N CONTROL REVOLVING LOAN FUND WHEREAS, the CITY of Decatur, Macon County, Illinois, operates its sewerage 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 3est interest of the public health, safety, and welfare to improve the System, including tie following: The rehabilitation of the West and East Trunk Sewers of the Lake Shore Drive ewer, and the MLK and 16th Street Branches of the Lake Shore Drive Sewer, L17-4873 togeth r with any land or rights in land and all electrical, mechanical or other services necessary, u�eful or advisable to the construction and installation ("the Project"), all in accordance v ith 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 Eleven Million, Seven Hundred Thousand Dollars ($11,700,000.00), 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 II. Adm. Code 365, 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 Fur d 79, "Sewer Fund" which contains the Sewer User Fees collected by the City payable semi-an ivally, 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 City of Decatur from the Water Pollution Control 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 ProgrE m in the aggregate principal amount of Eleven Million, Seven Hundred Thousand Dollars $11,700,000.00) to provide funds to pay the costs of the Project; and 1