ORDINANCE # 12 of the 2025 Series

ORDINANCE # 12 of the 2025 Series AN ORDINANCE AUTHORIZING THE VILLAGE OF VIOLA, MERCER COUNTY, ILLINOIS TO BORROW FUNDS FROM THE PUBLIC WATER SUPPLY LOAN PROGRAM WHEREAS, the Village of Viola, Mercer County, Illinois operates its public water supply/waterworks system ("the System") in accordance with the provisions of 65 ILCS 5/11-139-1, et. seq., and the Local Government Debt Reform Act, 30 ILCS 350/1 (collectively, "the Act"), and WHEREAS, the President and Village Board of the Village of Viola ("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's proposed Phases 1 & 2 Water Supply System Improvement Projects includes the replacement of 4-inch main with 6 or 8-inch main throughout the southwest and northwest areas of the village, 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 consultants of the Village of Viola, which Project has a useful life of at least 30 years; and WHEREAS, the estimated cost to purchase and install the Project, including engineering, legal, financial, administrative and other related expenses is $3,257,000, and there are insufficient funds on hand and lawfully available to pay these costs; and WHEREAS, in accordance with the Procedures for Issuing Loans from the Public Water Supply Loan Program Title 35 Ill. Adm. Code Part 662, Section 662.210 Fixed Loan Rate, the Village meets the criteria for the Small Community Interest Rate thereby qualifying for a fixed interest loan rate equal to 75% of the Base 20 Year Rate; and WHEREAS, in accordance with the Procedures for Issuing Loans from the Public Water Supply Loan Program Title 35 Ill. Adm. Code Part 662, the Village meets the Disadvantaged Community Principal Forgiveness and is eligible to have a percentage of the Project costs be forgiven by the State of Illinois pursuant to principal loan forgiveness provisions; 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 of Viola 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 of Viola is authorized to borrow funds from the Public Water Supply Loan Program in the aggregate principal amount of $3,500,000 to provide funds to pay the costs of the Project; WHEREAS, the loan to the Village of Viola shall be made pursuant to a Loan Agreement, including certain terms and conditions, between the Village of Viola and the Illinois Environmental Protection Agency; NOW THEREFORE, be it ordained by the Corporate Authorities of the Village of Viola, Mercer 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 of Viola 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 Act; and that for the purpose of constructing the Project, it is hereby authorized that funds be borrowed by the Village of Viola in an aggregate principal amount (which can include construction period interest financed over the term of the loan) not to exceed $3,500,000. SECTION 3. PUBLICATION This Ordinance, together with a Notice in the statutory form (attached hereto as Exhibit "A"), shall be published once within 10 days after passage in the Aledo Times Record a newspaper published and of general circulation in the Village of Viola, and if no petition signed by electors numbering 10% or more of the registered voters in the Village of Viola (i.e.,70 or more) 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 of Viola, is filed with the Village of Viola 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 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 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 of Viola 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 of Viola 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 THE VILLAGE OF VIOLA Repayment of the loan to the Illinois Environmental Protection Agency by the Village of Viola pursuant to this Ordinance is to be solely from the revenue derived from revenues of the System, and the loan does not constitute an indebtedness of the Village of Viola within the meaning of any constitutional or statutory limitation. SECTION 6. APPLICATION FOR LOAN The Village of Viola 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. RESERVE ACCOUNTS The Village of Viola does not contemplate establishing any reserve accounts because it does not have any revenue bonds outstanding that would be superior or senior to the debt obligation contemplated herein. SECTION 9. AUTHORIZATION OF VILLAGE OF VIOLA PRESIDENT TO EXECUTE LOAN AGREEMENT The Village 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 Village Board of the Village of Viola, Mercer County, Illinois on November 3, 2025. ATTEST: Scott Barber, President _______________ Marilyn Carrico, Village Clerk Ayes: 5 Nays: 0 Absent: 0 PUBLISHED in the Aledo Times Record on November 12, 2025 RECORDED in the Village of Viola records on November 3, 2025 ATTEST: _________________ Marilyn Carrico, Village Clerk Village of Viola, Mercer County, Illinois CERTIFICATION I, Marilyn Carrico, certify that I am the Clerk of the Village of Viola. I do further certify that the above and foregoing, identified as Ordinance # 12 of the 2025 Series, is a true, complete and correct copy of an ordinance otherwise identified as "An Ordinance Authorizing the Village of Viola, Mercer County, Illinois, to Borrow Funds from the Public Water Supply Loan Program" passed by the Village Board of the Village of Viola on November 3, 2025, and approved by the President of the Village of Viola 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 Viola. Dated this 3rd day of November 2025. _________________ Marilyn Carrico, Village Clerk Village of Viola, Mercer County, Illinois Exhibit "A" NOTICE OF INTENT TO BORROW FUNDS AND RIGHT TO FILE PETITION NOTICE IS HEREBY GIVEN that, pursuant to Ordinance # 12 of the 2025 Series adopted on November 3, 2025, the Village of Viola, Mercer County, Illinois, (the "entity") intends to enter into a Loan Agreement with the Illinois Environmental Protection Agency in an aggregate principal amount not to exceed $3,500,000 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 improvements to the public water supply system of the Village of Viola. A complete copy of the Ordinance accompanies this Notice. NOTICE IS HEREBY FURTHER GIVEN that if a petition signed by 70 or more electors of the Village of Viola (being equal to 10% of the registered voters in the Village of Viola), 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 of Viola as provided in the Ordinance and Loan Agreement shall be submitted to the electors of the Village of Viola at the next election to be held under general election law on March 17, 2026. A petition form is available from the Office of the Village Clerk._________________ Marilyn Carrico, Village Clerk Village of Viola, Mercer County, Illinois November 12 2025 LILS0403045