HomeMy WebLinkAbout112-O-23 Authorizing the City to Borrow Funds from the Illinois Environmental Protection Agency Public Water Supply Loan Program11/13/23
112-O-23
AN ORDINANCE
Authorizing the City to Borrow Funds from
the Illinois Environmental Protection Agency
Public Water Supply Loan Program
WHEREAS, the City of Evanston, in the County of Cook, Illinois (the “City”)
operates its public water supply system (“the System”) and in accordance with the
provisions of the provisions of Section 6(a) of Article VII of the 1970 Constitution of the
State of Illinois 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 (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:
Reliability improvements to the Evanston Water Plant electrical system, including
electrical generators, medium voltage switchgear, low voltage switchgear,
miscellaneous electrical improvements, building expansion, and related civil,
structural, architectural, mechanical, and instrumentation and control work.
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, which Project has a useful life of 35 years; and
WHEREAS, the estimated cost of constructing and installing the Project,
including engineering, legal, financial, and other related expenses is Eighteen Million Nine
Hundred Thousand dollars ($18,900,000) and there are insufficient funds on hand and
lawfully available to pay such costs; and
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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 twenty (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
from the Public Water Supply Loan Program through the Illinois Environmental Protection
Agency, the loan to be repaid from revenues from 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 is
authorized to borrow funds from the Public Waters Supply Loan Program in the aggregate
principal amount of Eighteen Million Nine Hundred Thousand dollars ($18,900,000) to
provide funds to pay the costs of the Project and;
WHEREAS, the loan to the City shall be made pursuant to a Loan
Agreement, including certain terms and conditions between the City and the Illinois
Environmental Protection Agency;
NOW THEREFORE, BE IT ORDAINED BY THE CORPORATE
AUTHORITIES OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS AS
FOLLOWS:
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SECTION 1: 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: It is necessary and in the best interests of the City 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 provisions 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 City in the aggregate principal amount (which can include construction period
interest financed over the term of the loan) not to exceed Eighteen Million Nine Hundred
Thousand dollars ($18,900,000).
SECTION 3: 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 laws.
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 City may not adopt additional
ordinances or amendments which provide for any substantive or material change in the
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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 City 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 4: Repayment of the loan to the Illinois Environmental Protection
Agency by the City 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
City within the meaning of any constitutional or statutory limitation.
SECTION 5: The City Manager is hereby authorized to make an 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 6: 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 7: The City has outstanding bonds, payable from revenues of the
system, that are senior to the loan authorized by this Ordinance, and the City establishes
an account, coverage, and reserves equivalent to the account(s), coverage(s) and
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reserve(s) as the senior lien holders in accordance with 35 Ill. Adm. Code
662.350(a)(9)(C)(PWS).
SECTION 8: The City Manager 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 City Manager
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 9: 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 10: All ordinances, resolutions, orders, or parts thereof,
which conflict with the provisions of this Ordinance, to the extent of such conflict, are
hereby repealed.
Introduced: _________________, 2023
Adopted: ___________________, 2023
Approved:
________________________, 2023
_______________________________
Daniel Biss, Mayor
Attest:
_______________________________
Stephanie Mendoza, City Clerk
Approved as to form:
_______________________________
Alexandra B. Ruggie, Interim Corporation Counsel
November 13
November 13
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November 21
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Water Rate Increase 11.0% 5.4%9.5%5.0%17.5%23.3%13.5%13.5%13.5%13.5%
Operating Revenues
User charge (system) revenue 8,529,573 8,771,787 9,638,911 9,722,616 11,424,073 14,088,167 15,990,070 18,148,729 20,598,808 23,379,647
Wholesale Revenue (Skokie, Northwest Water Commission, Morton
Grove/Niles, Lincolnwood)13,471,496 11,415,711 12,969,677 13,268,951 13,500,551 13,735,326 16,550,497 16,982,210 18,029,601 19,345,491
Misc. Fees and Revenue 850,418 1,224,892 889,328 3,738,930 5,962,650 1,828,053 844,120 1,210,883 1,228,370 1,257,115
Interest Income 8,299 2,461 2,032 2,943 2,920 2,951 2,960 2,956
Total Operating Revenues 22,851,487 21,412,390 23,506,215 26,732,958 30,889,307 29,654,489 33,387,607 36,344,772 39,859,739 43,985,210
Operating Expenses
Salaries & Wages 4,115,656 4,306,380 3,845,689 5,225,600 5,448,182 5,533,136 5,671,465 5,813,251 5,958,583 6,107,547
Benefits 1,351,957 1,407,224 1,154,531 1,326,132 1,575,879 1,647,516 1,722,571 1,801,213 1,883,617 1,969,965
Engineering fees (Studies)333,799 290,102 340,127 547,000 1,380,800 651,324 410,394 417,681 425,173 432,876
Utilities 1,097,323 1,109,871 909,510 1,082,700 1,055,633 1,087,302 1,119,921 1,153,519 1,188,124 1,223,768
Repairs and maintenance 258,586 287,409 206,410 471,900 539,600 555,788 572,462 589,635 607,325 625,544
Supplies 798,734 1,021,690 1,328,814 2,181,610 2,095,790 2,029,019 2,064,535 2,100,952 2,138,293 2,176,586
Miscellaneous 823,276 830,246 688,847 1,048,720 1,135,220 1,165,347 1,196,377 1,228,338 1,261,258 1,295,166
Total Operating Expenses 8,779,330 9,252,922 8,473,928 11,883,662 13,231,104 12,669,431 12,757,726 13,104,590 13,462,373 13,831,453
TOTAL OPERATING INCOME 14,072,156 12,159,468 15,032,287 14,849,295 17,658,203 16,985,058 20,629,881 23,240,182 26,397,366 30,153,757
Non Operating Revenues (Expenses)
Debt Service (Princial and Interest) - Existing prior to this loan, GO
Bonds and IEPA SRF Debt Service (2,290,933) (3,442,912) (3,818,594) (4,948,747) (5,118,567) (5,116,079) (5,118,664) (5,119,947) (5,118,846) (5,113,335)
Transfers (Other Fund, General Fund, Insurance Fund)(5,313,514)(5,589,212)(5,600,005)(5,732,501) (5,868,861) (6,009,200) (6,153,635) (5,302,286) (5,461,354) (5,625,195)
Minor Capital Outlay (2,129)(89,126)(64,917)(335,000) (1,141,500) (265,180) (291,474) (391,619) (301,917) (427,375)
New GO Bonds 5,013,000 5,495,000 5,618,256 - 18,181,000 13,551,000 19,404,000 21,452,120 22,515,362 17,369,730
WIFIA Proceeds - 36"/42" Intake Replacement 20,386,000
IEPA SRF - Loan Proceeds
36"/42" Intake Replacement 777,149 15,210,000 19,292,790
Electrical Reliability Project 3,300,000 5,500,000 5,500,000 3,300,000
East Filter Plant Reliability 5,500,000 5,500,000
West Filter Plant Modifications 6,500,000 5,500,000
Annual LSLR - 4,105,000 5,636,000 5,648,000 5,660,240 5,672,725 3,889,999
Annual Water Main Replacement - - - - - - -
Small Diameter Water Main Lining (L17-5393)1,300,000
Large Diameter Water Main Lining 2,000,000
Total Non-Operating Income (Loss)(2,593,576) (3,626,250) (3,088,111) 4,193,752 53,135,862 20,096,540 24,488,227 19,598,508 25,805,970 15,593,825
Net Change in Position Before Capital Items 11,478,581 8,533,219 11,944,176 19,043,047 70,794,065 37,081,598 45,118,109 42,838,691 52,203,336 45,747,582
Capital Items
Capital Projects Funded with Cash (1,496,000)(1,615,000)(5,040,631)(9,302,457) (1,775,000) (2,015,000) (2,914,600) (3,671,400) (3,742,576) (4,834,559)
Capital Projects Funded with GO Bonds (5,013,000)(5,495,000)(5,618,256)- (18,181,000) (13,551,000) (19,404,000) (21,452,120) (22,515,362) (17,369,730)
Capital Projects Funded with WIFIA (Intake)- (20,386,000)
Capital Projects Funded with SRF Loans
36"/42" Intake Replacement (777,149)(15,210,000) (19,292,790)
Electrical Reliability Project (3,300,000) (5,500,000) (5,500,000) (3,300,000)
East Filter Plant Reliability (5,500,000) (5,500,000)
West Filter Plant Modifications (6,500,000) (5,500,000)
LSLR Pilot (Construction)(4,105,000) (5,636,000) (5,648,000) (5,660,240) (5,672,725) (3,889,999)
Annual Water Main Replacement - - - - - -
Small Diameter Water Main Lining (L17-5393)(1,300,000)
Large Diameter Water Main Lining (2,000,000)
New Debt Service - GO Bonds - - (1,449,605) (2,530,051) (4,077,167) (5,787,585) (7,582,776)
New Debt Service - WIFIA (Intake)(952,193) (952,193) (952,193) (952,193)
New Debt Service - IEPA SRF
36"/42" Intake Replacement (2,006,036) (2,006,036) (2,006,036) (2,006,036) (2,006,036)
Electrical Reliability Project (1,122,592) (1,122,592)
East Filter Plant Reliability (645,508) (645,508) (645,508)
West Filter Plant Modifications
Annual LSLR (234,997) (565,732) (897,171) (1,245,929) (1,595,456)
Annual Water Main Replacement - - - -
Small Diameter Water Main Lining (L17-5393)(76,287) (76,287) (76,287) (76,287)
Large Diameter Water Main Lining (123,231)
Total Capital Items (6,509,000) (7,110,000) (11,436,036) (24,512,457) (67,039,790) (37,192,638) (45,096,900) (42,738,124) (52,266,794) (45,698,368)
NET CHANGE IN POSITION 4,969,581 1,423,219 508,140 (5,469,410) 3,754,275 (111,040) 21,209 100,567 (63,458) 49,214
Beginning Water Fund Reserve 756,594$ 5,726,175$ 7,149,393$ 7,657,533$ 2,188,123$ 5,942,398$ 5,831,358$ 5,852,567$ 5,953,134$ 5,889,677$
Ending Water Fund Reserve 5,726,175$ 7,149,393$ 7,657,533$ 2,188,123$ 5,942,398$ 5,831,358$ 5,852,567$ 5,953,134$ 5,889,677$ 5,938,890$
Target Water Fund Reserve 3,500,000$ 3,500,000$ 3,500,000$ 3,500,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$ 5,800,000$
City of Evanston
Water Plant Electrical System Reliability Project
L17-6577
Six-Year Projection of Revenues, Operations, Maintenance, and Debt Service
Actual - Previous 3 Years Estimated - Next 6 Years, Starting with Current Fiscal Year
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