City of Oregon authorized to borrow $9.5 million for wastewater system improvements.

ORDINANCE NUMBER 2026-004 AN ORDINANCE AUTHORIZING THE CITY OF OREGON, OGLE COUNTY, ILLINOIS TO BORROW FUNDS FROM THE WATER POLLUTION CONTROL LOAN PROGRAM. WHEREAS, the City of Oregon, Ogle County, Illinois operates its Water Pollution Control system (?the System?) and 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 MAYOR AND CITY COUNCIL MEMBERS of the City (“the Corporate Authorities”) have determined that it is advisable, necessary and in the best interests of public health, safety, and welfare to improve the Wastewater System, including the following: Wastewater Treatment Plant Improvements,  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 withthe plans and specifications prepared by consulting engineers of the City; which Project has a useful life of 30 years; and WHEREAS, the estimated cost of construction and installation of the Project, including engineering, legal, financial and other related expenses is $9,500,000, 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 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 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 from the Water Pollution Control Loan Program through the Illinois Environmental Protection Agency, the loan to be repaid from operational and debt service revenues of the Wastewater 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 Water Pollution Control Loan Program in the aggregate principal amount of $9,500,000 to provide funds to pay the costs of the Project;  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 Oregon, Ogle 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 City to construct the Project for the public health, safety and welfare, in accordance with the plans and specifications, as described; that the Wastewater 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 City in an aggregate principal amount (which can include construction period interest financed over the term of the loan) not to exceed $9,500,000. SECTION 3. PUBLICATION This Ordinance, together with a Notice in the statutory form (attached hereto as Exhibit A), shall be published once within ten days after passage in the Dixon Telegraph, a newspaper published and of general circulation in the City, and if no petition, signed by electors numbering 10% or more of the registered voters in the City (i.e., 243 voters) 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 City, is filed with the City 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 City 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 operating and debt service revenues of the Wastewater 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 City 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 City to pay the principal and interest due to the Water Pollution Control Loan Program without the written consent of the Illinois Environmental Protection Agency.  SECTION 5. LOAN NOT INDEBTEDNESS OF CITY 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 operating and debt service revenues of the Wastewater System, and the loan does not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation. SECTION 6. APPLICATION FOR LOAN  The Mayor of Oregon is hereby authorized to make application to the Illinois Environmental Protection Agency for a loan through the Water Pollution Control Loan Program, in accordance with the loan requirements set out in 35 Ill. Adm. Code 365. SECTION 7. ACCEPTANCE OF LOAN AGREEMENT  The Corporate Authorities hereby authorize acceptance of the offer of a loan through the Water Pollution Control 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. OUTSTANDING BONDS The City of Oregon has no outstanding bonds that are payable from the revenues of the system. SECTION 9. AUTHORIZATION OF PRESIDENT TO EXECUTE LOAN AGREEMENT The Mayor of Oregon 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 MAYOR 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 Corporate Authorities on February 23rd, 2026. APPROVED February 23rd, 2026. Ken Williams, Mayor, City of Oregon, Ogle County, Illinois  AYES: 5 NAYS: 0 ABSENT: 0 PUBLISHED in the Dixon Telegraph on February 27th, 2026. RECORDED in the City Records on February 24th, 2026.  ATTEST: Cheryl Hilton, City Clerk, City of Oregon, Ogle County, Illinois  Exhibit A NOTICE OF INTENT TO BORROW FUNDS AND RIGHT TO FILE PETITION  NOTICE IS HEREBY GIVEN that, pursuant to Ordinance Number 2026-004, adopted on February 23rd, 2026, the City of Oregon, Ogle County, Illinois (the “City”), intends to enter into a Loan Agreement with the Illinois Environmental Protection Agency in an aggregate principal amount not to exceed $9,500,000 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 improvement to the Wastewater Collection system of the City. A complete copy of the Ordinance accompanies this notice.  NOTICE IS HEREBY FURTHER GIVEN that if a petition signed by 243 or more electors of the City (being equal to 10% of the registered voters in the City), requesting that the question of improving the Water Pollution Control system and entering into the Loan Agreement is submitted to the City Clerk within 30 days after the publication of this Notice, the question of improving the Water Pollution Control system of the City as provided in the Ordinance and Loan Agreement shall be submitted to the electors of the City 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 City Clerk. Cheryl Hilton, City Clerk, City of Oregon, Ogle County, Illinois  CERTIFICATION  I, Cheryl Hilton, do hereby certify that I am the duly elected, qualified and acting Clerk of the City of Oregon. I do further certify that the above and foregoing, identified as Ordinance Number 2026-004 is a true, complete and correct copy of an ordinance otherwise identified as “An Ordinance Authorizing the City of Oregon, Ogle County, Illinois, to Borrow Funds from the Water Pollution Control Program”, passed by the City Council Members of the City of Oregon on the 23rd day of February, 2026, and approved by the Mayor of the City of Oregon on the same said date, the original of which is part of the books and records within my control as Clerk of the City of Oregon.  Dated this 24th day of February, 2026. February 27, 2026