WPCLPLoanApplicationInstructions Page 1

IllinoisWaterPollutionControlLoanProgram(WPCLP)LoanApplicationInstructions

December 2019

ContentsLoanApplicationInstructions.....................................................................................................................1IEPAWPCLPFinancialCapabilityReviewCriteria......................................................................................9IEPAWPCLPLegalRequirements..............................................................................................................11

LoanApplicationInstructions

BelowareinstructionsandclarificationforallsectionsoftheLoanApplication,aswellasthefinancialcapabilityevaluationcriteria.AdditionalguidancedocumentsandformsrelatingtoWPCLPrequirementscanbefoundatthefollowingwebsite:www2.illinois.gov/epa/topics/grants-loans/state-revolving-fund/guidance/Pages

TheLoanApplicationisafillablePDFformthatmaybecompletedonlineinAdobeAcrobatReader.Makesuretosaveacopyontoyourcomputer.MailthreecopiesoftheLoanApplicationandtwocopiesofallapplicableattachments(page9)totheattentionofyourProjectManagerat:

IllinoisEnvironmentalProtectionAgencyBureauofWater,InfrastructureFinancialAssistanceSection1021NorthGrandAvenueEastPOBox19276Springfield,IL62794-9276

ApplicantName:Entertheentitythatwillbethelegalsignatorytothefinancingagreement.

ApplicantAddress,City,CountyandZipCode:Entertheapplicant’sphysicalstreetaddress.

MailingAddress(ifdifferent):Entertheapplicant’smailingaddress,ifitisdifferentthantheaddressabove.

ApplicantType:Indicateiftheapplicantisapublic,private(forprofit)ornonprofitowner.If“other”,entertheownershiptypeintheProjectDescription.

FacilityName:Enterthenameofthefacility.

NPDESPermitNumber:EntertheNationalPollutantDischargeEliminationSystemnumber,iftheprojecthasone.

APPLICANTINFORMATION

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DataUniversalNumbersSystem(DUNS)Number:AllapplicantsmustreceiveaDUNSnumber.Thisisaunique9-digitidentifierrequiredforanyentityreceivingWPCLPfunds.Instructionscanbefoundatwww2.illinois.gov/epa/Documents/iepa/grants-loans/water-financial-assistance/state-revolving-fund/duns_20number-requirement-obtaining.pdf

U.S.CongressionalDistrict(s):EntertheCongressionaldistrict(s)numberwheretheapplicantislocated.Congressionaldistrictscanbefoundathttp://house.gov/representatives/find/.

IllinoisRepresentativeDistrict:EntertheIllinoisRepresentativedistrictnumberwheretheapplicantislocated.Itcanbesearchedatwww.elections.il.gov/DistrictLocator/DistrictOfficialSearchByAddress.aspx

IllinoisSenateDistrict:EntertheIllinoisSenatedistrictnumberwheretheapplicantislocated.Itcanbesearchedatwww.elections.il.gov/DistrictLocator/DistrictOfficialSearchByAddress.aspx

ProjectTitle:Enterthetitleoftheproject(e.g.,NorthWWTPUpgradePhase1).

ProjectAddress,City,CountyandZipCode:Entertheproject’sphysicaladdress.Iftheprojectspansalargergeographicalarea(e.g.,pipereplacement),enterastreetaddresswithrepresentsthegeographicalcenteroftheproject.

CountyorCountiesServedbyProject:Enterthecountyorcountiesthatwillbenefitfromtheproject.

U.S.CongressionalDistrict(s):EntertheCongressionaldistrict(s)wheretheprojectislocated.IftheprojectwillspanmultipleCongressionaldistricts(e.g.,apipelineproject),listallaffecteddistricts.Congressionaldistrictscanbefoundathttp://house.gov/representatives/find/.

IllinoisRepresentativeDistrict(s):EntertheIllinoisRepresentativedistrict(s)wheretheprojectislocated.Iftheprojectwillspanmultipledistricts(e.g.,apipelineproject),listallaffecteddistricts.IllinoisRepresentativedistrictscanbefoundatwww.elections.il.gov/DistrictLocator/DistrictOfficialSearchByAddress.aspx

IllinoisSenateDistrict(s):EntertheIllinoisSenatedistrict(s)wheretheprojectislocated.Iftheprojectwillspanmultipledistricts(e.g.,apipelineproject),listallaffecteddistricts.IllinoisRepresentativedistrictscanbefoundatwww.elections.il.gov/DistrictLocator/DistrictOfficialSearchByAddress.aspx

Isthisamulti-phasedproject?Iftheprojecthasmultiplephases,atleastoneofwhichhasalreadybeenfundedbytheWPCLP,entertheprojectnumberofpreviousphasesstartingwithL17.

PROJECTINFORMATION

PLEASENOTE:AretheStateandU.S.Representativesthesamefortheapplicantandtheproject?Ifyes,savesometimeandskipthenextthreequestionsbycheckingtheboxcalled“SameasApplicant”!

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LoanApplicant’sAuthorizedRepresentative:Identifythepersonwhohastheauthoritytorepresenttheborrowerandsigndocumentspertainingtotheloanapplication.ThispersonshouldbeabletorespondtoIEPA’squestionsregardingtheapplicationmaterials.Theloanapplicationmustbesignedbytheloanapplicant’srepresentative.• Ifthesystemisownedbyapublicagencyorhasagoverningboard,theapplicationmustincludea

copyofaresolutionadoptedbythegoverningbodydesignatingitsauthorizedrepresentativeandauthorizingsubmissionoftheloanapplication;thisresolutioncanbefoundintheLoanApplicationAppendix.Itisadvisabletodesignatethetitleofthepersonauthorizedtosignratherthanaspecificperson.

• Iftheapplicantdoesnothaveagoverningboard,itmustprovidedocumentationsupportingtheauthorizationoftheauthorizedrepresentative.

ProjectEngineer:Identifytheprojectengineer’sname,firm,andotherrequestedcontactinformation.

Attorney:Identifytheattorneythatwillbethecontactpersonregardinglegalmatters.

FinanceDirector:Identifythecontactpersonregardingfinancingmatters,includingthecollectionoffinancialdatarequestedinthisapplication.

Other:Ifthereisanotherkeycontact,pleaseentertheinformation,includingtheirrole.

1. Scheduleforbiddingandconstruction:Providetheestimatedoractualdatesformajormilestonesrelatedtobiddingandconstruction.IftheIEPACertificationofPlansandSpecificationshasnotyetbeensubmitted,providetheestimateddateofsubmittal.

2. Pre-bidestimateofitemizedprojectcosts:Providethedollaramountformajorprojectcosts:projectplanning,legal&financialcosts,design,constructionengineering,construction,andothercosts,includingcontingencies.Constructioncontingencyatthetimeofprovidingapre-bidestimateshouldbeestablishedatamaximumof10percentofestimatedconstructioncosts.ConstructioncostswillbefinalizedafterbiddingandtheAgencywillestablishintheloanagreementacontingencyamountnottoexceed3percentofconstructioncosts.

ESTIMATEDPROJECTCOSTSANDREQUESTEDFINANCING

CONTACTINFORMATION

PROJECTSCHEDULE

PLEASENOTE:TheLoanApplicant’sAuthorizedRepresentativemaybedifferentthanthepersonlegallyauthorizedtosigntheLoanAgreementanddebtordinance.IEPAwillworkwiththesuccessfulapplicantatalaterdatetoidentifythisperson.

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3. RequestedWPCLPfunding:EntertheamountofWPCLPloanfundingrequested.Fundsrequestedcannotexceedtheprojectcosts.Fundingamountwillbefinalizedpriortosigningtheloan.

4. ListanyotherproposedsourcesoffundinginadditiontotheWPCLPrequest:IftherewillbeothersourcesoffundinginadditiontotheWPCLP,enterthosesourcesoffundingandtheamounts.Indicatewhetherthosefundshavebeenappliedfor,approvedbythefundingagency,orreceived.ThetotaloftherequestedWPCLPfundingandotherproposedsourcesoffunding(ifany)mustbeequaltotheestimatedtotalprojectcosts.

5. Pledgedrevenues:TheAgencyrequiresthataspecificsource(s)ofrevenuebededicatedandpledgedtomaketheloanrepayments.PriortotheAgency’sapprovalofthededicatedsource(s)ofrevenue,theapplicantmustdemonstratethatthepledgedrevenuesource(s)willgenerateadequaterevenuestomakeloanrepaymentsforthetermoftheloan.

Thededicatedsourceofrevenueisusuallypledgedbytheloanapplicantintheformofanadoptedordinancethatpledgesaspecificanddedicatedsourceofrevenueforrepaymentoftheloan.Theadoptedordinancewillinmostcasespledgeaverystablesourceofrevenue,suchasrevenuesofthesystem,intheformofarevenuebond.Generalobligationandalternatebondordinancesarealsoacceptable.

PleaseensurethattheOrdinanceAuthorizingDebttobeIncurred(seeLegalRequirementsonpage10ofthisdocument)namesthesamepledgedrevenuesasthesourceofrepaymentproposedinthecomprehensive5-yearfinancialprojectionsrequestedinQuestion19.

6. Loanrepaymentperiodrequested:Entertherequestedloanrepaymentperiod,upto20yearsfromtheinitiationofoperationsdate.IfyouqualifyfortheSmallCommunityorHardshipinterestrate

LOANREPAYMENTPERIODANDPLEDGEDREVENUES

PLEASENOTE:Anycostsrelatedtolegal,engineering,orotherprofessionalfeesforwhichtheloanapplicantwouldliketorequestfundingwillneedtobesupportedbyafullyexecutedcontractbetweenallparties.Forfurtherinformation,pleasereviewtheLoanApplicant’sCertificationofEngineeringorProfessionalServicesContractCompliancewithIllinoisEPASRFLoanProgramRequirementswhichcanbefoundonlineat:www2.illinois.gov/epa/Documents/iepa/epa-forms/water-quality/financial-assurance/engineering-eligibility-checklist-and-guide.pdf

ConstructionperiodinterestaccruesatanAPRequaltotheinterestrateintheloanagreementfromthedateofeachdisbursementuntiltheinitiationoftherepaymentperiodorthefollowingrepaymentdate.Theapplicanthastheoptiontoaddconstructionperiodinteresttothetotalamountfinanced,oritcanbepaidwithlocalfunds.Iftheapplicantchoosestofinancetheconstructionperiodinterest,itwillberolledintotheoverallloanamortizationschedule.TheApplicantshouldplanaccordinglywhenadoptingtheirordinanceauthorizingdebttobeincurredifconstructionperiodinterestistobefinanced.

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(perIllinoisAdministrativeCodeSection365.210),youmayrequestaloanrepaymentperiodupto30years,ortheanticipatedusefullifeoftheproject,whicheverisless.

7. Activeserviceconnections:Entertheactiveresidential,commercial,industrial,orotherserviceconnections(ifany).Determinethecurrentmonthlyusercharge.Ifratesareexpectedtochangeasaresultoftheproject,orinthenearfuture,entertheprojectedmonthlyusercharge.SeeFigure1forcubicfeettogallonconversionfactors.Theaveragemonthlyuserchargeshouldreflectdirectchargesplusanyotherchargesthatsupporttheservice,suchasstandbycharges,surcharges,andtaxes.Applicantsmustincludetheplanneduserchargestructure,aswellasthemethodologyforcalculatingtheaveragebillinQuestion20oftheLoanApplication.Iftheentitywillnothaveanyactiveserviceconnections(e.g.wholesaleproviders,nonpointsourceprojects),checkthe“Notapplicable”box.

Figure1:ConversionFactors-CubicFeettoGallonsCubicFeet Gallons1 7.48133.7 1000

8. Usercharges:Providethedatethatthecurrentuserchargeswentintoeffect.Ifchangesinuserchargesareexpected(asindicatedinQuestion7),whatistheeffectivedatefortheprojectedmonthlyusercharges?Ifthereviseduserchargeshavenotyetbeenapproved,donotenteradate,anddescribetheeffortsandexpectationsintheresponsetoQuestion20oftheLoanApplication.Ifuserchargesarenotcollected(e.g.,anonpointsourceproject),leavethisquestionblank.

9. Isanannualreviewoftherevenuesystemandotherrelateduserchargesbeingperformed?Indicatewhethertherevenuesystemanduserchargesarereviewedannuallybytheengineeringconsultantoranotherindependentparty.Ifuserchargesarenotcollected(e.g.,anonpointsourceproject),leavethisquestionblank.

10. Whenwasthemostrecentrevenuesystemstudyperformed?EnterthedateofthemostrecentRevenueStudy.Ifuserchargesarenotcollected(e.g.,anonpointsourceproject),leavethisquestionblank.IfauserchargesystemhasbeenpreviouslyapprovedbytheAgency,evidencewillberequiredtoassurethatthesystemhasbeenadequatelymaintained,isbeingenforcedandwillcontinuetoproduceadequaterevenues.

11. Largestcustomers:Enterinformationoncustomersthataccountformorethan5percentofsystemrevenues.Donotincluderesidentialcustomers;onlyincludecommercial,industrial,government,orothercustomers.

12. Areotherentitiessubstantiallybenefiting(greaterthan5%)fromtheproject?Substantialbeneficiariesaredefinedasentitiesthatwillbenefitfrommorethan5%oftheprojectcosts.Attachcopiesofserviceagreementswiththesebeneficiaries.

SYSTEMINFORMATION

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13. Debtobligations:EnteralldebtobligationsthatwillbepaidusingthesamerevenuesourcepledgedtorepaytheproposedWPCLPloan.Entertheamount,annualpayment,andmaturitydateofthedebtobligation.

14. Planneddebtissuance:Describethecurrentplansfordebtissuanceoverthenextthreeyears.IncludetherevenuesourcefortherepaymentoftheplanneddebtandwhetheritwillbeparityorsubordinatetotheWPCLPfinancing(ifknown).Indicatewhetherthedebthasbeenapprovedbytherequireddecision-makers.

15. Currentbondratings(ifavailable):Iftheentityhasissuedbonds,providethecurrentbondratings.

16. PropertyTaxInformation:IftheapplicantwillbepledgingitsfullfaithandcreditandtaxingpowertosecuretheWPCLPloan(generalobligationbond),providepropertytaxinformationforthemostrecentthreeyears.Include:

• Yearofvaluation,• Totalassessedvalueoftheproperty,• Totalmarketvalueoftheproperty,• Propertytaxrevenueslevied,• Propertytaxescollected,and• Propertytaxcollectionrate.

PleaseseeIEPAWPCLPFinancialCapabilityReviewCriteriasectionstartingonpage9ofthisdocumentforadditionalinstructions.

17. Salestaxcollectiondata.IftheapplicanthaspledgedsalestaxestorepaytheWPCLPloan,providesalestaxescollectedforthemostrecent12months.

PleaseseeIEPAWPCLPFinancialCapabilityReviewCriteriasectionstartingonpage9ofthisdocumentforadditionalinstructions.

18. Startofsystemfiscalyear:Enterthestartdateforthesystem’sfiscalyear(day,month,year).Thisdateshouldbethebasisforthefinancialprojections.

19. Submitacomprehensivefive(5)yearfinancialprojectiondemonstratingthatthededicatedsource(s)ofrevenueissufficienttocovertheWPCLPdebtservicecosts.Financialprojectionsareacentralcomponenttothefinancialcapabilityreviewandloanapprovalprocess.Itisimperativethat

CURRENTANDFUTUREDEBT

SALESTAXINFORMATION

FINANCIALPROJECTIONS

PROPERTYTAXINFORMATION

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theseprojectionsarecomprehensive,andthatallmajorassumptionsaredescribed(inQuestion20).TemplatefinancialprojectionsinMicrosoftExcelareprovidedonIEPA’swebsite.Iftheapplicantwishestouseitsownprojectionsworksheet,itmustensurethatallthecategoriesareaccountedforataminimum.AllprojectionsmustbeinMicrosoftExcel.Theprojectionsmustinclude:

• Last3yearsoffinancialresults,whichtietotheauditedfinancialstatements;• Projectionsforthenextfive(5)years,includingthecurrentyear;• AllrevenuesforthededicatedsourceofrevenuestobeusedforrepayingtheWPCLPloan,

includinguserrates,additionalcharges,andearnings,asapplicable;• Allexpenses,includingoperationsandmaintenanceexpenses,replacementreservesand

debtservicecosts,thatwillbepaidusingthesourceofrevenuestobeusedtorepaytheWPCLPloan;

• CapitalcoststhatwillbepaidusingthesourceofrevenuestobeusedtorepaytheWPCLPloan;

• Accountforchangesinrevenuesduetoratechanges,populationchanges,orotherfactors.• AccountforchangesinexpensesduetochangesinO&Mfromtheproject,currentand

futuredebtservicecosts,andotherfactors;• Iftheapplicantisaprivateentityanddoesnothaveauditedfinancialstatements,use

Federaltaxreturnsforthepreviousthree(3)years.

20. Provideawrittennarrativedetailingthemajorassumptionsusedinarrivingatthecurrentandproposedprojections.ProvideadetailednarrativeforhowtheapplicantarrivedattheprojectionssubmittedunderQuestion19.AlackofinformationmayresultinIEPArevisionstothefinancialprojections.Ensurethattheassumptionsarereasonable.

Topreventdelaysinapplicationreviewandapproval,includealloftherelevantattachmentstotheapplication.Pleasecheckofftheattachmentsincluded.Notethatcertainattachmentsareonlyrequiredforcorporateornon-profitapplicants.Ifyouhaveanyquestionsabouttheattachmentsrequested,contactIEPA’sInfrastructureFinancialAssistanceSectionstaff.

PleasereadallcertificationsintheAppendixcarefully.AdditionalinformationonrequirementssuchasAmericanIronandSteelcanbefoundonIEPA’sInfrastructureFinancialAssistanceSectionwebsite.Ensurethatallitemsarefilledoutandsignedbytheauthorizedpersons.

Thecertificationsinclude:• Amountandsourceofanylocalfundstobeusedforproject(Appendixpage1)• Debarment,SuspensionandOtherRelatedResponsibilityMatters(Appendixpage2)• IntentRegardingNationalFloodInsurance(Appendixpage2)• CertificationRegardingProjectSite,Rights-of-Way,EasementsandPermits(Appendixpage3)• UseofAmericanIronandSteelProducts(Appendixpage3)• EngineeringServicesProcurementReport(Appendixpage4)• AcknowledgmentofFiscalSustainabilityPlan(FSP)Requirements(Appendixpage5)

ATTACHMENTS

APPENDIX

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• TaxpayerIdentificationNumber(Appendixpage6)• ExecutiveCompensationData(Appendixpage7)• AuthorizationofaLoanApplicant’sAuthorizedRepresentative(Appendixpage8)• CertificationofInformationonAllPreviousPages(Appendixpage9)

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IEPAWPCLPFinancialCapabilityReviewCriteria

Priortotheissuanceofaloanagreement,theloanapplicantmustprovidedetailedandsufficientinformationtoallowtheAgencytodeterminethat1)theapplicantisfinanciallycapable,2)haspledgedaDedicatedSourceofRevenuethatisadequatetoretirethedebtandmeetanycovenantsandrequirementsintheloanagreement,and3)hasestablishedauserchargesystem,whereapplicable,thatwillgenerateadequaterevenuestorepaytheloanandaccommodatecostsforoperation,maintenanceandreplacementofthefacilitiestobeconstructed.

TheAgencywillrequiretheloanapplicanttodemonstratethatithasthelegal,financial,managerialandinstitutionalcapabilitytoretiretheloanandtoconstruct,operateandmaintaintheprojectforthelifeofthefacilitiestobeconstructed.Theapplicantmustalsodemonstratetheabilitytomeetanycovenantscontainedintheloanagreement.

TheAgency'sFinancialCapabilityReviewwillbeconductedusingitemssubmittedaspartoftheloanapplication,includingourreviewoftheDedicatedSourceofRevenueandtheuserchargesystemasdetailedbelow.IftheAgencyisunabletomakeaFinancialCapabilitydeterminationbasedontheloanapplication,thesubmissionofadditionalfinancialdata,includingauditedfinancialstatements,mayberequired.

A. DedicatedSourceofRevenueWPCLPrulesrequirethatborrowerspledgeadedicatedsourceofrevenueforrepayment.IEPAwillacceptanyoracombinationofthefollowingsourcesofrepaymentforaloan:

• Water/wastewatersystemrevenues,• Generalobligation(publicentitiesonly),• Statesharedandlocallycollectedsales/excisetaxes(publicentitiesonly),• Specialassessments(publicentitiesonly),and/or• Other,withapprovalbyIEPAmanagement.

UserChargeSystem:Whereauserchargesystemisthededicatedsourceofrevenue,itmust:• Beenactedandenforceablebeforethefirstloandisbursement.• Generatesufficientrevenuetooffsetthecostofoperations,maintenance,andreplacementfor

thefacilitiescoveredbytheloan.• Beincorporatedinoneormoremunicipallegislativeenactmentsorotherappropriate

authorization.Iftheprojectisforaregionaltreatmentworksacceptingwastewaterfromtreatmentworksownedbyothers,thenthesubscribersreceivingwastewatertreatmentservicesfromtheloanrecipientmusthaveadopteduserchargesystems.

• Theuserchargesystemsmustbeincorporatedintheappropriatemunicipallegislativeenactments,intergovernmentalorserviceagreementsorotherappropriateauthorizations.

• Ensurethatthededicatedsourceofrevenueisadequatetomakeloanrepaymentsfortheentiretermoftheloan.

OtherSourceofRevenue:Iftheapplicantisutilizingproperty,salesorspecialassessmentasthededicatedsourceofrevenue,theapplicantwillneedtoensuretheauthorizingdebtordinancenamesthatspecificsourceofrevenueasthededicatedsourceofrevenuetorepaytheloan(asopposedtonamingtherevenuesofthesystemtorepaytheloan).Inaddition,theauthorizeddebtordinanceneedstostatethatifarevenuesourceotherthanrevenuesofthesystemaretorepaytheloan,theordinance

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mustspecificallystatethattheapplicantwilltransferamountssufficientfromthefundwhichthededicatedsourceofrevenueisrecordedintotheWater/SewerFundforpurposesofrepayingtheIEPAloan.

B. LoanTermsandInterestRatePleaseconsultIllinoisAdministrativeCodeSection365.210and365.220toseewhichinterestrateandloanrepaymenttermyouandyourprojectmayqualifyfor.PleaseconsulttheInfrastructureFinanceAssistanceSectionifyouhaveanyquestions,andtoobtainthemostrecentinterestrates.

C. PositionRequirementIfthededicatedsourceofrevenueispledgedinasubordinateposition,theapplicantmustestablishareserveaccountwiththeequivalentcoverageandreservesastheseniorlienholders.Ataminimum,thereserveaccountmustbeequaltotheannualprincipalandinterestpayment,anditmustbefundedwithin2yearsafterloanaward.

D. RepaymentsForallloans,principalandinterestpaymentsarecollectedsemi-annually.Mostborrowerswillhaveleveldebtservicepaymentsthroughoutthelifeoftheloan.However,inindividualcircumstances,IEPAwillworkwithborrowerstoestablishanalternativedebtservicepaymentschedule.

E. NextStepsifUnderwritingCriteriaareNotMetIftheapplicantdoesnotmeetIEPA’sunderwritingrequirements,IEPAmayrequire:

• Additionalrepaymentsources,• AGeneralObligationpledge(publicentitiesonly),• Reserveaccountequaltooneyearofdebtservice,• Increasestoratesandchargespriortosigningloanagreementorfirstdisbursement,• Modificationstotheprojecttodecreasecost,or• Otheroptionsasagreedtowiththeapplicant.

WhatDoWeMeanBy“SufficientRevenues”?Thefinancialprojectionsmustshowthattherevenuesbeingusedtorepaytheloanaresufficienttocoveranyrequiredexpensesandtheannualdebtservicecostswithoutanynegativebalancesattheendoftheyear.Forexample,iftheuserchargesystemisbeingused:

Userchargerevenuescollected– Operations,maintenancecosts– Operations,maintenanceandreplacementreserves– Capitaloutlays– Debtservicecosts(includingtherequestedSRFloan)Balancemustbegreaterthanorequaltozero(0)

Iftheendofyearbalanceisnotgreaterthanorequaltozero,thenadditionalstepswillberequired,asdescribedinsectionE.below.Thismayincluderaisingusercharges,seekinganadditionalsourceofrevenues,orrevisingtheproject.

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IEPAWPCLPLegalRequirements

TherearetwomajorlegalrequirementsthatmustbemetpriortobeingapprovedforaWPCLPloan.Inparticular,theapplicantmustprovidedocumentationshowingithastheauthoritytoincurdebt,anditmustpledgeadedicatedsourceofrevenue.Bothpledgesaretypicallycombinedintoasingleordinance.Whilelegalrepresentationisneeded,itisnotnecessarythattheapplicantobtainbondcounselunlessitchoosesnottouseIEPA’ssampleforms.

IEPAhaspostedsampleordinancesonitswebsitewhichtheapplicantmaychoosetouse.Iftheapplicantchoosestodevelopitsownordinances,itisrecommendedthattheycontactStephanie FlowersatStephanie.Flowers@illinois.govforpre-approval;thiswillhelppreventdelaysinloanapproval.A. OrdinanceAuthorizingDebttobeIncurred–ENTITIESUSINGIEPASAMPLEApplicantsthatchoosetoutilizeIEPA’ssampleordinanceauthorizingdebttobeincurredmustsubmitthefollowingmaterials:

• Acertifiedcopyofthedebtordinance.• IFTHEENTITYISANONHOMERULEMUNICIPALITY,submit

o Proofofpublicationoftheordinanceandnoticeofintenttoborrowfunds,ando ANoReferendumcertificate.

• Alegalopinionfromlocalcounselwithrespecttothevalidityandenforceabilityoftheloanapplicant’sobligationsandtheabsenceofconflictswithotheragreements,bondsorordinances.

SampleIEPAformscanbefoundonthefollowingwebsite.Pleaseusetheappropriatesampleordinanceforyourcommunity.

www2.illinois.gov/epa/topics/grants-loans/state-revolving-fund/guidance/Pages

B. OrdinanceAuthorizingDebttobeIncurred–ENTITIESUSINGOTHERFORMSAnapplicantmaychoosetousebondcounseltodeveloptheordinanceauthorizingdebttobeincurred.Inthesecases,theapplicantmustsubmit:

• Acertifiedcopyofthebondordinance.• IFTHEENTITYISANONHOMERULEMUNICIPALITY,submit

o Acertifiedcopyofashortorpreliminaryordinancewhichincludesthenoticeofintenttoborrowfunds,

o Proofofpublication,ando ANoReferendumcertificate.

• Alegalopinionfromlocalcounselwithrespecttothevalidityandenforceabilityoftheloanapplicant’sobligationsandtheabsenceofconflictswithotheragreements,bondsorordinances.

C. OrdinanceContentsTheordinance,whetheritisIEPA’ssampleoronedevelopedbybondcounsel,mustincludethefollowing:

• Statutoryauthoritytoborrow;• Identificationofthesourceofrevenueusedtorepaytheloan;and• Subordinateorreserveaccountinformation,ifapplicable.

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D. NonpublicEntitiesNonpublicentitiesmustalsosubmitlegaldocumentationstatingthattheyhavetheauthoritytoincurdebtandidentificationofadedicatedsourceofrevenueforrepayment.Documentscaninclude,butarenotlimitedto,acopyofanyboardresolutionstoincurthedebt,ArticlesofIncorporation,By-Laws,PartnershipAgreements,FederalEmployerIdentificationNumber,oralegalopinion.

E. OtherLegalConditionsTheapplicantmustalsosubmitaTaxExemptionCertificateandAgreement.Thisform,aswellasinstructionsforcompletion,canbefoundonlineatwww2.illinois.gov/epa/topics/grants-loans/state-revolving-fund/Pages/state-revolving-fund-forms.aspx.

F. PDFFilesSubmissionofhardcopiesisnotrequired.PDFfilesaresufficient.

QUESTIONS?Ifyoustillhavequestions,pleasecontactus:Financialquestions: Jacob.Poeschel@illinois.govLegalquestions:Generalquestions:

Stephanie.Flowers@illinois.govHeidi.Allen@illinois.gov