Issuance of Not to Exceed $1,000,000, Sewer Revenue Capital Loan Notes (Interim Financing) State Revolving Funds, Planning and Design Loan Applications Copyrighted
September 18, 2023
City of Dubuque Public Hearings # 012.
City Council Meeting
ITEM TITLE: Issuance of Notto Exceed $1,000,000, Sewer Revenue Capital Loan
Notes (Interim Financing) State Revolving Funds, Planning and Design
Loan Applications
SUMMARY: Proof of Publication on notice of public hearing to considerthe issuance
of not to exceed $1,000,000, Sewer Revenue Capital Loan Notes
(Interim Financing) State Revolving Funds, Planning and Design Loan
Applications and City Manager recommending approval.
RESOLUTION Taking Additional Action with Respect to a Sewer
Revenue Loan and DisbursementAgreement and Authorizing,Approving
and Securing the Payment of a$1,000,000 Sewer Revenue Loan and
Disbursement Agreement Anticipation Project Note (I FA I nterim Loan
and DisbursementAgreement) (Lift Stations)
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Dubuque
THE CITY OF
DUB All-America Cit E " Lii:
Masterpiece on the Mississippi 201_ *201 3
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$1,000,000, Sewer Revenue Capital Loan Notes (Interim Financing) State
Revolving Funds, Planning and Design Loan Applications
DATE: September 14, 2023
Chief Financial Officer Jennifer Larson is recommending City Council approval of the
suggested proceedings for a public hearing on the issuance of not to exceed $1 ,000,000
in Sewer Revenue Capital Loan Notes (Interim Financing) State Revolving Loan Fund
Program. $1,000,000 of the proceeds will be used to fund the planning and design of the
improvements to various elements of the existing Cedar Street Lift Station, Terminal
Street Lift Station, and the associated force mains between the two and to the City's public
wastewater treatment facility.
The State Revolving Capital Loan Notes will carry a 0% interest rate for up to three years
and have no initiation or servicing fees. The loan may be rolled into an SRF Construction
Loan or repaid when permanent financing is obtained.
The proceedings have been prepared to show as a first step the receipt of any oral or
written objections from any resident or property owner to the proposed action of the
Council to authorize the form of Loan and Disbursement Agreement and issue the Notes
to the Iowa Finance Authority. A summary of objections received or made, if any, should
be attached to the proceedings. After all objections have been received and considered
if the Council decides to enter into the Agreement and issue the Notes, a form of
resolution follows that should be introduced and adopted, entitled "Resolution taking
additional action with respect to a Sewer Revenue Loan and Disbursement Agreement
and authorizing, approving and securing the payment of a $1,000,000 Sewer Revenue
Loan and Disbursement Agreement Anticipation Project Note (IFA Interim and
Disbursement Agreement)."
In the event the Council decides to abandon the proposal, then the form of resolution
included in said proceedings should not be adopted. In this event, a motion merely be
adopted to the effect that such proposal is abandoned.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
i.- /A./11.44 kV. 714‘...,,
Michael C. Van Milligen
MCVM/jml
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Brian DeMoss, Finance Manager
Dubuque
THE CITY OF
All-Aierlra City
DUB til
iI f1
I
2007.2012.
Masterpiece on the Mississippi 2017*20119
TO: Michael C. Van Milligen, City Manger
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$1,000,000, Sewer Revenue Capital Loan Notes (Interim Financing) State
Revolving Funds, Planning and Design Loan Applications
DATE: September 14, 2023
INTRODUCTION:
The purpose of this memorandum is to provide suggested proceedings for a public hearing
on the issuance of a not to exceed $1,000,000 Sewer Revenue Capital Loan Notes SRF
Planning and Design Loans. A letter from bond counsel detailing information on the public
hearing is enclosed.
DISCUSSION
$1,000,000 of the proceeds will be used to fund the planning and design of the
improvements to various elements of the existing Cedar Street Lift Station, Terminal Street
Lift Station, and the associated FMs between the two and to the City's public wastewater
treatment facility.
The State Revolving Capital Loan Notes will carry a 0% interest rate for up to three years
and have no initiation or servicing fees. The loan may be rolled into an SRF Construction
Loan or repaid when permanent financing is obtained.
The proceedings have been prepared to show as a first step the receipt of any oral or
written objections from any resident or property owner to the proposed action of the
Council to authorize the form of Loan and Disbursement Agreement and issue the Notes
to the Iowa Finance Authority. A summary of objections received or made, if any, should
be attached to the proceedings. After all objections have been received and considered if
the Council decides to enter into the Agreement and issue the Notes, a form of resolution
follows that should be introduced and adopted, entitled "Resolution taking additional action
with respect to a Sewer Revenue Loan and Disbursement Agreement and authorizing,
approving and securing the payment of a $1,000,000 Sewer Revenue Loan and
Disbursement Agreement Anticipation Project Note (IFA Interim and Disbursement
Agreement)."
In the event the Council decides to abandon the proposal, then the form of resolution
included in said proceedings should not be adopted. In this event, a motion merely be
adopted to the effect that such proposal is abandoned.
ACTION TO BE TAKEN
I respectfully recommend approval of the resolutions.
Attachments
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Deron Muehring, Civil Engineer
Brian DeMoss, Finance Manager
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always ahead
September 13, 2023
VIA EMAIL
Jenny Larson
Chief Financial Officer
Dubuque, Iowa
Re: $1,000,000 SRF Sewer Revenue Loan and Disbursement Agreement (Lift Stations)
Dear Jenny:
We have prepared and attach proceedings to be used at the September 18, 2023 City Council
meeting to enable the Council to hold the hearing on and authorize a Sewer Revenue Loan and
Disbursement Agreement (the "Agreement") and approve the issuance of a Sewer Revenue Planning and
Design Loan Project Note (the "Project Note"). The proceedings attached include the following items:
1. Minutes of the September 18, 2023 meeting reflecting the hearing and providing for the
adoption of a resolution (the "Resolution") authorizing and approving the Agreement and providing for the
issuance of the Project Note.
2. Certificate attesting to the transcript.
3. The Project Note. Please have the Project Note signed as indicated, and return the executed
Project Note to us.
On September 18, 2023, the City Council should meet as scheduled and conduct the hearing. The
minutes as drafted assume that no objections will be filed or made. The City Council may then proceed
with the adoption of the attached Resolution.
Please return one fully executed copy of these proceedings, along with the executed Project Note,
to our office.
Please call John or me if you have questions.
Best regards,
John Danos
David D. Grossklaus
8oi Grand Avenue�Suite 4ioo�Des Moines,IA I 50309-8�2 I T5�5•283•1000�dorsey.com
Page2 � �)) DORSEY
Attachments
cc:
Crenna Brumwell
Adrienne Breitfelder
Deron Muehring
Steve Brown
Tracy Schadle
Tionna Pooler
Tracy Scebold
Tony Toigo
Lee Wagner
Dubuque!2nd%2 Hrg&iss-P&D Sewer
(Hearing/Issuance— Sewer Revenue)
Dubuque, Iowa
September 18, 2023
A meeting of the City Council of the City of Dubuque, Iowa, was held on September 18,
2023, at 6:30 o'clock p.m., at the Historic Federal Building, 350 W. 6th St, Second Floor Council
Chambers, in the City.
The meeting was called to order by the Mayor, and the roll was called showing the
following Council Members present and absent:
Present: Mayor Cavanagh, Council Members; Ric Jones, David Resnick,
Susan Farber, Laura Roussell, Danny Sprank, and Katy Wethal
Absent: None -
This being the time and place specified for holding a public hearing and taking action on
the proposal to enter into a Sewer Revenue Loan and Disbursement Agreement, the City Clerk
announced that no written objections had been placed on file. Whereupon, the Mayor called for
any written or oral objections, and there being none, the Mayor declared the public hearing
closed.
After due consideration and discussion, Council Member Wethal introduced the
following resolution and moved its adoption, seconded by Council Member Resnick. The Mayor
put the question upon the adoption of said resolution, and the roll being called, the following
Council Members voted:
Ayes: Mayor Cavanagh, Council Members; Ric Jones, David Resnick,
Susan Farber, Laura Roussell, Danny Sprank, and Katy Wethal
Nays: None •
Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out.
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Dubuque/2''Y2 Hrg&Iss-P&D Sewer
RESOLUTION NO. 317-23
Resolution taking additional action with respect to a Sewer Revenue Loan and
Disbursement Agreement and authorizing, approving and securing the payment of a
$1,000,000 Sewer Revenue Loan and Disbursement Agreement Anticipation Project Note
(IFA Interim Loan and Disbursement Agreement) (Lift Stations)
WHEREAS, the City of Dubuque (the "City"), in Dubuque County, State of Iowa, did
heretofore establish a Municipal Sanitary Sewer System (the "Utility") in and for the City which
has continuously supplied sanitary sewer service in and to the City and its inhabitants since its
establishment; and
WHEREAS, the management and control of the Utility are vested in the City Council,
(the "Council"), and no board of trustees exists for this purpose; and
WHEREAS, the City has heretofore proposed to borrow money and enter into a Sewer
Revenue Loan and Disbursement Agreement (the "Loan and Disbursement Agreement") with
the Iowa Finance Authority (the "Lender") and to issue in accordance therewith Sewer Revenue
Bonds (the "Bonds") in a principal amount not to exceed $1,000,000 a purpose of paying the
cost, to that extent, of planning, designing and constructing improvements and extensions to the
Utility (the "Project"), and has published notice of the proposed action and has held a hearing
thereon on September 18, 2023; and
WHEREAS, it is necessary at this time to authorize and approve the issuance of a
$1,000,000 Sewer Revenue Loan and Disbursement Agreement Anticipation Project Note (IFA
Interim Loan and Disbursement Agreement) (the "Project Note") pursuant to the provisions of
Section 76.13 of the Code of Iowa in anticipation of the receipt of and payable from the proceeds
of the Loan and Disbursement Agreement (the "Loan Proceeds") in order to pay authorized costs
in connection with planning and designing the Project;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Dubuque, Iowa,
as follows:
Section 1. The City Council hereby covenants for the benefit of the Lender and all
who may at any time be the holder of the Project Note to enter into the Loan and Disbursement
Agreement and to issue and deliver the Bonds prior to the Maturity Date, as defined in the
Project Note, and declares that this resolution constitutes the "additional action" required by
Section 384.24A of the Code of Iowa. The Bonds are hereby ordered to be issued at such time as
the City enters into the Loan and Disbursement Agreement.
Section 2. The Project Note in the principal amount of $1,000,000 is hereby
authorized to be issued to the Lender. The Project Note shall be dated as of the date of closing,
shall mature on the Maturity Date as defined in the Project Note, and shall bear interest at the
rate of 0%per annum.
The Project Note shall be executed on behalf of the City with the official manual or
facsimile signature of the Mayor and attested with the official manual or facsimile signature of
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Dubuque/2'%2 I-Irg&Iss-P&D Sewer
the City Clerk and shall be a fully registered instrument without interest coupons. In case any
officer whose signature or the facsimile of whose signature appears on the Project Note shall
cease to be such officer before the delivery of the Project Note, such signature or such facsimile
signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer
had remained in office until delivery.
The City Clerk is hereby designated as the Registrar and Paying Agent for the Project
Note and may be hereinafter referred to as the "Registrar" or the "Paying Agent."
The City reserves the right to prepay principal of the Project Note in whole or in part on
any date prior to the Maturity Date, as defined in the Project Note, at a prepayment price equal to
the principal amount thereof prepaid.
The Project Note shall be fully registered as to both principal and interest in the name of
the owner in the records of the City kept for such purpose, after which no transfer shall be valid
unless made on said records by the City Clerk, and then only upon a written instrument of
transfer satisfactory to the City, duly executed by the registered owner or the duly authorized
attorney for such registered owner.
The City shall maintain as confidential the record of identity of owners of the Project
Note, as provided by Section 22.7 of the Code of Iowa.
Section 3. The Project Note shall be in substantially the following form:
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Dubuque)2°d'A Hrg&Iss-P&D Sewer
(Form of Project Note)
UNITED STATES OF AMERICA
STATE OF IOWA
DUBUQUE COUNTY
CITY OF DUBUQUE
SEWER REVENUE LOAN AND DISBURSEMENT AGREEMENT ANTICIPATION PROJECT NOTE
(IFA INTERIM LOAN AND DISBURSEMENT AGREEMENT)(LIFT STATIONS)
No. 1 MAXIMUM PRINCIPAL AMOUNT: $1,000,000
INTEREST RATE PROJECT NOTE DATE MATURITY DATE
0% September ,2023 September_,2026
This Sewer Revenue Loan and Disbursement Agreement Anticipation Project Note (IFA
Interim Loan and Disbursement Agreement) (the "Project Note") is issued to the Iowa Finance
Authority (the "Lender") by the City of Dubuque, Iowa (the "City"), as of the Project Note Date.
The Lender shall loan to the City an interim amount not to exceed $1,000,000.
The City has adopted a resolution (the "Resolution") authorizing and approving this
Project Note pursuant to the provisions of Sections 76.13 and 384.24A of the Code of Iowa,
2023, as amended, and providing for the issuance and securing the payment of this Project Note,
and reference is made to the Resolution for a more complete statement as to the source of
payment of this Project Note and the rights of the owners of this Project Note. This Project Note,
together with any additional obligations as may be hereafter issued and outstanding from time to
time under the conditions set forth in the Resolution, shall be payable solely and only from the
proceeds (the "Loan Proceeds") of an authorized Loan and Disbursement Agreement and the
corresponding future issuance of Sewer Revenue Bonds, a sufficient portion of which have been
appropriated to the payment hereof
The proceeds of this Project Note shall be used for the purposes set forth in the
Resolution and shall be made available to the City in the form of one or more periodic
disbursements.
This Project Note shall be executed and delivered to the Lender in evidence of the City's
obligation to repay the amounts payable hereunder and shall bear interest at 0%. This Project
Note shall be payable as to principal in full on the Maturity Date (hereinafter defined) and in the
total aggregate amount drawn by the City pursuant to this Project Note, shall be subject to
prepayment in whole or in part on any date at a prepayment price equal to the principal amount
hereof prepaid, and shall contain such other terms and provisions as provided in the Resolution.
This Project Note is payable as to principal three years from the Project Note Date (the
"Maturity Date"). If the City enters into a Loan and Disbursement Agreement with the Lender
pursuant to the Iowa Water Pollution Control Works and Drinking Water Facilities Financing
Program by the Maturity Date, the Lender may provide for the repayment in full of this Project
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Dubuque/2''//Hrg&[ss-P&D Sewer
Note pursuant to the terms of such Loan and Disbursement Agreement and the resolution
authorizing the Loan and Disbursement Agreement.
This Project Note is executed pursuant to the provisions of Sections 76.13 and 384.24A
of the Code of Iowa and shall be read and construed as conforming to all provisions and
requirements of the statute.
In the event of any inconsistency or conflict between the terms and conditions of the
Resolution and this Project Note, the parties acknowledge and agree that the terms of this Project
Note shall take precedence over any such terms of the Resolution.
And It Is Hereby Certified and Recited that all acts, conditions and things required by the
laws and Constitution of the State of Iowa, to exist, to be had, to be done or to be performed
precedent to and in the issue of this Project Note were and have been properly existent, had, done
and performed in regular and due form and time; and that the issuance of this Project Note does
not exceed any constitutional or statutory limitations.
IN TESTIMONY WHEREOF, the City of Dubuque, Iowa has caused this Project Note to
be executed by its Mayor and attested by its City Clerk all as of the Project Note Date.
CITY OF DUBUQUE, IOWA
By: DO NOT SIGN
Mayor
Attest:
DO NOT SIGN
City Clerk
IN WITNESS WHEREOF, I have hereunto affixed my signature all as of the date first
above written.
IOWA FINANCE AUTHORITY
By:
Its:
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DORSEY &WHITNEY LLP, ATTORNEYS,DES MOINES,IOWA
Dubuque/2'1/2 Hrg&Iss-P&D Sewer
Section 4. The Project Note shall be executed as herein provided as soon after the
adoption of this resolution as may be possible and thereupon shall be delivered to the Registrar
for registration and delivery to the Lender, upon receipt of the Project Note proceeds.
Section 5. The Loan Proceeds are hereby appropriated to the payment of the Project
Note and may also be appropriated to the payment of other obligations issued to pay costs of the
Project, but only to the extent that full provision has been made for the payment of principal of
the Project Note.
At its sole discretion, the City Council may appropriate to the payment of the Project
Note proceeds to be received from state or federal grants and/or income or revenues from
sources to be received and expended for the Project during the period of Project construction.
The Project Note is a limited obligation of the City payable solely and only from the
Loan Proceeds and shall not constitute a general obligation of the City, nor shall it be payable in
any manner by taxation, and under no circumstances shall the City be in any manner liable by
reason of the failure of the Loan Proceeds to be sufficient for the payment in whole or in part of
the Project Note.
Section 6. Upon a breach or default of a term of the Project Note or any Parity
Obligations and this resolution, a proceeding may be brought in law or in equity by suit, action
or mandamus to enforce and compel performance of the duties required under the terms of this
resolution and Section 76.13 of the Code of Iowa.
Section 7. The City reserves the right to issue additional obligations (the "Parity
Obligations") payable from the Loan Proceeds, and ranking on a parity with, the Project Note.
The Project Note or any Parity Obligations shall not be entitled to priority or preference one over
the other in the application of the Loan Proceeds regardless of the time or times of the issuance
of such Project Note or Parity Obligations, it being the intention of the City that there shall be no
priority among the Project Note or Parity Obligations, regardless of the fact that they may have
been actually issued and delivered at different times.
Section 8. The provisions of this resolution shall constitute a contract between the
City and the owners of the Project Note and Parity Obligations as may from time to time be
outstanding, and after the issuance of the Project Note, no change, variation or alteration of any
kind of the provisions of this resolution shall be made without prior consent of the Lender which
will adversely affect the owners of the Project Note or Parity Obligations until the Project Note
and Parity Obligations and the interest thereon shall have been paid in full.
Section 9. If any section, paragraph, clause or provision of this resolution shall be
held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of
the remaining provisions of this resolution.
Section 10. All resolutions and orders or parts thereof in conflict with the provisions
of this resolution are, to the extent of such conflict, hereby repealed.
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Dubuque/2'''1/2 Hrg&Iss-P&D Sewer
Section 11. This resolution shall be in full force and effect immediately upon its
adoption and approval, as provided by law.
Passed and approved September 18, 2023.
Brad M. Ca anagh or
Attest:
Trish L. Gleason, Assistant City Clerk
On motion and vote, the meeting adjourned.
Brad M. Cavanag e40F ayor
Attest:
"=-7F50-gSC-t-
Trish L. Gleason, Assistant City Clerk
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
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ATTESTATION CERTIFICATE:
STATE OF IOWA
COUNTY OF DUBUQUE SS:
CITY OF DUBUQUE
I, the undersigned, do hereby certify that I have in my possession or have access to the
complete corporate records of the aforesaid City and of its City Council and officers and that I
have carefully compared the transcript hereto attached with the aforesaid corporate records and
that the transcript hereto attached is a true, correct and complete copy of all the corporate records
in relation to the authorization and approval of a certain Sewer Revenue Loan and Disbursement
Agreement (the "Agreement") and of a certain $1,000,000 Sewer Revenue Loan and
Disbursement Agreement Anticipation Project Note (IFA Interim Loan and Disbursement
Agreement) (Lift Stations) (the "Project Note") and that the transcript hereto attached contains a
true, correct and complete statement of all the measures adopted and proceedings, acts and things
had, done and performed up to the present time with respect thereto.
I further certify that no objections were filed in my office and no objections of any kind
were made to the matter of entering into the Agreement or issuing such Project Note at the time
and place set for hearing thereon, and that no petition of protest or objections of any kind have
been filed or made, nor has any appeal been taken to the District Court from the decision of the
City Council to enter into the Agreement or to issue the Project Note.
WITNESS MY HAND this M94" day of SkpAas,,,, ,r- , 2023.
Trish L. Gleason, Assistant City Clerk
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
09/08/2023
and for which the charge is 29.26
'Subscribed to before me, a Notary Pub n and for
Dubuque County, Iowa,
this 8th day of September, 2023
Notary P in and for Dubuque County, Iowa.
0
0+i i
JANET K. PAPE
Commission Number 199659
My Commission Expires
tow', 12111/2025
Ad text :
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER
INTO A LOAN AND DISBURSEMENT AGREEMENT IN A PRINCIPAL AMOUNT
NOT TO EXCEED $1,000,000
(SEWER REVENUE)
The City Council of the City of Dubuque, Iowa, will meet on
September 18, 2023, at 6:30 oclock p.m., at the Historic
Federal Building, 350 W. 6th St, Second Floor Council
Chambers, the purpose of instituting proceedings and taking
action to enter into a loan and disbursement agreement (the
"Agreement") and to borrow money thereunder in a principal
amount not to exceed $1,000,000 for the purpose of paying the
cost, to that extent, of planning, designing and constructing
improvements and extensions to the City's Municipal Sanitary
Sewer System,
The Agreement will not constitute a general obligation of
the City, nor will it be payable in any manner by taxation
but, together with the City's outstanding Sewer Revenue
Indebtedness and any additional obligations of the City as may
be hereafter issued and outstanding from time to time ranking
on a parity therewith, will be payable solely and only from
the Net Revenues of the Municipal Sanitary Sewer System of the
City,
At that time and place, oral or written objections may be
filed or made to the proposal to enter into the Agreement.
After receiving objections, the City may determine to enter
into the Agreement, in which case, the decision will be final
unless appealed to the District Court within fifteen (15) days
thereafter.
By order of the City Council of the City of Dubuque, Iowa.
Trish L. Gleason, Assistant City Clerk
It 9/8