Issuance of Not to Exceed $761,000 Stormwater Revenue Loan and Disbursement Agreement – Sponsorship Project Amendment 2024 Green Alley Project Copyrighted
June 2, 2025
City of Dubuque PUBLIC HEARINGS # 5.
City Council
ITEM TITLE: Proceedings to Hold Public Hearing for the Issuance of Not to
Exceed $761,000 Stormwater Revenue Loan and
Disbursement Agreement— Sponsorship Project Amendment
2024 Green Alley Project
SUMMARY: Proof of Publication on notice of public hearing to consider
City Council approval of the suggested proceedings for a
public hearing on the issuance of not to exceed $761,000
Stormwater Revenue Loan and Disbursement Agreement—
Sponsorship Project Amendment Green Alley, and City
Manager recommending approval.
RESOLUTION Taking additional action on proposal to enter
into a Stormwater Revenue Loan and Disbursement
Agreement
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTAC H M ENTS:
1. MVM Memo Green Alley Sponsorship SRF Public Hearing_MVM
memo_2025_05_28
2. Green Alley Sponsorship SRF Public Hearing_Staff inemo_2025_05_28
3. 2nd Half Hrg Only Stormwater Rev LDA (Green Alley) (Dubuque #212025)-v1
4. Proof of Publication
Page 956 of 2490
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Hold Public Hearing for the Issuance of Not to Exceed
$761,000 Stormwater Revenue Loan and Disbursement Agreement —
Sponsorship Project Amendment 2024 Green Alley Project)
DATE: May 28, 2025
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 $761,000
Stormwater Revenue Loan and Disbursement Agreement— Sponsorship Project
Amendment Green Alley. The Upper Bee Branch Stormwater Management Utility
Revenue Capital Loan Note, Series 2019, dated April 12, 2019, will also be amended by
decreasing the interest rate to fund the 2024 Green Alley sponsorship project.
The proceeds of which will be used to pay construction costs for the reconstruction of
three alleys in the downtown area. These alleys include the reconstruction of the alleys
(2) between lowa Street and Central Avenue from 15th to 17th streets. The third alley
will be reconstructed between Central Avenue and White Street from 17th to 18th
streets. The project will include replacement of water and sewer utilities in the corridor,
including replacing private services for water and sewer. The private water services that
are lead will be replaced from the main to the buildings.
The City of Dubuque was approved for partial funding for this project through the Clean
Water SRF Sponsorship Project program. The SRF Sponsorship Project is related to the
Upper Bee Branch Stormwater SRF loan and will provide $761,000 needed to construct
the improvements associated with the three alleys in the downtown area.
The funding of the $761,000 in improvements will come from interest payments of the
City's Upper Bee Branch Stormwater loan which will be returned to the City to fund the
2024 Green Alley Project.
In 2009, legislation was passed in lowa that allows water utilities that issue debt through
the Clean Water State Revolving Fund Program to sponsor and help finance other water
quality improvement (CWSRF) projects within or outside its service limits. This new
funding mechanism, called Water Resource Restoration Sponsored Projects, will provide
cities, counties, local watershed organizations, watershed management authorities,
county conservation boards, and soil and water conservation districts a funding source to
Page 957 of 2490
construct improvements throughout a watershed that keep sediment, nutrients, chemicals
and other pollutants out of streams and lakes.
Repayment of a standard Clean Water SRF (CWSRF) loan includes the repayment of the
original loan amount, the principal, and the cost to finance the loan, interest, and fees. On
a CWSRF loan with a sponsored project, the financing costs are reduced by the amount
of the cost of the sponsored project improvements. Figure 1 shows a comparison between
a standard CWSRF loan and a CWSRF loan with a sponsorship project. As shown, the
total cost to the utility (the total of loan repayments) remains unchanged as the cost of
funding for the sponsorship project is offset by a reduction in loan financing costs. In
essence, two water quality projects are completed for the price of one.
u FundingforSponsarship Project
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R o Loan Financing Costs
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Figure 1.Loan repayment comparison between a standard CWSRF loan and a CWSRF loan
with a sponsorship project.
The State of lowa has discontinued the sponsored project option for future debt
issuances.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
���1 ��
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
Page 958 of 2490
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Proceedings to Hold Public Hearing for the Issuance of Not to Exceed
$761,000 Stormwater Revenue Loan and Disbursement Agreement —
Sponsorship Project Amendment 2024 Green Alley Project
DATE: May 28, 2025
INTRODUCTION
The purpose of this memorandum is to provide suggested proceedings for a public hearing
on the issuance of a not to exceed $761,000 Stormwater Revenue Loan and
Disbursement Agreement— Sponsorship Project Amendment Green Alley. The Upper Bee
Branch Stormwater Management Utility Revenue Capital Loan Note, Series 2019, dated
April 12, 2019, will also be amended by decreasing the interest rate to fund the 2024
Green Alley sponsorship project.
DISCUSSION
This project will include the reconstruction of three alleys in the downtown area. These
alleys include the reconstruction of the alleys (2) between lowa Street and Central Avenue
from 15th to 17th streets. The third alley will be reconstructed between Central Avenue
and White Street from 17th to 18th streets. The project will include replacement of water
and sewer utilities in the corridor, including replacing private services for water and sewer.
The private water services that are lead will be replaced from the main to the buildings.
The alley between lowa Street and Central Avenue from 15t" to 16th streets is planned to
have special design for the pavers. Voices Studio approached the city to consider
installing the pavers in this alley using a mosaic look. This mosaic pattern was developed
by regional artists to pay respect to the native people of the land Dubuque occupies
The City of Dubuque was approved for partial funding for this project through the Clean
Water SRF Sponsorship Project program. The SRF Sponsorship Project is related to the
Upper Bee Branch Stormwater SRF loan and will provide $761,000 needed to construct the
improvements associated with the three alleys in the downtown area.
Page 959 of 2490
The funding of the $761,000 in improvements will come from interest payments of the City's
Upper Bee Branch Stormwater loan which will be returned to the City to fund the 2024 Green
Alley Project.
In 2009, legislation was passed in lowa that allows water utilities that issue debt through the
Clean Water State Revolving Fund Program to sponsor and help finance other water quality
improvement (CWSRF) projects within or outside its service limits. This new funding
mechanism, called Water Resource Restoration Sponsored Projects, will provide cities,
counties, local watershed organizations, watershed management authorities, county
conservation boards, and soil and water conservation districts a funding source to construct
improvements throughout a watershed that keep sediment, nutrients, chemicals and other
pollutants out of streams and lakes.
Repayment of a standard Clean Water SRF (CWSRF) loan includes the repayment of the
original loan amount, the principal, and the cost to finance the loan, interest, and fees. On a
CWSRF loan with a sponsored project, the financing costs are reduced by the amount of
the cost of the sponsored project improvements. Figure 1 shows a comparison between a
standard CWSRF loan and a CWSRF loan with a sponsorship project. As shown, the total
cost to the utility (the total of loan repayments) remains unchanged as the cost of funding
for the sponsorship project is offset by a reduction in loan financing costs. In essence, two
water quality projects are completed for the price of one.
,� r FundingforSponsorship Project
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R . I o Loan Financing[osts
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o I
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Figure 1_Loan repayment comparison between a standard CWSRF loan and a CWSRF loan
with a sponsorship project.
The State of lowa has discontinued the sponsored project option for future debt issuances.
ACTION TO BE TAKEN
I respectfully recommend the adoption of the enclosed resolution on the proposed issuance
not to exceed $761,000 in Stormwater Revenue Loan Notes (State Revolving Loan Fund
Program) for the 2024 Green Alley Sponsorship Project.
Attachments
Page 960 of 2490
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Brian DeMoss, Finance Manager
Gus Psihoyos, City Engineer
Page 961 of 2490
D4RSEY
May 28,2025
VIA EMAIL
Jenny Larson
Chief Financial Officer
Dubuque,Iowa
Re: $761,000 SRF Stormwater Revenue Loan and Disbursement Agreement
Our File No. 430411-21
Dear Jenny:
We have prepared and attach proceedings for the June 2, 2025, City Council meeting related to the
public hearing and additional action on the Stormwater Revenue Loan and Disbursement Agreement (the
"Agreement")in connection with the SRF Green Alley Sponsored Project.
The proceedings attached include the following items:
1. Minutes of the meeting covering the public hearing, followed by the resolution taking
additional action in connection with the Agreement. This resolution simply sets forth the City Council's
determination to enter into the Agreement in the future and its adoption constitutes the "additional action"
required by the Iowa Code.
2. Attestation Certificate with respect to the validity of the transcript.
On June 2, 2025, the Ciry Council should meet as scheduled and hold the hearing on its intenrion to
enter into the Agreement. The minutes as drafted assume that no objections will be filed or made.
Please return one fully executed copy of these proceedings to our office as soon as possible. Please
call me if you have questions.
Best regards,
David D. Grossklaus
John P. Danos
Attachments
cc: Crenna Brumwell
Adrienne Breitfelder
Jon Dienst
Jason Duba
Wally Wernimont
Tionna Pooler
Tracy Scebold
Tony Toigo
Lee Wagner
8oi Grand Avenue�Suite 4100�Des Moines,IA I 5o3�9-HOOz I T 515•z83•1o00�dorsey.com
Page 962 of 2490
Dubuque / 430411-21 / 2nd'A Hrg Only Stomwater Rev (Green Alley)
(Hearing — Stormwater Revenue)
430411-21
Dubuque, Iowa
June 2, 2025
The City Council of the City of Dubuque, Iowa, met on June 2, 2025, at 6:30 p.m., at the
Historic Federal Building, 350 W. 6t" St, Second Floor Council Chambers, Dubuque, Iowa. The
meeting was called to order by the Mayor, and the roll was called showing the following members
of the Council present and absent:
Present: Mayor Cavanagh: Council Members Farber, Jones, Resnick, Roussell, S rank,
Wethal
Absent:
• • Other Business-
PUBLIC HEARING
This being the time and place specified for holding the public hearing and taking action on
the proposal to enter into a Stormwater 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.
MOTION TO APPROVE RESOLUTION
After due consideration and discussion, Council Member Roussell introduced the
following resolution and moved its adoption, seconded by Council Member Wethal. The Mayor
put the question upon the adoption of said resolution, and the roll being called, the following
Council Members voted:
Ayes: Cavanagh, Roussell, Wethal, Sprank, Resnick, Farber, Jones
Nays:
Whereupon, the Mayor declared the resolution duly adopted, as follows:
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Dubuque / 430411-21 / 2nd'h Hrg Only Stonnwater Rev (Green Alley)
RESOLUTION NO. 198-25
Resolution taking additional action on proposal to enter into a Stormwater Revenue
Loan and Disbursement Agreement
WHEREAS, the City of Dubuque (the "City'), in Dubuque County, State of Iowa, did
heretofore establish a Stormwater Management Utility System (the "Utility") in and for the City;
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, pursuant to prior resolutions of the Council, the City has heretofore issued
Stormwater Revenue bonds or notes as set forth in prior proceedings of the Council, and a portion
of such prior Stormwater Revenue debt remains outstanding (the "Outstanding Indebtedness");
and
WHEREAS, pursuant to the resolutions relating to and authorizing the Outstanding
Indebtedness (the "Outstanding Bond Resolutions") the City reserved the right to issue additional
obligations payable from the net revenues of the Utility and ranking on a parity with the
Outstanding Indebtedness under the terms and conditions set forth in the Outstanding Bond
Resolutions; and
WHEREAS, the City will undertake the construction of a certain water resource restoration
project (the "Project"); and
WHEREAS, pursuant to Section 384.84 of the Code of Iowa, the City has the authority to
issue revenue bonds to pay for such qualifying water resource restoration projects; and
WHEREAS, the Iowa Finance Authority (the "Lender") has agreed to provide financing
for the Project by decreasing the interest rate on the City's outstanding Stormwater Management
Utility Revenue Capital Loan Note No. R-1, Series 2019, dated April 12, 2019 and providing a 0%
interest loan to the City for the Project; and
WHEREAS, the City has heretofore proposed to contract indebtedness and enter into a
certain Stormwater Revenue Loan and Disbursement Agreement (the "Agreement") and to borrow
money thereunder in a principal amount not to exceed $761,000, pursuant to the provisions of
Sections 384.24A and 384.84A of the Code of Iowa, for the purpose of paying the cost, to that
extent, of planning, designing and constructing the Project, and has published notice of the
proposed action and has held a hearing thereon on June 2, 2025;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Dubuque, Iowa,
as follows:
Section 1. The City Council hereby determines to enter into the Agreement in the
future and orders that Stormwater Revenue Bonds be issued at such time in evidence thereof. The
City Council further declares that this resolution constitutes the "additional action" required by
Section 384.24A of the Code of Iowa.
-2-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Dubuque / 430411-21 / 2nd %a Hrg Only Stonnwater Rev (Green Alley)
Section 2. All resolutions or parts thereof in conflict herewith are hereby repealed, to
the extent of such conflict.
Section 3. This resolution shall be in full force and effect immediately upon its
adoption and approval, as provided by law.
Passed and approved June 2, 2025.
Attest:
City Clerk
• • Other Business- -
On motion and vote, the meeting adjourned.
Attest:
City Clerk
ayor
-3-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Dubuque / 430411-21 / 2nd Yz Hrg Only Stonnwater Rev (Green Alley)
ATTESTATION CERTIFICATE:
STATE OF IOWA
DUBUQUE COUNTY SS:
CITY OF DUBUQUE
I, the undersigned, City Clerk of the City of Dubuque, do hereby certify that attached hereto
is a true and correct copy of the proceedings of the City Council relating to the hearing on the City
Council's intention to enter into a Stormwater Revenue Loan and Disbursement Agreement in a
principal amount not to exceed $761,000.
WITNESS MY HAND this.? day of a1 t
City Clerk
2025.
-4-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
STATE OF IQWA SS:
DUBUQUE C4UNTY
CERTIFICATE OF PUBLICATION
I, KatlZy Goetzinger, a Billing Clerk Por Woodward
Communieations, Inc., an Iowa corporation, publisher
o€the Telegra�h Herald, a newspaper of general
circulation published in the City of Dubuque, Cotlnty
of Dubuque and State of Iowa; hereby cert�fy that the
attached notice was published in said newspaper on the
followira� dates:
04/25/2025
and foa' w�ich the charge is 38.19
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Subscribed to befo�'e me, a Nota�y Public in and for
Dubttque County, Iowa,
tlzis 25th day of April, 2025
Notary P�E 1' in and for Dubuque C unty, Iowa.
�q��'t�L s� a�A��l Y�.���{�� _��
° �; , r Coinmission Nurni�er 199659
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Page 967 of 2490
Ad text :
NOTICE OF PROPOSED ACTI4N TO INSTITUTE
PROCEEDiNGS TO ENTER iNTO A LOAN AND DISBURSEMENT AGREEMENT
IN A PRINC3PAL AMOUNT NOT TO EXCEED $761,U00
(STORMWA'FER REVENUE)
Tlle City Cotincil af the City of Dubaique, Iows, will meet oi�
June 2, 2025, at 6:30 p.m., at the Historic Federal Buildiiig,
3S0 W. 6th St, Second Floor Council Chambers, for the puG�pase
of instituting proceedings and taking action to enter into a
loan and disburs�ment agreen�ent {the ?Agreentent?} and to
borrow money thereunder in a pY�incipal amaunt not to exceed
$761,000 for the pEupose of paying tlae cost, to that extent,
of constructing a certain water resaurce resto�•ation praject
to the bene�t of the Stormwate�� Management Utility System
{t�le ?Utility?) of the City.
The Agreenlent �vil] not constituCe a general obli�ation of
the City, nor will it be �ayable in any mayuier by taxation,
but to�ether with the Citys outstanding Storaivvater R.eve�iue
Indebtedness and any additional such obligations of the City
as ntay be hereafter issued and outstanding from time to time
ranking on a parity therewith, will be payable solely and oi�ly
from the net revenues of the Utility.
The Agreement 'ss proposed to be entered into pursuant to
authority contained in Sectio�fs 3$424A and 384.84A of the
Code of Iowa. The maximum rate of interest to be paid on the
Agreement is 8% per annum.
The formula by w�licl7 rates are determined far us�rs of the
Utiiiry is set out in the City of Dubuc�ue Code of Oi'dinances
Section 13-4-5. Such rates will be in�reased as necessary 6y
oedinance af the City Co��ncil to make the required payments
undea� the Agreement.
At that tifnc and place, ora] o�� written objections n}ay be
iiled or made to the proposal to entee i�lto the Agreeme�it.
After receivin� objections, tlfe Ciry may determine to enter
into the A�reement, in which case, the decision will be final
unless appealed to the District Court within i'ifteen {15) days
thereafter.
By ocder of tlte City Coun�i] o€tl�e City of DubuqLEe, Ic�wa.
Ada'iesl�ie Breitfelder
City Clerk
1 t 4/25
Page 968 of 2490