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Sales Tax Increment Revenue Bonds (Flood Mitigation Program)_$24M_InitiateMasterpiece on the Mississippi Dubuque ketti 1111-Amedcacnr 11 11 L1 2007 • 2012 • 2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $24,500,000 Sales Tax Increment Revenue Bonds (Flood Mitigation Program) DATE: April 15, 2015 Budget Director Jennifer Larson recommends that a public hearing be set for May 4, 2015, on the proposition of selling not to exceed $24,500,000 in Sales Tax Increment Revenue Bonds (Flood Mitigation Program), the proceeds of which will be used to pay costs of the Bee Branch Watershed Flood Mitigation Project. The revenue bonds are payable from sales tax increment revenue and will have a bond reserve fund to cover the highest year of debt service in the event that the sales tax increment revenues are insufficient to pay principal and interest. The Series 2015A Sales Tax Increment Revenue Bonds are the first of its kind being sold in the Iowa Market. Financing for the project was reviewed by the City's financial advisor, Independent Public Advisors, LLC and the City's Bond Counsel, Ahlers and Cooney. In addition, the bond structure, timing and marketing of the bonds was reviewed by the City's underwriter, R.W. Baird. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Larson, Budget Director Kenneth TeKippe, Finance Director Gus Psihoyos, City Engineer Masterpiece on the Mississippi 2007.2012 • 2013 TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $24,500,000 Sales Tax Increment Revenue Bonds (Flood Mitigation Program) DATE: April 15, 2015 INTRODUCTION The purpose of this memorandum is to recommend the setting of a public hearing on the proposal to issue Sales Tax Increment Revenue Bonds, for the purpose of providing funds to pay costs of carrying out the flood mitigation projects previously approved by the City Council. A letter from attorney Bill Noth detailing information on the bond hearing is enclosed. BACKGROUND The Bee Branch Watershed, which includes the City's most developed areas where over 50% of city residents either live or work, has experienced repeated flooding impacting thousands of properties and over seventy businesses. Six Presidential Disaster Declarations have been issued since 1999 as a result of flood damage to public and private property. In 2012 the State of Iowa Flood Mitigation Program (Program) was created. It established two possible funding sources for flood mitigation projects: a Flood Mitigation Fund and a Sales Tax Increment Fund. To date, no funds have been appropriated for the Flood Mitigation Fund. The Sales Tax Increment Fund is to consist of the increase in the state share of the sales tax revenues from communities with qualifying applications. The maximum state share of sales tax increment that can be diverted from the state and used instead for flood mitigation projects is $30 million per year. The maximum award for any qualifying single community is $15 million per year. To qualify for sales tax increment funding, federal financial assistance must have been secured for the project. A local match is also required and the state sales tax increment cannot exceed 50% of the total project cost. In April of 2013 the State Flood Mitigation Program Board (the Board) was established. And at its third meeting in July of 2013, the Board adopted the administrative rules for the Program. In 2013, the City Council adopted the Drainage Basin Master Plan authored by HDR Engineering that outlines improvements to mitigate flooding. Collectively, the 12 -phase project is referred to as the Bee Branch Watershed Flood Mitigation Project. In November of 2013 the City Council adopted Resolution 336-13 authorizing the City's application to the State for the use of up to $98,494,178.00 in sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project. The City's application included a Project Plan that included information about the various phases of the project, the schedule for construction, and a financing plan. On December 4, 2013, the Iowa Flood Mitigation Board approved the City's application and use of $98,494,178.00 in state sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project. In February of 2014, the City Council adopted Resolution 31-14 authorizing the execution of an agreement with the Iowa Flood Mitigation Board binding the City to the terms of the agreement as required for the City's receipt of up to $98,494,178.00 in state sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project through the State Flood Mitigation Program. The City's application (and associated Project Plan) was established as an integral part of the agreement. On April 13, 2015, the Iowa Flood Mitigation Board approved the City's requested funding agreement amendment to provide an additional $5 million in sales tax increment in Fiscal Years 2014 through 2018 and remove $5 million in sales tax increment from Fiscal Years 2031 through 2033. This request was approved because the City's actual sales tax collection growth in Fiscal Year 2014 was 5.20%, well above the projected growth of 1.97%. As a result, 70% of the actual sales tax increment collected in Fiscal Year 2014 was $882,784. When the actual Fiscal Year 2014 sales tax growth is considered, the ten year historic sales tax growth rate is 2.15%. As a result, the available sales tax increment funding is projected to be more in each subsequent fiscal year than anticipated and what was reflected in the original funding agreement. The following table shows the projected uses of the sales tax increment revenue by the City: Table 1 Bee Branch Watershed Flood Mitigation Estimated Sales Tax Increment Uses U.S. EPA Clean Water SRF loan repayment Sales Tax Increment Bond interest, issuance fees & rese Flood Gate Replacements Lower. Bee. Branch Upper Bee Branch & Culvert Permeable Pavement Alleys„ North End Storm Sewer Improvements 22"a Street Storm Sewer Improvements Flood Control Maintenance Facility Water Plant Flood Control 17th Street Storm Sewer Total Project Funding Source Percent of Total Cost DISCUSSION es reme $24,49f,634 $21,880,000; $2,099,000 y$362,243 $20,680,809 $8,760,492 $1,160,000 $3, 380, 000 $4,360,000 $3,800,000 $7,520,000 $98,494,178 49.02% Through the agreement with the Iowa Flood Mitigation Board, the City will receive up to $98,494,178.00 in sales tax increment revenue over a twenty-year period per the schedule outlined in the City's Project Plan. There is a six month delay from the time sales tax quarterly returns are submitted to the Iowa Department of Revenue and when the sales tax increment is remitted to the City of Dubuque. The first sales tax increment revenue receipt was received on September 2, 2014. Subsequent receipts will be received every three months. 2 The estimated sales tax increment revenue receipts for the City are shown in following table. Table 2 Estimated Sales Tax Increment Revenue Receipts to City of Dubuque 2016 2018 2020 2022 0-23 2024 2025 2026 X202 2028 i mate es Tax Increment venueReceip'- .. 2032 2034 $3,084,781 $4,764,427 $4,801,918 $6,399,662 869,796 $6,956,900 $6,952,300 $6,947494 $6,238,500 ';4q $2,184,888 s1 500yC $715,500 Total $98,494,178 In order to allow for constructing flood mitigation improvements as soon as possible, the Iowa Flood Mitigation Program specifically allowed for communities to issue debt, build the improvements, and abate the debt using the annual sales tax increment payments from the State. This creates the opportunity for cities to sell Sales Tax Increment Revenue Bonds. The City's Project Plan outlines issuing $90 million in debt in order to construct nine of the twelve phases of the Bee Branch Watershed Flood Mitigation Project by 2020 with the debt to be abated primarily with the State Sales Tax Increment Revenue. City Stormwater Management Utility Fees will also be used to retire debt. The project plan does allow the flexibility to adjust the project schedule and the need for debt. Therefore, the City has been working with its bond counsel, financial advisor, and the underwriter for the Sales Tax Increment Revenue Bond to establish the details of the first debt issuances. The first debt issuance for the Bee Branch Watershed Flood Mitigation Project was issued as a Sales Tax Increment Revenue Bond backed by the full faith and credit of the City of Dubuque for $7.2 million on May 19, 2014 (Series 2014A). The second Sales Tax Increment Revenue bond issuance for an estimated $20.4 million will be sold on May 18, 2015 and will be subject to annual appropriation by City Council and will not be backed by the full faith and credit of the City of Dubuque. In addition, a $29 million U.S. EPA Clean Water SRF loan will also be issued with 3 the loan finalized on May 18, 2015. Collectively, the first three debt issuances will provide the necessary funding to complete the Bee Branch Creek Restoration Project and the Flood Mitigation Gate Replacement Project which involves the replacement of the gate structure where the Bee Branch Creek flows into the Peosta Channel. The gate structure works in conjunction with the John C. Culver Floodwall/Levee System that provides the City protection from the Mississippi River when it is above flood stage. Consistent with the Project Plan, the need for additional debt is anticipated in future years. This will likely be a combination of U.S. EPA Clean Water SRF and General Obligation Bonds to be abated with revenue from the Stormwater Management Utility Fee. However, the Project Plan allows the City the ability to reduce the need for future debt should the initial debt financing have lower than anticipated interest costs or project costs come in lower than estimated. The following table shows that the State Sales Tax Increment Revenue will cover the principal and interest payments for the first three debt issuances. Table 3 Estimated Sales Tax Increment Revenues and Anticipated Debt Service Requirements ���y Estimated � / e'' y Sales Tam Fiscal, Increment i-- $20 7M, Years ,Revenue y f Series 2014A� =Seriesj2015A Receip s Debt Service Deft Service lative7 am, $29M / Sales Tax>SalesTax � -.m-:a,,-„i- S ries 20158 In rement Incremen, SRF Loam- Balance after Balance af#er Deb Service Debt Service —Debt Service 2015 $1,784,299 $0 $0 (51,517,265) $267,034 $267,034 2016 $3.084 781 ® y/ $ ; $1 5�7 265 } - �1 56 516 .: $1 834 550 2017 $3,915,672 ($323,100) $0 ($1,517,265) $2,075,307 $3,909,857 2018 7 4,4427 323 00 --$877 9004 507,2 5 $ 046 62 5 956 0 9 2019 $4,764,911 ($323,100) ($877,900) ($1,517,265) 52,046,646 $8,002,665 2020 54,8019 ($ 10, ($ 900) 7 265 2,083 653 „ 10 08 6 318 2021 55,593,037 ($323,100) ($877,900) ($1,517,265) $2,874,772 $12,961,090 �2022o$6399662$323100 �� $877 900 ( ) ,$151 Z 265 z/ ) �� 3,681,397 1.6,642,487 2023 $6,869,796 ($438,100) ($2,512,900) ($1,517,265) $2,401,531 $19,044,018 20241* -$6,956x900 ($1,393,500) x($2,517,500) (51,517,265); l$1,528 635 $20,572,6 2025 $6,956,900 ($1,400,500) ($2,512,250) ($1,517,265) $1,526,885 $22,099,538 2026 ;s $6 952 300 $1 344 250 $2 513 000 �� y.-, ( , ) i . ,y„.,-})� $1 517 265 , , ) ,,_. $'1577,785,- / , $23;677,323. 2027 $6,952,300 ($1,363,000) ($2,514,250) ($1,517,265) $1,557,785 $25,235,108 2028 $6,947494 :-f ($1,365,000),: ($2,5.15,750) (Si Si .., $26,784,587= 2029 $6,713,458 ($1,365,000) ($2,512,250) ($1,517,265) $1,318,943 $28,103,530 2030 $6,238,500 $0 ($2,513,750) ($1,517,265) $2,207,485 $30,311,015 2031 $4,397,435 50 ($2,514,750) ($1,517,265) $365,420 $30,676,435 2032 $2,184,888 .„-- $0 $ON- ($1,517,265). ,-, .- $667,623- $31,344,058, 2033 $1,500,000 $0 $0 ($1,517,265) ($17,265) $31,326,793 2034 $715,500 $0 $0 '($1,517,265) ($801,765) $30,525,028 2035 $0 $0 $0 ($1,517,265) (51,517,265 $29,007,763 2036 $0 0,wr (51,517,265) ($1.517,265) $27,490,498: Total $98,494,178 ($10,607,950) ($27,015,900) ($33,379,830) $27,490,498 *Based on Al pricing provided by R.W. Baird 4 The US EPA SRF loan funding is administered by the Iowa Department of Natural Resources (IDNR) with assistance from the Iowa Finance Authority (IFA). It carries a pre -established, low interest rate and instead of being dispersed all up -front in a lump sum payment, the funds are dispersed as expended. The US EPA SRF loans have an attractive interest rate of 2.00% for a twenty year loan whereas a general obligation bond has an estimated interest rate of approximately 3.50%. The City will issue as much of the necessary debt in the form of the US EPA SRF loans instead of General Obligation Bonds. Not all project elements are eligible for funding through US EPA SRF. The City has instituted six measures to mitigate the risk that actual state sales tax increment revenue is less than estimated. First, the projected state sales tax growth was calculated using historic taxable retail sales for the past ten years provided by the Iowa Department of Revenue. The rate of change each year was calculated, and the ten year average growth rate of 1.97% was then used to project future sales tax increment growth by year. The City's actual sales tax collection growth in Fiscal Year 2014 was 5.20%, well above the projected growth of 1.97%. As a result, 70% of the actual sales tax increment collected in Fiscal Year 2014 was $882,784. When the actual Fiscal Year 2014 sales tax growth is considered, the ten year historic sales tax growth rate is 2.15%. The City was advised that the use of historical sales tax growth average for purposes of projections is a responsible basis for calculating the sales tax increment growth. Second, the City minimized debt service payments until significant sales tax increment revenue is available. The Sales Tax Increment Revenue Bonds issued in Fiscal Year 2014 and 2015 will capitalize interest for the first two years and will have no principal payments until Fiscal Year 2023. The $29 million U.S. EPA SRF loan will have interest and principal payments beginning in Fiscal Year 2015 based on how much has been drawn down from the loan. Third, the Project Plan outlined that some project elements will be done on a pay-as-you-go basis over a 20 -year period to create more flexibility. The plan allows the City to adjust the timing of the Bee Branch Watershed improvements and complete them as funding becomes available. 5 The following table shows the amount of sales tax increment and stormwater user fees committed to pay-as-you-go projects as part of the Bee Branch Watershed project. The Estimated Sales Tax Increment after Debt Service column (column 2) is the same as the Sales Tax Increment Balance after Debt Service (column 6) in Table 3. Table 4 Estimated Funding Available for Debt and Capital Improvements imate e remen_ ormwater,������� tihal $$ � Cumulative $$ AVaila apita Projects $267,034 $3,932,607 $622908 $8,584,703 $10,704,01 f $13,989,933 18,216,454 $436,884$2,838,415 $21,054,869 Dmmitted to lee Branch ' 'ersher' 2015 $267,034 'O1 %$15 2017 $2,075,307 2018 2019 X020 2021 $2,046,646 $2083;653 $2,874,772 2023 $2,401,531 2025 2027 2029 2031 0 0 $14, 700 1�94 $365,149 rai[able a rolest: $267,034 $1 ,5 $2,090,007 9 $2 240?30 $2,411,795 $2 $411,145 $545,124 $3,285,917 $1,526,885 $1,557,785 $i,318,943 $2,202 485 $365,420 2033 x;$17,265 $603,612 $1,168,751 $1,234,024 $997,$37 $1,150,079 $1,184,946 9, 74 $2,726,536 $2,552,967 $3,20 x32 $1,515,499 $2,080,3? $1,167,681 $25,357,108 854 $30,773,390 293 $35,770,260 $40,491,081 $43,739,095 44 $42,873,763 $41 356.498 2035 ($1,517,265) Total ($1,517,265) $27,490,498 $13,866,000 $41,356,498 Fourth, there will be additional Stormwater Management Utility Fee Revenue, not specifically identified for the Bee Branch Watershed Flood Mitigation Project, which could be used to make debt payments. This would involve delaying or canceling other Stormwater Management capital projects that would not be both time sensitive and critical in nature. 6 The following table shows the additional funding that would become available if other capital projects are delayed or canceled due to actual project costs higher than projected or sales tax increment revenue is lower than projected. The Funding Committed to Bee Branch Watershed Available for Debt Service column (column 2) is the same as the Total $$ Available for Capital Projects column (column 4) in Table 4. Table 5 Cumulative Sales Tax Increment Revenue & Stormwater Utility Fee Revenue Available for Debt Service ndi Conmmitte aters 44.44,44 n Bee Bran itershed Capit. o�ects Funde, tormwa 2017 2019 2021 2023 2025 X202 2027 2029 2031 2033 2031 Total $2,090,007 $2,411,795 $3,285,917 -"$4 226, 521 $2,838,415 $2,130,497 $2,726,536 0 Yy ��� $2,552,967 $3,205,322 $1,515,499 s, $2,080,333 $1,167,681 $651,933 ($1,517,265) ($1,517,265) $41,356,498 $923,251 $1 234,199 $1,136,958 $188, 827 i1,184,836 $1,052,660 $1,093,081 $1,199,454 00-00 l 01010 $1,089,779 $1,139,350 ;11c- 111- 100 $1,179,923 „mow; $7,227,015 $14,252,774 •17 $21,787,264 $30,938,457 $37,468,867 $45,048,261 %moi-� �� C $48,697, $52,389,693 , SFS P2T 427: $59,616,849 ,304„ ,$62,905,486 $1,325,030 2 0 $1,457,280 $1,278,530 $25,651,984 $65,398,197 $67,307202 $67,247,217 $67,008,482 0.040000 Fifth, instead of issuing the $27.7 million Sales Tax Revenue Bond in one bond issuance as originally planned, the City is issuing two separate Sales Tax Increment Revenue Bond issuances. The first $7.2 million Sales Tax Increment Revenue Bond was sold in May 2014. The second $20.5 million Sales Tax Increment Revenue Bond will be issued May 18, 2015. Sixth, the first $7.2 million Series 2014A Sales Tax Increment Revenue Bonds are payable from sales tax increment revenue and backed by the full faith and credit of the City. In the event that the Sales Tax Increment Revenues are insufficient to pay principal and interest, the City has the ability to use property tax to make future debt payments; however the previous five risk mitigation factors would significantly reduce the likelihood of property tax dollars ever being used to pay the debt payments on the sales tax increment debt. In addition, the second $20.5 7 million Series 2015A Sales Tax Increment Revenue bonds are payable from sales tax increment revenue and will have a bond reserve fund to cover the highest year of debt service in the event that the Sales Tax Increment Revenues are insufficient to pay principal and interest. The Series 2015A Sales Tax Increment Revenue Bonds are the first of its kind being sold in the Iowa Market. Financing for the project was reviewed by the City's financial advisor, Independent Public Advisors, LLC and the City's Bond Counsel, Ahlers and Cooney. In addition, the bond structure, timing and marketing of the bonds was reviewed by the City's underwriter, R.W. Baird. RECOMMENDATION I respectfully recommend the adoption of the enclosed resolution fixing the date of May 4, 2015 for a public hearing on the proposition of selling not to exceed $24,500,000 Sales Tax Increment Revenue Bonds (Flood Mitigation Program) and providing publication of notice. JML Attachments cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Ken TeKipper, Finance Director Gus Psihoyos, City Engineer 8 Copyright 2014 City of Dubuque Items to be set for Public Hearing # 6. ITEM TITLE: Sales Tax Increment Revenue Bonds (Flood Mitigation Program) SUMMARY: City Manager recommending that a public hearing be set for May 4, 2015, on the proposition of selling not to exceed $24,500,000 in Sales Tax Increment Revenue Bonds (Flood Mitigation Program), the proceeds of which will be used to pay costs of the Bee Branch Watershed Flood Mitigation Project. RESOLUTION Fixing date for a meeting on the proposition of the issuance of not to exceed $24,500,000 Sales Tax Increment Revenue Bonds of Dubuque, Iowa, and providing for publication of notice thereof SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public Hearing for 5/4/14 ATTACHMENTS: Description Type ❑ MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Notice of Public Hearing Supporting Documentation ❑ Resolution to Set Public Hearing Resolutions ❑ Bond Counsel Letter Supporting Documentation THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $24,500,000 Sales Tax Increment Revenue Bonds (Flood Mitigation Program) DATE: April 15, 2015 Budget Director Jennifer Larson recommends that a public hearing be set for May 4, 2015, on the proposition of selling not to exceed $24,500,000 in Sales Tax Increment Revenue Bonds (Flood Mitigation Program), the proceeds of which will be used to pay costs of the Bee Branch Watershed Flood Mitigation Project. The revenue bonds are payable from sales tax increment revenue and will have a bond reserve fund to cover the highest year of debt service in the event that the sales tax increment revenues are insufficient to pay principal and interest. The Series 2015A Sales Tax Increment Revenue Bonds are the first of its kind being sold in the Iowa Market. Financing for the project was reviewed by the City's financial advisor, Independent Public Advisors, LLC and the City's Bond Counsel, Ahlers and Cooney. In addition, the bond structure, timing and marketing of the bonds was reviewed by the City's underwriter, R.W. Baird. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Larson, Budget Director Kenneth TeKippe, Finance Director Gus Psihoyos, City Engineer THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $24,500,000 Sales Tax Increment Revenue Bonds (Flood Mitigation Program) DATE: April 15, 2015 INTRODUCTION The purpose of this memorandum is to recommend the setting of a public hearing on the proposal to issue Sales Tax Increment Revenue Bonds, for the purpose of providing funds to pay costs of carrying out the flood mitigation projects previously approved by the City Council. A letter from attorney Bill Noth detailing information on the bond hearing is enclosed. BACKGROUND The Bee Branch Watershed, which includes the City's most developed areas where over 50% of city residents either live or work, has experienced repeated flooding impacting thousands of properties and over seventy businesses. Six Presidential Disaster Declarations have been issued since 1999 as a result of flood damage to public and private property. In 2012 the State of Iowa Flood Mitigation Program (Program) was created. It established two possible funding sources for flood mitigation projects: a Flood Mitigation Fund and a Sales Tax Increment Fund. To date, no funds have been appropriated for the Flood Mitigation Fund. The Sales Tax Increment Fund is to consist of the increase in the state share of the sales tax revenues from communities with qualifying applications. The maximum state share of sales tax increment that can be diverted from the state and used instead for flood mitigation projects is $30 million per year. The maximum award for any qualifying single community is $15 million per year. To qualify for sales tax increment funding, federal financial assistance must have been secured for the project. A local match is also required and the state sales tax increment cannot exceed 50% of the total project cost. In April of 2013 the State Flood Mitigation Program Board (the Board) was established. And at its third meeting in July of 2013, the Board adopted the administrative rules for the Program. In 2013, the City Council adopted the Drainage Basin Master Plan authored by HDR Engineering that outlines improvements to mitigate flooding. Collectively, the 12-phase project is referred to as the Bee Branch Watershed Flood Mitigation Project. In November of 2013 the City Council adopted Resolution 336-13 authorizing the City's application to the State for the use of up to $98,494,178.00 in sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project. The City's application included a Project Plan that included information about the various phases of the project, the schedule for construction, and a financing plan. On December 4, 2013, the Iowa Flood Mitigation Board approved the City's application and use of$98,494,178.00 in state sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project. In February of 2014, the City Council adopted Resolution 31-14 authorizing the execution of an agreement with the Iowa Flood Mitigation Board binding the City to the terms of the agreement as required for the City's receipt of up to $98,494,178.00 in state sales tax increment funds for the Bee Branch Watershed Flood Mitigation Project through the State Flood Mitigation Program. The City's application (and associated Project Plan) was established as an integral part of the agreement. On April 13, 2015, the Iowa Flood Mitigation Board approved the City's requested funding agreement amendment to provide an additional $5 million in sales tax increment in Fiscal Years 2014 through 2018 and remove $5 million in sales tax increment from Fiscal Years 2031 through 2033. This request was approved because the City's actual sales tax collection growth in Fiscal Year 2014 was 5.20%, well above the projected growth of 1.97%. As a result, 70% of the actual sales tax increment collected in Fiscal Year 2014 was $882,784. When the actual Fiscal Year 2014 sales tax growth is considered, the ten year historic sales tax growth rate is 2.15%. As a result, the available sales tax increment funding is projected to be more in each subsequent fiscal year than anticipated and what was reflected in the original funding agreement. The following table shows the projected uses of the sales tax increment revenue by the City: Table 1 Bee Branch Watershed Flood Mitigation Estimated Sales Tax Increment Uses Estimated Sales Tax Project Funding Source Increment U.S. EPA Clean Water SRF loan repayment $24,491,634 Sales Tax Increment Bond interest, issuance fees & reserve $21,880,000 Flood Gate Replacements $2,099,000 Lower Bee Branch $362,243 Upper Bee Branch & Culvert $20,680,809 Permeable Pavement Alleys $8,760,492 North End Storm Sewer Improvements $1,160,000 22"' Street Storm Sewer Improvements $3,380,000 Flood Control Maintenance Facility $4,360,000 Water Plant Flood Control $3,800,000 17`h Street Storm Sewer $7,520,000 Total Project Funding Source $98,494,178 Percent of Total Cost 49.02% DISCUSSION Through the agreement with the Iowa Flood Mitigation Board, the City will receive up to $98,494,178.00 in sales tax increment revenue over a twenty-year period per the schedule outlined in the City's Project Plan. There is a six month delay from the time sales tax quarterly returns are submitted to the Iowa Department of Revenue and when the sales tax increment is remitted to the City of Dubuque. The first sales tax increment revenue receipt was received on September 2, 2014. Subsequent receipts will be received every three months. 2 The estimated sales tax increment revenue receipts for the City are shown in following table. Table 2 Estimated Sales Tax Increment Revenue Receipts to City of Dubuque Estimated Fiscal Year Sales Tax Increment Revenue Receipts 2015 $1,784,299 2016 $3,084,781 2017 $3,915,672 2018 $4,764,427 2019 $4,764,911 2020 $4,801,918 2021 $5,593,037 2022 $6,399,662 2023 $6,869,796 2024 $6,956,900 2025 $6,956,900 2026 $6,952,300 2027 $6,952,300 2028 $6,947494 2029 $6,713,458 2030 $6,238,500 2031 $4,397,435 2032 $2,184,888 2033 $1,500,000 2034 $715,500 Total $98,494,178 In order to allow for constructing flood mitigation improvements as soon as possible, the Iowa Flood Mitigation Program specifically allowed for communities to issue debt, build the improvements, and abate the debt using the annual sales tax increment payments from the State. This creates the opportunity for cities to sell Sales Tax Increment Revenue Bonds. The City's Project Plan outlines issuing $90 million in debt in order to construct nine of the twelve phases of the Bee Branch Watershed Flood Mitigation Project by 2020 with the debt to be abated primarily with the State Sales Tax Increment Revenue. City Stormwater Management Utility Fees will also be used to retire debt. The project plan does allow the flexibility to adjust the project schedule and the need for debt. Therefore, the City has been working with its bond counsel, financial advisor, and the underwriter for the Sales Tax Increment Revenue Bond to establish the details of the first debt issuances. The first debt issuance for the Bee Branch Watershed Flood Mitigation Project was issued as a Sales Tax Increment Revenue Bond backed by the full faith and credit of the City of Dubuque for$7.2 million on May 19, 2014 (Series 2014A). The second Sales Tax Increment Revenue bond issuance for an estimated $20.4 million will be sold on May 18, 2015 and will be subject to annual appropriation by City Council and will not be backed by the full faith and credit of the City of Dubuque. In addition, a $29 million U.S. EPA Clean Water SRF loan will also be issued with 3 the loan finalized on May 18, 2015. Collectively, the first three debt issuances will provide the necessary funding to complete the Bee Branch Creek Restoration Project and the Flood Mitigation Gate Replacement Project which involves the replacement of the gate structure where the Bee Branch Creek flows into the Peosta Channel. The gate structure works in conjunction with the John C. Culver Floodwall/Levee System that provides the City protection from the Mississippi River when it is above flood stage. Consistent with the Project Plan, the need for additional debt is anticipated in future years. This will likely be a combination of U.S. EPA Clean Water SRF and General Obligation Bonds to be abated with revenue from the Stormwater Management Utility Fee. However, the Project Plan allows the City the ability to reduce the need for future debt should the initial debt financing have lower than anticipated interest costs or project costs come in lower than estimated. The following table shows that the State Sales Tax Increment Revenue will cover the principal and interest payments for the first three debt issuances. Table 3 Estimated Sales Tax Increment Revenues and Anticipated Debt Service Requirements Estimated Cumulative Sales Tax $29M Sales Tax Sales Tax Fiscal Increment $7.2M $20.7M* Series 2015B Increment Increment Year Revenue Series 2014A Series 2015A SRF Loan Balance after Balance after Receipts Debt Service Debt Service Debt Service Debt Service Debt Service 2015 $1,784,299 $0 $0 ($1,517,265) $267,034 $267,034 2016 $3,084,781 $0 $0 ($1,517,265) $1,567,516 $1,834,550 2017 $3,915,672 ($323,100) $0 ($1,517,265) $2,075,307 $3,909,857 2018 $4,764,427 ($323,100) ($877,900) ($1,517,265) $2,046,162 $5,956,019 2019 $4,764,911 ($323,100) ($877,900) ($1,517,265) $2,046,646 $8,002,665 2020 $4,801,918 ($323,100) ($877,900) ($1,517,265) $2,083,653 $10,086,318 2021 $5,593,037 ($323,100) ($877,900) ($1,517,265) $2,874,772 $12,961,090 2022 $6,399,662 ($323,100) ($877,900) ($1,517,265) $3,681,397 $16,642,487 2023 $6,869,796 ($438,100) ($2,512,900) ($1,517,265) $2,401,531 $19,044,018 2024 $6,956,900 ($1,393,500) ($2,517,500) ($1,517,265) $1,528,635 $20,572,653 2025 $6,956,900 ($1,400,500) ($2,512,250) ($1,517,265) $1,526,885 $22,099,538 2026 $6,952,300 ($1,344,250) ($2,513,000) ($1,517,265) $1,577,785 $23,677,323 2027 $6,952,300 ($1,363,000) ($2,514,250) ($1,517,265) $1,557,785 $25,235,108 2028 $6,947494 ($1,365,000) ($2,515,750) ($1,517,265) $1,549,479 $26,784,587 2029 $6,713,458 ($1,365,000) ($2,512,250) ($1,517,265) $1,318,943 $28,103,530 2030 $6,238,500 $0 ($2,513,750) ($1,517,265) $2,207,485 $30,311,015 2031 $4,397,435 $0 ($2,514,750) ($1,517,265) $365,420 $30,676,435 2032 $2,184,888 $0 $0 ($1,517,265) $667,623 $31,344,058 2033 $1,500,000 $0 $0 ($1,517,265) ($17,265) $31,326,793 2034 $715,500 $0 $0 ($1,517,265) ($801,765) $30,525,028 2035 $0 $0 $0 ($1,517,265) ($1,517,265) $29,007,763 2036 $0 $0 $0 ($1,517,265) ($1,517,265) $27,490,498 Total $98,494,178 ($10,607,950) ($27,015,900) ($33,379,830) $27,490,498 *Based on Al pricing provided by R.W. Baird 4 The US EPA SRF loan funding is administered by the Iowa Department of Natural Resources (IDNR) with assistance from the Iowa Finance Authority (IFA). It carries a pre-established, low interest rate and instead of being dispersed all up-front in a lump sum payment, the funds are dispersed as expended. The US EPA SRF loans have an attractive interest rate of 2.00% for a twenty year loan whereas a general obligation bond has an estimated interest rate of approximately 3.50%. The City will issue as much of the necessary debt in the form of the US EPA SRF loans instead of General Obligation Bonds. Not all project elements are eligible for funding through US EPA SRF. The City has instituted six measures to mitigate the risk that actual state sales tax increment revenue is less than estimated. First, the projected state sales tax growth was calculated using historic taxable retail sales for the past ten years provided by the Iowa Department of Revenue. The rate of change each year was calculated, and the ten year average growth rate of 1.97%was then used to project future sales tax increment growth by year. The City's actual sales tax collection growth in Fiscal Year 2014 was 5.20%, well above the projected growth of 1.97%. As a result, 70% of the actual sales tax increment collected in Fiscal Year 2014 was $882,784. When the actual Fiscal Year 2014 sales tax growth is considered, the ten year historic sales tax growth rate is 2.15%. The City was advised that the use of historical sales tax growth average for purposes of projections is a responsible basis for calculating the sales tax increment growth. Second, the City minimized debt service payments until significant sales tax increment revenue is available. The Sales Tax Increment Revenue Bonds issued in Fiscal Year 2014 and 2015 will capitalize interest for the first two years and will have no principal payments until Fiscal Year 2023. The $29 million U.S. EPA SRF loan will have interest and principal payments beginning in Fiscal Year 2015 based on how much has been drawn down from the loan. Third, the Project Plan outlined that some project elements will be done on a pay-as-you-go basis over a 20-year period to create more flexibility. The plan allows the City to adjust the timing of the Bee Branch Watershed improvements and complete them as funding becomes available. 5 The following table shows the amount of sales tax increment and stormwater user fees committed to pay-as-you-go projects as part of the Bee Branch Watershed project. The Estimated Sales Tax Increment after Debt Service column (column 2) is the same as the Sales Tax Increment Balance after Debt Service (column 6) in Table 3. Table 4 Estimated Funding Available for Debt and Capital Improvements Estimated Stormwater Sales Tax Utility Total $$ Cumulative Increment Committed to Available for Total $$ Available Fiscal After Debt Bee Branch Capital for Capital Year Service Watershed Projects Projects 2015 $267,034 $0 $267,034 $267,034 2016 $1,567,516 $8,050 $1,575,566 $1,842,600 2017 $2,075,307 $14,700 $2,090,007 $3,932,607 2018 $2,046,162 $194,139 $2,240,301 $6,172,908 2019 $2,046,646 $365,149 $2,411,795 $8,584,703 2020 $2,083,653 $35,660 $2,119,313 $10,704,016 2021 $2,874,772 $411,145 $3,285,917 $13,989,933 2022 $3,681,397 $545,124 $4,226,521 $18,216,454 2023 $2,401,531 $436,884 $2,838,415 $21,054,869 2024 $1,528,635 $643,107 $2,171,742 $23,226,611 2025 $1,526,885 $603,612 $2,130,497 $25,357,108 2026 $1,577,785 $1,111,961 $2,689,746 $28,046,854 2027 $1,557,785 $1,168,751 $2,726,536 $30,773,390 2028 $1,549,479 $894,424 $2,443,903 $33,217,293 2029 $1,318,943 $1,234,024 $2,552,967 $35,770,260 2030 $2,207,485 $997,837 $3,205,322 $38,975,582 2031 $365,420 $1,150,079 $1,515,499 $40,491,081 2032 $667,623 $1,412,710 $2,080,333 $42,571,414 2033 ($17,265) $1,184,946 $1,167,681 $43,739,095 2034 ($801,765) $1,453,698 $651,933 $44,391,028 2035 ($1,517,265) $0 ($1,517,265) $42,873,763 2036 ($1,517,265) $0 ($1,517,265) $41,356,498 Total $27,490,498 $13,866,000 $41,356,498 Fourth, there will be additional Stormwater Management Utility Fee Revenue, not specifically identified for the Bee Branch Watershed Flood Mitigation Project, which could be used to make debt payments. This would involve delaying or canceling other Stormwater Management capital projects that would not be both time sensitive and critical in nature. 6 The following table shows the additional funding that would become available if other capital projects are delayed or canceled due to actual project costs higher than projected or sales tax increment revenue is lower than projected. The Funding Committed to Bee Branch Watershed Available for Debt Service column (column 2) is the same as the Total $$Available for Capital Projects column (column 4) in Table 4. Table 5 Cumulative Sales Tax Increment Revenue & Stormwater Utility Fee Revenue Available for Debt Service Funding Committed to Non-Bee Branch Bee Branch Watershed Watershed Capital Cumulative $ Fiscal Available for Debt Projects Funded By Available for Debt Year Service Stormwater Service 2015 $267,034 $923,251 $1,190,285 2016 $1,575,566 $1,234,199 $4,000,050 2017 $2,090,007 $1,136,958 $7,227,015 2018 $2,240,301 $1,188,827 $10,656,143 2019 $2,411,795 $1,184,836 $14,252,774 2020 $2,119,313 $1,076,600 $17,448,687 2021 $3,285,917 $1,052,660 $21,787,264 2022 $4,226,521 $993,176 $27,006,961 2023 $2,838,415 $1,093,081 $30,938,457 2024 $2,171,742 $1,028,717 $34,138,916 2025 $2,130,497 $1,199,454 $37,468,867 2026 $2,689,746 $1,073,333 $41,231,946 2027 $2,726,536 $1,089,779 $45,048,261 2028 $2,443,903 $1,205,212 $48,697,376 2029 $2,552,967 $1,139,350 $52,389,693 2030 $3,205,322 $1,326,412 $56,921,427 2031 $1,515,499 $1,179,923 $59,616,849 2032 $2,080,333 $1,208,304 $62,905,486 2033 $1,167,681 $1,325,030 $65,398,197 2034 $651,933 $1,257,072 $67,307,202 2035 ($1,517,265) $1,457,280 $67,247,217 2036 ($1,517,265) $1,278,530 $67,008,482 Total $41,356,498 $25,651,984 Fifth, instead of issuing the $27.7 million Sales Tax Revenue Bond in one bond issuance as originally planned, the City is issuing two separate Sales Tax Increment Revenue Bond issuances. The first $7.2 million Sales Tax Increment Revenue Bond was sold in May 2014. The second $20.5 million Sales Tax Increment Revenue Bond will be issued May 18, 2015. Sixth, the first $7.2 million Series 2014A Sales Tax Increment Revenue Bonds are payable from sales tax increment revenue and backed by the full faith and credit of the City. In the event that the Sales Tax Increment Revenues are insufficient to pay principal and interest, the City has the ability to use property tax to make future debt payments; however the previous five risk mitigation factors would significantly reduce the likelihood of property tax dollars ever being used to pay the debt payments on the sales tax increment debt. In addition, the second $20.5 7 million Series 2015A Sales Tax Increment Revenue bonds are payable from sales tax increment revenue and will have a bond reserve fund to cover the highest year of debt service in the event that the Sales Tax Increment Revenues are insufficient to pay principal and interest. The Series 2015A Sales Tax Increment Revenue Bonds are the first of its kind being sold in the Iowa Market. Financing for the project was reviewed by the City's financial advisor, Independent Public Advisors, LLC and the City's Bond Counsel, Ahlers and Cooney. In addition, the bond structure, timing and marketing of the bonds was reviewed by the City's underwriter, R.W. Baird. RECOMMENDATION I respectfully recommend the adoption of the enclosed resolution fixing the date of May 4, 2015 for a public hearing on the proposition of selling not to exceed $24,500,000 Sales Tax Increment Revenue Bonds (Flood Mitigation Program) and providing publication of notice. JML Attachments cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Ken Te Kipper, Finance Director Gus Psihoyos, City Engineer 8 AHLERS COONEY, P.C. 100 COURT AVENUE, SUITE 600 DES MOINES, IOWA 50309-2231 PHONE: 515-243-7611 FAX: 515-243-2149 WWW.AHLERSLAW.COM William J. Noth wnoth@ahlerslaw.com March 9, 201.5 Ms. Jenny Larson Budget Director City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 RE: Not to exceed S24,500,000 Sales Tax Increment Revenue Bonds (Flood Mitigation Program) Dear Ms. Larson: Direct Dial: (515)2.46-0332 We have now prepared and are enclosing herewith suggested proceedings to be acted upon by the Council in fixing the date of a meeting on the proposition to issue the above mentioned Bonds and ordering publication of a notice of hearing consistent with the provisions of Code Sections 418.14 and 384.83. Notice of this meeting must be published at least once in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in the City. The date of publication is to be not less than four clear days nor more than twenty days before the date of said public meeting on the issuance of the Bonds. In computing time, the date of publication should be excluded. If the last day falls on Sunday, the whole of the following Monday should be excluded. Also enclosed is an extra copy of the proceedings to be filled in as the original and certified back to this office, together with publisher's affidavit of publication of notice of hearing. We are also enclosing an extra copy of the notice of hearing to be delivered to the newspaper for publication purposes. A certificate to attest the proceedings is also enclosed. March 9, 2015 Page 2 Should you have any questions pertaining to these proceedings, please don't hesitate to contact me. Very truly yours, William J. Noth WJN:de Encl. cc: Barry Lindahl (w/encl.) Ken TeKippe (w/encl.) 01091355-1\10422-1.62 (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of Dubuque, Iowa. Date of Meeting: April 20 , 2015. Time of Meeting: 6:30 o'clock _R.M. Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for said meeting is as follows: Not to exceed $24,500,000 Sales Tax Increment Revenue Bonds (Flood Mitigation Program) • Resolution fixing date for a meeting on the proposition to issue. Such additional matters as are set forth on the additional 5 page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of said governmental body. City er , Dubuque, Io April 20, 2015 The City Council of the City of Dubuque, State of Iowa, met in regular session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at6:30 P.M., on the above date. There were present Mayor Pro Tem Karla Braig, in the chair, and the following named Council Members: David Resnick, Kevin Lynch, Roy Buol (via phone), Karla Braig, Joyce Connors, Lynn Sutton, Ric Jones Absent: 1 Council Member Lynch introduced the following Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $24,500,000 SALES TAX INCREMENT REVENUE BONDS OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that the same be adopted. Council Member Jones seconded the motion to adopt. The roll was called and the vote was, AYES: David Resnick, Kevin Lynch, Roy Buol, Karla Braig Joyce Connors, Lynn Sutton, Ric Jones NAYS: Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 134-15 RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $24,500,000 SALES TAX INCREMENT REVENUE BONDS OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa should issue Sales Tax Increment Revenue Bonds to the amount of not to exceed $24,500,000, as authorized by Section 418.14 of the Code of Iowa, for the purpose of providing funds to pay costs of carrying out the flood mitigation projects as hereinafter described; and WHEREAS, Section 418.14 provides that the City Council shall follow the bond authorization procedures set forth in Section 384.83 before issuing Sales Tax Increment Revenue Bonds under that Section, and it is therefore necessary that the action hereinafter described be taken and that the Clerk publish a notice of the proposal and of the time and place of the meeting at which the Council proposes to take action thereon and to receive oral and/or written objections from any resident or property owner of said City to such action. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 2 Section 1. This Council shall meet in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the 4th day of May, 2015, for the purpose of taking action on the matter of the issuance of not to exceed $24,500,000 Sales Tax Increment Revenue Bonds, the proceeds of which will be used to provide funds to pay costs of the acquisition, construction, installation and equipping of the Bee Branch Watershed Flood Mitigation Project, including those costs associated with the Lower Bee Branch Creek Restoration (Phase 4), the Upper Bee Branch Creek Restoration (Phase 7), the Flood Mitigation Gate Replacement (Phase 5), the Flood Control Maintenance Facility (Phase 9), and the North End Storm Sewers (Phase 10), the funding of a debt service reserve for the Bonds, and the related costs for property acquisition, engineering and design and other professional services. Said Bonds shall be payable from the City's flood project fund established under Iowa Code Section 418.12, into which there shall be deposited sales tax increment revenues received from the State of Iowa as part of the award to the City under the Flood Mitigation Program, and to the extent necessary and provided for in the resolution authorizing issuance of said Bonds, funds collected by the City from a supplemental levy of debt service taxes. Section 2. The Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than four clear days nor more than twenty days before the date of said public meeting on the issuance of said obligations. Section 3. The notice of the proposed action to issue said Sales Tax Increment Revenue Bonds shall be in substantially the following form: 3 NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $24,500,000 SALES TAX INCREMENT REVENUE BONDS OF SAID CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa, will hold a public hearing on the day of , 2015, at o'clock .M., in the Historic Federal Building, 350 West bth Street, Dubuque, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $24,500,000 Sales Tax Increment Revenue Bonds, in order to provide funds to pay costs of the acquisition, construction, installation and equipping of the Bee Branch Watershed Flood Mitigation Project, including those costs associated with the Lower Bee Branch Creek Restoration (Phase 4), the Upper Bee Branch Creek Restoration (Phase 7), the Flood Mitigation Gate Replacement (Phase 5), the Flood Control Maintenance Facility (Phase 9), and the North End Storm Sewers (Phase 10), and the related costs for property acquisition, engineering and design and other professional services. Said Bonds shall be payable from the City's flood project fund established under Iowa Code Section 418.12, into which there shall be deposited sales tax increment revenues received from the State of Iowa as part of the award to the City under the Flood Mitigation Program, and to the extent necessary and provided for in the resolution authorizing issuance of said Bonds, funds collected by the City from a supplemental levy of debt service taxes. At the above meeting the Council shall receive oral or written objections from any resident or property owner of said City to the above action. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the issuance of said Sales Tax Increment Revenue Bonds or will abandon the proposal to issue said Bonds. The hearing and appeals therefrom shall be held in accordance with and governed by the provisions of Section 384.83 of the Code of Iowa. This notice is given by order of the Council of Dubuque, Iowa, as provided by Sections 418.14 and 384.83 of the Code of Iowa. Dated this day of , 2015. City Clerk of Dubuque, Iowa (End of Notice) 4 PASSED AND APPROVED this 20th day of April, 2015. ATTEST: Karla A. Braig, Mayor Pro 5 NEWSPAPER'S COPY NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $24,500,000 SALES TAX INCREMENT REVENUE BONDS OF SAID CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa, will hold a public hearing on the day of , 2015, at o'clock .M., in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $24,500,000 Sales Tax Increment Revenue Bonds, in order to provide funds to pay costs of the acquisition, construction, installation and equipping of the Bee Branch Watershed Flood Mitigation Project, including those costs associated with the Lower Bee Branch Creek Restoration (Phase 4), the Upper Bee Branch Creek Restoration (Phase 7), the Flood Mitigation Gate Replacement (Phase 5), the Flood Control Maintenance Facility (Phase 9), and the North End Storm Sewers (Phase 10), and the related costs for property acquisition, engineering and design and other professional services. Said Bonds shall be payable from the City's flood project fund established under Iowa Code Section 418.12, into which there shall be deposited sales tax increment revenues received from the State of Iowa as part of the award to the. City under the Flood Mitigation Program, and to the extent necessary and provided for in the resolution authorizing issuance of said Bonds, funds collected by the City from a supplemental levy of debt service taxes. At the above meeting the Council shall receive oral or written objections from any resident or property owner of said City to the above action. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the issuance of said Sales Tax Increment Revenue Bonds or will abandon the proposal to issue said Bonds. The hearing and appeals therefrom shall be held in accordance with and governed by the provisions of Section 384.83 of the Code of Iowa. This notice is given by order of the Council of Dubuque, Iowa, as provided by Sections 418.14 and 384.83 of the Code of Iowa. Dated this day of , 2015. City Clerk of Dubuque, Iowa (End of Notice) 4 CITY OF DUBUQUE, IOWA OFFICIAL NOTICE NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $24,500,000 SALES TAX INCREMENT REVENUE BONDS OF SAID CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa, will hold a public hearing on the 4th day of May 2015, at 6:30 o'clock P.M., in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $24,500,000 Sales Tax Increment Revenue Bonds, in order to provide funds to pay costs of the acquisition, construction, installation and equipping of the Bee Branch Watershed Flood Mitigation Project, including those costs associated with the Lower Bee Branch Creek Restoration (Phase 4), the Upper Bee Branch Creek Restoration (Phase 7), the Flood Mitigation Gate Replacement (Phase 5), the Flood Control Maintenance Facility (Phase 9), and the North End Storm Sewers (Phase 10), the funding of a debt service reserve for the Bonds, and the related costs for property acquisition, engineering and design and other professional services. Said Bonds shall be payable from the City's flood project fund established under Iowa Code Section 418.12, into which there shall be deposited sales tax increment revenues received from the State of Iowa as part of the award to the City under the Flood Mitigation Program, and to the extent necessary and provided for in the resolution authorizing issuance of said Bonds, funds collected by the City from a supplemental levy of debt service taxes. At the above meeting the Council shall receive oral or written objections from any resident or property owner of said City to the above action. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the issuance of said Sales Tax Increment Revenue Bonds or will abandon the proposal to issue said Bonds. The hearing and appeals therefrom shall be held in accordance with and governed by the provisions of Section 384.83 of the Code of Iowa. This notice is given by order of the Council of Dubuque, Iowa, as provided by Sections 418.14 and 384.83 of the Code of Iowa. Dated this 24th day of April, 2015. Kevin S. Firnstahl City Clerk of Dubuque, Iowa 1t 4/24 CERTIFICATE STATE OF IOWA ) SS COUNTY OF DUBUQUE I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of public hearing and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the Council hereto affixe. t" 2211d day of April, 2015. (SEAL) // ,0102. City Clerk(City of Du o' que, State of Iowa CERTIFICATE STATE OF IOWA ) SS COUNTY OF DUBUQUE I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of the City, I have caused a NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $24,500,000 SALES TAX INCREMENT REVENUE BONDS OF SAID CITY, AND THE HEARING ON THE ISSUANCE THEREOF of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures a correct and complete copy, to be published as required by law in the Telegraph Herald, a legal newspaper published at least once weekly, printed wholly in the English language, published regularly and mailed through the post office of current entry for more than two years and which has had for more than two years a bona fide paid circulation recognized by the postal laws of the United States, and has a general circulation in the City, and that the Notice was published in all of the issues thereof published and circulated on the following date: April 24 ,2015 WITNESS my official signature at Dubuque, Iowa, this 27th day of April , 2015. (SEAL) 01091356-I\10422462 44 City C erk, City of Dubuque, Iowa STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, 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: April 24, 2015, and for which the charge is $35.38. PL -1, Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this day of ' , 20 /3 Notary Public in and for Dubuque County, Iowa. A @CtV STERP,rEYb&e Commission Number 154885 My COMM. Exo, FEB, 1, 2017 other professional ser- CITY OF DUBUQUE, IOWA OFFICIAL NOTICE - I NOTICE OF MEETING OF THE COUNCIL OF THE CITY. `OF'DUBU- QUE, IOWA, SON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $24,500,000 SALES TAX INCREMENT REVENUE BONDS OF SAID CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, ,' Iowa, will hold a public hearing on the. 4th day of May 2015, at 6:30 o'clock P.M., in the Historic Federal 'Building, 350 West 6th Street, Dubu- que, Iowa, at which meeting . the Council proposes to take additional action for the issuance of not to exceed $24,500,000 Sales Tax Increment Revenue Bonds, in order to provide funds to pay costs of. the I acquisition, construc- tion, installation and equipping of the Bee Branch Watershed Flood Mitigation Pro- ject, including those costs associated with the Lower Bee Branch Creek Restoration (Phase 4), the Upper Bee Branch Creek Restoration (Phase 7), the Flood Mitigation Gate Replacement (Phase 5), the Flood Control Maintenance Facility (Phase 9), and the North End Storm Sewers (Phase 10), the funding of a debt service reserve for the Bonds, and the related costs for property acquisition, engineer- ' ing and design and Vices. Said Bonds shall be payable from the City's flood project fund established under Iowa Code Section 418.12, into which there shall be I deposited sales tax increment revenues 1 received from the State of Iowa as part of the award to the City under the Flood •Miti- gation Program, and to the extent necessary -'and provided for in the resolution authorizing issuance ofcsaid Bonds, funds collected by the City from a supple mental levy of debt service taxes. At the above meeting the Council shall receive oral or written objections from any resident or property owner of said City to the above action. After all • objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the issuance of said Sales Tax Increment Revenue Bonds or will abandon the proposal to issue said Bonds. The hear- ing and appeals therefrom shall be held in accordance with and governed by the provisions of Section 384.83 of the Code of Iowa. This notice is given by order. of the Council of Dubuque, Iowa, as provided by Sections 418.14 and 384.83 of the Code of Iowa. Dated this 24th day of April, 2015. Kevin S. Firnstahl City Clerk of Dubuque, Iowa It 4/24 STATE OF IOWA CERTIFICATE of the CITY CLERK ) SS: COUNTY OF DUBUQUE ) I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 134-15 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 22nd day of April, 2015. Kevin Firnstahl, (SEAL) y Clerk