Declaration of Official Intent to Reimburse Expenses Relating to Certain FY 16 Bond ProjectsCopyright 2014
City of Dubuque Consent Items # 20.
ITEM TITLE: Declaration of Official Intent to Reimburse Expenses Relating to Certain
Fiscal Year 2016 Bond Projects
SUMMARY: City Manager recommending approval of the Declaration of Official Intent
Resolution for Fiscal Year 2016 capital projects that are funded by an
upcoming bond issuance in February 2016 allowing the City to reimburse
itself from bond proceeds for expenditures incurred prior to the actual sale
of the bonds.
RESOLUTION Declaring an Official Intent under Treasury Regulation
1.150-2 to issue debt to reimburse the City for certain original expenditures
paid in connection with the Fiscal Year 2016 Projects
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
E MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Resolution Resolutions
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuqu(
band
AI -America City
r
2007 • 2012 •201;
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Declaration of Official Intent to Reimburse Expenses Relating to Certain
Fiscal Year 2016 Bond Projects
DATE: October 14, 2015
Budget Director Jennifer Larson recommends City Council approval of the Declaration
of Official Intent Resolution for Fiscal Year 2016 capital projects that are funded by an
upcoming bond issuance in February 2016. Passage of the Declaration of Official Intent
Resolution will allow the City to reimburse itself from bond proceeds for expenditures
incurred prior to the actual sale of the bonds. This is a typical and customary action to
be taken in anticipation of the issuance of general obligation bonds.
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
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuqu(
band
AI -America City
r
2007 • 2012 •201;
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
SUBJECT: Declaration of Official Intent to Reimburse Expenses Relating to Certain Fiscal
Year 2016 Bond Projects
DATE: October 14, 2015
INTRODUCTION
The City's Bond Counsel has advised that a resolution needs to be passed declaring the City's
official intent to reimburse from bond proceeds for prior expenditures made for the following
capital projects:
• Airport New Terminal Roads and Apron
• Airport New Terminal Parking Phases 1 & 2
• Cedar and Terminal Street Force Mains Lift Station Assessment and Improvements
• Relocation of 30" Force Main around Old Public Works Garage
• Sanitary Sewer Lining Program
• Sanitary Sewer Manhole Replacement Program
• Street Program Related Sanitary Improvements
• Track Line Sanitary Sewer Cleaning and Lining
• Washington Street Sanitary Sewer — 7th to 9th Street
• Catfish Creek Interceptor Sewer, Granger Creek Interceptor Sewer, and Catfish Creek
Force Main and Lift Station Improvements
• Transit Soil Contamination Testing
• Water Airport Utility Extension — Radio/SCADA System
• Water Main Relocation for Sanitary Sewer Manhole Replacement/Rehabilitation Project
• Outfall Manhole Reconstruction
• Fats Oil and Grease Receiving Station
DISCUSSION
Passage of the Declaration of Official Intent Resolution will allow the City to reimburse itself from
bond proceeds for expenditures incurred prior to the actual sale of the bonds. This is a typical
and customary action to be taken in anticipation of the issuance of general obligation bonds.
The tentative schedule for issuing general obligation bonds for FY 2016 projects is to set a
public hearing at the November 16, 2015 City Council meeting, hold the public hearing at the
December 7, 2015 City Council meeting, and to sell the bonds in January/February 2016.
The Declaration of Official Intent to reimburse from the proceeds of debt is necessary due to the
projects already under design and construction could begin prior to when the bond proceeds are
received for the project.
ACTION STEP
I respectfully recommend the approval of the Declaration of Official Intent Resolution.
JML
Attachments
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Ken TeKippe, Finance Director
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of the City of Dubuque, Iowa.
Date of Meeting: October 19, 2015.
Time of Meeting: 6:30 o'clock P.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 the
meeting is as follows:
• Resolution declaring an official intent under Treasury Regulation 1.150-2 to issue
debt to reimburse the City for certain original expenditures paid in connection
with the Airport New Terminal Roads and Apron, Airport New Terminal Parking
Phases 1 & 2, Cedar and Terminal Street Force Mains Lift Station Assessment and
Improvements, Relocation of 30" Force Main around Old Public Works Garage,
Sanitary Sewer Lining Program, Sanitary Sewer Manhole Replacement Program,
Street Program Related Sanitary Improvements, Track Line Sanitary Sewer
Cleaning and Lining, Washington Street Sanitary Sewer — 7th to 9th Street,
Catfish Creek Interceptor Sewer, Granger Creek Interceptor Sewer, and Catfish
Creek Force Main and Lift Station Improvements, Transit Soil Contamination
Testing, Water Airport Utility Extension — Radio/SCADA System, Water Main
Relocation for Sanitary Sewer Manhole Replacement/Rehabilitation Project,
Outfall Manhole Reconstruction, and Fats Oil and Grease Receiving Station
Project.
Such additional matters as are set forth on the additional 8 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 the governmental body.
City Cl
rk, City of Dubuq
r
e, Iowa
October 19, 2015
The City Council of the City of Dubuque, Iowa, met in regular session, in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on
the above date. There were present Mayor Roy D. Buol in the chair, and the following
named Council Members:
Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch
David Resnick, Lynn Sutton
Absent:
Council Member Lynch introduced the following Resolution entitled
RESOLUTION DECLARING AN OFFICIAL INTENT UNDER TREASURY
REGULATION 1.150-2 TO ISSUE DEBT TO REIMBURSE THE CITY FOR
CERTAIN ORIGINAL EXPENDITURES PAID IN CONNECTION WITH THE
FISCAL YEAR 2016 PROJECTS" and moved that it be adopted. Council Member
Connors seconded the motion to adopt, and the roll being called thereon, the vote was as
follows:
AYES: Jones, Buol, Resnick, Sutton, Lynch, Braig, Connors
NAYS:
Whereupon, the Mayor declared the Resolution duly adopted as follows:
RESOLUTION NO. 363-15
RESOLUTION DECLARING AN OFFICIAL INTENT
UNDER TREASURY REGULATION 1.150-2 TO ISSUE DEBT
TO REIMBURSE THE CITY FOR CERTAIN ORIGINAL
EXPENDITURES PAID IN CONNECTION WITH THE
FISCAL YEAR 2016 PROJECTS
WHEREAS, the City anticipates making cash expenditures for capital
improvement projects generally described as Airport New Terminal Roads and Apron,
Airport New Terminal Parking Phases 1 & 2, Cedar and Terminal Street Force Mains Lift
Station Assessment and Improvements, Relocation of 30" Force Main around Old Public
Works Garage, Sanitary Sewer Lining Program, Sanitary Sewer Manhole Replacement
Program, Street Program Related Sanitary Improvements, Track Line Sanitary Sewer
Cleaning and Lining, Washington Street Sanitary Sewer — 7th to 9th Street, Catfish Creek
Interceptor Sewer, Granger Creek Interceptor Sewer, and Catfish Creek Force Main and
Lift Station Improvements, , Transit Soil Contamination Testing, Water Airport Utility
Extension — Radio/SCADA System, Water Main Relocation for Sanitary Sewer Manhole
Replacement/Rehabilitation Project, Outfall Manhole Reconstruction, and Fats Oil and
Grease Receiving Station Project (hereinafter referred to as the "Projects"); and
WHEREAS, the City reasonably expects to issue debt to reimburse the costs of the
Projects; and
WHEREAS, the Council believes it is consistent with the City's budgetary and
financial circumstances to issue this declaration of official intent.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That this Resolution be and does hereby serve as a declaration of
official intent under Treasury Regulation 1.150-2.
Section 2. That it is reasonably expected that capital expenditures will be made in
respect of the Projects, from time to time and in such amounts as this Council determines
to be necessary or desirable under the circumstances then and there existing, and this
Council reasonably expects to reimburse all or a portion of such expenditures with the
proceeds of bonds, notes or other indebtedness to be issued or incurred by the City in the
future.
Section 3. That the total estimated costs of the Projects, the maximum principal
amount of the bonds, notes or other indebtedness to be issued for the foregoing Projects
and the estimated date of completion of the Projects is reasonably expected to be as
follows:
Project
Funds from which Total Amount of Estimated
Original expenditures Estimated Borrowing Date of
are to be Advanced Cost Anticipated Completion
Airport Roads Sales Tax Fund $231,086 $231,086 June 2016
& Apron
Airport Parking Sales Tax Fund $394,243 $394,243 June 2016
Phases 1 & 2
Cedar & Terminal St. Sanitary Fund $250,000 $250,000 December 2016
Force Mains Lift Station
Assessment .& Improv.
Relocation of 30" Sanitary Fund $350,000 $350,000 December 2016
Force Main
Sanitary Sewer Lining Sanitary Fund $525,000 $525,000 March 2016
Program
Sanitary Sewer Manhole Sanitary Fund $295,000 $295,000 May 2016
Replacement Program
Project
Street Program Related
Sanitary Improvements
Funds from which
Original expenditures
are to be Advanced
Track Line Sanitary
Sewer Cleaning & Lining
Washington Street
Sanitary Sewer 7th to 9th
Catfish Creek,
Granger Creek Interceptor
Sewer, & Catfish Creek
Force Main & Lift Station
Transit Soil
Contamination Testing
Water Airport Utility
Ext. Radio/SCADA
Water Main Relocation
For Sanitary Sewer Manhole
Replacement/Rehabilitation
Outfall Manhole
Reconstruction
Fats Oil and Grease
Receiving Station
Sanitary Fund
Sanitary Fund
Sanitary Fund
Sanitary Fund
Greater
Downtown TM
Fund
Total
Estimated
Cost
Amount of
Borrowing
Anticipated
$50,000 $50,000
$125,000 $125,000
$135,000 $135,000
$250,000 $250,000
Estimated
Date of
Completion
July 2016
June 2016
December 2016
March 2016
$15,949 $15,949 December 2015
Water Fund $65,000 $65,000
Water Fund $20,000 $20,000
Sanitary Fund $315,000 $315,000
Sanitary Fund $75,000 $75,000
April 2016
December 2015
December 2016
December 2016
Section 4. That the City reasonably expects to reimburse the above-mentioned
Project costs not later than the later of eighteen months after the capital expenditures are
paid or eighteen months after the property is placed in service.
Section 5. That this Resolution be maintained by the City Clerk and available at all
times for public inspection, subject to such revisions as may be necessary.
PASSED AND APPROVED this 19th day of October, 2015.
ATTEST:
City lerk
STATE OF IOWA
COUNTY OF DUBUQUE
CERTIFICATE
) SS
I, the undersigned City Clerk of the City of Dubuque, 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 City 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 meeting 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 Council 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 City hereto affixed this 19th day of
October, 2015.
(SEAL)
01144726-1\10422-000