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SRF Rate Reset and Reissuance for 2007 Water Revenue Captial Loan NotesCity of Dubuque ITEM TITLE: SUMMARY: Copyrighted October 2, 2017 Action Items # 3. SRF Rate Reset and Reissuance for 2007 Water Revenue Capital Loan City Manager recommending approval of an amendment to the City Water Revenue Drinking Water State Revolving Fund Loan Agreement entered into as of October 18, 2007. RESOLUTION Approving and authorizing an Amendment to Loan and Disbursement Agreement by and between the City of Dubuque and the Iowa Finance Authority, and Authorizing and providing for the reissuance of the $571,000 Water Revenue Capital Loan Note, Series 2017 (2007 — Rate Reset), of the City SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Water Revenue DWSRF Loan Rate Reset -MVM Memo Memo for Rate Reset on SRF Loan SRF Correspondence re: Interest Rate Reduction Memo from Ahlers 8038-G Resolution for Rate Reset and Reissuance Supplemental Tax Certificate Type City Manager Memo Staff Memo Supporting Documentation Supporting Documentation Supporting Documentation Resoluti ons Supporting Documentation THE CITY OF Dui Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque bell All -America City '1Il1' 2007 • 2012 • 2013 • 2017 SUBJECT: Procedure to Document the City Council's Approval of an Amendment of the City's Water Revenue Drinking Water State Revolving Fund Loan Agreement for a Rate Reset on FS-31-08-DWSRF DATE: September 26, 2017 Finance Director Jean Nachtman recommends City Council approval of an amendment to the City Water Revenue Drinking Water State Revolving Fund Loan Agreement entered into as of October 18, 2007. The original loan was for $1,037,000 and was used for the rehabilitation of the walls, floors, and concrete covers of two clear well reservoirs at Eagle Point Water Plant. The outstanding loan amount is currently at $571,000 at 3% interest. This rate reset will reduce the interest rate to 1.75% for the remaining $571,000 and will generate an interest savings of $41,606. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Jean Nachtman, Finance Director Jenny Larson, Budget Director THE CITY OF DUB1bJE Masterpiece on the Mississippi Dubuque kiltrill All -America City h r 2007 • 2012 • 2013 TO: Michael C. Van Milligen, City Manager FROM: Jean Nachtman, Finance Director SUBJECT: Procedure to document the Council's approval of an amendment of the City's Water revenue DWSRF loan agreement for a rate reset on FS-31-08-DWSRF DATE: September 21, 2017 The purpose of this memorandum is to suggest proceedings to document the Council's approval of an amendment to the City's Water Revenue DWSRF loan agreement entered into as of October 18, 2007. The original loan was for $1,037,000 and was used for the rehabilitation of the walls, floors, and concrete covers of two clear well reservoirs at Eagle Point Water Plant. The outstanding loan amount is currently at $571,000 at 3% interest. This rate reset will reduce the interest rate to 1.75% for the remaining $571,000 and will generate an interest savings of $41,606. The resolution approves and authorizes a form of Loan and Disbursement Agreement by and between the City of Dubuque and the Iowa Finance Authority, and authorizes and provides for the reissuance of the $571,000 Water Revenue Capital Loan Notes, Series 2017. A letter from attorney Kristine Billingsley Cooper detailing information on the loan is enclosed. Attachments cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Jenny Larson, Budget Director �€ .�.;..Jf.I 17 SEP —7 AN 10: 0 City C. )f force [)u1 1. Vic.... Its September 1, 2017 Mayor Roy Buol City of Dubuque 50 West 13th Street Dubuque, IA 52001-4864 Dear Mayor Buol: SRF STATE REVOLVING FUND The State Revolving Fund for Clean Water and Drinking Water Program (SRF Program) reduced its interest rate on all new 20 -year SRF loans to 1.75% several years ago. Due to growth in the program and careful financial management, the SRF Program is able to offer this new interest rate on all existing SRF Loans that are at least 10 years old. That means that as of December 1, 2017, the interest rate on the City of Dubuque Water Revenue Capital Loan Note, D0001R, will be reduced from 3% to 1.75%. Over the remaining term of your loan, this interest rate reduction will save your community $41,606. Because an interest rate reduction changes the terms of your original SRF Loan agreement, you must contact your bond counsel to assist you in amending the documents related to your SRF Loan. Please work to execute the updated documents as soon as possible. We have enclosed a new debt service schedule for the remaining term of your SRF Loan for your convenience. Thank you for realizing the benefit of the SRF Program and for using it to finance your wastewater or drinking water project. We are committed to providing low-cost funds for drinking water and wastewater infrastructure projects to the communities of Iowa. We hope you will consider the SRF Program for all of your future water quality needs. Sincerely, David D. mison Executive Director Enclosure CC: Jean Nachtman, Finance Director INVESTING IN IOWA'S WATER www.iowasrf.com Loan ID Dated Date Loan Amount Interest Savings Date 12/1/2017 6/1/2018 12/1/2018 6/1/2019 12/1/2019 6/1/2020 12/1/2020 6/1/2021 12/1/2021 6/1/2022 12/1/2022 6/1/2023 12/1/2023 6/1/2024 12/1/2024 6/1/2025 12/1/2025 6/1/2026 12/1/2026 6/1/2027 12/1/2027 6/1/2028 Dubuque *** Effective 12.1.17 *** D0001R 10/18/2007 $1,037,000.00 (Unused $122,000) $41,606.25 Current Schedule Current Interest Servicing Principal 3.00% Fee 8,565.00 44,000.00 8,565.00 1,427.50 7,905.00 45,000.00 7,905.00 1,317.50 7,230.00 47,000.00 7,230.00 1,205.00 6,525.00 48,000.00 6,525.00 1,087.50 5,805.00 50,000.00 5,805.00 967.50 5,055.00 52,000.00 5,055.00 842.50 4,275.00 53,000.00 4,275.00 712.50 3,480.00 55,000.00 3,480.00 580.00 2,655.00 57,000.00 2,655.00 442.50 1,800.00 59,000.00 1,800.00 300.00 915.00 61,000.00 915.00 152.50 571,000.00 108,420.00 9,035.00 New Debt Schedule New Interest Servicing Principal 1.75% Fee 8,565.00 44,000.00 4,996.25 1,427.50 4,611.25 45,000.00 4,611.25 1,317.50 4,217.50 47,000.00 4,217.50 1,205.00 3,806.25 48,000.00 3,806.25 1,087.50 3,386.25 50,000.00 3,386.25 967.50 2,948.75 52,000.00 2,948.75 842.50 2,493.75 53,000.00 2,493.75 712.50 2,030.00 55,000.00 2,030.00 580.00 1,548.75 57,000.00 1,548.75 442.50 1,050.00 59,000.00 1,050.00 300.00 533.75 61,000.00 533.75 152.50 62,220.00 571,000.00 66,813.75 9,035.00 646,848.75 SRF STATE REVOLVING FUND New Annual Debt Service 58,988.75 55,540.00 56,640.00 56,700.00 57,740.00 58,740.00 58,700.00 59,640.00 60, 540.00 61,400.00 AHLERS COONEY ATTDRNEY,E September 19, 2017 VIA ELECTRONIC MAIL Ms. Jenny Larson Budget Director City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 Ahlers & Cooney, P.C. Attorneys at Law 100 Court Avenue, Suite 600 Des Moines, Iowa 50309-2231 Phone: 515-243-7611 Fax: 515-243-2149 www.ahlerslaw.com Kristin Billingsley Cooper 515-246-0330 kcooper@ahlerslaw.com Re: Dubuque, Iowa - $571,000 Water Revenue Capital Loan Notes, Series 2017 (2007 Rate -Reset) Dear Jenny: With this letter I am enclosing suggested City Council proceedings to document the Council's approval of an amendment to the City's Water Revenue DWSRF loan agreement entered into as of October 18, 2007. Attached to the resolution is the proposed Amendment. The resolution also approves the form of Supplemental Tax Certificate confirming no changes to the covenants and representations of the original tax certificate the City approved for the 2007 loan. Following City Council approval of the resolution, please return all copies of the Resolution (with attached Amendment) and Supplemental Tax Certificate to us. After the Iowa Finance Authority has executed the Amendment, we will provide you with a complete transcript of this action. Finally, I also am enclosing a Form 8038-G for the amended loan to be filed with the Internal Revenue Service, reporting the change in the interest rate. Please sign the same and return it to us. We will complete and file the Forms with the Internal Revenue Service and provide you with a complete copy once its receipt has been confirmed. Should you have any questions, please don't hesitate to call me. Very truly yours, ittik tin Billingsley Cooper F'C�R THE FIRM September 19, 2017 Page 2 KBC:seb Enclosures cc: Alexis Steger, Senior Budget Analyst, City of Dubuque Jean Nachtman, Finance Director, City of Dubuque Tami Lansing, Assistant Finance Director, City of Dubuque Kevin Firnstahl, City Clerk, City of Dubuque Denise Ihrig, Water Department Manager, City of Dubuque Tionna Pooler, Independent Public Advisors, LLC 01406236-1\10422-079 ITEMS TO INCLUDE ON AGENDA CITY OF DUBUQUE, IOWA $571,000 Water Revenue Capital Loan Note, Series 2017 (2007 — Rate Reset) • Resolution approving and authorizing Amendment to Loan and Disbursement Agreement by and between the City of Dubuque and the Iowa Finance Authority, and authorizing and providing for the reissuance of the $571,000 Water Revenue Capital Loan Note, Series 2017 (2007 — Rate Reset). NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY. October 2, 2017 The City Council of the City of Dubuque, State of Iowa, met in regular session, in the Council Chambers, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:00 P.M., on the above date. There were present Mayor Roy D. Buol, in the chair, and the following named Council Members: Joyce Connors, Luis Del Toro, Ric Jones, Kevin Lynch, David Resnick, Jake Rios Absent: Vacant: 1 Council Member Connors introduced the following Resolution entitled "A RESOLUTION APPROVING AND AUTHORIZING AN AMENDMENT TO LOAN AND DISBURSEMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE AND THE IOWA FINANCE AUTHORITY, AND AUTHORIZING AND PROVIDING FOR THE REISSUANCE OF THE $571,000 WATER REVENUE CAPITAL LOAN NOTE, SERIES 2017 (2007 — RATE RESET), OF THE CITY", and moved its adoption. Council Member Lynch seconded the motion to adopt. The roll was called and the vote was: AYES: Jones, Resnick, Buol, Rios, Lynch, Del Toro, Connors NAYS: Whereupon the Mayor Roy D. Buol declared the following Resolution duly adopted: 2- RESOLUTION NO: 333-17 A RESOLUTION APPROVING AND AUTHORIZING AN AMENDMENT TO LOAN AND DISBURSEMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE AND THE IOWA FINANCE AUTHORITY, AND AUTHORIZING AND PROVIDING FOR THE REISSUANCE OF THE $571,000 WATER REVENUE CAPITAL LOAN NOTE, SERIES 2017 (2007 — RATE RESET), OF THE CITY WHEREAS, the City of Dubuque (hereinafter the "Issuer") previously issued its Water Revenue Capital Loan Note, Series 2007, dated October 18, 2007, in the amount of $1,037,000 (hereinafter the "Notes") currently outstanding in the amount of $571,000, pursuant to a Loan and Disbursement Agreement between Issuer, the Iowa Finance Authority, the Iowa Department of Natural Resources and Wells Fargo Bank, N.A., dated of like date (the "Agreement"), for the purpose of defraying the costs of the Project (as defined in the resolution authorizing issuance of the same (hereinafter the "Resolution")); and WHEREAS, the Iowa Finance Authority, as Original Purchaser and current holder of the Notes, has authorized a reduction in the interest rate on the Notes to 1.75%; and WHEREAS, an Amendment to the Loan and Disbursement Agreement (hereinafter the "Amendment") has been prepared to reflect said interest rate reduction, a copy of which is attached hereto as Exhibit A; and WHEREAS, pursuant to IRS regulations adoption of the Amendment constitutes a reissuance of the Notes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IN THE COUNTY OF DUBUQUE, STATE OF IOWA: Section 1. Section 2. Section 3. That the Resolution is hereby amended to reflect the interest rate reduction to 1.75% per annum on the outstanding principal amount from and after December 1, 2017 for the remainder of the life of the Notes. That the Amendment in substantially in the form attached to this Resolution is hereby authorized to be executed and issued on behalf of the Issuer by the Mayor and attested by the City Clerk. That the Supplemental Tax Certificate regarding the uses of proceeds and the system is hereby approved. The City Clerk is directed to execute the same. 3 Section 4. Except as amended herein, all of the other terms and conditions of the Resolution and Agreement are in all respects ratified, confirmed and approved and shall remain in full effect. PASSED AND APPROVED this 2nd day of October, 2917. ATTEST: Kev `s ' irnstahl, ` ty Clerk Roy D. Buol, Mho 4 12L/ STATE OF IOWA COUNTY OF DUBUQUE CERTIFICATE ) ) SS ) 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 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 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 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 Council hereto of ed t is 3day of October, 2017. (SEAL) Kevi ►'Firnstahll, it Clerk, RC1 T of Dubuque, State of Iowa EXHIBIT A AMENDMENT TO LOAN AND DISBURSEMENT AGREEMENT The Loan and Disbursement Agreement (Water Revenue) (the "Agreement") entered into as of October 18, 2007 by and between the City of Dubuque, Iowa (the "City" or "Issuer"), the Iowa Finance Authority, as lender (the "Lender"), the Iowa Department of Natural Resources and Wells Fargo Bank, N.A., as trustee (the ATrustee@), relating to a loan from the Lender to the City in the original amount of $1,037,000, currently outstanding in the aggregate amount of $571,000, is hereby amended as follows: 1. The applicable interest rate for the Agreement shall be changed to 1.75%, effective as of December 1, 2017, and the Agreement shall thereafter be payable in accordance with the debt service schedule attached hereto and incorporated herein by this reference. 2. Except as amended herein, all of the other terms and conditions of the Agreement are in all respects ratified, confirmed and approved and shall remain in full effect. IN WITNESS WHEREOF, we have hereunto affixed our signatures all as of the day of , 2017. (SEAL) By: Attest: Kev n rir`nstahl, ity Clerk CITY OF BUQUE, IOWA 4,1 Roy D. , Mayor IOWA FINANCE AUTHORITY By: 01406478-1\10422-079 Executive Director SUPPLEMENTAL TAX CERTIFICATE OF DUBUQUE, IOWA The undersigned officers of the City of Dubuque, Iowa (the "City"), hereby certify as follows: 1. The Council of the City of Dubuque ("Council"), acting at a meeting duly called and held on October 2, 2017, has authorized the execution and delivery of an Amendment to the Loan and Disbursement Agreement originally dated as of October 18, 2007 ("Agreement") by and between the Council and the Iowa Finance Authority ("Purchaser"), and approved a resolution ("Supplemental Resolution") amending the resolution approved by the Council on October 1, 2007 ("Original Bond Resolution"), which Original Bond Resolution authorized the issuance and delivery of $1,037,000 Water Revenue Capital Loan Note, Series 2007, dated October 18, 2007, of the City ("Original Notes"). 2. The officers whose name, title and signature appear below were, on the date or dates of the execution of the instruments referred to in paragraph 1 hereof, and are on the date hereof, the duly elected and qualified incumbents of the offices of the City set opposite their names and the signatures appearing below are the genuine signatures of said officers. 3. We have reviewed the representations, covenants and warranties contained in the Tax Exemption Certificate dated October 18, 2007 ("Tax Certificate") executed on behalf of the City in connection with the issuance of the Original Notes. A true and accurate copy of the Tax Exemption Certificate is attached hereto as Exhibit A. 4. The description of the Project set forth in Section II of the Tax Certificate accurately describes the Project as constructed and as it exists and is used as of the date hereof, and there has been no change in the use of the Project since the Original Note was issued. 5. The construction of the Project has been completed, and all of the proceeds of the Original Note were expended on the costs of the Project, in the amounts and as described Sections II and III of the Tax Certificate. 6. Not more than 10% of the proceeds of the Original Notes or the facilities financed thereby, are to be used (directly or indirectly) or were used in a trade or business carried on by any person (other than a governmental unit), and not more 10% of the payment of the principal of or interest on the Original Notes are (directly or indirectly): (i) secured by any interest in property used or to be used in such trade or business or payments in respect of such property; or (ii) derived from payments (whether or not to the City) in respect of property or borrowed money used or to be used in such a trade or business, all within the meaning of Section 141(a) of the Code. 7. During the term of the Original Notes, and at all times prior to the date hereof, no private business use will be made or has been made of the Project, and no payments or security 1 will be made or furnished or has been made or furnished that would cause the Original Notes to be a "private activity bond" within the meaning of Section 141 of the Code and applicable regulations. 8. The reissuance of the Notes involves outstanding obligations in the amount of $571,000 which were previously designated by the Issuer as "qualified tax exempt obligations" as defined in Section 265(b)(3) of the Tax Code. Pursuant to Subsection (D) of that Section, said amount retains the prior designation. 9. The covenants of the City contained in the Tax Certificate are hereby ratified, confirmed and approved and shall continue to be binding upon the City as if set forth fully herein. This certificate is intended and is being delivered in order to meet the requirements of Section 148 of the Internal Revenue Code of 1986, as amended, and Treasury Regulation 1- 148(2)(b). IN WITNESS WHEREOF, the undersigned has hereunto set my hand this day of , 2017. By: 01406296-1\10422-079 CITY OF DUBUQUE, IOWA /("J*kg1 mance Director 2 Form 8038-G Information Return for Tax -Exempt Governmental Obligations I. Under Internal Revenue Code section 149(e) ► See separate instructions. Caution: If the issue price is under$100,000, use Form 8038 -GC. Reporting Authority If Amended Return, check here ► ❑ 2 Issuer's employer identification number (EIN) (Rev. September 2011) Department of the Treasury Internal Revenue Service Part I OMB No. 1545-0720 1 Issuer's name City of Dubuque, State of Iowa 3a Name of person (other than issuer) with whom the IRS may communicate about this return (see instructions) 4 Number and street (or P.O. box if mail is not delivered to street address) 50 W. 13th Street 6 City, town, or post office, state, and ZIP code Dubuque, Iowa 52001 8 Name of issue $571,000 Water Revenue Capital Loan Notes, Series 2017 (2007 Rate Reset) 10a Name and title of officer or other employee of the issuer whom the IRS may call for more information (see instructions) Room/suite Jean Nachtman, Finance Director Part II 11 12 Health and hospital 13 Transportation 14 Public safety 15 Environment (including sewage bonds) 16 Housing 17 Utilities Water 18 Other. Describe 110- 19 19 If obligations are TANs or RANs, check only box 19a If obligations are BANs, check only box 19b 20 If obligations are in the form of a lease or installment sale, check box 42-6004596 3b Telephone number of other person shown on 3a 5 Report number (For IRS Use Only) I3 7 Date of issue 10/02/2017 9 CUSIP number None 10b Telephone number of officer or other employee shown on 10a Type of Issue (enter the issue price). See the instructions and attach schedule. Education 563-589-4100 11 12 13 14 15 16 17 $571,000 00 18 Description of Obligations. Complete for the entire issue for which this form is being filed. (a) Final maturity date (b) Issue price (c) Stated redemption (d) Weighted price at maturity average maturity 06/01/2028 $ 571,000 $ 571,000 Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest 5.829 years 23 Issue price of entire issue (enter amount from line 21, column (b)) 24 Proceeds used for bond issuance costs (including underwriters' discount) . 1 24 25 Proceeds used for credit enhancement 1 25 26 Proceeds allocated to reasonably required reserve or replacement fund 1 26 27 Proceeds used to currently refund prior issues 1 27 28 Proceeds used to advance refund prior issues 28 29 Total (add lines 24 through 28) 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) . -0- -0- -0- $571,000 00 -0- Part V Description of Refunded Bonds. Complete this part only for refunding bonds. 31 Enter the remaining weighted average maturity of the bonds to be currently refunded . 32 Enter the remaining weighted average maturity of the bonds to be advance refunded . 33 Enter the last date on which the refunded bonds will be called (MM/DD/YYYY) 34 Enter the date(s) the refunded bonds were issued ► (MM/DD/YYYY) For Paperwork Reduction Act Notice, see separate instructions. (e) Yield 1.75000 % 22 -0- 23 $571,000 00 29 . 30 $571,000 00 -0- . ► 5.8292 vears • 11,0.0000 vears IP -10/02/2017 10/18/2007 Form 8038-G Cat. No. 63773S (Rev. 9-2011) Form 8038-G (Rev. 9-2011) Part VI Miscellaneous Page 2 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . . 35 I -o- 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC) (see instructions) 36a -o- b Enter the final maturity date of the GIC ► c Enter the name of the GIC provider► 37 Pooled financings: Enter the amount of the proceeds of. this issue that are to be used to make loans to other governmental units 37 -o- 38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ► ❑✓ and ente the following information: b Enter the date of the master pool obligation I. Unknown c Enter the EIN of the issuer of the master pool obligation ► 52-1699886 d Enter the name of the issuer of the master pool obligation ► Iowa Finance Authority 39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box ► ❑✓ 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ► ❑ 41a If the issuer has identified a hedge, check here ► ❑ and enter the following information: b Name of hedge provider 0.. c Type of hedge ► d Term of hedge ► 42 If the issuer has superintegrated the hedge, check box ► ❑ 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations (see instructions), check box ► ❑✓ 44 If the issuer has established written procedures to monitor the requirements of section 148, check box ► ❑✓ 45a If some portion of the proceeds was used to reimburse expenditures, check here ► ❑ and enter the amount of reimbursement . . . . . . ► b Enter the date the official intent was adopted 11 - Signature Signature and Consent Paid Preparer Use Only Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belie are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return information, as necessary to proce - this r urn, to the persgnlhat I have authorized above. m ,' l Sigh -at -6 of issuer's author zed representative Date PrinUTypedpreparer's name Kristin Billingsley Cooper Firm's name ► Ahlers & Cooney, P.C. Firm's address ► 100 Court Avenue, Suite 600, Des Moines, Iowa 50309 Preparer's signature Jean Nachtman, Finance Director Type or print name and title Date Check ❑ if PTIN self-employed P02001942 Firm's EIN ► 421323559 Phone no. (515) 2434611 • Form 8038-G (Rev. 9-2011) HLERS GOONEY ArTORNE?E; November 20, 2017 Ms, Jenny Larson Budget Director City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 Ablers & Cooney, P.C. Attorneys at Law 100 Court Avenue, Suite 600 Des Moines, Iowa 50309-2231 Phone: 515-243-7611 Fax: 515-243-2149 www.ahlerslaw.com Kristin Billingsley Cooper 515-246-0330 kcooperPahlerslaw.com RE: Dubuque, Iowa Reissuance of Water Revenue Capital Loan Notes, Series 2007 Dear Jenny: Enclosed for the files of the City, please find the following items: 1. Copy of the Amending Resolution (including Exhibit A — Amendment to Loan and Disbursement Agreement; 2. Copy of IRS Affidavit of Mailing (including proof of delivery). This completes this matter for the City; however, if you have any questions relating thereto, please do not hesitate to contact me. Very truly yours, ristin Billingsle Cooper FOR THE FIRM KBC:seb CT.) Enclosures 01406254-1\10422-079 ITEMS TO INCLUDE ON AGENDA CITY OF DUBUQUE, IOWA $571,000 Water Revenue Capital Loan Note, Series 2017 (2007— Rate Reset) • Resolution approving and authorizing Amendment to Loan and Disbursement Agreement by and between the City of Dubuque and the Iowa Finance Authority, and authorizing and providing for the reissuance of the $571,000 Water Revenue Capital Loan Note, Series 2017 (2007 — Rate Reset). NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY. October 2, 2017 The City Council of the City of Dubuque, State of Iowa, met in regular session, in the Council Chambers, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:00 P.M., on the above date. There were present Mayor Roy D. Buol, in the chair, and the following named Council Members: Joyce Connors, Luis Del Toro, Ric Jones, Kevin Lynch, David Resnick, Jake Rios Absent: Vacant: 1 Council Member Connors introduced the following Resolution entitled "A RESOLUTION APPROVING AND AUTHORIZING AN AMENDMENT TO LOAN AND DISBURSEMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE AND THE IOWA FINANCE AUTHORITY, AND AUTHORIZING AND PROVIDING FOR THE REISSUANCE OF THE $571,000 WATER REVENUE CAPITAL LOAN NOTE, SERIES 2017 (2007 — RATE RESET), OF THE CITY", and moved its adoption. Council Member Lynch seconded the motion to adopt. The roll was called and the vote was: AYES: Jones, Resnick, Buol, Rios, Lynch, Del Toro, Connors NAYS: Whereupon the Mayor Roy D. Buol declared the following Resolution duly adopted: 2 RESOLUTION NO: 333-17 A RESOLUTION APPROVING AND AUTHORIZING AN AMENDMENT TO LOAN AND DISBURSEMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE AND THE IOWA FINANCE AUT HOORI T Y, AND AUTHORIZING AND PROVIDING FOR THE REISSUANCE OF THE $571,000 WATER REVENUE CAPITAL LOAN NOTE, SERIES 2017 (2007 — RATE RESET), OF THE CITY WHEREAS, the City of Dubuque (hereinafter the "Issuer") previously issued its Water Revenue Capital Loan Note, Series 2007, dated October 18, 2007, in the amount of $1,037,000 (hereinafter the "Notes") currently outstanding in the amount of $571,000, pursuant to a Loan and Disbursement Agreement between Issuer, the Iowa Finance Authority, the Iowa Department of Natural Resources and Wells Fargo Bank, N.A., dated of like date (the "Agreement"), for the purpose of defraying the costs of the Project (as defined in the resolution authorizing issuance of the same (hereinafter the "Resolution")); and WHEREAS, the Iowa Finance Authority, as Original Purchaser and current holder of the Notes, has authorized a reduction in the interest rate on the Notes to 1.75%; and WHEREAS, an Amendment to the Loan and Disbursement Agreement (hereinafter the "Amendment") has been prepared to reflect said interest rate reduction, a copy of which is attached hereto as Exhibit A; and WHEREAS, pursuant to IRS regulations adoption of the Amendment constitutes a reissuance of the Notes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IN THE COUNTY OF DUBUQUE, STATE OF IOWA: Section 1. Section 2. That the Resolution is hereby amended to reflect the interest rate reduction to 1.75% per annum on the outstanding principal amount from and after December 1, 2017 for the remainder of the life of the Notes. That the Amendment in substantially in the fond attached to this Resolution is hereby authorized to be executed and issued on behalf of the Issuer by the Mayor and attested by the City Clerk. Section 3. That the Supplemental Tax Certificate regarding the uses of proceeds and the system is hereby approved. The City Clerk is directed to execute the same. 3 Section 4. Except as amended herein, all of the other terns and conditions of the Resolution and Agreement are in all respects ratified, confirmed and approved and shall remain in full effect. PASSED AND APPROVED this 2"-d day of October, 2'17. ATTEST: Kev-Pimstahl,: ty Clerk Roy D. Buol, Mho 4 EXHIBIT A AMENDMENT TO LOAN AND DISBURSEMENT AGREEMENT The Loan and Disbursement Agreement (Water Revenue) (the "Agreement") entered into as of October 18, 2007 by and between the City of Dubuque, Iowa (the "City" or "Issuer"), the Iowa Finance Authority, as lender (the "Lender"), the Iowa Department of Natural Resources and Wells Fargo Bank, N.A., as trustee (the ATrustee@), relating to a loan from the Lender to the City in the original amount of $1,037,000, currently outstanding in the aggregate amount of $571,000, is hereby amended as follows: 1. The applicable interest rate for the Agreement shall be changed to 1.75%, effective as of December 1, 2017, and the Agreement shall thereafter be payable in accordance with the debt service schedule attached hereto and incorporated herein by this reference. 2. Except as amended herein, all of the other terms and conditions of the Agreement are in all respects ratified, confirmed and approved and shall remain in full effect. IN WITNESS WHEREOF, we have hereunto affixed our signatures all as of the 2, day of l7ki,2017. (SEAL) By: Attest: CITY OF BUQUE, IOWA tO Roy D. s , Mayor IOWA FINANCE AUTHORITY By: 01406478-1\10422-079 xecutive'ctor Form 8038-G (Rev. September 2011) Department of the Treasury Internal Revenue Service Part I Information Return for Tax -Exempt Governmental Obligations ► Under Internal Revenue Code section 149(e) ► See separate instructions. Caution: If the issue price is under $100,000, use Form 8038 -GC. Reporting Authority 1 Issuer's name City of Dubuque, State of Iowa 3a Name of person (other than issuer) with whom the IRS may communicate about this return (see instructions) 4 Number and street (or P.O. box if mail is not delivered to street address) Room/suite 50 W. 13th Street 6 City, town, or post office, state, and ZIP code Dubuque, Iowa 52001 8 Name of issue Reissuance of Water Revenue Capital Loan Notes, Series 2007 10a Name and title of officer or other employee of the issuer whom the IRS may call for more information (see instructions) Jean Nachtman, Finance Director Part -11 1 1 OMB No. 1545-0720 If Amended Return, check here ► ❑ 2 Issuer's employer identification number (EIN) 42-6004596 3b Telephone number of other person shown on 3a 5 Report number (For IRS Use Only) 151 7 Date of issue 10/02/2017 9 CUSIP number None 10b Telephone number of officer or other employee shown on 10a Type of issue (enter the issue price). See the instructions ailed attach schedule. Education 563-589-4100 11 12 Health and hospital 12 13 Transportation 13 14 Public safety 14 15 Environment (including sewage bonds) 15 16 Housing 16 17 Utilities Water 17 18 Other. Describe ► 18 19 If obligations are TANs or RANs, check only box 19a ► ❑ If obligations are BANs, check only box 19b ► ❑ 20 If obligations are in the form of a lease or installment sale, check box ► ❑ Part III $571,000 00 Description of Obligations. Complete for the entire issue for which this form is being filed. (a) Final maturity date (b) Issue price (c) Stated redemption (d) Weighted price at maturity average maturity 21 06/01/2028 $ 571,000 $ 571,000 5.829 vears Ligaga Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest 23 Issue price of entire issue (enter amount from line 21, column (b)) 24 Proceeds used for bond issuance costs (including underwriters' discount) . . 1 24 -0- 25 Proceeds used for credit enhancement 1 25 -0- 26 Proceeds allocated to reasonably required reserve or replacement fund 1 26 -0- 27 Proceeds used to currently refund prior issues 1 27 $571,000 00 28 Proceeds used to advance refund prior issues 1 28 -0- ( . 29 Total (add lines 24 through 28) 29 $571,000 00 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) • 1 30 -0- Description of Refunded Bonds. Complete this part only for refunding bonds. 31 Enter the remaining weighted average maturity of the bonds to be currently refunded . . . ► 5.8292 vears 32 Enter the remaining weighted average maturity of the bonds to be advance refunded . . . ► 0.0000 vears 33 Enter the last date on which the refunded bonds will be called (MM/DD/YYYY) 10-10/02/2017 34 Enter the date(s) the refunded bonds were issued ► (MM/DD/YYYY) 10/18/2007 For Paperwork Reduction Act Notice, see separate instructions: Cat. No. 63773S Form 8038-G (Rev. 9-2011) (e) Yield 1.75000 % 22 -0- 23 $571,000 00 Part V Form 8038-G (Rev. 9-2011) Part VI Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . . 1 35 -0- 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC) (see instructions) 36a -0- b Enter the final maturity date of the GIC ► c Enter the name of the GIC provider ► 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units 37 -0- 38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ► ❑✓ and enter the following information: b Enter the date of the master pool obligation ► Unknown c Enter the EIN. of the issuer of the master pool obligation ► 52-1699886 d Enter the name of the issuer of the master pool obligation ► Iowa Finance Authority 39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box 41a If the issuer has identified a hedge, check here ► ❑ and enter the following information: b Name of hedge provider ► c Type of hedge ► d Term of hedge ► 42 If the issuer has superintegrated the hedge, check box ► 0 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations (see instructions), check box ► 44 If the issuer has established written procedures to monitor the requirements of section 148, check box ► 45a If some portion of the proceeds was used to reimburse expenditures, check here ► ❑ and enter the amount Page 2 of reimbursement ► b Enter the date the official intent was adopted ► Signature and Consent Paid Preparer Use Only ❑✓ Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return information, as necessary to process ibis -return, to the pp on that I have authorized above. 1 L 'Y( //. l-1�z 2'07 1/-10 l0 -17 Signa re of issuer's authorized representative Date Print/Type preparer's name Pr arer's signature Kristin Billingsley Cooper / + Firm's name ► Ahlers & Cooney, P.C. i Firm's address ► 100 Court Avenue, Sfite 600, Des Moines, Iowa 50309 111 Jean Nachtman, Finance Director Type or print name and title DateCheck if PTIN //—/? -17 self-employed P02001942 Firm's EIN ► Phone no. 42-1323559 (515) 243-7611 Form 8038-G (Rev. 9-2011) AFFIDAVIT OF MAILING STATE OF IOWA ) (� ) SS: COUNTY OF POLK I, Kristin B. Cooper, do hereby certify that at the request of the City of Dubuque, State of Iowa, I caused to be mailed a copy of the foregoing Form 8038-G, Information Return for Tax - Exempt Governmental Obligations, (re: Dubuque, Iowa — Reissuance of Water Revenue Capital Loan Notes, Series 2007), by mailing via United Parcel Service, properly addressed to: Department of the Treasury Internal Revenue Service Center 1973 Rulon White Blvd Ogden, UT 84201 such mailing being by United Parcel Service, 2"d Day Air®, Tracking Number 1Z5E21760298562379, the date of certification being November 20, 2017, all as shown by the attached Proof of Delivery. Dated at Des Moines, Iowa, this 20th day of November, 2017. istin B. Cooper Subscribed and sworn to by the aforementioned Kristin 13. Cooper, before me a Notary Public in and for the State of Iowa, this 20th day of November, 2017. Notary Public (SEAL) 01427161-1 \ 10422-079 DEBBI CORNELL 11 Commission Number 173921 Mymii io t /Pins Tracking: [JPS Page 1 of 1 Proof of Delivery Dear Customer, This notice serves as proof of delivery for the shipment listed below. Tracking Number: Service: Shipped/Billed On: Delivered On: Delivered To: Received By: Left At: 125E21760298562379 UPS 2nd Day Alt 11/16/2017 11/20/2017 20:43 A.M. OGDEN, 11T, DS LIZZA Dock Thank you for giving us this opportunity to serve you. Sincerely, UPS Tracking results provided by UPS: 11/20/2917 12:50 P.M. ET Close Window https://wwwapps.ups.com/WebTracking/processPOD?Requester=NES&tracknum=1 Z5E... 11/20/2017