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Bond Sale, Refund 3,100,000MEMORANDUM October 1, 2002 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Bond Sale to Refund $3,100,000 General Obligation Bonds, Series 1994 dated May 1, 1994 Finance Director Ken TeKippe is recommending the sale of General Obligation Bonds not to exceed $650,000 to refund the outstanding balance on the $3,100,000 general obligation bonds, series 1994, dated May 1, 1994, which are currently callable at any time. The refunded par amount of bonds equals $595,000. The interest rate will be more favorable than the 5.125% rate for the $315,000 due May 1, 2003, and the $280,000 due May 1, 2004. It is further requested that a public hearing be set for October 21, 2002. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Kenneth J. TeKippe, Finance Director CITY OF DUBUQUE, IOWA MEMORANDUM TO:Michael C. Van Milligen, City Manager FROM:Kenneth J TeKippe, Finance Director SUBJECT:Bond Sale to Refund $3,100,000 General Obligation Bonds, Series 1994 dated May 1, 1994 DATE:October 2, 2002 The purpose of this memorandum is to recommend the sale of General Obligation Bonds to refund the outstanding balance on the $3,100,000 general obligation bonds, series 1994, dated May 1, 1994 ("the 1994 bonds"). The 1994 bonds are currently callable at any time. The refunded par amount of bonds equals $595,000. Payment dates for bond principal will not change due to the refunding. The interest rate will be more favorable than the 5.125% rate for the $315,000 due May 1, 2003 and $280,000 due May 1, 2004. The opportunity and timing to refund exists since the City is currently in the process of issuing $3,300,000 bonds for water projects. Minimal additional costs will be incurred with projected net savings to the City of $8,500. 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 said Bonds. The requested action steps for City Council is to adopt the attached resolution fixing the date of October 21, 2002 for a public hearing on the proposition of selling not to exceed $650,000 in General Obligation Bonds (for an essential corporate purpose) of Dubuque, Iowa and providing for publication of notice thereof. KJT/jmg Attachments cc: Barry Lindahl Pauline Joyce Jeanne Schneider (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body:The City Council of Dubuque, Iowa. Date of Meeting: _______,2002. Time of Meeting:_______o'clock__ .M. Place of Meeting:Auditorium, Carnegie-Stout Public Library, 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 $650,000 General Obligation Bonds. Resolution fixing date for a meeting on the proposition to issue. Such additional matters as are set forth on the additional_________page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chaptex 21, Code of Iowa, and the local rules of said governmental body. ______________________ City Clerk, Dubuque, Iowa October 8 ,2002 The City Council of Dubuque, Iowa, met in Regular session, in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor Terrance M. Duggan , in the chair, and the following named Council Members: Roy Buol, Patricia Cline, Joyce Connors John Markham, Ann Michalski, Dan Nicholson Absent: None Council Member Michalski introduced the following Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $650,000 GENERAL OBLIGATION BONDS (FOR AN ESSENTIAL CORPORATE PURPOSE) OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that the same be adopted. Council Member________seconded the motion to adopt. The roll was called and the vote was, AYES: Buol, Cline, Connors, Duggan, Markham, Michalski, Nicholson NAYS: None Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 535-02 RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $650,000 GENERAL OBLIGATION BONDS (FOR AN ESSENTIAL CORPORATE PURPOSE) 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 General Obligation Bonds to the amount of not to exceed $650,000, as authorized by Section 384.25 of the City Code of Iowa, for the purpose of providing funds to pay costs of carrying out an essential corporate purpose project as hereinafter described; and WHEREAS, before said Bonds may be issued, it is necessary to comply with the provisions of said Code, and to publish a notice of the proposal to issue such Bonds and of the t/me and place of the meet'mg at which the Council proposes to take action for the issuance of the Bonds 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: Section 1. That this Council meet in the Council Chambers, City Hall, Dubuque, Iowa, at 6:30 o'clock P. M.,on the 21st day of October ,2002, for the purpose of taking action on the matter of the issuance of not to exceed $650,000 General Obligation Bonds for an essential corporate purpose of said City, the proceeds of which Bonds will be used to provide funds to pay costs of refunding and refinancing certain outstanding indebtedness of the City, consisting of the General Obligation Bonds, Series 1994, dated May 1, 1994. Section 2. That 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 Bonds. Section 3. The notice of the proposed action to issue said 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 $650,000 GENERAL OBLIGATION BONDS (FOR AN ESSENTIAL CORPORATE PURPOSE) 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 21st day of October, 2002, at 6:30 o'clock P.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $650,000 General Obligation Bonds for an essential corporate purpose of said City, in order to provide funds to pay costs of refunding and refinancing certain outstanding indebtedness of the City, consisting of the General Obligation Bonds, Series 1994, dated May 1, 1994. 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 meet'rog or at any adjournment thereof, take additional action for the issuance of said Bonds or will abandon the proposal to issue said Bonds. This notice is given by order of the Council of Dubuque, Iowa, as provided by Section 384.25 of the City Code of Iowa. Dated this 8th day of October ., 2002. /s/ Jeanne F. Schneider City Clerk of Dubuque, Iowa (End of Notice) PASSED AND APPROVED this 7th day of October 2002. _________________________ Terrance M. Duggan, Mayor ATTEST: ____________________________ Jeanne F. Schneider, City Clerk CIG-3 9/91 CERTIFICATE STATE OF IOWA COUNTY OF DUBUQUE ) ) SS I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is a mae and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a true and complete copy of the action taken by said Council with respect to said 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 bullet'm 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 said agenda being attached hereto) pursuant to the local roles 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 said 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 said 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 said Municipality hereto affixed this 8th day of 0ctober, 2002. /s/ Jeanne F. Schneider, City Clerk Dubuque, Iowa SEAL DCORNELL~340924\ I \10422038 6 AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. ATTORNEYS AT LAW KENNETH H. HAYN[E DAVID SWINTON JOHN F. MCKINNEY, JR. LINDA L. KNIEP RICHARD G. SANTI JOHN D. HINTZE 100 COURT AVENUE, EDGAR H. BITfLE PETER PASBLER SUITE 600 RONALD L. SUTPBIN IVAN T. WEBBER DES MOINES, iOWA LANCE A. COPPOCK JANE B. MCALLISTER 50309-2231 DAVID H. LUGINBILL JAMES C. HANKS MARK W. BEERMAN R. MARK CORY http://www,ahierslaw.co EDWARD W. REMSBURG SERGE H. GARRISON PJ~.N DALL H. STEFANI RONALD L. PEELER m ELIZABETH GREGG KENNEDY ANDREW J. BRACKEN WADE R. HAUSER ~11 STEVEN L. SERCK TELEPHONE 515-243- WILLIAM J. NOTH STEVEN M. NADEL 7611 TELECOPIER 515-243- 2149 ELIZABETH A. GROB JENNIFER A. CLENDENIN PATRICIA A. WESTEMETER NATHAN J. OVERBERG DAN]ELLE J. JESS JAMES R. WAINWRIGHT J. ERIC BOEHLERT ANDREW T. TICE COLIN J. WITi- GORDON D. GRETA MARK W. JOHNSON OF COUNSEL H. RICHARD SMITH ROBERT G. ALLBEE DOUGLAS R. SMITH PHiLiP J. DORWEILER, Retired PAUL F. AHLERS (1913.2002) JAMES EVANS COONEY (1917-1998) October 2, 2002 BY FEDERAL EXPRESS Mr. Ken TeKippe Finance Officer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001-4864 RE: Not to exceed $650,000 General Obligation Bonds Dear Mr. TeKippe: We have now prepared and are enclosing herewith suggested proceedings to be acted upon by the Council in fixing the date ora meeting on the proposition to issue the above mentioned Bonds and ordering publication of a notice of hearing consistent with the provisions of Code Section 384.25. 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 said 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. At the time of hearing the Council shall receive oral or written objections from any resident or property owner to the proposed action to issue said Bonds. After alt objections have been received and considered, the Council is required, at that meeting or at any adjournment thereof, to take additional action for the issuance of said Bonds or to abandon the proposal to issue said Bonds. The Council is required by statute to adopt the resolution instituting proceedings to issue the Bonds at the hearing--or an adjournment thereof. If you have any questions pertaining to the proceedings enclosed or this letter, please do not hesitate to either write or call. Yours very truly, WJN:dc encl. cc: Pauline Joyce Dave Dirks William J. Noth FOR THE FIRM DCORNELLB40928\I\10422038