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General Obligation Refunding Bonds $9.5mTO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $9,500,000 General Obligation Refunding Bonds DATE: September 15, 2009 Finance Director Ken TeKippe is recommending adoption of a "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $9,500,000 General Obligation Refunding Bonds." The proceeds of the Refunding Bonds will be used to provide funds to pay costs of refunding and refinancing of certain City indebtedness, including General Obligation Bonds, Series 2001, dated December 15, 2001, and the General Obligation Bonds, Series 2002, dated December 15, 2001 (America's River Project Bond issue). The refunding is estimated to save the City $60,000 interest annually. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Kenneth J. TeKippe, Finance Director THE CITY OF DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Kenneth J. TeKippe, Finance Director Dubuque A~-AmericaC~y 2007 ,...-- SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $9,500,000 General Obligation Refunding Bonds DATE: September 14, 2009 The purpose of this memorandum is to provide the suggested proceedings for the public hearing on the issuance of General Obligation Refunding Bonds to refund the outstanding balance on the 2001 and 2002 General Obligation Bonds as prepared by our Bond Counsel and to present a resolution for City Council to adopt entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $9,500,000 General Obligation Refunding Bonds." The proceeds of the Refunding Bonds will be used to provide funds to pay costs of refunding and refinancing of certain City indebtedness, including the General Obligation Bonds, Series 2001, dated December 15, 2001, and the General Obligation Bonds, Series 2002, dated December 15, 2001 (America's River Project Bond Issue). The refunding is estimated to save the City $60,000 of interest expense annually. A letter from attorney William Noth detailing information on the bond hearing is enclosed. The proceedings have been prepared on the basis that no objections will be filed with the City Clerk. If there are objections, we will need to summarize them. The Mayor will then declare the hearing on the issuance of said Bonds to be closed. Immediately following, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $9,500,000 General Obligation Refunding Bonds." In the event the Council decides to abandon the proposal to issue said Bonds, then the form of resolution included in said proceedings should not be adopted. In this event, a motion needs to be adopted to the effect that such Bond proposal is abandoned. Section 384.25 of the Code of Iowa provides that any resident or property owner of the City may appeal the decision to take additional action to issue the Bonds, to the District Court of a county in which any part of the City is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. The action step for City Council is to hold the public hearing and approve the resolution instituting proceedings to take additional action. KT/jg Enclosures cc: Barry Lindahl, City Attorney Jenny Larson, Budget Director Jeanne Schneider, City Clerk AHL~RS ~.;000NEY, 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 ~ WILLIAM J. NOTH Direct Dial: WNOTH@AHLERSLAW.COM (515)246-0332 September 10, 2009 BY FEDERAL EXPRESS Mr. Ken TeKippe Finance Officer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001-4864 RE: Not to exceed $9,500,000 General Obligation Refunding Bonds Dear Mr. TeKippe: With this letter I am enclosing suggested proceedings to be acted upon by the Council on the date fixed for the hearing on the issuance of the above mentioned Bonds, pursuant to the provisions of Code Section 384.25. The proceedings have been prepared on the basis that no objections will be filed with the City Clerk. If there are objections, please summarize theirs in the space provided. The Mayor will then declare the hearing on the issuance of said Bonds to be closed. Iininediately following, a resolution is to be introduced and adopted entitled "Resohztion Instituting Proceedings to Take Additional Action for the Issuance of not to exceed $9,500,000 General Obligation Refunding Bonds". In the event the Council decides to abandon the proposal to issue said Bonds, then the form of resolution included in said proceedings should not be adopted. We would suggest that, in this event, a motion merely be adopted to the effect that such Bond proposal is abandoned. September 10, 2009 Page 2 Section 384.25 of the Code of Iowa provides that any resident or property owner of the City inay appeal the decision to take additional action to issue the Bonds, to the District Court of a county in which any part of the City is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. In the event an appeal is filed by any resident or property owner, please see that we are notified iininediately; and, as soon as available, a copy of the notice of appeal should be furnished our office for review. An extra copy of the proceedings is enclosed to be filled in as the original and certified back to us for our transcript of the action taken. If any questions arise, please keep me advised. Yours very truly, William J. Noth WJN:dc encl. cc: Jenny Larson (w/encl.) Barry Lindahl (w/encl.) DCORNELU 630239. l /MSWord\] 0422.092 ~~~~~AL (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: , 2009. Time of Meeting: o'clock .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: Not to exceed $9,500,000 General Obligation Refunding Bonds Public hearing on the issuance. Resolution instituting proceedings to take additional action. 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 Chapter 21, Code of Iowa, and the local rules of the governmental body. City Clerk, City of Dubuque, Iowa 2009 The City Council of the City of Dubuque, Iowa, met in session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at o'clock .M., on the above date. There were present Mayor , in the chair, and the following named Council Members: Absent: ******* -1- The Mayor announced that this was the time and place for the public hearing and meeting on the matter of the issuance of not to exceed $9,500,000 General Obligation Refunding Bonds, in order to provide funds to pay costs of refunding and refinancing of certain City indebtedness, including the General Obligation Bonds, Series 2001, dated December 15, 2001, and the General Obligation Bonds, Series 2002, dated December 15, 2001, an essential corporate purpose, and that notice of the proposed action by the Council to institute proceedings for the issuance of the Bonds, had been published pursuant to the provisions of Section 384.25 of the City Code of Iowa. The Mayor then asked the Clerk whether any written objections had been filed by any City resident or property owner to the issuance of the Bonds. The Clerk advised the Mayor and the Council that written objections had been filed. The Mayor then called for oral objections to the issuance of the Bonds and were made. Whereupon, the Mayor declared the time for receiving oral and written objections to be closed. (Attach here a summary of objections received or made, if any) -2- The Council then considered the proposed action and the extent of objections thereto. Whereupon, Council Member Lynch introduced and delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $9,500,000 GENERAL OBLIGATION REFUNDING BONDS", and moved: XX that the Resolution be adopted. ^ to ADJOURN and defer action on the Resolution and the proposal to institute proceedings for the issuance of Bonds to the meeting to be held at o'clock .M., on the day of , 2009, at this place. Council Member Braig seconded the motion. The roll was called and the vote was, AYES: Braig, Connors, Jones, Lynch, Resnick, Voetberg NAYS: None Whereupon, the Mayor declared the measure duly adopted. RESOLUTION NO. 366-09 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $9,500,000 GENERAL OBLIGATION REFUNDING BONDS WHEREAS, pursuant to notice published as required by law, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of not to exceed $9,500,000 General Obligation Refunding Bonds, for the essential corporate purpose of paying costs of refunding and refinancing of certain City indebtedness, including the General Obligation Bonds, Series 2001, dated December 15, 2001, and the General Obligation Bonds, Series 2002, dated December 15, 2001, and has considered the extent of objections received from residents or property owners as to the proposed issuance of Bonds; and, accordingly the following action is now considered to be in the best interests of the City and residents thereof: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: -3® Section 1. That this Council does hereby institute proceedings and take additional action for the sale and issuance in the manner required by law of not to exceed $9,500,000 General Obligation Refunding Bonds for the foregoing essential corporate purpose. PASSED AND APPROVED this 21St day of September, 2009. Attest: _~ .% eanne F. Schneider, CMC City Clerk ~~~ Jq`y e ~ .Connors, Mayor Pro-Tem V -4- 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 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 Z 1, 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 day of 2009. City Clerk, City of Dubuque, State of Iowa (SEAL) DCORNELll 629924.1 /MSWord\10422.092