2010A Sewer Revenue Capital Loan Notes State Revolving Fund Loan Copyrighted
J uly 20, 2020
City of Dubuque Consent Items # 26.
City Council Meeting
ITEM TITLE: 2010A Sewer Revenue Capital Loan Notes State Revolving Fund Loan
Rate Reset
SUM MARY: City Manager recommending approval of an amendment to the City
Sewer Revenue State Revolving Fund Loan Agreement entered into as
of J anuary 13, 2010.
RESOLUTION approving and authorizing Amendment to Loan and
Disbursement Agreement by and between the City of Dubuque and the
lowa Finance Authority, and authorizing and providing forthe reissuance
of the Sewer Revenue Capital Loan Note, Series 2010A (Rate Reset)
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Supplemental Tax Exemption Certificate Supporting Documentation
8038G Supporting Documentation
Revised Amortization Schedule Supporting Documentation
Dubuque
THE CI'TY OF �
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TO: The Honorable Mayor and City Council Members
FROM: Michael Van Milligen, City Manager
SUBJECT: Proceedings to Amend the 2010A Sewer Revenue Capital Loan Notes (State
Revolving Fund Loan) for a Rate Reset (Refinancing) — North Catfish Creek
Sanitary Sewer Project
DATE: July 9, 2020
Director of Finance and Budget Jennifer Larson recommends City Council approval of an
amendment to the City Sewer Revenue State Revolving Fund Loan Agreement entered
into as of January 13, 2010.
The original loan was for $912,000 and was used for the North Catfish Creek Sanitary
Sewer Project, which included phase I, phase II and III of the reconstruction of the North
Fork Catfish Creek interceptor sanitary sewer. The outstanding loan amount is currently
$912,000 at 3% interest. This rate reset will reduce the interest rate to 1.75% for the
remaining $529,000 and will generate interest savings of$38,087.50.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
�Jv�1 �Gv�r
Michael C. Van Milligen
MCVM:jml
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Teri Goodmann, Assistant City Manger
Dubuque
THE CI'TY OF �
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Director of Finance and Budget
SUBJECT: Proceedings to Amend the 2010A Sewer Revenue Capital Loan Notes (State
Revolving Fund Loan) for a Rate Reset (Refinancing) — North Catfish Creek
Sanitary Sewer Project
DATE: July 9, 2020
INTRODUCTION
The purpose of this memorandum is to suggest proceedings and amend the City's Sewer
Revenue State Revolving Fund (SRF) loan agreement entered into as of January 13, 2010
for the North Catfish Creek Sanitary Sewer Project.
BACKGROUND
The original loan was for $912,000 and was used for the North Catfish Creek Sanitary
Sewer Project, which included phase I, phase II and III of the reconstruction of the North
Fork Catfish Creek interceptor sanitary sewer.
DISCUSSION
This loan rate reset will reduce the interest rate from 3.00% to 1.75% for the remaining
principal balance of$529,000 and will generate interest savings of$38,087.50.
The resolution approves and authorizes an amendment to the loan and disbursement
agreement between the City of Dubuque, lowa and the lowa Finance Authority (lender)
and the lowa Department of Natural Resources and Wells Fargo Bank, N.A. (trustee). A
letter from bond counsel Kristin Billingsley Cooper is attached.
ACTION
I respectfully recommend approval of resolution and the Supplemental Tax Certificate
confirming no changes to the covenants and representations of the original tax certificate
the City approved for the 2010 loan.
Attachments
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Teri Goodmann, Assistant City Manger
ITEMS TO INCLUDE ON AGENDA
CITY OF DUBUQUE, IOWA
$529,000 Sewer Revenue Capital Loan Note, Series 2020 (Rate Reset of 2010A SRF loan)
• 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 Sewer Revenue Capital Loan Note, Series 2010A (Rate
Reset).
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
July 20, 2020
The City Council of the City of Dubuque, State of Iowa, met in regular session, via
electronic means, an in -person meeting being impossible or impractical due to the COVID-19
pandemic, at 6:30 P.M., on the above date. There were present Mayor Roy D. Buol in the chair,
and the following named Council Members:
Brad Cavanagh, Ric Jones, David Resnick, Laura Roussell,
Danny Sprank,
Absent:
Vacant: Ward 1
1
Council Member Resnick 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
SEWER REVENUE CAPITAL LOAN NOTE, SERIES 2010A (RATE RESET), OF THE
CITY", and moved its adoption. Council Member Jones seconded the motion to adopt. The roll
was called and the vote was:
AYES: Jones, Buol, Cavanagh, Sprank, Roussell, Resnick
NAYS:
Whereupon the Mayor declared the following Resolution duly adopted:
2
RESOLUTION NO: 220-20
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 SEWER REVENUE CAPITAL LOAN NOTE, SERIES
2010A (RATE RESET), OF THE CITY
WHEREAS, the City of Dubuque (hereinafter the "Issuer") previously issued its Sewer
Revenue Capital Loan Note, Series 2010A, dated January 13, 2010, in the amount of $912,000
(along with a forgivable note in the amount of $229,000) (hereinafter the "Note") currently
outstanding in the amount of $529,000, pursuant to a Loan and Disbursement Agreement between
the Issuer and the Iowa Finance Authority, 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. 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
June 1, 2020 for the remainder of the life of the Notes.
Section 2. That the Amendment in substantially in the fotiii 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 teiiiis 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 20t1 day of Julyj2020.
ATTEST:
Mayor
-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 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 her -et ff ed this 2 t„di ; of July, 2020.
City C1e City of Dubuque, ' tate of Iowa
EXHIBIT A
AMENDMENT TO LOAN AND DISBURSEMENT AGREEMENT
The Loan and Disbursement Agreement (Sewer Revenue) (the "Agreement") entered into
as of January 13, 2010 by and between the City of Dubuque, Iowa (the "City" or "Issuer") and the
Iowa Finance Authority, as lender (the "Lender") relating to a loan from the Lender to the City in
the original amount of $912,000 (along with a forgivable note in the amount of $229,000),
currently outstanding in the aggregate amount of $529,000, is hereby amended as follows:
1. The applicable interest rate for the Agreement shall be changed to 1.75%, effective
as of June 1, 2020, 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 20th day of
July 2029.
By:
ttet�:
0I
Cit Clerk
CITY OF DUBUQUE, IOWA
IOWA FINANCE AUTHORITY
By:
01739776-1\10422-082
Executive Director
SUPPLEMENTAL TAX CERTIFICATE
OF
DUBUQUE, IOWA
The undersigned officer of the City of Dubuque, Iowa (the "City"), hereby certifies as
follows:
1. The Council of the City of Dubuque ("Council"), acting at a meeting duly called
and held on July 20, 2020, has authorized the execution and delivery of an Amendment to the
Loan and Disbursement Agreement originally dated as of January 13, 2010 ("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
December 21, 2009 ("Original Bond Resolution"), which Original Bond Resolution authorized
the issuance and delivery of a $912,000 (along with a forgivable note in the amount of $229,000)
Sewer Revenue Capital Loan Note, Series 2010A, dated January 13, 2010, of the City ("Original
Note").
2. The officer whose name, title and signature appears below was, on the date or
dates of the execution of the instruments referred to in paragraph 1 hereof, and is on the date
hereof, the duly elected and qualified incumbent of the office of the City set opposite the name
and signature appearing below is the genuine signature of said officer.
3. We have reviewed the representations, covenants and warranties contained in the
Tax Exemption Certificate dated January 13, 2010 ("Tax Certificate") executed on behalf of the
City in connection with the issuance of the Original Note. 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 Note 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 Note is (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 Note, 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
will be made or furnished or has been made or furnished that would cause the Original Note to
be a "private activity bond" within the meaning of Section 141 of the Code and applicable
regulations.
8. The reissuance of the Original Note involves outstanding obligations in the
amount of $529,000 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 as of the 20th day
of July, 2020.
By:
01739787-1\10422-082
CITY OF DUBUQUE, IOWA
D. ctor of Finance and Budget
2
Education
06/01/2030
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) 24
25 Proceeds used for credit enhancement
26 Proceeds allocated to reasonably required reserve or replacement fund
27 Proceeds used to refund prior tax-exempt bonds. Complete Part V . .
28 Proceeds used to refund prior taxable bonds. Complete Part V . . .
29 Total (add lines 24 through 28)
529,000
$
Form 8038-G
(Rev. September 2018)
Department of the Treasury
Internal Revenue Service
Part I
Information Return for Tax -Exempt Governmental Bonds
► Under Internal Revenue Code section 149(e)
► See separate instructions.
Caution: If the issue price is under $100,000, use Form 8038-GC.
► Go to www.irs.gov/F8038G for instructions and the latest information.
Reporting Authority
OMB No. 1545-0720
If Amended Return, check here ►
issuer s name
City of Dubuque, Iowa
2 Issuer's employer identification number (EIN)
42-6004596
3a Name of person (other than issuer) with whom the IRS may communicate about this retum (see instructions)
3b Telephone number of other person shown on 3a
4 Number and street (or P.O. box if mail is not delivered to street address)
50 W. 13th Street
Room/suite
5 Report number (For IRS Use Only)
3
6 City, town, or post office, state, and ZIP code
Dubuque, Iowa 52001
7 Date of issue
July 20, 2020
8 Name of issue
Reissuance of Sewer Revenue Capital Loan Notes, Series 2010A
9 CUSP number
NONE
10a Name and title of officer or other employee of the issuer whom the IRS may call for more information (see
instructions)
Jenny Larson, Director of Finance and Budget
10b Telephone number of officer or other
employee shown on 10a
563-589-4100
Part II Type of Issue (enter the issue price). See the instructions and attach schedule.
11
12 Health and hospital
13 Transportation
14 Public safety
15 Environment (including sewage bonds)
16 Housing
17 Utilities
18 Other. Describe ► Reissuance due to interest rate reduction
19a If bonds are TANs or RANs, check only box 19a ► El
b If bonds are BANs, check only box 19b 10-
20 If bonds are in the form of a lease or installment sale, check box ►
Part III Description of Bonds. Complete for the entire issue for which this form
(a) Final maturity date
(b) Issue price
(c) Stated redemption
price at maturity
is being filed.
(d) Weighted
average maturity
11
12
13
14
15
16
17
18
529,000 00
(e) Yield
Part IV
529,000
25
26
27
28
5.760 years
-0-
-0-
-0-
22
1.7500 0/0
-0-
23
529,000
00
529,000
00
-0-
30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) .
Description of Refunded Bonds. Complete this part only for refunding bonds.
31 Enter the remaining weighted average maturity of the tax-exempt bonds to be refunded . . . ► 5.760 years
32 Enter the remaining weighted average maturity of the taxable bonds to be refunded . . . . ► N/A years
33 Enter the last date on which the refunded tax-exempt bonds will be called (MM/DD/YYYY) . . ► 06/01/2020
34 Enter the date(s) the refunded bonds were issued ► (MM/DD/YYYY) 01/13/2010
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 63773S Form 8038-G (Rev. 9-2018)
Part V
29
529,000
00
30
-0-
Form 8038-G (Rev. 9-2018)
Part VI
Miscellaneous
35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . .
36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract
(GIC). See instructions
b Enter the final maturity date of the GIC ► (MM/DD/YYYY)
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
38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ► El and enter the following information:
b Enter the date of the master pool bond ► (MM/DD/YYYY) unknown
c Enter the EIN of the issuer of the master pool bond ►
d Enter the name of the issuer of the master pool bond ► See attached schedule
39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box ► El
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 ► ❑
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 ► 0
44 If the issuer has established written procedures to monitor the requirements of section 148, check box ► 0
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 ► (MM/DD/YYYY)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge
Signature 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
and process this return, to the person that I have auth' ed above.
Consent
35
Page 2
-0-
36a
-0-
Paid
Preparer
Use Only
/ Signature of iss s au''orized represe tive Date
Print/Type prepare'f's name
Kristin Billingsley Cooper
Preparer's signature
Firm's name I. Ahlers & Cooney, P.C.
Firm's address ► 100 Court Avenue, Suite 600, Des Moines, Iowa 50309
attached
37
-0-
Jenny Larson, Director of Finance & Budget
Type or print name and title
Date
❑ if PTIN
P02001942
42-1323559
515-246-0330
Form 8038-G (Rev. 9-2018)
Check
self-employed
Firm's EIN ►
Phone no.
Loan ID CS0193R
Dated Date 1/13/2010
Loan Amount $912,000.00
Interest Savings $38,087.50
Date
Dubuque
*** Effective 6.1.20 ***
Current Schedule
Current Interest Servicing
Principal 3.00% Fee
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
12/1/2028
6/1/2029
12/1/2029
6/1/2030
7,935.00
46,000.00 7,935.00 1,322.50
7,245.00
47,000.00 7,245.00 1,207.50
6,540.00
49,000.00 6,540.00 1,090.00
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
STATE
New Debt Schedule
New Interest Servicing New Annual
Principal 1.75% Fee Debt Service
4,628.75
46,000.00 4,628.75 1,322.50 56,580.00
4,226.25
47,000.00 4,226.25 1,207.50 56,660.00
3,815.00
49,000.00 3,815.00 1,090.00 57,720.00
3,386.25
50,000.00 3,386.25 967.50 57,740.00
2,948.75
52,000.00 2,948.75 842.50 58,740.00
2,493.75
53,000.00 2,493.75 712.50 58,700.00
2,030.00
55,000.00 2,030.00 580.00 59,640.00
1,548.75
57,000.00 1,548.75 442.50 60,540.00
1,050.00
59,000.00 1,050.00 300.00 61,400.00
533.75
61,000.00 533.75 152.50 62,220.00
529,000.00 91,410.00 7,617.50 529,000.00 53,322.50 7,617.50 589,940.00