Proceedings on the Issuance of Not to Exceed $24,000,000 General Obligation Annual Appropriation Refunding Capital Loan Notes_Hearing Copyrig hted
March 15, 2021
City of Dubuque Public Hearings # 3.
City Council Meeting
ITEM TITLE: Proceedings to Hold the Public Hearing on the Issuance of Notto
Exceed $24,000,000 General Obligation Annual Appropriation
Refunding Capital Loan Notes
SUM MARY: Proof of publication on notice of public hearing to consider City Council
approval of the suggested proceedings for a public hearing on the
issuance of a not to exceed $24,000,000 in General Obligation Annual
Appropriation Refunding Bonds, the proceeds of which will be used to
refund the Stormwater Revenue Capital Loan Notes, Series 2015B,
dated June 19, 2015 and amended September8, 2017.
RESOLUT ION I nstituting proceedings to take additional action for the
authorization of a Loan and Disbursement Agreement and the issuance
of not to exceed $24,000,000 General Obligation Annual Appropriation
Refunding Capital Loan Notes
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Bond Counsel Instructions Supporting Documentation
Proof of Publication Supporting Documentation
dubuque
THE CITY OF �
D�L E All•Aaerin6ih
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Hold the Public Hearing on the Issuance of Not to Exceed
$24,000,000 General Obligation Annual Appropriation Refunding Capital
Loan Notes
DATE: March 5, 2021
Director of Finance and Budget Jennifer Larson is recommending City Council approval
of the suggested proceedings for a public hearing on the issuance of a not to exceed
$24,000,000 in General Obligation Annual Appropriation Refunding Bonds, the
proceeds of which will be used to refund the Stormwater Revenue Capital Loan Notes,
Series 2015B, dated June 19, 2015 and amended September 8, 2017.
The original Stormwater Utility Revenue Capital Loan Notes (State Revolving Loan
Fund Program) was for $29,541,000 and was used for the Upper Bee Branch Creek
Restoration. This loan qualified for green infrastructure principal forgiveness of
$5,908,200. The principal was forgiven by the lowa Finance Authority in June 2020.
The intent when the Series 2015B Stormwater Revenue Capital Loan Notes were
issued was that the debt would be fully repaid by sales tax increment and not count
against the Stormwater revenue bond covenant of 110%. The Stormwater revenue
bond covenant requires that the net income in the Stormwater fund on an accrual basis
exceed debt service on all revenue bonds paid by stormwater funds by 110%.
When the loan documents for the Series 2015B Stormwater Revenue Capital Loan
Notes were prepared, the Loan and Disbursements Agreements and Notes were
payable out of the net earnings of the Stormwater Management Utility instead of the
sales tax increment fund. This caused the Series 2015B Stormwater Revenue Capital
Loan Notes to count against the Stormwater revenue bond covenant of 110%. The error
in the loan documents was discovered during Fiscal Year 2020 when the Fiscal Year
2019 audit was completed.
After discussions with City bond counsel and financial advisor, and lowa Finance
Authority's bond counsel, it was determined that the best course of action for the City
was to refund the Series 2015B Stormwater Revenue Capital Loan Notes as General
Obligation Annual Appropriation refunding bonds. The sales tax increment revenue
funding source is new in lowa, created as part of the Flood Mitigation program which
established a $36 million Flood Recovery Fund for critical recovery and redevelopment
projects in communities impacted by the devastating floods of 2019. Due to sales tax
increment being such a new source of revenue for cities, the lowa Finance Authority did
not want to amend the State Revolving Fund Loan to use sales tax increment as the
funding source of the loan. In addition, the pandemic has made the sales tax increment
revenue stream unpredictable and the forecasted revenue would not meet required
revenue tests to allow sales tax increment to be used as a pledge for the debt.
The General Obligation Annual Appropriation refunding bonds will have $1.5 million in
annual debt service that will count against the City's statutory debt limit.
The lowa Finance Authority has agreed to make the City a low-interest loan under the
terms of a Loan and Disbursement Agreement, that loan will be secured and evidenced
by a General Obligation Capital Loan Note (subject to annual Appropriation) that will be
issued by the lowa Finance Authority at the time the loan is closed.
The proceedings have been prepared to show as a first step the receipt of any oral or
written objections from any resident or property owner to the proposed action of the
Council to authorize the form of Loan and Disbursement Agreement and issue the
Notes to the lowa Finance Authority. A summary of objections received or made, if any,
should be attached to the proceedings. After all objections have been received and
considered if the Council decides to enter into the Agreement and issue the Notes, a
form of resolution follows that should be introduced and adopted, entitled "Resolution
Instituting Proceedings to Take Additional Action."
In the event the Council decides to abandon the proposal, then the form of resolution
included in said proceedings should not be adopted. In this event, a motion merely be
adopted to the effect that such proposal is abandoned.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
�;N"'r�"� �GN,t
Michael C. Van Milligen
MCVM/jml
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Director of Finance and Budget
2
Dubuque
THE CI'TY OF �
All•Aoerica Ciry
DuB E ;,�� � ,
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Maste iece on the Misszssi i Z°°'"z°lz"z°13
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Director of Finance and Budget
SUBJECT: Proceedings to Hold the Public Hearing on the Issuance of Not to Exceed
$24,000,000 General Obligation Annual Appropriation Refunding Capital
Loan Notes
DATE: March 5, 2021
INTRODUCTION
The purpose of this memorandum is to provide suggested proceedings for a public hearing
on the issuance of a not to exceed $22,000,000 General Obligation Annual Appropriation
Refunding Capital Loan Notes which refund the Stormwater Revenue Capital Loan Notes,
Series 2015B, dated June 19, 2015 and amended September 8, 2017. A letter from
attorney Kristin Cooper detailing information on the public hearing is enclosed.
BACKGROUND
The original Stormwater Utility Revenue Capital Loan Notes (State Revolving Loan Fund
Program) was for $29,541,000 and was used for the Upper Bee Branch Creek
Restoration. This loan qualified for green infrastructure principal forgiveness of
$5,908,200. The principal was forgiven by the lowa Finance Authority in June 2020.
DISCUSSION
The intent when the Series 2015B Stormwater Revenue Capital Loan Notes were issued
was that the debt would be fully repaid by sales tax increment and not count against the
Stormwater revenue bond covenant of 110%. The Stormwater revenue bond covenant
requires that the net income in the Stormwater fund on an accrual basis exceed debt
service on all revenue bonds paid by stormwater funds by 110%.
When the loan documents for the Series 2015B Stormwater Revenue Capital Loan Notes
were prepared, the Loan and Disbursements Agreements and Notes were payable out of
the net earnings of the Stormwater Management Utility instead of the sales tax increment
fund. This caused the Series 2015B Stormwater Revenue Capital Loan Notes to count
against the Stormwater revenue bond covenant of 110%. The error in the loan documents
was discovered during Fiscal Year 2020 when the Fiscal Year 2019 audit was completed.
After discussions with City bond counsel and financial advisor, and lowa Finance
Authority's bond counsel, it was determined that the best course of action for the City was
to refund the Series 2015B Stormwater Revenue Capital Loan Notes as General
Obligation Annual Appropriation refunding bonds. The sales tax increment revenue
funding source is new in lowa, created as part of the Flood Mitigation program which
established a $36 million Flood Recovery Fund for critical recovery and redevelopment
projects in communities impacted by the devastating floods of 2019. Due to sales tax
increment being such a new source of revenue for cities, the lowa Finance Authority did
not want to amend the State Revolving Fund Loan to use sales tax increment as the
funding source of the loan. In addition, the pandemic has made the sales tax increment
revenue stream unpredictable and the forecasted revenue would not meet required
revenue tests to allow sales tax increment to be used as a pledge for the debt.
The General Obligation Annual Appropriation refunding bonds will have $1.5 million in
annual debt service that will count against the City's statutory debt limit. The lowa Finance
Authority has agreed to make the City a low-interest loan under the terms of a Loan and
Disbursement Agreement, that loan will be secured and evidenced by a General
Obligation Capital Loan Note (subject to annual Appropriation) that will be issued by the
lowa Finance Authority at the time the loan is closed.
The proceedings have been prepared to show as a first step the receipt of any oral or
written objections from any resident or property owner to the proposed action of the
Council to authorize the form of Loan and Disbursement Agreement and issue the Notes
to the lowa Finance Authority. A summary of objections received or made, if any, should
be attached to the proceedings. After all objections have been received and considered if
the Council decides to enter into the Agreement and issue the Notes, a form of resolution
follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings
to Take Additional Action."
In the event the Council decides to abandon the proposal, then the form of resolution
included in said proceedings should not be adopted. In this event, a motion merely be
adopted to the effect that such proposal is abandoned.
ACTION
I respectfully recommend the adoption of the enclosed resolution instituting the
proceedings to take additional action for the issuance of not to exceed $24,000,000
General Obligation Annual Appropriation Refunding Capital Loan Notes.
Attachments
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Cassie Ross, Assistant Director of Finance
ITEMS TO INCLUDE ON AGENDA FOR MARCH 15, 2021
CITY OF DUBUQUE, IOWA
Not to Exceed $24,000,000 General Obligation Annual Appropriation Refunding Capital Loan
Notes.
. Public hearing on the authorization of a Loan and Disbursement Agreement and the
issuance of Notes to evidence the obligation of the City thereunder.
. Resolution instituting proceedings to take additional action.
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
- 1 -
March 15, 2021
The City Council of the City of Dubuque, State of Iowa, met in Regular session, via
electronic means, Council having determined that it is impossible and impractical for all
members of the Council, other City personnel, and members of the public to be physically
present at this meeting due to the COVID-19 pandemic, 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:
Brad Cavanagh, Susan Farber, Rick Jones, David Resnick,
Laura Roussell, Danny Sprank
Absent: ___________________________________________
* * * * * * *
- 2 -
The Mayor announced that this was the time and place for the public hearing and meeting
on the matter of the authorization of a Loan and Disbursement Agreement and the issuance of
not to exceed $24,000,000 General Obligation Annual Appropriation Refunding Capital Loan
Notes in order to provide funds to pay costs of the settlement, adjustment, renewing, or extension
of any part or all of the legal indebtedness of a city, whether evidenced by bonds, warrants, or
judgments, or the funding or refunding of the same, including the Stormwater Revenue Capital
Loan Notes, Series 2015B, dated June 19, 2015, and amended September 8, 2017, an essential
corporate purpose, and that notice of the proposed action by the Council to institute proceedings
for the authorization of the Loan and Disbursement Agreement and the issuance of the Notes,
had been published pursuant to the provisions of Sections 384.24, 384.24A and 384.25 of the
Code of Iowa, as amended.
The Mayor then asked the Clerk whether any written objections had been filed by any
City resident or property owner to the proposal. The Clerk advised the Mayor and the Council
that zero written objections had been filed. The Mayor then called for oral objections to the
proposal and zero were made. Whereupon, the Mayor declared the time for receiving oral and
written objections to be closed.
- 3 -
The Council then considered the proposed action and the extent of objections thereto.
Whereupon, Council Member Jones introduced and delivered to the Clerk the Resolution
hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE AUTHORIZATION OF A LOAN AND DISBURSEMENT
AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $24,000,000 GENERAL
OBLIGATION ANNUAL APPROPRIATION REFUNDING CAPITAL LOAN NOTES", and
moved:
that the Resolution be adopted.
to ADJOURN and defer action on the Resolution and the proposal to
institute proceedings to the meeting to be held at
________ o'clock ____.M. on the ______ day of _______________, 2021,
at this place.
Council Member Roussell seconded the motion. The roll was called and the vote was,
AYES: Resnick, Sprank, Roussell, Cavanagh, Jones,
Buol, Farber
NAYS: ___________________________________________
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 86-21
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE AUTHORIZATION OF A
LOAN AND DISBURSEMENT AGREEMENT AND THE
ISSUANCE OF NOT TO EXCEED $24,000,000 GENERAL
OBLIGATION ANNUAL APPROPRIATION REFUNDING
CAPITAL LOAN NOTES
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 authorization of a
Loan and Disbursement Agreement and the issuance of not to exceed $24,000,000 General
Obligation Annual Appropriation Refunding Capital Loan Notes for the purpose of paying costs
of the settlement, adjustment, renewing, or extension of any part or all of the legal indebtedness
of a city, whether evidenced by bonds, warrants, or judgments, or the funding or refunding of the
same, including the Stormwater Revenue Capital Loan Notes, Series 2015B, dated June 19,
2015, and amended September 8, 2017, and has considered the extent of objections received
from residents or property owners as to said proposal 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, IO WA:
Section 1. That this Council does hereby institute proceedings and takes additional action
for the authorization of a Loan and Disbursement Agreement and issuance in the manner
required by law of not to exceed $24,000,000 General Obligation Annual Appropriation
Refunding Capital Loan Notes to evidence the obligation thereof for the foregoing purpose.
Section 2. That this Council does hereby consent to the terms and conditions of the SRF
Loan Program, which terms and conditions and the disclosures provided with respect thereto are
hereby acknowledged, accepted and approved.
PASSED AND APPROVED this 15th day of March, 2021.
ATTEST:
c' e�
City Clerk
Mayor
-5-
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 ineeting and tentative agenda, a copy of which was timely served on
each member of the Council and posted on a bulletin board ar 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 priar 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
, 2021.
City Clerk, City of Dubuque, State of Iowa
(SEAL)
01838627-1\10422-213
Ahlers&Cooney, P.C.
A H L E R 5 C O O N E Y Attorneys at Law
100 Court Avenue, Suite 600
A T T ❑ R N E Y 5 Des Moines, lowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
Kristin B. Cooper
515.246.0330
kcooper@ahlerslaw.com
March 4, 2021
VIA EMAIL
Ms. Jenny Larson
Director of Finance & Budget
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
Re: Dubuque, Iowa-Not to Exceed $24,000,000 General Obligation Annual
Appropriation Refunding Capital Loan Notes (State of Iowa Revolving Fund)
Dear Jenny:
We have now prepared and are enclosing with this letter suggested proceedings to be
acted upon by the City Council on the date previously fixed for the hearing.
The public hearing proceedings are prepared to show as a first step the receipt of any oral
or written objections from any resident or property owner to the proposed action of the Council
to authorize the form of Loan and Disbursement Agreement and issue the Notes to the Authority.
A summary of objections received or made, if any, should be attached to the proceedings. After
all objections have been received and considered if the City Council decides to enter into the
Agreement and issue the Notes, a form of resolution follows that should be introduced and
adopted, entitled "Resolution Instituting Proceedings to Take Additional Action."
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 Notes, 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 City Council eXceeded
its authority. In the event an appeal is filed by any resident or property owner,please let us
know as soon as possible.
Please print out and return copies of the executed hearing proceedings. We would also
appreciate electronic scans as we continue to work remotely. If you have any questions
concerning the proceedings or the SRF Program,please do not hesitate to contact us.
WISHARD t� BAILV - �SSS� GUERNSEY & Bni�v - 1893� BAILV t� STIPP - �90�� STIPP� PERRY� BANNISTER t� STARZINGER - �9�4� BANNISTER� CARPENTER�
AHLERS $i COONEY - 1950; AHLERS, COONEY, DORWEILER, ALLBEE� HAYNIE $i SMITH - 1974; AHLERS� COONEY� DORWEILER, HAYNIE� SMITH $i ALLBEE� P.C. - 1990
March 4, 2021
Page 2
Very truly yours,
Ahlers & Cooney, P.C.
Kristin Billingsley Cooper
FOR THE FIRM
KBC:seb
Enclosures
cc: Adrienne N. Breitfelder, City Clerk
Trish Gleason, Assistant City Clerk
Tionna Pooler, Independent Public Advisors, LLC
01838893-1\10422-213
STATE OF IOWA SS: �
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher �
of the Telegraph Herald, a newspaper of general �
circulation published in the City of Dubuque, County �
of Dubuque and State of Iowa; hereby certify that the �
attached notice was published in said newspaper on the �
following dates: �
03/05/2021 �
�
and for which the charge is 42.50
( �
Subscribed to before me, a Notary P�r lic in and far p
Dubuque County, Iowa, �
9
this Sth day of March, 2021 '�
�
I'�I
Nota ublic in and far Dubuque County, Iowa. l
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_�"��= Co��mm�is,slp�n �lumb�er 19�9859
'�- �R�Comm.E.xp, DEC 11,2022 �
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Ad text : NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE,
IOWA, ON THE MATTER OF THE PROPOSED AUTHORIZATION OF A LOAN
AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED
. $24,000,000 GENERAL OBLIGATION ANNUAL APPROPRIATION REFUNDING
CAPITAL LOAN NOTES FOR AN ESSENTIAL CORPORATE PURPOSE AND THE
PUBLIC HEARING ON THE AUTHORIZATION AND IS5UANCE THEREOF i.
PUBLIC NOTICE is hereby given that the City Council of the �
City of Dubuque, Iowa, will hold a public hearing on the 15th �
day of March, 2021, at 6:30 o'clock P.M., at which meeting the �
Council proposes to take additional action for the
authorization of a Loan and Disbursement Agreement and the �
issuance of not to exceed$24,000,000 General Obligation �
Annual Appropriation Refunding Capital Loan Notes for an
essential corporate purpose of the City, in order to pay costs �
of the settlement, adjustment, renewing, or extension of any
part or all of the legal indebtedness of a city, whether
evidenced by bonds, warrants, or judgments, or the funding or �
refunding of the same, including the Stormwater Revenue
Capital Loan Notes, Series 2015B, dated June 19, 2015, and
amended September 8, 2017. Principal and interest on the li
proposed Loan and Disbursement Agreement will be payable from ;i
the Debt Service Fund.
Due to public health concerns related to COVID-19, this �
meeting of the City Council will be conducted electronically, �
pursuant to Iowa Code Section 21.8, as holding the meeting in
person is impossible or impractical. Interested persons may
attend or participate in the meeting by the following method:
https://global.gotomeeting.com/j oin/337661181
You can also dial in using your phone. `
United States (Toll Free): 1 877 568 4106 a
United States: +1 (571) 317-3129 �
Access Code: 337-661-181
Please check the posted agenda in advance of the meeting for �
any updates to the manner in which the public may access the i
meeting.
At the above meeting the Council shall receive oral or
written objections from any resident or property owner of the
City, to the above action. After all objections have been
received and considered, the Council will at this meeting ar
at any adjournment thereof, take additional acti�n for the
autharization of a Loan and Disbursement Agreement and the
issuance of Notes to evidence the obligation of the City
thereunder or will abandon the proposal.
This Notice is given by arder of the City Council of the
City of Dubuque Council, Iowa, as provided by Sections 38424A
and 384.25 of the City Code of Iowa, as amended.
Dated this 5th day of March, 2021.
Adrienne N. Breitfelder �
City Clerk, City of Dubuque, State of Iowa
lt 3/5