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Issuance of Not to Exceed $3,800,000 Water Revenue Refunding Bonds, Series 2021C_HearingCity of Dubuque City Council Meeting Public Hearings # 4. Copyrighted June 21, 2021 ITEM TITLE: Public Hearing on the Issuance of Not to Exceed $3,800,000 Water Revenue Refunding Bonds, Series 2021 C SUMMARY: Proof of publication on notice of public hearing to consider City Council approval of the suggested proceedings for the public hearing on the issuance of not to exceed $3,800,000 in Water Revenue Refunding Bonds, Series 2021 C, and City Manager recommending approval. RESOLUTION Instituting proceedings to take additional action for the issuance of not to exceed $3,800,000 Water Revenue Refunding Bonds 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 Memo Supporting Documentation THE CITY OF DUtB E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque 11VIAMMIll *AmrbCftl 2007-2012-2013 2017*2019 SUBJECT: Public Hearing on the Issuance of Not to Exceed $3,800,000 Water Revenue Refunding Bonds, Series 2021C DATE: June 14, 2021 Director of Finance and Budget Jennifer Larson recommends City Council approval of the suggested proceedings for the public hearing on the issuance of not to exceed $3,800,000 in Water Revenue Refunding Bonds, Series 2021 C. $3,720,000 of the proceeds is intended to provide funds to refund two previously issued bond series that are now callable to realize estimated interest savings of $374,076 and $80,000 is intended to provide funds for bond issuance costs. Repayments of the debt will be Water user fees. On May 12, 2021, Moody's Investors Service upgraded the City's credit rating of A2 to All on the water enterprise revenue bonds. The report cited strong cash reserves, strong capital and operating planning, unlimited rate setting authority, narrow but stable debt service coverage on total debt, and long-term trend of reduced water usage which could impact revenue performance. 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 $3,800,000 Water Revenue 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. I concur with the recommendation and respectfully request Mayor and City Council approval. Ila, Michael C. Van Milligen MCVM/jmI Attachment cc: Crenna Brurnwell, City Attorney Cori Burbach, Assistant City Manager Jennifer Larson, Director of Finance and Budget 2 THE CITY OF D �j-7 UB TE Masterpiece on the Mississippi' TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Director of Finance and Budget Dubuque aAmricagill 2007-2012-2013 2017*2019 SUBJECT: Public Hearing on the Issuance of Not to Exceed $3,800,000 Water Revenue Refunding Bonds, Series 2021C DATE: June 14, 2021 INTRODUCTION The purpose of this memorandum is to provide the suggested proceedings for the public hearing on the issuance of Water Revenue Refunding Bonds, the proceeds of which will be used to pay the costs of refunding outstanding Water Revenue Bonds, Series 2010D dated September 21, 2010, and Water Revenue Bonds, Series 2008D dated November 4,2008. BACKGROUND The Series 201 OD Water Revenue Bonds were used to pay costs associated with water main replacements and other water system improvements and the Series 2008D Water Revenue Bonds were used to pay costs associated with water main replacements and repairs, construction of water main extensions, and the acquisition and installation of pump station radio communications equipment and facilities. DISCUSSION Of the bond amount: $3,720,000 is intended to provide funds to refund previously issued bond series 2008D and 201 OD that are now callable to realize estimated interest savings of $374,076 and $80,000 is intended to provide funds for bond issuance costs. Repayments of the debt will be Water user fees. On May 12, 2021, Moody's Investors Service upgraded the City's credit rating of A2 to Al on the water enterprise revenue bonds. The report cited strong cash reserves, strong capital and operating planning, unlimited rate setting authority, narrow but stable debt service coverage on total debt, and long-term trend of reduced water usage which could impact revenue performance. 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 $3,800,000 Water Revenue 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. RECOMMENDATION I respectfully recommend the adoption of the enclosed resolutions instituting the proceedings to take additional action. JML Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Cassie Ross, Assistant Finance Director 104 ITEMS TO INCLUDE ON AGENDA CITY OF DUBUQUE, IOWA Not to exceed $3,800,000 Water Revenue Refunding Bonds Public hearing on the issuance. 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 - June 21, 2021 The City Council of the City of Dubuque, State of Iowa, met in regular session, via electronic means, an in person meeting being deemed 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: Cavanagh, Farber, Jones, Resnick, Roussell, Sprank Absent: ___________________________________________ Vacant: ___________________________________________ * * * * * * * - 2 - 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 $3,800,000 Water Revenue Refunding Bonds, of the City of Dubuque, State of Iowa, to provide funds to pay the costs of refunding outstanding revenue obligations of the City, including Water Revenue Bonds, Series 2010D dated September 21, 2010, and Water Revenue Bonds, Series 2008D dated November 4, 2008, and that notice of the proposal to issue the Bonds had been published pursuant to the provisions of Sections 384.82 and 384.83 of the Code of Iowa. The Mayor then asked the Clerk whether any written objections had been filed by any resident or property owner of the City to the issuance of the Bonds. The Clerk advised the Mayor and the Council that zero written objections had been filed. The Mayor then called for oral objections to the issuance of the Bonds and zero were made. Whereupon, the Mayor declared the time for receiving oral and written objections to be closed. Whereupon, the Mayor declared the hearing on the issuance of the Bonds to be closed. The Council then considered the proposed action and the extent of objections thereto. Whereupon, Council Member Cavanagh 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 $3,800,000 WATER REVENUE REFUNDING BONDS", and moved: 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 __________ _____.M. on the __________ day of _______________, 2021, at this place. Council Member Roussell seconded the motion. The roll was called and the vote was, AYES: Roussell, Resnick, Sprank, Cavanagh, Jones, Farber, Buol ___________________________________________ NAYS: ___________________________________________ Whereupon, the Mayor declared the measure duly adopted. X Resolution No. 215-21 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $3,800,000 WATER REVENUE REFUNDING BONDS WHEREAS, pursuant to notice published as required by law, the City Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of not to exceed $3,800,000 Water Revenue Refunding Bonds, in order to provide funds to pay the costs of refunding outstanding revenue obligations of the City, including Water Revenue Bonds, Series 201 OD dated September 21, 20 10, and Water Revenue Bonds, Series 2008D dated November 4, 2008, 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, STATE OF IOWA: Section 1. That this Council does hereby institute proceedings and take additional action for the authorization and the issuance in the manner required by law of not to exceed $3,800,000 Water Revenue Refunding Bonds, for the foregoing purposes. PASSED AND APPROVED this 21st day of June, 2021. ATTEST: Mayor P r0em City Clerk -3 - 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 hereto affixed this nd day of 2021. City Clerk, City of Dubuque, State of Iowa Ahlers & Cooney, P.C. Attorneys at Law AHLERS COONEY 100 Court Avenue, Suite 600 A T T 0 R N E Y S Des Moines, Iowa 50309-2231 Phone: 515-243-7611 Fax: 515-243-2149 www.ahlerslaw.com June 9, 2021 VIA EMAIL Ms. Jenny Larson Director of Finance & Budget City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 Kristin B. Cooper 515.246.0330 kcooper@ahlerslaw.com Re: Dubuque, Iowa - Not to Exceed $3,800,000 Water Revenue Refunding Bonds Dear Jenny: We have prepared and are including with this letter 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 384.83. The 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 issue the Bonds. 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 not to abandon the proposal to issue the Bonds, a form of resolution follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of not to exceed $3,800,000 Water Revenue Refunding Bonds." Action Must Be Taken At The Hearin . The Council is required by statute to adopt the resolution instituting proceedings to issue the Bonds at the hearing, or an adjournment thereof. If necessary to adjoum, the minutes are written to accommodate that action. 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. WsHARD & BAiLY - 1888; GuERNsEY & BAiLY - 1893; BAiLy & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER, AtRERS & COONEY - 1950; AHLERs, COONEY, DoRwEIIER, AuBEE, HAYNIE & Smnu - 1974; AHLERs, COONEY, DoRwEILER, HAYNIE, Skm & ALIBEE, P.C. - 1990 June 9, 2021 Page 2 Appeal to District Court. Section 384.83 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. Please let us know as soon as possible in the event an appeal is filed by any resident or property owner. If you have any questions, please let us know. Very truly yours, Ahlers & Cooney, P.C. Kristin Billingsley Cooper FOR THE FIRM KBC:sb cc: Adrienne N. Breitfelder, City Clerk Trish Gleason, Assistant City Clerk Tionna Pooler, Independent Public Advisors, LLC 01893229-1\10422-215 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: 06/11/2021 and for which the charge is 35.49 Subscribed to be ore me, a Notary is in and for Dubuque County, Iowa, this 1Ith day of June, 2021 Not Qublic in and for Dubuq e County, Iowa. h"• . JANET K. PAPE 4 `r' = Canmlaslon Number 199669 �a�- Ny Comm. Ezp. DEC 11, =2 Ad text : NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, STATE OF IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $3,800,000 WATER REVENUE REFUNDING BONDS, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, State of Iowa, will hold a public hearing on the 21st day of June, 2021, at 6:30 P.M., at which meeting the Council proposes to take additional action for the issuance of not to exceed $3,800,000 Water Revenue Refunding Bonds, to provide funds to pay the costs of refunding outstanding revenue obligations of the City, including Water Revenue Bonds, Series 2010D dated September 21, 2010, and Water Revenue Bonds, Series 2008D dated November 4, 2008. The Bonds will not constitute general obligations or be payable in any manner by taxation, but will be payable from and secured by the Net Revenues of the Municipal Water System. 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/joirV337661181 You can also dial in using your phone. United States (Toll Free): 1 877 568 4106 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 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 the meeting or at any adjournment thereof, take additional action for the issuance of the Bonds or will abandon the proposal to issue said Bonds. This notice is given by order of the City Council of the City of Dubuque, State of Iowa, as provided by Sections 384.82 and 384.83 of the Code of Iowa. Dated this I Ith day of June, 2021. Adrienne N. Breitfelder City Clerk, City of Dubuque, State of Iowa It 6/I1