Sewer Revenue Capital Loan Notes $65mMasterpiece on the Mississippi
TO: 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
$65,000,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving
Fund Loan)
DATE: July 20, 2010
Finance Director Ken TeKippe recommends City Council approval of the suggested
proceedings for the public hearing on the on the issuance of not to exceed $65,000,000
Sewer Revenue Capital Loan Notes from the Iowa Water Pollution Control Works
Financing Program. This will permit the City to take advantage of the 3% fixed interest
rate for 26 years with a .25% annual administrative fee with the borrowing. The funds
will be used to pay the costs of acquisition, construction, reconstruction, extending,
remodeling, improving, repairing and equipping all or part of the Municipal Sewer
System, including those costs associated with the Water Pollution Control Plant
Modification Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
Michael C. Van Milligen
Dubuque
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All-America City
1111 '
2007
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J TeKippe, Finance Director
DATE: July 20, 2010
Dubuque
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M- AmedcaCity
1
2007
SUBJECT: Proceedings for Public Hearing on the Issuance of not to exceed
$65,000,000 Sewer Revenue Capital Loan Notes (State of Iowa Revolving
Fund Loan)
The purpose of this memorandum is to provide the suggested proceedings for the public
hearing on the issuance of not to exceed $65,000,000 Sewer Revenue Capital Loan
Notes from the Iowa Water Pollution Control Works Financing Program. The hearing
called by the enclosed proceedings will permit the City to take advantage of the 3%
fixed interest rate for 26 years with a .25% annual administrative fee associated with the
borrowing. The planning and design loans for this project will be rolled into this State of
Iowa Revolving Fund Loan.
The loan funds will be used to provide funds to pay the costs of acquisition,
construction, reconstruction, extending, remodeling, improving, repairing and equipping
all or part of the Municipal Sewer System, including those costs associated with the
Water Pollution Control Plant Modification Project.
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 Notes to be closed. Immediately
following, a resolution is to be introduced and adopted entitled "Resolution Instituting
Proceedings to Take Additional Action for the Authorization of a Loan and Disbursement
Agreement and the Issuance of $65,000,000 Sewer Revenue Capital Loan Notes."
Section 384.24A and 384.82 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 loan, 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 the Council
decides to abandon the proposal to issue said loans, 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 loan proposal is abandoned.
The action step for City Council is to hold the public hearing and approve the resolution.
A letter from attorney William Noth detailing information on the bond hearing is
enclosed.
KJT /jmg
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
NOTICE AND CALL OF PUBLIC MEETING
(This Notice to be posted)
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: August 2, 2010
Time of Meeting: 6:30 o'clock P.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 said
meeting is as follows:
Not to exceed $65,000,000 Sewer Revenue 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.
Such additional matters as are set forth on the additional 10 page(s) attached hereto.
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
ity Clerk, Dubuque, Iowa
* * * * * * * * **
August 3, 2010
The City Council of Dubuque, Iowa, met in regular session, in the Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa, at a6:30 o'clock P.M., on the above date.
There were present Mayor Roy D. Buol, in the chair, and the following named Council
Members:
Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch,
David Resnick, Dirk Voetberg
Absent: None
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 by
and between the City and the Iowa Finance Authority, and the issuance to the Iowa
Finance Authority of not to exceed $65,000,000 Sewer Revenue Capital Loan Notes to
evidence the obligations of the City under said Loan and Disbursement Agreement, in
order to provide funds to pay costs of acquisition, construction, reconstruction, extending,
remodeling, improving, repairing and equipping all or part of the Municipal Sewer
System, including those costs associated with the Water Pollution Control Plant
Modification Project, 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 3 84.24A
and 384.82 of the City Code of Iowa, as amended.
The Mayor then asked the City Clerk whether any written objections had been
filed by any City resident or property owner to the proposal. The City Clerk advised the
Mayor and the Council that no written objections had been filed. The Mayor then called
for oral objections to the proposal and none 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)
The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Joyce Connors 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 $65,000,000 SEWER REVENUE CAPITAL LOAN NOTES ", and moved:
❑ 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
was,
that the Resolution be adopted.
day of , 2010, at this place.
Council Member Ric Jones seconded the motion. The roll was called and the vote
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick, Voetberg
NAYS: None
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 293-10
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE AUTHORIZATION OF A LOAN
AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT
TO EXCEED $65,000,000 SEWER REVENUE 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 by and between the City and the
Iowa Finance Authority, and the issuance to the Iowa Finance Authority of not to exceed
$65,000,000 Sewer Revenue Capital Loan Notes to evidence the obligations of the City
under said Loan and Disbursement Agreement, for the purpose of paying costs of
acquisition, construction, reconstruction, extending, remodeling, improving, repairing and
equipping all or part of the Municipal Sewer System, including those costs associated
with the Water Pollution Control Plant Modification Project, 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, IOWA:
Section 1. That this Council does hereby institute proceedings and takes
additional action for the authorization of a Loan and Disbursement Agreement by and
between the City and the Iowa Finance Authority, and the issuance to the Iowa Finance
Authority in the manner required by law of not to exceed $65,000,000 Sewer Revenue
Capital Loan Notes for the foregoing purpose.
Section 2. That this Council does hereby consent to the terns and conditions of
the SRF Loan Program, which terms and conditions and the disclosures provided with
respect thereto are hereby acknowledged, accepted and approved.
Section 3. That the City Clerk, with the assistance of the City Attorney and
bond counsel, is hereby authorized and directed to proceed with the preparation of such
documents and proceedings as shall be necessary to authorize the City's participation in
the SRF Loan Program, to select a suitable date for final Council authorization of the
required Loan and Disbursement Agreement and issuance of the Note to evidence the
City's obligations thereunder, and to take such other actions as the Clerk shall deem
necessary to permit the completion of a loan on a basis favorable to the City and
acceptable to this Council.
Section 4. This Resolution shall serve as a declaration of official intent under
Treasury Regulation 1.150 -2 and shall be maintained on file as a public record of such
intent. It is reasonably expected that the sewer utility fund moneys may be advanced from
time to time for capital expenditures which are to be paid from the proceeds of the above
loan agreement. The amounts so advanced shall be reimbursed from the proceeds of the
Loan Agreement not later than eighteen months after the initial payment of the capital
expenditures or eighteen months after the property is placed in service. Such
advancements shall not exceed the loan amount authorized in this Resolution unless the
same are for preliminary expenditures or unless another declaration of intention is
adopted.
2010.
ATTEST:
PASSED AND APPROVED this 2nd day of • August
STATE OF IOWA
COUNTY OF DUBUQUE
SEAL
D CORNELL \662240.1 \WP\ 10422.112
CERTIFICATE
) SS
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true 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 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 said 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 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 3 day of
August, 2010.
ity Clerk, Dubuque, Iowa
CIG -3