General Obligation Loan Notes $3MMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
DATE: August 10, 2010
Dubuque
kntd
All-America City
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$3,000,000 General Obligation Capital Loan Notes
2007
Finance Director Ken TeKippe recommends that a public hearing be set for
September 7, 2010, on the proposal to issue not to exceed $3,000,000 General
Obligation Capital Loan Notes, the proceeds of which will be used to pay costs of
constructing the Sycamore Street and 16 Street bridge improvements being
undertaken as part of the Bee Branch Creek Restoration Project. Although the City is
selling General Obligation Capital Loan Notes to support the project, repayment of the
debt will be from Storm Water Utility Revenues.
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
1
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Michael C. Van Milligen
n
Masterpiece on the Mississippi
Dubuque
btal
A1- Amedca cAy
2007
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director k. c ° -c
SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed
$3,000,000 General Obligation Capital Loan Notes
DATE: August 12, 2010
INTRODUCTION
The purpose of this memorandum is to recommend the setting of a public hearing on
the proposal to issue General Obligation Capital Loan Notes, the proceeds of which will
be used to pay costs of constructing the Sycamore Street and 16th Street bridge
improvements being undertaken as part of the Bee Branch Creek Restoration Project
and ordering publication of a notice of hearing consistent with the provisions of Code
Sections 384.24A and 384.25. Although we are selling General Obligation Capital Loan
Notes to support the project, repayment of the debt will be from Storm Water Utility
Revenues. A letter from attorney William Noth detailing information on the bond hearing
is enclosed.
The majority of the Lower Bee Branch Creek Restoration Project is being financed with
a not to exceed $10,100,000 Storm Water Utility Revenue Capital Loan Notes (State of
Iowa Revolving Fund Loan).
BACKGROUND
There has been year -long project discussion between the City of Dubuque Engineering
Department and the Iowa Department of Natural Resources regarding this project.
Representative Gabe Lee, when issuing the construction permit, recently informed City
Engineering staff that the bridges are not eligible for Storm Water Utility Revenue
Capital Loan Notes (State of Iowa Revolving Fund Loan) financing. This results in the
City needing to find alternative financing for this portion of the project on short notice.
The short-term borrowing (up to three years) for the loan is callable at anytime.
Accordingly, the next time the City does a scheduled bond issuance we can convert this
debt to long -term when we sell bonds. Interest rates for short-term borrowings are at a
historic low. We will be able to do this without assistance from PFM and a bond rating
from Moody's and therefore avoid their bond issuance costs. We would have attorney
fees for assistance with Council Proceedings.
ACTION STEP
The requested action step for City Council is to adopt the attached resolution fixing the
date of September 7, 2010 for a public hearing on the proposition of selling not to
exceed $3,000,000 in General Obligation Capital Loan Notes of Dubuque, Iowa and
providing for publication of notice. The resolution authorizes distribution of a Request
for Proposal to purchase the notes to local financial institutions. The City will send a
term sheet out to local financial institutions to solicit proposals.
KJT /jmg
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
KT /jg
Enclosures
William J. Noth
wnoth @ahlerslaw.com
AHLERS
BY OVERNIGHT DELIVERY
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001 -4864
Dear Mr. TeKippe:
COONEY, P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE: 515-243-7611
FAX: 515- 243 -2149
W W W.AHLERSLAW.COM
August 12, 2010
Re: Not to exceed $3,000,000 General Obligation Capital Loan Notes
Direct Dial:
(515) 246 -0332
We have now prepared and are enclosing suggested proceedings to be acted upon
by the Council in fixing the date of a meeting on the proposition to enter into a loan
agreement and issue the above mentioned Notes and ordering publication of a notice of
hearing consistent with the provisions of Code Sections 384.24A and 384.25.
Notice of this meeting must be published at least once in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The date of publication is to be not less than four clear
days nor more than twenty days before the date of the public meeting on the issuance of
the Notes. In computing time, the date of publication should be excluded. If the last day
falls on Sunday, the whole of the following Monday should be excluded.
At the time of hearing the Council shall receive oral or written objections from any
resident or property owner to the proposed action to enter into a loan agreement and issue
the Notes. After all objections have been received and considered, the Council is
required, at that meeting or at any adjournment thereof, to take additional action for the
authorization of a loan agreement and the issuance of the Notes or to abandon the
proposal.
The Council is required by statute to adopt the resolution instituting proceedings to
enter into a loan agreement and issue the Notes at the hearing -- or an adjournment
thereof.
WISHARD & BAILY - 1888; GUERNSEY & BAILY - 1893; BAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER,
AHLERS & COONEY - 1950: AHLERS. COONEY. DORWEILER. ALLBEE. HAYNIE & SMITH - 1974: AHLERS. COONEY, DORWEILER. HAYNIE. SMITH & ALLBEE. P.C.
August 12, 2010
Page 2
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office, together with publisher's affidavit of publication of notice of
hearing. We are also enclosing an extra copy of the notice of hearing to be delivered
to the newspaper for publication purposes. A certificate to attest the proceedings is
also enclosed.
We will prepare and forward to you in the near future, suggested procedure to be
acted upon on the date of hearing. If you have any questions pertaining to the proceedings
enclosed or the above instructions, please do not hesitate to either write or call.
WJN:dc
encl.
cc: Jenny Larson (w /encl.)
comell/ 665491.1 /MS Word\ 10422.116
Very truly yours,
William J. Noth
(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: August 16, 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 the
meeting is as follows:
Not to exceed $3,000,000 General Obligation Capital Loan Notes
• Resolution fixing date for a meeting on the proposition to authorize a Loan
Agreement and the issuance of Notes to evidence the obligations of the City
thereunder.
Such additional matters as are set forth on the additional 13 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 the governmental body.
41 Ifi■L
City Clerk, City of Dubuque, Iowa
August 17, 2010
The City Council of the City of Dubuque, Iowa, met in regular session, in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 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:
Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch, David
Resnick
Absent: None
Council Member Kevin Lynch introduced the following Resolution entitled
"RESOLUTION FIXING DATE FOR A MEETING ON THE AUTHORIZATION OF
A LOAN AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $3,000,000
GENERAL OBLIGATION CAPITAL LOAN NOTES OF THE CITY OF DUBUQUE,
IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF ", and moved
that the same be adopted. Council Member Karla Braig seconded the motion to adopt.
The roll was called and the vote was,
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick
NAYS: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 329 -10
RESOLUTION FIXING DATE FOR A MEETING ON THE
AUTHORIZATION OF A LOAN AGREEMENT AND THE
ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL
OBLIGATION CAPITAL LOAN NOTES OF THE CITY
OF DUBUQUE, IOWA, AND PROVIDING FOR
PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa,
should provide for the authorization of a Loan Agreement and the issuance of General
Obligation Capital Loan Notes, to the amount of not to exceed $3,000,000, as authorized
by Sections 384.24A and 384.25, Code of Iowa, as amended, for the purpose of providing
funds to pay costs of carrying out an essential corporate purpose project as hereinafter
described; and
WHEREAS, the Loan Agreement and Notes shall be secured by the Debt Service
Fund but are expected to be payable from available Storm Water Utility revenues; and
WHEREAS, before a Loan Agreement may be authorized and General Obligation
Capital Loan Notes issued to evidence the obligation of the City thereunder, it is
necessary to comply with the provisions of the City Code of Iowa, as amended, and to
publish a notice of the proposal and of the time and place of the meeting at which the
Council proposes to take action for the authorization of the Loan Agreement and Notes
2
and to receive oral and /or written objections from any resident or property owner of the
City to such action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That this Council meet in the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the 7 day of September, 2010, for the
purpose of taking action on the matter of the authorization of a Loan Agreement and the
issuance of not to exceed $3,000,000 General Obligation Capital Loan Notes to evidence
the obligations of the City thereunder for an essential corporate purpose of the City, the
proceeds of which will be used to pay costs of constructing the Sycamore Street and 16th
Street bridge improvements being undertaken as part of the Bee Branch Creek
Restoration Project.
Section 2. The Finance Director is authorized and directed to proceed on behalf of
the City with the negotiation of terms of a Loan Agreement and the issuance of General
Obligation Capital Loan Notes evidencing the City's obligations to a principal amount of
not to exceed $3,000,000, to distribute a Request for Proposals to purchase the Notes to
local financial institutions, to select a date for the final approval thereof, to cause to be
prepared such notice and sale information as may appear appropriate, to distribute the
same on behalf of the City and this Council and otherwise to take all action necessary to
permit the completion of a loan on a basis favorable to the City and acceptable to the
Council.
Section 3. That the Clerk is hereby directed to cause at least one publication to be
made of a notice of the meeting, in a legal newspaper, printed wholly in the English
language, published at least once weekly, and having general circulation in the City. The
publication to be not less than four clear days nor more than twenty days before the date
of the public meeting on the issuance of the Notes.
form:
Section 4. The notice of the proposed action shall be in substantially the following
3
NOTICE OF MEETING OF THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE
PROPOSED AUTHORIZATION OF A LOAN
AGREEMENT AND THE ISSUANCE OF NOT TO
EXCEED $3,000,000 GENERAL OBLIGATION CAPITAL
LOAN NOTES (FOR AN ESSENTIAL CORPORATE
PURPOSE) AND THE PUBLIC HEARING ON THE
AUTHORIZATION AND ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the 7 day of September, 2010, at 6:30 o'clock P.M., in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the
Council proposes to take additional action for the authorization of a Loan Agreement and
the issuance of not to exceed $3,000,000 General Obligation Capital Loan Notes, for an
essential corporate purpose of the City, in order to pay costs of constructing the
Sycamore Street and 16th Street bridge improvements being undertaken as part of the
Bee Branch Creek Restoration Project. Principal and interest on the proposed Loan
Agreement will be secured by the Debt Service Fund, but are expected to be payable
from available Storm Water Utility revenues.
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 or at any adjournment thereof,
take additional action for the authorization of a Loan Agreement and the issuance of
Notes to evidence the obligation of the City thereunder or will abandon the proposal.
This Notice is given by order of the Council of the City of Dubuque, State of
Iowa, as provided by Sections 384.24A and 384.25 of the City Code of Iowa, as
amended.
Dated this 20 day of August, 2010.
(End of Notice)
4
City Clerk, City of Dubuque, Iowa
ATTEST:
PASSED AND APPROVED this 16th day of August
5
‘if Mayor
, 2010.
STATE OF IOWA
COUNTY OF DUBUQUE
CERTIFICATE
) SS
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 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.
2010.
(SEAL)
WITNESS my hand and the seal of the City hereto affixed this 17 day of August,
cornell/ 665489.1 /MSWord\10422
rty Clerk, City of Dubuque, State of Iowa