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Sewer Revenue Capital Loan Notes_$10MMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $10,100,000 Storm Water Utility Revenue Capital Loan Notes (State of Iowa Revolving Fund Loan) DATE: August 10, 2010 Michael C. Van Milligen Dubuque WWI AN- Amercacnr 1111 ! 2007 Finance Director Ken TeKippe recommends that a public hearing be set for September 20, 2010 on the authorization of a loan and disbursement agreement and the issuance of not to exceed $10,100,000 Storm Water Utility Revenue Capital Loan Notes through the Iowa Water Pollution Control Works Financing Program. The loan funds will be used to provide funds to pay the costs of constructing storm water drainage projects and improvements, including those costs associated with the Lower Bee Branch Creek Restoration Project and the refinancing of the $1,040,000 Planning and Design portion of the $1,889,521 General Obligation Capital Loan Notes Anticipation Project Note, Series 2006, dated December 28, 2006, issued in respect of such costs. The City originally intended to borrow $13,100,000 through the State of Iowa Revolving Loan Fund for the entire Lower Bee Branch Project. However, the City was recently informed that the cost of bridge construction is not an eligible expense for funding under the State of Iowa Revolving Fund Loan Program. The $3 million in financing needed for the two bridges part of the project (Sycamore Street and 16th Street) are now being recommended to be financed through an interim short-term borrowing with a local financial institution. The State Revolving Loan Fund borrowing has been reduced to $10,100,000 accordingly. A separate public hearing will be held on this short-term borrowing. 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 Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Kenneth J TeKippe, Finance Director � �k- SUBJECT: Proceedings to Set Public Hearing on the Issuance of not to exceed $10,100,000 Storm Water Utility Revenue Capital Loan Notes (State of Iowa Revolving Fund Loan) DATE: August 12, 2010 Dubuque AI-AmedcaCity 11111 2007 INTRODUCTION The purpose of this memorandum is to recommend the setting of a public hearing on the authorization of a loan and disbursement agreement and the issuance of not to exceed $10,100,000 Storm Water Utility Revenue Capital Loan Notes through 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 20 years with a .25% annual administrative fee associated with the borrowing. There is a one -time 1% loan origination fee for the borrowing. The City will review the possibility of extending the repayment schedule. BACKGROUND The loan funds will be used to provide funds to pay the costs of constructing storm water drainage projects and improvements, including those costs associated with the Lower Bee Branch Creek Restoration Project and the refinancing of the $1,040,000 Planning and Design portion of the $1,889,521 General Obligation Capital Loan Notes Anticipation Project Note, Series 2006, dated December 28, 2006, issued in respect of such costs. The City originally intended to borrow $13,100,000 through the State of Iowa Revolving Loan Fund for the entire Lower Bee Branch Project. However, the City was recently informed that the cost of bridge construction is not an eligible expense for funding under the State of Iowa Revolving Fund Loan Program. The $3 million in financing needed for the two bridges part of the project (Sycamore Street and 16th Street) are now being recommended to be financed through an interim short-term borrowing with a local financial institution. The State Revolving Loan Fund borrowing has been reduced to $10,100,000 accordingly. A separate public hearing will be held on this short-term borrowing. ACTION STEP The requested action step for City Council is to adopt the attached resolution fixing the date of September 20, 2010 for a public hearing on the proposition of issuing not to exceed $10,100,000 in Storm Water Utility Revenue Capital Loan Notes of Dubuque, Iowa and providing for publication of notice. A special notice is applicable to the issuance of storm water bonds or notes, with the date of publication of the notice being not less than thirty days before the public hearing. 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 WILLIAM J. NOTH WNOTH @AHLERSLAW.COM BY OVERNIGHT DELIVERY Mr. Ken TeKippe Finance Officer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 -4864 Dear Mr. TeKippe: AHLERS &COONEY, P.C. ATTORNEYS AT LAW 100 COURT AVENUE • SUITE 600 DES MOINES, IOWA 50309 -2231 PHONE 515 - 243 -7611 FAX: 515- 243 -2149 WWW.AHLERSLAW.COM August 12, 2010 RE: Not to exceed $10,100,000 Storm Water Utility Revenue Capital Loan Notes 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 issue the above mentioned Notes and ordering publication of a notice of hearing pursuant to the provisions of Code Sections 384.24A and 384.84A. A special notice requirement is applicable here. 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 thirty (30) clear days before the date of 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. In order to hold the hearing at the September 20, 2010 meeting, the notice therefore should be published by no later than Friday, August 20, 2010. Direct Dial: (515)246 -0332 August 12, 2010 Page 2 At any time before the date of the hearing, a petition may be filed with the Clerk requesting that the issuance of the Notes be submitted to an election. To qualify, a petition must be signed by at least three percent (3 %) of the registered voters of the City. 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. As always, we would appreciate having a certified copy of the enclosed proceedings returned to us following the Council's action for our transcript of the action taken, as well as a copy of the publisher's affidavit with respect to the publication of the notice once it becomes available. If you have any questions concerning the enclosed proceedings, please don't hesitate to contact me. WJN:dc encl. cc: Jeanne Schneider (w /originals) Jenny Larson Barry Lindahl comell/ 665255.1 /MSWord\10422.115 Yours very truly, William J. Noth NOTICE AND CALL OF PUBLIC MEETING (This Notice to be posted) Governmental Body: The City Council 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 said meeting is as follows: Not to exceed $10,100,000 Storm Water Utility Revenue Capital Loan Notes Resolution fixing date for a meeting on the proposition to authorize a Loan and Disbursement Agreement and the issuance of Capital Loan 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 said governmental body. 1 City Clerk, 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 2 Council Member Kevin Lynch introduced the following Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $10,100,000 STORM WATER UTILITY REVENUE CAPITAL LOAN NOTES OF DUBUQUE, IOWA, AND DIRECTING 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. 330 -10 RESOLUTION FIXING DATE FOR A MEETING ON THE AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $10,100,000 STORM WATER UTILITY REVENUE CAPITAL LOAN NOTES OF DUBUQUE, IOWA, AND DIRECTING 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 and Disbursement Agreement and the issuance of Storm Water Utility Revenue Capital Loan Notes, in the amount of not to exceed $10,100,000, as authorized by Sections 384.24A and 384.84A, Code of Iowa, as amended, for the purpose of providing funds to pay costs as hereinafter described; and WHEREAS, the City has applied for a loan through the Iowa Water Pollution Control Works Financing Program pursuant to which the Iowa Finance Authority has agreed to purchase the City's Notes and has requested that such Notes be issued as a single Note in a denomination equal to the total amount of the issue as authorized by Chapter 384 of the City Code of Iowa; and WHEREAS, the Loan and Disbursement Agreement and Note shall be payable solely and only out of the net earnings of the Storm Water Management Utility System and shall be a first lien on the future net earnings of the Utility; and shall not be general 3 obligations of the City or payable in any manner by taxation and the City shall be in no manner liable by reason of the failure of the net revenues to be sufficient for the payment of the Loan and Disbursement Agreement and Note; and WHEREAS, before a Loan and Disbursement Agreement may be authorized and Storm Water Utility Revenue 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 and Disbursement Agreement and Note and to receive oral and/or written objections from any resident or property owner of the City to such action, and the right to petition for an election thereon. 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 20 day of September, 2010, for the purpose of taking action on the matter of the authorization of a Loan and Disbursement Agreement and the issuance of not to exceed $10,100,000 Storm Water Utility Revenue Capital Loan Notes to evidence the obligations of the City thereunder, the proceeds of which will be used to provide funds to pay the costs of constructing storm water drainage projects and improvements, including those costs associated with the Lower Bee Branch Creek Restoration Project and the refinancing of a portion of the $1,889,521 General Obligation Capital Loan Notes Anticipation Project Note, Series 2006, dated December 28, 2006, issued in respect of such costs. Section 2. That the Clerk cause publication to be made of a notice of said meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication not less than thirty (30) clear days before the date of said public meeting on the issuance of the Note. form: Section 3. The notice of the proposed action shall be in substantially the following 4 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 $10,100,000 STORM WATER UTILITY REVENUE CAPITAL LOAN NOTES, 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 20 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 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 $10,100,000 Storm Water Utility Revenue Capital Loan Notes, at a rate not exceeding 6 %, to evidence the obligations of the City under said Loan and Disbursement Agreement, in order to provide funds to pay the costs of constructing storm water drainage projects and improvements, including those costs associated with the Lower Bee Branch Creek Restoration Project and the refinancing of a portion of the $1,889,521 General Obligation Capital Loan Notes Anticipation Project Note, Series 2006, dated December 28, 2006, issued in respect of such costs. The Notes 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 Storm Water Management Utility System. Pursuant to Chapter 44, Article V of the Dubuque City Code, storm water management charges are imposed upon and collected from the owners or occupants of all lots, parcels of real estate and buildings that discharge storm water or surface or subsurface waters to the City's Storm Water Management Utility System. Separate charges, based on a single family unit" ( "SFU ") rate, are imposed on single - family residential property, nonsingle- family residential property, and nonresidential property. The SFU rate is the dollar value periodically determined and assigned to each single family unit (being the average impervious area of a single- family residential property located within the City, currently 2,917 square feet), as a charge for storm water management services, and is expressed as $X.XX per SFU. The SFU rates are described in said Chapter 44 and may be adjusted from time to time as set forth therein. At any time before the date of said meeting, a petition asking that the question of issuing such Notes be submitted to the legal voters of the City may be filed with the City Clerk, pursuant to the provisions of Section 384.84A of the City Code of Iowa. 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 5 received and considered, the Council will at this meeting or at any adjournment thereof, take additional action for the authorization of said Loan and Disbursement Agreement and the issuance of Notes or will abandon the proposal to issue the Notes. This Notice is given by order of the Council of Dubuque, Iowa, as provided by Sections 384.24A and 384.84A of the City Code of Iowa, as amended. Dated this 17 day of August, 2010. City Clerk of Dubuque, Iowa (End of Notice) 6 ATTEST: PASSED AND APPROVED this 16th day of August , 2010. 7 STATE OF IOWA COUNTY OF DUBUQUE 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 17 day of August, 2010. SEAL comely 665254.1 /MSWord\10422.115 CERTIFICATE ) SS ty Clerk, Dubuque, Iowa 8