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
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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