General Obligation Loan Notes $3MMasterpiece 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
$3,000,000 General Obligation Capital Loan Notes (Short Term Loan)
DATE: September 1, 2010
Finance Director Ken TeKippe recommends City Council approval of the suggested
proceedings for the public hearing on the issuance of 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 16th 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.
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
All4inelcallly
2007
Masterpiece on the Mississippi
TO: Michael C. Van Mil!igen, City Manager
FROM: Kenneth J. TeKippe, Finance Director e
SUBJECT: Proceedings for Public Hearing on the Issuance of not to exceed
$3,000,000 General Obligation Capital Loan Notes (Short Term Loan)
DATE: September 1, 2010
Dubuque
btirg
Ail-AmedcaCity
11111
2007
INTRODUCTION
The purpose of this memorandum is to provide the suggested proceedings for the public
hearing on the issuance of General Obligation Capital Loan Notes prepared by our
Bond Counsel and to present a resolution for City Council to adopt entitled "Resolution
Authorizing a Loan Agreement and the Issuance of not to exceed $3,000,000 General
Obligation Capital Loan Notes." The proceeds 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 altemative 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 are able to do this borrowing without assistance from Public Financial
Management and a bond rating from Moody's and therefore avoid their bond issuance
costs. We will have attorney fees for assistance with Council Proceedings.
ACTION STEP
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 Authorizing a
Loan Agreement and the Issuance of not to exceed $3,000,000 General Obligation
Capital Loan Notes."
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 284.25 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.
KJT /jmg
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
(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: September 7, 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.
• Public hearing on the authorization of a Loan 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 15 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.
ity Clerk, City of Dubuque, Iowa
The City Council of the City of Dubuque, State of 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, Dirk Voetberg
Absent: None
September 8, 2010
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 Agreement and the issuance of not
to exceed $3,000,000 General Obligation Capital Loan Notes, in order to provide funds to
pay costs of constructing the Sycamore Street and 16th Street bridge improvements being
undertaken as part of the Bee Branch Creek Restoration Project, an essential corporate
purpose, and that notice of the proposed action by the Council to institute proceedings for
the authorization of the Loan Agreement and the issuance of the Notes, had been
published pursuant to the provisions of Sections 384.24, 384.24A and 384.25 of the City
Code of Iowa, as amended.
The Mayor then asked the Clerk whether any written objections had been filed by
any City resident or property owner to the proposal. The 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 Dirk Voetberg 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 AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $3,000,000
GENERAL OBLIGATION CAPITAL LOAN NOTES ", and moved:
X that the Resolution be adopted.
❑ to ADJOURN and defer action on the Resolution and the proposal to institute
proceedings for the issuance of Notes to the meeting to be held at
o'clock .M. on the day of
2010, at this place.
Council Member Karla Braig seconded the motion. The roll was called and the
vote was,
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick,
Voetberg
NAYS: None
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 350-10
RESOLUTION INSTITUTING PROCEEDINGS 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
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 Agreement and the issuance of not to exceed $3,000,000 General
Obligation Capital Loan Notes for the purpose of paying costs of constructing the
Sycamore Street and 16th Street bridge improvements being undertaken as part of the
Bee Branch Creek Restoration Project, and has considered the extent of objections
received from residents or property owners as to the proposal and; accordingly the
-3-
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 take additional
action for the authorization of a Loan Agreement and issuance in the manner required by
law of not to exceed $3,000,000 General Obligation Capital Loan Notes to evidence the
obligation thereof for the foregoing purpose.
ATTEST:
PASSED AND APPROVED this 7th
day of September , 2010.
STATE OF IOWA
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 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.
WITNESS my hand and the seal of the City hereto affixed this 8th day of
September, 2010.
(SEAL)
comell/ 665668.1 /MSWord \10422.116
CERTIFICATE
) SS
ity Clerk, City of Dubuque, State of Iowa