Sewer Revenue Captial Loan NotesMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
kittil
AID- anerlca
2007
SUBJECT: Proceedings for 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: September 13, 2010
Finance Director Ken TeKippe recommends City Council approval of the suggested
proceedings for the public hearing on 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 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.
This 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 plans to extend the repayment
schedule to 30 years due to the longer lives of assets acquired with financing.
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
Mic ael C. Van Milligen
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 $10,100,000 Storm Water Utility Revenue Capital Loan
Notes."
ACTION STEP
The action step for City Council is to hold the public hearing and approve the resolution
authorizing a loan and disbursement agreement and the issuance of not to exceed
$10,100,000 Storm Water Utility Revenue Capital Loan Notes. 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
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J TeKippe, Finance Director
DATE: September 13, 2010
Dubuque
AI- America My
1
2007
SUBJECT: Proceedings for 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)
INTRODUCTION
The purpose of this memorandum is to provide the suggested proceedings for the public
hearing on the issuance of not to exceed $10,100,000 Storm Water 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
plans to extend the repayment schedule to 30 years due to the longer lives of assets
acquired with financing.
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 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 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. $2,850,000 in financing needed for
the two bridges that one part of the project (Sycamore Street and 16th Street) are being
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.
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 $10,100,000 Storm Water Utility Revenue Capital Loan
Notes."
ACTION STEP
The action step for City Council is to hold the public hearing and approve the resolution
authorizing a loan and disbursement agreement and the issuance of not to exceed
$10,100,000 Storm Water Utility Revenue Capital Loan Notes. 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
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001 -4864
Dear Mr. TeKippe:
AHLERS d . 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
September 13, 2010
RE: Not to exceed $10,100,000 Storm Water Utility Revenue
Capital Loan Notes (State of Iowa Revolving Fund Loan)
Direct Dial.
(515)246 -0332
With this letter I am enclosing suggested Council proceedings for the date of the
public hearing on the proposal to issue the above Notes. The proceedings have been
prepared to show as a first step the receipt of any oral or written objections from any
resident or property owner to the proposed action of the Council to authorize the form of
Loan and Disbursement Agreement and issue the Notes to the Iowa Finance Authority.
A summary of objections received or made, if any, should be attached to the proceedings.
After all objections have been received and considered if the Council decides to enter into
the Agreement and issue the Notes, a form of resolution follows that should be
introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional
Action."
In the event the Council decides to abandon the proposal, then the form of
resolution included in said proceedings should not be adopted. We would suggest that, in
this event, a motion merely be adopted to the effect that such proposal is abandoned.
September 13, 2010
Page 2
An extra copy of the proceedings is enclosed to be completed as the original and
certified back to our office.
Should you have any questions concerning the enclosed proceedings or the SRF
Program, please don't hesitate to contact me.
WJN:dc
encl.
cc: Barry Lindahl (w /encl.)
comell/ 668582.1 /MSWord \10422.115
Yours very truly,
William J. Noth
NOTICE AND CALL OF PUBLIC MEETING
Resolution instituting proceedings to take additional action.
1
(This Notice to be posted)
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: September 20, 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
Public hearing on the authorization of a Loan and Disbursement Agreement
and the issuance of Notes to evidence the obligation of the City thereunder.
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.
September 21, 2010
The City Council 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 Pro -Tem Karla Braig in the chair, and the following named
Council Members:
Joyce Connors, Ric Jones, Kevin Lynch, David Resnick, Dirk Voetberg (by
phone)
Absent: Mayor Roy D. Buol
* * * * * * * * **
2
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 $10,100,000 Storm Water Utility 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 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, 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 384.24A and 384.84A 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)
3
The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Ric Jones 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
$10,100,000 STORM WATER UTILITY REVENUE 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 to the meeting
to be held at o'clock .M. on the
day of , 2010, at this place.
Council Member Joyce Connors seconded the motion. The roll was called and the
vote was,
AYES: Braig, Connors, Jones, Lynch, Resnick, Voetberg
NAYS: None
Whereupon, the Mayor Pro -Tem declared the measure duly adopted.
RESOLUTION NO. 381 -10
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR 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
4
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
$10,100,000 Storm Water Utility Revenue Capital Loan Notes to evidence the
obligations of the City under said Loan and Disbursement Agreement, for the purpose of
paying costs of constructing storm water drainage projects and improvements, including
those costs associated with the Lower Bee Branch Creek Restoration Project and the
refmancing 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, 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 $10,100,000 Storm Water
Utility Revenue Capital Loan Notes for the foregoing purpose.
Section 2. 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 Notes 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 3. That this Resolution be and does hereby serve as a declaration of
official intent under Treasury Regulation 1.150 -2, because the City reasonably expects to
reimburse with the proceeds of the Notes, all or a portion of original expenditures
incurred in connection with the above purposes.
5
ATTEST:
PASSED AND APPROVED this 20 day of September, 2010.
eanne F. Schneider, CMC
City Clerk
Karla A. Braig, L
Mayor Pro -Tem
STATE OF IOWA
COUNTY OF DUBUQUE
SEAL
comell/ 666431.1 /MS Word \10422.115
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 21 day
of September, 2010.
7
ity Clerk, Dubuque, Iowa