Proceedings for Reallocation of General Obligation Bonds Series 2009A and Series 2010AMasterpiece on the Mississippi
April 6, 2011
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM /jmI
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jennifer Larson, Budget Director
Kenneth TeKippe, Finance Director
Mic ( 2..
l C. Van Milligen
Dubuque
Lead
All AmericaCity
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for Reallocation of General Obligation Bonds Series 2009A
and Series 2010A
Budget Director Jennifer Larson recommends setting a public hearing for May 2, 2011,
on a proposal to reallocate unspent proceeds of the General Obligation Bond Series
2009A and Series 2010A to fund a portion of the local match for the purchase of the
transit buses and costs associated with snow and ice control activities and
improvements.
Masterpiece on the Mississippi
Dubuque
bitil
NI- America City
IIIR
2007
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Directorj,
SUBJECT: Proceedings for Reallocation of General Obligation Bonds Series 2009A
and Series 2010A
DATE: April 6, 2011
INTRODUCTION
The purpose of this memorandum is to provide suggested proceedings for holding a
public hearing on the reallocation of General Obligation Bond Series 2009A and Series
2010A.
DISCUSSION
The City of Dubuque issued General Obligation Bonds ($2,935,000) in the fall of 2009
for the purpose of acquisition of sewer pipeline inspection equipment; the inspection
and certification of the flood control levee system; the construction and installation of
storm water management facilities, including the Bee Branch Creek Restoration Project
and the reconstruction of storm sewers; the acquisition and replacement of street lights;
the acquisition and installation of fiber optic conduit in connection with street
improvements and watermain extensions; the repair and improvement of the Dubuque
Regional Airport, including hanger heater and terminal boiler replacements, runway and
hanger painting, hanger repairs and replacements and parking area paving; the
acquisition and replacement of Fire Department ladder and pumper trucks and
ambulances; and water utility improvements including the construction and installation
of watermain extensions, ADA improvements, back -up power supply and water
consumption studies and engineering.
The City of Dubuque also issued General Obligation Bonds ($4,470,000) in the fall of
2010 for the purpose of improvements and extensions to the municipal sanitary sewer
and storm water drainage systems; equipping the sanitation and road departments;
improving the City airport grounds and facilities; the acquisition of land and other costs
associated with the Bee Branch storm water project; rehabilitation and improvement of
City parks; construction, reconstruction and repair of sidewalks; improvement and
installation of street lighting fixtures, connections and facilities; street improvements,
including installation of fiber optic conduit; and refunding and refinancing of certain
outstanding indebtedness of the City, including General Obligation Bonds, Series
2002B, dated March 1, 2002.
Since the proceeds from the bond issues were not entirely used for these projects, a
balance remains. Enclosed is a letter from our Bond Counsel, William Noth of Ahlers &
Cooney, P.C., relative to the proceedings required to reallocate the unused bond funds
($121,000 as of March 30, 2011) to fund a portion of the local match for the purchase of
transit buses and costs associated with snow and ice control activities and
improvements, as permitted by Iowa Code.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution fixing the date of May
2, 2011 for a public hearing on the proposal to reallocate unspent bond proceeds of the
General Obligation Series 2009A and Series 2010A and providing for publication of
notice.
JML
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth TeKippe, Finance Director
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certify that I am now and was at the times
hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the
County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the
Council of said City, I have caused a
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE,
IOWA, ON THE MATTER OF THE PROPOSED REALLOCATION OF CERTAIN
UNSPENT PROCEEDS OF THE GENERAL OBLIGATION BONDS, SERIES 2009A
(TAXABLE BUILD AMERICA BONDS), AND THE GENERAL OBLIGATION
BONDS, SERIES 2010A, OF THE CITY OF DUBUQUE, IOWA, AND THE PUBLIC
HEARING THEREON
of which the clipping annexed to the publisher's affidavit hereto attached is in words and
figures a correct and complete copy, to be published as required by law in the Telegraph
Herald, a legal newspaper published at least once weekly, printed wholly in the English
language, published regularly and mailed through the post office of current entry for
more than two years and which has had for more than two years a bona fide paid
circulation recognized by the postal laws of the United States, and has a general
circulation in the City, and that said Notice was published in said newspaper in all of the
issues thereof published and circulated on the following date:
(SEAL)
687261.1 \10422.000
WITNESS my official signature at Dubuque, Iowa, this
, 2011.
day of
CIG -18
NOTICE OF MEETING
OF THE CITY
COUNCIL OF THE
CITY OF DUBUQUE,
IOWA, ON THE
MAT I ER OF THE
PROPOSED
REALLOCATION OF
CERTAIN UNSPENT
PROCEEDS OF THE
GENERAL
OBLIGATION BONDS,
SERIES 2009A
(TAXABLE BUILD
AMERICA BONDS),
AND THE GENERAL
OBLIGATION BONDS,
SERIES 2010A, OF THE
CITY OF DUBUQUE,
IOWA, AND THE
PUBLIC HEARING
THEREON
PUBLIC NOTICE is
hereby given that the
Council of the City of
Dubuque, Iowa, will
hold a public hearing
on the 2nd day of May,
2011, at 6:30 o'clock
P.M., in the Historic
Federal Building, 350
West 6th Street, Dubu-
que, Iowa, at which
meeting the Council
proposes to take addi-
tional action for the re-
allocation of certain
unspent proceeds of
the General Obligation
Bonds, Series 2009A
(Taxable Build America
Bonds), and the Gener-
al Obligation Bonds,
Series 2010A Bonds, of
the City of Dubuque,
Iowa (together, the
"Bonds "), in the aggre-
gate amount of not to
exceed 5121,000, in or-
der to provide funds
for the purpose of
foals thi, local
m "h the purchase
of transit buses (in the
case of the Series
2009A Bonds) and
costs associated with
snow and ice control
activities and improve-
ments (in the case of
the 2010A Bonds). Any
person interested may
appear at the public
hearing, either orally or
in writing, and be
heard as to the reallo-
cation of said proceeds
of the Bonds for the
above purposes.
This Notice is given by
order of the Council of
Dubuque, fOviia;'as'prv-
vided by Sections 364.6
and 384.25 of the Code
of Iowa, as amended.
Dated this 22nd day of
April, 2011.
Jeanne F. Schneider,
CMC, City Clerk
1t 4/22
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa
corporation, publisher of the Telegraph Herald,a newspaper of general circulation
published in the City of Dubuque, County of Dubuque and State of Iowa; hereby
certify that the attached notice was published in said newspaper on the following
dates: April 22, 2011, and for which the charge is $21.44.
P, A
Subscribed to before a Notary Public in and for Dubuque County, Iowa,
this day of
,20/ .
l tary Public in and for Dubuque County, Iowa.
MARY K. WESTERMEYi
Commission Number 1546,
WILLIAM J. NOTH
wnothaahlerslaw.com
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001 -4864
Dear Mr. TeKippe:
AHLERS
COONEY, P.C.
100 COURT AVENUE, SUITE 600
DES MOINES. IOWA 50309 -2231
PHONE 515 -243 -7611
FAX 515 -243 -2149
WWWAHLERSLAW.COM
March 21, 2011
Direct Dial:
(515)246 -0332
RE: Proposed reallocation of certain unspent proceeds of General Obligation
Bonds, Series 2009A (Taxable Build America Bonds), and General
Obligation Bonds, Series 2010A
With this letter I am enclosing suggested proceedings setting a date of public
hearing on a proposal to reallocate certain unspent proceeds of the General Obligation
Bonds, Series 2009A (Taxable Build America Bonds), and General Obligation Bonds,
Series 2010A (together, the "Bonds"), in the aggregate amount of not to exceed
$121,000, for the purpose of funding the local match for the purchase of transit buses (in
the case of the 2009A Bonds) and costs associated with snow and ice control activities
and improvements (in the case of the 2010A Bonds).
Although the Bonds were issued for the purpose of financing certain projects in
the City, the specific uses of the unspent proceeds that are now proposed were not
contemplated when the public hearings on the Bonds were held. There is no established
procedure set forth in the Iowa Code for changing the use of previously- issued bonds.
For this reason, we suggest that the Council elect its own procedure under Iowa Code
Section 364.6 and conduct a public hearing on the proposed reallocation of the Bond
proceeds for this purpose. Such reallocation is otherwise permitted under the federal
income tax regulations applicable to the Bonds.
March 21, 2011
Page 2
The notice of this hearing should be published once in a legal newspaper having
general circulation in the City, with the publication being not less than four days nor
more than twenty days before the date of said public meeting.
As always, we would appreciate receiving a certified copy of the enclosed
proceedings once the Council has acted on the same. We also would appreciate receiving
a copy of the publishers' affidavit relating to the notice of public hearing once it becomes
available.
WJN:dc
encl.
cc: Jenny Larson (w /encl.)
687255.1 \10422.000
An extra copy of the notice is enclosed for delivery to the newspaper.
Should any questions arise, please don't hesitate to call me.
Yours very truly,
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: April 18, 2011
Time of Meeting: 6:30 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:
$ Resolution fixing date for a meeting on the proposal to reallocate certain
unspent proceeds of the General Obligation Bonds, Series 2009A (Taxable
Build America Bonds), and General Obligation Bonds, Series 2010A
Bonds, and providing for publication of notice thereof
Such additional matters as are set forth on the additional 11 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.
Clerk, Dubuque, Iowa
Braig, Connors, Jones, Lynch, Resnick, Sutton
Absent: None
April 19, 2011
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 Roy D. Buol in the chair, and the following named Council
Members:
Council Member Joyce Connors introduced the following Resolution entitled
"RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSAL TO
REALLOCATE CERTAIN UNSPENT PROCEEDS OF THE GENERAL
OBLIGATION BONDS, SERIES 2009A (TAXABLE BUILD AMERICA BONDS),
AND THE GENERAL OBLIGATION BONDS, SERIES 2010A, OF THE CITY OF
DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE
THEREOF ", and moved that the same be adopted. Council Member Kevin Lynch
seconded the motion to adopt. The roll was called and the vote was,
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick, Sutton
NAYS: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 135 -11
RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSAL
TO REALLOCATE CERTAIN UNSPENT PROCEEDS OF THE
GENERAL OBLIGATION BONDS, SERIES 2009A (TAXABLE BUILD
AMERICA BONDS), AND THE GENERAL OBLIGATION BONDS,
SERIES 2010A, OF THE CITY OF DUBUQUE, IOWA, AND
PROVIDING FOR PUBLICATION OF NOTICE THEREOF •
WHEREAS, pursuant to hearings duly held under Iowa Code Section 384.25 and a
resolution approved on October 19, 2009, the City Council of the City of Dubuque, Iowa
has previously issued its General Obligation Bonds, Series 2009A (Taxable Build
America Bonds),. in the aggregate principal amount of $2,935,000 (the "Series 2009A
Bonds "), for the purpose, among other things, of defraying all or a portion of the costs of
the acquisition of sewer pipeline inspection equipment; the inspection and certification of
the flood control levee system; the construction and installation of storm water
management facilities, including the Bee Branch Creek Restoration Project, and the
reconstruction of storm sewers; the acquisition and replacement of street lights; the
acquisition and installation of fiber optic conduit in connection with street improvements
and watermain extensions; the repair and improvement of the Dubuque Regional Airport,
including hanger heater and terminal boiler replacements, runway and hanger painting,
hanger repairs and replacements and parking area paving; the acquisition and
replacement of Fire Department ladder and pumper trucks and ambulances; and water
utility improvements including the construction and installation of watermain extensions,
ADA improvements, back -up power supply and water consumption studies and
engineering; and
WHEREAS, pursuant to a hearing duly held under Iowa Code Section 384.25 and
a resolution approved on August 16, 2010, the City Council of the City of Dubuque, Iowa
has previously issued its General Obligation Bonds, Series 2010A, in the aggregate
principal amount of $4,470,000 (the "Series 2010A Bonds "), for the purpose, among
other things, of defraying all or a portion of the costs improvements and extensions to the
municipal sanitary sewer and storm water drainage systems; equipping the sanitation and
road departments; improving the City airport grounds and facilities; the acquisition of
land and other costs associated with the Bee Branch storm water project; rehabilitation
and improvement of City parks; construction, reconstruction and repair of sidewalks;
improvement and installation of street lighting fixtures, connections and facilities; street
improvements, including installation of fiber optic conduit; and refunding and
refinancing of certain outstanding indebtedness of the City, including the General
Obligation Bonds, Series 2002B, dated March 1, 2002; and
WHEREAS, certain proceeds of the Series 2009A Bonds and the Series 2010A
Bonds remain unspent, and the City Manager has recommended that not to exceed
$121,000 of such unspent proceeds (the "Unspent Proceeds ") be applied for the purpose
of funding the local match for the purchase of transit buses (from the Series 2009 Bonds)
and costs associated with snow and ice control activities and improvements (from the
Series 2010A Bonds) (together, the "Projects "); and
WHEREAS, there being no procedure specified under Iowa law for consideration
or approval of such a reallocation, it is hereby determined, pursuant to Section 364.6 of
the Code of Iowa, that the procedure set forth in Section 384.25 of the Code of Iowa
should apply to such proposal, and that a hearing be held upon the proposal to reallocate
the Unspent Proceeds to provide funds for the Projects.
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 2 day of May, 2011, for the purpose
of taking action on the matter of the proposed reallocation of the Unspent Proceeds of the
Series 2009A Bonds and the Series 2010A Bonds to provide funds to defray all or a
portion of the costs of the Projects.
Section 2. That the City Clerk is hereby directed to cause one publication to be
made of 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 to be not less than four clear days nor more than twenty days before the date
of said public meeting.
form:
Section 3. The notice of the proposed action shall be in substantially the following
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED
REALLOCATION OF CERTAIN UNSPENT PROCEEDS OF THE
GENERAL OBLIGATION BONDS, SERIES 2009A (TAXABLE BUILD
AMERICA BONDS), AND THE GENERAL OBLIGATION BONDS,
SERIES 2010A, OF THE CITY OF DUBUQUE, IOWA, AND THE
PUBLIC HEARING THEREON
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the 2 day of May, 2011, 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 reallocation of certain unspent proceeds
of the General Obligation Bonds, Series 2009A (Taxable Build America Bonds), and the
General Obligation Bonds, Series 2010A Bonds, of the City of Dubuque, Iowa (together,
the "Bonds "), in the aggregate amount of not to exceed $121,000, in order to provide
funds for the purpose of funding the local match for the purchase of transit buses (in the
case of the Series 2009A Bonds) and costs associated with snow and ice control activities
and improvements (in the case of the 2010A Bonds). Any person interested may appear
at the public hearing, either orally or in writing, and be heard as to the reallocation of said
proceeds of the Bonds for the above purposes.
This Notice is given by order of the Council of Dubuque, Iowa, as provided by
Sections 364.6 and 384.25 of the Code of Iowa, as amended.
Dated this 22 day of April, 2011.
City Clerk of Dubuque, Iowa
(End of Notice)
ATTEST:
PASSED AND APPROVED this 18 day of A . ril, 2011.
eanne F. Schneider, CMC
City Clerk
Roy D. Cf ol, Mayor
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 19 day
of April, 2011.
SEAL
687243.1 \10422.000
CERTIFICATE
) SS
ity Clerk, Dubuque, Iowa