G.O. Bonds Municipal Serv. Ctr
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MEMORANDUM
October 11, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for Reallocation of General Obligation Bonds Series 2002C
Finance Director Ken TeKippe recommends setting a public hearing for November 1,
2004, on a proposal to reallocate unspent proceeds of the General Obligation Bond
Series 2002C to fund a portion of the new Municipal Services Center project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/()ÙLL((/J /~j<
M1Chael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
Michael C. Van Milligen, City Manager
FROM:
Kenneth J. TeKippe, Finance Director
1~ J- ~ Þ¡eþ
SUBJECT: Proceedings for Reallocation of General Obligation Bonds Series 2002C
DATE:
October 7,2004
INTRODUCTION
The purpose of this memorandum is to provide suggested proceedings for holding a
public hearing on the reallocation of General Obligation Bond Series 2002C proceeds
for use on the new Municipal Services Center.
DISCUSSION
The City of Dubuque issued General Obligation Bonds ($3,105,000) in late 2002 for the
purpose of constructing the new water tower, new water main along the Northwest
Arterial and refunding the 1994 bond issue. Since the proceeds from the bond issue
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 ($203,421.16 as of September 30, 2004)
as permitted by Iowa Code.
RECOMMENDATION
The unused Bond proceeds will be utilized to fund a portion of the new Municipal
Services Center project.
ACTION STEP
The City Council should adopt the enclosed resolution fixing the date of November 1,
2004 for a public hearing on the proposal to reallocate unspent proceeds of the General
Obligation Bond Series 2002C and providing for publication of notice.
KJT/jmg
Enclosures
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
WILLIAM J. NOTH
WNOTH@AHLERSLAW.COM
Direct Dial.
(515)245-0332
September 23, 2004
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
RE:
Proposed reallocation of unspent proceeds of the General Obligation
Bonds, Series 2002C
Dear Mr. TeKippe:
With this letter I am enclosing a suggested resolution setting a date of public
hearing on a proposal to reallocate certain unspent proceeds of the General Obligation
Bonds, Series 2O02C, in the aggregate amount of not to exceed $205,000, for the
purpose of defi-aying all or a portion of the cost of Municipal Services Center project.
This project was not included among those to be funded with the Series 2002C
Bonds when the same were issued. No specific procedure is established under Iowa law
for reallocating unspent bond proceeds. We therefore suggest that the Council elect, as
permitted to Section 364.6 of the Iowa Code, to use the procedure set out in Section
384.25 for the new purpose. To do so, it will be necessary for the Council to conduct a
public hearing on the proposed reallocation of the Series 2002C Bond proceeds for this
purpose. Such reallocation is otherwise permitted under the federal income tax
regulations applicable to the Series 2002C Bonds.
The notice of this hearing must be published once in a legal newspaper having
general circulation in the City, with the publication being not less than four clear days
nor more than twenty days before the date of said public meeting. An extra copy of the
notice is enclosed for delivery to the newspaper.
WISHARD' BA>LY-lBBB. GUERHSEY' BA>LY-I"', BA>LY'STIPP -1901, STIPP. PERRY. BANNISTeR' STARlIHGER -1914, BANNISTER. CARPENTeR.
AHLERS' CDDNEY-1950. AHLERS. CDDNEY. DDRWEILER.ALLG". HAYNIE' SHITH -1974, AHLERS. CDDNEY. DDRWEILER. HAYNIE. SHI11< . AtL"'. P.C. -1990
September 23,2004
Page 2
I also am enclosing suggested proceedings to be acted upon by the City Council
on the date set for the public hearing. The proceedings first document the receipt of any
comments or objections that may be received with respect to the proposal. If the Council
determines following the hearing to approve the reallocation, the resolution that follows
should then be adopted. This resolution directs that the Finance Officer take such action
as may be necessary to implement the reallocation and to cause the records and accounts
of the City to reflect the same.
Extra copies of the proceedings are enclosed to be filled in as the original and
certified back to this office. We would also appreciate receiving the publisher's affidavit
once it becomes available.
Should any questions arise, please don't hesitate to call me.
Yours very truly,
~
William J. Noth
WJN:dc
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DCORNELL\427705.1 \ WPI0422oo0
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(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
The City Council of Dubuque, Iowa.
Date of Meeting:
,2004.
Time of Meeting:
o'clock .M.
Place of Meeting:
Auditorium, Camegie-Stout Public Library, 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 2002C, of
Dubuque, Iowa, and providing for publication of notice thereof
Such additional matters as are set forth on the additional- page(s) attached hereto.
(number)
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.
City Clerk, Dubuque, Iowa
.
,2004
The City Council of Dubuque, Iowa, met in session, in the
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at - o'clock _.M., on
the above date. There were present Mayor , in the chair,
and the following named Council Members:
Absent:
*******
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'.,
Council Member C 1 i n e 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 2002C, OF DUBUQUE, IOWA, AND PROVIDING
FOR PUBLICATION OF NOTICE THEREOF", and moved that the same be adopted.
Council Member Nicholson seconded the motion to adopt. The roll was
called and the vote was,
AYES:
Buol, Cline, Connors, Duqqan, Markham,
Michalski, Nicholson
NAYS:
None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 396-04
RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSAL
TO REALLOCATE CERTAIN UNSPENT PROCEEDS OF THE
GENERAL OBLIGATION BONDS, SERIES 2002C, OF DUBUQUE,
IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF
WHEREAS, pursuant to a Resolution approved on November 18,2002, the
City Council of the City of Dubuque, Iowa has previously issued its General Obligation
Bonds, Series 2002C, in the aggregate principal amount of$3,105,000 (the "Series 2002C
Bonds"), for the purpose of paying costs of the acquisition, construction, improvement
and equipping of waterworks and water main extensions, including water treatment plant
facilities and water main extensions and improvements and refunding and refinancing
certain outstanding indebtedness of the City, consisting of the General Obligation Bonds,
Series 1994, dated May 1, 1994; and
WHEREAS, certain proceeds of the Series 2002C Bonds remain unspent, and City
staff has recommended that not to exceed $205,000 of such unspent proceeds (the
"Unspent Proceeds") be applied for the purpose of paying a portion of the costs of the
Municipal Services Center project; and
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"
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 ofIowa, that the procedure set forth in Section 384.25 should apply and that a
hearing be held upon the proposal to reallocate the Unspent Proceeds to provide funds for
the Municipal Services Center project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That this Council meet in the Auditorium, Carnegie-Stout Public
Library, Dubuque, Iowa, at 6: 30 o'clock -E.M., on the ~ day of
November, 2004, for the purpose of taking action on the matter of the proposed
reallocation of the Unspent Proceeds ofthe Series 2002C Bonds to provide funds to pay a
portion of the costs of the Municipal Services Center project.
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.
Section 3. The notice of the proposed action shall be in substantially the following
form:
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"
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 2002C, OF THE CITY OF
DUBUQUE, lOW A, 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 1st day of November, 2004, at 6: 30
o'clock ~.M., in the Auditorium, Carnegie-Stout Public Library, 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 2002C, of the City of
Dubuque, Iowa (the "Series 2002C Bonds"), in the aggregate amount of not to exceed
$205,000, in order to provide funds to pay a portion of the costs of the Municipal Services
Center project. 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 Series 2002C 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 ofIowa, 2003, as amended.
Dated this 22nd day of October
,2004.
/s/ Jeanne F. Schneider, City Clerk of Dubuque, Iowa
(End of Notice)
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PASSED AND APPROVED this 18th day of October
2004.
Terrance M. Duggan, Mayor
ATTEST:
Jeanne F. Schneider, City Clerk
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CIG-3
9/91
CERTIFICATE
STATE OF IOWA
)
) SS
)
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
day of , 2004.
City Clerk, Dubuque, Iowa
SEAL
DCORNELL 1427707.11 WPII 0422000
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CIG-18
- 2-91
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 2002C, 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 rnore 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:
,2004
WITNESS my official signature at Dubuque, Iowa, this
,2004.
day of
City Clerk
(SEAL)
DCORNELLl4277 I U IWP 10422000
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(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
The City Council of Dubuque, Iowa.
Date of Meeting:
,2004.
Time of Meeting:
o'clock .M.
Place of Meeting:
Auditorium, Carnegie-Stout Public Library, 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:
General Obligation Bonds, Series 2002C
Public hearing on the proposed reallocation of unspent proceeds.
Resolution instituting proceedings to take additional action.
Such additional matters as are set forth on the additional- page(s) attached hereto.
(number)
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.
City Clerk, Dubuque, Iowa
,2004
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
on the above date. There were present Mayor
and the following named Council Members:
session, in the
o'clock _.M.,
, in the chair,
Absent:
*******
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The Mayor announced that this was the time and place for the public hearing and
meeting on the matter of the proposed reallocation of $205,000 in unspent proceeds of the
General Obligation Bonds, Series 2002C, in order to provide funds to pay costs of the
Municipal Services Center project, and that notice of the proposed action by the Council
to institute proceedings for the proposed reallocation had been published pursuant to the
provisions of Sections 364.6 and 384.25 of the City Code ofIowa.
The Mayor then asked the Clerk whether any written objections had been filed by
any City resident or property owner to the proposed reallocation. The Clerk advised the
Mayor and the Council that - written objections had been filed. The Mayor then
called for oral objections to the proposed reallocation and - 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)
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The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member introduced and delivered to
the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING
PROCEEDINGS TO TAKE ADDITIONAL ACTION AND APPROVING THE
REALLOCATION OF CERTAIN UNSPENT PROCEEDS OF THE GENERAL
OBLIGATION BONDS, SERIES 2002C, OF THE CITY OF DUBUQUE, IOWA FOR
THE MUNICIPAL SERVICES CENTER PROJECT", and moved:
D
that the Resolution be adopted.
D
to ADJOURN and defer action on the Resolution and the proposal to institute
proceedings for the proposed reallocation to the meeting to be held at
- o'clock _.M. on the day of
2004, at this place.
Council Member
called and the vote was,
seconded the motion. The roll was
AYES:
NAYS:
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION AND APPROVING THE REALLOCATION OF
CERTAIN UNSPENT PROCEEDS OF THE GENERAL OBLIGATION
BONDS, SERIES 2002C, OF THE CITY OF DUBUQUE, IOWA FOR
THE MUNICIPAL SERVICES CENTER PROJECT
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
reallocation of certain unspent proceeds in the amount of $205,000 (the "Unspent
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Proceeds") of the General Obligation Bonds, Series 2002C, ofthe City of Dubuque, Iowa,
for the purpose of paying a portion of the costs of the Municipal Services Center project,
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 reallocation of the Unspent Proceeds of the General Obligation Bonds,
Series 2002C, for the foregoing purpose, and the reallocation of the Unspent Proceeds to
pay costs of the Municipal Services Center project is in all respects authorized and
approved.
Section 2. The Finance Officer is authorized and directed to take such action as
may be necessary to effect and implement the foregoing reallocation of the Unspent
Proceeds to the Municipal Service Center project, and to cause the records and accounts
of the City to reflect the same.
PASSED AND APPROVED this
day of
2004.
Mayor
ATTEST:
City Clerk
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CIG-3
9/91
CERTIFICATE
STATE OF IOWA
)
) SS
)
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 ofIowa, 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
day of , 2004.
City Clerk, Dubuque, Iowa
SEAL
DCORNELL\4277 I 2.1 IWPII 0422000
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