G.O. Bonds Series reallocation
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MEMORANDUM
October 25, 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 reallocation of $203,421.16 in 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.
f/A !/~ J~
Mic~ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Ken TeKippe, Finance Director
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Memorandum
FROM:
Michael C. Van Milligen, City Manager
Kenneth J. TeKippe, Finance Director '~J. 0; ~
TO:
SUBJECT: Proceedings for Reallocation of General Obligation Bonds Series 2002C
DATE:
October 20, 2004
INTRODUCTION
The purpose of this memorandum is to provide suggested proceedings for the 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 reallocating unspent proceeds of
the General Obligation Bond Series 2002C.
KJT/jmg
Enclosures
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
Michael C. Van Milligen, City Manager
FROM:
Kenneth J. TeKippe, Finance Director
1~ J- ~ ?qeþ
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.
ATTORNEYSATLAW
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)246-0332
Seprember23,2004
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 2002C, in the aggregate amount of not to exceed $205,000, for the
purpose of defraying 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 & BAILY-I886. GUERNSEY & BAILY- 1893. BAILY & 5"" -1901. 5"", PERRY, BANNI,""R & STARZINGER -1914. BANNI,""R, CARPENTER.
AHLERS & CoDNEY-1950.AH"O5. CoONEY. DORWEILER.ALLBEE. HAYNIE & SM"" - 1974.AH"O5. COONEY. DDRWEILER. HAYNIE. SMITH & ALLBEE, 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
encl.
DCORNELL\427705.1 \WP 1 0422000
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The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Cline 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:
IZJ
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 Nicholson
called and the vote was,
seconded the motion. The roll was
AYES:
Buol, Cline, Connors, Duggan,
Markham, Michalski, Nicholson
NAYS:
None
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION 412-04
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, of the 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 1st day of November, 2004.
Terrance M. Duggan, Mayor
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ATTEST:
Jeanne F. Schneider, City Clerk
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