General Obligation Bonds $9MMasterpiece on the Mississippi
November 28, 2011
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
kard
All-America City
2007
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$9,000,000 General Obligation Bonds
Budget Director Jennifer Larson is recommending City Council approval of the
suggested proceedings for the public hearing on the issuance of General Obligation
Bonds and approval of a "Resolution Instituting Proceedings to Take Additional Action
for the Issuance of Not to Exceed $9,000,000 General Obligation Bonds." The
proceeds of which will be used to pay costs of street improvements related to East 7th
and Commercial Street reconstruction and related improvements, two -way street traffic
conversion from 9th to 11th Streets, Historic Millwork District "complete streets"
improvements and the refunding and refinancing of the General Obligation Capital Loan
Notes, Series 2010F, dated September 20, 2010. Although the City is selling General
Obligation Bonds to support the projects, repayments of the debt will be from tax
increment revenues of the Greater Downtown Urban Renewal Area.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM /jml
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jennifer Larson, Budget Director
Kenneth TeKippe, Finance Director
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
Dubuque
kard
All-America City
2007
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$9,000,000 General Obligation Bonds
DATE: November 28, 2011
INTRODUCTION
The purpose of this memorandum is to provide the suggested proceedings for the public
hearing on the issuance of General Obligation Bonds prepared by our Bond Counsel
and to present a resolution for City Council to adopt entitled "Resolution Instituting
Proceedings to Take Additional Action for the Issuance of Not to Exceed $9,000,000
General Obligation Bonds." The proceeds of the Bonds will be used for essential
corporate purposes of the City. A letter from attorney William Noth detailing information
on the bond hearing is enclosed.
DISCUSSION
Of the bond amount:
• $3,400,000 is intended to provide funds to pay costs of street improvements
related to East 7th and Commercial Street reconstruction and related
improvements. The East 7th Street and Commercial Street reconstruction is a
$4.1 million project, with $680,892 paid through a State of Iowa Department of
Transportation Revitalize Iowa's Sound Economy (RISE) grant. This will connect
downtown Dubuque to the Historic Millwork District and the Port of Dubuque
with a connection from the railroad underpass near the Shot Tower on the east
to near the Iowa Street parking ramp on the west.
• $1,725,000 is intended to provide funds to pay costs of two -way street traffic
conversion from 9th to 11th Streets. Converting the streets to two -way from 9th to
11th Streets will better accommodate all modes of transportation including
pedestrians, bicycles and buses, allow for greater vehicular access to
businesses that locate in the Historic Millwork District and strengthen
transportation connections to the Central Business District.
• $350,000 is intended to provide funds to pay overages of Historic Millwork
District "complete streets" improvements caused by additional work needing to
be performed on 9th and 10th Streets due to the street pavement being in very
poor condition.
• $1,950,000 is intended to provide funds for the refunding and refinancing of the
General Obligation Capital Loan Notes, Series 2010F, dated September 20,
2010 which were issued as a short -term borrowing for the construction of the
bridges of Lower Bee Branch.
• $75,000 is intended to provide funds for bond issuance costs and
• $1,500,000 to be a contingency for fluctuations in the bond market for interest
rates, bond issuance costs and change in project costs.
Although the City is selling General Obligation Bonds to support the projects,
repayments of the debt will be from tax increment revenues of the Greater Downtown
Urban Renewal Area.
The proceedings are 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
issue the Bonds. 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 not to abandon the proposal to issue the Bonds, a form of resolution
follows that should be introduced and adopted, entitled "Resolution Instituting
Proceedings to Take Additional Action for the Issuance of not to exceed $9,000,000
General Obligation Bonds."
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 384.25 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.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution instituting the
proceedings to take additional action.
JML
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth TeKippe, Finance Director
AHLERS &COONEY, P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE: 515- 243 -7611
FAX: 515- 243 -2149
VWWV.AH LERSLAW. COM
William J. Noth
wnoth @ahlerslaw.com
November 28, 2011
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Not to exceed $9,000,000 General Obligation Bonds
Dear Ms. Larson:
Direct Dial:
(515)246 -0332
We enclose suggested proceedings to be acted upon by the Council on the date
fixed for the hearing on the issuance of the above mentioned Bonds, pursuant to the
provisions of Code Section 384.25. A certificate to attest the proceedings is also
enclosed.
The proceedings are 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 issue the Bonds. 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 not to abandon the proposal to issue the Bonds, a form of resolution
follows that should be introduced and adopted, entitled "Resolution Instituting
Proceedings to Take Additional Action for the Issuance of not to exceed $9,000,000
General Obligation Bonds."
The Council is required by statute to adopt the resolution instituting proceedings to
issue the Bonds at the hearing -- or an adjournment thereof. If necessary to adjourn, the
minutes are written to accommodate that action.
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. We would
suggest that, in this event, a motion merely be adopted to the effect that such bond
proposal is abandoned.
WISHARD & BAILY - 1888; GUERNSEY & BAILY - 1893; BAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER,
November 28, 2011
Page 2
Section 384.25 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.
In the event an appeal is filed by any resident or property owner, please see that
we are notified immediately; and, as soon as available, a copy of the notice of appeal
should be furnished our office for review.
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office. If you have any questions pertaining to the proceedings
enclosed or this letter, please do not hesitate to either write or call.
Very truly yours,
William J. Noth
WJN:de
encl.
cc: Ken TeKippe (w /encl.)
Tionna Pooler (w /encl.)
00827345 - 1110422 -130
NOTICE OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF DUBUQUE,
IOWA, ON THE
MATTER OF THE
PROPOSED ISSUANCE
OF NOT TO EXCEED
$9,000,000 GENERAL
OBLIGATION BONDS
(FOR ESSENTIAL
CORPORATE,
PURPOSES) OF THE
CRY, AND THE
HEARING ON THE.
ISSUANCE THEREOF
PUBLIC NOTICE is
hereby given that the
City of Dubuque, Iowa,
will hold a public
hearing on the 5th day •
of December, 2011, at
6;30 o'clock P.M., in the
Historic Federal Build-
ing, 350 West 6th
Street, Dubuque, Iowa,
at which meeting the
Council proposes to
take additional action
for the issuance of not
to exceed $9,000,000
General Obligation
Bonds. for essential .
corporate purposes of
said City, in order to
provide funds to pay
costs of the con-
struction, reconstruc-
tion and repair of
street, sidewalk and
streetscape improve-
ments, including those
costs associated with
the East 7th and
Commercial Street
reconstruction and
related improvements,
two -way street traffic
conversions, and His-
toric Millwork District
"complete streets"
improvements, and the
refunding and
refinancing of the
General Obligation
Capital Loan Notes,
Series 2010F, dated
September 20, 2010.
At the above meeting
the Council shall
receive oral or written
objections from any
resident or property
owner of the City, to
the above action. After
all objections have
been received and
considered, the Council
will at this meeting or .
at any adjournment
thereof, take additional
action for the issuance
of Bonds or will
abandon the proposal
to issue Bonds.
This notice is given by
order of the City
Council of the City of
Dubuque, , State of
Iowa, as provided by
Section 384.25 of the
City Code of 'Iowa.
Dated this 25th day of
November, 2011.
Kevin S. Firnstahl,
City Clerk,
City of Dubuque, Iowa
It 11/25
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: November 25, 2011, and for which the charge is $24.29.
--PLSzi2
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this day ofG .g „,�( , 20 //
Notary Public in and for Dubuque County, Iowa.
^, °`, 1ARY K. I ESTEt�IU -”
The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Bra; g introduced and delivered
to the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING
PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT
TO EXCEED $9,000,000 GENERAL OBLIGATION BONDS ", and moved:
that the Resolution be adopted.
to ADJOURN and defer action on the Resolution and the proposal
to institute proceedings for the issuance of Bonds to the meeting to
be held at o'clock .M., on the day
of , 2011, at this place.
Council Member Connors seconded the motion. The roll was
called and the vote was,
AYES: Braig, Buol, Connors, Jones
NAYS:
Resnick, Sutton
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 413 -11
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE ISSUANCE OF NOT
TO EXCEED $9,000,000 GENERAL OBLIGATION
BONDS
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 issuance
of not to exceed $9,000,000 General Obligation Bonds, for the essential corporate
purposes of paying costs of the construction, reconstruction and repair of street, sidewalk
and streetscape improvements, including those costs associated with the East 7th and
Commercial Street reconstruction and related improvements, two -way street traffic
conversions, and Historic Millwork District "complete streets" improvements, and the
refunding and refinancing of the General Obligation Capital Loan Notes, Series 2010F,
- 3 -
dated September 20, 2010, and has considered the extent of objections received from
residents or property owners as to the proposed issuance of Bonds; 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 take additional
action for the sale and issuance in the manner required by law of not to exceed
$9,000,000 General Obligation Bonds, for foregoing essential corporate purposes.
PASSED AND APPROVED this 5th day of December
ATTEST:
, 2011.
(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: December 5 , 2011.
Time of Meeting: 6 :
30 0 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 $9,000,000 General Obligation Bonds
• Public hearing on the issuance.
• Resolution instituting proceedings to take additional action.
Such additional matters as are set forth on the additional 4 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 the governmental body.
City C rk, City of Dub que, Iowa
December 5 , 2011
The City Council of the City 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:
Karla Braig, Joyce Connors, Ric JnnPs
David Resnick, Lynn Sutton
Absent: Kevin Lynch
* * * * * **
1
The Mayor announced that this was the time and place for the public hearing and
meeting on the matter of the issuance of not to exceed $9,000,000 General Obligation
Bonds, in order to provide funds to pay costs of the construction, reconstruction and
repair of street, sidewalk and streetscape improvements, including those costs associated
with the East 7th and Commercial Street reconstruction and related improvements, two -
way street traffic conversions, and Historic Millwork District "complete streets"
improvements, and the refunding and refinancing of the General Obligation Capital Loan
Notes, Series 2010F, dated September 20, 2010, essential corporate purposes, and that
notice of the proposed action by the Council to institute proceedings for the issuance of
the Bonds, had been published pursuant to the provisions of Section 384.25 of the City
Code of Iowa.
The Mayor then asked the Clerk whether any written objections had been filed by
any City resident or property owner to the issuance of the Bonds. The Clerk advised the
Mayor and the Council that 0 written objections had been filed. The Mayor then
called for oral objections to the issuance of the Bonds and 0 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)
2