GO Bonds Series 2012E_$7K General Corporate PurposeTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$700,000 General Obligation Bonds, Series 2012E
DATE: October 1, 2012
Dubuque
kital
All- America City
II 111!
2012
Budget Director Jennifer Larson is recommending City Council approval of the
suggested proceedings for the public hearing on the issuance of General Obligation
Bonds prepared by 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 $700,000 General Obligation Bonds." These projects and their financing
methods were approved by the City Council during the Fiscal Year 2013 budget
process. The proceeds of which will be used to pay costs of projects including Granger
Creek Trail at Technology Park South; development of Creek Wood Park in the Timber -
Hyrst subdivision off Manson Road; development of the remainder of Westbrook Park in
the Westbrook Subdivision on Seippel Road next to Dubuque Industrial Center West;
maintenance on Parks buildings; Library interior and exterior repairs; and replacement
play equipment for Marshall School on Rhomberg Avenue, which will continue the City's
partnership with the Dubuque Community School District to provide playground
equipment at schools that do not have parks close to them.
Although the City is selling General Obligation Bonds to support the projects,
repayments of the debt will be from tax increment revenues of the Technology Park
South Urban Renewal Area, DRA Gaming and local option sales tax.
The borrowing is subject to the "reverse referendum" procedures, under which petitions
may be filed prior to the hearing asking that the bond proposal be submitted to an
election. To qualify, a petition must be signed by eligible electors equal to at least ten
percent of the number who voted in the last regular municipal election (but not less than
ten persons). The proceedings have been prepared on the basis that no objections or
petitions calling for an election on the bond proposal 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 bonds closed. Immediately following, and assuming no
petitions have been filed, a resolution is to be introduced and adopted entitled
"Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to
Exceed $700,000 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 proceeding 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.
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
Teri Goodmann, Assistant City Manager
Jennifer Larson, Budget Director
Kenneth TeKippe, Finance Director
Susan Henricks, Library Director
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$700,000 General Obligation Bonds, Series 2012E
DATE: October 1, 2012
Dubuque
kital
All- America City
II 111!
2012
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 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 $700,000 General
Obligation Bonds." These projects and their financing methods were approved by the
City Council during the Fiscal Year 2013 budget process. The proceeds of which will be
used for general corporate purposes of the City. A letter from attorney Mark Cory
detailing information on the bond hearing is enclosed.
DISCUSSION
Of the bond amount:
• $193,000 is intended to provide funds to pay costs of Granger Creek Trail at
Technology Park South. Improvements include asphalting the Granger Creek
Nature Trail, plus trail signs, benches, shelters, picnic tables and litter
receptacles.
• $100,000 is intended to provide funds to pay costs of developing Creek Wood
Park. This project provides for developing a new mini park in the Timber -Hyrst
subdivision off Manson Road. Play equipment and play space will be included
as well as a sitting area to enjoy the view.
• $30,000 is intended to provide funds for developing the remainder of Westbrook
Park in the Westbrook Subdivision on Seippel Road next to the Dubuque
Industrial Center West.
• $30,000 is intended to provide funds to pay costs of replacing the roofs on the
golf course maintenance building, garage for the patrol cars, and building at the
McAleece Park and Recreation Complex.
• $10,000 is intended to provide funds for renovating the old ski club building on
32nd Street that is now used for storage of recreation program equipment.
• $30,000 is intended to provide funds for Library Exterior Repair. This includes
replacement of existing steps and brick stringers to basement of original
Carnegie building, replacement of concrete door sill with Indiana limestone,
repair deterioration in stone columns at historic entrance, remove rust stains at
top landing, repair eight ornamental steps and railings, and light posts.
• $135,000 is intended to provide funds for Library Renovation Repairs. The
repairs and repainting include the mezzanine and rotunda ceiling, elm veneer
replacement, additional ventilation to attic space over rotunda to prevent
damage to interior paint, repair wainscoting that has slipped in the Board Room
and Auditorium, additional HVAC control to third floor elevator lobby, and
replacement of failed wood flooring.
• $13,000 is intended to provide funds for the replacement of ten insulated glass
windows, resealing, and repair of twenty -six aluminum grids at the Library.
• $80,000 is intended to provide funds play equipment for Marshall School on
Rhomberg Avenue. This project would continue our partnership with the
Dubuque Community School District to provide playground equipment at schools
that do not have parks close to them.
• $10,000 is intended to provide funds for bond issuance costs and
• $69,000 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 Technology Park
South Urban Renewal Area, DRA Gaming and local option sales tax.
Careful review of the draft Official Statement by appropriate City staff and members of
the City Council is an important step in the offering of the bonds for sale to the public.
The U.S. Securities and Exchange Commission (the "Commission) has stated that
"issuers are primarily responsible for the content of their disclosure documents and may
be held liable under the federal securities laws for misleading disclosure." In several
recent enforcement proceedings, the Commission has made clear that it expects public
officials to generally review disclosure documents in light of their unique knowledge and
perspectives on the issuer and its financial circumstances, or else to ensure that
appropriate procedures are in place to provide the necessary review.
The borrowing is subject to the "reverse referendum" procedures, under which petitions
may be filed prior to the hearing asking that the bond proposal be submitted to an
election. To qualify, a petition must be signed by eligible electors equal to at least ten
percent of the number who voted in the last regular municipal election (but not less than
ten persons). The proceedings have been prepared on the basis that no objections or
petitions calling for an election on the bond proposal 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 bonds closed. Immediately following, and assuming no
petitions have been filed, a resolution is to be introduced and adopted entitled
"Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to
Exceed $700,000 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 proceeding 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
Teri Goodmann, 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
WWW.AHLERSLAW.COM
R. Mark Cory
rcory@ahlerslaw.com
September 28, 2012
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Not to exceed $700,000 General Obligation Bonds, Series 2012E
Dear Ms. Larson:
Direct Dial:
(515)246 -0378
We enclose suggested proceedings to be acted upon by the Council on the date
fixed for the hearing on the proposed issuance of the above mentioned bonds, pursuant to
the provisions of Code Section 384.26. A certificate to attest the proceedings is also
enclosed.
Action must be taken at hearing. The proceedings are prepared to show as a first
step the receipt of any petition for election on the proposed action of the Council to issue
the bonds.
If no petition is filed, the Council should proceed to adopt the resolution instituting
proceedings to take additional action for the issuance of the bonds. Please notify me of
the action taken so we can arrange to prepare the proceedings to follow.
In the event the Council decides to abandon the proposal to issue bonds, then the
form of resolution should not be adopted. We would suggest that, in this event, a motion
merely be adopted to the effect that the bond proposal is abandoned.
If Petition for Referendum is Filed.
If such a petition has been received and if the Council decides not to abandon the
proposal to issue bonds, a form of resolution should be introduced and adopted, to
adjourn the matter to permit preparation of the resolution to call an election.
WISHARO & BAILY - 1888: GUERNSEY & BAILY - 1893; BAILY & STIPP - 1901: STIPP, PERRY, BANNISTER & STARZINGER - 1914: BANNISTER. CARPENTER.
AHLERS & COONEY - 1950: AHLERS, COONEY, DORWEILER. ALLBEE, HAYNIE & SMITH - 1974; AHLERS, COONEY, DORWEILER, HAYNIE. SMITH & ALLBEE, P.C. - 1990
September 28, 2012
Page 2
Please see that we are advised immediately if a petition is filed bearing signatures
of a sufficient number of eligible electors.
The resolution also authorizes a preliminary Official Statement to be completed
and distributed in connection with the offering of the Bonds for sale. A draft copy of the
preliminary Official Statement will be delivered to you separately by Piper Jaffray, and
should be forwarded to the City Council with the enclosed proceedings.
Careful review of the draft Official Statement by appropriate City staff and
members of the City Council is an important step in the offering of the Bonds for sale to.
the public. The U.S. Securities and Exchange Commission (the "Commission ") has
stated that "issuers are primarily responsible for the content of their disclosure documents
and may be held liable under the federal securities laws for misleading disclosure." In
several recent enforcement proceedings, the Commission has made clear that it expects
public officials to generally review disclosure documents in light of their unique
knowledge and perspectives on the issuer and its financial circumstances, or else to
ensure that appropriate procedures are in place to provide the necessary review.
As you know, Rule 15c2 -12 of the Commission requires prospective purchasers of
the Bonds to obtain and review an official statement that has been "deemed final" by the
City prior to submitting a bid to purchase the Bonds. For this purpose, the official
statement may omit certain information that is dependent upon the pricing of the issue
(such as interest rates, bond maturities and redemption features), but should otherwise be
accurate and complete. The enclosed resolution authorizes the Finance Director to
complete the draft document, and thereafter authorizes its distribution in connection with
the offering of the Bonds to the public.
September 28, 2012
Page 3
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.
R. Mark Cory
FOR THE FIRM
RMC:dc
Encl.
cc: Ken TeKippe
Tim Oswald
00895413 -1 \10422 -139
(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: October 15 , 2012.
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 the
meeting is as follows:
Not to exceed $700,000 General Obligation Bonds, Series 2012E.
• Public hearing on the issuance.
• Resolution instituting proceedings to take additional action.
• Resolution approving Distribution of Preliminary Official Statement and
Electronic Bidding Procedures
Such additional matters as are set forth on the additional 5 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 erk, City of Dubuque, tate of Iowa
October 15, 2012
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 Jones, Kevin Lynch
David Resnick, Lynn Sutton
Absent:
1
The Mayor announced that this was the time for meeting on the matter of the
issuance of not to exceed $700,000 of General Obligation Bonds, Series 2012E, in order
to provide funds to pay costs of the acquisition, construction, reconstruction,
enlargement, improvement, and equipping of community center houses, recreation
grounds, recreation buildings, juvenile playgrounds, swimming pools, recreation centers,
parks, and golf courses, and the acquisition of real estate therefor, including the Granger
Creek Trail, Creek Wood Park, Westbrook Park Phase II, roof replacement at McAleece
Park, Park Maintenance Headquarters improvements and, Veteran's Memorial 32nd
storage; and the construction, reconstruction, enlargement, improvement, and equipping
of libraries, including Library exterior repairs, renovation and repair and replacement of
windows; and any other purpose which is necessary for the operation of the City or the
health and welfare of its citizens, including the acquisition and installation of Marshall
School playground equipment; a general corporate purpose; and that notice of the
proposal to issue the bonds and the right to petition for an election had been published as
provided by Section 384.26, of the City Code of Iowa; and, the Mayor then asked the
City Clerk whether any petition had been filed in the Clerk's Office, in the manner
provided by Section 362.4 of the City Code of Iowa, and the Clerk reported that no such
petition had been filed, requesting that the question of issuing the bonds be submitted to
the qualified electors of the City.
closed.
Whereupon, the Mayor declared the hearing on the issuance of the bonds to be
2
Whereupon, Council Member Connors introduced and delivered to the Clerk the
Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS
TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION AND ISSUANCE
OF NOT TO EXCEED $700,000 GENERAL OBLIGATION BONDS, SERIES 2012E ",
and moved that the Resolution be adopted.
Council Member Jones seconded the motion. The roll was called and the vote was,
AYES: Jones, Lynch, Resnick, Sutton, Braig, Buol, Connors
NAYS:
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 284-12
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL
ACTION FOR THE AUTHORIZATION AND ISSUANCE OF NOT TO
EXCEED $700,000 GENERAL OBLIGATION BONDS, SERIES 2012E
WHEREAS, pursuant to notice published as required by law, the City Council has
held a public meeting and hearing upon the proposal to institute proceedings for the
issuance of not to exceed $700,000 General Obligation Bonds, for general corporate
purposes, in order to provide funds to pay costs of the acquisition, construction,
reconstruction, enlargement, improvement, and equipping of community center houses,
recreation grounds, recreation buildings, juvenile playgrounds, swimming pools,
recreation centers, parks, and golf courses, and the acquisition of real estate therefor,
including the Granger Creek Trail, Creek Wood Park, Westbrook Park Phase II, roof
replacement at McAleece Park, Park Maintenance Headquarters improvements and,
Veteran's Memorial 32nd storage; and the construction, reconstruction, enlargement,
improvement, and equipping of libraries, including Library exterior repairs, renovation
3
and repair and replacement of windows; and any other purpose which is necessary for the
operation of the City or the health and welfare of its citizens, including the acquisition
and installation of Marshall School playground equipment, and no petition was filed
calling for a referendum thereon. The following action is now considered to be in the best
interests of the City and residents thereof;
WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is appropriate to
offer the foregoing Bonds for sale, in the aggregate principal amount as hereinafter
described; and
WHEREAS, a preliminary form of Official Statement has been prepared for the
purpose of offering the Bonds for sale to the public; and
WHEREAS, it is appropriate that the form of the preliminary Official Statement
be approved and deemed final and, upon completion of the same, that the preliminary
Official Statement be used in connection with the offering of the Bonds for sale to the
public; and
WHEREAS, the Council has received information from its financial advisor
recommending that sealed and electronic facsimile and internet bidding be authorized for
the sale of the Bonds, and that such procedures will maintain the integrity and security of
the competitive bidding process and facilitate the delivery of bids by interested parties;
and
WHEREAS, the Council deems it in the best interests of the City and the residents
thereof to receive bids to purchase such Bonds by means of sealed and electronic
facsimile and internet communication.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, STATE OF IOWA:
Section 1. That this Council does hereby institute proceedings and take additional
action for the authorization and issuance in the manner required by law of not to exceed
$700,000 General Obligation Bonds, for the foregoing general corporate purpose.
Section 2. The receipt of electronic bids by facsimile machine and through the
PARITY competitive bidding system described in the Official Statement are hereby
found and determined to provide reasonable security and to maintain the integrity of the
competitive bidding process, and to facilitate the delivery of bids by interested parties in
connection with the offering of the Bonds at public sale.
Section 3. That the preliminary Official Statement in the form presented to this
meeting be and the same hereby is approved as to form and deemed final for purposes of
-4-
Rule 15c2 -12 of the Securities and Exchange Commission, subject to such revisions,
corrections or modifications as the Finance Director, upon the advice of bond counsel and
the City's financial advisor, shall determine to be appropriate, and is authorized to be
distributed thereafter in connection with the offering of the Bonds for sale.
PASSED AND APPROVED this 15th day of October , 2012.
ATTEST:
5
AidLi
Mayor 7
CERTIFICATE
STATE OF IOWA
) SS
COUNTY OF DUBUQUE
I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby
certify that attached is a true and complete copy of the portion of the corporate records of
the City showing proceedings of the City Council, and the same is a true and complete
copy of the action taken by the Council with respect to the 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 the 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 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 the 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 the City hereto affixed this day of
, 2012.
City Clerk, City of Dubuque, State of Iowa
(SEAL)
00895408 -1 \10422 -139
NOTICE OF MEETING
OF THE COUNCIL OF
THE CITY OF
DUBUQUE, IOWA, ON
THE MATTER OF THE
PROPOSED ISSUANCE
OF NOT TO EXCEED
$700,000 PRINCIPAL
AMOUNT OF
GENERAL
OBLIGATION BONDS
SERIES GENERAL 2012E (FOR
CORPORATE
PURPOSES), AND
HEARING ON
ISSUANCE OF FONDS
Public Note is
hereby given that ic the
Council of the City of
necessary for the
operation of the City or
the health and welfare
of its citizens,
including the acqui-
sition and installation
of i Marshall School
playground equipment.
At any time before the
date of the meeting, at'
petition, asking
Dubuque, Iowa, will
ruction, enlargement,
improvement, and
ncluding L of ibrary rexter-
and repairepaenovatand
replacement of win-
dows; and any other
purpose which is
the question of issuing
hold a public hearing such bonds be
on the '15th day of sobmi of d ho'C the Y
octber, 2012, at 630 be filed with the City
o'clock Fed in d- Clerk of the;City in the
Historic 0edWel Bu6d- manner provided by
ins, ,D West :6th Section 362.4 of the
Street, Dubuque, Iowa, Code of Iowa, pursuanf
at which meeting
Council proposes to
take action for the
issuance of not to
exceed $700,000 of
General Obligation
Bonds, Series 2012E
(for general corporate
puoses), the rate of
bearing
interest at
not to exceed nine (9)
per centum per annum,
the bonds to be issued
for the purpose of
providing funds to pay
costs of construction,
acqui-
sition,
reennstructio oue , iment
ment, imp
and equipping center
community recreation
houses, recreation
ecreation
buildings, juvenile playng -
grounds, swi m mi
pools, recreation gtohle f
torsr , sep c arks,annd
caocquisition
to ? pr,.26 ns o
section
384°4!26 of the
code of Iowa.
This Notice is given by
order of the Council of
the City of Dubuque,
Iowa, as provided by
Section 384.26 of the
Code of Iowa.
Any visual or hearing -
impaired persons need-
ing special assistance
or persons with special
accessibility needs
should contact the City
Clerk's office at (
TDD 563) at
of real
estate therefor, includ-
ing the anger Cre
Tral, Greek Gr Wood Parkek ,
Wesitbrook Park Phase
II, roo replacement at
McAlef ece Park, Park
Maintenance Head-
quarters improvements
and, Veteran's Memor-
ial 32nd storage; and
the construction, recon-
589 -4120 or
(563) 690 -6678 at least
48 hours prior to the
meeting.
Dated , this 2412 3rd day of
October.
Kevin S. Firnstahl
City Clerk, City of
Dubuque, Iowa
0/3
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: October 03, 2012, and for which the charge is $34.81.
Subscribed to before me, alptary Public in and for Dubuque County, Iowa,
,20
this day of
rotary Public in and for Dubuque County, Iowa.
MARY K. WEST ERMEYER
Cdrnrnj eiart lkiumbor 184885