Sales Tax Increment Revenue Bonds $30M (Stormwater Utility Revenue Supported) InitiateTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
band
AI -America City
r
2007 • 2012 • 2013
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$30,000,000 State Revolving Loan Funds (SRF) (Sales Tax Increment
and Stormwater Utility Revenue Supported)
DATE: May 28, 2014
Finance Director Ken TeKippe recommends that a public hearing be set for June 16,
2014, on the proposition of issuing not to exceed $30,000,000 in State Revolving Loan
Funds (SRF) (Sales Tax Increment and Stormwater Utility Revenue Supported). The
proceeds will be used primarily for Phases 4 and 7 of the Bee Branch Watershed Flood
Mitigation Project.
The Bee Branch Watershed, which includes the City's most developed areas where
over 50% of city residents either live or work, has experienced repeated flooding
impacting thousands of properties and over seventy businesses. Six Presidential
Disaster Declarations have been issued since 1999 as a result of flood damage to
public and private property.
In 2012 the State of Iowa Flood Mitigation Program (Program) was created. It
established two possible funding sources for flood mitigation projects: a Flood Mitigation
Fund and a Sales Tax Increment Fund. To date, no funds have been appropriated for
the Flood Mitigation Fund. The Sales Tax Increment Fund is to consist of the increase
in the state share of the sales tax revenues from communities with qualifying
applications. The maximum state share of sales tax increment that can be diverted
from the state and used instead for flood mitigation projects is $30 million per year. The
maximum award for any qualifying single community is $15 million per year. To qualify
for sales tax increment funding, federal financial assistance must have been secured for
the project. A local match is also required and the state sales tax increment cannot
exceed 50% of the total project cost. In April of 2013 the State Flood Mitigation
Program Board (the Board) was established and at its third meeting in July of 2013, the
Board adopted the administrative rules for the Program.
In 2013, the City Council adopted the Drainage Basin Master Plan authored by HDR
Engineering that outlines improvements to mitigate flooding. Collectively, the 12 -phase
project is referred to as the Bee Branch Watershed Flood Mitigation Project.
In November of 2013 the City Council authorized the City's application to the State for
the use of up to $98,494,178.00 in sales tax increment funds for the Bee Branch
Watershed Flood Mitigation Project. The City's application included a Project Plan that
included information about the various phases of the project, the schedule for
construction, and a financing plan.
On December 4, 2013, the Iowa Flood Mitigation Board approved the City's application
and use of $98,494,178.00 in state sales tax increment funds for the Bee Branch
Watershed Flood Mitigation Project.
Through the agreement with the Iowa Flood Mitigation Board, the City will receive up to
$98,494,178.00 in sales tax increment revenue over a twenty-year period per the
schedule outlined in the City's Project Plan. The first sales tax increment revenue
receipt is projected to be received on July 15, 2014. Subsequent receipts will be
received every three months.
In order to allow for constructing flood mitigation improvements as soon as possible, the
Iowa Flood Mitigation Program specifically allowed for communities to issue debt, build
the improvements, and abate the debt using the annual sales tax increment payments
from the State.
The City's Project Plan outlines issuing $90 million in debt in order to construct nine of
the twelve phases of the Bee Branch Watershed Flood Mitigation Project by 2020 with
the debt to be abated primarily with the State Sales Tax Increment Revenue. City
Stormwater Management Utility Fees will also be used to retire debt.
The first two proposed debt issuances for the Bee Branch Watershed Flood Mitigation
Project are the $7.2 million Series 2014A Sales Tax Increment Revenue Bond and a
$29 million U.S. EPA Clean Water SRF. In late FY 2015, an estimated $16.5 million
Sales Tax Increment Revenue Bond will be issued. Collectively, the first three debt
issuances will provide the necessary funding to complete the Bee Branch Creek
Restoration Project and the Flood Mitigation Gate Replacement Project which involves
the replacement of the gate structure where the Bee Branch Creek flows into the Peosta
Channel. Consistent with the Project Plan, the need for additional debt is anticipated in
future years. This will likely be a combination of U.S. EPA Clean Water SRF and
General Obligation Bonds to be abated with revenue from the Stormwater Management
Utility Fee. However, the Project Plan allows the City the ability to reduce the need for
future debt should the initial debt financing have lower than anticipated interest costs or
project costs come in lower than estimated.
The first debt issuance of $7.2 million was sold at an interest rate that saved the City
over $1 million from the project plan projections.
The U.S. EPA SRF loan funding is administered by the Iowa Department of Natural
Resources (IDNR) with assistance from the Iowa Finance Authority (IFA). It carries a
2
pre -established, low interest rate and instead of being dispersed all up -front in a lump
sum payment, the funds are dispersed as expended. The City will issue as much of the
necessary debt in the form of the U.S. EPA SRF loans instead of General Obligation
Bonds, due to the lower interest rate provided on the U.S. EPA SRF loans. Not all
project elements are eligible for funding through U.S. EPA SRF.
A portion of the funding for the Bee Branch Watershed Flood Mitigation project consists
of a State Revolving Fund Loan in the amount of not to exceed $30,000,000, in which
principle and interest will be paid for by State Sales Tax Increment that was awarded by
the State Flood Mitigation Board. In the event that State Sales Tax Increment Revenue
falls short of debt service due on the Sales Tax Increment Revenue Bonds, Stormwater
Utility Revenue will be used to cover the shortage.
The State Revolving Fund Loan for the Upper Bee Branch qualifies for the State
Revolving Fund Green Project Forgivable Program. Of the not to exceed $30,000,000
Capital Loan Notes, $4,430,100 is forgivable if the project is constructed as required.
The State Revolving Capital Loan Notes will carry an annual 1.75% interest rate for 20
years, with an annual servicing fee of 0.25%. There is also a onetime 0.5% upfront loan
origination fee. This compares favorably with the 3.37% rate on the $7.2 million in
bonds recently issued for non -SRF eligible expenses.
In the case of the Water and Resource Recovery Center SRF borrowing, the City's
Sponsored Project application was approved to use $9.4 million of the interest
payments for over 70 pervious green alleys in the Bee Branch Creek Watershed. The
City intends to discuss with the Iowa Department of Natural Resources the possibility of
applying for a Sponsored Project to use $2.9 million of the interest on this loan for a
Catfish Creek Watershed Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
,alt%
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Kenneth J. TeKippe, Finance Director
3
THE CITY OF
DUB
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
Dubuque
brittliAl-AmerIcaelly
I.
2007 • 2012 • 2013
SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed
$30,000,000 State Revolving Loan Funds (SRF) (Sales Tax Increment and
Stormwater Utility Revenue Supported)
DATE: May 29, 2014
INTRODUCTION
The purpose of this memorandum is to recommend the setting of a public hearing on the
proposal to issue State Revolving Loan Funds (SRF) (Sales Tax Increment and Stormwater
Utility Revenue Supported), the proceeds of which will be used primarily for Phases 4 and 7 of
the Bee Branch Watershed Flood Mitigation Project. A letter from attorney William Noth detailing
information on the bond hearing and publication of notice is enclosed. The bonds will be issued
to the Iowa Finance Authority (IFA) through the State Revolving Loan Fund Program (SRF).
BACKGROUND
The Bee Branch Watershed, which includes the City's most developed areas where over 50% of
city residents either live or work, has experienced repeated flooding impacting thousands of
properties and over seventy businesses. Six Presidential Disaster Declarations have been
issued since 1999 as a result of flood damage to public and private property.
In 2012 the State of Iowa Flood Mitigation Program (Program) was created. It established two
possible funding sources for flood mitigation projects: a Flood Mitigation Fund and a Sales Tax
Increment Fund. To date, no funds have been appropriated for the Flood Mitigation Fund. The
Sales Tax Increment Fund is to consist of the increase in the state share of the sales tax
revenues from communities with qualifying applications. The maximum state share of sales tax
increment that can be diverted from the state and used instead for flood mitigation projects is
$30 million per year. The maximum award for any qualifying single community is $15 million per
year. To qualify for sales tax increment funding, federal financial assistance must have been
secured for the project. A local match is also required and the state sales tax increment cannot
exceed 50% of the total project cost. In April of 2013 the State Flood Mitigation Program Board
(the Board) was established and at its third meeting in July of 2013, the Board adopted the
administrative rules for the Program.
In 2013, the City Council adopted the Drainage Basin Master Plan authored by HDR
Engineering that outlines improvements to mitigate flooding. Collectively, the 12 -phase project is
referred to as the Bee Branch Watershed Flood Mitigation Project.
In November of 2013 the City Council adopted Resolution 336-13 authorizing the City's
application to the State for the use of up to $98,494,178.00 in sales tax increment funds for the
Bee Branch Watershed Flood Mitigation Project. The City's application included a Project Plan
that included information about the various phases of the project, the schedule for construction,
and a financing plan.
On December 4, 2013, the Iowa Flood Mitigation Board approved the City's application and use
of $98,494,178.00 in state sales tax increment funds for the Bee Branch Watershed Flood
Mitigation Project.
In February of 2014, the City Council adopted Resolution 31-14 authorizing the execution of an
agreement with the Iowa Flood Mitigation Board binding the City to the terms of the agreement
as required for the City's receipt of up to $98,494,178.00 in state sales tax increment funds for
the Bee Branch Watershed Flood Mitigation Project through the State Flood Mitigation Program.
The City's application (arid associated Project Plan) was established as an integral part of the
agreement.
The following table shows the projected uses of the sales tax increment revenue by the City:
Table 1
Bee Branch Watershed Flood Mitigation
Estimated Sales Tax Increment Uses
Project Funding Source
Estimated
Sales Tax
Increment
U.S. EPA Clean Water SRF loan repayment $24,491,634
Sales Tax Increment Bond interest, issuance fees & reserve $21,880,000
Flood Gate Replacements $2,099,000
Lower Bee Branch $362,243
Upper Bee Branch & Culvert $20,680,809
Permeable Pavement Alleys $8,760,492
North End Storm Sewer Improvements $1,160,000
22nd Street Storm Sewer Improvements $3,380,000
Flood Control Maintenance Facility $4,360,000
Water Plant Flood Control $3,800,000
17th Street Storm Sewer
Total Project Funding Source
Percent of Total Cost
$7,520,000
$98,494,178
49.02%
On December 4th, 2006, City Council passed Resolution No. 585-06 authorizing General
Obligation Capital Loan Notes (State Revolving Fund Planning and Design) to be issued for the
Upper Bee Branch in the amount of $617,821. The entirety of the loan was drawn down and
used for designing the Upper Bee Branch.
On June 17th, 2013 the City of Dubuque held a public hearing on the issuance of not to exceed
$14,767,000 Stormwater Utility Revenue Capital Loan Notes (State Revolving Loan Fund
Program). The public hearing was held to satisfy the Economic Development Administration
Grant requirement that the local match is fully committed and readily available and the
resolution for the issuance of the debt approved. The City was planning to sell the not to exceed
$14,767,000 in Stormwater Utility State Revolving Loan Funds when the construction of the Bee
Branch Creek Restoration would be bid.
2
As part of the agreement with the State Flood Mitigation Board, the City of Dubuque can issue
State Revolving Loan Funds (Sales Tax Increment and Stormwater Utility Revenue Supported).
The sales tax increment can be used to pay the principle and interest on these bonds.
DISCUSSION
Through the agreement with the Iowa Flood Mitigation Board, the City will receive up to
$98,494,178.00 in sales tax increment revenue over a twenty-year period per the schedule
outlined in the City's Project Plan. There is a three month delay from the time sales tax quarterly
returns are submitted to the Iowa Department of Revenue and when the sales tax increment is
remitted to the City of Dubuque. The first sales tax increment revenue receipt is projected to be
received on July 15, 2014. Subsequent receipts will be received every three months.
The estimated sales tax increment revenue receipts for the City are shown in following table.
Table 2
Estimated Sales Tax Increment Revenue Receipts to
City of Dubuque
Fiscal Year
Estimated
Sales Tax Increment
Revenue Receipts
2015
2016
$1,068,677
$1,786,625
2017 $2,518,644
2018 $3,265,011
2019 $4,026,006
2020 $4,801,918
2021 $5,593,037
2022 $6,399,662
2023 $6,869,796
2024 $6,956,900
2025 $6,956,900
2026 $6,952,300
2027 $6,952,300
2028 $6,947494
2029 $6,713,458
2030 $6,238,500
2031 $5,738,500
2032 $4,328,480
2033 $3,032,469
2034 $1,347,501
Total $98,494,178
3
In order to allow for constructing flood mitigation improvements as soon as possible, the Iowa
Flood Mitigation Program specifically allowed for communities to issue debt, build the
improvements, and abate the debt using the annual sales tax increment payments from the
State.
The City's Project Plan outlines issuing $90 million in debt in order to construct nine of the
twelve phases of the Bee Branch Watershed Flood Mitigation Project by 2020 with the debt to
be abated primarily with the State Sales Tax Increment Revenue. City Stormwater Management
Utility Fees will also be used to retire debt.
The first two proposed debt issuances for the Bee Branch Watershed Flood Mitigation Project
are the $7.2 million Series 2014A Sales Tax Increment Revenue Bond and a $29 million U.S.
EPA Clean Water SRF. In late FY 2015, an estimated $16.5 million Sales Tax Increment
Revenue Bond will be issued. Collectively, the first three debt issuances will provide the
necessary funding to complete the Bee Branch Creek Restoration Project and the Flood
Mitigation Gate Replacement Project which involves the replacement of the gate structure
where the Bee Branch Creek flows into the Peosta Channel. The gate structure works in
conjunction with the John C. Culver Floodwall/Levee System that provides the City protection
from the Mississippi River when it is above flood stage. Consistent with the Project Plan, the
need for additional debt is anticipated in future years. This will likely be a combination of U.S.
EPA Clean Water SRF and General Obligation Bonds to be abated with revenue from the
Stormwater Management Utility Fee. However, the Project Plan allows the City the ability to
reduce the need for future debt should the initial debt financing have lower than anticipated
interest costs or project costs come in lower than estimated.
4
The following table shows that the State Sales Tax Increment Revenue will cover the principal
and interest payments for the first three debt issuances.
Table 3
Estimated Sales Tax Increment Revenues and Anticipated Debt Service Requirements
Estimated
Sales Tax
Fiscal Increment
Year Revenue
Recei pts
$7.2M
Series 2014A
Debt Service
$29M
Series 2014B
SRF Loan
Debt Service
$16.5M*
Series 2015A
Debt Service
Sales Tax
Increment
Balance after
Debt Service
Cumulative
Sales Tax
Increment
Balance after
Debt Service
2015
$1,068,677
$0
($320,000)
$0
$748,677
$748,677
2016
$1,786,625
$0
($1,587,274)
$0
$199,351
$948,028
2017
$2,518,644
($323,100)
($1,586,821)
$0
$608,723
$1,556,751
2018
$3,265,011
($323,100)
($1,586,358)
($677,330)
$678,223
$2,234,974
2019
$4,026,006
($323,100)
($1,585,887)
($677,330)
$1,439,689
$3,674,663
2020
$4,801,918
($323,100)
($1,585,405)
($677,330)
$2,216,083
$5,890,746
2021
$5,593,037
($323,100)
($1,584,915)
($677,330)
$3,007,692
$8,898,438
2022
$6,399,662
($323,100)
($1,584,414)
($677,330)
$3,814,818
$12,713,256
2023
$6,869,796
($438,100)
($1,583,903)
($677,330)
$4,170,463
$16,883,719
2024
$6,956,900
($1,393,500)
($1,583,383)
($3,152,330)
$827,687
$17,711,406
2025
$6,956,900
($1,400,500)
($1,582,851)
($3,153,580)
$819,969
$18,531,375
2026
$6,952,300
($1,344,250)
($1,582,310)
($3,152,640)
$873,100
$19,404,475
2027
$6,952,300
($1,363,000)
($1,581,757)
($3,149,692)
$857,851
$20,262,326
2028
$6,947,494
($1,365,000)
($1,581,193)
($3,154,288)
$847,013
$21,109,339
2029
$6,713,458
($1,365,000)
($1,580,618)
($3,151,142)
$616,698
$21,726,037
2030
$6,238,500
$0
($1,580,031)
$0
$4,658,469
$26,384,506
2031
$5,738,500
$0
($1,579,433)
$0
$4,159,067
$30,543,573
2032
$4,328,480
$0
($1,633,358)
$0
$2,695,122
$33,238,695
2033
$3,032,469
$0
($1,771,487)
$0
$1,260,982
$34,499,677
2034
Total
$1,347,501
$0
$0
$0
$1,347,501
$35,847,178
$98,494,178
($10,607,950)
($29,061,398)
($22,977,652)
$35,847,178
*The first quarterly sales tax increment revenue will be received on July 15, 2014.
The U.S. EPA SRF loan funding is administered by the Iowa Department of Natural Resources
(IDNR) with assistance from the Iowa Finance Authority (IFA). It carries a pre -established, low
interest rate and instead of being dispersed all up -front in a lump sum payment, the funds are
dispersed as expended. The City will issue as much of the necessary debt in the form of the
U.S. EPA SRF loans instead of General Obligation Bonds, due to the lower interest rate
provided on the U.S. EPA SRF loans. Not all project elements are eligible for funding through
U.S. EPA SRF.
A portion of the funding for the Bee Branch Watershed Flood Mitigation project consists of a
State Revolving Fund Loan in the amount of not to exceed $30,000,000, in which principle and
interest will be paid for by State Sales Tax Increment that was awarded by the State Flood
5
Mitigation Board. In the event that State Sales Tax Increment Revenue falls short of debt
service due on the Sales Tax Increment Revenue Bonds, Stormwater Utility Revenue will be
used to cover the shortage.
The State Revolving Fund Loan for the Upper Bee Branch qualifies for the State Revolving
Fund Green Project Forgivable Program. Of the not to exceed $30,000,000 Capital Loan Notes,
$4,430,100 is forgivable if the project is constructed as required. The State Revolving Capital
Loan Notes will carry an annual 1.75% interest rate for 20 years, with an annual servicing fee of
0.25%. There is also a onetime 0.5% upfront loan origination fee.
This loan will cover the eligible SRF expenses for the land acquisition, engineering and
construction of the Bee Branch Creek Restoration, or phases four and seven of the Bee Branch
Watershed Flood Mitigation Project. Although the loan amount has increased since the Public
Hearing approving the issuance of $14,767,000 Stormwater Utility Revenue Capital Loan Notes
(State Revolving Loan Fund Program) on June 17, 2013, the commitment to satisfy the EDA
required local match has not changed. The City is committed to funding $8,988,750 using the
not to exceed $30,000,000 State Revolving Loan Funds (SRF) (Sales Tax Increment and
Stormwater Utility Revenue Supported).
The remaining balance of the General Obligation Capital Loan Notes Anticipation Project Note,
Series 2006 (State Revolving Fund Planning and Design) of $617,821 will be paid off with the
proceeds from the not to exceed $30,000,000 State Revolving Loan Funds (SRF) (Sales Tax
Increment and Stormwater Utility Revenue Supported), as required by the Planning and Design
loan agreement.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution fixing the date of
June 16, 2014 for a public hearing on the proposition of issuing not to exceed $30,000,000
State Revolving Loan Funds (SRF) (Sales Tax Increment and Stormwater Utility Revenue
Supported) for the foregoing purposes and providing publication of notice.
Attachment
cc: Barry Lindahl, City Attorney
Jennifer Larson, Budget Director
6
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
William J. Noth
wnoth@ahlerslaw.com
May 16, 2014
Mr. Ken TeKippe
Finance Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Not to exceed $30,000,000 Sales Tax Increment Revenue Bonds
(Stormwater Utility Revenue Supported)
Dear Mr. TeKippe
Direct Dial:
(515)246-0332
We have now prepared and are enclosing herewith suggested proceedings to be
acted upon by the Council in fixing the date of a meeting on the proposition to issue
the above mentioned Bonds and ordering publication of a notice of hearing consistent
with the provisions of Code Sections 418.14 and 384.83.
These Bonds will be issued to the Iowa Finance Authority ("IFA") to evidence
a SRF loan agreement between the City and IFA. As we discussed, the Bonds will be
the City's second series of Sales Tax Increment Revenue Bonds, this time having a
"back up" pledge of Stormwater Utility revenues. The resolution states that the Bonds
will be issued in lieu of the not to exceed $14,767,000 Stormwater Utility Revenue
Capital Loan Notes that were the subject of a public hearing held last June.
Notice of this meeting must be published at least once in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The date of publication is to be not less than four clear
days nor more than twenty days before the date of said public meeting on the issuance
of the Bonds. In computing time, the date of publication should be excluded. If the
last day falls on Sunday, the whole of the following Monday should be excluded.
May 16, 2014
Page 2
Also enclosed is an extra copy of the proceedings to be completed as the
original and returned to us for our transcript of the action taken, together with
publisher's affidavit of publication of notice of hearing. We are also enclosing an
extra copy of the notice of hearing to be delivered to the newspaper for publication
purposes.
Should you have any questions pertaining to these proceedings, please don't
hesitate to contact me.
Very truly yours,
William J. Noth
WJN:dc
Encl.
cc: Barry Lindahl (w/encl.)
Jenny Larson (w/encl.)
01021311-1\10422-146
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: June 2, 2014.
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 said
meeting is as follows:
Not to exceed $30,000,000 Sales Tax Increment Revenue Bonds (Stormwater Utility
Revenue Supported)
X Resolution fixing date for a meeting on the proposition to issue.
Such additional matters as are set forth on the additional 8 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 Cl <r , Dubuqu-, •
June 2, 2014
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:
2
Council Member Lynch introduced the following Resolution entitled
"RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE
ISSUANCE OF NOT TO EXCEED $30,000,000 SALES TAX INCREMENT
REVENUE BONDS (STORMWATER UTILITY REVENUE SUPPORTED) OF
DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE
THEREOF", and moved that the same be adopted. Council Member Jones seconded the
motion to adopt. The roll was called and the vote was,
AYES: Buol, Connors, Jones, Lynch, Resnick, Sutton, Braig
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 165-14
RESOLUTION FIXING DATE FOR A MEETING ON THE
PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED
$30,000,000 SALES TAX INCREMENT REVENUE BONDS
(STORMWATER UTILITY REVENUE SUPPORTED) OF
DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF
NOTICE THEREOF
WHEREAS, on June 17, 2013, the City Council held a public hearing and took
additional action for the issuance of not to exceed $14,767,000 Stormwater Utility
Revenue Capital Loan Notes (State Revolving Loan Fund Program), the proceeds of
which were to be used to pay costs of acquisition, construction, reconstruction, extending,
remodeling, improving, repairing and equipping all or part of the Stormwater
Management Utility, including those costs associated with the construction of the Bee
Branch Disaster Resiliency Project; and
WHEREAS, the foregoing action was taken to satisfy the Economic Development
Administration grant ("EDA Grant") requirement that the local match for the EDA Grant
be fully committed and readily available; and
WHEREAS, it is now deemed necessary and advisable that, in lieu of the above-
described Stormwater Utility Revenue Capital Loan Notes, the City of Dubuque, Iowa
should issue Sales Tax Increment Revenue Bonds to the Iowa Finance Authority under
3
the State Revolving Fund Loan Program, to the amount of not to exceed $30,000,000, as
authorized by Section 418.14 of the Code of Iowa, for the purpose of providing funds to
pay costs of carrying out the flood mitigation projects as hereinafter described and to
provide the local match for the EDA Grant; and
WHEREAS, Section 418.14 provides that the City Council shall follow the bond
authorization procedures set forth in Section 384.83 before issuing Sales Tax Increment
Revenue Bonds under that Section, and it is therefore necessary that the action hereinafter
described be taken and that the Clerk publish a notice of the proposal and of the time and
place of the meeting at which the Council proposes to take action thereon and to receive
oral and/or written objections from any resident or property owner of said City to such
action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. This Council shall meet in the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the 16th day of June, 2014, for the
purpose of taking action on the matter of the issuance of not to exceed $30,000,000 Sales
Tax Increment Revenue Bonds (Stormwater Utility Revenue Supported), the proceeds of
which will be used to provide funds to pay costs of land acquisition, engineering and
construction of Phases 4 and 7 of the Bee Branch Watershed Flood Mitigation Project,
consisting of the Lower Bee Branch Creek Restoration and the Upper Bee Branch Creek
Restoration, and the refunding and refinancing of the outstanding General Obligation
Capital Loan Notes Anticipation Project Note, Series 2006, dated December 28, 2006,
issued in respect of such costs. Said Bonds shall be payable from the City's flood project
fund established in the Master Bond Resolution approved on May 19, 2014, into which
all sales tax increment revenues received from the State of Iowa as part of the award to
the City under the Flood Mitigation Program shall be deposited. In addition, to the extent
necessary and provided for in the Series Resolution authorizing issuance of said Bonds,
Stormwater Utility revenues collected by the City also may be transferred to the flood
project fund and applied to the payment of the Bonds. The Bonds are expected to be
issued to the Iowa Finance Authority to evidence the City's obligations under a Loan and
Disbursement Agreement between the City and the Iowa Finance Authority, to be entered
into under the State Revolving Fund Loan Program.
Section 2. The Clerk is hereby directed to cause at least one publication to be
made of a 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 on the issuance of said Bonds.
4
Section 3. The notice of the proposed action to issue said Sales Tax Increment
Revenue Bonds shall be in substantially the following form:
5
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE,
IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO
EXCEED $30,000,000 SALES TAX INCREMENT REVENUE BONDS
(STORMWATER UTILITY REVENUE SUPPORTED) OF SAID CITY, AND
THE HEARING ON THE ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa, will
hold a public hearing on the 16th day of June, 2014, 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 issuance of not to exceed $30,000,000 Sales
Tax Increment Revenue Bonds (Stormwater Utility Revenue Supported) in order to
provide funds to pay costs of land acquisition, engineering and construction of Phases 4
and 7 of the Bee Branch Watershed Flood Mitigation Project, consisting of the Lower
Bee Branch Creek Restoration and the Upper Bee Branch Creek Restoration, and the
refunding and refinancing of the outstanding General Obligation Capital Loan Notes
Anticipation Project Note, Series 2006, dated December 28, 2006, issued in respect of
such costs. Said Bonds shall be payable from the City's flood project fund established in
the Master Bond Resolution approved on May 19, 2014, into which all sales tax
increment revenues received from the State of Iowa as part of the award to the City under
the Flood Mitigation Program shall be deposited. In addition, to the extent necessary and
provided for in the Series Resolution authorizing issuance of said Bonds, Stormwater
Utility revenues collected by the City also may be transferred to the flood project fund
and applied to the payment of the Bonds. The Bonds are expected to be issued to the
Iowa Finance Authority to evidence the City's obligations under a Loan and
Disbursement Agreement between the City and the Iowa Finance Authority, to be entered
into under the State Revolving Fund Loan Program.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of said 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 said Sales Tax Increment Revenue
Bonds or will abandon the proposal to issue said Bonds. The hearing and appeals
therefrom shall be held in accordance with and governed by the provisions of Section
384.83 of the Code of Iowa.
This notice is given by order of the Council of Dubuque, Iowa, as provided by
Sections 418.14 and 384.83 of the Code of Iowa.
Dated this 6th day of June, 2014.
City Clerk of Dubuque, Iowa
(End of Notice)
6
PASSED AND APPROVED this 2nd day of June, 2014.
ATTEST:
7
STATE OF IOWA
COUNTY OF DUBUQUE
CERTIFICATE
) SS
CIG -3
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 3rd day
of June, 2014.
SEAL
01021310-1\10422-146
8
ROLL CALL ORDER FOR MEETING OF 6/2/2014
Buol, Connors, Jones, Lynch, Resnick, Sutton, Braig
CITY OF DUBUQUE, IOWA
CITY COUNCIL MEETING
Historic Federal Building
350 W. 6th Street
June 2, 2014
Council meetings are video streamed live and archived at
www.citvofdubuque.orq/media and on Dubuque's CityChannel on the
Mediacom cable system at Channel 8 (analog) and 85.2 (digital).
WORK SESSION
5:00 PM
Chaplain Schmitt Island Master Plan
Chaplain Schmitt Island Master Plan Work Session -MVM Memo, Staff Memo Presentation
REGULAR SESSION
6:30 PM
PLEDGE OF ALLEGIANCE
PROCLAMATION(S)
1. Juneteenth Day (June 14, 2014)
Juneteenth Proclamation
2. LGBT Pride Month (June 2014)
LGBT Pride Month Proclamation
PRESENTATION(S)
1. Alliant Energy Excellence in Energy Efficiency Award Presentation and Renewable Rebate Check Presentation
for Water & Resource Recovery Center's Anaerobic Digestion & Microturbine Project
CONSENT ITEMS
The consent agenda items are considered to be routine and non -controversial and all consent items will be normally voted upon in a single
motion without any separate discussion on a particular item. If you would like to discuss one of the Consent Items, please go to the microphone
and be recognized by the Mayor and state the item you would like removed from the Consent Agenda for separate discussion and
consideration. -
1. Minutes and Reports Submitted
City Council proceedings of 5/19, Historic Preservation Commission of 5/17, Library Board of Trustees of 4/24, Proof
of publication for City Council proceedings of 5/5
Suggested Disposition: Receive and File
City Council Proceedings 5/19 Historic Preservation 5/17 Library Board 4/24 Proof- City Council Proceedings 5/5
2. Notice of Claims and Suits
Roger Schadler for personal injury, Gary Sieverding for property damage
Suggested Disposition: Receive and File; Refer to City Attorney
Schadler Claim Sieverdinq Claim
3. Disposition of Claims
City Attorney advising that the following claims have been referred to Public Entity Risk Services of Iowa, the agent for
the Iowa Communities Assurance Pool: Roger Schadler for personal injury and Gary Sieverding for vehicle damage.
Pg. 1
CERTIFICATE
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 the City, I have caused a
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE,
IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO
EXCEED $30,000,000 SALES TAX INCREMENT REVENUE BOND
(STORMWATER UTILITY REVENUE SUPPORTED) OF SAID CITY,
AND THE HEARING ON THE ISSUANCE THEREOF
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 the Notice was published
in all of the issues thereof published and circulated on the following date:
June 6 , 2014
WITNESS my official signature at Dubuque, Iowa, this 10th day of
June , 2014.
ate of
City Clerk, %'ty of Dubuque
Iowa
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: June 06, 2014, and for which the charge is $38.61.
Subscribed to before meNotary Public in and for Dubuque County, Iowa,
this rj day of
QJ , 20 /iL .
Notary Public in and for Dubuque County, Iowa.
MARY K. WESTERMEYER
Commission Number 154885
Fly Comm, Exp. FEB. 1, 2017
CITY OE DUBUQUE
OFFICIAL NOTICE
NOTICE OF MEETING •
IOF THE COUNCIL
THE CITY OF DUBU-
QUE,
UB -
ON T
MATIrR OF, THE PRO-
HE
POSED ISSUANCE •OF
INOT TO EXCEED
$30,000,000 SALES
TAX INCREMENT
REVENUE BONDS
I(STORMWATR UTIL-
ITY REVENUE SUP-
IPORTED), • OE SAID
CITY, AND THE HEAR-
! INA- ON ;JHE iISSU-
ANCETHEREOF
PUBLIC NOTICE is
hereby given.that the
Council of The City - of
Dubuque, Iowa, will
hold a public hearing
on . the ],6th day of
June, 2614, at 6:30
P.M., In the Historic
Federal Building, 350
•i West 6th Street, Dubu-
que, Iowa, at which
meeting the Council
proposes to take addi-
tional action for. the Is-
suance of not - to ex-
ceed $30,000,000 Sales
Tax increment. Reve-
nue Bonds (Storm -
water utility Revenue
Supported) In order to
provide funds to pay
costs of land acquisi-
tion, engineering and
construction of Phases
4 and 7 of the Bee
I Branch Watershed
Flood Mitigation Proj-
ect, consisting' of the
Lower Bee Branch
Creek Restoration and
the Upper Bee, Branch
Creek Restoration, and
the refunding and
refinancing of the out
standing General obli-
gation Capital Loan
Notes Anticipation
Protect' Note, Series
2006, dated December
28, 2006, Issued in re-
spect of such costs.
Said Bonds shall be
payable from the City's
flood project fund es-
tablished In the Master
Bpnd Resolution ap-
proved on May 19,
2014, into which all
P sales tax Increment
' revenues received
from the State of Iowa'
as part bf the award to
the City under the
, Flood Mitigation Pro-
gram shall be deposit-
ed. Ip addition, to the
Iextent necessary and
provided for ,in the Ser-
ies Resolution author -
I 'Zing ;issuance of said
Bonds,Stormwater
Utility revenues col-
lected by the City also
may be transferred to
the flood project fund
and applied to the pay-
ment of the Bonds.
The Bonds are expect-
ed tb be issued to the
Iowa Finance Authority
to evidence the City's
obligations under a
Loan and Disburse-
ment Agreegntent be-
tween the City and the
Iowa Finance Authori-
ty, to be entered into
under the State Revolt'- I
Ing 'Fund Loan Pro-
gram.
At the above meeting
the Council shall re-
ceive oral or written
objections from any
resident or property
owner of said City to ,
the abovection. After
all objections : have
been received and con- j
sidered, the Council
will ;at this meeting or
at tiny adjournment
thereof, take additional
action for the Issuance
of said Sales Tax Incre-
ment
Revenue Bonds
or will abandon the
proposal to Issue said '.
Bonds. The hearing
and appeals therefrom
shall be held in accord-
' once with and gov-
eJ ned by the provisions
of Section 38483 of the
Code of IoWa.
This rtotice is given by
I order of the Council of
Dubuque, Iowa, as pro-
vided by Sections
4113.14 and 384.83 of
the Code of Iowa.
Dated this 6th day of
June 2014.
Kevin,$.J=lrpstahl
City Clerk_ of Dubuque,
� Iowa
It 6/6