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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