General Obligation Bonds Series 2016C - General Corporate Purpose $505K Copyright 2014
City of Dubuque Public Hearings # 4.
ITEM TITLE: General Obligation Bonds Series 2016ABC - General
Corporate Purpose
SUMMARY: Proof of publication on notice of public hearing to consider
approval of the suggested proceedings for the public
hearing on the issuance on the issuance of not to exceed
$505,000 in Tax-Exempt General Obligation Bonds Series
2016ABC and the City Manager recommending approval.
RESOLUTION Instituting the proceedings to take additional
action for the issuance of not to exceed $505,000 General
Obligation Bonds
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Bond Counsel Letter Supporting Documentation
Proof of Publication Supporting Documentation
City Debt Handout March 2015 Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
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
$505,000 Tax-Exempt General Obligation Bonds, Series 2016C
DATE: December 14, 2015
Budget Director Jennifer Larson is recommending City Council approval of the
suggested proceedings for the public hearing on the issuance on the issuance of not to
exceed $505,000 in Tax-Exempt General Obligation Bonds, the proceeds of which will
be used to pay costs of roof improvements to the Historic Federal Building and tuck-
pointing at the Ham House.
Of the bond amount:
• $264,000 is intended to provide funds to pay costs of ten year coating on the
Historic Federal Building roof with repayment from local option sales tax.
• $197,370 is intended to provide funds to pay costs of Ham House tuck-pointing
with repayment from local option sales tax.
Although the City is selling General Obligation Bonds to support the projects,
repayments of the debt will be 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 at 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 $505,000 General Obligation Bonds, Series 2015C."
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
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$505,000 Tax-Exempt General Obligation Bonds, Series 2016C
DATE: December 14, 2015
INTRODUCTION
The purpose of this memorandum is to provide the suggested proceedings for the public
hearing on the issuance of Tax-Exempt 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
$505,000 General Obligation Bonds, Series 2015C." The proceeds of which will be used
for general corporate purposes of the City for projects in the City budget previously
approved by the City Council. A letter from attorney Mark Cory detailing information on
the bond hearing is enclosed.
DISCUSSION
Of the bond amount:
• $264,000 is intended to provide funds to pay costs of ten year coating on the
Historic Federal Building roof with repayment from local option sales tax.
• $197,370 is intended to provide funds to pay costs of Ham House tuck-pointing
with repayment from local option sales tax.
• $8,233 is intended to provide funds for bond issuance costs and
• $35,397 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 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 at 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 $505,000 General Obligation Bonds, Series 2015C."
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
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of the City of Dubuque, State of Iowa.
Date of Meeting: December 21, 2015.
Time of Meeting: 6 : 3 0 o'clock P .M.
Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque, Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body
will meet at the date, time and place above set out. The tentative agenda for the meeting is as
follows:
Not to Exceed $505,000 General Obligation Bonds.
• Public hearing on the issuance.
• Resolution instituting proceedings to take additional action.
Such additional matters as are set forth on the additional 4 page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa,
and the local rules of the governmental body.
City Cler ity of Du - q", -State of Iowa
December 21, 2015
The City Council of the City of Dubuque, State of Iowa, met in regular session, in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 PM., 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:
The Mayor announced that this was the time and place for the public hearing and meeting
on the matter of the issuance of not to exceed $505,000 General Obligation Bonds, in order to
provide funds to pay the costs of improvement and equipping of the Federal Building and Ham
House, for general corporate purposes, 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 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 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.
The Mayor then asked the Clerk whether any written objections had been filed by any
resident or property owner oftr. City to the issuance of the Bonds, The Clerk advised the
Mayor and the Council that written objection • had been filed. The Mayor then called for
oral objections to the issuanc` of the Bonds and 1/ were made. Whereupon, the Mayor
declared the time for receiving oral and written o r ections to be closed.
(Attach here a summary of objections received or made, if any)
Whereupon, the Mayor declared the hearing on the issuance of the Bonds to be closed.
-2
The Council then considered the proposed action and the extent of objections thereto.
Whereupon, Council Member Braig introduced and delivered to the
Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING
PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO
EXCEED $505,000 GENERAL OBLIGATION BONDS", and moved:
xx
that the Resolution be adopted.
to ADJOURN and defer action on the Resolution and the proposal to institute
proceedings for the issuance of bonds to the meeting to be held at
.M. on the day of , 2015, at this place.
Council Member
the vote was,
Connors
seconded the motion. The roll was called and
AYES: Sutton, Jones, Buol, Braig
Connors, Lynch
NAYS: Resnick
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 439-15
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO
EXCEED $505,000 GENERAL OBLIGATION BONDS
WHEREAS, pursuant to notice published as required by law, the City Council has held a
public meeting and hearing upon the proposalto institute proceedings for the issuance of not to
exceed $505,000 General Obligation Bonds, for the general corporate purposes, in order to
provide funds to pay the costs of improvement and equipping of the Federal Building and Ham
House, and has considered the extent of objections received from residents or property owners as
to the proposed issuance of Bonds; 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.
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 $505,000
General Obligation Bonds, for the foregoing general corporate purposes.
Section 2. This Resolution shall serve as a declaration of official intent under Treasury
Regulation 1.150-2 and shall be maintained on file as a public record of such intent. It is
reasonably expected that the general fund moneys may be advanced from time to time for capital
expenditures which are to be paid from the proceeds of the above Bonds. The amounts so
advanced shall be reimbursed from the proceeds of the Bonds not later than eighteen months
after the initial payment of the capital expenditures or eighteen months after the property is
placed in service. Suchadvancements shall not exceed the amount authorized in this Resolution
unless the same are for preliminary expenditures or unless another declaration of intention is
adopted.
PASSED AND APPROVED this 21st day of December, 2015.
ATTEST:
Mayor
4
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 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 public hearing 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 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 Council hereto affixed this 22nd day of
December , 2015.
(SEAL)
01191410-1110422-165
City Clerk, City of Dubuq e',/State of Iowa.
Ahlers&Cooney, P.C.
AHLERS N E Y Attorneys at Law
100 Court Avenue, Suite 600
A T'1- r? R N E Y S Des Moines, Iowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
R. Mark Cory
515.246.0378
rcory@ahlerslaw.com
December 9, 2015
Via Email and UPS Overnight Delivery
Ms. Jenny Larson
Budget Director
50 W. 13th Street
Dubuque, Iowa 52001
Re: City of Dubuque, Iowa
-Not to Exceed $15,555,000 General Obligation Bonds (ECP)
-Not to Exceed $505,000 General Obligation Bonds (GCP)
Dear Jenny:
We have prepared and enclose herewith suggested proceedings to be acted upon by the
Council on the date fixed for the hearings on the authorization of the issuance of the above
mentioned bonds, pursuant to the provisions of Code Sections 384.25 and 384.26. Certificates to
attest the proceedings are also enclosed.
As to the essential corporate purpose of the bond issue, the proceedings are prepared to
show as a first step the receipt of any oral or written objections from any resident or property
owner to the proposed action of the Council to issue the bonds. A summary of objections
received or made, if any, should be attached to the proceedings. After all objections have been
received and considered if the Council decides not to abandon the proposal to issue the bonds, a
form of resolution follows that should be introduced and adopted.
Action Must be Taken at Hearing.
The Council is required by statute to adopt the resolution instituting proceedings to issue
the bonds at the hearing or an adjournment thereof. If necessary to adjourn, the minutes are
written to accommodate that action.
In the event the Council decides to abandon the proposal, then the form of resolution
included in the proceedings should not be adopted. We would suggest that, in this event, a
motion merely be adopted to the effect that such 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
WISHARD&BAILY-1888;GUERNSEY&BAIL.Y-1893;BAILY&STIPP-1901;STIPP,PERRY,BANNISTER&STARZINOER-1914;BANNISTER,CARPENTER.
AHLERS&COONEY-1950;AHLERS,COONEY,DORWEILER,ALLBEE,HAYNIE&SMITH-1974;AHLERS,COONEY.DORWEILER,HAYNIE.SMITH&ALLBEE,P.C.-1990
December 9, 2015
Page 2
taken, but that the additional action is final and conclusive unless the court finds that the Council
exceeded its authority.
In the event an appeal is filed by any resident or property owner,please see that we are
notified immediately; and, as soon as available, a copy of the notice of appeal should be
furnished our office for review.
As to the general corporate purpose portion of the bond issue, the proceedings have been
prepared on the basis that no petition will be filed with you, asking that the question of issuing
the Bonds be submitted to the qualified electors of the City. You will note that these proceedings
refer to the fact that the hearing was held and that no petition had been filed.
Action Must be Taken at Hearing.
If no petition is filed,the Council should proceed to adopt the resolution instituting
proceedings to take additional action for the authorization of 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 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 the bonds, a form of resolution should be introduced and adopted, to adjourn
the matter to permit preparation of the resolution to call an election.
Please see that we are advised immediately if a petition is filed bearing signatures of a
sufficient number of eligible electors.
Also enclosed is an extra copy of each set of 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.
I
' F
Very ti"rtily yo rs,
R I Mark Cory
FOR THE FIRM
RMC:csm
Enclosures
cc: Ken TeKippe, Finance Director(via e-mail w/enc.)
Kevin Firnstahl, City Clerk (via e-mail w/enc.)
Tionna Pooler (via e-mail w/enc.) 0119',422-1\10422-165
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: December 09, 2015, and for which the charge is $27.84.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this day of 20 Bonds, for
. geheral �
corporate purposes,
bearing interest at a I
rate of not to exceed i1
nine (9%) per centum
per annum, the Bonds
to be issued to provide
funds to pay the costs
of improvement and
equipping of the.
Notary Public in and for Dubuque County, Iowa. Federal Building- and
Ham House.
At anytime before the
date of the meeting, a;
petition; asking, that
the question of issuing
such Bonds be sub-
mitted. to the legal
voters of the City,may
01 1 pion I�umorr�5463s be filed with the Clerk
of the City,.including
the drop boxes both
inside and outside of
City Hall, 13th Street
entrance during non-
business hours, in the
manner provided by
CITY OF DUBUQUE Section 362.4 of the
OFFICIAL NOTICE Code of lowa,pursuant
NOTICE OF MEETING to the provisions of '
OF THE CITY COUN ! Section 384.26 of the
CILOF THE CITY OF ! Code of Iowa.
DUBUQUE, STATE OF At the above meeting
IOWA, ON THE the Council shall
MATTER OF THE I receive oral or written
PROPOSED ISSUANCE ',.objections from.,any.
OF NOT TO EXCEED resident or :property
$505,000 GENERAL owner of the City to
OBLIGATION BONDS :the above action.After
OF THE CITY, (FOR all objections have
GENERAL CORDO- been received and
RATE PURPOSES), considered,the Council
AND THE HEARING will at the meeting or
ON ,THE ISSUANCE' at any adjournment
THEREOF I thereof,take additional
PUBLIC NOTICE is action for the issuance
hereby give'that the of the Bonds or will k
City Council of the City abandon the proposal
of Dubuque, State of to issue said Bonds.
Iowa,will hold a public This notice is given by'
hearing on the 21st day 'order of the City
of December, 2015, at Council of the City of
6:30 PM,in the Historic Dubuque, State of
Federal Building, 350 Iowa, as provided by
West 6th= Street, ,Section 384.26 of the
Dubuque, Iowa, at Code of Iowa.
which meeting the Dated this 9th day of
Council proposes to December;'2015.
take additional action Kevin S.Firnstahl
for the issuance of not "City Clerk,City of
to exceed $505,000 Dubuque,State of Iowa
General Obligation i 1t 12/9
LORI Debt DuSoBp
E qIU'
A4asterpiece on ehe Mississippi
Statutory Debt Limit Used (as of lune 30)
95%
90.49%
90% 87.49
85% 82.03%
eo% 83.87% 78.83% 79.42%
74.47%
75%
70.20%
70% 71.74%
66.04% 65.91% BEE BRANCH FLOOD MITIGATION PROJECT
65% 62.23%
60%
FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 -- - _
Total Debt (in Millions) :
$309.1 QUBUQUEINDUSTRIAL CENTER WEST
$310 $302.3
$290.1
$290 $282.0
$279.9
$270 $267.4
$271.0 $255.9 1
$265.6 1�
$250 $244.3 - `
$241.4
$230 $226.2
yrvx w�Y
d
$210 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25
r
'Debt is being issued each year, but more is being retired than issued. WATER&RESOURCE RECOVERY CENTER
Top 10 Outstanding Debt Uses (as of lune 30, 2016)
# Project Amount Outstanding Issuance Amount
1 Water& Resource Recovery Center $70,287,700 $77,333,000
2 Stormwater $69,865,626 $77,133,791
3 Parking Improvements $38,057,492 $44,611,714
4 Water Improvements $26,681,510 $34,807,242
5 TIF Rebates/Bonds to Businesses $19,266,286 $24,483,989
6 GDTIF Incentives/Improvements $18,066,669 $21,805,968
7 Sanitary Sewer Improvements $12,274,471 $14,193,270
8 DICW Expansions $11,176,274 $18,620,412
9 Roshek Building Loan Guaranty $10,000,000 $10,000,000
10 Street Improvements $6,652,790 $7,319,967
Total $282,328,818 $330,309,353
Dubuque's Rankings among
Iowa's 11 Largest Cities
Issue FY2016 Rank
Property Tax Rate per Capita Lowest
City Property Tax Rate 2nd Lowest
Water Rate 3rd Lowest
Curbside Collection Rate 5th Lowest
Sanitary Sewer Rate 4th Highest
Stormwater Rate 2nd Highest
1�v ;NE9
.t,
City of Dubuque Bee Branch Watershed Flood Mitigation Project
The Bee Branch Watershed Project is a$200 million, 12-phase, 20-year construction project to address stormwater
management issues throughout the entire Bee Branch Watershed area. The City was awarded $98.5 million from the Iowa
Flood Mitigation Board in the form of State sales tax increment financing aid over the next 20 ears. The Cit is borrowing
g g p Y Y g
$53 million in calendar years 2014 and 2015 which will be paid over fifteen years with the State sales tax increment. Phases
of the project not covered by the 2014 borrowing will be completed as sales tax increment is available in future years. The
State sales tax increment grant time period is January 1, 2014 through June 30, 2033.
Top 10 Capital Projects (1997-2020)*
# Project Description FY2016 Adopted Cost (1997-2020)
1 Streets Project (Engineering & Public Works) $120,006,524
2 Bee Branch Creek Watershed Project $ 98,376,440
3 Sanitary Sewer- Maintain & Install $81,388,070
4 Parking Ramps $76,171,243
5 Water and Resource Recovery Center $74,285,000
6 America's River Project $70,674,035
7 Southwest Arterial $40,476,841
8 Airport Terminal Project $37,518,004
9 Industrial Parks $35,683,418
10 Stormwater- Maintain & Install $33,059,715
Total $667,639,290
*These are total expenses on projects whether debt was used or not.
Rev.3/23/16