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HomeMy WebLinkAboutA005 - Resolution No. 08-071 adopted February 26, 2008 Ames/419370-36/2od%:Hrg-Prelevy ti RESOLUTION NO. 08-071 Authorizing the issuance of General Obligation Corporate Purpose Bonds and providing for the levy of taxes to pay debt service on those Bonds and on General Obligation Aquatic Center Bonds WHEREAS, pursuant to notice of the proposed action of the City Council of Ames, Iowa (the "City") to institute proceedings for the issuance of$6,892,573 General Obligation Corporate Purpose Bonds (the "Corporate Purpose Bonds") for the purpose of paying the cost, to that extent, of street and water improvements, heretofore given in strict compliance with the provisions of Chapter 384 of the Code of Iowa and hearing held thereon, the Council may now take additional action to issue the Bonds; and WHEREAS, pursuant to referendum, the City has authority to issue $5,278,000 General Obligation Aquatic Center Bonds (the "Aquatic Center Bonds") (the General Corporate Purpose Bonds and the Aquatic Center Bonds are herein referred to as the"Bonds"); and WHEREAS, it is deemed necessary and advisable to provide for the levy and collection of taxes to pay the principal of and interest on the Bonds for the fiscal year beginning July 1, 2008, prior to the sale of the Bonds; NOW, THEREFORE, It Is Resolved by the City Council of the City of Ames, Iowa, as follows: Section 1. The Corporate Purpose Bonds are hereby authorized to be issued in the future . Section 2. For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Bonds as the same become due, there is hereby ordered levied on all the taxable property in the City in each of the years while the Bonds are outstanding, a tax sufficient for that purpose, and in furtherance of this provision, but not in limitation thereof, there is hereby levied on all the taxable property in the City the following direct annual tax for collection in the following fiscal year: For collection in the fiscal year beginning July 1, 2008, sufficient to produce the net annual sum of$1,199,266. provided, however, that at the time the Bonds are sold, the actual tax levy amounts required to pay the principal of and interest on the Bonds in each subsequent year shall be determined based upon the interest rate or rates at which the Bonds are sold, and this resolution shall be amended by the Council to provide for such actual and necessary tax levy amounts. Section 3. A certified copy of this resolution shall be filed with the County Auditor of Story County, and the Auditor is hereby instructed to enter for collection and assess the tax hereby authorized. When annually entering such taxes for collection, the County Auditor shall include the same as a part of the tax levy for Debt Service Fund purposes of the City and when collected, the proceeds of the taxes shall be converted into the Debt Service Fund of the City and -2- Dorsey& Whitney LLP, Attorneys, Des Moines, Iowa Ames/4 1 93 70-3 6/2°d'/2 Hrg-Prelevy set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Bonds hereby authorized and for no other purpose whatsoever. Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved February 26, 2008. Mayor Attest: Q�se JM& City Clerk -3- Dorsey & Whitney LLP, Attorneys, Des Moines, Iowa