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Home My WebLink AboutA002 - Council Action Form dated March 3, 2009 ITEM # _12 DATE 3/03/09 COUNCIL ACTION FORM SUBJECT: 2009 GENERAL OBLIGATION BOND ISSUANCE AND TAX LEVY BACKGROUND: The budget for FY 09/10 includes General Obligation (GO) Bond funded capital improvements. A public hearing is required to authorize issuance of bonds and the levy of property taxes for debt to be issued. The dollar amounts and corresponding property tax levy for the planned GO bond issue are included as part of the 2009/10 budget. Though the GO Bonds and debt service levy in the 2009/10 budget were based on a total issuance amount of $11,432,573, Council is asked to authorize $11,700,000 in bonds to allow for cost adjustments, issuance costs, and bids for bonds at a premium. Bonds will not be issued in an amount that debt service will exceed the approved debt service levy. Council authorization will be required at a later date to authorize the sale of the 2009/10 General Obligation Bonds. ALTERNATIVES: 1. Adopt a pre-levy resolution authorizing the issuance of General Obligation Corporate Purpose Bonds in an amount not to exceed $11,700,000 and the debt service property tax levy to pay principal and interest on the bonds. 2. Reject the pre-levy resolution, reduce the 2008/09 property tax levy and delay the capital projects. MANAGER'S RECOMMENDED ACTION: Issuance of these bonds is necessary in order to accomplish the City's approved capital improvements for the upcoming fiscal year. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, thereby adopting a pre-levy resolution authorizing the issuance of General Obligation Corporate Purpose Bonds in an amount not to exceed $11,700,000 and the debt service property tax levy to pay principal and interest on the bonds. Proof Of Publication In THE TRIBUNE -------------------------------------------------------------------------- -------------------------------------------------------------------------- STATE OF IOWA,STORY COUNTY,ss. Legal Notice #51561 I,Alexandra Hayne, on oath depose NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS FOR THE and say that I am editor, ISSUANCE OF NOT TO EXCEED of THE AMES TRIBUNE, a daily newspaper, printed $11,700,000 GENERAL OBLIGATION at Ames, Story County, Iowa,that the annexed CORPORATE PURPOSE BONDS printed The City Council of the City of Ames,Iowa, will meet on the 3rd day of March,2009,in the City Council Chambers, 515 Clark CITY OF AMES Avenue,in the City,at seven o'clock p.m., NOTICE OF PUBLIC HEARING FOR PRE-LEVY for the purpose of instituting proceedings and taking action for the issuance of not to exceed $11,700,J00 General Obligation Corporate Purpoe Bonds for the purpose was published in said newspaper for 1 of paying the coact,to that extent, of con- consecutive week/day(s) February 20,2009 structing improvements to streets, storm and the last of said publication was on the sewers and the municipal waterworks sys- p tem,The Bonds,when issued,will consti- 20th day of February 2009. tute general obligations of the City.At such time and place the Council shall receive oral or written objections from any resident or property owner of the City. After receiv- ing objections,the City may determine to issue the Bonds,in which case,the deci- sion will be final unless appealed to the KATIE L. District Court within fifteen (15) days Commission Number 75fi119 thereafter.By order of the City Council and My Commtssion EiVres pursuant to Section 384.25 of the Code of ow December 8, 2011 Iowa. Diane R.Voss City Clerk Publishod in the Tribune on February 20, d / 2009. ag Notary Public sworn to before me and subscribed in my presence by Alexandra Hayne this the 20th day of February 2009. FEES$13.38 NO. 51561 AMES14 02/27/09 FRI 14: 52 FAX 5152395142 CITY OF AMES 1J001 * TX REPORT TRANSMISSION OK TX/RX NO 3293 CONNECTION TEL 915152831060 CONNECTION ID DORSEY & WHITNEY ST. TIME 02/27 14: 51 USAGE T 01'12 PGS, SENT 2 RESULT OK FAX- Legal Department Phone: (515) 239-5146 ACaringPeople Fax: (515) 239-5142 Quality Programs Exceptional Service TO FAX # FROM DATE PAGES NOTES PLJk rckb aP)CM NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS FOR THE ISSUANCE OF NOT TO EXCEED $11,700,000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS The City Council of the CiZIA of Ames, Iowa, will meet on the 3rd day of March, 2009, at the (�a 1 c,yln the City, at�_o'clock_a.m., for the purpose of instituting roceedings and taking action for the issuance of not to exceed $11,700,000 General Obligation Corporate Purpose Bonds for the purpose of paying the cost, to that extent, of constructing improvements to streets, storm sewers and the municipal waterworks system. The Bonds, when issued, will constitute general obligations of the City. At such time and place the Council shall receive oral or written objections from any resident or property owner of the City. After receiving objections, the City may determine to issue the Bonds, in which case, the decision will be final unless appealed to the District Court within fifteen (15) days thereafter. By order of the City Council and pursuant to Section 384.25 of the Code of Iowa. Diane R. Voss City Clerk d am, :� eh� "Josten, Robert" To <dvoss@city.ames.ia.us>, <dpitcher@city.ames.ia.us> <Josten.Robert@dorsey.com> cc <sschainker@city.ames.ia.us>, <dmarek@city.ames.ia.us>, 02/17/2009 09:55 AM poolert@pfm.com> bcc Subject Notice of hearing on proposed General Obligation Bonds As art of the budget r p g process, Duane wants to be able to levy a debt service tax for bonds that well be issued in the next fiscal year. In order to make that levy part of the new budget, the City Council must hold a public hearing on the proposed bond issue, and, before the hearing may be held, a notice must be published giving the date, time and place of the hearing and describing the proposed bond issue. Based on my conversations with Duane and Tionna, I have prepared the notice of hearing that is attached to this email. State law does not require that formal City Council action be taken to approve this notice, but it must be published once, not less than four nor more than twenty days before the hearing on March 3. Please insert the time and place of the hearing in the notice before it is send to the newspaper, and, as soon as the notice appears in the paper, please fax a copy of the published notice to me at(515) 283-1060. Please return the certificate of publication that is also part of the attachment to this email after you receive the publisher's affidavit of publication. Please contact me if there are questions. «1st Half GO NI Short Form (Ames #38)-v1.doc>> Robert E.Josten Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DORSEY & WHITNEY LLP 801 Grand Suite 3900 Des Moines, IA 50309-2790 P: 515.283.1000 F: 515.283.1060 C: 515.556.8186 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error,please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. 'J Thank you. 1:st Half U0 NI 'ohort Forrn(Arrje:s:#32.1-v1.doc e �• "Josten, Robert" To "Duane R Pitcher"<DPitcher@city.ames.ia.us>, r , <Josten.Robe rt@dorsey.com> <poolert@pfm.com> �t cc "Diane R Voss"<DVoss@city.ames.ia.us>, "Carol B 02/11/2009 01:42 PM Collings"<CCollings@city.ames.ia.us>, "Steve Schainker" <SSchainker@city.ames.ia.us> bcc Subject RE: Upcoming Bond Issues Pre-Levy Authorization Thanks, Duane. Council needs to take action to set March 3 as date for public hearing on these Bonds. Is it possible that there may have been a motion at last night' s meeting that covers this? -----Original Message----- From: Duane R Pitcher [mailto:DPitcher@city.ames.ia.us] Sent: Wednesday, February 11, 2009 1:38 PM To: Josten, Robert; poolert@pfm.com Cc: Diane R Voss; Carol B Collings; Steve Schainker Subject: Upcoming Bond Issues Pre-Levy Authorization Bob and Tionna, City Council approved out budget and CIP including the cE improvement plan. Debt planned for FY 09/10 is as folloti, 2009/2010 CIP G.O. ISSUE I I Li --------------------------------+-----------+------------ Raw Well Water Loop Line $ IAbated By 400, OOOIWater Utilityl --------------------------------+-----------+-------------+------------ SW Ames Stormwater Management I 475, 0001 I --------------------------------+-----------+-------------+------------ Arterial Street Pavement I I I Improvements 1 468, 0001 --------------------------------+-----------+-------------+------------ Collector Street Pavement I I I Improvements 1 1, 000, 0001 1 ---------------------------+-----------+-------------+------------ CyRide Route Pavement I I Improvements 1 800, 0001 1 --------------------------------+-----------+-------------+------------ Concrete Pavement Improvements I I I 1 1, 625, 0001 1 --------------------------------+-----------+-------------+---- --- Asphalt Pavement Improvement I I I Program 1 500, 0001 1 --------------------------------+-----------+-------------+------------ Downtown Pavement Improvements I I I 1 500, 0001 1 --------------------------------+-----------+-------------+------------ Planned TIF I I I --------------------------------+-----------+-------------+------------ South Bell TIF I lAbated By TIF1 I 1, 152, 000IRevenue I --------------------------------+-----------+-------------+------------ Carried Forward From I I 2008/2009 CIP I --------------------------------+-----------+-------------+------------ Concrete Pavement Improvements I 1 1,225, 0001 1 --------------------------------+-----------+-------------+------------ Asphalt Pavement Improvement I I I Program 1 350, 0001 1 --------------------------------+-----------+-------------+------------ Collector Street Pavement I I I Improvements 1 900, 0001 I --------------------------------+-----------+-------------+------------ CyRide Route Pavement I I Improvements 1 900, 0001 1 --------------------------------+-----------+-------------+------------ Arterial Street Pavement I I I Improvements 1 437, 5731 1 --------------------------------+-----------+-------------+------------ Downtown Pavement Improvements I I I 1 700, 000 1 1 --------------------------------+-----------+-------------+------------ Total Debt Issue I 1 1 1 $11, 432, 5731 1 1 1 1 Total of debt service included in the budget for the FY 09/10 issue is $1, 218, 165 with $165, 368 abated by other sources. Our public hearing and budget certification is March 3. Similar to last year we would like to pass our pre-levy resolution at the same time. We would like to plan this issue for early in FY 09/10 (Aug/Sept) as in other years we will review and size based on project estimates and expected work plan. For future issues in addition to our regular G.O. issues, we are planning Water Revenue Bonds in FY 10/11 and likely in following years. We are just beginning a study of water plant to determine options for rehabilitation or a possible new plant. For electric we are planning a revenue bond issue in FY 11/12 and also likely in later years as we begin plant rehabilitation. Please contact me if you need any additional information. Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 Duane R Pitcher/COA To josten.robert@dorsey.com, poolert@pfm.com 44 02/11/2009 01:37 PM cc Diane R Voss/COA@COA, Carol B Collings/COA@COA, i1 = Steve Schainker/COA@COA bcc Subject Upcoming Bond Issues Pre-Levy Authorization Bob and Tionna, City Council approved out budget and CIP including the capital improvement plan. Debt planned for FY 09/10 is as follows: 2009/2010 CIP G.O. ISSUE Raw Well Water Loop Line $ 400,000 Abated By Water Utility SW Ames Stormwater Management 475,000 Arterial Street Pavement Improvements 468,000 Collector Street Pavement Improvements 1,000,000 CyRide Route Pavement Improvements 800,000 Concrete Pavement Improvements 1,625,000 Asphalt Pavement Improvement Program 500,000 Downtown Pavement Improvements 500,000 Planned TIF South Bell TIF 1,152,000 Abated By TIF Revenue Carried Forward From 200812009 C/P Concrete Pavement Improvements 1,225,000 Asphalt Pavement Improvement Program 350,000 Collector Street Pavement Improvements 900,000 CyRide Route Pavement Improvements 900,000 Arterial Street Pavement Improvements 437,573 Downtown Pavement Improvements 700,000 Total Debt Issue $11,432,573 Total of debt service included in the budget for the FY 09/10 issue is $1,218,165 with $165,368 abated by other sources. Our public hearing and budget certification is March 3. Similar to last year we would like to pass our pre-levy resolution at the same time. We would like to plan this issue for early in FY 09/10 (Aug/Sept) as in other years we will review and size based on project estimates and expected work plan. For future issues in addition to our regular G.O. issues, we are planning Water Revenue Bonds in FY 10/11 and likely in following years. We are just beginning a study of water plant to determine options for rehabilitation or a possible new plant. For electric we are planning a revenue bond issue in FY 11/12 and also likely in later years as we begin plant rehabilitation. Please contact me if you need any additional information. Thanks, Duane Duane Pitcher, CPA, CPFO