HomeMy WebLinkAboutA014 - Council Action Form dated May 25, 2021 f ^
ITEM # 8
DATE: 05-25-21
COUNCIL ACTION FORM
SUBJECT: SETTING DATE OF PUBLIC HEARING TO AUTHORIZE ADDITIONAL
USES FOR GENERAL OBLIGATION BONDS SERIES 2017 AND SERIES
2018A TO FUND EXTENSION OF UTILITIES TO THE EAST INDUSTRIAL
AREA
BACKGROUND:
In 2017 and 2018 the City issued general obligation bonds to fund capital improvements.
The public hearings for these bond issues included the planned capital uses which
consisted of street improvements, the city-wide radio system, and improvements to Fire
Station 1.
The projects funded by these bonds are now completed or under contract. Bond proceeds
remain available since actual costs have been lower than estimated. Options for use of
the remaining bond proceeds include closing to the debt service fund to make future debt
service payments or use of other essential corporate purpose qualified capital projects.
The extension of water and sanitary sewer utilities qualifies is an essential corporate
purpose use but was not included in the proceedings when the 2017 and 2018 bonds were
issued. A public hearing and Council resolution is required to authorize the additional uses
of the 2017 and 2018 bond proceeds to fund the extension of utilities. The additional uses
will have no impact on the debt service costs to the City since the bonds have already
been issued and the repayment schedule is in place. The amounts to be authorized for
additional use are $150,000 for Series 2017 and $625,000 for Series 2018A. These are
not to exceed amounts and only the actual additional amounts needed to fund projects will
be used.
ALTERNATIVES:
1. Set June 8, 2021 as the date of public hearing to consider including water and
sanitary sewer utility capital improvements as additional authorized uses for
General Obligation Bond issues Series 2017 in amount not to exceed $150,000 and
Series 2018A in amount not to exceed $625,000.
2. Direct staff to identify another authorized use for these bond proceeds and present
other alternatives for funding the extension of utilities to the East Industrial Area.
CITY MANAGER'S RECOMMENDED ACTION:
City staff has identified remaining bond proceeds from debt issuance in 2017 and 2018 as
the best alternative to provide additional available funding to complete the extension of
utilities to the East Industrial Area, only to be used depending on bid results. A public
hearing and Council resolution is required to authorize the use of the bond proceeds for
the project. Therefore, it is the recommendation of the City Manager that the City
Council adopt Alternative No. 1, as described above.
May I8, 2021
Diane Voss
City Clerk/City Hall
515 Clark Avenue
Ames, Iowa 50010
Re: 2021 Amendments to Series 2017A and 2018A General Obligation Bond Issuance
Resolutions
Our file 419370-67
Dear Diane:
In response to a request from Duane Pitcher, I have prepared a resolution that may be adopted by
your City Council on May 25 for the purpose of setting June 8 as the date for a hearing on
amendments to the Series 2017A General Obligation Bond Issuance Resolution that was approved
on August 22, 2017, and to the Series 2018A General Obligation Bond Issuance Resolution that
was adopted on August 28, 2018. The adoption of these amendments after the hearing will make
it possible for the City to spend bond proceeds remaining from the Series 2017A bond issue and
the Series 2018A bond issue for improvements to the municipal waterworks system and the
municipal sanitary sewer system.
1 ' The notice of hearing must be published not less than four days before June 8. Please scan and
email a copy of the published notice to me as soon as it appears in the newspaper.
Please return an executed copy of these materials to my office as soon as possible, and contact me
if there are questions.
\ Yours truly,
Robert E. Josten
cc by email: Duane Pitcher
Susanne Gerlach