HomeMy WebLinkAboutA013 - Resolution No. 23-283 adopted May 9, 2023 Ames/419370-70/2nd 'G Hrg&Combine Water Rev.
RESOLUTION NO. 23-283
Resolution taking additional action on proposal to enter into a Water Revenue
Loan and Disbursement Agreement and combining certain Loan Agreements
WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa, did
heretofore establish a Municipal Waterworks Utility System (the "Utility") in and for the City
which has continuously supplied water service in and to the City and its inhabitants since its
establishment; and
WHEREAS, the management and control of the Utility are vested in the City Council
(the "Council") and no board of trustees exists for this purpose; and
WHEREAS, pursuant to a prior resolution of the Council, the City has heretofore issued
its $76,325,000 Taxable Water Revenue Bond, SRF Series 2015, dated January 30, 2015 (the
"Series 2015 Bond"), a portion of which remains outstanding; and
WHEREAS, pursuant to a prior resolution of the Council, the City has heretofore issued
its $3,500,000 Water Revenue Bond, SRF Series 2022, dated August 26, 2022 (the "Series 2022
Bond"), a portion of which remains outstanding; and
WHEREAS, pursuant to the resolutions (the "Outstanding Bond Resolutions")
authorizing the issuance of the Series 2015 Bond and the Series 2022 Bond (together, the
"Outstanding Bonds"), the City reserved the right to issue additional obligations payable from
the net revenues of the Utility and ranking on a parity with the Outstanding Bonds under the
terms and conditions set forth in the Outstanding Bond Resolutions; and
WHEREAS, the City has heretofore proposed to enter into a Water Revenue Loan and
Disbursement Agreement (the "Original Agreement") and to borrow money thereunder in a
principal amount not to exceed $8,500,000, pursuant to the provisions of Section 384.24A of the
Code of Iowa, for the purpose of paying the cost, to that extent, of planning, designing and
constructing improvements and extensions to the Utility (the "Project'), and has published notice
of the proposed action and has held a hearing thereon on November 22, 2022; and
WHEREAS, to pay additional costs of the Project, the City has also proposed to enter
into an additional Water Revenue Loan and Disbursement Agreement (the "Additional
Agreement') and to borrow money thereunder in a principal amount not to exceed $4,000,000,
pursuant to the provisions of Section 384.24A of the Code of Iowa, and has published notice of
the proposed action and has held a hearing thereon on May 9, 2023; and
WHEREAS, pursuant to the provisions of Section 384.28 of the Code of Iowa, the City
intends to combine its authority under the Original Loan Agreement and the Additional Loan
Agreement and to enter into a single loan agreement (the "Loan Agreement');
NOW, THEREFORE, Be It Resolved by the City Council of the City of Ames, Iowa, as
follows:
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DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-70/2nd%Hrg&Combine W rater Rev.
Section 1. The Original Loan Agreement and the Additional Loan Agreement are
hereby combined into the Loan Agreement. The City Council hereby determines to enter into
the Loan Agreement in the future and orders that Water Revenue Bonds be issued at such time in
evidence thereof. The City Council further declares that this resolution constitutes the
"additional action" required by Section 384.24A of the Code of Iowa.
Section 2. All resolutions or parts thereof in conflict herewith are hereby repealed, to
the extent of such conflict.
Section 3. This resolution shall be in full force and effect immediately upon its
adoption and approval, as provided by law.
Passed and approved May 9, 2023.
Mayor
i
i
Attest:
City Cle•k
On motion and vote, the meeting adjourned.
Mayor
Attest:
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City Cl -k
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DORSEY &WHITNEY LLP, ATTORNEYS,DES MOINES,IOWA