HomeMy WebLinkAbout~Master - Debt Service Tax Levy for street and City Hall improvements i Ames/41937044/Prelevy 2011
RESOLUTION NO. 11-072
Providing for a debt service tax levy for FY 2011-2012 to pay the cost of
constructing street improvements and improvements to City Hall
WHEREAS, pursuant to the provisions of Section 384.24A of the Code of Iowa, the City
Council of the City of Ames, in the County of Story, State of Iowa (the "City"), has heretofore
proposed to enter into a loan agreement (the "Essential Corporate Purpose Loan Agreement") in
a principal amount not to exceed $6,640,000, for the essential corporate purpose of paying the
cost, to that extent, of constructing street improvements, and has published notice of the
proposed action and has held a hearing thereon on February 22, 2011; and
WHEREAS, pursuant to the provisions of Section 384.24A of the Code of Iowa, the City
has also proposed to enter into a loan agreement (the "General Corporate Purpose Loan
Agreement") in a principal amount not to exceed $310,000 for the general corporate purpose of
making improvements to City Hall, and in lieu of calling an election upon such proposal, has
published notice of the proposed action and has held a hearing thereon, and no petition was filed
with the City asking that the question of entering into the General Corporate Purpose Loan
Agreement be submitted to the registered voters of the City; and
WHEREAS, pursuant to Section 384.28 of the Code of Iowa, the City Council has
previously combined the Essential Corporate Purpose Loan Agreement and the General
Corporate Purpose Loan Agreement into a single loan agreement(the "Loan Agreement"); and
WHEREAS, the City intends to enter into the Loan Agreement and to issue General
Obligation Corporate Purpose Bonds (the "Bonds") in the future, and anticipates that principal
and interest will come due on the Bonds before July 1, 2012, and it is now necessary to make
provision for the levy of a debt service property tax in the 2011-2012 fiscal year for the payment
of such principal and interest;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Ames, Iowa, as
follows:
Section 1. 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 levied on all the taxable property in the City a direct tax sufficient to produce the net sum
of$693,377, for collection in the fiscal year beginning July 1, 2011.
Section 2. A certified copy of this resolution shall be filed with the County Auditor
of Story County, and said 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
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.
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-44/Prelevy 2011
Section 3. All resolutions or parts thereof in conflict herewith are hereby repealed to
the extent of such conflict.
Passed and approved March 1, 2011.
Mayor
Atte
City Clerk
- On motion and vote, the meeting adjourned.
Mayor
Attest:
C�
City Clerk
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DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA