HomeMy WebLinkAbout~Master - 2018A G.O. Corporate Purpose Loan Agreements in an amount not to exceed $8,525,000 Ames419370-6'201SX-Hrg&Prelevy
RESOLUTION NO. 18-121
Resolution authorizing a Loan Agreement and providing for the levy of taxes
WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa, has
heretofore proposed to enter into a General Obligation Essential Corporate Purpose Loan
Agreement (the "Essential Purpose Loan Agreement") in a principal amount not to exceed
$8,375,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose
of paying the cost, to that extent, of constructing improvements to streets and acquisition of
emergency services communication equipment, and has published notice of the proposed action
and has held a hearing thereon; and
WHEREAS, the City also has proposed to enter into a General Obligation Fire Station
Loan Agreement (the "Fire Station Loan Agreement") in a principal amount not to exceed
$150,000, for the general corporate purpose of making improvements at the City's Fire Station
#1, and has published notice of the proposed action and has held a hearing thereon, and no
petition has been filed asking that the question of entering into the Fire Station Loan Agreement
be submitted to the registered voters of the City; and
WHEREAS,the Essential Purpose Loan Agreement and the Fire Station Loan Agreement
will be combined into one loan agreement (the "Loan Agreement"); and
' WHEREAS, the City intends to enter into 'the Loan Agreement and to issue General
Obligation Corporate Purpose Bonds in an amount not to exceed$8,525,000 (the `Bonds") in the
future, and anticipates that principal and interest will come due on the Bonds before June 30,
2019, and it is now necessary to make provision for the levy of a debt service property tax to be
collected in the fiscal year that will begin July 1, 2018 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. The Council hereby expresses its intention to enter into the Loan
Agreement and to issue the Bonds at such time as funds are needed, and,the Council hereby
declares that this resolution constitutes the additional action required by Chapter 384 of the Code
of Iowa.
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, there is hereby ordered levied on
all the taxable property in the City a direct annual tax for collection in the fiscal year beginning
July 1, 2018, sufficient to produce the sum of$802,390.
Section 3. 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
DORSEY 4-, WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames419370-6112018k Irg&Prekevy
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.
Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to
the extent of such conflict.
Passed and approved March 6, 2018.
Mayor
Attest:
City Clerk
On motion and vote,the meeting adjourned.
Mayor
Attest:
I ITtt r
City Clerk
_Q_
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