HomeMy WebLinkAbout~Master - Sewer Revenue Loan and Disbursement Agreement Ames/4193 70-63/1"'/2-Sewer Rev
RESOLUTION NO. 18-517
Resolution to fix a date for a public hearing on proposal to enter into a Sewer
Revenue Loan and Disbursement Agreement and to borrow money thereunder in
a principal amount not to exceed $5,700,000
WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa, did
heretofore establish a Municipal Sanitary Sewer System (the "Utility") in and for the City which
has continuously supplied sanitary sewer 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 $3,121,000 Sewer Revenue Bond, SRF Series 2012, dated November 16, 2012 (the "Series
2012 Bond"), a portion of which remains outstanding; and
WHEREAS, pursuant to a prior resolution of the Council, the City has heretofore issued
its $797,000 Taxable Sewer Revenue Bond, SRF Series 2016, dated September 30, 2016 (the
"Series 2016 Bond"), a portion of which remains outstanding; and
WHEREAS, pursuant to a prior resolution of the Council, the City has heretofore issued
its $1,001,000 Taxable Sewer Revenue Bond, SRF Series 2018, dated February 16, 2018 (the
"Series 2018 Bond"), a portion of which remains outstanding; and
WHEREAS, pursuant to the resolutions (the "Outstanding Bond Resolutions")
authorizing the issuance of the Series 2012 Bond, the Series 2016 Bond and the Series 2018
Bond (collectively, 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 now proposes to enter into a Sewer Revenue Loan and
Disbursement Agreement (the "Agreement") and to borrow money thereunder in a principal
amount not to exceed $5,700,000, 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 it is necessary to fix a date of
meeting of the Council at which it is proposed to take action to enter into the Agreement and to
give notice thereof as required by such law;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Ames, Iowa, as
follows:
Section 1. This City Council shall meet on September 25, 2018, at the City Hall
Council Chambers, in the City, at 6:00 o'clock p.m., at which time and place a hearing will be
held and proceedings will be instituted and action taken to enter into the Agreement.
-2-
DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-63/Pt'/I-Sewer Rev
Section 2. The City Clerk is hereby directed to give notice of the proposed action on
the Agreement setting forth the amount and purpose thereof, the time when and place where the
said meeting will be held, by publication at least once, not less than four (4) and not more than
twenty (20) days before the meeting, in a legal newspaper which has a general circulation in the
City. The notice shall be in substantially the following form:
DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/4193 70-63/1"'/2-Sewer Rev
NOTICE OF PROPOSED ACTION TO INSTITUTE
PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT
IN A PRINCIPAL AMOUNT NOT TO EXCEED $5,700,000
(SEWER REVENUE)
The City Council of the City of Ames, Iowa, will meet on September 25, 2018, at the
City Hall Council Chambers, at 6:00 o'clock p.m., for the purpose of instituting proceedings and
taking action to enter into a loan and disbursement agreement (the "Agreement") and to borrow
money thereunder in a principal amount not to exceed $5,700,000 for the purpose of paying the
cost, to that extent, of planning, designing and constructing improvements and extensions to the
City's Municipal Sanitary Sewer System.
The Agreement will not constitute a general obligation of the City, nor will it be payable
in any manner by taxation but, together with the City's outstanding Sewer Revenue Bond, SRF
Series 2012, dated November 16, 2012; Taxable Sewer Revenue Bond, SRF Series 2016, dated
September 30, 2016; Taxable Sewer Revenue Bond, SRF Series 2018, dated February 16, 2018;
and any additional obligations of the City as may be hereafter issued and outstanding from time
to time ranking on a parity therewith, will be payable solely and only from the Net Revenues of
the Municipal Sanitary Sewer System of the City.
At that time and place, oral or written objections may be filed or made to the proposal to
enter into the Agreement. After receiving objections, the City may determine to enter into the
Agreement, 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 of the City of Ames, Iowa.
Diane Voss
City Clerk
-4-
DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-63/1''/2-Sewer Rev
Section 3. All resolutions or parts of resolutions in conflict herewith are hereby
repealed to the extent of such conflict.
Section 4. This resolution shall be in full force and effect immediately upon its
adoption and approval, as provided by law.
Passed and approved September 11, 2018.
Mayor
Attest:
n
I � /
City Clerk
On motion and vote, the meeting adjourned.
Mayor
Attest:
City Clerk
-5-
DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA