HomeMy WebLinkAbout~Master - Taking Additional Action on Proposal to Enter General Obligation Loan Agreements, Combining Loan Agreements, and Providing for Levy of Taxes to pay for General Obligation Corporate Purpose Bonds, Series 2023 Ames/419370-73/Hrg(part rr),Combine,Auth Prelevy GO CP LA
RESOLUTION NO. 216
Resolution taking additional action on proposal to enter into a General Obligation
Loan Agreements, combining Loan Agreements, and providing for the levy of
taxes to pay General Obligation Corporate Purpose Bonds, Series 2023
WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa, pursuant to
the provisions of Section 384.24A of the Code of Iowa, heretofore proposed to enter into a loan
agreement (the "Essential Purpose Loan Agreement") and to borrow money thereunder in a
principal amount not to exceed $11,750,000 for the purpose of paying the costs,to that extent, of
(a) constructing street, alley, stormwater drainage, sanitary sewer, water system and sidewalk
improvements; (b) acquiring and installing street department equipment, traffic control devices
and systems, street lighting, signage and signalization assets, and has published notice of the
proposed action and has held a hearing thereon on April 11,2023; and
WHEREAS, the City also proposed to enter into a loan agreement (the"General Purpose
j Loan Agreement") and to borrow money thereunder in a principal amount not to exceed
$550,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose of
paying the costs, to that extent, of renovating and equipping Municipal Park Maintenance
Facilities, and in lieu of calling an election upon such proposal, has published notice of the
proposed action and has held a hearing thereon, and as of April 11, 2023, no petition had been
filed with the City asking that the question of entering into the General Purpose Loan Agreement
be submitted to the registered voters of the City; and
WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa also proposed
to enter into a General Obligation Urban Renewal Loan Agreement (the "Urban Renewal Loan
Agreement" and together with the Essential Purpose Loan Agreement and the General Purpose
Loan Agreement, the "Loan Agreements"), pursuant to the provisions of Sections 384.24A and
I 384.24.3(q) of the Code of Iowa, and to borrow money thereunder in a principal amount not to
exceed $21,200,000 for the purpose of paying the costs, to that extent, undertaking a project in
the Downtown Reinvestment District Urbana Renewal Area consisting of constructing, furnishing
i and equipping an indoor aquatic center and associated grounds and facilities as further detailed in
the urban renewal plan approved by the City Cotuncil on August 24, 2021, and in lieu of calling
i an election upon such proposal, has published notice of the proposed action, including notice of
the right to petition for an election, and has held a hearing thereon, and as of September 14,
2021, no petition had been filed with the City asking that the question of entering into the Urban
Renewal Loan Agreement be submitted to the registered voters of the City; and
WHEREAS, the City has used a portion of its authority to borrow under the Urban
Renewal Loan Agreement for the prior issuance of bonds, but has reserved the right to use the
remainder of its authority thereunder for additional debt issuances; and
WHEREAS, pursuant to the provisions of Section 384.28 of the Code of Iowa, the City
j intends to combine its authority under the Loan Agreements and to enter into a single loan
agreement(the"Loan Agreement"); and
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j DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA
Ames/419370-73/Hrg(part rr),Combine,Auth Prelevy GO CP LA
WHEREAS, the City intends to enter into the Loan Agreement in the fixture and to issue
General Obligation Corporate Purpose Bonds, Series 2023 (the "Bonds") in evidence of its
obligations thereunder and anticipates that principal and interest will come due on the Bonds
before July 1, 2024; and
WHEREAS, it is now necessary to make provision for the levy of a debt service property
tax in the 2023-2024 fiscal year for the payment of such anticipated principal and interest;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Ames, Iowa, as
follows:
Section 1. The Loan Agreements are hereby combined into the Loan Agreement.
The City Council hereby determines to enter into the Loan Agreement in the future and orders
that the Bonds be issued at such time, in evidence thereof. The City Council further declares that
this resolution constitutes the "additional action" contemplated under Section 384.25 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 as the same become due, there is
hereby ordered levied on all the taxable property in the City the following direct annual tax:
For collection in the fiscal year beginning July 1, 2023,
sufficient to produce the net annual sum of$1,469,313.
provided, however, that at the time the Bonds are issued, the actual tax levy amounts required to
pay the principal of and interest on the Bonds in each year shall be determined based upon the
interest rate or rates at which the Bonds are issued, and this resolution shall be supplemented by
a resolution of the City Council to provide for such actual and necessary tax levy amounts.
Section 3. A certified copy of this resolution shall be filed with the Story County
Auditor 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.
Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to
the extent of such conflict.
Section 5. This resolution shall be in full force and effect immediately upon its
adoption and approval, as provided by law.
Passed and approved April 11, 2023.
Mayor
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DORSEY &WHITNEY LLP, ATTORNEYS,DES MOINES, IOWA
Ames/41.9370-73 I Hrg(part rr),Combine,Adi Prelevy GO CP LA
Attest:
City Clerk I
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DORSEY & WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA