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HomeMy WebLinkAbout~Master - Date of Public Hearing for Water Revenue Loan and Disbursement Agreement Ames1419370-70/1"%-Water Rev RESOLUTION NO. 23-227 Resolution to fix a date for a public hearing on proposal to enter into a Water Revenue Loan and Disbursement Agreement and to borrow money thereunder in a principal amount not to exceed $4,000,000 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 now proposes to enter into an additional Sewer 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 it is necessary to fix a date of meeting of the City Council at which it is proposed to take action to enter into the Additional 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: -2- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-70/10%_-Water Rev Section 1. This City Council shall meet on May 9, 2023, 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 Additional Agreement. Section 2. The City Clerk is hereby directed to give notice of the proposed action on the Additional 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: -3- DORSEY & WHITNEY LLP, ATTORNEYS,DES MOINES,IOWA AmeS1419370-70/I A'/=-Water Rev NOTICE OF PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER INTO A LOAN AND DISBURSEMENT AGREEMENT IN A PRINCIPAL AMOUNT NOT TO EXCEED $4,000,000 (WATER REVENUE) The City Council of the City of Ames, Iowa, will meet on May 9, 2023, at the City C, in 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 $4,000,000, for the purpose of paying the cost, to that extent, of planning, designing and constructing improvements and extensions to the Municipal Waterworks Utility System(the"Utility") of the City(such amount being supplemental of and additional to amounts previously authorized for this project under a separate borrowing proposal). 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 Taxable Water Revenue Bond, SRF Series 2015, dated January 30, 2015; Water Revenue Bond, SRF Series 2022, dated August 26, 2022; 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 Utility. At the aforementioned 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. Renee Hall City Clerk -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-70/10 A-Water Rev Section 3. Pursuant to Section 1.150-2 of the Income Tax Regulations (the "Regulations") of the Internal Revenue Service, the City declares (a) that it intends to undertake the Project which is reasonably estimated to cost approximately $12,500,000, (b) that other than (i) expenditures to be paid or reimbursed from sources other than the issuance of bonds, notes or other obligations(the"Bonds"),or(ii) expenditures made not earlier than 60 days prior to the date of this Resolution or a previous intent resolution of the City, or(iii) expenditures amounting to the lesser of $100,000 or 5% of the proceeds of the Bonds, or (iv) expenditures constituting preliminary expenditures as defined in Section 1.150-2(f)(2) of the Regulations, no expenditures for the Project have heretofore been made by the City and no expenditures will be made by the City until after the date of this Resolution or a prior intent resolution of the City, and (c) that the City reasonably expects to reimburse the expenditures made for costs of the City out of the proceeds of the Bonds.. This declaration is a declaration of official intent adopted pursuant to Section 1.150-2 of the Regulations. Section 4. All resolutions or parts of resolutions 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 this April 25, 2023. Mayor Attest: zw- / City Cl k On motion and vote, the meeting adjourned. Mayor Attest: City C rk -5- DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA