HomeMy WebLinkAboutA038 - Hearing on sale and issuance of General Obligation Corporate Purpose Bonds, Series 2025A and providing for the Levy of Taxes to pay the sameITEM #:42
DATE:09-23-25
DEPT:FIN
SUBJECT:RESOLUTION AUTHORIZING AND APPROVING A LOAN AGREEMENT,
PROVIDING FOR THE SALE AND ISSUANCE OF GENERAL OBLIGATION
CORPORATE PURPOSE BONDS, SERIES 2025A, AND PROVIDING FOR
THE LEVY OF TAXES TO PAY THE SAME
COUNCIL ACTION FORM
BACKGROUND:
The FY 2025/26 Budget includes General Obligation (G.O.) Bond–funded capital improvement
projects totaling $13,610,195. As part of the budget process, the City Council held the required
public hearing on March 25, 2025, which authorized the proceedings under Iowa Code Section
384.24A.
To finance these improvements, the City proposes to enter into two loan agreements:
The first is an Essential Purpose Loan Agreement in a principal amount not to exceed
$13,500,000, to fund street and related public infrastructure, lighting, signage, and
signalization improvements, trail improvements at Ada Hayden Heritage Park, and
improvements at the municipal airport.
The second is a General Purpose Loan Agreement in a principal amount not to exceed
$235,000, to fund the fire station alerting system improvements.
The Capital Improvements Plan’s FY 2025/26 G.O. Bond issue includes the following:
Fire Station Alerting System (General Corporate
Purpose)$ 211,905
Asphalt Street Pavement Improvements 4,000,000
Concrete Pavement Improvements 3,800,000
Seal Coat Street Pavement Improvements 1,000,000
Collector Street Pavement Improvements 500,000
Alley Pavement Improvements 400,000
Downtown Street Pavement Improvements 250,000
Traffic System Capacity Improvements 1,520,000
Intelligent Transportation System 367,540
Airport Airside Improvements 531,750
Airport Facility Improvements 329,000
Ada Hayden Heritage Park 700,000
Total Project Costs $13,610,195
Issuance Costs/Rounding 124,805
Total Issuance Amount $13,735,000
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On the morning of September 23, 2025, the City will accept bids for the bonds per the terms of
our offering statement. The bids will be evaluated by the City's financial advisor, the City’s
Bond Counsel, and by City staff to recommend an award to the bidder with the lowest cost. A
report of bids will be provided to Council at the September 23, 2025 meeting. The City Council
will then be asked to adopt a resolution accepting bids and authorizing the award of the sale of
bonds to the chosen bidder.
ALTERNATIVES:
1. Adopt a resolution accepting bids and authorizing the sale and issuance of General
Obligation Bonds in an amount not to exceed $13,735,000.
2. Reject the bond sale resolution and delay the capital projects.
CITY MANAGER'S RECOMMENDED ACTION:
Issuance of these bonds is necessary in order to accomplish the City’s approved
capital improvements during this fiscal year. Therefore, it is the recommendation of the
City Manager that the City Council adopt Alternative No. 1, as described above.
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