MINUTES FOR HEARING ON A GENERAL OBLIGATION LOAN AGREEMENT AND TO AUTHORIZE PRELEVY
435926-30
Monticello, Iowa
February 15, 2016
The City Council of the City of Monticello, Iowa, met on February 15, 2016, at 6:00 p.m., at the City Council Chambers, Monticello, Iowa.
The meeting was called to order by the Mayor, and the roll being called, the following named Council Members were present and absent:
Present: Dave Goedken, Brian Wolken, Rob Paulson, Chris Lux and Tom Yeoman
Absent: Johnny Russ.
This being the time and place specified for taking action on the proposal to enter into a General Obligation Corporate Purpose and Refunding Loan Agreement in a principal amount not to exceed $3,000,000, the City Clerk announced that no written objections had been placed on file. Whereupon, the Mayor called for any written or oral objections, and there being none, the Mayor closed the public hearing.
After due consideration and discussion, Council Member Wolken introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Paulson. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted:
Ayes: Wolken, Paulson, Yeoman, Goedken and Lux
Nays: None.
Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out.
RESOLUTION NO. 16-20
Resolution authorizing a Loan Agreement and the future issuance of General Obligation Corporate Purpose and Refunding Bonds and providing for the levy of taxes to pay the same
WHEREAS, the City of Monticello (the “City”), in Jones County, State of Iowa, previously issued its $1,195,000 Sewer Revenue Refunding Bonds, Series 2008, dated May 12, 2008 (the “2008 Bonds”) a portion of which currently remains outstanding maturing on such dates and in such amounts and bearing interest at such rates as follows as follows:
Year
Principal
Amount
Interest
Rate
2016
$115,000
3.75%
2017
$120,000
3.90%
2018
$125,000
4.00%
2019
$130,000
4.05%
;and
WHEREAS, pursuant to the resolution (the “2008 Bond Resolution”) authorizing the issuance of the 2008 Bonds, the City reserved the right to call the portion of the 2008 Bonds maturing in the years 2017 through 2019 (the “Callable 2008 Bonds”) for early redemption on any date on or after June 1, 2016, subject to the provisions of the 2008 Bond Resolution; and
WHEREAS, the City also previously issued its $3,400,000 General Obligation Urban Renewal Corporate Purpose Bonds, Series 2008B, dated October 15, 2008 (the “2008B Bonds”) a portion of which currently remains outstanding maturing on such dates and in such amounts and bearing interest at such rates as follows as follows:
Year
Principal
Amount
Interest
Rate
2016
$330,000
3.80%
2017
$345,000
4.00%
2018
$360,000
4.00%
2019
$380,000
4.05%
;and
WHEREAS, pursuant to the resolution (the “2008B Bond Resolution”) authorizing the issuance of the 2008B Bonds, the City reserved the right to call the portion of the 2008B Bonds maturing in the years 2017 through 2019 (the “Callable 2008B Bonds”) for early redemption on any date on or after June 1, 2016, subject to the provisions of the 2008B Bond Resolution; and
WHEREAS, the City heretofore proposed to enter into a General Obligation Corporate Purpose and Refunding Loan Agreement (the “Loan Agreement”) and to borrow money thereunder in a principal amount not to exceed $3,000,000 pursuant to the provisions of Section 384.24A of the Code of Iowa for the purpose of paying the cost, to that extent, of (1) current refunding the Callable 2008 Bonds; (2) current refunding the Callable 2008B Bonds; and (3) constructing street, water system, sanitary sewer system and storm water drainage improvements, and has published notice of the proposed action has held a hearing thereon on February 15, 2016; and
WHEREAS, the City intends to enter into the Loan Agreement in the future and to issue General Obligation Corporate Purpose and Refunding Bonds (the “Bonds”) in evidence of its obligations thereunder and anticipates that principal and interest will come due on the Bonds before July 1, 2017; and
WHEREAS, it is now necessary to make provision for the levy of a debt service property tax in the 2016-2017 fiscal year for the payment of such anticipated principal and interest;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. 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” required by Section 384.24A 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, 2016,
sufficient to produce the net annual sum of $31,377;
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 resolution of the Council to provide for such actual and necessary tax levy amounts.
Section 3. A certified copy of this resolution shall be filed with the Jones 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 February 15, 2016.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
• • • •
On motion and vote, the meeting adjourned.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
Attestation Certificate:
STATE OF IOWA
COUNTY OF JONES SS:
CITY OF Monticello
I, the undersigned, City Clerk of the City of Monticello, do hereby certify that as such I have in my possession or have access to the complete corporate records of the City and of its City Council and officers and that I have carefully compared the transcript hereto attached with those corporate records and that the transcript hereto attached is a true, correct and complete copy of all the corporate records relating to a public hearing and additional action on the proposal to enter into a certain Loan Agreement and to issue General Obligation Corporate Purpose and Refunding Bonds in evidence of the City’s obligation under the Loan Agreement, including authorization of a debt service property tax levy, and that the transcript hereto attached contains a true, correct and complete statement of all the measures adopted and proceedings, acts and things had, done and performed up to the present time with respect thereto.
WITNESS MY HAND this ______ day of _______________, 2016.
Sally Hinrichsen, City Clerk
County filing Certificate:
STATE OF IOWA
SS:
COUNTY OF Jones
I, the undersigned, County Auditor of Jones County, in the State of Iowa, do hereby certify that on the ______ day of _________________, 2016, the City Clerk of the City of Monticello filed in my office a certified copy of a resolution of such City shown to have been adopted by the Council on February 15, 2016, entitled: “Resolution authorizing a Loan Agreement and the future issuance of General Obligation Corporate Purpose and Refunding Bonds and providing for the levy of taxes to pay the same,” and that I have duly placed the copy of the resolution on file in my records.
I further certify that the taxes provided for in that resolution will in due time, manner and season be entered on the State and County tax lists of this County for collection in the fiscal year beginning July 1, 2016, as provided in the resolution.
WITNESS MY HAND this ______ day of ________________, 2016.
County Auditor