MINUTES TO HOLD HEARING ON A GENERAL OBLIGATION LOAN AGREEMENT AND TO AUTHORIZE PRELEVY
435926-32
Monticello, Iowa
February 18, 2019
The City Council of the City of Monticello, Iowa, met on February 18, 2019, at 6:00 o’clock p.m., at the Monticello Renaissance Center, Community Media Room, in the City.
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, Brenda Hanken, 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 Loan Agreement in a principal amount not to exceed $2,700,000, 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 Goedken introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Lux. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted:
Ayes: Goedken, Lux, Paulson and Yeoman.
Nays: Hnaken.
Whereupon, the Mayor declared the resolution duly
adopted as hereinafter set out.
RESOLUTION NO. 19-19
Resolution taking additional action on proposal to enter into a General Obligation Corporate Purpose Loan Agreement and providing for the levy of taxes to pay the same
WHEREAS, the City of Monticello (the “City”), in Jones 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 “Loan Agreement”) and to borrow money thereunder in a principal amount not to exceed $2,700,000 for the purpose of paying the costs, to that extent, of constructing street, water system, sanitary sewer system, sidewalk and storm water drainage improvements and installing street lighting, signage and signalization, and pursuant to law and duly published notice of the proposed action has held a hearing thereon on February 18, 2019; and
WHEREAS, the City intends to enter into the Loan Agreement in the future and to issue General Obligation Corporate Purpose Bonds or Notes (the “Bonds”) in evidence of its obligations thereunder and anticipates that principal and interest will come due on the Bonds before July 1, 2020; and
WHEREAS, it is now necessary to make provision for the levy of a debt service property tax in the 2019-2020 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, 2019,
sufficient to produce the net annual sum of $293,432.
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 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 18, 2019.
Brian Wolken, Mayor
Attest:
Sally Hinrichsen, City Clerk
• • • •
On motion and vote, the meeting adjourned.
Brian Wolken, 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 Loan Agreement and to issue General Obligation Corporate Purpose Bonds in evidence of the City’s obligation under the Loan Agreement and the authorization of a debt service property tax levy for the payment of principal and interest thereunder 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 ___________________, 2019.
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 _________________, 2019, 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 City Council on February 18, 2019, entitled: “Resolution taking additional action on proposal to enter into a General Obligation Corporate Purpose Loan Agreement 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, 2019, as provided in the resolution.
WITNESS MY HAND this ______ day of ____________________, 2019.
County Auditor
February 11, 2019
Via Email
Sally Hinrichsen
City Clerk /City Hall
Monticello, Iowa
Re: General Obligation Corporate Purpose Loan
Agreement – Prelevy Resolution
Our File No. 435926-32
Dear Sally:
We have prepared and attach proceedings to be used at the February 18th City Council meeting covering the hearing on the Loan Agreement and providing for the adoption of the resolution taking additional action with respect to the General Obligation Corporate Purpose Bonds (the “Bonds”) and authorizing a property tax levy for the fiscal year beginning on July 1, 2019 in the amount of $293,432 for the payment of debt service on the Bonds.
After it is adopted, a certified copy of the attached resolution must be filed with the Jones County Auditor by no later than March 31, 2019. Please print an extra copy of the resolution for this purpose.
When the City is ready to enter into the Loan Agreement, we will prepare proceedings to enable the City Council to supplement this resolution to provide for the actual repayment structure, interest rate on the Bonds, and the additional tax levies and to make a supplemental filing with the County Auditor.
The proceedings attached include the following items:
1. Minutes of the February 18th City Council meeting covering the hearing and additional action on the Loan Agreement and providing for the adoption of the resolution authorizing the debt service property tax levy in the next fiscal year.
2. Attestation Certificate with respect to the validity of the transcript.
3. County Filing Certificate
of the Linn County Auditor relating to the filing of a certified copy of the
resolution in that office.
As these proceedings are completed, please return one fully executed copy to our office.
If you have any questions, please contact Emily Hammond or me.
Best regards,
John P. Danos
Attachments
cc: Doug Herman
Matthew Stoffel