HomeMy WebLinkAbout2020-04-20-I06B SRF Sewer Revenue CLN_Amend Original Resolution to Provide FundingAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: April 20, 2020
AGENDA ITEM:Consideration of approval of a resolution amending the original
resolution, approved on August 7, 2017 (Approving and Authorizing a
Loan and Disbursement Agreement with the Iowa Finance Authority and
Authorizing and Providing for the Issuance of Sewer Revenue Capital
Loan Notes, Series 2017) in order to provide for the funding of a
sponsored project under the terms of a new Series 2017 Note to be issued
in the principal amount of $10,523,374.71, which includes approval of a
Supplemental Tax Exemption Certificate
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: The Iowa Finance Authority has requested that the
original note, issued in 2017 in the amount of $9,938,374.71, be
exchanged for a new note reflecting the additional amount allocated for
the Waukee Public Library Stormwater Improvements Project.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $10,523,374.71
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
PREPARED BY:Becky Schuett
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
I6B
RESOLUTION 2020-
RESOLUTION AMENDING THE ORIGINAL RESOLUTION,
APPROVED ON AUGUST 7, 207, SAID RESOLUTION APPROVING
AND AUTHORIZING A LOAN AND DISBURSEMENT
AGREEMENT WITH THE IOWA FINANCE AUTHORITY AND
AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF
SEWER REVENUE CAPITAL LOAN NOTES, SERIES 2017, IN
ORDER TO PROVIDE FOR THE FUNDING OF A SPONSORED
PROJECT UNDER THE TERMS OF A NEW SERIES 2017 NOTE TO
BE ISSUED IN THE PRINCIPAL AMOUNT OF $10,523,374.71,
WHICH INCLUDES APPROVAL OF A SUPPLEMENTAL TAX
EXEMPTION CERTIFICATE
WHEREAS, the Issuer previously issued its Sewer Revenue Capital Loan Note, Series
2017, dated September 1, 2017, in the amount of $12,537,000 ("Original Note"), pursuant to a
Loan and Disbursement Agreement between Issuer and the Iowa Finance Authority, dated of like
date (the "Agreement"), for the purpose of defraying the costs of the Project (as defined in the
resolution authorizing issuance of the same (hereinafter the "Resolution")); and
WHEREAS, upon completion of the Project contemplated by the Original Note, the final
loan was determined to be $9,938,374.71, with debt service schedule amended accordingly; and
WHEREAS, the Issuer has been approved by the Iowa Finance Authority and the
Department of Natural Resources for a "sponsored project" amendment to the Original Note for a
water restoration project described below ("Sponsored Project") to be funded under the terms of
a new Series 2017 Note in the principal amount of $10,523,374.71 and bearing interest at the rate
of 0.75% ("New Note"); and
WHEREAS, the Iowa Finance Authority has requested that the Original Note be
exchanged for the New Note, reflecting the additional amount allocated for the Project; and
WHEREAS, pursuant to notice published as required by law, this Council has held a
public meeting and hearing upon the proposal to institute proceedings for the authorization of a
Loan and Disbursement Agreement by and between the Issuer and the Iowa Finance Authority,
and the issuance to the Iowa Finance Authority of not to exceed $1,000,000 Sewer Revenue
Capital Loan Notes to evidence the obligations of the Issuer under said Loan and Disbursement
Agreement, for the purpose of acquisition, construction, reconstruction, extending, remodeling,
improving, repairing and equipping all or part of the Municipal Sewer System, including those
costs associated with the Waukee Public Library Stormwater Improvements water resource
restoration project, and has considered the extent of objections received from residents or
property owners as to said proposal and, accordingly the following action is now considered to
be in the best interests of the City and residents thereof; and
WHEREAS, a Sponsored Project Loan and Disbursement Agreement Amendment
(hereinafter the "Amendment") has been prepared to reflect said interest rate reduction and
additional loan amount, a copy of which is attached hereto as Exhibit A; and
WHEREAS, pursuant to IRS regulations adoption of the Amendment constitutes a
reissuance of the Note.
NOW, THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF
WAUKEE, STATE OF IOWA:
Section 1. That the Resolution is hereby amended to reflect the interest rate reduction
to 0.75% per annum on the new principal amount of $10,523,374.71 from and after December 1,
2019 for the remainder of the life of the New Note. Debt service on the New Note is the same as
debt service on the Original Note, accordingly, parity coverage is not affected.
Section 2. That the Amendment in substantially the form attached to this Resolution
and the New Note are hereby authorized to be executed and issued on behalf of the Issuer by the
Mayor and attested by the City Clerk. The New Note shall be exchanged for the Original Note.
Section 3. That the Supplemental Tax Certificate regarding the uses of proceeds and
the System is hereby approved. The Finance Director is authorized to execute the same.
Section 4. Except as amended herein, all of the other terms and conditions of the
Resolution and Agreement are in all respects ratified, confirmed and approved and shall remain
in full effect.
PASSED AND APPROVED this 20th day of April, 2020.
______________________________
Mayor
ATTEST:
______________________________
City Clerk
EXHIBIT "A"
SPONSORED PROJECT LOAN & DISBURSEMENT AGREEMENT AMENDMENT
01705650-1\21938-146