HomeMy WebLinkAbout2022-08-15 I01K WRA Senior Bond Issuance CertificateAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: August 15, 2022
AGENDA ITEM:Consideration of approval of a resolution approving Senior Bond Issuance
Certificate of WRA Participating Community
FORMAT:Consent Agenda
SYNOPSIS INCLUDING PRO & CON: The WRA intends to issue debt in the amount of
$83,600,000 over the next three calendar years, 2022, 2023 and 2024. This is
the first time the WRA board is asking for participating communities to have
Council approval of this certificate.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: City staff recommends approval of the attached resolution
and directs the Finance Director to execute and return the Senior Bond
Issuance Certificate.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Senior Bond Issuance Certificate
III. PFM Memo and Project Listing
PREPARED BY:Linda Burkhart
REVIEWED BY:
I1K
THE CITY OF WAUKEE, IOWA
RESOLUTION 2022-
APPROVING SENIOR BOND ISSUANCE CERTIFICATE OF WRA PARTICIPATING
COMMUNITY
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal
Organization; AND,
WHEREAS, the City of Waukee is a member of the Des Moines Metropolitan Wastewater
Reclamation Authority (WRA) and is in compliance with the provisions of the WRA Agreement;
AND,
WHEREAS, the WRA has identified projects that are anticipated to be issued in calendar years
2022, 2023 and 2024; AND,
WHEREAS, the WRA requires the assistance of participating communities to approve a Senior
Bond Issuance Certificate for the anticipated additional senior bonds of the WRA in the amount
of $83,600,000.
THEREFORE BE IT RESOLVED by the Waukee City Council on this 15th day of August,
2022, that it hereby approves the attached Senior Bond Issuance Certificate of WRA
Participating Community for the anticipated additional senior bonds of the WRA in the amount
of $83,600,000.00 and authorizes the City of Waukee Finance Director to execute and return the
Certificate to the Des Moines Metropolitan Wastewater Reclamation Authority.
____________________________
Courtney Clarke, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
Anna Bergman Pierce
R. Charles Bottenberg
Chris Crone
Larry R. Lyon
Ben Sinclair
SENIOR BOND ISSUANCE CERTIFICATE
OF WRA PARTICIPATING COMMUNITY
Name of Participating Community: Waukee
Anticipated Amount of Additional Senior Bonds: $ 83,600,000
Estimated Date of Issuance: $47,600,000 after August 1st in calendar 2022;
Remaining amounts will in calendar 2023 or 2024
This Senior Bond Issuance Certificate is being executed by the undersigned financial officer of
the Participating Community indicated above (the “Participating Community”) pursuant to Section 8.3
of Resolution No. 04-070 approved on October 28, 2004 (the “Master Resolution”) by the Board of the
Des Moines Metropolitan Wastewater Reclamation Authority (“WRA”), and supplementing Section 2
of Article XIII of the Second Amended and Restated Agreement for the WRA, filed with the Secretary
of State on June 11, 2014 (the WRA Agreement). All capitalized terms used in this Certificate which
are not otherwise defined herein shall have the meanings given to them in the Master Resolution.
Attached hereto are the following:
1. A draft resolution for your governing body,
2. WRA Certificate Projections, 2022 Certificates,
3. WRA Debt Service Allocation, August 2022: PFM’s proposed allocation of Debt Service to
the Participating Community for the Additional Senior Bonds (subject to change based on
actual timing of issuance by WRA), receipt of which is acknowledged by execution of this
Certificate.
The Participating Community hereby consents to and certifies, in connection with the anticipated
issuance of the above-referenced Senior Bonds, that it is currently in compliance with the provisions of
the WRA Agreement requiring the establishment of rates and charges or appropriation of other funds
sufficient in amount as will produce at least 110% of the amount necessary to pay the Participating
Community’s share of the principal and interest coming due on all Outstanding Bonds and all
outstanding Local Obligations during the fiscal year 2023, and acknowledges it has factored its estimated
allocations from future WRA issuances of Additional Senior Bonds into rate and coverage planning to
ensure maintenance of said coverage in future fiscal years.
Attach to this Certificate for return the following:
1. A copy of the resolution passed by your governing body approving the Senior Bond
Issuance Certificate of WRA Participating Community,
2. Schedule of principal and interest requirements of all outstanding Local Obligations of the
Participating Community,
3. Details of other funds appropriated to meet the coverage requirements.
Approved by the Governing Body of the Participating Community on the ___ day of _________, 2022.
Dated this ____ day of August 2022.
By: _________________________
Print Name: ____________________
Title: ________________________
15th August
16th
Linda Burkhart
Finance Director
Page 2 (August Certificates)
Call 323-8008 if you have any questions.
The information provided by PFM describes only WRA obligations; existing local obligations secured by sewer
revenues must also be considered and included in your coverage certifications.
Please send electronic scanned copies of all documents to RJVaughan@DMgov.org and StoffelM@PFM.com by
August 30th.
WRA Certificate Projections
2022 Certificates
PROJECT SPONSORED P&D TOTAL
Anticipated in 2022
Ingersoll Run - Segments 1 & 3 26,400,000 0 0 26,400,000
WRA Sewer Lining - Loan 2 11,000,000 0 0 11,000,000
ESI P27 Loan #1 (2016F) 0 1,800,000 0 1,800,000
So Tier West Interceptor Ph 10 S24 3,600,000 0 0 3,600,000
41,000,000 42,800,000
Anticipated Planning Design Loans
WRA Joint Trunk (East & West) 0 0 1,000,000 1,000,000
So Tier Interceptor P10 S4 0 0 300,000 300,000
East side Wet Weather 0 0 1,800,000 1,800,000
Aeration Improvements 0 0 400,000 400,000
So Tier P10 S6 0 0 300,000 300,000
Building 05 Rehabilitation 0 0 500,000 500,000
Disinfection 0 0 500,000 500,000
4,800,000
Anticipated in 2023/24
Clarifier Improvements - Ph 2 19,000,000 0 0 19,000,000
Bid Contingency 12,000,000 0 0 12,000,000
ESI P27 Loan #2 (2017A) 0 1,500,000 0 1,500,000
Clarifier Improvements - Ph 1 (2020B) 0 1,120,000 0 1,120,000
Ingersoll Run - Segments 1 & 3 0 2,380,000 0 2,380,000
31,000,000 36,000,000
CERTIFICATE TOTAL 72,000,000 6,800,000 4,800,000 83,600,000
PROJECT
Participating Community
Altoona 2,950,452
Ankeny 7,669,620
Bondurant 833,796
Clive 2,319,372
Cumming 38,232
Des Moines 32,202,720
GPHOC 440,496
Grimes 1,965,204
Johnston 2,020,536
Norwalk 1,708,956
Pleasant Hill 1,330,380
Polk City 471,240
Polk County 759,924
USSD 5,250,060
Urb/Whts SD 1,235,988
Waukee 1,991,988
West Des Moines 8,811,036
New Par for August 2022 72,000,000
August Certificate for Additional Senior Bonds
No Impact to Debt Service
8/1/2022
August 2, 2022
Memorandum
To: WRA Participating Communities
From: Matthew Stoffel, PFM Financial Advisors LLC (“PFM”)
CC: Jon Burmeister and Stephen Wewers, PFM Financial Advisors LLC
Roxane Vaughan, Operating Contractor
Re: WRA Senior Bond Issuing Certificates – Completion Instructions
The attached file has been prepared for your community to assist in the
calculations necessary to complete the required Senior Bond Issuing Certificate
for debt related to the projects listed in the table below. The highlighted projects
are anticipated to be issued in calendar year 2022, with the remaining projects
anticipated to be issued in calendar year 2023 or 2024.
$68,400,000 $3,600,000 $4,800,000
Core Projects Expansion Projects Planning & Design Loans
Ingersoll Run – Loan #1 So Tier West Interceptor P10 S4 So Tier Interceptor P10 S4
Sewer Lining – Loan #2 East Side Wet Weather
Clarifier Improvements – Loan #2 $6,800,000 Aeration Improvements
Bid Contingency ($12M) Sponsored Amendments So Tier P10 S6
Eastside Interceptor - #1 Building 05 Rehabilitation
Eastside Interceptor - #2 WRA Join Trunk (East & West)
Clarifier – Loan #1 Disinfection
Ingersoll Run – Loan #1
Instructions are as follows:
1. Prepare debt schedules for all outstanding locally issued sewer revenue
debt to be on parity with the debt issued by the WRA on behalf of the
Participating Community.
2. To calculate the fiscal year 2023 obligation required for the certificate,
add your fiscal year 2023 local obligation to the corresponding fiscal year
2023 allocation shown in the last column of the attachment. The last
column is labeled annual debt for “Total Existing and Pending Debt” on
page 13 and in the column numbered 147. Upon request, an excel
version of the attached file is available to assist each community with the
required computations.
3. Complete the attached Senior Bond Issuance Certificate.
4. After approval by roll call vote of the governing body return the signed
certificate along with schedules of principal and interest of all outstanding
Local Obligations of the Participating Communities sewer fund. Draft
resolution language is included as an additional attachment.
5. If the Participating Community required use of other appropriated funds
to meet the coverage requirements, please return the details of those
funds.
Please note that the Senior Bond Issuing Certificate required by the WRA does
not take the place of additional bonds tests that may be required by bond
covenants related to your local debt. Be advised that debt issued on your behalf
by the WRA is issued as nearly as possible on parity with your local debt, and
any requirements related to the issuance of your own debt (such as additional
bonds test and rate covenants) may need to be met prior to the issuance of
WRA debt. Typical additional bonds tests will require you to consider the
maximum future annual debt service on your combined WRA and local debt
obligations. You should consult your municipal advisor and your bond counsel
on the specifics of this matter. Please feel free to contact Matt at 515-724-5737
with any questions.
Please return electronic copies of the documents by August 30, 2022.
If you have any questions or need additional time, please contact Roxane or
Matt.
Roxane Vaughan Matthew Stoffel
RJVaughan@dmgov.org stoffelm@pfm.com
515-323-8008 515-724-5737