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Home My WebLink About2023-11-20 H02B Loan Agreement, Iowa DOTAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: November 20, 2023 AGENDA ITEM:Consideration of approval of a resolution ratifying, confirming, approving and authorizing a Loan Agreement, and authorizing and providing for the tax levy to pay the Loan Agreement FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: The proposed loan agreement is for the acquisition, construction, ownership or control of any real or personal property, including the 105th Street/Alices Road interchange project amongst the Department of Transportation, and the Cities of Waukee and West Des Moines. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: Not to exceed $7,500,000 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: H2B RESOLUTION 2023- RESOLUTION RATIFYING, CONFIRMING, APPROVING AND AUTHORIZING $7,339,293.73 GENERAL OBLIGATION LOAN AGREEMENT, AND AUTHORIZING AND PROVIDING FOR THE TAX LEVY TO PAY SAID LOAN AGREEMENT WHEREAS, the Issuer is duly incorporated, organized and exists under and by virtue of the laws and Constitution of the State of Iowa; and WHEREAS, the Issuer is in need of funds to pay costs of undertaking a joint and cooperative project with other governmental bodies, including acquisition, construction, ownership or control of any real or personal property, including the 105th Street/Alices Road interchange project amongst the Department of Transportation, and the Cities of Waukee and West Des Moines (the “Project”), essential corporate purpose(s), to the amount of not to exceed $7,500,000 be authorized for said purpose(s); and WHEREAS, pursuant to notice published as required by Sections 384.24A and 384.25 of the Code of Iowa, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the approval of a Loan Agreement to said amount, and the Council is therefore now authorized to proceed in furtherance of such purpose(s); and WHEREAS, the Iowa Department of Transportation (the "DOT") has advanced funds for the project on behalf of the City, and the City agrees to repay its share of the Project in accordance with the Loan Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WAUKEE, STATE OF IOWA: Section 1.Definitions. The following terms shall have the following meanings in this Resolution unless the text expressly or by necessary implication requires otherwise: • "Issuer" and "City" shall mean the City of Waukee, State of Iowa. • "Lender" shall mean the Iowa Department of Transportation (“DOT”), having its principal place of business in Des Moines, Iowa, and being authorized to conduct business in the State of Iowa. • "Loan Agreement" shall mean a Cooperative Preconstruction Agreement between the DOT, the City and the City of West Des Moines, Iowa, attached to and approved by this Resolution. • "Loan Fund" shall mean the fund created in Section 3 of this Resolution. • "Paying Agent" shall mean the City Clerk, or such successor as may be approved by Issuer as provided herein and who shall carry out the duties prescribed herein as Issuer's agent to provide for the payment of principal of and interest on the Loan as the same shall become due. • "Project" shall mean the costs of undertaking a joint and cooperative project with other governmental bodies, including acquisition, construction, ownership or control of any real or personal property, including the 105th Street/Alices Road interchange project amongst the Department of Transportation, and the Cities of Waukee and West Des Moines. • "Resolution" shall mean this resolution authorizing and approving the Loan Agreement. • "Treasurer" shall mean the Finance Director or such other officer as shall succeed to the same duties and responsibilities with respect to the recording and payment of the Loan Agreement approved hereunder. Section 2.Levy and Certification of Annual Tax; Other Funds to be Used. a)Levy of Annual Tax. That for the purpose of providing funds to pay the principal and interest of the Loan Agreement hereinafter authorized, there is hereby levied for each future year the following direct annual tax on all of the taxable property in the City of Waukee, State of Iowa, to-wit: AMOUNT FISCAL YEAR (JULY 1 TO JUNE 30) YEAR OF COLLECTION $733,929.37 2024/2025 $733,929.37 2025/2026 $733,929.37 2026/2027 $733,929.37 2027/2028 $733,929.37 2028/2029 $733,929.37 2029/2030 $733,929.37 2030/2031 $733,929.37 2031/2032 $733,929.37 2032/2033 $733,929.40 2033/2034 (NOTE: For example the levy to be made and certified against the taxable valuations of January 1, 2023 will be collected during the fiscal year commencing July 1, 2024.) b)Resolution to be Filed With County Auditor. A certified copy of this Resolution shall be filed with the Auditor of Dallas County, Iowa and the Auditor is hereby instructed in and for each of the years as provided, to levy and assess the tax hereby authorized in Section 2 of this Resolution, in like manner as other taxes are levied and assessed, and such taxes so levied in and for each of the years aforesaid be collected in like manner as other taxes of the City are collected, and when collected be used for the purpose of paying principal and interest on the Loan Agreement approved in anticipation of the tax, and for no other purpose whatsoever. c)Additional City Funds Available. Principal and interest coming due at any time when the proceeds of said tax on hand shall be insufficient to pay the same shall be promptly paid when due from current funds of the City available for that purpose and reimbursement shall be made from such special fund in the amounts thus advanced. d)Right of Non-Appropriation. Notwithstanding anything in this Resolution to the contrary, the payments of principal and interest due on the Loan Agreement shall not constitute a mandatory charge or a requirement in any ensuing fiscal year beyond the then current fiscal year, and the Issuer shall have no continuing obligation to appropriate money for the payment of interest and principal due on the Loan Agreement, and no provision of this Resolution or the Loan Agreement shall be construed or interpreted as creating a general obligation or other indebtedness of the Issuer within the meaning of any constitutional or statutory debt limitation. The Issuer's obligation to make payments of interest and principal in respect of the Loan Agreement shall be subject at all times to non-appropriation by the City Council. Annually, the City Council shall determine whether to budget and appropriate funds for the next succeeding fiscal year to make the payments of principal of and interest due on the Loan Agreement during such fiscal year. If the City Council determines to budget and appropriate funds for such purposes, the City agrees to certify to the County Auditor by April 30 (or such other budget deadline as required by Iowa Code section 384.16 et. seq. or such subsequent successor statute) prior to the commencement of the next fiscal year, the amount, if any, of principal of and interest on the Loan Agreement are to be paid from Loan Fund contemplated herein for such fiscal year. In the event that funds are not budgeted and appropriated by the City Council in any fiscal year in an amount sufficient to meet the payments of interest and principal due on the Loan Agreement, the Issuer shall have the right to terminate its obligations with respect to future payments of interest and principal thereon without penalty, by giving not less than thirty (30) days written notice to the Lender of the lack of continued funding, and the Issuer's obligations under the Loan Agreement shall become null and void on the last day of the fiscal year for which the necessary funds were appropriated. Upon the occurrence of any such non-appropriation, Issuer shall not be obligated to make payment of any additional amounts in respect of principal and interest on the Loan Agreement beyond those funds which have been so appropriated, and the Issuer shall not be liable to the Lender (or any other assignee) for any remaining amounts due under the Loan Agreement or for any costs, damages (including but not limited to consequential damages) or expenses incurred by the Lender (or any other assignee) as a result of the exercise by the Issuer of the foregoing right of non-appropriation. Section 3.Loan Fund. Said tax shall be assessed and collected each year at the same time and in the same manner as, and in addition to, all other taxes in and for the City, and when collected they shall be converted into a special fund within the Debt Service Fund to be known as the "2023 GENERAL OBLIGATION DOT LOAN FUND NO. 2" (the "Loan Fund"), which is hereby pledged for and shall be used only for the payment of the principal of and interest on the Loan Agreement authorized herein; and also there shall be apportioned to said fund its proportion of taxes received by the City from property that is centrally assessed by the State of Iowa. Section 4.Loan Agreement Details, Redemption, and Execution. a)Details. Payments in the aggregate amount of $7,339,293.73 as hereinafter outlined, are hereby approved, pursuant to the provisions of Sections 384.24A and 384.25 of the Code of Iowa, for the Project. The Loan Agreement shall be secured equally and ratably from the sources provided in Section 3 of this Resolution. The Loan Agreement shall be designated as the "GENERAL OBLIGATION LOAN AGREEMENT, SERIES 2023" on the City’s records, and shall bear no interest (0%). Principal payable under the Loan Agreement shall be paid to Lender on July 1, 2024, and annually thereafter on the 1st day of July in each year until maturity as set forth in the Debt Service Schedule attached to the Loan Agreement as Exhibit A and incorporated herein by this reference. b)Redemption. The City may prepay the Loan at par, at any time prior to final maturity. c)Loan Agreement and Closing Documents. The prior approval and execution of the Loan Agreement attached to this Resolution is hereby ratified, confirmed and approved. The Mayor and City Clerk are authorized and directed to execute, attest, seal and deliver for and on behalf of the City any other additional certificates, documents, or other papers and perform all other acts, including without limitation the execution of all closing documents, as they may deem necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 5.No Transfer. The Loan Agreement may not be transferred. Section 6.Contract Between Issuer and Purchaser. This Resolution constitutes a contract between said City and the Lender. Section 7.Repeal of Conflicting Resolutions or Ordinances. All ordinances and resolutions and parts of ordinances and resolutions in conflict herewith are hereby repealed. Section 8.Severability Clause. If any section, paragraph, clause or provision of this Resolution be held invalid, such invalidity shall not affect any of the remaining provisions hereof, and this Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this 20th day of November, 2023. Mayor ATTEST: City Clerk