HomeMy WebLinkAbout2024-04-15 I01F_01 WRA Senior Bond Issuance Certificate-2024AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: April 15, 2024
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
$81,710,000 over calendar years, 2024 and 2025.
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:
I1F1
THE CITY OF WAUKEE, IOWA
RESOLUTION 2024-
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
2024 and 2025; 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 $81,710,000.
THEREFORE BE IT RESOLVED by the Waukee City Council on this 15th day of April,
2024, 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 $81,710,000.00 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
R. Charles Bottenberg
Chris Crone
Rob Grove
Anna Bergman Pierce
Ben Sinclair
SENIOR BOND ISSUANCE CERTIFICATE
OF WRA PARTICIPATING COMMUNITY
Name of Participating Community: City of Waukee, Iowa
Anticipated Amount of Additional Senior Bonds: $ 81,710,000
Estimated Date of Issuance: $59,710,000 after June 13th in calendar 2024;
Remaining amounts will be issued after January 1, 2025
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:
• WRA Certificate Memo & Instructions,
• City of Waukee WRA Debt Service Allocation, 2024 Certificates: 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.
• WRA Cash Contribution Process
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 2025, 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 _________, 2024.
Dated this ____ day of ______ 2024.
By: _________________________
Print Name: ____________________
Title: ________________________
March 27, 2024
Memorandum
To: Brad Deets, City of Waukee
From: Matthew Stoffel, PFM Financial Advisors LLC (“PFM”)
CC: Scott Hutchens and Roxane Vaughan, Operating Contractor
Eric Boehlert, Ahlers & Cooney, P.C.
Re: Senior Bond Issuance Certificates – 2024 Certificates
Background
The Senior Bond Issuance Certificates of the WRA Participating Community
(“Certificates”) are required as part of the Second Amended and Restated 28E
Agreement (“Agreement” or “28E”). The Certificates are the mechanism that
gives the WRA the authority to issue debt on behalf of the Participating
Communities.
The WRA is requesting additional borrowing authority of $81,710,000 for
upcoming capital projects.
The WRA Board, WRA Technical Committee and WRA Finance Committee have
reviewed these projects and loan amounts and have recommended approval of
the 2024 Certificates.
• June 1, 2023 Finance Committee:
o Received presentation from HDR regarding the WRA Treatment
Facility Plan Update – 2024.
o Reviewed list of future projects to consider, debt assumptions
and community impact of Facility plan update.
• October 17, 2023 Finance Committee:
o Reviewed detailed CIP and had preliminary discussions
regarding the need for a public bond sale in 2024 to fund several
CIP projects that are not SRF eligible or they are too small to
justify stand-alone SRF financing.
o Discussed the need for 2024 Certificates to authorize additional
debt being considered in the CIP update.
o Discussed the need to amend the 2023 Certificates to include
property acquisition as an eligible project. WRA did not increase
the amount of the 2023 Certificates but reallocated a portion of
the $10,000,000 contingency to the added project.
• December 19, 2023 Finance Committee:
o Reviewed and discussed the proposed 2024 bond issuance
schedule.
o Discussed the potential considerations for Participating
Community bank qualification considerations.
• January 16, 2024 Finance Committee:
o Discussed and finalized the size of the 2024 bond issue.
Recommended inclusion of the 2024 bond debt service in the
Fiscal Year 2024-25 budget.
o Reviewed and discussed list of projects totaling $117,000,000,
that could be considered for the 2024 Certificates. WRA staff
narrowed the list of projects to $81,710,000 based on anticipated
needs through December 31, 2025.
• February 20, 2024 WRA Board Meeting:
o WRA Board held public hearings and adopted Fiscal Year 2024-
25 budget inclusive of the 2024 Certificate projects.
Projects & Assumptions
The table below outlines the projects and assumptions included in the 2024
Certificates. WRA has provided one page project summaries for several key
projects included in the 2024 Certificates.
1) Assumed interest rates are based on current bond market conditions or current SRF Loans interest rates plus
1.00% for market timing. The Iowa Finance Authority has started adjusting interest rates quarterly based on the
tax-exempt and taxable 20 year BVAL rate. Actual interest rates are subject to change.
2) The 2023 Certificates included $42.1 million for Phosphorus Recovery and $8 million for Southern Tier
Interceptor improvements. The amounts included in the 2024 Certificates represent additional amount expected
to fund these projects.
3) WRF Phosphorus Recovery and all Planning and Design (“P&D”) loans are expected to be issued as taxable
debt and will not impact Participating Communities bank qualification considerations.
Participating Community Impact
The table below outlines the current allocations for the proposed projects.
Project
WRA
Amount
Waukee
Flow %
Waukee
Allocation
Est. Annual
Debt Service
BQ
Impact
Series 2024D Bond Sale $28,110,000 3.096% $870,286 $82,663 Yes
Southern Tier & DM River Interceptors #2 14,000,000 3.096% 433,440 31,006 Yes
Phosphorus Recovery #2 8,000,000 3.096% 247,680 19,969 No
Joint Trunk – West 27,000,000 6.376% 1,721,520 123,152 Yes
Personnel Facility (P&D) 2,000,000 3.096% 61,920 0 No
Aeration Improvements (P&D) 1,600,000 3.096% 49,536 0 No
B50 Return Sludge Pump Station (P&D) 1,000,000 3.096% 30,960 0 No
Total $81,710,000 $3,415,342 $256,791
WRA reallocates all costs annually according to the terms in the 28E based on
the change to the three-year average flows. Flow year is October 1st to
September 30th. Community allocations are subject to change based on the
terms of the Agreement.
Project Amount Term
Interest Rate
Assumption 1)
Calendar
Year
Series 2024D Bond Sale $28,110,000 15 year 4.95% 2024
Southern Tier & DM River Interceptors #2 2) 14,000,000 20 year 3.68% 2025
Phosphorus Recovery #2 2) 3) 8,000,000 20 year 5.05% 2025
Joint Trunk – West 27,000,000 20 year 3.68% 2024
Personnel Facility (P&D) 3) 2,000,000 3 year 0.00% TBD
Aeration Improvements (P&D) 3) 1,600,000 3 year 0.00% TBD
B50 Return Sludge Pump Station (P&D) 3) 1,000,000 3 year 0.00% TBD
Total $81,710,000
Supporting Documents
1. Additional Project Information
2. Senior Bond Issuance Certificate of WRA Participating Community.
3. City of Waukee WRA Debt Service Allocations – 2024 Certificates.
a. This includes debt service allocation of all existing, previously
certified but not yet issued, and proposed WRA loans under the
2024 Certificates using the most current flow allocation.
4. WRA Cash Contribution Process. This document provides the steps a
community can take to pay cash in lieu of the WRA issuing debt on their
behalf. The Senior Bond Certificates still need to be complete by each
Participating Community regardless of a Participating Community’s
election to fund their portion of a project with cash.
Next Steps
1. Confirm community rates and charges or annually appropriated funds are
sufficient to produce at least 110% of the amount necessary to pay
principal and interest on all Outstanding Bonds and all outstanding Local
Obligations during Fiscal Year 2024-25. Confirm other bond covenants
are compliant with respect to Local Obligations.
2. Approve, by resolution of your governing body, the Senior Bond Issuance
Certificate of WRA Participating Community.
3. Return supporting documentation to WRA staff.
Please return electronic copies of documents to Roxane Vaughan by April 30, 2024.
Questions can be directed to Roxane Vaughan and/or Matthew Stoffel.
Roxane Vaughan 515-323-8008 rjvaughan@dmgov.org
Matthew Stoffel 515-724-5737 stoffelm@pfm.com