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HomeMy WebLinkAbout2025-01-20 Resolution 2025-043_Bonds, Sewer Revenue CLN Series 2023A, Amend AgreementRESOLUTION 2025-043 RESOLUTION AMENDING THE ORIGINAL RESOLUTION, APPROVED ON APRIL 3, 2023, 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 2023A, IN ORDER TO PROVIDE FOR THE FUNDING OF A SPONSORED PROJECT UNDER THE TERMS OF A NEW SERIES 2023A NOTE TO BE ISSUED IN THE PRINCIPAL AMOUNT OF $14,129,000, WHICH INCLUDES APPROVAL OF A SUPPLEMENTAL TAX EXEMPTION CERTIFICATE WHEREAS, the Issuer previously issued its Sewer Revenue Capital Loan Note, Series 2023A, dated April 28, 2023, in the amount of $$13,200,000 ("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, 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 2023A Note in the principal amount of $14,129,000 and bearing interest at the rate of 1.03% ("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 $929,000 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 Little Walnut Creek Sponsored 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; and WHEREAS, in the Prior Note Resolutions authorizing the issuance of the Outstanding Obligations it is provided that Additional Obligations may be issued on a parity with the Outstanding Obligations, for the costs of future extensions, additions, improvements or replacements to the System or refunding outstanding obligations, provided that there has been procured and placed on file with the City Clerk, a statement complying with the conditions and limitations therein imposed upon the issuance of Parity Obligations; and WHEREAS, a statement of PFM Financial Advisors LLC, an Independent Financial Consultant not in the regular employ of Issuer, has been placed on file in the office of the City Clerk, showing the conditions and limitations of the Prior Note Resolutions with regard to the sufficiency of the Net Revenues of the System to permit the issuance of Additional Obligations ranking on a parity with the Outstanding Obligations to have been met and satisfied as required. 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 1.03% per annum on the new principal amount of $14,129,000 from and after December 1, 2024 for the remainder of the life of the New Note. 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 201" day of January, 2025. Mayor ATTEST: City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN R. Charles Bottenberg X Chris Crone X Rob Grove X Anna Bergman Pierce X Ben Sinclair X EXHIBIT "A" SPONSORED PROJECT LOAN & DISBURSEMENT AGREEMENT AMENDMENT This Sponsored Project Loan and Disbursement Agreement Amendment is entered into this 7 h day of February, 2025 by and between the City of Waukee, State of Iowa ("Issuer") and Iowa Finance Authority ("IFA"). WHEREAS, the Issuer previously issued its Sewer Revenue Capital Loan Note, Series 2023A, dated April 28, 2023, in the amount of $13,200,000 ("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, 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 in the Amending Resolution ("Sponsored Project"), to be funded under the terms of a new Series 2023A Note in the principal amount of $14,129,000 ("New Note") and bearing interest at the rate of 1.03%; 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 Sponsored Project. NOW, THEREFORE, the parties agree as follows: 1. IFA hereby tenders the Original Note to the Issuer for cancellation, and accepts delivery of the New Note of the Issuer in the principal amount of $14,129,000 and bearing interest at the rate of 1.03%. 2. IFA hereby consents to the amendment of the Resolution authorizing the issuance of the Original Note to reflect the increased principal amount of the New Note, the new interest rate of 1.03%, and the additional purposes to which the proceeds shall be applied, and all other conforming amendments that may be necessary to reflect the modified terms of payment. 3. The Original Note is hereby cancelled and from and after the date hereof the parties shall be bound by the terms of the New Note, the principal and interest repayment schedule being as shown on Exhibit A attached hereto. 4. The original Loan and Disbursement Agreement by and between Issuer and IFA dated as of April 28, 2023 shall also be amended to reflect a principal amount of $14,129,000, bearing a rate of interest of 1.03% from December 1, 2024, and incurring an additional Initiation Fee of $4,645 (aggregate $70,645). All other terms and provisions set forth in the original Loan and Disbursement Agreement, except as amended hereof, shall be ratified and confirmed. CITY OF WAUKEE, STATE OF IOWA m. ATTEST: City Clerk Mayor IOWA FINANCE AUTHORITY EXHIBIT A 4899-7548-5965 v.I Pre -Final Amortization Schedule City of Waukee Sewer Revenue Bond CS-1921063-01 & WRR23-002 Estimated Draw Schedule Loan Closing Date Final Disbursement Date Final Maturity Date Loan Period in Years Total Loaned Amount 0.5% Initiation Fee Net Proceeds to Borrower Annual Interest Rate Total Interest Servicing Fee Rate Total Servicing Fees Total Loan Costs Apr 28, 2023 Initiation Fee - Apr 28, 2023 P & D Payoff - Apr 28, 2023 Draw # 1- Jul 28, 2023 Draw #2- Oct 20, 2023 Draw #3- Jan 5, 2024 Draw #4- Apr 5, 2024 Draw #5- Jul 12, 2024 Eff 12.1.24 Draw #6- Sep 27, 2024 Estimated Draw #7- Jan 17, 2025 SP Init Fee - Feb 7, 2025 Est SP Draw # 1- Feb 7, 2025 Est SP Draw #2- Ju1 6, 2025 Est SP Draw #3- Aug 1, 2025 Total Loaned Amount Au 1, 2025 Jun 1, 2044 20 $ 13,200,000.00 66,000.00 $ 13,134,000.00 1.03% $ 1,744,241.55 0.25% $ 400,506.07 $ 2,210.747.62 16.273.747.62 66,000-00 3,793,671.65 4,437,304.80 1,593,477.58 1,437,147.10 1,161,812.79 596.454.27 114,131.81 4,645.00 323,690.04 300,332.48 300,332.48 14,129,000.00 0 SRF STATE REVOLVING FUND Payment Beginning Servicing Total Loan Total Annual Debt Ending Date Balance Principal Interest Fee Payment Service Balance Jun 1, 2023 66,000.00 105.88 15.13 121.01 121.01 66,000.00 Dec 1, 2023 8.296 976.45 32,104.29 4,586.33 36,690.62 8,296,976.45 Jun 1, 2024 11,327,601.13 87,820.04 12,545.72 100,365.76 137,056.38 11,327,601.13 Dec 1, 2024 13,085,868.19 108,822.45 15,546.06 124,368.51 13,085,868.19 Jun 1, 2025 13,528,335.04 -- 590,000.00 68,900.71 16,723.47 675,624.18 799,992.69 12,938,335.04 Dec 1, 2025 13,539,000.00 68.909.53 16,725.61 85,635.14 13,539.000.00 Jun 1, 2026 13,539,000.00 635.000.00 69.725.85 16.923.75 721,649.60 807,284.74 12,904,000.00 Dec 1, 2026 12,904,000.00 66,455.60 16,130.00 82,585.60 12,904,000.00 Jun 1, 2027 12,904.000.00 642,000.00 66,455.60 16,130.00_ 724,565.60 807,171.20 12,262,000.00 Dec 1,2027 12,262,000.00 63,149.30 15,327.50 78,476.80 12,262,000.00 Jun 1, 2028 12,262,000.00 651,000.00 63,149.30 15,327.50 729,476.80 807,963.60 11,611,000.00 Dec 1, 2028 11,611.000.00 59,796.65 14,513.75 74,310.40 11,611,000.00 Jun 1, 2029 11,611,000.00 659.000.00 59,796.65 14,513.75 733,310.40 807,620.80 10,952,000.00 Dec 1, 2029 10,952,000.00 56,402.80 13,690.00 70,092.80 10.952,000.00 Jun 1 2030 10,952,000.00 667,000.00 56,402.80 13,690.00 737,092.80 _ 807,185.60 10,285,000.00 Dec 1, 2030 10,285,000.00 52,967.75 12,856.25 65,824.00 10,285,000.00 Jun 1, 2031 10,285,000.00 - 676,000.00 52,967.75 12,856.25 741,824.00 807,648.00 9,609,000.Do Dec 1, 2031 9,609,000.00 49,486.35 12,011.25 61,497.60 9,609,000.00 Jun 1, 2032 9,609,000.00 685,000.00 49,486.35 12,011.25 746,497.60 807,995.20 8,924,000.00 Dec 1, 2032 8,924,000.00 45,958.60 11,155.00 57,113.60 8.924,000.00 Jun 1, 2033 8,924.000.00 693,000.00 45,958.60 11,155.00 750,113.60 807,227.20 8,231,000.00 Dec 1, 2033 8,231,000.00 42,389.65 10,288.75 52,678.40 8,231,000.00 Jun 1, 2034 8,231,000.00 702,000.00 42,389.65 10,288.75 754,678.40 807,356.80 7,529,000.00 Dec 1, 2034 7,529,000.00 38.774.35 9,411.25 48,185.60 7.529,000.00 Jun 1, 2035 7,529,000.00 711,000.00 38,774.35 9,411.25 759,185.60 807,371.20 6,818,000.00 Dec 1, 2035 6,818,000.00 35.112.70 8,522.50 43,635.20 6,818,000.00 Jun 1, 2036 6,818,000.00 719,000.00 35,112.70 8,522.50 762,635.20 806,270.40 6,099,000.00 Dec 1, 2036 6,099,000.00 31,409.85 7,623.75 39,033.60 6,099,000.00 Jun 1, 2037 6,099,000.00 729,000.00 31,409.85 7,623.75 768,033.60 807.067.20 5,370,000.00 Dec 1, 2037 5,370,000.00 27,655.50 6,712.50 34,368.00 5,370,000.00 -Jun 1,-2038 5,370,000.00 738,000.00 27,655.50 6,712.50 772,368.00 _ 80_6,736.00 4,632,000.00 Dec 1, 2038 4,632,000.00 23,854.80 5,790.00 29,644.80 4,632,000.00 Jun 1, 2039 4,632,000.00 748,000.00 23.854.80 5,790.00 777,644.80 807,289.60 3,884,000.00 Dec 1, 2039 3,884,000.00 20,002.60 4,855.00 24,857.60 3,884,000.00 Jun 1, 2040 3,884,000.00 757,000.00 20,002.60 4,855.00 781,857.60 806,715.20 3,127,000.00 Dec1,2040 3,127,000.00 16,104.05 3,908.75 20,012.80 3,127,000.00 Jun 1, 2041 3,127,000.00 767,000.00 16,104.05 _ 3,908.75 787,_012.80 807,0_2.5.60 2,3_60,000.00 Dec 1, 2041 2,360,000.00 12,154.00 2,950.00 15,104.00 2,360,000.00 Jun 1, 2042 2,360,000.00 777,000.00 12,154.00 2,950.00 792,104.00 807,208.00 1,583,000.00 Dec 1, 2042 1,583,000.00 8,152.45 1,978.75 10,131.20 1,583,000.00 Jun 1, 2043 1,583,000.00 787,000.00 8,152.45 1,978.75 797,131.20 807,262.40 796,000.00 Dec 1, 2043 796,000.00 4,099.40 995.00 5,094.40 796,000.00 Jun 1, 2044 796.000.00 796,000.00 4,099.40 995.00 801,094.40 806,188.80 0.00 INVESTING IN IOWA'S WATER As of 11/26/2024 w .iowasrf.com