HomeMy WebLinkAbout2011-02-28-Resolutions 11-30_Bonds - GO CLN Series 2011 - IssuanceRESOLUTION 11-30
RESOLUTION APPROVING AND AUTHORIZING A
FORM OF LOAN AGREEMENT AND AUTHORIZING
AND PROVIDING FOR THE ISSUANCE OF $155,202
GENERAL OBLIGATION CAPITAL LOAN NOTES,
SERIES 2011,AND LEVYING A TAX TO PAY THE
NOTES
WHEREAS,the Issuer is duly incorporated,organized and exists under and by
virtue of the laws and Constitution of the State ofIowa;and
WHEREAS,the City is in need of funds to pay costs of equipping of golf courses
including the purchase of golf carts,a general corporate purpose,and it is deemed
necessary and advisable that General Obligation Capital Loan Notes,Series 2011,to the
amount of$155,202 be authorized for said purpose;and
WHEREAS,the City has a population of more than 5,000 but not more than
75,000;and
WHEREAS,pursuant to notice published as required by Sections 384.24,
384.24A,and 384.26 (5)of said Code,the Council of the City has held public meeting
and hearing upon the proposal to institute proceedings for the authorization to enter into a
loan agreement and the issuance of notes for general corporate purposes in the amounts
as above set forth,and,no petition for referendum having been received,the Council is
therefore now authorized to proceed with the issuance of$155,202 General Obligation
Capital Loan Notes thereof;and
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:
D "Issuer"and "City"shall mean the City of Waukee,State ofIowa.
D "Loan Agreement"shall mean a Loan Agreement between the Issuer
and a lender or lenders in substantially the form attached to and approved by this
Resolution.
D "Note Fund"shall mean the fund created in Section 4 of this
Resolution.
-1-
o "Note"or "Notes"shall mean $155,202 General Obligation Capital
Loan Note,Series 2011,authorized to be issued by this Resolution.
o "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 Notes as the same shall become due.
o "Project"shall mean the costs of the equipping of golf courses
including the purchase of golf carts,
o "Project Fund"shall mean the fund required to be established by this
Resolution for the deposit of the proceeds of the Notes.
o "Rebate Fund"shall mean the fund so defined in and established
pursuant to the Tax Exemption Certificate.
o "Registrar"shall mean the City Clerk of Waukee,Iowa,or such
successor as may be approved by Issuer as provided herein and who shall carry out
the duties prescribed herein with respect to maintaining a register of the owners of
the Notes.Unless otherwise specified,the Registrar shall also act as Transfer
Agent for the Notes.
o "Resolution"shall mean this resolution authorizing the Notes.
o "Tax Exemption Certificate"shall mean the Tax Exemption
Certificate executed by the Treasurer and delivered at the time of issuance and
delivery of the Notes.
o "Treasurer"shall mean the Director of Finance or such other officer
as shall succeed to the same duties and responsibilities with respect to the
recording and payment of the Notes issued hereunder.
Section 2.The form of Loan Agreement in substantially the form attached to this
Resolution is hereby approved and is authorized to be executed and issued on behalf of
the Issuer by the Mayor and attested by the City Clerk.
Section 3.Levy and Celtification of Annual Tax;Other Funds to be Used.
-2-
(a)Levy of Annual Tax.That for the purpose of providing funds to pay the
principal and interest of the Notes hereinafter authorized to be issued,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 ofIowa,to-wit:
AMOUNT
FISCAL YEAR (JULY 1 TO JUNE 30)
YEAR OF COLLECTION
$37,332.68*
$35,104.31
$34,032.46
$32,960.61
$31,626.00
2011/2012
2012/2013
201312014
2014/2015
2015/2016
*Payable from cash on hand.
(NOTE:For example the levy to be made and certified against the taxable
valuations of January 1,2011,will be collected during the fiscal year commencing
July 1,2012).
(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 herehy authorized in Section 3 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 he used for the purpose of paying principal and interest on said
Notes issued in anticipation of the tax,and for no other purpose whatsoever.
(c)Additional City Funds Availahle.Principal and interest coming due at anytime
when the proceeds of said tax on hand shall he insufficient to pay the same shall
be promptly paid when due from current funds ofthe City available for that
purpose and reimhursement shall be made from such special fund in the amounts
thus advanced.
Section 4.Note 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 Deht
Service Fund to be known as tile "GENERAL OBLIGATION CAPITAL LOAN NOTE
FUND NO.1"(tile "Note Fund"),which is hereby pledged for and shall be used only for
the payment of tile principal of and interest on the Notes hereinafter authorized to be
-3-
issued;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 ofIowa.
Section 5.Application of Note Proceeds.Proceeds of the Notes other than accrued
interest except as may be provided below shall be credited to the Project Fund and
expended therefrom for the purposes of the Project.Any amounts on hand in the Project
Fund shall be available for the payment of the principal of or interest on the Notes at any
time that other funds shall be insufficient to the purpose,in which event such funds shall
be repaid to the Project Fund at the earliest opportunity.Any balance on hand in the
Project Fund and not immediately required for its purposes may be invested not
inconsistent with limitations provided by law or this Resolution.Accrued interest,if any,
shall be deposited in the Note Fund.
Section 6.Investments of Note Fund Proceeds.All moneys held in the Note Fund
and the Project Fund,shall be invested in investments permitted by Chapter 12B,Code of
Iowa,2011,as amended,or deposited in financial institutions which are members of the
Federal Deposit Insurance Corporation and the deposits in which are insured thereby and
all such deposits exceeding the maximum amount insured from time to time by FDIC or
its equivalent successor in anyone financial institution shall be continuously secured in
compliance with Chapter 12C of the Code ofIowa,2011,as amended,or otherwise by a
valid pledge of direct obligations of the United States Government having an equivalent
market value.All such interim investments shall mature before the date on which the
moneys are required for payment of principal of or interest on the Notes as herein
provided.
Section 7.Note Details,Execution and Redemption,
(a)Note Details.General Obligation Capital Loan Notes,Series 2011,of the City
in the total amount of$155,202,shall be issued to evidence the obligations of the
Issuer under the Loan Agreement pursuant to the provisions of Sections 384.26 of
the City Code ofIowa,as amended,for the aforesaid purpose.The Notes shall be
issued in one or more series and shall be on a parity and secured equally and
ratably from the sources provided in Section 3 of this Resolution,The Notes shall
be designated "$155,202 GENERAL OBLIGATION CAPITAL LOAN NOTES,
SERIES 2011 ",be dated date of delivery,and bear interest from the date thereof,
until payment thereof,at the office of the Paying Agent,said interest payable on
December 1,2011,and semiannually thereafter on the 1st day of June and
December in each year until maturity at the rates hereinafter provided,
The Notes shall be executed by the manual or facsimile signature ofthe
Mayor and attested by the manual or facsimile signature of the City Clerk,and
impressed or printed with the seal of the City and shall be fully registered as to
-4-
both principal and interest as provided in this Resolution;principal,interest and
premium,if any,shall be payable at the office of the Paying Agent by mailing of a
check to the registered owner of the Note.A single Note shall be issued in the
denomination of $155,202 and shall mature and bear interest as follows:
Principal
Amount
Interest
Rate
Final
Maturity
$155,202 3.400%June 1,2016*
*Payable as to principal and interest semi-annually beginning December 1,2011,
and continuing on June 1 and December 1 each year until fmalmaturity.A
schedule of payment is attached hereto as Exhibit A.
(b)Redemption.Notes may be called for redemption by the Issuer and paid
before maturity on any date,from any funds regardless of source,in whole or from
time to time in part,in any order of maturity and within an annual maturity by lot.
The terms of redemption shall be par,plus accrued interest to date of call.
Ten day's notice of redemption shall be given by ordinary mail to the
registered owner of the Note.Failure to give such notice by mail to any registered
owner of the Notes or any defect therein shall not affect the validity of any
proceedings for the redemption of the Notes.All Notes or portions thereof called
for redemption will cease to bear interest after the specified redemption date,
provided funds for their redemption are on deposit at the place of payment.
If selection by lot within a maturity is required,the Registrar shall
designate the Notes to be redeemed by random selection of the names of the
registered owners of the entire annual maturity until the total amount of Notes to
be called has been reached,
Section 8.Registration of Notes;Appointment of Registrar;Transfer;Ownership;
Delivery;and Cancellation.
(a)Registration.The ownership of Notes may be transferred only by the
making of an entry upon the books kept for the registration and transfer of
ownership of the Notes,and in no other way.The City Clerk is hereby appointed
as Registrar under the terms of this Resolution.Registrar shall maintain the books
of the Issuer for the registration of ownership of the Notes for the payment of
principal of and interest on the Notes as provided in this Resolution.All Notes
shall be negotiable as provided in Article 8 of the Uniform Commercial Code
-5-
subject to the provisions for registration and transfer contained in the Notes and in
this Resolution.
(b)Transfer.The ownership of any Note may be transferred only upon the
Registration Books kept for the registration and transfer of Notes and only upon
surrender thereof at the office of the Registrar together with an assignment duly
executed by the holder or his duly authorized attorney in fact in such fOlT11as shall
be satisfactory to the Registrar,along with the address and social security number
or federal employer identification number of such transferee (or,if registration is
to be made in the name of multiple individuals,of all such transferees).In the
event that the address of the registered owner of a Note (other than a registered
owner which is the nominee of the broker or dealer in question)is that of a broker
or dealer,there must be disclosed on the Registration Books the information
pertaining to the registered owner required above.Upon the transfer of any such
Note,a new fully registered Note,of any denomination or denominations
permitted by this Resolution in aggregate principal amount equal to the umnatured
and unredeemed principal amount of such trans ferred fully registered Note,and
bearing interest at the same rate and maturing on the same date or dates shall be
delivered by the Registrar.
(c)Registration of Transferred Notes.In all cases of the transfer of the
Notes,the Registrar shall register,at the earliest practicable time,on the
Registration Books,the Notes,in accordance with the provisions of this
Resolution.
(d)Ownership.As to any Note,the person in whose name the ownership of
the same shall be registered on the Registration Books of the Registrar shall be
deemed and regarded as the absolute owner thereof for all purposes,and payment
of or on account of the principal of any such Notes and the premium,if any,and
interest thereon shall be made only to or upon the order of the registered owner
thereof or his legal representative.All such payments shall be valid and effectual
to satisfy and discharge the liability upon such Note,including the interest thereon,
to the extent of the sum or sums so paid.
(e)Cancellation.All Notes which have been redeemed shall not be reissued
but shall be cancelled by the Registrar.All Notes which are cancelled by the
Registrar shall be destroyed and a certificate of the destruction thereof shall be
furnished promptly to the Issuer;provided that if the Issuer shall so direct,the
Registrar shall forward the cancelled Notes to the Issuer.
(f)Non-Presentment of Notes.In the event any payment check representing
payment of principal of or interest on the Notes is returned to the Paying Agent or
-6-
if any Note is not presented for payment of principal at the maturity or redemption
date,if funds sufficient to pay such principal of or interest on Notes shall have
been made available to the Paying Agent for the benefit of the owner thereof,all
liability of the Issuer to the owner thereof for such interest or payment of such
Notes shall forthwith cease,terminate and be completely discharged,and
thereupon it shall be the duty of the Paying Agent to hold such funds,without
liability for interest thereon,for the benefit of the owner of such Notes who shall
thereafter be restricted exclusively to such funds for any claim of whatever nature
on his part under this Resolution or on,or with respect to,such interest or Notes.
The Paying Agent's obligation to hold such funds shall continue for a period equal
to two years and six months following the date on which such interest or principal
became due,whether at maturity,or at the date fixed for redemption thereof,or
otherwise,at which time the Paying Agent,shall surrender any remaining funds so
held to the Issuer,whereupon any claim under this Resolution by the Owners of
such interest or Notes of whatever nature shall be made upon the Issuer.
(g)Registration and Transfer Fees.The Registrar may furnish to each
owner,at the Issuer's expense,one Note for each annual maturity.The Registrar
shall furnish additional Notes in lesser denominations (but not less than the
minimum denomination)to an owner who so requests.
Section 9.Reissuance of Mutilated,Destroyed,Stolen or Lost Notes.In case any
outstanding Note shall become mutilated or be destroyed,stolen or lost,the Issuer shall at
the request of Registrar authenticate and deliver a new Note oflike tenor and amount as
the Note so mutilated,destroyed,stolen or lost,in exchange and substitution for such
mutilated Note to Registrar,upon surrender of such mutilated Note,or in lieu of and
substitution for the Note destroyed,stolen or lost,upon filing with the Registrar evidence
satisfactory to the Registrar and Issuer that such Note has been destroyed,stolen or lost
and proof of ownership thereof,and upon furnishing the Registrar and Issuer with
satisfactory indemnity and complying with such other reasonable regulations as the Issuer
or its agent may prescribe and paying such expenses as the Issuer may incur in
connection therewith.
Section 10.Record Date.Payments of principal and interest,otherwise than upon
full redemption,made in respect of any Note,shall be made to the registered holder
thereof or to their designated Agent as the same appear on the books of the Registrar on
the 15th day preceding the payment date.All such payments shall fully discharge the
obligations of the Issuer in respect of such Notes to the extent of the payments so made.
Payment of principal shall only be made upon surrender of the Note to the Paying Agent.
Section 11.Execution,Authentication and Delivery of the Notes.The Mayor and
Clerk shall execute and deliver the Notes to the Registrar,who shall authenticate the
-7-
Notes and deliver the same to or upon order of the Purchaser.No Note shall be valid or
obligatory for any purpose or shall be entitled to any right or benefit hereunder unless the
Registrar shall duly endorse and execute on such Note a Certificate of Authentication
substantially in the form of the Certificate herein set forth.Such Certificate upon any
Note executed on behalf of the Issuer shall be conclusive evidence that the Note so
authenticated has been duly issued under this Resolution and that the holder thereof is
entitled to the benefits of this Resolution.
Section 12.Right to Name Substitute Paying Agent or Registrar.Issuer reserves
the right to name a substitute,successor Registrar or Paying Agent upon giving prompt
written notice to each registered noteholder.
Section 13.Form of Note.Notes shall be printed in substantial compliance with
standards proposed by the American Standards Institute substantially in the form attached
hereto as Exhibit B.
Section 14.Contract Between Issuer and Purchaser.This Resolution shall
constitute a contract between said City and the purchaser of the Notes.
Section 15.Non-Arbitrage Covenants.The Issuerreasonably expects and
covenants that no use will be made of the proceeds from the issuance and sale of the
Notes issued hereunder which will cause any of the Notes to be classified as arbitrage
notes within the meaning of Sections l48(a)and (b)of the Intemal Revenue Code of the
United States,as amended,and that throughout the term of the Notes it will comply with
the requirements of statutes and regulations issued thereunder.
To the best knowledge and belief ofthe Issuer,there are no facts or circumstances
that would materially change the foregoing statements or the conclusion that it is not
expected that the proceeds of the Notes will be used in a manner that would cause the
Notes to be arbitrage notes.Without limiting the generality of the foregoing,the Issuer
hereby agrees to comply with the provisions of the Tax Exemption Certificate and the
provisions of the Tax Exemption Certificate are hereby incorporated by reference as part
of this Resolution.The Treasurer is hereby directed to make and insert all calculations
and determinations necessat'y to complete the Tax Exemption Certificate in all respects
and to execute and deliver the Tax Exemption Certificate at issuance of the Notes to
certify as to the reasonable expectations and covenants of the Issuer at that date.
Section 16.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.
-8-
Section 17.Additional Covenants,Representations and Wan'anties of the Issuer.
The Issuer certifies and covenants with the purchasers and holders of the Notes from time
to time outstanding that the Issuer through its officers,(a)will make such further specific
covenants,representations and assurances as may be necessary or advisable;(b)comply
with all representations,covenants and assurances contained in the Tax Exemption
Certificate,which Tax Exemption Certificate shall constitute a part of the contract
between the Issuer and the owners of the Notes;(c)consult with bond counsel (as defmed
in the Tax Exemption Certificate);(d)pay to the United States,as necessary,such sums
of money representing required rebates of excess arbitrage profits relating to the Notes;
(e)file such forms,statements and supporting documents as may be required and in a
timely manner;and (f)if deemed necessary or advisable by its officers,to employ and
pay fiscal agents,financial advisors,attorneys and other persons to assist the Issuer in
such compliance.
Section 18.Amendment of Resolution to Maintain Tax Exemption.This
Resolution may be amended without the consent of any owner of the Notes if,in the
opinion of bond counsel,such amendment is necessary to maintain tax exemption with
respect to the Notes under applicable Federal law or regulations.
Section 19.Qualified Tax-Exempt Obligations.For the sole purpose of qualifying
the Notes as "Qualified Tax Exempt Obligations"pursuant to the Internal Revenue Code
of the United States,the Issuer designates the Notes as qualified tax-exempt obligations
and represents that the reasonably anticipated amount of tax exempt governmental
obligations which will be issued during the current calendar year will not exceed Ten (10)
Million Dollars.
Section 20.Repeal of Conflicting Resolutions or Ordinances.All ordinances and
resolutions and parts of ordinances and resolutions in conflict herewith are hereby
repealed.
PASSED AND APPROVED this 28th day of February,2011.
ATTEST:
-9-
ROLL CALL VOTE AYE NAY ABSENT ABSTAIN
Shane Blanchard X
Dan Dutcher X
Casey L.Harvey X
Darlene Stanton X
Mike Watts X
-10-