HomeMy WebLinkAbout2016-01-18-Resolutions 16-024_Bonds - GO Refunding CLN Series 2016 - Accept Purchase ProposalRESOLUTION 16-024
RESOLUTION DIRECTING THE ACCEPTANCE OF A
PROPOSAL TO PURCHASE $279,990 GENERAL
OBLIGATION REFUNDING CAPITAL LOAN NOTES,SERIES
2016
WHEREAS,the City of Waukee,sometimes hereinafter referred to as the City,is a
municipal corporation duly incorporated,organized and existing under and by virtue of the
Constitution and laws of the State of Iowa;and
WHEREAS,it is deemed necessary that the City should enter into a Loan Agreement and
borrow the amount of $279,990 as authorized by Sections 384.24A and 384.25 Code of Iowa as
amended;and
WHEREAS,a proposal has been received from Charter Bank of Waukee,Iowa;and
WHEREAS,it is the intention of this City Council to enter into a Loan Agreement in
accordance with said proposal dated January 8,2016.
NOW THEREFORE,BE IT RESOLVED,BY THE CITY COUNCIL OF THE CITY
OF WAUKEE,STATE OF IOWA:
Section 1.That this City Council does hereby accept the attached proposal of Charter
Bank of Waukee,Iowa,and takes additional action to permit the entering into of a Loan
Agreement.
Section 2.The Mayor and City Clerk are authorized and directed to proceed on behalf of
the City to enter into such Loan Agreement,to negotiate the final terms of a Loan Agreement to
take all action necessary to permit the entering into of a Loan Agreement on a basis favorable to
the City and acceptable to the Purchaser,and to proceed to meet the conditions of this accepted
proposal.
PASSED AND APPROVED this 18"day of January,2016.
yor
ATTEST:
City Clerk
(Attach Copy of Terms of Proposal)
ROLL CALL VOTE
Shane Blanchard
Brian Harrison
Shelly Hughes
Larry R.Lyon
Rick Peterson
AYE
X
X
X
X
NAY ABSENT ABSTAIN
X
Januarv g.2016
City of Waul ce
i'vlr.Tim Mocrma;i.Cit5 danae«r
230 V
'Hickman Road
Waukee.IA 50263
Denim Vlr.'vloerman:
Thanl vou for your continued bankin relationship with Charter Banlc As you know.wc moditied the GO
and Revenue nous on tihe golf course in 2015 to extend bot!i notes For 2 yem's and reduce thc inttmest rates
by 0.25%.At thc time of modification.the anticipation For both notes were to revisit the continued tax
cxcinpt status in 2016 based on the amount ofbank qualifed debt issued by the City.Based on our
undcrstandin that we can extend the loans out For a longer period ol'time and keep the tax exempt statua
we a rce to reduce rhe interns;rams down tumher to thea„reed upon amount horn our meetin in 2015.
Thc encrai terms and conditions arc as I'allows:
TERM 'NOTE"I:Rcvcnue Bond
Original Loan Amount:
Current Principal Balance:
Accrued interest thru 2/19/16:
i'rlaturity Date:
Current Pavment Schedule:
$925.000.00
$57 .339.13
$4,$07.65
June I.2017
Scliii-annual installmclits of $36,937.51 due on June I"and
Deccmbm I'beginning 12/lr2015 with final payment ol'all
remaining principal and interest duc on 6/I '2017.Payments
based upon a 10 year amotxization svith a 2 year balloon.
c'lv Intel'cst Riitlu
Colhtteral:
Prcpaynieat Penalty:
Extended isilaturity Date:
Extended Paynient Schedule:
3.50%tax-«xcmpt rate
Vxights against the revenue proi'its generated by Sugar Creek
Golf Course operations and cash reserve account held at
Clmrtcr Ban.L.
None
Dccembcr I,2020
Semi-annual insiallmems of$35,399.2S due on June I"and
Dcccmbcr I"be innin 6/I/2016 with linal payment oFall
rcmainin principal and interest duc on 12/I/'i020.Payments
based upon a remainin ~9.5 yca;amotzization with a 5 year
balloon.
TERM»'OTE"2:General Ooligation iviotc
Original Loan Amount:
Current Principal Balance:
Accrued Interest thru 2/19/16:
iVIaturity Date:
Current Payment Schc&lule:
$700.000.00
$279.9S9.6-'I
$1,959,93
Junc I,2017
Semiannual installments oi $33925 Ig due on Junc I'and
Dcc«mber I"b«innin ~12/I/2015 with tinal payment oFall
rcmainin principal and intcrcst duc on 6'I '2017.Pavments
bas«d upon a 5 year amortizaiion with a 2 year balloon.
If n,r.,',ii u w -'..5 .::".Srx:::,I'.O,lk x 55,'
:"wic"61
is .I i )
iNew Interest Rate:
Co I la tera k
Prepayment Penalty:
Extcndcd ivtaturity Date:
Extended Payment Schedule;
2.75%tax-exempt raic
None
No l)c
Junc l.2020
Semi-annual installments oi533.0$9.55 duc on June I"and
December I"beginning 6'I/20 i 6 with tinal payment of all
remaining principal and interest due on 6/I.'2020.Payments
based upon a remaining -'.5 year amortization.
Conditions of thc Commitment:
The Banl shall have received such other instruments.documents,and opinions as Bank shall reasonably
require to evidence and secure the loan and to comply with the provisions hcrcof and thc requiremeitts ot
rc ulatory authoritics to which the bank is subject.Included in other documents:
I.Cop of thc 4Vaukcc City Council istecting minutes showing the approval and acceptance of
said fin.nein terms.
2.Corporat'resolution desi nating who has tike authority to si n the promissory notes antUor
note modifications to bind thc City of Waukec.
3.In order to qualify For the tax exempt note.Chaitcr Bank requires an opinion loner from dte
City Attorney anting said loan will qualify as a tax-exmnpt loan asset For the beni in
accordance with the inmrnal revenue service code.
-'i.Subject to the r ceipt and review oi'copies of the Gmicral Obligation Note and Revcnuc Note
by Charter Banl le al counsel prior to cxccution.
The intent ot'this letter is to communicate the uencra!terms and conditions of the refinancing of existing
notes m rhc City ot'Waukee.Additional loan covenants.agrecmenrs.and conditions considered to be
smndard for a loan to a municipality will be required as part of the final loan documentation and closing.
This summarizes our financin proposal for you.Please Ict mc know of any questions or comments that
you might have regarding this proposal.Once the proposal is acceptable to you.v e ask.Chat you indicate
by si ning below and rctuniin the original copy of this letter to us.
Sincerely,
Grc 'Grom
Vice President
Accepted on this l~day of ll~M,2016
N
)ates 01/08/2016'Ch aviv Bank Page 1
'unding Date:02/19/2016
'irst Payment Date:06/01/2016
Compounding:U.S.Rule Principal:279,989.64
Period:30/360 Initial Interest Rate:0.000'/
Pmt Scdedule:Semi-Annually Interest Rate:2.750'/o
Pmt Amount:33,089.55
'ayment Payment
lumber Date
Payment
Amount
Interest Principal Outstanding
Amount Reduction Balance
Equity
Built
1 06/01/2016
2 12/01/2016
3 06/01/2017
4 12/01/2017
5 06/01/2018
6 12/01/2018
7 06/01/2019
8 12/01/2019
9 06/01/2020
$33,089.55
$33,089.55
$33,089.55
$33,089.55
$33,089,55
$33,089.55
$33,089.55
$33,089.55
$33,089.55
2,160.20
3,424.58
3,016.69
2,603.18
2,1 84.00
1,759.04
1,328.25
891.53
448.81
30,929.35
29,664.97
30,072.86
30,486.37
30,905.55
31,330.51
31,761.30
32,198.02
32,640.74
249.060.29
219,395.32
189,322.46
158,836.09
127,930.54
96,600.03
64,838.73
32,640,71
-.03
$30,929.35
$60,594.32
$90,667.18
$121,153.55
$152,059.10
$183,389,61
$215,150.91
$247,348.93
$279,989,67
2020 Totals:
Grand Totals:
297,805,95 17,816,28 279,989.67
297,805.95 17,816.28 279,989.67
iris amonisarion sclredule ls provided w you for your convenience.Tire amonlearion may include arri marar based upon irrfornrarion provided by you.Ac@ra/rermr of
edir offered by us may varyfronr rbis amonirarion sciredule.rbe ourrranding balance skown abave will vary from your acmal ouurunding babrnce owed ro lire Bank
scausc ofrlre timing ofpay meum
Page 1 of 1
CHAPTER BANK
5526 NW 86TH ST
)OHNSTON,IOWA 50131
CITY OF WAUKEE
230 W HICKMAN RD
WAUKEE IA 50263-5004
Loan Payoff Statement:
Loan Payoff'I'or:
CITY OF WAUKEE
230 W HICKMAN RD
WAUKEE IA 50263-5004
Loan Number:
Date Quoted;
Payoff Good To:
Method:
4000500863
)an 08,2016
Feb 19,2016
6/2
Collateral:REFI GENERAL OBLIGATION GOLF COURSE NOTE tf-441857
Principal:
Interest To Feb 19,2016:
Net Amount Due:
$279,989.64
$1 959.93
$281,949,57
Additiona)Information
One Day's Interest:$27,22
https://mwranav.fmwrdc.corn/CLC CLC1151/CLC1151.aspx?&Action=PAYOFF STATE...1/8/2016