HomeMy WebLinkAbout2019-10-21-Resolution 19-397_Bonds, GO CLN Golf Cart Purchase, Accept Proposal to PurchaseRESOLUTION NO. 19-397
RESOLUTION DIRECTING THE ACCEPTANCE OF A
PROPOSAL TO PURCHASE $125,000 GENERAL
OBLIGATION CAPITAL LOAN NOTES, SERIES 2019C
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 $125,000 as authorized by Sections 384.24A and 384.26, Code of Iowa as
amended; and
WHEREAS, proposals have been requested and received from financial institutions
offering to enter into such Loan Agreement; and
WHEREAS, after a review of all the proposals received, it has been determined that the
best and most favorable proposal is that of Charter Bank of Waukee, IA; and
WHEREAS, it is the intention of this City Council to enter into a Loan Agreement in
accordance with said proposal dated October 15, 2019.
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, IA, and takes additional action to permit the entering into of a Loan
Agreement.
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 21" day of October, 2019.
Mayor Pro Tern
ATTEST:
L�&�'o - Aadm��
Clerk
-2-
RESULTS OF VOTE: AYE NAY ABSENT
Anna Bergman X
R. Charles Bottenberg X
Courtney Clarke X
Shelly Hughes X
Larry R. Lyon X
(Attach Copy of Terms of Proposal)
ABSTAIN
:RJ1111 CHARTE
i
October 15, 2019
City of Waukee PFM Financial Advisors, LLC
230 W Hickman Road 801 Grand Avenue
Waukee, IA 50263 Des Moines, IA 50309
RE: Financing Proposal to the City of Waukee for General Obligation Capital Loan Note
Dear Linda and Jon,
Thank you for giving Charter Bank the opportunity to submit a proposal to you to finance the
General Obligation Capital Loan related to the golf course. This letter serves as an outline of our
financing proposal. The general terms and conditions are as follows:
Borrower: City of Waukee
Loan Amount: $125,000.00
Purpose: Funds to pay the costs of equipping of golf courses including the
purchase of golf carts.
Loan Term: 5.5 year term note with payments due semiannually beginning 6/l/2020
and on the I" day of June and December thereafter.
Interest Rate: Fixed at 2.25% with tax-exempt status.
Payment: Estimated semi-annual payment amount of $12,165.79 (based on funding
date of I l/19/2019 and first payment due date of 6/l/2020).
Prepayment Penalty: None
Other: The Bank 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 hereof
and the requirements of regulatory authorities to which the bank is subject. Other documents
include:
1. Copy of the Waukee City Council Meeting minutes showing the approval for the
General Obligation Capital Loan and approved financing terms.
2. Corporate resolution designating who has the authority to sign the promissory note to
bind the City of Waukee.
3. In order to qualify for the Tax -Exempt Note, Charter Bank requires an opinion letter
from the City Attorney stating said loan will qualify as a tax-exempt loan asset for
the bank in accordance with the Internal Revenue Service code.
The intent of this letter is to communicate the general terms and conditions of the General
Obligation Capital Loan Note proposed to the City of Waukee. Additional loan covenants,
agreements, and conditions considered to be standard for the GO to a municipality will be
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(515) 331-2265 (515) 986-2000 (515) 987-1000 515) 446-2265
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CharrerKinkencom
This summarizes our financing proposal for you. Please let me know of any questions or
comments that you might have regarding this proposal. If the proposal is acceptable by you,
please indicate by signing below and returning the original copy of this letter to us. Thank you
again for the opportunity to submit a proposal to you. We look forward to hearing back from you
soon!
Sincerely,
All�
Greg Grote
Senior Vice President
Accepted on this _ ---day of , 2019
M.
Date: 10/15/2019 Charter Bank Page 1
Funding Date:
11/19/2019
Compounding:
U.S. Rule
Principal:
125,000.00
First Payment Date:
06/01/2020
Period:
Actual/360 Initial
Interest Rate:
0,000%
Pmt Schedule:
Semi -Annually
Interest Rate:
2.250%
Pmt Amount:
12,165.79
* Escrowed Interest
Payment
Payment
Payment
Interest
Principal
Outstanding
Equity
Number
Date Days
Amount
Amount
Reduction
Balance
Built
12/01/2019
12
93.75
-93.75*
125,000.00
1
00,101/2020
183
$12,165.79
1,429.69
10,642.35
114,357.65
$10,642.35
2
12/01/2020
183
$12,165.79
1,307.97
10,857.82
103,499.83
$21,500.17
3
06,101 /2021
182
$12,165.79
1,177.31
10,988.48
92,511.35
$32,488.65
4
12,101/2021
183
$12,165.79
1,058.10
11,107.69
81,403.66
$43,596.34
5
06/01/2022
182
$12,165.79
925.97
11,239.82
70,163.84
$54,836.16
6
12/01/2022
183
$12,165.79
802.50
11,363.29
58,800.55
$66,199.45
7
06/01/2023
182
$12,165.79
668.86
11,496.93
47,303.62
$77,696.38
8
12/01/2023
183
$12,165.79
541.04
11,624.75
35,678.87
$89,321.13
9
06/01/2024
193
$12,165.79
408.08
11,757.71
23,921.16
$101,078.84
10
12/01/2024
183
$12,165.79
273.60
11,892.19
12,028.97
$112,971.03
11
06/01/2025
182
$12,165.79
136.83
12,028.96
.01
$124,999.99
2025
Totals:
133,823.69
8,823.70
124,999.99
Grand Totals:
133,823.69
8,823.70
124,999.99
This amortization schedule is provided to you for your convenience. The amortization may include estimates based upon information provided by you Actual terms of
credit offered by us may vary from this amortization schedule. The outstanding balance shown above will varyfrom your actual outstanding balance owed to the Bank
because of the timing ofpayments.