HomeMy WebLinkAbout1998-09-14-Resolutions 98-47_Cherry St Improvements 1997 - Warrant Maturity ExtendRESOLUTION NO.98-47 IExtendingtheMaturityDateofoutstandingWarrantspreviouslyissuedtopaycostsin
connection with the construction of the City's 1997 Street Improvements and Cherry Street
Improvements Project
WHEREAS,the City of Waukee,Iowa (the "City"),previously authorized the issuance of
warrants in the aggregate principal amount of $600,000 (the "Warrants")for the purpose of paying
costs in connection with the construction of its 1997 Street Improvements and Cherry Street
Improvements Project (hereinafter referred to as the "Project")bearing interest at the rate of 4.40%
per annum and scheduled to mature October 1,1998;and
WHEREAS,the City intends to refund the Warrants through the issuance of bonds or notes,
but the refunding proceeds will not be available to the City by October 1,1998;and
WHEREAS,the owner ofthe Warrants is in agreement to extend the maturity date of the
Warrants to April I,1999,upon the terms hereinafter set out;
NOW,THEREFORE,Be It Resolved by the City Council of the City of Waukee,Iowa,as
follows:
Section 1.The maturity date of the Warrants is hereby extended to April 1,1999.1
Accrued interest on the Warrants shall be paid on October,1 1998,and the Warrants shall continue
to bear interest at the rate of 4.40%per annum from October 1,1998,to their maturity.
Section 2.The City Council hereby reserves the right to prepay the amount represented
by the Warrants individually at any time prior to the maturity thereof with accrued interest to the date
of such payment,all as authorized by applicable laws ofthe State ofIowa,and as provided in the
Warrants.
Section 3.The Mayor and City Clerk are hereby authorized and directed to enter into
whatever legal documents are required by the owners of the Warrants to effectuate the provisions of
this resolution.
Section 4.It is the intention of the City that interest on the Warrants be and remain
excluded from gross income for federal income tax purposes pursuant to the appropriate provisions
of the Internal Revenue Code of 1986,as amended,and the Treasury Regulations in effect with
respect thereto (all of the foregoing herein referred to as the "Internal Revenue Code").In
furtherance thereof,the City covenants to comply with the provisions of the Internal Revenue Code
as they may from time to time be in effect or amended and further covenants to comply with
applicable future laws,regulations,published rulings and court decisions as may be necessary to
insure that the interest on the Warrants will remain excluded from gross income for federal income
tax purposes.Any and all of the officers of the City are hereby authorized and directed to take any
and all actions as may be necessary to comply with the covenants herein contained.J
The City hereby designates the Warrants as "Qualified Tax Exempt Obligations"as that term
is used in Section 265(b )(3)(8)of the Internal Revenue Code.
Section 5.Continuing Disclosure.The Securities and Exchange Commission (the "SEC")
has promulgated certain amendments to Rule 15c2-12 under the Securities Exchange Act of 1934
(17 C.P.R.§240.15c2-12)(the "RUle")that make it unlawful for an underwriter to participate in the
primary offering of municipal securities in a principal amount of$l,OOO,OOOor more unless,before
submitting a bid or entering into a purchase contract for the bonds,it has reasonably determined that
the issuer or an obligated person has undertaken in writing for the benefit of the bondholders to
provide certain disclosure information to prescribed information repositories on a continuing basis
or unless and to the extent the offering is exempt from the requirements of the Rule.
Section 6.All resolutions or parts of resolutions in conflict herewith be and the same are
hereby repealed,to the extent of such conflict.
Passed and approved September 14,1998.