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HomeMy WebLinkAbout26470-08.20.1979 RESOLUTION NO. 2 6 4 7 0 A RESOLUTION providing for the issuance of $1,735, 000 Corporate Purpose Bonds and providing for the levy of taxes to pay the same. WHEREAS it is necessary and for the best interest of the City of Waterloo, Iowa, and its inhabitants that certain streets be paved and other street improvements be constructed in said City and it is estimated that the cost of said paving and street improvements aggregates $745,000 and these improvements constitute an "essential corporate purpose" within the meaning of Section 384 .24 (3a) of the Code of Iowa, 1979, as amended, and it is proposed that the cost thereof be paid through the issuance of General Obligation Bonds of the City; and WHEREAS it is necessary and for the best interest for the City of Waterloo, Iowa, and its inhabitants that a certain bridge be constructed in said City and the estimated cost of such bridge construction is $30,000 and such construction constitutes an "essential corporate purpose" within the meaning of Section 384 .24 (3e) of the Code of Iowa, 1979, as amended, and it is proposed that the cost thereof be paid through the issuance of General Obligation Bonds of the City; and WHEREAS it is necessary and for the best interests of the City of Waterloo, Iowa, and its inhabitants that certain traffic control devices be acquired and installed in and for said City and the estimated cost of such traffic control devices is $150, 000 and the acquisition and installation thereof con- stitutes an "essential corporate purpose" within the meaning of Section 384 .24(3a) of the Code of Iowa, 1979, as amended, and it is proposed that the cost thereof be paid through the issuance of General Obligation Bonds of the City; and WHEREAS it is necessary and for the best interests of the City of Waterloo, Iowa, and its inhabitants that parks already owned by said City be improved and the estimated cost of such improvements will aggregate $100,000 and the improvement of parks already owned constitutes an "essential corporate purpose" within the meaning of Section 384 .24 (3o) of the Code of Iowa, 1979, as amended, and it is proposed that the cost thereof be paid through the issuance of General Obligation Bonds of the City; and WHEREAS it is necessary and for the best interests of the City of Waterloo, Iowa, and its inhabitants that real and personal property useful for the protection of property in said City from the effects of flood waters be acquired, constructed and improved and it is estimated that the cost thereof will aggregate $635, 000 and the acquisition, construction and improve- ment of such property constitutes an "essential corporate purpose" within the meaning of Section 384.24 (3i) of the Code of Iowa, 1979, as amended, and it is proposed that the cost thereof be paid through the issuance of General Obligation Bonds of the City; and WHEREAS the City of Waterloo, Iowa has established a transit system in and for said City; and WHEREAS said transit system constitutes a "city enter- prise" within the meaning of Section 384 .24 of the Code of Iowa, 1979, as amended; and WHEREAS it is necessary and for the best interest of the City of Waterloo, Iowa, and its inhabitants that said transit system be improved and equipped; and WHEREAS the improvement and equipping of said transit system constitutes a "general corporate purpose" within the meaning of Section 384 .24 (4a) of the Code of Iowa, 1979, as amended; and WHEREAS it is estimated that the cost of improving and equipping said transit system aggregates $75, 000, and it is -2- proposed that the cost thereof be paid through the issuance of General Obligation Bonds of the City; and WHEREAS the City of Waterloo, Iowa is a city having a population of more than five thousand and the amount of General Obligation Bonds of the City proposed to be issued to finance the cost of improving and equipping said transit system is not more than $75, 000; and WHEREAS under the provisions of Section 384 .28 of the Code of Iowa, 1979, as amended, any number of essential corporate purposes or general corporate purposes may be incorporated in a single issue of bonds and authorized pursuant to a single resolu- tion of the City Council; and WHEREAS a notice of the intention of this City Council to take action for the issuance of $1,660,000 Corporate Purpose Bonds to pay the cost of the paving of certain streets and the construction of other street improvements at an aggregate cost of $745, 000, the construction of a bridge at an aggregate cost of $30,000, the acquisition and installation of certain traffic control devices at an aggregate cost of $150,000, the improvement of parks already owned by said City at an aggregate cost of $100, 000, and the acquisition, construction and improvement of real and personal property useful for the protection of property in said City from the effects of flood waters at an aggregate cost of $635,000 has heretofore been duly published, and a public hearing has been held on the issuance of said Corporate Purpose Bonds and no oral or written objections have been filed or made; and WHEREAS a notice of the intention of the City Council to take action for the issuance of $75,000 Corporate Purpose Bonds to pay the cost of improving said transit system has heretofore been duly published, and a public hearing has been held on the -3- issuance of said Corporate Purpose Bonds and no petition has been filed and no oral or written objections have been filed or made; NOW, THEREFORE, Be It Resolved by the City Council of the City of Waterloo, Iowa, as follows : Section 1 . That pursuant to and as authorized by Sections 384 .23 et seq. of the Code of Iowa, 1979, as amended, there shall be and there is hereby ordered issued the negotiable Corporate Purpose Bonds of said City of Waterloo in the aggregate principal amount of One Million Seven Hundred Thirty-five Thousand Dollars ($1, 735,000 ) , said bonds to be three hundred forty-seven (347) in number, to be numbered consecutively from 1 to 347, inclusive, of the denomination of $5000 each, and to be dated August 1, 1979 . That the bonds of said issue shall bear interest from the date thereof at the rates hereinafter specified, such interest being payable May 1, 1980, and semiannually thereafter on the first days of November and May in each year until the principal thereof is paid. Said bonds shall be signed by the Mayor and attested by the City Clerk and the seal of said City affixed, and be registered as to issuance by the City Treasurer and a certificate of such registration endorsed thereon. Interest on said bonds shall be evidenced by coupons thereto attached and maturing on the several days when such interest matures, which coupons shall be executed with the facsimile signature of the City Clerk and said City Clerk, by the execution of said bonds, shall adopt as and for her proper signature her facsimile signature appearing on said coupons. Both principal and interest of said bonds shall be payable in lawful money of the United States of America at the office of the City Treasurer in and of the City of Waterloo, Iowa. Said bonds shall become due and payable in numerical order on May 1 of each of the respective years and shall bear interest at the rates as follows : -4- Year Amount Bond Numbers Rate of Interest 1981 $ 35,000 1 - 7 5.50% 1982 100, 000 8 - 27 5. 50% 1983 100,000 28 - 47 5.50% 1984 100, 000 48 - 67 5. 50% 1985 100, 000 68 - 87 5.50% 1986 100, 000 88 - 107 5. 50% 1987 100, 000 108 - 127 5.20% 1988 200, 000 128 - 167 5. 20% 1989 200,000 168 - 207 5.20% 1990 200, 000 208 - 247 5.25% 1991 500, 000 248 - 347 5.30% Section 2 . That each of said bonds be subject to regis- tration as to principal in the name of the holder on the books of the City Treasurer, such registration being noted upon each bond so registered, and after such registration payment of the principal thereof shall be made only to the registered holder. Any bond so registered, upon the request in writing of such holder personally or by attorney-in-fact, may be transferred either to a designated transferee or to bearer, and the principal of any bond so trans- ferred and registered to bearer shall thereupon be and become payable to bearer in like manner as if such bond had never been registered. Registration of any bonds as to principal shall not restrain the negotiability of the coupons thereto attached by delivery merely. Section 3 . That said bonds, coupons and provisions for registration be in substantially the following form: -5- (Form of Bond) UNITED STATES OF AMERICA STATE OF IOWA COUNTY OF BLACK HAWK CITY OF WATERLOO CORPORATE PURPOSE BOND No. $5000 KNOW ALL MEN BY THESE PRESENTS: That the City of Waterloo, in the County of Black Hawk and State of Iowa, for value received, promises to pay to bearer, or if this bond be registered as to principal, to the registered holder hereof, the sum of Five Thousand Dollars ( $5000) on the first day of May, 19_, with interest on said sum from the date hereof at the rate of per cent ( %) per annum, payable May 1, 1980, and semiannually thereafter on the first days of November and May in each year until said principal sum is paid, all such interest as may accrue on and prior to the maturity of this bond to be paid on presentation and surrender of the interest coupons hereto attached as they severally mature. Both principal and interest of this bond are payable in lawful money of the United States of America at the office of the City Treasurer in and of the City of Waterloo, Iowa. This bond is one of a series of bonds issued by the City of Waterloo pursuant to and in strict compliance with the provisions of Sections 384. 23 et seq. and Chapter 76 of the Code of Iowa, 1979, and all laws amendatory thereof and sup- plementary thereto, and in conformity with a resolution of the City Council of said City duly passed, approved and recorded, for various essential corporate purposes and general corporate purposes in said City. -6- It is Hereby Certified and Recited that all acts, conditions and things required by the laws and Constitution of the State of Iowa to exist, to be had, to be done, or to be performed precedent to and in the issue of this bond, were and have been properly existent, had, done and performed in regular and due form and time; that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within said City for the payment of the principal and interest of this bond as the same will respectively become due; that the faith, credit, revenues and resources and all the real and personal property of said City are irrevocably pledged for the prompt payment hereof, both principal and interest; and that the total indebtedness of said City, including this bond, does not exceed any constitutional or statutory limitations . This bond is subject to registration as to principal in the name of the holder on the books of the City Treasurer of said City, such registration to be evidenced by notation of said Treasurer on the back hereof, and after such registration no transfer hereof, except upon such books and similarly noted hereon, shall be valid unless the last registration shall have been to bearer. Registration hereof shall not affect the negotiability of the coupons hereto attached, which shall continue negotiable by delivery merely. IN TESTIMONY WHEREOF, said City, by its City Council, has caused this bond to be signed by its Mayor and attested by its City Clerk, with the seal of said City affixed, and the coupons hereto attached to be executed with the facsimile signature of said City Clerk, which official by the execution -7- of this bond does adopt as and for her proper signature her facsimile signature appearing on said coupons, all the first day of August, 1979. Mayor of the City of Waterloo, Iowa Attest: City Clerk of the City of Waterloo, Iowa -8- (Form of Coupon) No. $ On , 19_, the City of Waterloo, in Black Hawk County, Iowa, will pay to bearer Dollars ($ ) at the office of the City Treasurer, Waterloo, Iowa, for interest due that date on its Corporate Purpose Bond, dated August 1, 1979, No. (Facsimile Signature) City Clerk (Form for Registration of Ownership) Date of Name of Signature of Registration Registered Owner City Treasurer On the back of each bond there shall be endorsed a certificate of the City Treasurer in the following form: City Treasurer' s Certificate The issue of this bond has been duly and properly recorded in my office as of the first day of August, 1979. Treasurer of the City of Waterloo, Iowa Section 4. That said bonds be executed as herein provided as soon after the adoption of this resolution as may be and there- upon they shall be delivered to the Treasurer of said City, who shall register the fact of the issuance of same in a book provided for that purpose and shall deliver said bonds to the purchaser, as -9- determined by this Council, upon receipt of the purchase price, the same to be not less than the par value of said bonds plus a premium of $590, with accrued interest thereon, all action heretofore taken in connection with the sale and award of said bonds being hereby ratified and confirmed in all respects . Section 5. That the City certifies and covenants with the purchasers and holders of said bonds from time to time outstanding that, so long as any of said bonds remain outstanding, moneys on deposit in any fund or account in connection with said bonds, whether or not such moneys were derived from the proceeds of the sale of said bonds or from any other sources, will not be used in a manner which will cause such bonds to be "arbitrage bonds" within the meaning of Section 103 (c) of the Internal Revenue Code of 1954, as amended, and any lawful regulations promulgated or proposed thereunder, including Sections 1.103-13, 1.103-14 and 1 . 103-15 of the Income Tax Regulations, as the same presently exist, or may from time to time hereafter be amended, supplemented or revised. The City reserves the right, however, to make any investment of such moneys permitted by state law, if, when and to the extent that said Section 103 ( c) or regulations promulgated thereunder shall be repealed or relaxed or shall be held void by final decision of a court of competent jurisdiction, but only if any investment made by virtue of such repeal , relaxation or decision would not, in the opinion of counsel of recognized competence in such matters, result in making the interest on said bonds subject to federal income taxation. The Mayor or the City Clerk be and is hereby authorized and directed to execute and deliver, for and on behalf of the City, in connection with the delivery of said bonds to the purchaser thereof, such certificate or certificates as shall be appropriate to demonstrate that said bonds are not -10- arbitrage bonds . Section 6. That as required by Chapter 76 of the Code of Iowa, 1979, as amended, and for the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the interest on said bonds as it falls due, and also to pay and discharge the principal thereof at maturity, there be and there is hereby ordered levied on all the taxable property within said City a direct annual tax for each of the years while said bonds or any of them are outstanding, in amounts sufficient for that purpose, and that there be and there is hereby levied upon all the taxable property in said City the following direct annual tax, to-wit: In the year 1980 for collection in the fiscal year ending June 30, 1981, a tax sufficient to produce the sum of $196, 743 . 75 for principal and interest; In the year 1981 for collection in the fiscal year ending June 30, 1982, a tax sufficient to produce the sum of $190,500 for principal and interest; In the year 1982 for collection in the fiscal year ending June 30, 1983, a tax sufficient to produce the sum of $185, 000 for principal and interest; In the year 1983 for collection in the fiscal year ending June 30, 1984, a tax sufficient to produce the sum of $179,500 for principal and interest; In the year 1984 for collection in the fiscal year ending June 30, 1985, a tax sufficient to produce the sum of $174, 000 for principal and interest; In the year 1985 for collection in the fiscal year ending June 30, 1986, a tax sufficient to produce the sum of $168,500 for principal and interest ; In the year 1986 for collection in the fiscal year ending June 30, 1987, a tax sufficient to produce the sum of $163, 000 for principal and interest; In the year 1987 for collection in the fiscal year ending June 30, 1988, a tax sufficient to produce the sum of $257, 800 for principal and interest; In the year 1988 for collection in the fiscal year ending June 30, 1989, a tax sufficient to produce the sum of $247, 400 for principal and interest; -11- In the year 1989 for collection in the fiscal year ending June 30, 1990, a tax sufficient to produce the sum of $237, 000 for principal and interest; In the year 1990 for collection in the fiscal year ending June 30, 1991, a tax sufficient to produce the sum of $526, 500 for principal and interest ; A certified copy of this resolution shall be filed with the County Auditor of Black Hawk County and said Auditor shall be and is hereby instructed in and for each of the years 1980 to 1990, inclusive, to enter for collection and assess the tax hereby authorized. When annually entering said taxes for collection, the County Auditor shall include the same as a part of the tax levy for debt service fund purposes of said City, and when collected, the proceeds of said taxes shall be converted into the debt service fund of said City and set aside therein as a special account to be used solely and only for the payment of principal and interest of the bonds hereby authorized and for no other purpose whatsoever. That the principal or interest coming due at any time when there are insufficient funds on hand to pay the same be promptly paid when due from current funds on hand, and reimburse- ment be made to such current funds in the sums thus advanced when the taxes herein provided shall have been collected. Section 7 . That this resolution become effective imme- diately upon its passage and approval and that all resolutions or parts thereof in conflict herewith be and the same are hereby repealed to the extent of such conflict. Passed and approved August 20 , 1979. Mayor Attest: City Clerk Recorded August 21 , 1979. City Clerk -12-