Resolutions-2016-053

RESOLUTION NO. 2016-053 Resolution authorizing and approving a Loan and Disbursement Agreement and providing for the issuance and securing the payment of $2,296,000 Sewer Revenue Bonds, Series 2016 WHEREAS, the City of Tiffin (the “City”), in Johnson County, State of Iowa, did heretofore establish a Municipal Sanitary Sewer System (the “Utility”) in and for the City which has continuously supplied sanitary sewer service in and to the City and its inhabitants since its establishment; and WHEREAS, the management and control of the Utility are vested in the City Council (the “Council”), and no board of trustees exists for this purpose; and WHEREAS, pursuant to a resolution adopted and approved by the City Council on September 8, 1999 (the “Outstanding Bond Resolution”), the City previously issued its Sewer Revenue Bond, SRF Series 1999C, dated September 30, 1999 (the “Outstanding Bond”) a portion of which remain outstanding; and WHEREAS, pursuant to the Outstanding Bond Resolution, the City reserved the right to issue additional obligations payable from the Net Revenues of the Utility and ranking on a parity with the Outstanding Bond under the terms and conditions set forth in the Outstanding Bond Resolution; and WHEREAS, the City has heretofore proposed to contract indebtedness and enter into a certain Sewer Revenue Loan and Disbursement Agreement in a principal amount not to exceed $2,400,000 to provide funds to pay a portion of the costs, to that extent, of planning, designing and constructing improvements and extensions to the Utility (the “Project”), and has published notice of the proposed action and has held a hearing thereon on August 2, 2016; and WHEREAS, it is necessary at this time for the City Council to approve a certain Sewer Revenue Loan and Disbursement Agreement (the “Agreement”) with the Iowa Finance Authority, an agency and public instrumentality of the State of Iowa, as lender (the “Lender”) and to issue Sewer Revenue Bonds, Series 2016 (the “Bonds”) in evidence thereof in the principal amount of $2,296,000 in order to pay the costs of the Project; NOW, THEREFORE, Be It Resolved by the City Council of the City of Tiffin, Iowa, as follows: Section 1. It is hereby determined that the City shall enter into an Agreement with the Lender. The Agreement shall be in substantially the form as has been placed on file with the City and shall provide for a loan to the City in the amount of $2,296,000, for the purpose as set forth in the preamble hereof. The Mayor and City Clerk are authorized and directed to sign the Agreement on behalf of the City, and the Agreement is hereby approved.