Resolutions-2018-005

AUTHORITY AND PURPOSE The General Obligation Annual Appropriation Fire Truck Acquisition Bonds, Series 2018A (the “Bonds” or the “Issue”) are being issued by the City of Tiffin, Iowa (the “City” or the “Issuer”) pursuant to Code of Iowa, Sections Section 384.24A and Chapter 76, as amended, as well as all other laws amendatory thereof and supplemental thereto, and in conformity with a resolution of the City authorizing and approving the Loan Agreement and providing for the issuance and securing the payment of the Bonds. Proceeds of the Bonds will be used to purchase a fire truck and to pay costs associated with issuance of the Bonds. SECURITY/SOURCES AND USES OF FUNDS Security The Bonds are payable from the City’s Debt Service Fund and the Bond Fund established in the Issuance Resolution, and other revenues and funds, to the extent lawfully available for such purpose, all of the foregoing subject to the annual right of non-appropriation reserved by the City in any fiscal year. The Debt Service Fund is solely funded from unlimited ad valorem taxes but the City may elect to abate the levy of unlimited taxes and the amount of any such abatement may be funded with other sources of City revenues lawfully applied for the payment of principal and interest on the Bonds. The Issuance Resolution will authorize an ad valorem tax levy for each future fiscal year for which an appropriation is made by the City Council in amounts necessary to retire the Bonds, when and as due, subject to the foregoing annual right of non-appropriation. A certified copy of the Issuance Resolution will be filed with the County Auditor of Johnson County, and upon appropriation by the City Council each year and certification by the City Administrator as provided in the Issuance Resolution, the County Auditor shall levy and assess the direct ad valorem tax in an amount equal to the amount so appropriated by the City Council and certified by the City Administrator. The Bonds do not constitute an obligation payable from a continuing annual levy of ad valorem taxes or a multiple fiscal year direct or indirect debt or other financial obligation of the City. The Bonds do not directly or indirectly obligate the City to make any payments thereon during a fiscal year beyond those for which funds have been appropriated by the City for such fiscal year for which the appropriation is made. The City has no payment obligations under the Bonds other than amounts appropriated for payments due in the current fiscal year. In the event that the City Council of the City does not budget and appropriate funds for any fiscal year in an amount sufficient to pay the principal of and interest due on the Bonds during such fiscal year, the City’s obligation under the Bonds shall terminate and become null and void on the last day of the fiscal year for which the necessary funds were appropriated. The principal of and interest on the Bonds are payable from funds on deposit in the Bond Fund to the extent appropriated therefore by the City Council and from other funds appropriated from time to time by the City Council for such purpose, all of which are pledged by the City to the payment of such principal and interest. The City Council is authorized, without further notice, hearing or other proceedings, to budget and appropriate Debt Service Tax Revenues and such other revenues of the City as may be lawfully applied for the payment of principal and interest on the Bonds to annually make the payments of the principal of and interest on the Bonds. The City presently intends to appropriate sufficient funds for each fiscal year to pay the principal of and interest due on the Bonds during such fiscal year; provided however, that this expression of current intent does not create and shall not be construed as creating a general, legal or enforceable obligation of the City to appropriate such funds for any fiscal year, and the decision to appropriate such funds for a fiscal year shall be made in accordance with the City Council’s normal procedures for making decisions, and the then current City Council shall have the final responsibility for making such decisions.