Resolutions-2018-042

RESOLUTION NO. 2018-042 Resolution authorizing and approving a Loan and Disbursement Agreement and providing for the issuance and securing the payment of $6,754,000 Sewer Revenue Bonds, Series 2018 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 prior resolution of the Council, the City has heretofore issued its $521,315 Sewer Revenue Bond, SRF Series 1999C, dated September 30, 1999 (the “Series 1999C Bond”), a portion of which remains outstanding; and WHEREAS, pursuant to a prior resolution of the Council, the City has heretofore issued its $2,296,000 Sewer Revenue Bond, SRF Series 2016, dated September 30, 2016 (the “Series 2016 Bond”), a portion of which remains outstanding; and WHEREAS, pursuant to the resolutions (the “Outstanding Bond Resolutions”), authorizing the issuance of the Series 1999C Bond and the Series 2016 Bond (together, the “Outstanding Bonds”), 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 Bonds under the terms and conditions set forth in the Outstanding Bond Resolutions; and WHEREAS, the City has heretofore proposed to contract indebtedness and enter into a certain Sewer Revenue Loan and Disbursement Agreement (the “Agreement”) in a principal amount not to exceed $6,754,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose of paying the cost, to that extent, of planning, designing and constructing improvements and extensions (the “Project”) to the Utility, and pursuant to law and a notice duly published, the City Council has held a public hearing thereon on May 1, 2018; and WHEREAS, it is necessary at this time for the City Council to approve 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 2018 (the “Bonds”) in evidence thereof in the principal amount of $6,754,000 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 the 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 (the “Loan”) to the City in the amount of $6,754,000, for the purpose as set forth in the preamble hereof.