Resolutions-2022-012

RESOLUTION NO. 2022-012 Resolution Authorizing and Approving a Loan and Disbursement Agreement, Providing for the Issuance and Securing the Payment of $486,000 Sewer Revenue Bonds, Series 2022, and Authorizing the related Reduction of the Interest Rate on the Sewer Revenue Bond, 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 “Series 2016 Bond Resolution”), the City has heretofore issued its $2,296,000 Sewer Revenue Bond, SRF Series 2016, dated September 30, 2016 (the “Series 2016 Bond”), portion of which remains outstanding; and WHEREAS, pursuant to a prior resolution of the Council (the “Series 2018 Bond Resolution”), the City has heretofore issued its $6,754,000 Sewer Revenue Bond, SRF Series 2018, dated May 11, 2018 (the “Series 2018 Bond”), a portion of which remains outstanding; and WHEREAS, pursuant to the Series 2016 Bond Resolution and the Series 2018 Bond Resolution (together sometimes referred to hereinafter as the “Outstanding Bond Resolutions”), the City reserved the right to issue additional obligations payable from the Net Revenues (as defined herein) of the Utility and ranking on a parity with the Series 2016 Bond and the Series 2018 Bond (together sometimes referred to hereinafter as the “Outstanding Bonds”) under the terms and conditions set forth in the Outstanding Bond Resolutions; and WHEREAS, the City will undertake the construction of certain water resource restoration projects (the “Projects”); and WHEREAS, pursuant to Section 384.84 of the Code of Iowa, the City has the authority to issue revenue bonds to pay for such qualifying water resource restoration projects; and WHEREAS, the Iowa Finance Authority (the “Lender”), as lender for the Series 2022 Bond, has agreed to provide financing for the Projects by decreasing the interest rate on the Series 2018 Bond and providing a 0% interest loan to the City for the Projects; and WHEREAS, pursuant to Section 384.24A of the Code of Iowa, the City has heretofore proposed to contract indebtedness and enter into a certain Sewer Revenue Loan and Disbursement Agreement (the “Agreement”) and to borrow money thereunder in a principal amount not to exceed $486,000, for the purpose of paying the cost, to that extent, of constructing the Projects, and has published notice of the proposed action and has held a hearing thereon on February 15, 2022; and