HomeMy WebLinkAboutRESOLUTION NO. 99-03-09-3 RairfaV419915-3/2nd Vz Hrg/Prelevy
RESOLUTION NO. 99-03-09-3
Authorizing a Loan Agreement and$500,000 General Obligation Corporate Purpose
Notes and providing for the levy of taxes to pay the same
-- WHEREAS,pursuant to the provisions of Section 384. 4 of the Code o Iowa-the City
Council (the "Council")of the City of Fairfax(the "City"),in the County of Linn, State of Iowa,has
heretofore proposed to contract indebtedness and enter into a loan agreement in a principal amount
not to exceed$500,000 (the "Loan Agreement") to provide funds to pay the cost,to that extent, of
the construction, reconstruction, improvement, extension and equipping of the Municipal
Waterworks System of•the City, and the construction of works and facilities useful for the collection.
and disposal of sewage and industrial wastes in a sanitary manner;
NOW, THEREFORE,Be It Resolved by the City Council of the City of Fairfax, Iowa, as
fellows:
Section 1. The City hereby determines to enter into the Loan Agreement with a lender
(the "Lender") to be selected in the future,providing for a loan to the City in the principal amount
of$500,000 for the purpose or purposes set forth in the preamble hereof.
Section 2. General Obligation Corporate Purpose Notes shall be issued in the principal
amount of$500,000 in evidence of the City's obligation under the Loan Agreement at the time such.
funds are needed.
The Notes shall bear interest, shall be payable as to principal and interest on the dates and
in the amounts, may be subject to prepayment prior to maturity and may contain such other terms
and provisions as shall be determined by the Council at the time the Notes are issued, and this
resolution shall then be amended to so provide.
Section 3. For the purpose of providing for the levy and collection of a direct annual tax
sufficient to pay the principal of and interest on the Notes as the same become due, there is hereby
ordered levied on all the taxable property in the City in each of the years while the Notes are
outstanding, a tax sufficient for that purpose, and in furtherance of this provision, but not in
limitation thereof,there is hereby levied on all the taxable property in the City the following direct
annual tax for collection in each of the following fiscal years,to-wit:
For collection in the fiscal year beginning July 1, 1999,
sufficient to produce the net annual sum of$32,386;
For collection in the,fiscal year beginning July 1, 2000,
sufficient to produce the net annual sum of$32,386,
For collection in the fiscal year beginning July 1, 2001,
sufficient to produce the net annual sum of$32,386;
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For collection in the fiscal year beginning July 1, 2002,
sufficient to produce the net annual sum of$32,386;
For collection in the fiscal year beginning July 1, 2003,
sufficient to produce the net annual sum of$32,386;
For collection in the fiscal year beginning July 1,2004,
sufficient to produce the net annual sum of$321:386,
For collection in the fiscal year beginning July 1, 2005,
sufficient to produce the net annual sura of$32,386;
For collection in the fiscal year beginning July 1, 2006,
sufficient to produce the net annual sum of$32,386;
For collection in the fiscal year beginning July 1, 2007,
sufficient to produce the net annual sum of$32,386;
For collection in the fiscal year beginning July 1, 2008,
sufficient to produce the net annual sum of$32,386,
provided,however,that at the time the Notes are issued,the actual tax levy amounts required to pay
the principal of and interest on the Notes in each year shall be determined based upon the interest.
rate or rates at which the Notes are issued, and this resolution shall be amended by resolution of the
Council to provide for such actual and necessary tax levy amounts.
Section 4. A certified copy of this resolution shall be filed with the County Auditor of
Minn County, and said Auditor is hereby instructed to enter for collection and assess the tax hereby
authorized. When annually entering such taxes for collection, the County Auditor shall include the
same as a part of the tax levy for Debt Service Fund purposes of the City and when collected,the
proceeds of the taxes shall be converted into the Debt Service Fund of the City and set aside therein
as a special account to be used solely and only for the payment of the principal of and interest on the
Notes hereby authorized and for no other purpose whatsoever.
Section 5. It is the intention of the City that interest on the Notes be and remain excluded
from gross income for federal income tax purposes pursuant to the appropriate provisions of the
]internal Revenue Code of 1986, as amended, and the Treasury Regulations in effect with respect
thereto (all of the foregoing herein referred to as the "Internal Revenue Code"). In furtherance
thereof,the City covenants to comply with the provisions of the Internal Revenue Code as they may
from time to time be in effect or amended and further covenants to comply with the applicable future
laws, regulations, published rulings and court decisions as may be necessary to insure that the
interest on the Notes will remain excluded from gross income for federal income tax purposes. Any
and all of the officers of the City are hereby authorized and directed"to take any and all actions as
may be necessary to comply with the covenants herein contained.
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Fairfax/419915-3/2nd V2 Hrg/Prelevy
The City hereby designates the Notes as "Qualified Tax Exempt Obligations" as that terra
is used in Section 265(b)(3)(B) of the Internal Revenue Code.
Section 6. All resolutions or parts thereof in conflict herewith be and the same are hereby
repealed to the extent of such conflict.
Passed and approved March 9, 1999.
Mayor
.fattest:
Marianne Wainwright
City Cler
a
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