City will declare intent to issue debt

By Danica Baker
Herald Staff Writer

November 13, 2007 10:30 am

— CLINTON — The Clinton City Council tonight could approve a resolution declaring the city’s intent to issue debt to reimburse the city for expenditures paid in connection with specified projects.
U.S. Department of Treasury Regulation 1.150-2 governs the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse cities for project expenditures paid by the prior to the date of issuance of the bonds. Those regulations require the city to adopt a statement of official intent to reimburse an original expenditure.
The resolution declares an intent to issue debt in relation to the 13th and 15th Avenue North, 22nd Avenue North and Fifth Avenue South sewer separation projects, as well as pump station flow-metering and bar screen replacement projects. The total estimated cost of the five projects is $10,276,000, although grants and other contributions could reduce the amount of borrowing required. The resolution states borrowing a total of $9.8 million is anticipated. The estimated date of completion for the projects is June 2008.
Later, the council will consider a resolution fixing a date for a meeting on the authorization of a loan and disbursement agreement and the issuance of not to exceed $9.9 million sewer revenue capital loan notes of the city and providing for publication of notice thereof. The resolution would allow the city to obtain a loan through the Iowa Sewage Treatment Works Financing Program. The Iowa Finance Authority has agreed to purchase the city’s Sewer Revenue Capital Loan Notes and has requested that the notes be issued as a single note. The agreement and note would be payable solely out of the net earnings of the municipal sewer system and be a first lien on the future net earnings of the utility.
The council will discuss the proposed authorization during a public hearing at 7 p.m. Nov. 27 in the council chambers at Clinton City Hall. The funds would pay the costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the municipal sewer system.
The council will begin tonight’s council meeting by holding a public hearing concerning the plans, specifications, form of contract and estimate of cost for the 26th Avenue North sewer project. According to the resolution, five sealed bids were opened on Oct. 30 and ranged from $66,519.50 to $104,533.50. If approved, the resolution would award the contract to Eastern Iowa Excavating and Concrete at a cost of $66,519.50.
The Clinton City Council could approve the first consideration of an ordinance that would amend the City Housing Partnership Urban Renewal Area and continue to funnel property taxes received within that area into a special fund.
The ordinance would amend current ordinance 2082, approved by resolution on Feb. 25, 1997, which provides for the division of taxes within the Urban Renewal Project Area by adding additional territory. The ordinance directs property taxes into a special tax increment fund for payment of principal and interest on loans, indebtedness or bonds incurred by the city in connection with the Amended Housing Partnership Urban Renewal Redevelopment Project.
The council also will consider resolutions:
n waiving the purchasing policy and accepting a proposal for a computer software upgrade for the Department of Parks and Recreation;
n declaring support of a joint 28E Agreement for a Clinton/Camanche Wastewater Treatment District;
n approving a budget appropriation of $400 to the Clinton Police Department from the OWI Restitution Fund for the repair of an in-car camera; and
n authorizing the installation of stop signs for eastbound and westbound traffic at 27th Avenue North and 11th Street, for southbound traffic at North 12th and North 13th streets at 27th Avenue North, for eastbound traffic at 26th Avenue North and 11th Street and for North 10th Street at 25th Avenue North.