Council Meeting Minutes 3-28-2022

Regular Meeting

                                                                                                March 28, 2022

 

                The Council for the City of Wilton, Iowa met in regular session in the Council Chambers at City Hall on Monday March 28, 2022.  Mayor Keith Stanley called the meeting to order at 6:00 PM and then led the group in the Pledge of Allegiance.  

Council Members present: Ted Marolf, Sheryl Lenker, Bill Voss, Steve Owens and Wayne Budding

 

 The agenda was presented for approval.  It was moved by Member Marolf seconded by Member Lenker that the agenda be approved as presented. The vote recorded as follows: Ayes: All   Nays: None   Motion Carried

 

The consent agenda was presented for approval. Items included were: Minutes from 03/14/2022, and Triple B payment application #5 for $51,243.95.   It was moved by Member Lenker seconded by Member Budding that the consent agenda be approved as presented. The vote recorded as follows: Ayes: All   Nays: None   Motion Carried 

 

REPORTS:

 

                Becky Allgood reported that they are hope to close on the remaining house by the end of March.  She also reported that she has received one application for the Downtown Grant program.

 

                Jeff Horne that we are going to have a structural engineer evaluate the pool building. We have also received some idea of usage of a rec center from the school and for youth sports.

 

                The City will be taking names for the Ash Tree program through April. We want to get as many people as possible in the contract.  We will discuss tree replacement options at a later date.

 

Jeff is working on an Emergency Plan for the Community Center & Library with  Community Center Director Tammy Shipp and Wilton Library Director Molly Garrett similar to the one that he did for the Convenience Center.

 

 The changes to recycling that we discussed will begin the week of April 11-15. We have put out information online and will be running an ad in the paper. 

 

Just a reminder to all that the Open House for 2022 sidewalk project will be on March 31 at 6 PM at City Hall. 

 

FORMAL MEETING:

 

RESOLUTION NO. 03282022A

 

A RESOLUTION ADOPTING THE ANNUAL

 BUDGET FOR THE FY 22/23

 

BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WILTON, IOWA:

 

The annual Budget for the FY 22/23 as set forth in the Budget Summary Certificate and in the Detailed Budget in support thereof showing the revenue estimates and appropriation expenditures and allocations to programs and activities for said fiscal year is adopted, and the Clerk is directed to make the filings required by law and set up the City books in accordance with the summary and details as adopted.

 

After due consideration, it was moved by Member Marolf seconded by Member Owens that the same be adopted.  The vote recorded as follows: Ayes: All   Nays: None   Motion Carried 

 

The Mayor then declared said Resolution 03282022A be adopted.  

Passed and approved this 28th day of March 2022


RESOLUTION NO 03282022B

 

Resolution authorizing a loan agreement and providing for the issuance of a General Obligation Corporate Purpose Bond, Series 2022A and providing for the levy of taxes to pay the same

 

WHEREAS, the City of Wilton (the “City”), in Muscatine County, State of Iowa proposes to enter into a General Obligation Sidewalk Improvement Loan Agreement (the “Loan Agreement”), pursuant to the provisions of Section 384.24A of the Code of Iowa, and to borrow money thereunder in a principal amount not to exceed $500,000 for the purpose of paying the costs, to that extent, of constructing sidewalk and related infrastructure improvements, and pursuant to law and duly published notice of the proposed action has held a hearing thereon on February 28, 2022; and

WHEREAS, the City Council has made provision and has authorized a term sheet (the “Term Sheet”) for use by Northland Securities, Inc. (the “Placement Agent”) in negotiating the Loan Agreement and providing for the private placement of a General Obligation Corporate Purpose Bond, Series 2022A (the “Bond”); and

WHEREAS, upon due consideration and advice from the Placement Agent, the proposal of DeWitt Bank and Trust Co., DeWitt, Iowa (the “Lender”) was determined to be the best, and the City has determined to enter into the Loan Agreement with the Lender; and

    WHEREAS, it is now necessary to make final provision for the approval of the Loan Agreement and to authorize the issuance of the Bond in evidence of the obligation of the City under the Loan Agreement;

 

NOW, THEREFORE, Be It Resolved by the City Council of the City of Wilton, Iowa, as follows:

 

Section 1.    The City shall enter into the Loan Agreement with the Lender in substantially the form as has been placed on file with the City Council, providing for a loan to the City in the principal amount of $500,000, for the purposes set forth in the preamble hereof.  

 

The Mayor and City Clerk are hereby authorized and directed to sign the Loan Agreement, together with such other documents that they (with advice from bond counsel) deem necessary to carry out the terms and directives of this Resolution, on behalf of the City, and the Loan Agreement is hereby approved.

 

Section 2.    The Bond is hereby authorized to be issued in evidence of the obligation of the City under the Loan Agreement in the aggregate principal amount of $500,000, and shall be dated as of the date of delivery to the Lender (anticipated to be April 12, 2022).  The Bond shall be issued as a single term Bond with final maturity on June 1, 2029, and with mandatory periodic principal installments due on June 1 in each of the years and in such amounts as follows:

Year

Principal
Amount

2024

$245,000

2025

$49,000

2026

$50,000

2027

$51,000

2028

$52,000

2029

$53,000

 

Section 3.    The City Clerk is hereby designated as the registrar and paying agent for the Bond and may be hereinafter referred to as the “Registrar” or the “Paying Agent.”

The Bond is subject to optional redemption, in whole or in part, on any date at a price of par plus accrued interest. 

 

Outstanding principal of the Bond shall bear interest at the rate of 1.95% per annum from the date of the Bond, or from the most recent date on which interest has been paid as hereinafter set forth. Accrued interest on the Bond shall be payable semiannually on the first day of June and December in each year, commencing on December 1, 2022, and continuing to and including final maturity on June 1, 2029. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months. Payment of interest on the Bond shall be made to the registered owners appearing on the registration books of the City at the close of business on the fifteenth day of the month next preceding the interest payment date and shall be paid to the registered owners at the addresses shown on such registration books. Principal of the Bond shall be payable in lawful money of the United States of America to the registered owners or their legal representatives upon presentation and surrender of the Bond at the office of the Paying Agent.

 

The Bond shall be executed on behalf of the City with the official manual or facsimile signature of the Mayor and attested with the official manual or facsimile signature of the City Clerk, and shall be fully registered Bond without interest coupons.  In case any officer whose signature or the facsimile of whose signature appears on the Bond shall cease to be such officer before the delivery of the Bond, such signature or such facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery.

The Bond shall be fully registered as to principal and interest in the names of the owners on the registration books of the City kept by the Registrar, and after such registration, payment of the principal thereof and interest thereon shall be made only to the registered owners or their legal representatives or assigns.  Each Bond shall be transferable only upon the registration books of the City upon presentation to the Registrar, together with either a written instrument of transfer satisfactory to the Registrar or the assignment form thereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner.

The record and identity of the owners of the Bond shall be kept confidential as provided by Section 22.7 of the Code of Iowa.

Section 4.    The Bond shall be in substantially the following form:

 

UNITED STATES OF AMERICA STATE OF IOWA
MUSCATINE COUNTY CITY OF WILTON

GENERAL OBLIGATION CORPORATE PURPOSE BOND, SERIES 2022A     $500,000

 

RATE

MATURITY DATE

BOND DATE

1.95%

June 1, 2029

April 12, 2022

   

        The City of Wilton (the “City”), in Muscatine County, State of Iowa, for value received, promises to pay in accordance with the provisions of this Bond to DeWitt Bank and Trust Co. DeWitt, Iowa or registered assigns, the principal sum of FIVE HUNDRED THOUSAND DOLLARS in lawful money of the United States of America upon presentation and surrender of this Bond at the office of the City Clerk, Wilton, Iowa (hereinafter referred to as the “Registrar” or the “Paying Agent”), with interest on the outstanding principal hereof, at the rate per annum specified above, from the date of this Bond, or from the most recent date on which interest has been paid.  Payment of accrued interest on this Bond shall be due semiannually on June 1 and December 1 of each year, commencing December 1, 2022, and continuing to and including final maturity on June 1, 2029.  Interest on this Bond will be calculated on the basis of a 360-day year comprised of twelve 30-day months.

This Bond (as herein defined) has been issued as a single term Bond with final maturity on June 1, 2029, and with mandatory periodic principal installments due on June 1 in each of the years and in such amounts as follows:

 

Year

Principal
Amount

2024

$245,000

2025

$49,000

2026

$50,000

2027

$51,000

2028

$52,000

2029

$53,000

 

Both principal of and interest on this Bond are payable to the registered owner appearing on the registration books of the City at the close of business on the fifteenth day of the month next preceding the payment date in lawful money of the United States of America to the registered owner at the address shown on such registration books; provided, however, that the final installment of principal and interest will be payable only upon presentation and surrender of this Bond to the Paying Agent.

This Bond is issued by the City pursuant to a resolution adopted dated March 28, 2022 (the “Resolution”) to evidence its obligation under a certain loan agreement, dated April 12, 2022 (the “Loan Agreement”), entered into by the City for the purpose of paying the costs, to that extent, of constructing sidewalk and related infrastructure improvements.

This Bond is issued pursuant to and in strict compliance with the provisions of Chapters 76 and 384 of the Code of Iowa, 2021, and all other laws amendatory thereof and supplemental thereto, and in conformity with the Resolution authorizing and approving the Loan Agreement and providing for the issuance and securing the payment of the Bond, and reference is hereby made to the Resolution and the Loan Agreement for a more complete statement as to the source of payment of the Bond and the rights of the owners of the Bond.

This Bond is subject to optional redemption, in whole or in part, on any date at a price of par plus accrued interest.

 

This Bond is fully negotiable but shall be fully registered as to both principal and interest in the name of the owner on the books of the City in the office of the Registrar, after which no transfer shall be valid unless made on said books and then only upon presentation of this Bond to the Registrar, together with either a written instrument of transfer satisfactory to the Registrar or the assignment form hereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner.

 

The City, the Registrar and the Paying Agent may deem and treat the registered owner hereof as the absolute owner for the purpose of receiving payment of or on account of principal hereof, premium, if any, and interest due hereon and for all other purposes, and the City, the Registrar and the Paying Agent shall not be affected by any notice to the contrary.

 

And It Is Hereby Certified and Recited that all acts, conditions and things required by the laws and Constitution of the State of Iowa, to exist, to be had, to be done or to be performed precedent to and in the issue of this Bond were and have been properly existent, had, done and performed in regular and due form and time; that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within the City for the payment of the principal of and interest on this Bond as the same will respectively become due; and that the total indebtedness of the City, including this Bond, does not exceed any constitutional or statutory limitations.

 

IN TESTIMONY WHEREOF, the City of Wilton, Iowa, by its City Council, has caused this Bond to be executed by its Mayor and attested by its City Clerk, all as of April 12, 2022.

 

Section 5.    The Bond shall be executed as herein provided as soon after the adoption of this resolution as may be possible, and thereupon they shall be delivered to the Registrar for registration and delivery to or on behalf of the Lender, upon receipt of the loan proceeds (the “Loan Proceeds”) and all action heretofore taken in connection with the Loan Agreement is hereby ratified and confirmed in all respects.  The Bond is anticipated to be delivered to the Lender on April 12, 2022.  In the event the closing cannot be accomplished on said date, the City Clerk, with advice from the Placement Agent and bond counsel, shall work with the Lender to select another suitable date, as close to the original date as possible.

A portion of the Loan Proceeds ($484,500) received from the sale of the Bond, shall be deposited into the Project Fund.

The remainder of the Loan Proceeds ($15,500) (the “Cost of Issuance Proceeds”), received from the sale of the Bond shall be used for the payment of costs of issuance of the Bond and to the extent that Cost of Issuance Proceeds remain after the full payment of the costs of issuance of the Bond, such Cost of Issuance Proceeds shall be transferred to the Debt Service Fund for the payment of interest on the Bond.

The City shall keep a detailed and segregated accounting of the expenditure of, and investment earnings on, the Loan Proceeds to ensure compliance with the requirements of the Internal Revenue Code, as hereinafter defined.

Section 6.    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 Bond as the same become due, there is hereby ordered levied on all the taxable property in the City the following direct annual tax for collection in each of the following fiscal years:

For collection in the fiscal year beginning July 1, 2022, sufficient to produce the net annual sum of $11,078;

For collection in the fiscal year beginning July 1, 2023, sufficient to produce the net annual sum of $254,750;

For collection in the fiscal year beginning July 1, 2024, sufficient to produce the net annual sum of $53,973;

For collection in the fiscal year beginning July 1, 2025, sufficient to produce the net annual sum of $54,017; 

For collection in the fiscal year beginning July 1, 2026, sufficient to produce the net annual sum of $54,042; 

For collection in the fiscal year beginning July 1, 2027, sufficient to produce the net annual sum of $54,048; and 

For collection in the fiscal year beginning July 1, 2028, sufficient to produce the net annual sum of $54,034. 

 

Section 7.    A certified copy of this resolution shall be filed with the County Auditor of Muscatine County, and the County 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 Bond hereby authorized and for no other purpose whatsoever.  

 

Pursuant to the provisions of Section 76.4 of the Code of Iowa, each year while the Bond remains outstanding and unpaid, any funds of the City which may lawfully be applied for such purpose may be appropriated, budgeted and, if received, used for the payment of the principal of and interest on the Bond as the same become due, and if so appropriated, the taxes for any given fiscal year as provided for in Section 6 of this Resolution, shall be reduced by the amount of such alternate funds as have been appropriated for said purpose and evidenced in the City’s budget.  

 

Section 8.    The interest or principal and both of them falling due in any year or years shall, if necessary, be paid promptly from current funds on hand in advance of taxes levied and when the taxes shall have been collected, reimbursement shall be made to such current funds in the sum thus advanced.

Section 9.    It is the intention of the City that interest on the Bond 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 Bond 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.

 

The City hereby designates the Bond as “Qualified Tax-Exempt Obligations” as that term is used in Section 265(b)(3)(B) of the Internal Revenue Code.

Section 10.    All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.

Section 11.    This resolution shall be in full force and effect immediately upon its approval and adoption, as provided by law.

After due consideration, it was moved by Member Marol seconded by Member Lenker that the same be adopted.  The vote recorded as follows: Ayes: All   Nays: None   Motion Carried 

 

The Mayor then declared said Resolution 03282022B be adopted.  

Passed and approved this 28th day of March 2022

 

 MAYOR REPORT

 

PROCLAMATION

 

WHEREAS, the City of Wilton will observe Junior Achievement Day on April 7, 2022, as an opportunity to recognize and celebrate Junior Achievement of the Heartland for empowering our young people to own their economic success. 

 

WHEREAS, Junior Achievement of the Heartland's educational contribution equips our young people to become the next generation of productive employees and self-sufficient citizens to ensure the economic prosperity of Wilton. 

 

WHEREAS, it is fitting for parents, educators, businesses and other members of the community to join in Junior Achievement's effort to ensure the future success and economic health of our young people and the communities in which they live.

 

NOW, THEREFORE, I, Keith Stanley, Mayor of Wilton, do hereby proclaim official recognition of April 7, 2022 as Junior Achievement Day in the City of Wilton 

 

                In other business Mayor Stanley reported that he was a judge for the Edible Book contest at the Wilton Library.  He said that he was impressed with all the entries and really enjoyed the contest. The library has some new exciting programs and events coming up. 

 

                 

 

COUNCIL REPORT

 

                Member Marolf wanted to remind everyone that the Alumni Banquet is scheduled for April 9th.   Tickets are still available but seating is limited.  He attended the High and Mighty Brass Band concert at the Wilton Library.  He really enjoyed the concert and urges everyone to check out the new events happening at the library.

 

               

BILLS

 

The Financial Statements were accepted and placed on file.  It was moved by Member Budding seconded by Member Owens that the total disbursements of $371,040.10 approved by the Finance Committee, be allowed and instruct the City Clerk to pay the same.  The vote recorded as follows: Ayes: All   Nays: None   Motion Carried 

 

   

 

No further business, this meeting was adjourned. 

 

 

                                                                                                _________________________________

                                                                                                Mayor Keith Stanley

Attest:

_________________________

City Clerk Kathryn Koele