Pella Chronicle

Local News

February 1, 2014

$3.5 million Electric Revenue Capital Loan Notes discussed

Pella — The Pella City Council approved several resolutions last week in relation to the $3,500,000 Electric Revenue Capital Loan Notes, Series 2014.

On January 7, 2014, the City Council received bids and directed the sale of Electric Revenue Capital Loan Notes, Series 2014 in the amount of $3,500,000 to D.A. Davidson & Co. of Denver, Colorado. It is important to note, the true interest cost for the bond sale to D.A. Davidson was 2.44% over a ten year term. Equally important to note, the proceeds from the Notes will be used to fund improvements to the municipal electric utility. This includes demolition of the existing power plant, acquisition and installation of control systems upgrade for the diesel plant, conversion of a portion of the electrical overhead distribution system to an underground distribution system, construction of the underground distribution system and related site improvements.

In order to facilitate the bond sale to D.A. Davidson, the City Council  needed to approve the following items:

-Appointing Bankers Trust as Paying Agent, Note Registrar, and Transfer Agent

This resolution appoints Bankers Trust Company of Des Moines as paying agent, note registrar and transfer agent and authorizes the Mayor and City Clerk to sign the Agreement with Bankers Trust on behalf of the City. As background, this agreement is necessary to comply with the requirements for governing the registration, transfer and payment of registered notes. It is important to note, the term of this agreement is over the life of the bond issue; however, it can be canceled by either party via a ninety day notice. In addition, the annual fee charged by Bankers Trust for these services is $500.

-Approval of Tax Exemption Certificate

The Tax Exemption Certificate sets out in detail a number of facts, promises and obligations which must be met and agreed to by the City in order to maintain these Notes as tax exempt. These requirements primarily include arbitrage requirements for the bond proceeds and restrictions for private duty use. It is important to note, staff has reviewed these requirements with legal counsel and we are recommending approval of the tax exemption certificate.

-Approval of Continuing Disclosure Certificate

The Continuing Disclosure Certificate requires the City to provide annual financial information and operating data to certain information repositories so long as the Notes are outstanding. In addition, the City is also obligated to provide notice to the repositories if certain material events occur which could impact the Municipal Electric Utility's ability to pay the principal and interest on the Notes. Potential material events include the following items:

1. Bond payment delinquencies or other material non-payment related defaults.

2. Unscheduled draws on debt reserve funds.

3. Adverse bond tax-exempt opinions issued by the IRS.

4. Bond rating changes.

5. Modifications to the rights of the bond holders.

-Approving Form of Loan Document and Authorize Issuance of $3,500,000 in Electric Revenue Capital Loan Notes, Series 2014.

This resolution approves the terms and conditions for a Form of Loan Document and authorizes the issuance of $3,500,000 in Electric Revenue Capital Loan Notes, Series 2014.

Text Only
Local News
  • Tulip Time schedule

    Tulip Time is just around the corner. Here's the complete schedule for events.

    April 23, 2014

  • Central College hosts STEM fest and town hall meeting with lieutenant governor

    April 22, 2014

  • Store front compressed.jpg The Mango Tree opens tomorrow in Pella

     Located at 720 Main St.

    April 21, 2014 1 Photo

  • 0422 Eagle photo On a wing and a prayer

    LAKE RED ROCK — Protective gloves aren’t uncommon when dealing with a sick patient, though they’re not usually heavy, leather welder’s gloves. But, then, the patient usually doesn’t have toenails designed to puncture flesh. Or a sharp beak. Diane Mas

    April 19, 2014 1 Photo

  • Live entertainment slated for Tulip Time This year's line-up for Festhouden, which will begin at 7 p.m. each evening of Tulip Time, has been announced. Festhouden will take place on the Tulip Toren located on the south side of Pella's square. Grandstand tickets for Festhouden and the evenin

    April 16, 2014

  • Vermeer award photo Vermeer receives consecutive NAEDA Dealer's Choice Award Recently, the North American Equipment Dealers Association (NAEDA) released its annual Dealer-Manufacturer Relations Survey and Dealer's Choice Awards. For the second consecutive year, Vermeer Corporation was awarded "Dealer's Choice" in the Ag/ Shor

    April 16, 2014 1 Photo

  • South Central Regional audit released Van Maanen, Sietstra & Meyer, PC, Certified Public Accountants recently released an audit report on the South Central Regional Airport Agency, Pella, Iowa. The Agency's revenues totaled $81,986 for the year ended June 30, 2013, the first year of the

    April 16, 2014

  • Eagle photo Bald eagle program, release at Lake Red Rock April 19 Come to Red Rock Visitor Center at 3 p.m. on Saturday, April 19, to learn about eagles in Iowa and why we’re still talking about the impacts of lead on wildlife and people. Helping with the program will be Thora, SOAR’s education ambassador eagle. Co

    April 16, 2014 1 Photo

  • Easter2 Easter Egg Hunt The annual Pella Easter Egg Hunt was held Saturday, April 12 in Central Park. Nice weather greeted children of all ages for the event. The Easter Egg Hunt was sponsored by Kiwanis and the Community 1st Credit Union. More photos on Page 8. (Photos by

    April 16, 2014 2 Photos

  • Patient advocate - Helping surgery patients navigate insurance maze The rules of insurance are always changing and are frequently challenging for patients to understand. At Pella Regional Health Center, new positions have been added to help patient be informed and understand the financial impact of surgical procedur

    April 16, 2014

AP Video
Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' Obama to Oso: We'll Be Here As Long As It Takes Bon Jovi Helps Open Low-income Housing in Philly Pipeline Opponents Protest on National Mall Hagel Gets Preview of New High-tech Projects S.C. Man Apologizes for Naked Walk in Wal-Mart New Country Music Hall of Fame Inductees Named 'Piles' of Bodies in South Sudan Slaughter SCOTUS Hears Tv-over-Internet Case Chief Mate: Crew Told to Escape After Passengers Iowa College Finds Beauty in Bulldogs
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide