09/14/2015 Special Meeting
FRIEND CITY COUNCIL
MINUTES-SPECIAL MEETING
SEPTEMBER 14, 2015
Mayor Vossler called the special meeting of the City Council to order at 5:00 p.m. at the City Hall. Advanced notice of the meeting was given by publication in The Sentinel, the appointed method for giving advanced notice. All proceedings shown were taken while the meeting was open to the attendance of the public.
Mayor James Vossler presided and City Clerk Debbie Gilmer recorded the proceedings. The following Councilmembers were present: Stan Krause, Shane Stutzman, Phyllis Ryan and Harlan Schrock. A quorum being present and the meeting duly convened, the following proceedings were had and done.
As required by the Nebraska Open Meetings Act, Mayor Vossler announced that a copy of the Nebraska Open Meetings Act has been posted on the south door of the City Hall meeting room for all in attendance to review.
Motion was made by Schrock, seconded by Stutzman, to open the public hearing to receive comments relating to the property tax request for 2015-2016, and to receive comments relating to the proposed 2015-2016 budget. On roll call voting aye, Krause, Ryan, Stutzman, Schrock. Nays none. Motion carried. Public hearing opened at 5:02 p.m.
Mayor Vossler announced that public comments would be received at this time. No comments were offered.
Discussion was had regarding Ordinance #15-743 that was adopted at the September 1st meeting. Mayor Vossler explained that the Citizens Bank had requested that the principal amount reflected in this ordinance for the Warren Memorial Hospital note be amended. The amended ordinance would read “maximum principal amount of $319,333.98 to provide financing for certain operating expenses of Warren Memorial Hospital”, rather than $93,369.28. Proposed Amended Ordinance #15-743 was read by title by Mayor Vossler. (See copy of amended Ordinance #15-743 below.)
Councilman Krause moved that the statutory rule requiring reading on three different days be suspended. Councilman Stutzman seconded the motion to suspend the rules and upon roll call, voting on the motion was as follows: Members voting aye, Ryan, Stutzman, Schrock, Krause. Members voting nay, none. The motion to suspend the rules was adopted by at least three-fourths of the Council and the statutory rule was declared suspended for consideration of the proposal to amend Ordinance #15-743.
ORDINANCE NO. 15-743
AMENDED 09/14/2015
AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF A TAX ANTICIPATION NOTE OF THE CITY OF FRIEND, NEBRASKA IN THE MAXIMUM PRINCIPAL AMOUNT OF $319,333.98 TO PROVIDE FINANCING FOR CERTAIN OPERATING EXPENSES OF WARREN MEMORIAL HOSPITAL; PRESCRIBING THE FORM AND DETAILS OF THE NOTE; COVENANTING TO PAY SUCH NOTE FROM THE REVENUES OF WARREN MEMORIAL HOSPITAL AND, IF NECESSARY, TO LEVY TAXES IN AMOUNTS SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST ON THE NOTE; PROVIDING FOR THE PUBLICATION OF THIS ORDINANCE IN PAMPHLET FORM AND RELATED MATTERS
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF FRIEND, NEBRASKA:
Section 1. The Mayor and Council (the “Council”) of the City of
(a) The City is duly organized and validly existing as a city of the second class and political subdivision of the State of Nebraska (the “State”) under Chapter 17, Reissue Revised Statutes of Nebraska, as amended.
(b) It is necessary, desirable, and advisable and in the best interests of the City that the City provide an operating line of credit to pay expenses incurred at Warren Memorial Hospital (the “Hospital”), owned and operated by the City.
(c) The City is authorized pursuant to Section 18-1750, Reissue Revised Statutes of Nebraska, as amended (“Section 18-1750”), to borrow money to the amount of 70% of the unexpended balance of total anticipated receipts (as determined pursuant to Section 18-1750) for the current fiscal year and the following fiscal year.
(d) The City anticipates receipts for the current fiscal year and the following fiscal year of $485,310 from the levying of taxes for the current fiscal year and the following fiscal year, determined pursuant to Section 18-1750.
(e) Based upon the most recent report of the City’s Treasurer, the unexpended balance of total anticipated general fund receipts is $456,191.40.
(f) As of the Closing Date, there is a principal balance of $307,937.76 plus accrued and unpaid interest thereon outstanding in note or warrant indebtedness under the previous promissory note issued by the City in the maximum principal amount of $324,808 dated November 5, 2013, held by Citizens State Bank (“Previous Note”).
(g) It is necessary, desirable, and advisable and in the best interest of the City to borrow money and issue its negotiable revolving line of credit promissory note as provided under Section 18-1750, in an aggregate principal amount of $319,333.98.
Section 2. (a) For the purpose of paying the costs of certain operational expenses of the Hospital issuing the note herein authorized, there is hereby ordered issued a promissory note to the City in the principal amount of Ninety Three Thousand Three Hundred Sixty Nine Dollars and Twenty-Eight Cents ($93,369.28), designated as “Promissory Note, Series 2015” (the “Note”). The Note shall be fully registered as to both principal and interest on the books of the Note Registrar and Paying Agent designated in Section 3 of this Ordinance (the “Registrar”), bear a Date of Original Issue of the date of execution and delivery thereof, be numbered R‑1, be in any denomination, shall mature on the second anniversary of the Date of Original Issue and bear interest, calculated on the basis of a 365/366-day year and actual days elapsed. The Note shall be in the amount advanced by the Purchaser (hereinafter defined) upon request from the City from time to time up to a maximum principal amount of $93,369.28, bear interest computed daily on the principal amount from time to time outstanding and unpaid at a rate equal to the Purchaser’s base rate for such date minus 1.25%. Interest on the Note is payable on the first anniversary of the Date of Original Issue and at maturity. The outstanding unpaid principal on Note R-1 shall be due and payable at maturity.
Payments of interest due on the Note shall be made by the Registrar by mailing a check or draft on each payment date in the amount due for such interest to the Purchaser at its registered address as shown on the books of registration as required to be maintained in Section 3 hereof. Payments of principal due at maturity shall be made by the Registrar to the Purchaser upon presentation and surrender of the Note to the Registrar in lawful money of the
Section 3. (a) The Treasurer of the City is hereby designated the Registrar for the Note. The Registrar shall specify its acceptance of the duties, obligations and trusts imposed upon it by the provisions of this Ordinance by a written instrument deposited with the City prior to the issuance of the Note. The City reserves the right to remove the Registrar upon 30-days notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash in its possession to the successor Registrar and shall deliver the Bond register to the successor Registrar. The Registrar shall have only such duties and obligations as are expressly specified by this Ordinance and no other duties or obligations shall be implied to the Registrar.
(b) The Registrar shall keep and maintain for the City books for the registration and transfer of the Note at its office in Friend, Nebraska. The names and registered addresses of the registered owner of the Note shall at all times be recorded in such books.
(c) The Registrar shall also be responsible for making the payments of principal and interest as the same fall due upon the Note from funds transferred to it by the City for such purpose. Payment of interest due upon the Note prior to maturity shall be made by the Registrar by mailing a check in the amount due for such interest on each interest payment date to the Purchaser addressed to Purchaser at its registered address as shown on the books of registration as required to be maintained under this Section 3. Payments of principal due at maturity, together with any accrued interest then due, shall be made by the Registrar upon presentation and surrender of such Note at the office of the Registrar. The City and the Registrar may treat the registered owner of any Note as the absolute owner of such Note for the purpose of making payment thereon and for all other purposes. All payments on account of interest or principal made to the registered owner of any Note shall be valid and effectual and shall be a discharge of the City and the Registrar in respect of the liability upon such Note or claims for interest to the extent of the sum or sums so paid.
Section 4. The Note is subject to prepayment at any time at the option of the City. Any prepayment shall be applied and mutually agreed between the City and the Purchaser.
Section 5. The Note shall be in substantially in the format attached as Exhibit A to this ordinance.
Section 6. The Note shall be executed on behalf of the City by the manual signatures of the Mayor and Clerk. In case any officer whose signature shall appear on any Note shall cease to be such officer before the delivery of such Note (including any Note delivered to the Registrar for issuance upon transfer), such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer or officers had remained in office until the delivery of such Note.
Section 7. Upon execution and registration of the Note, and upon delivery of the Previous Note to the Registrar, the Registrar is authorized to (a) deliver the Note to Citizens State Bank, a Nebraska banking corporation, Friend, Nebraska, the purchaser thereof (the “Purchaser”), and (b) pay the Purchaser the amount of accrued and unpaid interest on the Previous Note as of the date the same is surrendered and delivered to the Registrar. The current principal balance of the Previous Note ($307,937.76) shall be deemed paid by the issuance of the Note which, immediately upon issuance, shall have a beginning principal balance of $307,937.76. The Purchaser shall have the right to direct the registration of the Note and the denomination thereof, subject to the restrictions of this Ordinance.
Section 8. The Clerk is directed to make and certify transcripts of the proceedings of the City precedent to the issuance of the Note, one of which transcripts shall be delivered to the purchaser of the Note.
Section 9. City represents, warrants, agrees and covenants with and for the benefit of the registered owner of the Note as follows:
(a) It has duly adopted an operating budget for the current fiscal year with respect to the general fund within the time required by law and levy ad valorem taxes on all of the taxable property within the City as required by law.
(b) The receipts from the levy of taxes together with other sources for the current fiscal year and the following fiscal year legally available for the payment of the principal of and interest on the Note will be sufficient to pay such principal and interest in full when and as the same become due.
(c) It will have on deposit in the Warren Memorial Hospital Fund and the general fund of the City amounts sufficient to pay the principal of and interest on the Note in full when and as the same become due.
(d) It will pay the principal of and interest on the Note from the net revenues of Warren Memorial Hospital. To the extent the same is insufficient for such purposes, it will cause to be levied and collected annually a special levy of taxes upon the taxable value of all the taxable property in the City, in addition to all other taxes, sufficient in rate and amount to pay the principal of and interest on the Note in full when and as the same become due.
(e) In preparing, approving and adopting a budget which controls or provides for the expenditure of its funds, the City will appropriate, allot and approve, in the manner required by law, from the Warren Memorial Hospital Fund and the general fund of the City amounts sufficient to pay the principal of and interest on the Note in full when and as the same become due.
Section 10. There is hereby established with the Registrar a Note Fund (the “Note Fund”) to be used solely for the purpose of paying the principal of and interest on the Note. Beginning January 1 of each year, the City shall deposit into the Note Fund such proceeds from the net revenues of
Section 11. Without in any way limiting the power, authority, or discretion elsewhere herein granted or delegated, the Council hereby authorizes and directs the Mayor and all other officers, employees, and agents of the City to carry out, or cause to be carried out, and to perform such obligations of the City and such other actions as they, or any one of them shall consider necessary, advisable, desirable, or appropriate in connection with this Ordinance, and the issuance, sale, and delivery of the Note, including, without limitation and whenever appropriate, the execution and delivery thereof and of all other related documents, instruments, certifications, and opinions; and delegates, authorizes, and directs the Mayor the right, power, and authority to exercise his own independent judgment and absolute discretion in determining and finalizing the terms, provisions, form and contents of each of the foregoing. The execution and delivery by the Mayor or by any such other officer, officers, agent or agents of the City of any such documents, instruments, certifications, and opinions, or the doing by them of any act in connection with any of the matters which are the subject of this Ordinance, shall constitute conclusive evidence of both the City’s and their approval of all changes, modifications, amendments, revisions, and alterations made therein, and shall conclusively establish their absolute, unconditional, and irrevocable authority with respect thereto from the City and the authorization, approval, and ratification by the City of the documents, instruments, certifications, and opinions so executed and the action so taken.
Section 12. If any one or more of the provisions of this Ordinance should be determined by a court of competent jurisdiction to be contrary to law, then such provisions shall be deemed severable from the remaining provisions of this Ordinance and the invalidity thereof shall in no way affect the validity of the other provisions of this Ordinance or of the Note and the owner of the Note shall retain all the rights and benefits accorded to it under this Ordinance and under any applicable provisions of law.
If any provisions of this Ordinance shall be held or deemed to be or shall, in fact, be inoperative or unenforceable or invalid in any particular case in any jurisdiction or jurisdictions, or in all cases because it conflicts with any constitution or statute or rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable or invalid in any other case or circumstances, or of rendering any other provision or provisions herein contained inoperative or unenforceable or invalid to any extent whatever.
Section 13. This Ordinance shall be in full force and effect and after its passage, approval and publication in pamphlet form as provided by law.
Councilman Stutzman moved for final passage of Ordinance #15-743 with proposed amendment of maximum principal amount to $319,333.98, which motion was seconded by Councilman Ryan. On roll call voting aye, Schrock, Ryan, Stutzman, Krause. Voting nay, none. The passage and adoption of said ordinance with proposed amendment, having been concurred and by a majority of all Members of the City Council, Ordinance #15-743 was amended and adopted this 14th day of September, 2015.
Motion was made by Schrock, seconded by Stutzman, to close the public hearing to receive comments relating to the property tax request for 2015-2016, and to receive comments relating to the proposed 2015-2016 budget. On roll call voting aye, Krause, Ryan, Stutzman, Schrock. Nays none. Motion carried. Public hearing closed at 5:07 p.m.
Proposed Ordinance #15-744 was read by Mayor Vossler. Councilman Stutzman moved that the statutory rule requiring reading on three different days be suspended. Councilman Schrock seconded the motion to suspend the rules and upon roll call, voting on the motion was as follows: Members voting aye, Ryan, Krause, Schrock, Stutzman. Members voting nay, none. The motion to suspend the rules was adopted by at least three-fourths of the Council and the statutory rule was declared suspended for consideration of the ordinance.
ORDINANCE NO. 15-744
AN ORDINANCE TO ADOPT THE BUDGET STATEMENT TO BE TERMED THE ANNUAL APPROPRIATION
BE IT ORDAINED BY THE MAYOR
Section 1.
That after complying with all procedures required by law, the budget presented and set forth in the budget statement is hereby approved as the Annual Appropriation Bill for the fiscal year beginning October 1, 2015 through September 30, 2016. All sums of money contained in the budget statement are hereby appropriated for the necessary expenses and liabilities of the City of
Section 2.
This ordinance shall take effect and be in full force from and after its passage, approval, and publication or posting as required by law.
Councilman Krause moved for final passage of Ordinance Number 15-744, which motion was seconded by Councilman Schrock. On roll call voting aye, Stutzman, Ryan, Krause, Schrock. Voting nay, none. The passage and adoption of said ordinance, having been concurred and by a majority of all Members of the City Council, Ordinance Number 15-744 was adopted this 14th day of September, 2015.
Resolution #15-09 was introduced and read by Mayor Vossler.
RESOLUTION NO. 15-09
WHEREAS, Nebraska Revised Statute 77-1601.02 provides that the property tax request for the prior year shall be the property tax request for the current year for purposes of the levy set by the County Board of Equalization unless the Governing Body of the City of Friend passes by a majority vote a resolution or ordinance setting the tax request at a different amount; and
WHEREAS, a special public hearing was held as required by law to hear and consider comments concerning the property tax request; and
WHEREAS, it is in the best interests of the City of
1. The 2015-2016 property tax request be set at $409,566.80.
2. A copy of this resolution be certified and forwarded to the County Clerk on or before October 13, 2015.
Motion was made by Krause, seconded by Stutzman to approve Resolution #15-09 relating to the 2015-2016 property tax request of $409,566.80. On roll call voting aye, Schrock, Ryan, Krause, Stutzman. Nays none. Resolution #15-09 was passed and approved this 14th day of September, 2015.
Mark McFarland presented to the Mayor and council a proposed contract/agreement between the City of Friend and newly hired police officer, Ryan Musil relating to salary and benefits. After review and discussion, motion was made by Schrock, seconded by Ryan, to accept and approve the proposed contract/agreement relating to salary and benefits, between the City of Friend and police officer, Ryan Musil. On roll call voting aye, Stutzman, Krause, Ryan, Schrock. Nays none. Motion carried.
No further business to come before the City Council, motion was made by Schrock, seconded by Ryan, to adjourn the meeting. On roll call voting aye, Krause, Drake, Ryan, Schrock. Nays, none. Motion carried. Meeting adjourned at 8:08 p.m.