RESOLUTION NO 2004-8 Authorizing a Loan Agreement and providing for the issuance of a $125,000 General Obligation Computer Equipment Note and providing for the levy of taxes to pay the same WHEREAS, pursuant to the provisions of Section 331.402 of the Code of Iowa, Clay County, Iowa (the “County”), has heretofore proposed to contract indebtedness and enter into a loan agreement in the principal amount of $125,000 to provide funds to pay the cost, to that extent, of acquiring computer equipment for County offices, and has published notice of the proposed action and has held a hearing thereon; and WHEREAS, it is necessary at this time to authorize and approve the Loan Agreement and to make provision for the issuance of a General Obligation Computer Equipment Note in the principal amount of $125,000 (the “Note”) in evidence of the obligation of the County under the Loan Agreement; NOW, THEREFORE, Be It Resolved by the Board of Supervisors of Clay County, Iowa, as follows: Section 1. The County hereby determines to enter into the Loan Agreement with a lender (the “Lender”) to be hereafter determined, in substantially the form as has been placed on file with the Board, providing for a loan to the County in the principal amount of $125,000 for the purpose or purposes set forth in the preamble hereof. Section 2. The Note is hereby authorized to be issued in the principal amount of $125,000, and shall be dated as of the date of its delivery to the Lender. The Note 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 Board at the time the Lender is selected, 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 Note as the same become due, there is hereby levied on all the taxable property in the County 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, 2004, sufficient to produce the net annual sum of $44,000; For collection in the fiscal year beginning July 1, 2005, sufficient to produce the net annual sum of $44,000; For collection in the fiscal year beginning July 1, 2006, sufficient to produce the net annual sum of $44,000; provided, however, that at the time the Lender is selected, the actual tax levy amounts required to pay the principal of and interest on the Note in each year shall be determined based upon the interest rate or rates at which the Note is issued, and this resolution shall be amended by resolution of the Board 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, and the 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 Clay County Board of Supervisors Minutes for Meeting # 10 February 10, 2004
County and when collected, the proceeds of the taxes shall be converted into the Debt Service Fund of the County 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 Note hereby authorized and for no other purpose whatsoever. Section 5. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved on February 10, 2004. /s/ Joel M. Sorenson Chairperson, Board of Supervisors Attest: /s/ Marjorie A. Pitts, County Auditor
Clay County Board of Supervisors Minutes for Meeting # 10 February 10, 2004