Chapter 3.40
INDUSTRIAL REVENUE BONDS
Sections:
3.40.030 Application requirement.
3.40.010 Short title.
This chapter may be referred to as the “industrial revenue bond ordinance 1981.” (Code 1997 § 3-4-1).
3.40.020 General.
A. It is the duty of the city manager to give prompt and energetic attention to all applications made pursuant to this chapter. The city manager or his designee shall report to the city council of the city within 30 days of the date of receipt of a completed application.
B. The city council will make all necessary determinations of the desirability of projects and will not delegate this authority to any agent, contractor, or employee of the city.
C. The city council will not employ the provisions of the County and Municipality Development Revenue Bond Act to industries presently located in other parts of the state if the result of such act is to induce removal of these industries from their present locations.
D. The city council declares its intention to require the payment of ad valorem real estate taxes on any project held in the name of the city or on any other governmental entity in the same amount and manner as if the ownership of the real estate remained in private hands rather than in the ownership of the city or other entity.
E. The city will require information and proof of such matters necessary to establish the bona fide purposes of the applicant while not unnecessarily divulging information to the competitive disadvantage of the applicant.
F. The city will, in performing its duties, seek to protect and enlarge the good fiscal reputation of the city.
G. Materials supplied under the following sections of this chapter shall not be made public unless and until the city council at a public meeting agrees to issue the revenue bonds provided for hereunder, but this shall not preclude the city council from giving such public notice of its consideration of the application as necessary to attract comments and suggestions of members of the community. (Code 1997 § 3-4-2).
3.40.030 Application requirement.
In order to properly process and consider applications to issue bonds for projects set forth herein, certain information shall be required to be submitted by any applicant, which information is detailed as follows:
A. A legal opinion from an attorney who is a qualified municipal bond counsel acceptable to the city council stating that the applicant’s proposal falls within the intent and meaning of the County and Municipality Development Revenue Bond Act.
B. Evidence that the proposed bond issue can be sold to an acceptable underwriter or to an experienced investor or group of investors, and that the issue has met satisfactorily all requirements of such underwriter or investor group.
C. A history of the applicant, including a description of its operations.
D. The historical financial statistics of the applicant for the last two years, including but not limited to, the following:
1. Net sales;
2. Gross profits;
3. Net income;
4. Cash flow;
5. Net worth;
6. Earnings available for debt service;
7. Net fixed assets;
8. Working capital.
E. A financial position statement from Dun and Bradstreet, or a comparable firm, on the applicant, or a statement that the financial status of the applicant has not been reviewed by a firm.
F. A list of the major customers of the applicant, and the annual sales to each of said major customers for the preceding five years, if applicable.
G. A resume of the principals and key employees of the applicant, including directors and officers, if the applicant is a corporation.
H. The applicant’s pro forma balance sheets, income statements, and cash flow projections for the next five years reflecting the proposed revenue bond issue.
I. The applicant’s prepared financial statements dated within 120 days of the application date.
J. Copies of the applicant’s certified financial statements for the preceding two years.
K. A complete list or description of the assets to be purchased or constructed, and expenses incidental to the acquisition of said assets, including costs of sale of the revenue bond.
L. A bond redemption and interest payment schedule using estimated interest rates upon his application.
M. A lease payment schedule, loan payment schedule, or formula for retirement of the bonds and payment of taxes and costs of maintaining the project in good repair and properly insured.
N. Any other matters specifically required by the city council in light of the specific project, which may not be set forth above.
O. The city council may waive any of the foregoing requirements set forth herein if, in the judgement of the city council, they are not applicable to the specific project. (Code 1997 § 3-4-3).
3.40.040 Analysis criteria.
At such time as the applicant has satisfied all of the above application requirements, as well as paid the fee set forth below, the city council will review the material and evidence submitted and make its final decision either approving or disapproving the issuance of revenue bonds for the proposed project. Such decision shall be at the full and complete discretion of the city council. In analyzing the application, the city shall reply on the following criteria:
A. Whether or not the proposed project is in accordance with the goals, concepts, and objectives for development as set forth by the city master plan.
B. The property on which any project will be located must be within the corporate boundaries of the city and such property must have affixed thereto a zoning district classification which permits the proposed project use.
C. Whether or not the proposed project has availability of adequate water and sewer services or includes providing for new development of such services. The cost of necessary off-site capital improvements, including, but not limited to, streets, curbs, gutters, sidewalks, utility easements, water and sewer lines, and traffic control devices.
D. The ratio of net worth of the applicant to the total project value.
E. The coverage factor for debt service of the applicant from its earnings.
F. The prior financial success of the applicant in the same or similar endeavors for a period of five years prior to the date of application.
G. The projected life of the facility or equipment purchased.
H. The presence or lack thereof of any litigation pending or threatened in any manner against the applicant. (Code 1997 § 3-4-4).
3.40.050 Fee.
At the time the application for funding under the County and Municipality Development Revenue Bond Act is submitted to the city, it shall be accompanied by a nonrefundable fee to cover cost of analysis in the amount of $1,000. At the time the city issues its industrial revenue bonds in support of the project, the applicant shall pay a fee equal to one-quarter of one percent of the total amount of the bond issue to cover all administration of the bond issue. Applicant shall be credited with the amount of $500.00 against the fee. (Code 1997 § 3-4-5).