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CITY OF CARLISLE REGULAR CITY COUNCIL MEETING AGENDA Monday, 22 May 2017; 6:30 P.M Carlisle City Hall Council Chamber, 195 N. 1st St. The following agenda items will be considered:

CALL MEETING TO ORDER

PLEDGE OF ALLEGIANCE

CONSENT AGENDA & POSSIBLE ACTION (Council may pull any item on consent agenda for separate action)

− Approve Regular City Council Minutes for 8 May 2017 − Approve Tax Abatement Applications for Hubbell Homes, L.C. for Lots 1, 2, 3, 24, and 25 All in

Plat 5, Danamere Farms − Approve Cigarette Permit for Fareway Stores, Inc. #147, 1115 Bluestem Drive − Approve Cigarette Permit for Casey’s General Store #3404, 1020 Gateway Drive − Approve Cigarette Permit for Casey’s General Store #14, 105 HWY 5 − Approve Cigarette Permit for Casey’s General Store #1676, 1001 HWY 5 − Receive and File Sidewalk Committee Minutes for 11 May 2017 − Receive and File Planning and Zoning Minutes for 15 May 2017

APPROVAL OF BILLS PAYABLE, CHANGE ORDERS AND PAY REQUESTS

− Consider Approval of Bills in Amount of $57,807.78 − Consider Approval of Pre-Authorized Disbursements from 25 April through 19 May 2017 − Consider Approval of Release of Retainage for 8th Street and Cole Street Improvement Project

($31,825.17)

CITIZEN PARTICIPATION (Please approach podium and state name and address. Comments limited to 3 minutes.)

OLD AND NEW BUSINESS & POSSIBLE ACTION

− Consider Request from Staci Spragg at 325 Fleming to Allow Parking on Both Sides of Street on Monday, May 29, 2017 from 2:00 PM to 7:00 PM

− Consider Waiver for Metal Siding Facing Right-of-Way for Building in RM-1 (Residential/Light Industrial District); Charles Peterson, 335 Jefferson Street

− Consider Approval of Plat of Survey for Wyckoff Home Place LLC, 15465 Briggs Street (within 2-mile jurisdiction area for City of Carlisle)

− Consider Approval for RESOLUTION APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL STATEMENT

− Public Hearing for Amendment No. 1, Gateway Urban Renewal Plan

− Consider Approval of RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL

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PROJECTS; AND ADOPTING AMENDMENT NO. 1 TO THE GATEWAY URBAN RENEWAL PLAN

− Public hearing on the proposed Carlisle Gateway Townhomes Urban Renewal Plan

− Consider Approval of RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL PROJECTS; AND ADOPTING THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL PLAN

− Consider Approval of First Reading of AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA, IN THE CITY OF CARLISLE, COUNTY OF POLK, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF CARLISLE, COUNTY OF POLK, CARLISLE COMMUNITY SCHOOL DISTRICT, AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY THE CITY IN CONNECTION WITH THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA (THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL PLAN)

o Consider second and third readings

− Consider Approval of First Reading of AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF CARLISLE, IOWA BY AMENDING PROVISIONS PERTAINING TO ANIMAL PROTECTION AND CONTROL

o Consider second and third readings

− Consider Approval of First Reading of AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF CARLISLE, IOWA BY AMENDING PROVISIONS PERTAINING TO FIREWORKS

o Consider second and third readings

− Consider Approval of A RESOLUTION TO APPROVE VOLUNTARY ANNEXATION OF LAND OWNED BY HEARTLAND CO-OP

− Consider Approval of RESOLUTION APPROVING AGREEMENT FOR PROFESSIONAL SERVICES WITH SEH, INC FOR ANEXATION STUDY

− Discussion and Possible Action Regarding the Reimbursement of Electric Installation at Danamere Farms, Plat 6

− Consider Offer to Purchase Lot at 30 Market Street from Iowa Concrete Leveling

− Consider Approval of FY2017 Pay Rate Increases for Non-Union Personnel; Effective June 26, 2017

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DEPARTMENT REPORTS

− Police-

− Request for Budget Amendment for Purchase of 9 Active Shooter Defense Kits and 2 Ballistic Helmets ($4,090.00)

− Fire/Rescue-

− Consider Approval of Hire of Adam Bedwell as part-time EMT at Rate of $11.85 per hour

− Consider Motorola Quote for Radios

− Electric-

− Library-.

− Parks and Recreation-Consider Approval for the following hires: Concessions

Pam Mooreland at $9.00 per hour Lifeguard

Kallen Glawe at $9.00 per hour Gabe McCaughey at $9.25 per hour Alex Byford at $9.00 per hour

Summer Rec Pam Mooreland at $10.50 per hour Lynette Sullivan at $10.25 per hour Mckenzie Wright at $7.50 per hour Nate Rowray at $7.25 per hour

− Public Works

− City Hall/Finance/City Administrator

MAYOR AND COUNCIL REPORTS

CITY ATTORNEY REPORT

UPCOMING MEETINGS AND EVENTS

INFORMATION

− DART Post-Commission Email-May 2017 CLOSED SESSION in accordance with Code of Iowa Section 21.5(j) To discuss the purchase or sale of particular real estate only where premature disclosure could be reasonably expected to increase the price the governmental body would have to pay for that property or reduce the price the governmental body would receive for that property.

ADJOURNMENT

** PLEASE NOTE THAT THIS AGENDA MAY CHANGE UP TO 24 HOURS PRIOR TO THE MEETING **

“This institution is an equal opportunity provider and employer.” If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov.”

Memo To: Mayor and City Council

From: Andrew J. Lent, City Administrator

Date: 05/19/2017

Re: City Council Meeting, Monday, 22 May 2017

If you have any questions concerning an item on the agenda, please call me at 319-521-3405.

Old/New Business:

− Consider Request from Staci Spragg at 325 Fleming to Allow Parking on Both Sides of Street on Monday, May 29, 2017 from 2:00 PM to 7:00 PM: Requests from the Spraggs to have parking on both sides of the street during this time for a graduation party for their son. Both Chief Spring and Chief Glover have agreed that this should not be a problem for this short of a period.

− Consider Waiver for Metal Siding Facing Right-of-Way for Building in RM-1 (Residential/Light Industrial District); Charles Peterson, 335 Jefferson Street: Charles Peterson owns property at 335 Jefferson Street and wishes to construct a building with metal siding. The property is located in the Residential-Industrial zoning district and the building would be conducive with other buildings in the area.. The Planning and Zoning recommends approval of the waiver.

− Consider Approval of Plat of Survey for Wyckoff Home Place LLC, 15465 Briggs Street (within 2-mile jurisdiction area for City of Carlisle): As shown on the map, this plat of survey is outside of the city limits, but within the 2-mile jurisdiction area held by the city for new plats of survey. The Planning and Zoning Commission has recommended to approve the Plat of Survey at their May 15 meeting.

− Consider Approval for RESOLUTION APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL STATEMENT: This procedure is for the borrowing of revenue bond note funds for the NW water main extension project. The low bid came under the engineer’s estimate, so the borrowing amount will be considerably lower than the original amount. The borrowed amount will be $758,000.

− Public Hearing for and Consider Approval of RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL PROJECTS; AND ADOPTING AMENDMENT NO. 1 TO THE GATEWAY URBAN RENEWAL PLAN: A public hearing is to be held before the amendment of an urban renewal area followed by the consideration of a resolution to formally adopt the amendment. This amendment for the Gateway Urban Renewal Area is to remove a parcel further described in the amendment to establish a residential urban renewal area. This area is

separated from the original economic development area since the housing area is subject to other regulations; such as a 10-year limit on TIF revenue collections and a Low-to-Moderate Income set aside if the residential area is sold at market rate.

− Public hearing for and Consider Approval of RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL PROJECTS; AND ADOPTING THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL PLAN A public hearing is to be held before the plan of an urban renewal area is adopted followed by the consideration of a resolution to formally adopt the plan. This plan for the Gateway Townhomes Urban Renewal Area is to establish a residential urban renewal area. This area is separated from the original economic development area since the housing area is subject to other regulations; such as a 10-year limit on TIF revenue collections and a Low-to-Moderate Income set aside if the residential area is sold at market rate.

− Consider Approval of First Reading of AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA, IN THE CITY OF CARLISLE, COUNTY OF POLK, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF CARLISLE, COUNTY OF POLK, CARLISLE COMMUNITY SCHOOL DISTRICT, AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY THE CITY IN CONNECTION WITH THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA (THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL PLAN): An ordinance must be adopted for the TIF revenue to be collected from the Gateway Townhomes Urban Renewal Area. The ten-year period of collections begins in the year in which the TIF is first collected.

− Consider Approval of First Reading of AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF CARLISLE, IOWA BY AMENDING PROVISIONS PERTAINING TO ANIMAL PROTECTION AND CONTROL: At the last Council meeting, Council clarified that the ownership of livestock in city limits only pertains to 3 horses on a parcel of at least 10 acres. The proposed ordinance also removes the limit on the number of domestic animals. Council may waive the second and third readings of the ordinance.

− Consider Approval of First Reading of AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF CARLISLE, IOWA BY AMENDING PROVISIONS PERTAINING TO FIREWORKS: Following discussion at the last Council meeting, Council decided to limit the days for the use of fireworks around the Fourth of July and allow no fireworks at New Year’s.

− Consider Approval of A RESOLUTION TO APPROVE VOLUNTARY ANNEXATION OF LAND OWNED BY HEARTLAND CO-OP: A resolution for this annexation was previously approved by Council, but the state determined that I missed sending a notice of the annexation to the City of Des Moines since the parcel is within 2 miles of Des Moines. I had to send them a notice and redo the resolution. The annexation will be reviewed by the City Development Board on June 15, 2017.

− Consider Approval of RESOLUTION APPROVING AGREEMENT FOR PROFESSIONAL SERVICES WITH SEH, INC FOR ANEXATION STUDY: The Council budgeted in the FY2018 for an annexation study to

research the feasibility of annexation land mainly going southwest from the city limits when the area for housing is completely built out. The amount budgeted is $20,000 and the agreement is a not-to-exceed of $20,000.

− Discussion and Possible Action Regarding the Reimbursement of Electric Installation at Danamere Farms, Plat 6: I have included some agreements between MidAmerican Energy and Hubbell for the installation of electric in other Danamere Plats. Hubbell was expecting the same type of reimbursement from the city’s electric utility. The reimbursement is 100 percent except for the cost of the street lights. While I do not like the idea of not receiving payment for this cost, the installation does bring on several new customers on to the system. I recommend that Bob Stuyvesant put together a similar agreement for the City with Hubbell. This development and the area that will connect to 8th Street are the only areas that CMEU will see this type of development unless service territory changes and expands.

− Consider Approval of FY2017 Pay Rate Increases for Non-Union Personnel; Effective June 26, 2017: A spreadsheet is included showing planned increases for non-union personnel as budgeted. The wage increase for Don Miller, Steve Obraza, City Hall staff, and Ronda Frost was budgeted at 2.75 percent which is the union increase for public works. EMS and Dave Sigmund was increased at 3 percent. The police non-union are on the table at the across-the-board increase for the union officers. This is the normal procedure for determining non-union wages. If the police non-union were adjusted by 2.75 percent, the total difference would be $1,561 plus a smaller amount for employment taxes. I would support Council decision to choose this option and this is included in the spreadsheet.

DEPARTMENT REPORTS

− Police-

− Request for Budget Amendment for Purchase of 9 Active Shooter Defense Kits and 2 Ballistic Helmets ($4,090.00): Chief Spring is requesting to use department budget surplus to be used towards these items as described in his memo included in the packet.

− Fire/Rescue-

− Consider Approval of Hire of Adam Bedwell as part-time EMT at Rate of $11.85 per hour

− Consider Motorola Quote for Radios: Chief Glover requests that the amount received from the sale of the second out ambulance be used as a down payment for new P25 dual-band radios to increase the communication ability with dispatch.

− Electric-

− Library-

− Parks and Recreation-Written Report

− Public Works

− City Hall/Finance/City Administrator

CITY OF CARLISLE

REGULAR CITY COUNCIL MEETING MINUTES

Monday, 8 May, 2017; 6:30 P.M.

Carlisle City Hall Council Chamber

195 North First Street, Carlisle, Iowa

Elected Officials present were Mayor Ruth Randleman and Council Members Rob VanRyswyk, Drew Merrifield, Dan McCulloch, Doug Hammerand and Eric Goodhue. Also present were City Attorney Robert Stuyvesant, City Administrator Andy Lent, Electric Superintendent Don Miller, Parks and Rec Superintendent Ronda Frost, Public Works Superintendent Steve O’Braza, Police Chief Eric Spring, and City Clerk Martha Becker. Library Director Stacy Goodhue was not present. Mayor Randleman called the meeting to order at 6:30 pm.

The Pledge of Allegiance was recited.

Motion by Hammerand, Seconded by Goodhue to approve the hire of Lucas Hauser as fulltime police officer at rate of $23.43 per hour, effective May 9th. Motion carried unanimously on a roll call vote. The police officer oath of office was administered by Mayor Randleman and taken by Officer Hauser.

CONSENT ITEMS: Motion by Goodhue, seconded by McCulloch, to APPROVE THE FOLLOWING CONSENT ITEMS:

− Approve Regular City Council Minutes for 24 April 2017 − Approve Class C Liquor License For Back Alley Smokehouse, 90 School Street

APPROVAL OF BILLS, CHANGE ORDERS AND PAY REQUESTS: Motion by Goodhue, seconded by VanRyswyk to approve bills in the amount of $263,951.18 with changes to the following: Change the charge of $2,030.09 from O’Reilly’s to O’Halloran International. Motion carried unanimously on a roll call vote. Motion by Goodhue, seconded by Hammerand to approve Pre-Authorized Disbursement from 28 through 21 April 2017 in the amount of $172,621.47. Ayes: Hammerand, Goodhue, McCulloch and Van Ryswyk. Nays: Merrifield-due to the Shive-Hattery claim which was already presented on 10 April, 2017. Motion carried.

CITIZEN PARTICIPATION: Bruce Selby, 7322 SE 52nd Street, Carlisle, IA spoke to Council regarding the Northwest Water Main Extension Project. He is happy to have City water available to his residence however, he has concerns about his out of pocket expense to make the connection to the water main. Selby asked Council if the City would be willing to help with the costs of the connection. Council summarized the City Ordinance to Selby that water connections from the main to the building are the homeowner’s responsibility. The Parks and Recreation report was moved ahead due to Frost leaving early.

− Motion by Hammerand, Seconded by McCulloch to approve the hire of Lifeguards at the Carlisle Aquatic Center for the 2016 Season as Stated in the Park and Rec Update for May 8th 2017. Motion carried unanimously on a roll call vote.

− Motion by Hammerand, Seconded by McCulloch to approve the hire of Concession

Staff for the Carlisle Aquatic Center for the 2016 Season as Stated in the Park and Rec Update for May 8th 2017. Motion carried unanimously on a roll call vote.

- Review Increased Costs for Summer Rec Programs Frost presented Council with a cost analysis of the Summer Recreation programs. Frost proposed increasing Summer Recreation programs by $2.00 per event to help offset the costs. McCulloch suggested condensing some of the programs to help with expenses.

Motion by Goodhue, Seconded by McCulloch to approve the $2.00 increase per event for the Summer Recreation Programs. Motion carried unanimously on a roll call vote.

Goodhue inquired about where Frost was with increasing the rental fee for the Community Center and when the buildings would be inspected. Frost replied that they are reworking the agreement for the inspection times. Merrifield asked about the pool fill and Frost replied that it was filled. Frost also commented that the slides were repaired.

OLD BUSINESS and NEW BUSINESS and POSSIBLE ACTION:

At 7:04 P.M. Mayor Randleman opened the Public Hearing on the Northwest Water Main Extension Project. Lent noted that he received an indirect comment from Beverly Stillwell. She wants to ensure that her trees and fence are not disturbed.

Motion by Van Ryswyk, Seconded by Hammerand to close the public hearing at 7:05 P.M. Motion carried unanimously on a roll call vote. Lauren Nitchals-Clark from Fox Engineering spoke to Council regarding the Northwest Water Main Extension Project. The project will consist of around 9,200 feet of 12-inch water main, 2,500 feet of 6-inch water main and minor pavement removal and replacements along with seeding of disturbed areas. Goodhue asked how much trenching would be done. Nitchals-Clark replied around 7,000 feet of the 12-inch will be trenched. Most of the 6-inch will be trenched and around 250 feet of the 6-inch

will be trenchless. Goodhue also inquired about the fiber optic line which lies close to the area to be trenched. Nitchals-Clark said they were aware of the line. Goodhue would like to investigate how other cities handle water line connection responsibilities. There was consensus from Council to move forward and see what other cities do in regards to water line connections and how much is the homeowner’s responsibility. Motion by Hammerand, seconded by McCulloch to approve Resolution 2017050801, A RESOLUTION ADOPTING PLANS, SPECIFICATIONS, FORM OF CONTRACT AND ESTIMATED COST FOR THE NORTHWEST WATER MAIN EXTENSION PROJECT. Motion carried unanimously on a roll call vote. The Council reviewed the bids received for the Northwest Water Main Extension Project. The City received 8 bids on the project. The Engineer’s opinion of probable construction cost was $981,300.00. The bids ranged from a high bid of $1,370, 339.00 to a low bid of $787,142.00. Max Smith Construction out of Creston, Iowa submitted the low bid of $787,142.00. Hammerand asked Fox Engineering about the bid difference as it was much lower and if this was a concern. Nitchals-Clark replied that they found two irregularities with the bid. Smith had a mathematical error which was corrected. Smith reviewed the corrected amount and had no issues. Smith also bid $1.00 for mobilization which is usually 2%-5% of the bid. The unit prices are in line and the bid is acceptable. Hammerand asked if the contractor could come back and do a change of order if they thought the bid was too low. Nitchals-Clark replied that it is an offer and the City can accept the offer. McCulloch had a question on the price of pipe. Nitchals-Clark said that Smith feels that they can do it for that price. Motion by Hammerand, seconded by Goodhue to approve Resolution 2017050802, A RESOLUTION MAKING AWARD OF CONTRACT FOR THE NORTHWEST WATER MAIN EXTENSION PROJECT to Max Smith Construction aka Smith Construction from Creston, Iowa in the amount of $787,142.00. Motion carried unanimously on a roll call vote. Merrifield noted that if there was a change to the bid it would be a change of order and it could mean a possible increase to the bid. Lent discussed the Resolution Accepting Easement for the Northwest Water Main Extension Project with Council. He explained that the amounts offered were 50% of the property value for permanent easements and 10% for temporary easements. The total amount is about $3,000.00 less than what was budgeted for easements in the project. Goodhue put to question why the agreement figured a three year crop loss on a graduated scale when the crop ground would only be unavailable for one year. Nitchals-Clark replied that this is a common scale because they factor in compaction of the crop ground. Merrifield asked for definition of permanent and temporary easement. The answer was that temporary easement allows use of property during construction and permanent allows for the lay of the pipe and materials. Motion by Hammerand, Seconded by Goodhue to approve Resolution 2017050803, A RESOLUTION ACCEPTING EASEMENT FOR THE NORTHWEST WATER MAIN EXTENSION PROJECT FOR THE CITY OF CARLISLE, IOWA. Motion carried unanimously on a roll call vote.

Motion by Goodhue, seconded by Merrifield to approve Resolution 2017050804, A RESOLUTION APPOINTING CREDIT CARD ADMINISTRATORS FOR CITY OF CARLISLE. Motion carried unanimously on a roll call vote. Lent discussed the Warren County GIS Commission 28E Agreement with Council. The public works and electric department use the system which allows the city departments to track infrastructure. The cost to the City to keep the services will be $15,175.00, divided among the street, water, sewer and electric departments. Lent noted that the agreement did not have a termination clause. Hammerand asked how the cost to the City was determined. Lent replied that Warren County came up with the dollar figures. McCulloch asked if this was something the City could do on their own. The reply was yes but the cost would be considerable. Motion by Goodhue, seconded by McCulloch to table A RESOLUTION APPROVING WARREN COUNTY GEOGRAPHIC INFORMATION SYSTEM COMMISSION 28E AGREEMENT Motion carried unanimously on a roll call vote. Motion by Goodhue, seconded by McCulloch to approve the Third and Final Reading of Ordinance 718, AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF CARLISLE, IOWA BY AMENDING PROVISIONS PERTAINING TO WATER RATES Motion carried unanimously on a roll call vote. Motion by Goodhue, seconded by VanRyswyk to approve the Third and Final Reading of Ordinance 719, AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF CARLISLE, IOWA BY AMENDING PROVISIONS PERTAINING TO SOLID WASTE COLLECTION FEES. Motion carried unanimously on a roll call vote. Council discussed the number of pets allowed and clarification on livestock ordinance. Lent reviewed the Ordinance with Council that pertains to Livestock for a possible amendment so residents can keep livestock on 10 acres. Council consensus was against keeping livestock other than the permitted three horses on 10 acres. Council also discussed the Ordinance which pertains to Number of Pets Allowed. It was discussed to lift the restriction of number of animals on a property and deal with possible issues as a nuisance. The Council also discussed the term “Kennel” and would like to see a better clarification of the term written into the Ordinance. Robert Stuyvesant will take the discussion items and amend the Number of Pets Allowed and Livestock Ordinances. Council discussed the new state law allowing the use and sale of fireworks. Merrifield noted that the State mandate was very clear on its regulations. Van Ryswyk stated that he received five phone calls with citizens concerned about the passing of the Fireworks bill. Council discussed changing the hours that fireworks can be shot off as well as shortening the timeframe they can be shot off. Council consensus was to allow a more limited time for fireworks use around the Fourth of July holiday and to not allow them during the New Year’s Day holiday time. Robert Stuyvesant will take the discussion items and amend the Fire Works Ordinance.

DEPARTMENT REPORTS

− Police-The shredding event will take place on May 27th.

− Fire/Rescue-Lent notified Council the Fire Department was working on a proposal for new radios. They will use the money from the sale of the ambulance. Merrifield expressed concerns that the radio frequency may not work with Warren County Dispatch. The radios are P25/Dual band and should interface with Warren County’s system.

− Electric-Written Report. Merrifield asked Miller about the electric installation at Danamere Farms. Miller noted that the City will furnish the supplies and get reimbursed.

− Library-Book sale on May 12th-13th.

− Public Works-Written Report

− City Hall/Finance/City Administrator- Motion by Goodhue, Seconded by Merrifield to Increase in Pay for Utility Billing Clerk, Gabrielle Breheny to $16.50 per hour, retroactive to May 1, 2017. Motion carried unanimously on a roll call vote.

MAYOR AND COUNCIL REPORTS

− Drew Merrifield- None − Robert Van Ryswyk-None − Doug Hammerand-None − Dan McCulloch-None − Eric Goodhue-He enjoyed watching Officer Hauser’s boys beaming with pride during his

Swearing In. − Mayor Randleman-Mayor touched on an upcoming Watershed meeting and that staff was

welcome to attend. She also asked public works if they tested for everything in the water testing. O’Braza replied that they do.

CITY ATTORNEY REPORT: No Report

UPCOMING MEETINGS AND EVENTS: None INFORMATION: GOOD & WELFARE: Mayor spoke about the upcoming Bus Tour which will take place on Tuesday from 11:00 am to 2:00 pm. She also spoke about the 10K run on August 5th and the July 4th Run. ADJOURNMENT: Motion by Goodhue, second by Van Ryswyk to adjourn at 8:47 P.M. Motion carried unanimously on a roll call vote.

________________________________ Ruth Randleman, Mayor

_________ ___ Martha Becker, City Clerk

City of Carlisle, Iowa

SIDEWALK Committee

May 11, 2017

6:30 P.M. Carlisle City Hall

1. Call to Order

2. Introductions-Zach Young, Jeff Schug, Don Corrigan, Sue Boll, Drew Merrifield, Andy Lent

3. Review Sidewalk Ordinance: Members felt enough review was done at last meeting and the

amended ordinance was sent out earlier. The ordinance will stand for now.

4. Who Pays for Sidewalks: Members reviewed what other cities do. Consensus was to have property owners pay for the normal sidewalk according to city specifications. City would pay for handicap ramps and any width beyond 5 feet. On corner lots, the property owner would pay for both sides.

5. Zach will put together policy and city will send out to committee for review. Ordinance to be

reviewed by Council for the first time in June.

6. Members present thought another meeting wasn’t needed for now and no date was set for the next meeting.

7. Adjourn

CITY OF CARLISLE, IOWA

PLANNING AND ZONING COMMISSION MINUTES

7:00 PM, MONDAY 15 May2017

CARLISLE CITY HALL

MEMBERS PRESENT: Corey Oelberg, Bryan Holden, Howard Goodhue, Dane Wright MEMBERS ABSENT: Angi Bruce, Becky Peterson, Jon Lins

Chair Oelberg called the meeting to order at 7:00 PM. A roll call was taken and it was determined that a quorum existed.

Motion by Holden, seconded by Wright to approve minutes from 17 April 2017. Motion carried unanimously. Motion by Wright, seconded by Goodhue to approve recommendation on waiver for Metal Siding Facing Right-of-Way for Building in RM-1 (Residential/Light Industrial District); Charles Peterson at 335 Jefferson Street. Motion carried unanimously on a roll call vote. Motion by Holden, seconded by Wright to recommend approval of Plat of Survey for Wyckoff Home Place LLC, 15465 Briggs Street (within 2-mile jurisdiction area for City of Carlisle). Motion carried unanimously on a roll call vote.

The Commission reviewed and considered their recommendation for AMENDMENT NO. 1 to the GATEWAY URBAN RENEWAL PLAN for the GATEWAY URBAN RENEWAL AREA. Lent explained that the amendment was to remove a certain area as described in the amendment to set up the new plan for the Carlisle Gateway Townhomes Urban Renewal Area. He showed the Commission members the land use plan for the area and it appeared to be a mixture of residential commercial for this area.

Motion by Goodhue, seconded by Holden that the Amendment was in conformity with the general plan for development of the City as a whole and directs the city administrator to relay written findings to City Council. Motion carried unanimously on a roll call vote.

The Commission reviewed and considered their recommendation for CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL PLAN for the CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA. Lent explained that for a residential urban renewal area, a new urban renewal plan must be created since the housing area would be limited to ten years of TIF collection and a Low-to-Moderate Income (LMI) set aside must be made from the TIF collected for program to benefits those families in the LMI range. Lent also explained that while the plan was created for townhomes, the developers are working with another group to possibly build apartment buildings in this location. The area is described in the plan.

Motion by Wright, seconded by Holden that the Carlisle Gateway Townhomes Urban Renewal Plan was in conformity with the general plan for development of the City as a whole and directs the city administrator to relay written findings to City Council. Motion carried unanimously on a roll call vote.

No further business was necessary and on a motion by Wright, seconded by Goodhue the meeting was adjourned at 7:35 PM on a unanimous vote.

Respectfully Submitted,

Andrew J. Lent City Administrator

Warren County, IA

Developed byThe Schneider Corporation

Parcel ID 39080000150

Sec/Twp/Rng n/a

Property Address

Alternate ID n/a

Class R

Acreage n/a

Owner Address PETERSON, CHARLES W

450 N 9TH ST

CARLISLE IA 50047

District 39100

Brief Tax Description 2-77-23 COUNCILMANS ADD N 31' LOT 14 ALL LOTS 15 & 16

(Note: Not to be used on legal documents)

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The maps included in this website do not represent a survey and are compiled from official records, including plats, surveys, recorded deeds, and contracts, and only containinformation required for government purposes. No warranties, expressed or implied, are provided for the data herein, its use or its interpretation. Warren County assumes no

responsibility for use or interpretation of the data. Any person that relies on any information obtained from this site does so at his or her own risk. All critical information should beindependently verified.

The 2,000 Foot Buffers layer is for law enforcement guidance only, and is based on the best information available at the time it was prepared. This layer should not be considered tobe a complete and accurate representation of the locations of every school or child care facility, and will be changed as new information is available. The registered offender is

responsible for ensuring that proposed residence is in compliance with the law, and may not rely solely on this layer. The registered offender should seek legal advice from a licensedattorney if needed.Date created: 5/15/2017

Last Data Uploaded: 5/13/2017 11:18:14 PM

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Warren County, IA

Parcel ID 01000090482

Sec/Twp/Rng 9-77-23

Property Address

Alternate ID 01000090485

Class A

Acreage 22.5

Owner Address WYCKOFF HOME PLACE LLC

15465 BRIGGS ST

CARLISLE IA 50047

District 01151

Brief Tax Description 9-77-23 S 30A SE NW EX PCL'S A,T,U

(Note: Not to be used on legal documents)

Disclaimer:

The maps included in this website do not represent a survey and are compiled from official records, including plats, surveys, recorded deeds, and contracts, and only containinformation required for government purposes. No warranties, expressed or implied, are provided for the data herein, its use or its interpretation. Warren County assumes no

responsibility for use or interpretation of the data. Any person that relies on any information obtained from this site does so at his or her own risk. All critical information should be

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ITEMS TO INCLUDE ON AGENDA

CITY OF CARLISLE, IOWA

Not to exceed $1,200,000 Water Revenue Capital Loan Notes

Resolution approving electronic bidding procedures and Official Statement.

NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE

CHAPTER 21 AND THE LOCAL RULES OF THE CITY.

- 1 -

May 22, 2017

The City Council of the City of Carlisle, State of Iowa, met in _______________ session,

in the Council Chambers, City Hall, 195 N. 1st Street, Carlisle, Iowa, at __________ _____.M.,

on the above date. There were present Mayor _______________, in the chair, and the following

named Council Members:

__________________________________________________

Absent: ___________________________________________

Vacant: ___________________________________________

* * * * * * *

- 2 -

Council Member ____________________ introduced the following resolution entitled

"RESOLUTION APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL

STATEMENT", and moved that the resolution be adopted. Council Member

____________________ seconded the motion to adopt. The roll was called and the vote was,

AYES: ___________________________________________

___________________________________________

NAYS: ___________________________________________

Whereupon, the Mayor declared the resolution duly adopted as follows:

RESOLUTION APPROVING ELECTRONIC BIDDING

PROCEDURES AND OFFICIAL STATEMENT

WHEREAS, in conjunction with its Financial Advisor, PFM Financial Advisors, LLC,

the City has caused a Preliminary Official Statement to be prepared outlining the details of the

proposed sale of the Notes; and

WHEREAS, the Council has received information from its Financial Advisor evaluating

and recommending the procedure hereinafter described for electronic, facsimile and internet

bidding to maintain the integrity and security of the competitive bidding process and to facilitate

the delivery of bids by interested parties; and

WHEREAS, the Council deems it in the best interests of the City and the residents

thereof to receive bids to purchase such Notes by means of both sealed and electronic internet

communication.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY

OF CARLISLE, STATE OF IOWA:

Section 1. That the preliminary Official Statement in the form presented to this meeting

be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of

the Securities and Exchange Commission, subject to such revisions, corrections or modifications

as the Mayor and Clerk, upon the advice of bond counsel and the City's Financial Advisor, shall

determine to be appropriate, and is authorized to be distributed in connection with the offering of

the Notes for sale.

Section 2. That the receipt of electronic bids by facsimile machine and through the

PARITY® Competitive Bidding System described in the Official Statement are hereby found

and determined to provide reasonable security and to maintain the integrity of the competitive

bidding process, and to facilitate the delivery of bids by interested parties in connection with the

offering at public sale.

- 3 -

PASSED AND APPROVED this __________ day of _______________, 2017.

Mayor

ATTEST:

City Clerk

CERTIFICATE

STATE OF IOWA

COUNTY OF WARREN

)

) SS

)

I, the undersigned City Clerk of the City of Carlisle, State of Iowa, do hereby certify that

attached is a true and complete copy of the portion of the records of the City showing

proceedings of the Council, and the same is a true and complete copy of the action taken by the

Council with respect to the matter at the meeting held on the date indicated in the attachment,

which proceedings remain in full force and effect, and have not been amended or rescinded in

any way; that meeting and all action thereat was duly and publicly held in accordance with a

notice of meeting and tentative agenda, a copy of which was timely served on each member of

the Council and posted on a bulletin board or other prominent place easily accessible to the

public and clearly designated for that purpose at the principal office of the Council pursuant to

the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable

advance notice to the public and media at least twenty-four hours prior to the commencement of

the meeting as required by law and with members of the public present in attendance; I further

certify that the individuals named therein were on the date thereof duly and lawfully possessed of

their respective City offices as indicated therein, that no Council vacancy existed except as may

be stated in the proceedings, and that no controversy or litigation is pending, prayed or

threatened involving the incorporation, organization, existence or boundaries of the City or the

right of the individuals named therein as officers to their respective positions.

WITNESS my hand and the seal of the Council hereto affixed this __________ day of

_______________, 2017.

(SEAL)

City Clerk, City of Carlisle, State of Iowa

01337478-1\13663-077

TERMS OF OFFERING DATED MAY 22, 2017

New Issue Rating: Non Rated Subject to the City’s compliance with certain covenants, under present law, in the opinion of Ahlers & Cooney, P.C., Bond Counsel, interest on the Notes is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax imposed on individuals and corporations; however, with respect to corporations, such interest is included in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Interest on the Notes is not exempt from present Iowa income taxes. The Notes will be designated as “qualified tax-exempt obligations.” See “TAX MATTERS” herein.

CITY OF CARLISLE, IOWA

$730,000* Water Revenue Capital Loan Notes, Series 2017B Dated: July 12, 2017 Principal Due: June 1, 2018-2027 The $730,000* Water Revenue Capital Loan Notes, Series 2017B (the “Notes”) of the City of Carlisle, Iowa (the “City”) are being issued pursuant to Division V of Chapter 384 and Sections 384.24A and 384.83 of the Code of Iowa, as amended, and a resolution to be adopted by the City Council of the City. The Notes are being issued to provide funds to pay the costs of improvements and extensions to the City’s Municipal Water Utility (the “Water Utility”), including the Northwest Water Main Extension project, construction of new water main extensions, hydrants, acquisition of easements and related site work. The purchaser of the Notes agrees to enter into a loan agreement (the “Loan Agreement”) with the City. THE NOTES ARE NOT GENERAL OBLIGATIONS OF THE CITY, but are payable solely and only from a pledge of net revenues of the City’s Water Utility. The Notes will be issued as fully registered Notes without coupons and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the Notes. Individual purchases may be made in book-entry-form only, in the principal amount of $5,000 and integral multiples thereof. Purchasers will not receive certificates representing their interest in the Notes purchased. Principal of the Notes, payable annually on each June 1, beginning June 1, 2018 and interest on the Notes, payable initially on December 1, 2017 and thereafter on each June 1 and December 1, will be paid to DTC by the City’s Registrar/Paying Agent, Bankers Trust Company, Des Moines, Iowa (the “Registrar”). DTC will in turn remit such principal and interest to its participants for subsequent disbursements to the beneficial owners of the Notes as described herein. Interest and principal shall be paid to the registered holder of a note as shown on the records of ownership maintained by the Registrar as of the fifteenth day of the month preceding such interest payment date (the “Record Date”). The Notes will mature June 1 in the years and amounts as follows:

Year

Amount*

Interest

Rate

Yield

Price

CUSIPS Base

142387

2018 $65,000 _____% _____% ______ _____ 2019 65,000 _____% _____% ______ _____ 2020 70,000 _____% _____% ______ _____ 2021 70,000 _____% _____% ______ _____ 2022 70,000 _____% _____% ______ _____ 2023 75,000 _____% _____% ______ _____ 2024 75,000 _____% _____% ______ _____ 2025 80,000 _____% _____% ______ _____ 2026 80,000 _____% _____% ______ _____ 2027 80,000 _____% _____% ______ _____

INTEREST: Interest on the Notes will be payable on December 1, 2017 and semiannually thereafter. REDEMPTION: Notes due after June 1, 2025 will be subject to call for prior redemption on said date or on any date thereafter

upon terms of par plus accrued interest to date of call. BANKERS’ BANK has agreed to purchase the Notes from the City for an aggregate price of $______________ plus accrued interest to the date of delivery. The Notes are offered, subject to prior sale, withdrawal or modification, when, as, and if issued subject to the legal opinion of Ahlers & Cooney, P.C., Bond Counsel, of Des Moines, Iowa, to be furnished upon delivery of the Notes. It is expected the Notes will be available for delivery on or about July 12, 2017. *Preliminary; subject to change.

BANKERS’ BANK Madison, Wisconsin

Copyright 2017 American Bankers Association. CUSIP data herein is provided by Standard & Poor’s

CUSIP Service Bureau, a division of the McGraw-Hill Companies, Inc.

CITY OF CARLISLE, IOWA

City Council Ruth Randleman Mayor Eric Goodhue Council Member Dan McCulloch Council Member Doug Hammerand Council Member Drew Merrifield Council Member Robert Van Ryswyk Council Member

Administration

Andrew Lent, City Administrator Martha Becker, City Clerk

City Attorney

Robert Stuyvesant Carlisle, Iowa

Bond Counsel

Ahlers & Cooney, P.C. Des Moines, Iowa

Municipal Advisor

PFM Financial Advisors LLC Des Moines, Iowa

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TERMS OF OFFERING

CITY OF CARLISLE, IOWA

This Terms of Offering contains information relating to the City of Carlisle, Iowa (the “City”) and its issuance of $730,000* Water Revenue Capital Loan Notes, Series 2017B (the “Notes”). This Terms of Offering has been executed on behalf of the City and may be distributed in connection with the sale of the Notes authorized therein. Inquiries may be made to PFM Financial Advisors LLC, 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309 or by telephoning 515-243-2600. Information can also be obtained from Mr. Andrew Lent, City Clerk/Administrator, City of Carlisle, 195 N. First Street, Carlisle, Iowa, 50047, or by telephoning 515-989-3224.

DETAILS OF THE NOTES

WATER REVENUE CAPITAL LOAN NOTES, SERIES 2017B in the principal amount of $730,000*, will be dated the date of delivery (July 12, 2017), in the denomination of $5,000 or multiples thereof, and will mature June 1 as follows:

Year Amount* Year Amount*

2018 $65,000 2023 $75,000 2019 65,000 2024 75,000 2020 70,000 2025 80,000 2021 70,000 2026 80,000 2022 70,000 2027 80,000

AUTHORITY AND PURPOSE

The Notes are being issued pursuant to Division V of Chapter 384 and Sections 384.24A and 384.83 of the Code of Iowa, as amended, and a resolution to be adopted by the City Council of the City. The Notes are being issued to provide funds to pay the costs of improvements and extensions to the City’s Municipal Water Utility (the “Water Utility”), including the Northwest Water Main Extension project, construction of new water main extensions, hydrants, acquisition of easements and related site work.

The estimated sources and uses of the Notes are as follows: Sources of Funds Par Amount of Notes $730,000.00* Cash Contribution 28,000.00 Total Sources $758,000.00* Uses of Funds Deposit to Construction Account $650,000.00 Deposit to Reserve Account 73,000.00 Underwriter’s Discount 7,300.00 Cost of Issuance & Contingency 27,700.00 Total Uses $758,000.00*

*Preliminary, subject to change.

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INTEREST

Interest on the Notes will be payable on December 1, 2017 and semiannually on the first day of June and December thereafter. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to the rules of the MSRB.

OPTIONAL REDEMPTION

The Notes due after June 1, 2025 will be subject to call prior to maturity in whole, or from time to time in part, in any order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days prior to the date fixed for redemption to the registered owners of the Notes to be redeemed at the address shown on the registration books.

TERM NOTE OPTION

The Purchaser shall have the option of designating the Notes as serial notes or term notes, or both. The Purchaser must designate whether each of the principal amounts listed herein represent a serial maturity or a mandatory redemption requirement for a term note maturity. In any event, the stated principal amount scheduled shall be represented by either serial note maturities or mandatory redemption requirements, or a combination of both.

PAYMENT OF AND SECURITY FOR THE NOTES

This section contains a summary of the security provisions for the Notes. A detailed statement of security provisions is contained in the resolution authorizing the issuance of the Notes, which is available upon request of the City’s Municipal Advisor, PFM Financial Advisors LLC.

Water Source of Payment: THE NOTES ARE NOT GENERAL OBLIGATIONS OF THE CITY, but are payable solely and only from net revenues of the City’s Water Utility. Water Rate Covenant: The City covenants to adopt or continue in effect rates for all services rendered by the Water Utility to its customers, including the City, to produce gross revenues for the next fiscal year at least sufficient to pay the costs of operating, maintaining, repairing and insuring the Water Utility, including purchases at wholesale, if any, salaries, wages, and costs of materials and supplies and all other items normally included under recognized accounting practices (but does not include allowances for depreciation in the valuation of physical property, capital outlays or principal and interest payments on the outstanding water parity debt) (which such expenses are hereinafter sometimes referred to as the “Water Operating Expenses”), and to leave a balance of net revenues (the “Water Net Revenues”) equal to at least 125% of the principal and interest on all of the Notes and any Outstanding Water Obligations from time to time, as the same become due in the current fiscal year and to maintain a reasonable reserve for the payment of such principal and interest, as provided in the resolution for the Notes. Water Revenue Fund: The City covenants to establish a separate Water Revenue Fund (the “Water Revenue Fund”) to be used in maintaining and operating the Water Utility, and after payment of the Water Operating Expenses shall, to the extent hereinafter provided, be used to pay the principal of and interest on the Notes and any Outstanding Water Obligations, and to create and maintain the several separate funds as established in the resolution for the Notes. All of the Water Net Revenues remaining after first making the required payments into the Water Sinking Fund (as defined below) and the Water Reserve Fund (as defined below), may be used to pay for extraordinary repairs or replacements to the Water Utility, or may be used to pay or redeem the Notes or any Outstanding Water Obligations or for any lawful purpose. Water Sinking Fund: The City covenants to maintain a Water Revenue Note and Interest Sinking Fund (the “Water Sinking Fund”). The required amount to be deposited in the Water Sinking Fund in any month shall be an amount not less than one-twelfth (1/12) of the principal of the Notes and any Outstanding Water Obligations maturing in the next succeeding year, plus a sum equal to one-sixth (1/6) of the interest becoming due on the next succeeding interest

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payment date on the Notes and any Outstanding Water Obligations. If for any reason the amount on hand in the Water Sinking Fund exceeds the required amount, the excess shall forthwith be withdrawn and paid into the Water Revenue Fund. Money in the Water Sinking Fund shall be used solely and only for the purpose of paying principal of and interest on the Notes and any Outstanding Water Obligations as the same shall become due and payable. Water Reserve Fund: The City covenants to maintain a separate Water Revenue Debt Service Reserve Fund (the “Water Reserve Fund”). In each month there shall be deposited in the Water Reserve Fund an amount equal to 25 percent of the amount required by the resolution for the Notes to be deposited in such month in the Water Sinking Fund; provided, however, that when the amount on deposit in the Water Reserve Fund shall be not less than the Water Reserve Fund requirement, no further deposits shall be made into the Water Reserve Fund except to maintain such level, and when the amount on deposit in the Water Reserve Fund is greater than the balance required, such additional amounts shall be withdrawn and paid into the Water Revenue Fund. The City covenants to maintain a Water Reserve Fund in an amount equal to the lesser of 1) the maximum annual amount of the principal and interest coming due on the Notes and any other parity debt or 2) 10% of the stated principal amount of the Notes and any other parity debt, or 3) 125% of average annual principal and interest coming due on the Notes and any other parity debt. After delivery of the Notes, the Water Reserve Fund requirement is estimated to be approximately $73,000, which represents 10% of the stated principal amount of the Notes and any other parity debt. Additional Notes Test: The City reserves the right and privilege to issue additional water revenue obligations, from time to time, payable from the same source and ranking on a parity with the outstanding Notes, in order to pay the cost of future extensions, additions, improvements or replacements to the Water Utility or for refunding any of the outstanding Notes, the Outstanding Water Obligations and any other parity debt payable from the Net Revenues of the Water Utility, but before any such notes ranking on a parity are issued, there will have been procured a statement of an independent auditor, independent financial consultant or consulting engineer, not a regular employee of the City, reciting the opinion based upon necessary investigations that the Net Revenues of the Water Utility for the preceding fiscal year (with permitted adjustments) were equal to at least 1.25 times the maximum amount that will be required in any fiscal year for both principal of and interest on all of the Notes and any other parity debt then outstanding and the obligations then proposed to be issued.

BOOK-ENTRY-ONLY ISSUANCE

The information contained in the following paragraphs of this subsection “Book-Entry-Only Issuance” has been extracted from a schedule prepared by Depository Trust Company (“DTC”) entitled “SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING DTC AND BOOK-ENTRY-ONLY ISSUANCE.” The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC’s participants (the “Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and

4

other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (the “Indirect Participants”). DTC has Standard & Poor’s rating: AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (the “Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co., nor any other DTC nominee, will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date identified in a listing attached to the Omnibus Proxy. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to

5

Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC, is the responsibility of the City or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to Tender/Remarketing Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Securities to Tender/Remarketing Agent’s DTC account. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the City or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.

DELIVERY

The Notes will be delivered to the Purchaser via Fast Automated Securities Transfer (“FAST”) delivery with the Registrar holding the Notes on behalf of DTC, against full payment in immediately available cash or federal funds. The Notes are expected to be delivered within forty-five days after the sale. Should delivery be delayed beyond sixty days from the date of sale for any reason except failure of performance by the Purchaser, the Purchaser may withdraw their bid and thereafter their interest in and liability for the Notes will cease. When the Notes are ready for delivery, the City will give the Purchaser five working days’ notice of the delivery date and the City will expect payment in full on that date, otherwise reserving the right at its option to determine that the Purchaser failed to comply with the offer of purchase.

CONTINUING DISCLOSURE

This issue is exempt from Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, because the aggregate principal amount of the Notes and any other securities required to be integrated with the Notes is less than $1,000,000. The Purchaser acknowledges the Notes will be sold to not more than thirty-five accredited bank investors.

LITIGATION

The City is not aware of any threatened or pending litigation affecting the validity of the Notes or the City’s ability to meet its financial obligations.

RATING

The City has NOT requested a rating on the Notes.

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TAX MATTERS

Tax Exemptions and Related Considerations: Federal tax law contains a number of requirements and restrictions that apply to the Notes. These include investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of the note proceeds and facilities financed with note proceeds, and certain other matters. The City has covenanted to comply with all requirements that must be satisfied in order for the interest on the Notes to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the Notes to become includable in gross income for federal income tax purposes retroactively to the date of issuance of the Notes. Subject to the City’s compliance with the above referenced covenants, under present law, in the opinion of Bond Counsel, interest on the Notes is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. Prospective purchasers of the Notes should be aware that ownership of the Notes may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations. Bond Counsel will not express any opinion as to such collateral tax consequences. Prospective purchasers of the Notes should consult their tax advisors as to collateral federal income tax consequences. Interest on the Notes is not exempt from present Iowa income taxes. Ownership of the Notes may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Notes. Prospective purchasers of the Notes should consult their tax advisors regarding the applicability of any such state and local taxes. Qualified Tax-Exempt Obligations: The City will designate the Notes as “qualified tax-exempt obligations” under the exception provided in Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”). Tax Accounting Treatment of Discount and Premium on Certain Notes: The initial public offering price of certain Notes (the “Discount Notes”) may be less than the amount payable on such Discount Notes at maturity. An amount equal to the difference between the initial public offering price of Discount Notes (assuming that a substantial amount of the Discount Notes of that maturity are sold to the public at such price) and the amount payable at maturity constitutes original issue discount to the initial purchaser of such Discount Notes. Owners of Discount Notes should consult with their own tax advisors with respect to the determination of accrued original issue discount on Discount Notes for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Discount Notes. It is possible that, under applicable provisions governing determination of state and local income taxes, accrued interest on Discount Notes may be deemed to be received in the year of accrual even though there will not be a corresponding cash payment. The initial public offering price of certain Notes (the “Premium Notes”) may be greater than the amount of such Premium Notes at maturity. An amount equal to the difference between the initial public offering price of Premium Notes (assuming that a substantial amount of the Premium Notes of that maturity are sold to the public at such price) and the amount payable at maturity constitutes a premium to the initial purchaser of such Premium Notes. Purchasers of the Premium Notes should consult with their own tax advisors with respect to the determination of amortizable note premium on Premium Notes for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Premium Notes.

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Audits: The Internal Revenue Service (the “Service”) has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the Notes. If an audit is commenced, under current procedures the Service may treat the City as a taxpayer and the noteholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Notes until the audit is concluded, regardless of the ultimate outcome. Withholdings: Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the Notes, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any note owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any note owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes. Pending Legislation: Current and future legislative proposals, including some that carry retroactive effective dates, if enacted into law, or clarification of the Code may cause interest on the Notes to be subject, directly or indirectly, to federal income taxation, or otherwise prevent owners of the Notes from realizing the full current benefit of the tax status of such interest. From time to time proposals are made that could significantly reduce the benefit of, or otherwise affect, the exclusion from gross income of interest on obligations like the Notes. The introduction or enactment of any such legislative proposals or clarification of the Code may also affect, perhaps significantly, the market price for, or marketability of, the Notes. Prospective purchaser of the Notes should consult their own tax advisors regarding any pending or proposed tax legislation, as to which Bond Counsel expresses no opinion. The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Notes, and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any proposed or pending legislation, regulatory initiatives or litigation. Enforcement: There is no note trustee or similar person to monitor or enforce the terms of the resolutions for issuance of the Notes. In the event of a default in the payment of principal of or interest on the Notes, there is no provision for acceleration of maturity of the principal of the Notes. Consequently, the remedies of the owners of the Notes (consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the resolution for the Notes) may have to be enforced from year to year. In addition, the enforceability of the rights and remedies of owners of the Notes may be subject to limitation as set forth in Bond Counsel’s opinions. The opinions will state, in part, the obligations of the City with respect to the Notes may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereinafter enacted to the extent constitutionally applicable, and to the exercise of judicial discretion in appropriate cases.

NOTEHOLDER’S RISKS

An investment in the Notes is subject to certain risks. No person should purchase the Notes unless such person understands the risks described below and is willing to bear those risks. There may be other risks not listed below which may adversely affect the value of the Notes. An investment in the Notes is subject to certain risks. No person should purchase the Notes unless such person understands the risks described below and is willing to bear those risks. There may be other risks not listed below which may adversely affect the value of the Notes.

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Secondary Market Not Established: There is no established secondary market for the Notes, and there is no assurance that a secondary market will develop for the purchase and sale of the Notes. Prices of municipal notes traded in the secondary market, if any, are subject to adjustment upward and downward in response to changes in the credit markets and changes in the operating performance of the entities operating the facilities subject to bonded indebtedness. From time to time it may be necessary to suspend indefinitely secondary market trading in selected issues of municipal notes as a result of the financial condition or market position, prevailing market conditions, lack of adequate current financial information about the entity, operating the subject facilities, or a material adverse change in the operations of that entity, whether or not the subject Notes are in default as to principal and interest payments, and other factors which, may give rise to uncertainty concerning prudent secondary market practices. Municipal notes are generally viewed as long-term investments, subject to material unforeseen changes in the investor’s circumstances, and may require commitment of the investor’s funds for an indefinite period of time, perhaps until maturity. Matters Relating to Enforceability of Agreements: Holders of the Notes shall have and possess all the rights of action and remedies afforded by the common law, the Constitution and statutes of the State of Iowa and of the United States of America for the enforcement of payment of the Notes, including but not limited to, the right to a proceeding in the law or in equity by suit, action or mandamus to enforce and compel performance of the duties required by Iowa law and the resolution for the Notes. The practical realization of any rights upon any default will depend upon the exercise of various remedies specified in the resolution for the Notes. The remedies available to the owners of the Notes upon an event of default under the resolution for the Notes, in certain respects, may require judicial action, which is often subject to discretion and delay. Under existing law, including specifically the federal bankruptcy code, certain of the remedies specified in the resolution for the Notes may not be readily available or may be limited. A court may decide not to order the specific performance of the covenants contained in these documents. The legal opinion to be delivered concurrently with the delivery of the Notes will be qualified as to the enforceability of the various legal instruments by limitations imposed by general principals of equity and public policy and by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. No representation is made, and no assurance is given that the enforcement of any remedies with respect to such assets will result in sufficient funds to pay all amounts due under the resolution for the Notes, including principal of and interest on the Notes. Forward-Looking Statements: This Terms of Offering contains statements relating to future results that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When used in this Terms of Offering, the words “estimate,” “forecast,” “intend,” “expect” and similar expressions identify forward-looking statements. Any forward-looking statement is subject to uncertainty. Accordingly, such statements are subject to risks that could cause actual results to differ, possibly materially, from those contemplated in such forward-looking statements. Inevitably, some assumptions used to develop forward-looking statements will not be realized or unanticipated events and circumstances may occur. Therefore, investors should be aware there are likely to be differences between forward-looking statements and the actual results. These differences could be material and could impact the availability of funds of the City to pay debt service when due on the Notes. Tax Matters and Loss of Tax Exemption: As discussed under the heading “TAX MATTERS” herein, the interest on the Notes could become includable in gross income for purposes of federal income taxation retroactive to the date of delivery of the Notes, as a result of acts or omissions of the City in violation of its covenants in the resolution for the Notes. Should such an event of taxability occur, the Notes would not be subject to a special prepayment and would remain outstanding until maturity or until prepaid under the prepayment provisions contained in the Notes, and there is no provision for an adjustment of the interest rate on the Notes. It is possible that further legislation will be proposed or introduced that could result in changes in the way that tax exemption is calculated, or whether interest on certain securities are exempt from taxation at all. Prospective purchasers should consult with their own tax advisors regarding any pending or proposed federal income tax legislation.

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It is also possible actions of the City after the closing of the Notes will alter the tax status of the Notes, and, in the extreme, remove the tax exempt status from the Notes. In that instance, the Notes are not subject to mandatory prepayment and the interest rate on the Notes does not increase or otherwise reset. A determination of taxability on the Notes, after closing of the Notes, could materially adversely affect the value and marketability of the Notes. Pending Federal Tax Legislation: From time to time, there are Presidential proposals, proposals of various federal committees, and legislative proposals pending in Congress that could, if enacted, alter or amend one or more of the federal (or state) tax matters described herein in certain respects or would adversely affect the market value of the Notes or otherwise prevent holders of the Notes from realizing the full benefit of the tax exemption of interest on the Notes. Further, such proposals may impact the marketability or market value of the Notes simply by being proposed. It cannot be predicted whether or in what forms any of such proposals, either pending or that may be introduced, may be enacted and there can be no assurance that such proposals will not apply to the Notes. In addition regulatory actions are from time to time announced or proposed and litigation threatened or commenced, which if implemented or concluded in a particular manner, could adversely affect the market value, marketability or tax status of the Notes. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Notes would be impacted thereby. Nature of Obligation: The Notes are not general obligations of the City but are payable solely and only from the net revenues of the Water Utility. The Notes are not payable by, and have no recourse to, the power of taxation. The noteholders have no lien on or security interest in any of the physical assets of the City, including the Water Utility. Future revenues and expenses of the City, with respect to the Water Utility, are subject to conditions which may change in the future to an extent that cannot be determined at this time. Future events may occur that upset the assumptions upon which projections of revenues and expenses are based, in which case the projected revenues and expenses based on those assumptions may fail to materialize. Because no assurance can be made that actual events will correspond to such assumptions, no assurances can be made that the net revenues will be realized in amounts sufficient to pay the debt service on the Notes. Revenues and Expenses: Several factors not within the control of the City could affect the City’s ability to generate sufficient net revenues to pay the debt service on the Notes. These factors include, but are not limited to, inflation and adverse economic conditions, increases in operation and maintenance costs, unexpected repairs, replacements or improvements to the Water Utility and the ability of the City to supply the services demanded and to maintain necessary rates for those services. Any one of the above factors, among others, individually or combined may cause the City to be unable to generate sufficient net revenues to pay debt service on the Notes. DTC-Beneficial Owners: Beneficial Owners of the Notes may experience some delay in the receipt of distributions of principal of and interest on the Notes since such distributions will be forwarded by the Registrar to DTC and DTC will credit such distributions to the accounts of the Participants which will, thereafter, credit them to the accounts of the Beneficial Owner either directly or indirectly through indirect Participants. Neither the City nor the Registrar will have any responsibility or obligation to assure any such notice or payment is forwarded by DTC to any Participants or by any Participant to any Beneficial Owner. In addition, since transactions in the Notes can be effected only through DTC Participants, indirect participants and certain banks, the ability of a Beneficial Owner to pledge the Notes to persons or entities that do not participate in the DTC system, or otherwise to take actions in respect of such Notes, may be limited due to lack of a physical certificate. Beneficial Owners will be permitted to exercise the rights of registered Owners only indirectly through DTC and the Participants. See “Book-Entry Only Issuance.” Summary: The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Notes. In order for potential investors to identify risk factors and make an informed investment decision, potential investors should become thoroughly familiar with this entire Terms of Offering and the Appendices hereto to make a judgment as to whether the Notes are an appropriate investment.

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MUNICIPAL ADVISOR

The City has retained PFM Financial Advisors LLC, Des Moines, Iowa (the “Municipal Advisor”) in connection with the preparation of the City’s issuance of the Notes. The Municipal Advisor is not obligated to undertake, and has not undertaken, an independent verification of the accuracy, completeness, or fairness of the information contained in the Terms of Offering. PFM Financial Advisors LLC is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities.

CUSIP NUMBERS

It is anticipated the Committee on Uniform Security Identification Procedures (“CUSIP”) numbers will be printed on the Notes and the Purchaser must agree in the bid proposal to pay the cost thereof. In no event will the City, Bond Counsel or Municipal Advisor be responsible for the review or express any opinion that the CUSIP numbers are correct. Incorrect CUSIP numbers on said Notes shall not be cause for the Purchaser to refuse to accept delivery of said Notes.

FINANCIAL STATEMENTS

The City’s INDEPENDENT AUDITOR’S REPORT for the Fiscal Year ended June 30, 2016 is reproduced in APPENDIX C. The City’s certified public accountant has not consented to distribution of the audited financial statements and has not undertaken added review of their presentation. Further information regarding financial performance and copies of the City’s prior Independent Auditor’s Reports may be obtained from the City’s Municipal Advisor, PFM Financial Advisors LLC.

CERTIFICATION

The City has authorized the distribution of this Terms of Offering for use in connection with the initial sale of the Notes. I have reviewed the information contained within the Terms of Offering prepared on behalf of the City by PFM Financial Advisors LLC, Des Moines, Iowa, and to the best of my knowledge, information and belief, said Terms of Offering does not contain any material misstatements of fact nor omission of any material fact regarding the issuance of $730,000* Water Revenue Capital Loan Notes, Series 2017B. CITY OF CARLISLE, IOWA /s/ Andrew Lent, City Clerk/Administrator

* Preliminary; subject to change.

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SCHEDULE OF NOTE YEARS

$730,000*CITY OF CARLISLE, IOWA

Water Revenue Capital Loan Notes, Series 2017B

Notes Dated:Interest Due: December 1, 2017 and each June 1 and December 1 to maturityPrincipal Due: June 1, 2018-2027

CumulativeYear Principal* Note Years Note Years

2018 $65,000 57.60 57.602019 65,000 122.60 180.192020 70,000 202.03 382.222021 70,000 272.03 654.252022 70,000 342.03 996.282023 75,000 441.46 1,437.742024 75,000 516.46 1,954.192025 80,000 630.89 2,585.082026 80,000 710.89 3,295.972027 80,000 790.89 4,086.86

Average Maturity (dated date): 5.60 Years

* Preliminary; subject to change.

July 12, 2017

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DESCRIPTION OF THE MUNICIPAL WATER UTILITY SYSTEM

MANAGEMENT AND ADMINISTRATION The City owns and operates its water, electric and sewer utilities. All utilities are under the management of the mayor and a five person council. The city administrator assisted by a professional staff directs the Carlisle Utilities daily operations.

WATER SYSTEM FACILITIES

Water is supplied from four wells with a combined pumping capacity of approximately 900-1000 gallons per minute. The City has two storage tanks capable of providing 350,000 gallons of storage. Water treatment consists of fluoride and chlorination. Proceeds from the Notes will be used to construct new segments of the water distribution system.

WATER UTILITY RATES AND CHARGES

The City of Carlisle adopted the following rates and charges on August 8th 2016 and rates became effective beginning September 1st 2016 for water usage during the August-September billing period. Water Service within the City Minimum Monthly Charge - $6.50 $6.50 per 1,000 gallons used

Water Service outside the City Minimum Monthly Charge - $13.00 $13.00 per 1,000 gallons used

Bulk Water Sales $.25 per 22 1/2 gallons used Bulk water is a coin operated service picked up at the water treatment plant. In addition, the City is currently in the process of adopting a new water rate ordinance. Effective immediately upon final adoption and publication, the rates and charges for Water Service within the City will be as follows. Water Service within the City Minimum Monthly Charge - $7.00 $7.00 per 1,000 gallons used

WATER UTILITY SALES HISTORY AND TOTAL CHARGES

Fiscal Year

Total Gallons

Total Charges

2011-12 84,284,174 $420,395.51 2012-13 84,491,212 474,650.172013-14 83,565,991 470,227.562014-15 80,293,893 452,225.982015-16 82,136,445 462,132.99

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NUMBER OF WATER CUSTOMERS

Fiscal Year

Residential

Commercial/Industrial

Other

Total

2011-12 1,404 126 124 1,654 2012-13 1,412 128 130 1,670 2013-14 1,421 130 140 1,691 2014-15 1,439 133 147 1,719 2015-16 1,491 132 154 1,777

LARGER WATER UTILITY CUSTOMERS (FY 2015-16)

Customer Name

Total Gallons

% of Total Water System Consumption

Carlisle Care Center 3,288,700 4.00% Carlisle Auto Wash LLC 1,751,000 2.13% City of Carlisle 1,277,000 1.55% Goodhue Realty 900,800 1.10% Carlisle Community Schools/Middle School 779,100 0.95% Carlisle Community Schools/Early Childhood 750,000 0.91% Casey’s General Store 734,000 0.89% Carlisle Community School/Softball Concession 414,800 0.51% Baskerville, Richard 411,500 0.50% Goodhue Realty 373,000 0.45%

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WATER UTILITY HISTORICAL CASHFLOW AND ANTICIPATED DEBT SERVICE COVERAGE

The following table represents the financial performance of the Water Utility for Fiscal Year 2012-13 through Fiscal Year 2015-16 using information from the City’s Audited Financial Statements. Based on the Fiscal Year 2015-16 Audited Financial Statements, the Water Utility produced net revenue for debt service of $153,968 which would produce 1.76 times debt service coverage of the anticipated $87,336 maximum annual debt service in the Fiscal Year 2024-25 (including the Notes). In addition, the table below provides a projection of the Water Utility’s anticipated operating revenues and expenditures for Fiscal Year 2016-17. The projected financial performance cannot be guaranteed and is subject to change.

BudgetFY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17

Operating RevenuesWater Usage Revenues $490,792 $468,230 $450,658 $457,764 $514,934

General Mills 0 0 0 0 0Service Charge Revenues 0 0 0 0 0

Penalties 1,943 1,793 1,951 1,847 2,000Sales Taxes 26,121 25,574 24,818 24,587 26,000

Miscellaneous Revenues 7,004 14,155 23,937 29,141 38,000Total Operating Revenues $525,860 $509,752 $501,365 $513,339 $580,934

Operating ExpensesPersonal Services $207,329 $191,543 $207,744 $142,084 $146,909

Contractual Services 148,800 183,532 155,403 156,010 173,744Commodities 65,645 57,956 31,649 50,494 47,500Sales Taxes 24,176 26,513 25,116 23,663 26,000

Total Operating Expense $445,950 $459,544 $419,912 $372,251 $394,153

Operating Income $79,910 $50,208 $81,453 $141,088 $186,781Investment Interest 3,761 2,202 2,123 1,698 2,560Tower Agreements 31,401 18,416 12,553 11,182 10,665

Revenue Available for D/S $115,072 $70,826 $96,129 $153,968 $200,006

Water Debt ServiceSeries 2003 Water Bonds $36,400 $0 $0 $0 $0

Series 2017B Water Notes 0 0 0 0 0Total Revenue Debt $36,400 $0 $0 $0 $0

Debt Service CoverageNet Revenues/ Revenue Debt 3.16 N/A N/A N/A N/A

Net Revenues / All Debt 3.16 N/A N/A N/A N/A

Cashflow after Debt Service $78,672 $70,826 $96,129 $153,968 $200,006

Audited Financial Statements

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WATER UTILITY REVENUE DEBT

The City has revenue debt outstanding payable solely from net revenues of the Water Utility as follows (includes the Notes):

Date

of Issue

Original Amount

Purpose

Final

Maturity

Principal Outstanding

As of 07/12/17

7/17B $730,000* Water Improvements 6/27 $730,000 * Annual Fiscal Year Debt Service Payments of Water Revenue Debt (Includes the Notes)

The Notes

Fiscal Year

Principal*

Principal and Interest*

2017-18 $65,000 $81,420 2018-19 65,000 82,321 2019-20 70,000 86,028 2020-21 70,000 84,551 2021-22 70,000 82,976 2022-23 75,000 86,289 2023-24 75,000 84,369 2024-25 80,000 87,336 2025-26 80,000 85,000 2026-27 80,000 82,544

Total $730,000*

* Preliminary; subject to change.

           

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APPENDIX A

GENERAL INFORMATION ABOUT THE CITY OF CARLISLE, IOWA

This section is included for informational purposes only. THE $730,000* Water Revenue Capital Loan Notes, Series 2017B (the “Notes”) ARE NOT GENERAL OBLIGATIONS OF THE CITY OF CARLISLE, IOWA (the “City”) but are payable solely and only from net revenues of the City’s Municipal Water Utility (the “Water Utility”). The Notes are not a debt of nor a charge against the City of Carlisle, Iowa (the “City”) within the meaning of any constitutional or statutory limitation or provision and are not payable in any manner by taxation, and the City shall not be liable by reason of the failure of the net revenues to be sufficient for the payment of the Notes. * Preliminary; subject to change.

           

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CITY INFORMATION

IOWA PROPERTY VALUATIONS

In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs the county auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The Polk and Warren County Auditors adjusted the final Actual Values for 2015. The reduced values, determined after the application of rollback percentages, are the taxable values subject to tax levy. For assessment year 2015, the taxable value rollback rate was 55.6259% of actual value for residential property; 86.2500% of actual value for multiresidential property; 46.1068% of actual value for agricultural property; and 90% of actual value for commercial, industrial, and railroad property. No adjustment was ordered for utility property because its assessed value did not increase enough to qualify for reduction. Utility property is limited to an 8% annual growth. The Legislature’s intent has been to limit the growth of statewide taxable valuations for the specific classes of property to 3% annually. Political subdivisions whose taxable values are thus reduced or are unusually low in growth are allowed to appeal the valuations to the State Appeal Board, in order to continue to fund present services.

PROPERTY VALUATIONS (1/1/2015 Valuations for Taxes payable July 1, 2016 through June 30, 2017)

100% Actual Value

Taxable Value (With Rollback)

Residential $168,717,030 $93,850,384 Commercial 21,595,030 19,149,295 Industrial 5,701,100 5,130,990 Multiresidential 7,814,920 6,740,372 Railroads 1,681,032 1,512,929 Utilities w/o Gas & Electric 391,177 391,177

Gross valuation $205,900,289 $126,775,147 Less military exemption (322,248) (322,248)

Net valuation $205,578,041 $126,452,899 TIF increment (used to compute debt service

levies and constitutional debt limit) $2,862,320 $2,862,320 Taxed separately Ag. Land & Buildings

$3,556,610

$1,639,839

Gas & Electric Utilities $926,255 $494,612

2015 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY

Taxable Valuation 1) Percent Total

Residential $93,850,384 73.74% Multiresidential 6,740,372 5.30% Commercial, Industrial, and all Utilities 25,166,074 19.77% Railroads 1,512,929 1.19%

Total Gross Taxable Valuation 1) $127,269,759 100.00%

1) Excludes Taxable TIF Increment and Ag. Land and Buildings.

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TREND OF VALUATIONS

Assessment Year

Payable Fiscal Year

100% Actual Valuation

Taxable Valuation (With Rollback)

Taxable TIF Increment

2012 2013-14 $201,682,835 $120,765,998 $64,938 2013 2014-15 204,287,736 122,810,315 1,052,937 2014 2015-16 207,189,975 122,869,955 2,942,620 2015 2016-17 212,923,226 126,947,511 2,862,320 2016 1) 2017-18 218,496,544 132,204,313 3,510,226

1) The City’s January 1, 2016 valuations are now available from the State of Iowa and will become effective July 1, 2017. The 100% Actual Valuations, before rollback and after the reduction of military exemption, include Ag. Land & Buildings, TIF Increment and Gas & Electric Utilities. The Taxable Valuations, with the rollback and after the reduction of military exemption include Gas & Electric Utilities and exclude Ag. Land & Buildings and Taxable TIF Increments. Iowa cities certify operating levies against Taxable Valuation excluding Taxable TIF Increment and debt service levies are certified against Taxable Valuation including the Taxable TIF Increment.

PROPERTY TAX LEGISLATION During the 2013 legislative session, the Iowa General Assembly enacted Senate File 295 (the “Act”), which the Governor signed into law on June 12, 2013. Among other things, the Act (i) reduced the maximum annual taxable value growth percent, due to revaluation of existing residential and agricultural property to 3%, (ii) assigned a “rollback” (the percentage of a property’s value that is subject to tax) to commercial, industrial and railroad property of 90%, (iii) created a new property tax classification for multi-residential properties (mobile home parks, manufactured home communities, land-lease communities, assisted living facilities and property primarily used or intended for human habitation containing three or more separate dwelling units) (“Multiresidential Property”), and assigned a declining rollback percentage of 3.75% to such properties for each year until the 2021 assessment year (the rollback percentage for Multiresidential Properties is equal to the residential rollback percentage in the 2022 assessment year and thereafter) and (iv) exempted a specified portion of the assessed value of telecommunication properties. The Act included a standing appropriation to replace some of the tax revenues lost by local governments, including tax increment districts, resulting from the new rollback for commercial and industrial property. Beginning in Fiscal Year 2017-18 the standing appropriation cannot exceed the actual Fiscal Year 2016-17 appropriation amount. The appropriation does not replace losses to local governments resulting from the Act’s provisions that reduce the annual revaluation growth limit for residential and agricultural properties to 3%, the gradual transition for Multiresidential Property to the residential rollback percentage, or the reduction in the percentage of telecommunications property that is subject to taxation. Given the wide scope of the statutory changes, and the State of Iowa’s discretion in establishing the annual replacement amount that is appropriated each year commencing in Fiscal Year 2017-18, the impact of the Act on the City’s future property tax collections is uncertain and the City is unable to accurately assess the financial impact of the Act’s provisions on the City’s future operations. Notwithstanding any decrease in property tax revenues that may result from the Act, Iowa Code section 76.2 provides that when an Iowa political subdivision issues general obligation notes, “the governing authority of these political subdivisions before issuing notes shall, by resolution, provide for the assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and principal of the notes within a period named not exceeding twenty years. A certified copy of this resolution shall be filed with the county auditor or the auditors of the counties in which the political subdivision is located; and the filing shall make it a duty of the auditors to enter annually this levy for collection from the taxable property within the boundaries of the political subdivision until funds are realized to pay the notes in full.”

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From time to time, other legislative proposals may be considered by the Iowa General Assembly that would, if enacted, alter or amend one or more of the property tax matters described in this Terms of Offering. It cannot be predicted whether or in what forms any of such proposals may be enacted, and there can be no assurance that such proposals will not apply to valuation, assessment or levy procedures for the levy of taxes by the City.

LARGER TAXPAYERS

Set forth in the following tables are the persons or entities which represent the larger taxpayers within the boundaries of the City, as provided by the Polk and Warren Counties Auditor’s Office. No independent investigation has been made of and no representation is made herein as to the financial condition of any of the taxpayers listed below or that such taxpayers will continue to maintain their status as major taxpayers in the City. The City’s mill levy is uniformly applicable to all of the properties included in the table, and thus taxes expected to be received by the City from such taxpayers will be in proportion to the assessed valuations of the properties. The total tax bill for each of the properties is dependent upon the mill levies of the other taxing entities which overlap the properties.

Taxpayer 1)

Property Classification

1/1/2015 Taxable Valuation 2)

Heartland Co-op Commercial $4,610,691 General Mills Commercial 4,477,500 Fareway Stores, Inc. Commercial 1,907,820 Pacifica Health Services LLC Commercial 1,819,961 Carlisle Assisted Living LLC Residential 1,306,256 Goodhue Realty Co. Commercial 1,130,021 Union Pacific Railroad Commercial 1,078,725 Peco Dollar Store Carlisle LLC Commercial 748,710 Thunder Road LLC Residential 704,048 Greubel, John T Rev Tst Residential 630,964

1) This list represents some of the larger taxpayers in the City, not necessarily the 10 largest taxpayers. 2) The 1/1/2015 Taxable valuations listed represent only those valuations associated with the title holder and may not necessarily

represent the entire taxable valuation.

Source: Polk and Warren Counties Auditor’s Office.

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CITY INDEBTEDNESS

DEBT LIMIT

Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county, municipality or other political subdivision to no more than 5% of the actual value of all taxable property within the corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2016 actual valuation currently applicable to the fiscal year 2017-18, is as follows:

2016 Actual Valuation of Property $218,496,544 1)

Legal Debt Limit of 5% 0.05 Legal Debt Limit $10,924,827 Less: Outstanding G.O Debt subject to Debt Limit (5,395,000) Less: Other Debt subject to Debt Limit (117,391) 2)

Net Debt Limit $5,412,436

1) Based on 100% assessed values as reported by the Iowa Department of Management, after military exemptions. Actual valuation of property has not yet been reported for the Fiscal Year 2018 county tax rolls.

2) Includes a loan with Warren County and currently appropriated TIF rebate agreements.

DIRECT DEBT

General Obligation Debt Paid by Taxes and Special Assessments

Date

of Issue

Original Amount

Purpose

Final

Maturity

Principal Outstanding

As of 07/12/17

10/09B $1,020,000 City Improvements 6/19 $225,000 5/11A 2,300,000 City Improvements & Refunding 6/22 955,000 5/12A 1,335,000 City Improvements 6/22 750,000 8/13A 620,000 City Improvements 6/20 315,000 8/15A 1,015,000 City Improvements 6/29 980,000 5/16B 1,120,000 City Improvements 6/27 1,070,000

Total General Obligation Debt paid by Taxes & Special Assessments $4,295,000 General Obligation Debt Paid by LOST

Date

of Issue

Original Amount

Purpose

Final

Maturity

Principal Outstanding

As of 07/12/17

2/17A $1,100,000 Fire Station Remodel & Equipment 6/27 $1,100,000 Total General Obligation Debt Subject to Debt Limit $5,395,000

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OTHER DEBT

The City has revenue debt outstanding payable solely from net revenues of the sewer and electric utilities as follows:

Date

of Issue

Original Amount

Purpose

Security

Final

Maturity

Principal Outstanding

As of 07/12/17

10/12B $995,000 Electric Project Electric Revenues 6/23 $600,000 10/15B 625,000 Sewer Project/Litigation Sewer Revenues 6/26 525,000 4/16A 1,325,000 Sewer Refunding Sewer Revenues 6/23 1,150,000 Total $2,275,000

Subordinate Sewer Revenue Debt

The City has subordinate sewer revenue debt payable solely from the net revenues of the sewer utility as follows:

Date

of Issue

Original Amount

Purpose

Final

Maturity

Principal Outstanding

As of 07/12/17

10/11 $1,026,000 Sewer Project (USDA Loan) 6/51 $945,689 1) Source: The USDA as of April 20, 2017.

INDIRECT GENERAL OBLIGATION DEBT

1/1/2016 Taxable

Portion of Taxable

Valuation Percent City’s

Proportionate Taxing District Valuation 1) Within City In City G.O. Debt 2) Share

Polk County $23,544,740,044 $13,544,280 0.06% $270,814,000 $162,488 Warren County 2,153,224,397 123,890,277 5.75% 133,703 7,688 Carlisle CSD 332,231,652 137,434,557 41.37% 2,630,000 1,088,031 Des Moines Area Comm. College 44,182,123,623 137,434,557 0.31% 80,145,000 248,450 City share of total overlapping debt $1,506,657

1) Taxable Valuation includes Ag. Land & Buildings, all Utilities and Taxable TIF Increment. 2) Includes general obligation bonds, PPEL notes, certificates of participation and new jobs training certificates. DEBT RATIOS

G.O. Debt

Debt/Actual Market Value

($218,496,544) 1)

Debt/3,876

Population 2) Total General Obligation Debt $5,395,000 2.47% $1,391.90 City's share of overlapping debt $1,506,657 0.69% $388.71

1) Based on the City’s 2016 Actual Valuation; includes Ag. Land & Buildings, all Utilities and Taxable TIF Increment. 2) Based on the City’s 2010 U.S. Census.

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LEVIES AND TAX COLLECTIONS

Collected During Percent Fiscal Year Levy Collection Year Collected

2012-13 $1,598,268 $1,676,067 104.87% 2013-14 1,671,807 1,678,362 100.39% 2014-15 1,731,036 1,777,334 102.67% 2015-16 1,816,752 1,859,569 102.36% 2016-17 1,877,569 -------------In Process of Collection------------

Collections include delinquent taxes from all prior years. Taxes in Iowa are delinquent each October 1 and April 1 and a late payment penalty of 1% per month of delinquency is enforced as of those dates. If delinquent taxes are not paid, the property may be offered at the regular tax sale on the third Monday of June following the delinquency date. Purchasers at the tax sale must pay an amount equal to the taxes, special assessments, interest and penalties due on the property and funds so received are applied to taxes. A property owner may redeem from the regular tax sale but, failing redemption within three years, the tax sale purchaser is entitled to a deed, which in general conveys the title free and clear of all liens except future tax installments.

Source: Polk and Warren Counties Auditor’s office.

TAX RATES

FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 $/$1,000 $/$1,000 $/$1,000 $/$1,000 $/$1,000

Polk County 1) 10.07059 10.25715 10.60460 10.84198 10.39630 Warren County 2) 6.16946 6.09558 6.09176 6.15660 6.22250 City of Carlisle 13.80444 13.80315 14.14457 14.64077 14.65191 Carlisle CSD 18.57766 17.91246 17.91215 17.91101 17.91087 Des Moines Area Comm. College 0.58466 0.69120 0.65724 0.67574 0.72334 Des Moines Area Regional Transit 0.38100 0.46100 0.52600 0.59100 0.61100 State of Iowa 0.00330 0.00330 0.00330 0.00330 0.00330

Total Tax Rate:

Polk County Resident 43.42165 43.12826 43.84786 44.66380 44.29672

Warren County Resident 39.52052 38.96669 39.33502 39.97842 40.12292

1) Polk County tax rate includes County-wide, County Assessor, County Ag. Extension and Broadlawns Hospital tax rates. 2) Warren County tax rate includes County-wide, County Assessor and County Ag. Extension tax rates.

LEVY LIMITS A city’s general fund tax levy is limited to $8.10 per $1,000 of taxable value, with provision for an additional $0.27 per $1,000 levy for an emergency fund which can be used for general fund purposes (Code of Iowa, Chapter 384, Division I). Cities may exceed the $8.10 limitation upon authorization by a special levy election. Further, there are limited special purpose levies which may be certified outside of the above described levy limits (Code of Iowa, Section 384.12). The amount of the City’s general fund levy subject to the $8.10 limitation is $8.10 for Fiscal Year 2016-17. The City does levy for liability, property and self-insurance costs; support of a local emergency management committee; and employee benefits in addition to the $8.10 general fund limit as authorized by law. Currently, the City does not levy for an emergency fund. Debt service levies are not limited.

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FUNDS ON HAND (Cash and Investments as of April 13, 2017)

General Fund $209,493.85 Cemetery Fund 45,499.75 Cemetery Perpetual Care 48,996.45 Special Revenue 278,683.42 Tax Abatement Fund 0.00 Road Use Tax 294,988.14 Debt Service 990,083.31 Trust & Agency/Expendable 1,349.85 Trust & Agency/Non-expendable 45,551.00 Water Fund 553,066.59 Water Sinking Fund 7,984.84 Water Improvement 17,917.64 Water Reserve Fund 28,000.00 Electric Fund 602,095.42 Electric Sinking Fund 78,588.43 Electric Improvement 90,732.70 Electric Reserve Fund 100,000.00 Fire Station Addition Project 0.00 South 5th Street Culvert 297,323.00 Self-Funded Insurance (9,240.30) 1)

8th Street Project 173,574.62 Park-Land Acquisition 1,617.67 Sewer – Capital Project 0.00 Sewer – Lagoon Project (2,630.79) 1)

52nd Street Relocation (17,473.49) 2)

Special Revenue TIF 8,123.34 Library Campaign 0.00 County Line Road Project 312,137.15 Volunteer Creek Watershed (65,778.27) 3)

Vision Iowa Trails Project (156,286.80) 3)

Dangerous & Dilapidated Bldg 14,042.89 Sp. Rev. Fund Urban Renewal #3 26,643.72 Police Seized Funds 3,159.68 Capital Fund Projects 216,932.89

Total Cash and Investments $4,195,176.70 1) Deficit will be eliminated by transfer of funds. 2) Deficit will be eliminated by transfer from reserve. 3) Deficit will be eliminated by reimbursement.

           

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APPENDIX B

FORM OF LEGAL OPINION

           

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Ahlers & Cooney, P.C. Attorneys at Law 100 Court Avenue, Suite 600 Des Moines, Iowa 50309-2231 Phone: 515-243-7611 Fax: 515-243-2149 www.ahlerslaw.com

Wishard & Baily – 1888, Guernsey & Baily – 1893, Baily & Stipp – 1901, Stipp, Perry, Bannister & Starzinger – 1914, Bannister, Carpenter, Ahlers & Cooney – 1950, Ahlers, Cooney, Dorweiler, Allbee, Haynie & Smith – 1974, Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C. – 1990

DRAFT

We hereby certify that we have examined a certified transcript of the proceedings of the City Council and acts of administrative officers of the City of Carlisle, State of Iowa (the "Issuer"), relating to the issuance of Water Revenue Capital Loan Notes, Series 2017B, by said City, dated July 12, 2017, in the denomination of $5,000 or multiples thereof, in the aggregate amount of $__________ (the "Notes").

We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion as bond counsel.

As to questions of fact material to our opinion, we have relied upon representations of the Issuer contained in the resolution authorizing the Loan Agreement and issuance of the Notes (the "Resolution") and in the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify the same by independent investigation.

Based on our examination and in reliance upon the certified proceedings and other certifications described above, we are of the opinion, under existing law, as follows:

1. The Issuer is duly created and validly existing as a body corporate and politic and political subdivision of the State of Iowa with the corporate power to adopt and perform the Resolution and Loan Agreement and issue the Notes.

2. The Resolution has been duly adopted by the Issuer and constitutes a valid and binding obligation of the Issuer enforceable upon the Issuer. The Resolution creates a valid lien on the Net Revenues of the Municipal Water Utility pledged by the Resolution for the security of the Notes.

The lien of the Notes ranks on a parity as to the pledge of Net Revenues with respect to Additional Obligations. The right to issue Additional Obligations is reserved upon conditions set forth in the Resolution.

3. The Notes have been duly authorized, issued and delivered by the Issuer and are valid and binding special obligations of the Issuer, payable solely from the sources provided therefor in the Resolution.

4. Interest on the Notes is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in the preceding sentence is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Notes in order that the interest

DRAFT City of Carlisle, State of Iowa $__________ Water Revenue Capital Loan Notes, Series 2017B Page 2

thereon be, and continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause interest on the Notes to be included in gross income for federal income tax purposes retroactively to the date of issuance of the Notes.

We express no opinion regarding the accuracy, adequacy, or completeness of the Official Statement or other offering material relating to the Notes. Further, we express no opinion regarding tax consequences arising with respect to the Notes other than as expressly set forth herein.

The rights of the owners of the Notes and the enforceability of the Notes are limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors' rights generally, and by equitable principles, whether considered at law or in equity.

This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur.

Respectfully submitted,

01337528-1\13663-077

APPENDIX C

JUNE 30, 2016 INDEPENDENT AUDITOR’S REPORTS

           

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OFFICIAL PROPOSAL FORM

To: City Council of Pricing Date: June 8, 2017 City of Carlisle, Iowa RE: $730,000* Water Revenue Capital Loan Notes, Series 2017B (the “Notes”) For all or none of the above Notes, in accordance with the TERMS OF OFFERING, we will pay you $________________________ (not less than $722,700) plus accrued interest to date of delivery for fully registered Notes bearing interest rates and maturing in the stated years as follows:

Coupon Maturity Coupon Maturity

________ 2018 ________ 2023 ________ 2019 ________ 2024 ________ 2020 ________ 2025 ________ 2021 ________ 2026 ________ 2022 ________ 2027

* Preliminary; subject to change. The City reserves the right to increase or decrease the aggregate principal amount of the Notes and to increase or reduce each scheduled maturity thereof after the determination of the successful bidder. The City may increase or decrease each maturity in increments of $5,000 but the total amount to be issued will not exceed $1,200,000. Interest rates specified by the successful bidder for each maturity will not change. Final adjustments shall be in the sole discretion of the City.

The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal amount of the Notes is adjusted as described above. Any change in the principal amount of any maturity of the Notes will be made while maintaining, as closely as possible, the successful bidder's net compensation, calculated as a percentage of note principal. The successful bidder may not withdraw or modify its bid as a result of any post-bid adjustment. Any adjustment shall be conclusive, and shall be binding upon the successful bidder.

We hereby designate that the following Notes to be aggregated into term notes maturing on June 1 of the following years and in the following amounts (leave blank if no term Notes are specified):

Years Aggregated Maturity Year Aggregate Amount _______ through _______ _____________ _____________ _______ through _______ _____________ _____________ _______ through _______ _____________ _____________

In making this offer we accept all of the terms and conditions of the TERMS OF OFFERING dated May 22, 2017. In the event of failure to deliver these Notes in accordance with the TERMS OF OFFERING, we reserve the right to withdraw our offer. All blank spaces of this offer are intentional and are not to be construed as an omission. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: $_________________________ TRUE INTEREST COST: _________________________% (Dated date July 12, 2017) Account Manager: ___________________________________ By: ___________________________________ Account Members: ___________________________________________________________________________________________ The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Carlisle, Iowa this 12th day of June, 2017. Attest: _____________________________________ By: ________________________________________ Title: ______________________________________ Title: ___________________________________________

REVISED_SALE DETAILS DATE: May 9, 2017 ISSUER: City of Carlisle, Iowa BOND NAME: $730,000* Water Revenue Capital Loan Notes, Series 2017B BOND ATTORNEY: Ahlers & Cooney, PC

Individuals: Steve Nadel / Karen Evans

Sale Method: Negotiated with Bankers’ Bank

Pricing Date: June 8, 2017 @ 1:00 PM CST

Approve Notes: June 12, 2017 @ 6:30 PM CT

Notes Dated: July 12, 2017

Notes Delivered: July 12, 2017

Maturity: June 1, as follows:

Year Amount* Year Amount*

2018 $65,000 2023 $75,000 2019 65,000 2024 75,000 2020 70,000 2025 80,000 2021 70,000 2026 80,000 2020 70,000 2027 80,000

*Principal Adjustment: Preliminary; subject to change. The aggregate principal amount of the Bonds, and

each scheduled maturity thereof, are subject to increase or reduction by the City. The City may increase or decrease each maturity in increments of $5,000 but the total amount to be issued will not exceed $1,200,000. Interest rates specified by the purchaser for each maturity will not change. Final adjustments shall be in the sole discretion of the City.

The dollar amount of the purchase price proposed by the purchaser will be changed if the aggregate principal amount of the Bonds is adjusted as described above. Any change in the principal amount of any maturity of the Bonds will be made while maintaining, as closely as possible, the purchaser's net compensation, calculated as a percentage of bond principal.

First Interest: December 1, 2017 and semiannually thereafter. Interest will be computed on the

basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB.

Record Date: Close of business on the 15th day of the month (whether or not a business day) immediately preceding such payment date.

Cusip Numbers: The City will assume no obligation for the assignment or printing of CUSIP numbers

on the Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the purchaser, if the purchaser waives any delay in delivery occasioned thereby.

Call Feature: The Bonds due after June 1, 2025 will be subject to call for prior redemption on said date or on any date thereafter upon terms of par plus accrued interest to date of call.

Bid Parameters: The bid must conform to the following limitations: 1. Each annual maturity must bear a single rate of interest from the dated date of

the Bonds to the date of maturity. 2. Rates of interest bid must be in multiples of one-eighth or one-twentieth of

one percent. 3. The initial price to the public for each maturity must be 98% or greater.

Term Bond Option: The purchaser shall have the option of designating the Bonds as serial bonds or term bonds, or both. The purchaser must designate whether each of the principal amounts shown above represent a serial maturity or a mandatory redemption requirement for a term bond maturity. In any event, the principal amount scheduled shall be represented by either serial bond maturities or mandatory redemption requirements, or a combination of both.

No. of OS’es to Purchaser: TBD ~ NTE 20

Minimum Bid: $722,700

Good Faith: $7,300 (1%) from the purchaser ONLY

Registrar: Bankers Trust Company, N.A. Des Moines, Iowa

Book Entry Only: This offering will be issued as fully registered Bonds and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York.

Financial Advisor: PFM Financial Advisors LLC, Des Moines Office Individual: Susanne Gerlach

Tax Matters: The Bonds WILL be designated as qualified tax-exempt obligations. The Bonds will be federal and state tax-exempt

Schedule of Events: April 10: Set public hearing (NTE $1,200,000) April 24: Hold Public hearing May 10: Terms of Offering to Susanne May 11: Terms of Offering to City and Bond Counsel for review May 16: Terms of Offering to City for packets May 22: Approve Terms of Offering June 1: Send Terms of Offering to Sam at Bankers’ Bank June 8: Price Bonds (Negotiated with Bankers’ Bank) June 12: Approve Bankers’ Bank Pricing Jun 26: Authorize Final Documents Jul 12: Closing

City of Carlisle, Iowa EXHIBIT 2Water Revenue Capital Loan Notes, Series 2017B Assumes 10 Year Water Revenue Notes

SOURCES & USES DEBT SERVICE SCHEDULE

SOURCES Debt AnnualDate Principal Coupon Interest Service Debt Service

Par Amount of Bonds 730,000.00 ------------- ----------------- ------------- ----------------- ------------------ ------------------Accrued Interest 0.00Cash Contribution 28,000.00 1 12/1/2017 7,155 7,155

------------------- 1 6/1/2018 65,000 1.860% 9,265 74,265 81,420Total Sources 758,000.00 12/1/2018 8,661 8,661

2 6/1/2019 65,000 1.990% 8,661 73,661 82,32112/1/2019 8,014 8,014

USES 3 6/1/2020 70,000 2.110% 8,014 78,014 86,02812/1/2020 7,275 7,275

Deposit to Construction Account 650,000.00 4 6/1/2021 70,000 2.250% 7,275 77,275 84,551Deposit to Reserve Account 73,000.00 12/1/2021 6,488 6,488Capitalized Interest Account 0.00 5 6/1/2022 70,000 2.410% 6,488 76,488 82,976Municipal Bond Insurance 0.00 12/1/2022 5,644 5,644Underwriters' Discount ($10.00 per bond) 7,300.00 6 6/1/2023 75,000 2.560% 5,644 80,644 86,289Costs of Issuance 24,625.00 12/1/2023 4,684 4,684Accrued Interest 7 6/1/2024 75,000 2.710% 4,684 79,684 84,369Rounding Amount 3,075.00 12/1/2024 3,668 3,668

------------------- 8 6/1/2025 80,000 2.920% 3,668 83,668 87,336Total Uses 758,000.00 12/1/2025 2,500 2,500

9 6/1/2026 80,000 3.070% 2,500 82,500 85,00012/1/2026 1,272 1,272

ASSUMPTIONS 10 6/1/2027 80,000 3.180% 1,272 81,272 82,54412/1/2027

Dated Date 7/12/2017 11 6/1/2028Delivery Date 7/12/2017 12/1/2028First Interest Date 12/1/2017 12 6/1/2029First Principal Date 6/1/2018 12/1/2029Last Principal Date 6/1/2027 13 6/1/2030

12/1/203014 6/1/2031

12/1/203115 6/1/2032

12/1/2032Arbitrage Yield 2.74936% 16 6/1/2033TIC 2.94757% 12/1/2033AIC 3.63758% 17 6/1/2034Average Life 5.60 Years 12/1/2034

18 6/1/2035Proposed Projects 12/1/2035NW Water Main Extension 650,000$ 19 6/1/2036Reserved 0 12/1/2036

650,000$ 20 6/1/2037----------------- ------------- ----------------- ------------------ ------------------

730,000 112,831 842,831 842,831

Scale : MMD as of 05-09-2017 + 50 bps credit (BQ/NR) + 50 bps timing

Prepared by PFM Financial Advisors LLC 5/9/2017

Memo To: Carlisle City Council

From: Andrew J. Lent, City Administrator

Date: May 16, 2017

Re: Findings Report on Gateway Urban Renewal Area Amendment 1 and

Gateway Townhomes Urban Renewal Area Plan

The Carlisle Planning and Zoning Commission met at 7:00 PM on Monday, May 15, 2017 at Carlisle City Hall, 195 N 1st Street. At this meeting the Commission determined that the Gateway Urban Renewal Area Amendment 1 and the Gateway Townhomes Urban Renewal Area Plan both were in conformity with the general plan for development of the City as a whole and directed the city administrator to report on such findings to the City Council prior to the May 22, 2017 Council meeting.

ITEMS TO INCLUDE ON AGENDA

CITY OF CARLISLE, IOWA May 22, 2017

6:30 P.M.

Gateway Urban Renewal Plan • Public hearing on the proposed Amendment No. 1 to the Gateway Urban Renewal Plan

• Resolution determining an area of the City to be an economic development area, and that

the rehabilitation, conservation, redevelopment, development or a combination thereof, of such area is necessary in the interest of the public health, safety or welfare of the residents of the City; designating such area as appropriate for urban renewal projects; and adopting the Amendment No. 1 to the Gateway Urban Renewal Plan

IMPORTANT INFORMATION

1. The above agenda items should be included, along with any other agenda items, in the meeting agenda. The agenda should be posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the body holding the meeting. If no such office exists, the notice must be posted at the building in which the meeting is to be held.

2. If you do not now have a bulletin board designated as above mentioned, designate one

and establish a uniform policy of posting your notices of meeting and tentative agenda.

3. Notice and tentative agenda must be posted at least 24 hours prior to the commencement of the meeting.

NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY.

ii

May 22, 2017

The City Council of the City of Carlisle, State of Iowa, met in _______________ session, in the Council Chambers, City Hall, 195 N. First Street, Carlisle, Iowa, at 6:30 P.M., on the above date. There were present Mayor _______________, in the chair, and the following named Council Members:

__________________________________________________ Absent: ___________________________________________ Vacant: ___________________________________________

* * * * * * *

iii

This being the time and place fixed for a public hearing on the matter of the adoption of the proposed Amendment No. 1 to the Gateway Urban Renewal Plan, the Mayor first asked for the report of the City Administrator, or his delegate, with respect to the consultation held with the affected taxing entities to discuss the proposed Plan. The Council was informed that the consultation was duly held as ordered by the Council, and that __________ written recommendations were received from affected taxing entities. The report of the City Administrator, or his delegate, with respect to the consultation was placed on file for consideration by the Council.

The City also was informed that the proposed Amendment had been approved by the Planning and Zoning Commission as being in conformity with the general plan for development of the City as a whole, as set forth in the minutes or report of the Commission. The report or minutes were placed on file for consideration by the Council.

The Mayor then asked the City Clerk whether any written objections had been filed with respect to the proposed Amendment, and the City Clerk reported that __________ written objections thereto had been filed. The Mayor then called for any oral objections to the adoption of the Amendment No. 1 to the Gateway Urban Renewal Plan and __________ were made. The public hearing was then closed.

{Attach summary of objections here}

iv

Council Member ____________________ then introduced the following Resolution entitled "RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL PROJECTS; AND ADOPTING AMENDMENT NO. 1 TO THE GATEWAY URBAN RENEWAL PLAN" and moved:

that the Resolution be adopted.

to defer action on the Resolution and the proposal to the meeting to be held at __________ _____.M. on the __________ day of __________, 2017, at this place.

Council Member ____________________ seconded the motion. The roll was called and the vote was,

AYES: ___________________________________________

___________________________________________

NAYS: ___________________________________________

Whereupon, the Mayor declared the measure duly adopted.

1

RESOLUTION NO. ____________________ RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL PROJECTS; AND ADOPTING AMENDMENT NO. 1 TO THE GATEWAY URBAN RENEWAL PLAN

WHEREAS, by Resolution No. 2015071305, adopted July 13, 2015, this Council found

and determined that certain areas located within the City are eligible and should be designated as an urban renewal area under Iowa law, and approved and adopted the Gateway Urban Renewal Plan (the "Plan" or "Urban Renewal Plan") for the Gateway Urban Renewal Area (the "Area" or "Urban Renewal Area") described therein, which Plan is on file in the offices of the Recorder of Polk County and Recorder of Warren County; and

WHEREAS, this Urban Renewal Area currently includes and consists of:

• Gateway Business Park, Plat 1, Lots 1, 2, 5, 6, 7, 8, Parcel A and Parcel B (Warren County): Parcel No. 39820010050, 39820010060, 39820010070, 39820010080, 39820010041, 39820010031, 39820010020, and 39820010010.

• Scotch Ridge Business Park, Parcel E (Polk County): “A parcel of land is SW ¼ of the SW ¼ Sec. 33, T78N, R23W of the 5th P.M., Polk County, Iowa, identified as Parcel “E”, on Plat of Survey more particularly described as: Commencing at the SW Corner of said Sec. 33; thence N00°04’18”W, 160.55 ft. on the west line of SW ¼ of said Sec. 33 to the Point of Beginning; thence continuing N00°04’18”W, 81.77 ft. on said west line; thence N89°20’42”W, 208.00 ft; thence S00°06’42”W, 216.99 ft; thence N57°21’57W, 246.35 ft. to the Point of Beginning, containing 0.71 acre.” Parcel No. 131/00012-659-004.

• Scotch Ridge Business Park, Parcel I (Polk County): Parcel “I” of Section 33, Township 78 North, Range 23 West, of the 5th P.M., Polk County, Iowa, more particularly described as follows: Beginning at the Southeast corner of the Southwest one-quarter (SW ¼) of the Southwest one-quarter (SW ¼) of said Section 33; thence North 87°05’15” West, along the South line of said SW ¼ of the SW ¼, a distance of 240.17 feet; thence North 00°45’39” East, a distance of 50.00 feet; thence South 87°04’41” East, a distance of 239.32 feet to the East line of said SW ¼ of the SW ¼; thence South 00°12’58” East,

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along said line, a distance of 50.00 feet to the Point of Beginning, containing 0.27 acres, more or less, and subject to any easements or restrictions of record. (Recorded Polk County Book 11773/Page 843). Parcel No. 131/00012-659-006.

• Scotch Ridge Business Park (Polk County): All that part of the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., Polk County, Iowa, including Parcel "A" of Lots 1 & 2 Stebbeds Acres, as shown in Book 8940 Page 468 of the Polk County Recorder's Office, more particularly described as follows: Commencing at the Southwest Quarter comer of said Section 33; thence North 00 Degrees 08'23" West, along the West line of said Southwest Quarter, 242.28 feet to the Point of Beginning, also being the Northwest comer of Parcel "E" as shown in Book 8940 Page 467 of the Polk County Recorder's Office; thence North 00 Degrees 08'23" West, 1542.59 feet to the beginning of a curve concave to the west having a radius of 2441.80 feet and a central angle of 9 Degrees 13'51" and being subtended by a chord which bears North 16 Degrees 20'03" East 392.97 feet; thence northerly along said curve, 393.39 feet; thence North 09 Degrees 36'35" East, 442.59 feet; thence South 87 Degrees 12'02" East, 93.83 feet to the beginning of a curve tangent to said line; thence southeasterly 37.98 feet along the curve concave to the southwest, having a radius of 25.00 feet and a central angle of 87 Degrees 02'14"; thence South 00 Degrees 09'47" East tangent to said curve, 416.50 feet; thence South 87 Degrees 08'40" East, 60.00 feet; thence North 00 Degrees 09'50" West, 173.00 feet; thence South 87 Degrees 07'45" East, 957.66 feet; thence South 00 Degrees 12'58" East, 2291.76 feet; thence North 87 Degrees 04'41" West, 239.32 feet; thence South 00 Degrees 45'39" West, 50.00 feet; thence North 87 Degrees 05' 15" West, 493.86 feet; thence North 00 Degrees 26'26" West, 325.87 feet; thence South 85 Degrees 09'43" West, 381.83 feet; thence South 00 Degrees 01'31" West, 18.70 feet; thence South 89 Degrees 16'03" West, 208.00 feet to the Point of Beginning, subject to an ingress and egress easement running east and west along the south portion of this property. (Recorded at Polk County Book 11773/Page 844). Parcel No. 131/00012-659-003.

• Scotch Ridge Business Park (Warren County): All That Part Of The Northwest Quarter Of The Northwest Quarter Of Section 4, Township 77 North, Range 23 West Of The 5th P.M., Warren County, Lying North Of State Highway No. 5, More Particularly Described As Follows: Commencing At The Northwest Corner Of Said Section 4; Thence South 87 Degrees 05'15" East, along the North Line of said Section 4 a distance of 591.14 feet to the Point of Beginning; thence South 87 Degrees 05'15" East, a distance Of 493.86 Feet; thence South 00 Degrees 45’39” West, A Distance Of 410.35 Feet: Thence North 63 Degrees 13'00" West, A Distance Of 234.15

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Feet; Thence North 58 Degrees 43'33” West, A Distance Of 324.69 Feet; Thence North 00 Degrees 26'26" West, A Distance Of 161.35 Feet To The Point Of Beginning, Containing 3.29 Acres, More Or Less, Subject To An Ingress And Egress Easement Running East And West Along The South Portion Of This Property. Parcel No. 40000040441.

• Laffoon & Company (Warren County): A part of the NE 1/4 of the NW 1/4 of Section 4, Township 77 North, Range 23 West of the 5th P.M. , Warren County, Iowa, described as follows: Beginning at a point 204' South of the NW corner of the NE 1/4 of the NW 1/4, Section 4, thence North 204', thence East 300', thence S 10°50’ W 239' thence West to the point of beginning, subject to and together with any and all easements, covenants and restrictions of record. Parcel No. 39720040424.

• Barnes (Warren County): All that part of the East half (E 1/2) of the Northwest Quarter (NW 1/4) of Section 4, Township 77 -North, Range 23, West the 5th P.M., Warren County, Iowa, lying North of the centerline of Iowa Highway- Number 60 running through said Section 4; subject to existing highways and roads, easements of record; and floodrights easement of the United States of America in connection with Red Rock Dam, except a part of the NE 1/4 of the NW 1/4 of Section 4, Township 77 North, Range 23 West of the 5th P.M., Warren County, Iowa, described as follows: Beginning at the Northwest corner of the NE 1/4 of the NW 1/4 of said section 4, thence East 30.0 feet thence S 10 50' W 660.2 feet to the centerline of Iowa Hwy. No. 5; thence N 63 15’ W along said centerline a distance of 197.0 feet; thence North 574 .0 feet to the point of beginning subject to Highway easement and EXCEPT that part thereof deeded to the State of Iowa as shown in Warranty Deed recoded in Book 260, Page 328 subject to and together with any and all easements, covenants and restrictions of record. Parcel No. 39720040420.

• Ferguson (Warren County): Real property locally known as 1529 Hwy. S, Carlisle, Warren County, Iowa and as described as follows: A part of the NE-1/4 of the NW-1/4 of Section 4, Township 77 North, Range 23 West of the 5th P.M., Warren County, Iowa described as follows: Beginning at the Northwest corner of the NE-1/4 of the NW-1/4 of said Section 4, thence East 300.0 feet; thence S 10d 50’ W 660.2 feet to the centerline of Iowa Hwy. No. 5; thence N 63d 15' W along said centerline a distance of 197.0 feet; thence North 574.0 feet to the point of beginning, subject to Highway easement and containing 3.65 acres, more or less, EXCEPT beginning at a point 204' South of the NW corner of the NE-1/4 of the NW-1/4, Sec. 4-77-23, thence North 204', thence East 300', thence S 10d 50’ W 239 feet, thence West to the point of beginning. Parcel No. 39720040421.

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• Casey’s (Warren County): Parcel "J" of the survey of the NW Y. of the NW Y. of Section 4, Township 77 North, Range 23 West of the 5th P.M., Warren County, Iowa, as shown in Irregular Plat Book 15, Page 25 of 77-23 and recorded in Book 2002, Page 6666 on June 12, 2002 in the office of the Warren County Recorder, INCLUDING Parcel "R" of Parcel "J" of the aforementioned survey, as recorded in Book 2006, Page 7794 on July 28, 2006 in the office of the Warren County Recorder. EXCEPT Parcel "T" of the aforementioned survey, as recorded in Book 2010, Page 3467 on May 12, 2010 in the office of the Warren County Recorder; AND Parcel "U" of the survey of the NW Y., of the NW Y., of Section 4, Township 77 North, Range 23 West of the 5lll P.M., Warren County, Iowa, as recorded in Book 2010, Page 3467 on May 12, 2010 in the office of the Warren County Recorder. Parcel No. 39720040446.

• Norgard, Parcel “S” (Warren County): Parcel "S" of Section 4, Township 77 North, Range 23 West, of the 5th P.M., Warren County, Iowa, more particularly described as follows: Commencing at the Northwest Comer of said Section 4; thence South 87 degrees 05’ 15" East, along the North line of Said Section 4, a distance of 302.2 feet to the Point of Beginning, thence continuing South 87 degrees 05' 15" East, along said line, a distance of 288.94 feet; thence South 00 degrees 26' 26" East, a distance of 161.35 feet; thence North 58 degrees 43'33" West, a distance of 339.07 feet to the Point of Beginning, containing 0.53 acres, more or less, and subject to any easements or restrictions of record. Parcel No. 40000040443.

• Norgard Parcel (Polk County): Parcel “K” All that part of the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., Polk County, Iowa, more particularly described as follows: Commencing at the Southwest corner of said Section 33; thence South 87 degrees 05’15” East along the South line of the Southwest Quarter, 302.2 feet to the Point of Beginning; thence North 55 degrees 40’53” West, 114.42 feet; thence North 00 degrees 01’31” East, 214.48 feet; thence North 85 degrees 09’43” East, 381.83 feet; thence South 00 degrees 26’26” East, 325.87 feet; thence North 87 degrees 05’15” West, 288.94 feet to the Point of Beginning Containing 2.56 ACRES, more or less. (Recorded at Polk County Book11773/Page 844). Parcel No. 131/00012-659-005.

This Area includes the right-of-way of all adjoining and intersecting streets and roadways, including State Highway 5, North and South Gateway Drive, County Line Road, and 155th Avenue.

WHEREAS, a proposed Amendment No. 1 to the Gateway Urban Renewal Plan

("Amendment No. 1" or "Amendment") for the Gateway Urban Renewal Area described above has been prepared, which proposed Amendment has been on file in the office of the City Clerk

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and which is incorporated herein by reference, the purpose of which is to remove land and add and/or confirm eligible projects to be undertaken within the Area; and

WHEREAS, this proposed Amendment No. 1 to the Urban Renewal Area removes land, as follows:

Parcel 2016-113 in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County, Iowa as filed in Book 16021, Page 20 of the Polk County Recorder’s Office EXCEPT Parcel E in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County Iowa as filed in Book 8940, Page 465 of the Polk County Recorder’s Office.

Subject to and together with any and all easements and restrictions of record.

WHEREAS, adoption of Amendment No. 1 to the Gateway Urban Renewal Plan has been approved by the Planning and Zoning Commission for the City as being in conformity with the general plan for development of the City as a whole, as evidenced by its written report and recommendation filed herewith, which report and recommendation is hereby accepted, approved in all respects and incorporated herein by this reference; and

WHEREAS, by resolution adopted on April 24, 2017, this Council directed that a consultation be held with the designated representatives of all affected taxing entities to discuss the proposed Amendment No. 1 to the Gateway Urban Renewal Plan and the division of revenue described therein, and that notice of the consultation and a copy of the proposed Amendment No. 1 to the Gateway Urban Renewal Plan be sent to all affected taxing entities; and

WHEREAS, pursuant to such notice, the consultation was duly held as ordered by the City Council and all required responses to the recommendations made by the affected taxing entities, if any, have been timely made as set forth in the report of the City Administrator, or his delegate, filed herewith and incorporated herein by this reference, which report is in all respects approved; and

WHEREAS, by resolution this Council also set a public hearing on the adoption of the proposed Amendment No. 1 to the Gateway Urban Renewal Plan for this meeting of the Council, and due and proper notice of the public hearing was given, as provided by law, by timely publication in the Carlisle Citizen, which notice set forth the time and place for this hearing and the nature and purpose thereof; and

WHEREAS, in accordance with the notice, all persons or organizations desiring to be heard on the proposed Amendment No. 1 to the Gateway Urban Renewal Plan, both for and against, have been given an opportunity to be heard with respect thereto and due consideration has been given to all comments and views expressed to this Council in connection therewith and the public hearing has been closed.

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NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY

OF CARLISLE, STATE OF IOWA:

Section 1. That the findings and conclusions set forth or contained in Amendment No. 1 concerning the area of the City of Carlisle, State of Iowa, described in the preamble hereof, be and the same are hereby ratified and confirmed in all respects as the findings of this Council for this area.

Section 2. This Council further finds:

a) Although relocation is not expected, a feasible method exists for the relocation of any families who will be displaced from the Gateway Urban Renewal Area into decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such families;

b) The Plan, as amended, and Amendment No. 1 to the Gateway Urban Renewal Plan conform to the general plan for the development of the City as a whole; and

c) Acquisition by the City is not immediately expected, however, as to any areas of open land to be acquired by the City included within the Gateway Urban Renewal Area:

i. Residential use is not expected, however, with reference to any portions thereof which are to be developed for residential uses, this City Council hereby determines that a shortage of housing of sound standards and design with decency, safety and sanitation exists within the City; that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality; and that one or more of the following conditions exist:

a. That the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas, including other portions of the urban renewal area.

b. That conditions of blight in the municipality and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime, so as to constitute a menace to the public health, safety, morals, or welfare.

c. That the provision of public improvements related to housing and residential development will encourage housing and residential development which is necessary to encourage the retention or relocation of industrial and commercial enterprises in this state and its municipalities.

d. The acquisition of the area is necessary to provide for the construction of housing for low and moderate income families.

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ii. Non-residential use is expected and with reference to those portions thereof which are to be developed for non-residential uses, such non-residential uses are necessary and appropriate to facilitate the proper growth and development of the City in accordance with sound planning standards and local community objectives.

Section 3. That the Gateway Urban Renewal Area, as amended, continues to be an economic development area within the meaning of Iowa Code Chapter 403; that such area is eligible for designation as an urban renewal area and otherwise meets all requisites under the provisions of Chapter 403 of the Code of Iowa; and that the rehabilitation, conservation, redevelopment, development, or a combination thereof, of such area is necessary in the interest of the public health, safety or welfare of the residents of this City.

Section 4. That Amendment No. 1 to the Gateway Urban Renewal Plan of the City of Carlisle, State of Iowa, attached hereto as Exhibit 1 and incorporated herein by reference, be and the same is hereby approved and adopted as "Amendment No. 1 to the Gateway Urban Renewal Plan for the City of Carlisle, State of Iowa"; Amendment No. 1 to the Gateway Urban Renewal Plan of the City of Carlisle, State of Iowa, is hereby in all respects approved; and the City Clerk is hereby directed to file a certified copy of Amendment No. 1 with the proceedings of this meeting.

Section 5. That, notwithstanding any resolution, ordinance, plan, amendment or any other document, Amendment No. 1 to the Gateway Urban Renewal Plan shall be in full force and effect from the date of this Resolution until the Council amends or repeals the Plan. The proposed Amendment No. 1 to the Gateway Urban Renewal Plan shall be forthwith certified by the City Clerk, along with a copy of this Resolution, to the Recorders for Polk County and Warren County, Iowa, to be filed and recorded in the manner provided by law.

Section 6. That all other provisions of the Plan not affected or otherwise revised by the terms of Amendment No. 1, as well as all resolutions previously adopted by this City Council related to the Plan be and the same are hereby ratified, confirmed and approved in all respects.

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PASSED AND APPROVED this 22nd day of May, 2017.

Mayor

ATTEST: City Clerk

Label the Amendment as Exhibit 1 (with all exhibits) and attach it to this Resolution.

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AMENDMENT NO. 1

to the

GATEWAY

URBAN RENEWAL PLAN

for the

GATEWAY

URBAN RENEWAL AREA

CITY OF CARLISLE, IOWA

Original Area - July 2015

Amendment No. 1 – May 2017

LOCAL GOVERNMENT PROFESSIONAL SERVICES, INC.

DBA SIMMERING-CORY

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AMENDMENT NO. 1

to the

GATEWAY URBAN RENEWAL PLAN

for the

GATEWAY URBAN RENEWAL AREA

CITY OF CARLISLE, IOWA

This Gateway Urban Renewal Plan (“Plan” or “Urban Renewal Plan”) for the Gateway Urban Renewal Area (“Area” or “Urban Renewal Area”) was originally adopted in 2015 and is now being amended to remove certain real estate from the Urban Renewal Area, which in turn will be included in the new Carlisle Gateway Townhomes Urban Renewal Area. The real estate removed from this Urban Renewal Area has never been residential in nature nor part of a residential housing development. In addition, this Amendment No. 1 (“Amendment” or “Amendment No. 1”) adds and/or confirms eligible projects to be undertaken within the Urban Renewal Area by this Amendment.

This Amendment No. 1 repeats much of the original Urban Renewal Plan, adopted in 2015. The material changes by this Amendment include the following:

Adding the Previously Authorized Urban Renewal Projects section (pages 4-5);

Adding new Eligible Urban Renewal Projects (page 5);

Updating the Financial Information (page 6);

Removing land for inclusion in a new Carlisle Gateway Townhomes Urban Renewal Plan; such Area is described in Exhibit “A” and illustrated in Exhibit “B” (pages 9-10); and

Updating Exhibit “C,” a map of the entire Urban Renewal Area, as amended (page 11).

Except as modified by this Amendment, the provisions of the original Urban Renewal Plan, are hereby ratified, confirmed, and approved and shall remain in full force and effect as provided herein. In case of any conflict or uncertainty, the terms of this Amendment shall control.

DESCRIPTION OF THE URBAN RENEWAL AREA

The legal description of the property being removed from the Urban Renewal Area is attached hereto as Exhibit “A.” A map of the property being removed by this Amendment No. 1 is attached hereto as Exhibit “B.” A map of the entire Urban Renewal Area, as amended, is attached hereto as Exhibit “C.”

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AREA DESIGNATION

The City continues to designate this area as an economic development area that is appropriate for the promotion of new and expanded commercial and industrial development. This Amendment makes no change in the Area designation.

BASE VALUE

Because the portion of the Area being removed has not been included in a TIF Ordinance, this Amendment will have no impact on any established frozen “base values.”

DEVELOPMENT PLAN

Carlisle has a general plan for the physical development of the City as a whole, outlined in The Comprehensive Plan for the City of Carlisle that was adopted by the City Council in March 2010. The goals and objectives identified in Amendment No. 1 to the Urban Renewal Plan, and the Urban Renewal Projects described therein are in conformity with the goals, objectives, and overall strategies identified in the Comprehensive Plan for the City of Carlisle.

This Urban Renewal Plan, as amended, does not in any way replace the City’s current land use planning or zoning regulation process.

The need, if any, for improved traffic, public transportation, public utilities, recreational and community facilities, or other public improvements within the Urban Renewal Area, is set forth in this Plan, as amended. As the Area continues to develop, the need for public infrastructure extensions and upgrades will be evaluated and planned for by the City.

PLAN OBJECTIVES

Renewal activities are designed to provide opportunities, incentives, and sites for new and expanded commercial and industrial development within the Area. More specific objectives for development within the Urban Renewal Area, as amended, are as follows:

1. To stimulate, through public action and commitment, private investment in new commercial and industrial development and redevelopment.

2. To plan for and provide sufficient land for new development in a manner that is efficient from the standpoint of providing municipal services.

3. To help finance the cost of the installation and upgrade of public works, infrastructure, and related facilities which contribute to the sound and orderly development of the Area.

4. To provide a more marketable and attractive investment climate through the use of various federal, state, and local incentives.

5. To achieve a diversified, well-balanced economy providing a desirable standard of living, creating job opportunities, and strengthening the tax base.

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H. TYPE OF RENEWAL ACTIVITIES

To meet the objectives of this Urban Renewal Plan, as amended, and to encourage the development of the Urban Renewal Area, as amended, the City intends to utilize the powers conferred under Chapter 403 and Chapter 15A, Code of Iowa. Activities may include:

1. To undertake and carry out urban renewal projects through the execution of contracts and other instruments.

2. To arrange for, or cause to be provided, the construction or improvement of public infrastructure including streets and sidewalks, traffic lights, pedestrian safety measures, water mains, sanitary sewers, storm sewers, sump pump collectors, or other public improvements in connection with urban renewal projects.

3. To provide for the construction of specific site improvements such as grading and site preparation activities, utility connections, and related activities.

4. To make or have made surveys and plans necessary for the implementation of the Urban Renewal Plan or specific urban renewal projects.

5. To borrow money and to provide security therefor.

6. To acquire or dispose of property and to hold, clear, or prepare the property for redevelopment.

7. To make loans, forgivable loans, tax rebate payments or other types of grants or incentives to private persons, local development organizations, or businesses for economic development purposes on such terms as may be determined by the City Council.

8. To use tax increment financing for a number of objectives (or urban renewal projects), including, but not limited to, achieving a more marketable and competitive land offering price and providing for necessary physical improvements and infrastructure.

9. To use any or all other powers granted by the Urban Renewal Act to develop and provide for improved economic conditions for the City of Carlisle and the State of Iowa.

Nothing herein shall be construed as a limitation on the power of the City to exercise any lawful power granted to the City under Chapter 15, Chapter 15A, Chapter 403, Chapter 427B, or any other provision of the Code of Iowa in furtherance of the objectives of this Urban Renewal Plan, as amended.

PREVIOUSLY AUTHORIZED URBAN RENEWAL PROJECTS

Various urban renewal projects were authorized prior to this Amendment No. 1, and are continuing. Such previously authorized urban renewal projects include installation of traffic lights and crosswalks at the intersection of Gateway Drive and State Highway 5, incentives for the construction of a new medical clinic, a strip mall, and a new hotel/motel. The medical

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clinic is the only project that has been completed and $230,000 of debt remains to be paid for this project.

ELIGIBLE URBAN RENEWAL PROJECTS (Amendment No. 1)

Although certain project activities may occur over a period of years in the Area, in addition to projects previously authorized in the Plan, the eligible urban renewal projects under this Plan, as amended, include:

1. Development Agreements:

A. Park Holdings, LLC ( or a related entity): The proposed urban renewal project involves providing incentives to Park Holdings, LLC (or a related entity) to assist with the cost of installing infrastructure, including construction of a street with storm water, sanitary sewer, and water utilities, to serve a new professional office building and additional commercial development. The new office building is expected to create opportunities for new businesses to locate in the City or for existing businesses to relocate thereby opening additional office space in other parts of the community. Construction is expected to take place in 2017-2018. It is estimated that total construction costs for the office building will be approximately $2,000,000. Incentives in the form of incremental tax rebates will not exceed the cost of the infrastructure improvements, which are not expected to exceed $1,000,000, subject to the terms and requirements of a detailed development agreement.

B. Future Development Agreements: The City expects to consider requests for Development Agreements for projects that are consistent with this Plan, as amended, in the City’s sole discretion. Such agreements are unknown at this time, but based on past history, and dependent on development opportunities and climate, the City expects to consider a broad range of incentives as authorized by this Plan, as amended, including, but not limited to, land, loans, grants, tax rebates, public infrastructure assistance and other incentives. The costs of such Development Agreements will not exceed $1,000,000.

3. Planning, Engineering Fees (for Urban Renewal Plans), Attorney Fees,

Administrative, and Other Related Costs to Support Urban Renewal Projects and

Planning:

Project Date Estimated Cost to

be funded by TIF

funds

Fees and costs Undetermined Not to exceed $50,000

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FINANCIAL INFORMATION

1. January 1, 2016, constitutional debt limit: $ 10,359,499 2. Current outstanding general obligation debt: $ 5,010,000 3. Proposed amount of indebtedness to be incurred: A specific

amount of debt to be incurred for the Eligible Urban Renewal Projects (Amendment No. 1) has not yet been determined. This document is for planning purposes. The estimated project costs in this Amendment are estimates only and will be incurred and spent over a number of years. In no event will the City’s constitutional debt limit be exceeded. The City Council will consider each project proposal on a case-by-case basis to determine if it is in the City’s best interest to participate before approving an urban renewal project or expense. It is further expected that such indebtedness, including interest on the same, may be financed in whole or in part with tax increment revenues from the Urban Renewal Area. Subject to the foregoing, it is estimated that the cost of the Eligible Urban Renewal Projects (Amendment No. 1) as described above to be funded by TIF Funds will be approximately as stated in the next column:

$2,050,000 This total does not include financing costs related to debt issuance, which may be incurred over the life of the Area.

URBAN RENEWAL FINANCING

The City intends to utilize various financing tools such as those described below to successfully undertake the proposed urban renewal actions. The City of Carlisle has the statutory authority to use a variety of tools to finance physical improvements within the Area, as amended. These include:

A. Tax Increment Financing.

Under Section 403.19 of the Code of Iowa, urban renewal areas may utilize the tax increment financing mechanism to finance the costs of public improvements, economic development incentives, or other urban renewal projects. Upon creation of a tax increment district within the Area, by ordinance, the assessment base is frozen and the amount of tax revenue available from taxes paid on the difference between the frozen base and the increased value, if any, is segregated into a separate fund for the use by the City to pay costs of the eligible urban renewal projects. Certain increased taxes generated by any new development, above the base value, are distributed to the taxing entities, if not requested by the City, and in any event upon the expiration of the tax increment district.

B. General Obligation Bonds.

Under Division III of Chapter 384 and Chapter 403 of the Code of Iowa, the City has the authority to issue and sell general obligation bonds for specified essential and general corporate purposes, including the acquisition and construction of certain public improvements or urban renewal projects within the Urban Renewal Area, as amended, and for other urban renewal projects or incentives for

Final 4/18/17

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development consistent with this Urban Renewal Plan, as amended. Such bonds are payable from the levy of unlimited ad valorem taxes on all the taxable property within the City. It may be that the City will elect to abate some or all of the debt service on these bonds with incremental taxes from this Area, as amended.

The City may also determine to use tax increment financing to provide incentives such as cash grants, loans, tax rebates, or other incentives to developers or private entities in connection with the urban renewal projects identified in the Plan, as amended. In addition, the City may determine to issue general obligation bonds, tax increment revenue bonds or such other obligations, or loan agreements for the purpose of making loans or grants of public funds to private businesses located in the Area for urban renewal projects. Alternatively, the City may determine to use available funds for making such loans or grants or other incentives related to urban renewal projects. In any event, the City may determine to use tax increment financing to reimburse the City for any obligations or advances.

Nothing herein shall be construed as a limitation on the power of the City to exercise any lawful power granted to the City under Chapter 15, Chapter 15A, Chapter 403, Chapter 427B, or any other provision of the Code of Iowa in furtherance of the objectives of this Urban Renewal Plan.

PROPERTY ACQUISITION/DISPOSITION

The City will follow any applicable requirements for the acquisition and disposition of property within the Urban Renewal Area.

RELOCATION

The City does not expect there to be any relocation required as part of the eligible urban renewal projects; however, if any relocation is necessary, the City will follow all applicable relocation requirements.

PROPERTY WITHIN URBAN REVITALIZATION AREA

This Urban Renewal Area, as amended, is also located within an established Carlisle Urban Revitalization Area. The Carlisle City Council, at its sole discretion, shall determine which incentives are available through either, a) this Plan, for urban renewal incentives, if any urban renewal incentives are offered by the City, at the City Council’s sole discretion; or b) tax abatement incentives under the Urban Revitalization Plan but no individual or entity shall be eligible for both “a” and “b” absent express Council approval.

STATE AND LOCAL REQUIREMENTS

All provisions necessary to conform with state and local laws will be complied with by the City in implementing this Urban Renewal Plan, as amended.

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URBAN RENEWAL PLAN AMENDMENTS

This Urban Renewal Plan may be amended from time to time for a variety of reasons, including, but not limited to, adding or deleting land, adding or amending urban renewal projects, or modifying goals or types of renewal activities.

The City Council may amend this Plan in accordance with applicable State law.

EFFECTIVE PERIOD

This Amendment No. 1 will become effective upon its adoption by the City Council. Notwithstanding anything to the contrary in the Urban Renewal Plan, or any prior resolution or document, the Urban Renewal Plan, as amended, shall remain in effect until terminated by the City Council, and the use of incremental property tax revenues, or the “division of revenues,” as those words are used in Chapter 403 of the Code of Iowa, will be consistent with Chapter 403 of the Code of Iowa. It is anticipated that separate TIF ordinances for separate parcel(s) in the Area will be adopted as development in the Area warrants, and each TIF ordinance could have separate expiration dates under Chapter 403. The division of revenues shall continue on the Area, as amended, for the maximum period allowed by law.

At all times, the use of tax increment financing revenues (including the amount of loans, advances, indebtedness or bonds which qualify for payment from the division of revenue provided in Section 403.19 of the Code of Iowa) by the City for activities carried out under the Urban Renewal Plan, as amended, shall be limited as deemed appropriate by the City Council and consistent with all applicable provisions of law.

REPEALER

Any parts of the original Plan in conflict with this Amendment are hereby repealed.

SEVERABILITY

If any part of the Urban Renewal Plan as amended, is determined to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity of the previously adopted Plan, as a whole, or any part of the Plan or this Amendment not determined to be invalid or unconstitutional.

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EXHIBIT A

LAND TO BE REMOVED BY AMENDMENT NO. 1

GATEWAY URBAN RENEWAL AREA

LEGAL DESCRIPTION: Parcel 2016-113 in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County, Iowa as filed in Book 16021, Page 20 of the Polk County Recorder’s Office EXCEPT Parcel E in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County, Iowa as filed in Book 8940, Page 465 of the Polk County Recorder’s Office.

Subject to and together with any and all easements and restrictions of record.

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CERTIFICATE STATE OF IOWA COUNTY OF WARREN

) ) SS )

I, the undersigned City Clerk of the City of Carlisle, State of Iowa, do hereby certify that

attached is a true and complete copy of the portion of the records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions.

WITNESS my hand and the seal of the Council hereto affixed this __________ day of _______________, 2017. (SEAL)

City Clerk, City of Carlisle, State of Iowa

01353587-1\13663-071

Memo To: File

From: Andrew J. Lent, City Administrator

Date: May 2, 2017

Re: Consultation Meeting for Amendment #1, Gateway Urban Renewal Plan

This memo serves to officially document that a consultation session was held on Tuesday, May 2, 2017 at 9:00 AM in the City Council Chambers at Carlisle City Hall, 195 North 1st Street, Carlisle, Iowa for Amendment #1, Gateway Urban Renewal Area. I was the only person in attendance.

ITEMS TO INCLUDE ON AGENDA

CITY OF CARLISLE, IOWA May 22, 2017

6:30 P.M.

Carlisle Gateway Townhomes Urban Renewal Plan • Public hearing on the proposed Carlisle Gateway Townhomes Urban Renewal Plan

• Resolution determining an area of the City to be an economic development area, and that

the rehabilitation, conservation, redevelopment, development or a combination thereof, of such area is necessary in the interest of the public health, safety or welfare of the residents of the City; designating such area as appropriate for urban renewal projects; and adopting the Carlisle Gateway Townhomes Urban Renewal Plan

• C Consideration of Ordinance for the division of revenues under Iowa Code Section 403.19 for Carlisle Gateway Townhomes Urban Renewal Plan

IMPORTANT INFORMATION

1. The above agenda items should be included, along with any other agenda items, in the meeting agenda. The agenda should be posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the body holding the meeting. If no such office exists, the notice must be posted at the building in which the meeting is to be held.

2. If you do not now have a bulletin board designated as above mentioned, designate one

and establish a uniform policy of posting your notices of meeting and tentative agenda.

3. Notice and tentative agenda must be posted at least 24 hours prior to the commencement of the meeting.

NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY.

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May 22, 2017

The City Council of the City of Carlisle, State of Iowa, met in _______________ session, in the Council Chambers, City Hall, 195 N First Street, Carlisle, Iowa, at 6:30 P.M., on the above date. There were present Mayor _______________, in the chair, and the following named Council Members:

__________________________________________________ Absent: ___________________________________________ Vacant: ___________________________________________

* * * * * * *

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This being the time and place fixed for a public hearing on the matter of the adoption of the proposed Carlisle Gateway Townhomes Urban Renewal Plan, the Mayor first asked for the report of the City Administrator, or his delegate, with respect to the consultation held with the affected taxing entities to discuss the proposed Plan. The Council was informed that the consultation was duly held as ordered by the Council, and that __________ written recommendations were received from affected taxing entities. The report of the City Administrator, or his delegate, with respect to the consultation was placed on file for consideration by the Council.

The City also was informed that the proposed Plan had been approved by the Planning and Zoning Commission as being in conformity with the general plan for development of the City as a whole, as set forth in the minutes or report of the Commission. The report or minutes were placed on file for consideration by the Council.

The Mayor then asked the City Clerk whether any written objections had been filed with respect to the proposed Plan, and the City Clerk reported that __________ written objections thereto had been filed. The Mayor then called for any oral objections to the adoption of the Carlisle Gateway Townhomes Urban Renewal Plan and __________ were made. The public hearing was then closed.

{Attach summary of objections here}

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Council Member ____________________ then introduced the following Resolution entitled "RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL PROJECTS; AND ADOPTING THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL PLAN" and moved:

that the Resolution be adopted.

to defer action on the Resolution and the proposal to the meeting to be held at __________ _____.M. on the __________ day of __________, 2017, at this place.

Council Member ____________________ seconded the motion. The roll was called and the vote was,

AYES: ___________________________________________

___________________________________________

NAYS: ___________________________________________

Whereupon, the Mayor declared the measure duly adopted.

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RESOLUTION NO. ____________________ RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL PROJECTS; AND ADOPTING THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL PLAN

WHEREAS, this Council has reasonable cause to believe that the area described below

satisfies the eligibility criteria for designation as an urban renewal area under Iowa law; and

WHEREAS, a proposed Carlisle Gateway Townhomes Urban Renewal Plan ("Plan" or "Urban Renewal Plan") for the Carlisle Gateway Townhomes Urban Renewal Area described below has been prepared, which proposed Plan has been on file in the office of the City Clerk and which is incorporated herein by reference; and

WHEREAS, this proposed Carlisle Gateway Townhomes Urban Renewal Area (“Area” or “Urban Renewal Area”) includes and consists of:

Parcel 2016-113 in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County, Iowa as filed in Book 16021, Page 20 of the Polk County Recorder’s Office EXCEPT Parcel E in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County Iowa as filed in Book 8940, Page 465 of the Polk County Recorder’s Office.

Subject to and together with any and all easements and restrictions of record.

WHEREAS, it is desirable that the Urban Renewal Area be redeveloped as described in the proposed Carlisle Gateway Townhomes Urban Renewal Plan to be known hereafter as the "Carlisle Gateway Townhomes Urban Renewal Plan"; and

WHEREAS, the Iowa statutes require the City Council to submit the proposed Carlisle Gateway Townhomes Urban Renewal Plan to the Planning and Zoning Commission for review and recommendation as to its conformity with the general plan for development of the City as a whole, prior to City Council approval thereof; and

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WHEREAS, creation of the Carlisle Gateway Townhomes Urban Renewal Area and adoption of the Carlisle Gateway Townhomes Urban Renewal Plan therefore has been approved by the Planning and Zoning Commission for the City as being in conformity with the general plan for development of the City as a whole, as evidenced by its written report and recommendation filed herewith, which report and recommendation is hereby accepted, approved in all respects and incorporated herein by this reference; and

WHEREAS, by resolution adopted on April 24, 2017, this Council directed that a consultation be held with the designated representatives of all affected taxing entities to discuss the proposed Carlisle Gateway Townhomes Urban Renewal Plan and the division of revenue described therein, and that notice of the consultation and a copy of the proposed Carlisle Gateway Townhomes Urban Renewal Plan be sent to all affected taxing entities; and

WHEREAS, pursuant to such notice, the consultation was duly held as ordered by the City Council and all required responses to the recommendations made by the affected taxing entities, if any, have been timely made as set forth in the report of the City Administrator, or his delegate, filed herewith and incorporated herein by this reference, which report is in all respects approved; and

WHEREAS, by resolution this Council also set a public hearing on the adoption of the proposed Carlisle Gateway Townhomes Urban Renewal Plan for this meeting of the Council, and due and proper notice of the public hearing was given, as provided by law, by timely publication in the Carlisle Citizen, which notice set forth the time and place for this hearing and the nature and purpose thereof; and

WHEREAS, in accordance with the notice, all persons or organizations desiring to be heard on the proposed Carlisle Gateway Townhomes Urban Renewal Plan, both for and against, have been given an opportunity to be heard with respect thereto and due consideration has been given to all comments and views expressed to this Council in connection therewith and the public hearing has been closed.

NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF CARLISLE, STATE OF IOWA:

Section 1. That the findings and conclusions set forth or contained in the proposed "Carlisle Gateway Townhomes Urban Renewal Plan" for the area of the City of Carlisle, State of Iowa, legally described and depicted in the Plan and incorporated herein by reference (which area shall hereinafter be known as the "Carlisle Gateway Townhomes Urban Renewal Area"), be and the same are hereby adopted and approved as the findings of this Council for this area.

Section 2. This Council further finds:

a) Although relocation is not expected, a feasible method exists for the relocation of any families who will be displaced from the Carlisle Gateway Townhomes Urban Renewal Area into decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such families;

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b) The Urban Renewal Plan conforms to the general plan for the development of the City as a whole; and

c) Acquisition by the City is not immediately expected, however, as to any areas of open land to be acquired by the City included within the Carlisle Gateway Townhomes Urban Renewal Area:

i. Residential use is expected and with reference to those portions thereof which are to be developed for residential uses, this City Council hereby determines that a shortage of housing of sound standards and design with decency, safety and sanitation exists within the City; that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality; and that one or more of the following conditions exist:

a. That the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas, including other portions of the urban renewal area.

b. That conditions of blight in the municipality and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime, so as to constitute a menace to the public health, safety, morals, or welfare.

c. That the provision of public improvements related to housing and residential development will encourage housing and residential development which is necessary to encourage the retention or relocation of industrial and commercial enterprises in this state and its municipalities.

d. The acquisition of the area is necessary to provide for the construction of housing for low and moderate income families.

ii. Non-residential use is not expected, however, with reference to any portions thereof which are to be developed for non-residential uses, such non-residential uses are necessary and appropriate to facilitate the proper growth and development of the City in accordance with sound planning standards and local community objectives.

Section 3. That the Carlisle Gateway Townhomes Urban Renewal Area is an economic development area within the meaning of Iowa Code Chapter 403; that such area is eligible for designation as an urban renewal area and otherwise meets all requisites under the provisions of Chapter 403 of the Code of Iowa; and that the rehabilitation, conservation, redevelopment, development, or a combination thereof, of such area is necessary in the interest of the public health, safety or welfare of the residents of this City.

Section 4. That the Carlisle Gateway Townhomes Urban Renewal Plan, attached hereto as Exhibit 1 and incorporated herein by reference, be and the same is hereby approved and adopted as the "Carlisle Gateway Townhomes Urban Renewal Plan for the Carlisle Gateway Townhomes Urban Renewal Area"; the Carlisle Gateway Townhomes Urban Renewal Plan for

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such area is hereby in all respects approved; and the City Clerk is hereby directed to file a certified copy of the Carlisle Gateway Townhomes Urban Renewal Plan with the proceedings of this meeting.

Section 5. That, notwithstanding any resolution, ordinance, plan, amendment or any other document, the original Carlisle Gateway Townhomes Urban Renewal Plan shall be in full force and effect from the date of this Resolution until the Council amends or repeals the Plan. Said Carlisle Gateway Townhomes Urban Renewal Plan shall be forthwith certified by the City Clerk, along with a copy of this Resolution, to the Recorder for Polk County, Iowa, to be filed and recorded in the manner provided by law.

PASSED AND APPROVED this 22nd day of May, 2017.

Mayor

ATTEST: City Clerk

Label the Plan as Exhibit 1 (with all exhibits) and attach it to this Resolution.

Final 4/18/17

CARLISLE GATEWAY TOWNHOMES

URBAN RENEWAL PLAN

for the

CARLISLE GATEWATY

TOWNHOMES URBAN RENEWAL

AREA

CITY OF CARLISLE, IOWA

MAY 2017

LOCAL GOVERNMENT PROFESSIONAL SERVICES

DBA SIMMERING-CORY

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TABLE OF CONTENTS

SECTION

A. INTRODUCTION

B. DESCRIPTION OF THE URBAN RENEWAL AREA

C. AREA DESIGNATION

D. BASE VALUE

E. DEVELOPMENT PLAN

F. RESIDENTIAL DEVELOPMENT

G. PLAN OBJECTIVES

H. TYPES OF RENEWAL ACTIVITIES

I. ELIGIBLE URBAN RENEWAL PROJECTS

J. FINANCIAL INFORMATION

K. URBAN RENEWAL FINANCING

L. PROPERTY ACQUISITION/DISPOSITION

M. RELOCATION

N. PROPERTY WITHIN AN URBAN REVITALIZATION AREA

O. STATE AND LOCAL REQUIREMENTS

P. AGRICULTURAL LAND

Q. SEVERABILITY

R. URBAN RENEWAL PLAN AMENDMENTS

S. EFFECTIVE PERIOD

EXHIBITS

A. LEGAL DESCRIPTION OF CARLISLE GATEWAY TOWNHOMES URBAN

RENEWAL AREA

B. CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA MAPS

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Carlisle Gateway Townhomes Urban Renewal Plan

for the

Carlisle Gateway Townhomes Urban Renewal Area

City of Carlisle, Iowa

A. INTRODUCTION

The Carlisle Gateway Townhomes Urban Renewal Plan (“Plan” or “Urban Renewal Plan”) for the Carlisle Gateway Townhomes Urban Renewal Area (“Area” or “Urban Renewal Area”) has been developed to help local officials respond to and promote economic development in the City of Carlisle, Iowa (the “City”). The primary goal of the Plan is to stimulate, through public involvement and commitment, private investment in new housing and residential development as defined in the Code of Iowa Section 403.17(12).

In order to achieve this objective, the City intends to undertake Urban Renewal activities pursuant to the powers granted to it under Chapter 403 and Chapter 15A of the Code of Iowa, as amended.

B. DESCRIPTION OF THE URBAN RENEWAL AREA

The Urban Renewal Area is described in Exhibit “A” and illustrated in Exhibit “B.” The property forming this Area has been removed from the Carlisle Gateway Urban Renewal Area by Amendment #1 to the Carlisle Gateway Urban Renewal Plan. This property has never been residential in nature nor part of a residential housing development.

The City reserves the right to modify the boundaries of the Area at some future date.

C. AREA DESIGNATION

With the adoption of this Plan, the City designates this Urban Renewal Area as an economic development area that is appropriate for the provision of public improvements related to housing and residential development.

D. BASE VALUE

If the Urban Renewal Area is legally established, a Tax Increment Financing (TIF) ordinance is adopted, and debt is certified prior to December 1, 2017, the taxable valuation as of January 1, 2016, will be considered the frozen “base valuation” for the portion of the Urban Renewal Area identified in the TIF ordinance. If a TIF ordinance is not adopted until a later date, or debt is not first certified prior to December 1, 2017, the frozen “base value” will be the assessed value of the taxable property within that area covered by the TIF ordinance as of January 1 of the calendar year preceding the calendar year in which the City first certifies the amount of any debt on the Area. It may be that more than one ordinance will be adopted on property within the Area. If so, the frozen base values may vary.

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E. DEVELOPMENT PLAN

Carlisle has a general plan for the physical development of the City as a whole, outlined in The Comprehensive Plan for the City of Carlisle, adopted in March 2010. The goals and objectives identified in this Plan, and the Urban Renewal Projects described therein, are in conformity with the goals, objectives, and overall strategies identified in The Comprehensive Plan for the City of Carlisle.

This Urban Renewal Plan does not in any way replace the City’s current land use planning or zoning regulation process. Currently the Area is zoned as Commercial, but will be rezoned once the site plan is approved.

The need, if any, for improved traffic, public transportation, public utilities, recreational and community facilities, or other public improvements within the Urban Renewal Area, is set forth in this Plan. As the Area develops, the need for public infrastructure extensions and upgrades will be evaluated and planned for by the City.

F. RESIDENTIAL DEVELOPMENT

The City’s objective for the Urban Renewal Area is to promote new housing and residential development. Carlisle lies 10 miles southeast of Des Moines, providing a convenient residential location within easy commuting distance for residents to a variety of employment opportunities, amenities, and services.

When a city utilizes tax increment financing to support residential development (such support is limited to reimbursement of “public improvement” costs, as defined by Iowa law), a percentage of the incremental revenues (or other revenues) generated by the development must be used to provide assistance to low and moderate income (LMI) families. LMI families are those whose incomes do not exceed 80% of the median Polk County income.

Unless a reduction is approved by the Iowa Economic Development Authority, the amount of incremental revenues (or other revenues) to be provided for low and moderate income family housing in the community shall be either equal to or greater than the percentage of the original project costs (i.e., the amount of TIF funds used to reimburse infrastructure costs serving the housing development in the Area) that is equal to the percentage of LMI families living in Polk County. That percentage is currently 38.92%.

The requirement to provide assistance for LMI housing may be met by one, or a combination, of the following three options:

1. Providing that at least 38.92% of the units constructed in the Area are occupied by residents and/or families whose incomes are at or below 80% of the median county income;

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2. Setting aside an amount equal to or greater than 38.92% of the project costs to be used for LMI housing activities anywhere in the City; or,

3. Ensuring that 38.92% of the houses constructed within the Area are priced at amounts affordable to LMI families.

If funds are set aside, as opposed to constructing a sufficient percentage of LMI housing in the Area, the assistance for LMI family housing may be provided anywhere within the City. The type of assistance provided must benefit LMI residents and/or families and may include, but is not limited to:

1. Construction of LMI affordable housing.

2. Owner/renter-occupied housing rehabilitation for LMI residents and/or families.

3. Grants, credits, or other direct assistance for LMI residents and/or families.

4. Homeownership assistance for LMI residents and/or families.

5. Tenant-based rental assistance for LMI residents and/or families.

6. Down payment assistance for LMI residents and/or families.

7. Mortgage interest buy-down assistance for LMI residents and/or families.

8. Under appropriate circumstances, the construction of public improvements that benefit LMI residents and/or families.

G. PLAN OBJECTIVES

Renewal activities are designed to provide opportunities, incentives, and sites for new residential development within the Area. More specific objectives for development within the Urban Renewal Area are as follows:

1. To increase the availability of housing opportunities, which may, in turn, attract and retain area industries and commercial enterprises that will strengthen and revitalize the economy of the State of Iowa and the City of Carlisle.

2. To stimulate, through public action and commitment, private investment in new housing and residential development and redevelopment. The City realizes that the availability of affordable, decent, safe, and sanitary housing is important to the overall economic viability of the community.

3. To plan for and provide sufficient land for residential development in a manner that is efficient from the standpoint of providing municipal services.

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4. To help finance the cost of constructing public utility and infrastructure extensions and improvements in support of residential development.

5. To improve housing conditions and increase housing opportunities, particularly for LMI income families and/or individuals.

6. To provide a more marketable and attractive investment climate through the use of various federal, state, and local incentives.

7. To encourage residential growth and expansion through governmental policies which make it economically feasible to do business.

8. To promote development utilizing any other objectives allowed by Chapter 403 of the Code

of Iowa.

H. TYPES OF RENEWAL ACTIVITIES

To meet the objectives of this Urban Renewal Plan and to encourage the development of the Area, the City intends to utilize the powers conferred under Chapter 403 and Chapter 15A, Code of Iowa including, but not limited to, tax increment financing. Activities may include:

1. To undertake and carry out urban renewal projects through the execution of contracts and other instruments.

2. To acquire property through a variety of means (purchase, lease, option, etc.) and to hold, clear, or prepare the property for development.

3. To dispose of property so acquired.

4. To provide for the construction of site specific improvements, such as grading and site preparation activities, access roads and parking, fencing, utility connections, and related activities.

5. To arrange for, or cause to be provided, the construction or repair of public infrastructure, including, but not limited to, streets and sidewalks, traffic lights, pedestrian safety measures, trails, water mains, sanitary sewers, storm sewers, public utilities, or other facilities in connection with urban renewal projects.

6. To make loans, forgivable loans, tax rebate payments, or other types of grants or incentives to private persons, organizations, or businesses for economic development purposes or residential projects, on such terms as may be determined by the City Council.

7. To use tax increment financing to facilitate urban renewal projects, including, but not limited to, financing to achieve a more marketable and competitive land offering price and to provide for necessary physical improvements and infrastructure.

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8. To use tax increment for LMI housing assistance.

9. To borrow money and to provide security therefor.

10. To make or have made surveys and plans necessary for the implementation of the Urban Renewal Plan or specific urban renewal projects.

11. To use any or all other powers granted by the Urban Renewal Act to develop and provide for improved economic conditions for the City of Carlisle and the State of Iowa.

Nothing herein shall be construed as a limitation on the power of the City to exercise any lawful power granted to the City under Chapter 15, Chapter 15A, Chapter 403, Chapter 427B, or any other provision of the Code of Iowa in furtherance of the objectives of this Urban Renewal Plan.

I. ELIGIBLE URBAN RENEWAL PROJECTS

Although certain project activities may occur over a period of years, the eligible urban renewal projects under this Urban Renewal Plan include:

1. Rebate to Support Infrastructure Improvements in Residential Development:

A. Park Holdings, LLC (or a related entity): The eligible urban renewal project involves providing incentives necessary to construct public improvements to assist Park Holdings, LLC (or a related entity), in the development of an anticipated 12-lot residential subdivision. This will be Phase I of a two phase project. Park Holdings, LLC (or a related entity) is expected to invest approximately $2,000,000 in the development of the lots including, but not limited to, the construction of a new street, sanitary sewer, storm water, and water utilities. Construction is anticipated to begin in 2017 and be completed by the end of 2019.

The City intends to provide assistance in the form of property tax rebates of potential incremental taxes that will result from completion of the residential subdivision and related public improvements. Under the proposal, some of the incremental property tax generated by the project (from the development of new homes to be constructed on the developer’s land pursuant to the Code of Iowa Section 403.19) is expected to be rebated to the developer upon substantiation of costs incurred by the developer in constructing the public improvements. Unless some other amount is determined by the City, these incentives are not expected to exceed the lesser of:

The developer’s certified and approved costs of public improvements; or

$350,000

These rebates will not be general obligations of the City but will be payable solely from incremental property taxes generated by the project and subject to annual appropriation. The

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rebates will be available for up to a maximum of a ten (or fifteen, if consent is obtained from the other taxing entities) year period for the TIF ordinance area.

Unless LMI housing is constructed in this subdivision, the City will set aside an amount equal to 38.92% of the incentives provided to the developer (up to a maximum of the developer’s certified costs of public improvements or $350,000) from the incremental taxes generated by the residential housing units and use those funds to support LMI housing anywhere in the community. The remaining incremental taxes will be available to reimburse the City for planning, legal, and other project costs and to fund property tax rebates to the developer, up to the above stated maximums.

The City believes that assistance to stimulate residential housing in this Area will promote economic development by providing needed housing opportunities for employees of area businesses, their families, and new or existing residents. The City expects to enter into a development agreement with Park Holdings, LLC (or a related entity) that provides detailed terms and conditions, not all of which are included in this Plan.

B. Future Development Agreements. The City expects to consider requests for Development Agreements for projects that are consistent with this Plan, in the City’s sole discretion. Such Agreements are unknown at this time, but based on past history, and dependent on development opportunities and climate, the City expects to consider a broad range of incentives as authorized by this Plan, including but not limited to, land, loans, grants, tax rebates, public infrastructure assistance, and other incentives. The costs of such Development Agreements are estimated not too exceed $500,000.

2. Planning, Engineering Fees (for Urban Renewal Plans), Attorney Fees,

Administrative, and Other Related Costs to Support Urban Renewal Projects and

Planning:

Project Estimated Date Estimated Cost to be

funded by TIF Funds

Fees and Costs Undetermined Not to Exceed $50,000

J. FINANCIAL INFORMATION

1. July 1, 2016, Constitutional Debt Limit $10,359,499 2. Current Outstanding General Obligation Debt $5,010,000 3. Proposed amount of indebtedness to be incurred: A

specific amount of debt to be incurred for the Eligible Urban Renewal Projects has not yet been determined. This document is for planning purposes only. The estimated project costs in this Plan are estimates only and will be incurred and spent over a number of years. In no event will the City’s constitutional debt limit be exceeded. The City Council will consider each project proposal on a case-by-case basis to determine if it is in the City’s best

$900,000 This does not include financing costs related to debt issuance, which may be incurred over the life of the Area.

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interest to participate before approving an urban renewal project or expense. It is further expected that such indebtedness, including interest on the same, may be financed in whole or in part with tax increment revenues from the Urban Renewal Area. Subject to the foregoing, it is estimated that the cost of the Eligible Urban Renewal Projects as described above to be funded by TIF Funds will be approximately as stated in the next column:

K. URBAN RENEWAL FINANCING

The City intends to utilize various financing tools such as those described below to successfully undertake the proposed urban renewal actions. The City has the statutory authority to use a variety of tools to finance physical improvements within the Area. These include:

A. Tax Increment Financing.

Under Section 403.19 of the Code of Iowa, urban renewal areas may utilize the tax increment financing mechanism to finance the costs of public improvements, economic development incentives, or other urban renewal projects. Upon creation of a tax increment district within the Area, by ordinance, the assessment base is frozen and the amount of tax revenue available from taxes paid on the difference between the frozen base and the increased value, if any, is segregated into a separate fund for the use by the City to pay costs of the eligible urban renewal projects. Certain increased taxes generated by any new development, above the base value, are distributed to the taxing entities, if not requested by the City, and in any event upon the expiration of the tax increment district.

B. General Obligation Bonds.

Under Division III of Chapter 384 and Chapter 403 of the Code of Iowa, the City has the authority to issue and sell general obligation bonds for specified essential and general corporate purposes, including the acquisition and construction of certain public improvements within the Area and for other urban renewal projects or incentives for development consistent with this Plan. Such bonds are payable from the levy of unlimited ad valorem taxes on all the taxable property within the City. It may be, the City will elect to abate some or all of the debt service on these bonds with incremental taxes from this Area.

The City may also determine to use tax increment financing to provide incentives such as cash grants, loans, tax rebates, or other incentives to developers or private entities in connection with the urban renewal projects identified in this Plan. In addition, the City may determine to issue general obligation bonds, tax increment revenue bonds or such other obligations, or loan agreements for the purpose of making loans or grants of public funds to private businesses located in the Area for urban renewal projects. Alternatively, the City may determine to use available

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funds for making such loans or grants or other incentives related to urban renewal projects. In any event, the City may determine to use tax increment financing to reimburse the City for any obligations or advances.

Nothing herein shall be construed as a limitation on the power of the City to exercise any lawful power granted to the City under Chapter 15, Chapter 15A, Chapter 403, Chapter 427B, or any other provision of the Code of Iowa in furtherance of the objectives of this Urban Renewal Plan.

L. PROPERTY ACQUISITION/DISPOSITION

The City will follow any applicable requirements for the acquisition and disposition of property within the Urban Renewal Area.

M. RELOCATION

The City does not expect there to be any relocation required of residents or businesses as part of the eligible urban renewal projects; however, if any relocation is necessary, the City will follow all applicable relocation requirements.

N. PROPERTY WITHIN AN URBAN REVITALIZATION AREA

This Urban Renewal Area is located within an established Carlisle Urban Revitalization Area. The Carlisle City Council, at its sole discretion, shall determine which incentives are available through either, a) this Plan, for urban renewal incentives, if any urban renewal incentives are offered by the City, at the City Council’s sole discretion; or b) tax abatement incentives under the Urban Revitalization Plan but no individual or entity shall be eligible for both “a” and “b” absent express Council approval.

O. STATE AND LOCAL REQUIREMENTS

All provisions necessary to conform to state and local laws will be complied with by the City in implementing this Urban Renewal Plan and its supporting documents.

P. AGRICULTURAL LAND

Because this Area does not contain land defined as “agricultural land” pursuant to Code of Iowa Section 403.17(3), no agricultural landowner consents are required.

Q. SEVERABILITY

In the event one or more provisions contained in the Urban Renewal Plan shall be held for any reason to be invalid, illegal, unauthorized, or unenforceable in any respect, such invalidity, illegality, un-authorization, or unenforceability shall not affect any other provision of this Urban Renewal Plan, and this Urban Renewal Plan shall be construed and implemented as if such provisions had never been contained herein.

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R. URBAN RENEWAL PLAN AMENDMENTS

This Urban Renewal Plan may be amended from time to time for a number of reasons including, but not limited to, adding or deleting land, adding or amending urban renewal projects, or modifying objectives or types of renewal activities.

The City Council may amend this Plan in accordance with applicable State law.

S. EFFECTIVE PERIOD

This Urban Renewal Plan will become effective upon its adoption by the City Council and shall remain in effect until terminated by the City Council.

With respect to property included within the Urban Renewal Area, which is also included in an ordinance which designates that property as a tax increment area and is designated based on an economic development finding, to provide or to assist in the provision of public improvements related to housing and residential development, the use of incremental property tax revenues or the “division of revenue,” as those words are used in Chapter 403 of the Code of Iowa, is limited to ten (10) years beginning with the second fiscal year following the year in which the City first certifies to the County Auditor the amount of any loans, advances, indebtedness, or bonds which qualify for payment from the incremental property tax revenues attributable to that property within the Urban Renewal Area.

With consent of all other affected taxing bodies (by written agreement), the use of incremental property tax revenues under the Code of Iowa Section 403.19 can be extended for up to five (5) years if necessary to adequately fund the housing project. The City may decide to seek such consent.

At all times, the use of tax increment financing revenues (including the amount of loans, advances, indebtedness, or bonds which qualify for payment from the division of revenue provided in Section 403.19 of the Code of Iowa) by the City for activities carried out under the Urban Renewal Area shall be limited as deemed appropriate by the City Council and consistent with all applicable provisions of law.

12

Final 4/18/17

EXHIBIT A

LEGAL DESCRIPTION OF GATEWAY TOWNHOMES URBAN RENEWAL AREA

LEGAL DESCRIPTION:

Parcel 2016-113 in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County, Iowa as filed in Book 16021, Page 20 of the Polk County Recorder’s Office

EXCEPT

Parcel E in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County, Iowa as filed in Book 8940, Page 465 of the Polk County Recorder’s Office.

Subject to and together with any and all easements and restrictions of record.

13

Final 4/18/17

EXHIBIT B

CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA

CARLISLE, IOWA

14

Final 4/18/17

CERTIFICATE STATE OF IOWA COUNTY OF POLK

) ) SS )

I, the undersigned City Clerk of the City of Carlisle, State of Iowa, do hereby certify that

attached is a true and complete copy of the portion of the records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions.

WITNESS my hand and the seal of the Council hereto affixed this __________ day of _______________, 2017. (SEAL)

City Clerk, City of Carlisle, State of Iowa

01354119-1\13663-076

Memo To: File

From: Andrew J. Lent, City Administrator

Date: May 2, 2017

Re: Consultation Meeting for Gateway Townhomes Urban Renewal Plan

This memo serves to officially document that a consultation session was held on

Tuesday, May 2, 2017 at 9:00 AM in the City Council Chambers at Carlisle City Hall,

195 North 1st Street, Carlisle, Iowa for Gateway Townhomes Urban Renewal Plan.

I was the only person in attendance.

-1-

ORDINANCE NO. __________

AN ORDINANCE PROVIDING THAT GENERAL PROPERTY TAXES LEVIED AND COLLECTED EACH YEAR ON ALL PROPERTY LOCATED WITHIN THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA, IN THE CITY OF CARLISLE, COUNTY OF POLK, STATE OF IOWA, BY AND FOR THE BENEFIT OF THE STATE OF IOWA, CITY OF CARLISLE, COUNTY OF POLK, CARLISLE COMMUNITY SCHOOL DISTRICT, AND OTHER TAXING DISTRICTS, BE PAID TO A SPECIAL FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON LOANS, MONIES ADVANCED TO AND INDEBTEDNESS, INCLUDING BONDS ISSUED OR TO BE ISSUED, INCURRED BY THE CITY IN CONNECTION WITH THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL AREA (THE CARLISLE GATEWAY TOWNHOMES URBAN RENEWAL PLAN)

WHEREAS, the City Council of the City of Carlisle, State of Iowa, after public notice

and hearing as prescribed by law and pursuant to Resolution No. __________ passed and approved on ___________________, 2017, adopted an Urban Renewal Plan (the "Urban Renewal Plan") for an urban renewal area known as the Carlisle Gateway Townhomes Urban Renewal Area (the "Urban Renewal Area"), which Urban Renewal Area includes the lots and parcels located within the area legally described as follows:

Parcel 2016-113 in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County, Iowa as filed in Book 16021, Page 20 of the Polk County Recorder’s Office EXCEPT Parcel E in the Southwest Quarter of Section 33, Township 78 North, Range 23 West of the 5th P.M., City of Carlisle, Polk County Iowa as filed in Book 8940, Page 465 of the Polk County Recorder’s Office.

Subject to and together with any and all easements and restrictions of record.

WHEREAS, expenditures and indebtedness are anticipated to be incurred by the City of Carlisle, State of Iowa, in the future to finance urban renewal project activities carried out in furtherance of the objectives of the Urban Renewal Plan; and

WHEREAS, the City Council of the City of Carlisle, State of Iowa, desires to provide for the division of revenue from taxation in the Urban Renewal Area, as above described, in accordance with the provisions of Section 403.19 of the Code of Iowa, as amended.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CARLISLE, STATE OF IOWA:

-2-

Section 1. That the taxes levied on the taxable property in the Urban Renewal Area

legally described in the preamble hereof, by and for the benefit of the State of Iowa, City of Carlisle, County of Polk, Carlisle Community School District, and all other taxing districts from and after the effective date of this Ordinance shall be divided as hereinafter in this Ordinance provided.

Section 2. That portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts upon the total sum of the assessed value of the taxable property in the Urban Renewal Area, as shown on the assessment roll as of January 1 of the calendar year preceding the first calendar year in which the City of Carlisle, State of Iowa, certifies to the Auditor of Polk County, Iowa the amount of loans, advances, indebtedness, or bonds payable from the division of property tax revenue described herein, shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for the taxing district into which all other property taxes are paid.

Section 3. That portion of the taxes each year in excess of the base period taxes determined as provided in Section 2 of this Ordinance shall be allocated to and when collected be paid into a special tax increment fund of the City of Carlisle, State of Iowa, hereby established, to pay the principal of and interest on loans, monies advanced to, indebtedness, whether funded, refunded, assumed or otherwise, including bonds or obligations issued under the authority of Section 403.9 or 403.12 of the Code of Iowa, as amended, incurred by the City of Carlisle, State of Iowa, to finance or refinance, in whole or in part, urban renewal projects undertaken within the Urban Renewal Area pursuant to the Urban Renewal Plan, except that (i) taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to Iowa Code Section 298.2 and taxes for the instructional support program of a school district imposed pursuant to Iowa Code Section 257.19 (but in each case only to the extent required under Iowa Code Section 403.19(2)); (ii) taxes for the payment of bonds and interest of each taxing district; (iii) taxes imposed under Iowa Code Section 346.27(22) related to joint county-city buildings; and (iv) any other exceptions under Iowa Code Section 403.19 in effect when this ordinance is adopted shall be collected against all taxable property within the Urban Renewal Area without any limitation as hereinabove provided.

Section 4. Unless or until the total assessed valuation of the taxable property in the Urban Renewal Area exceeds the total assessed value of the taxable property in the Urban Renewal Area as shown by the assessment roll referred to in Section 2 of this Ordinance, all of the taxes levied and collected upon the taxable property in the Urban Renewal Area shall be paid into the funds for the respective taxing districts as taxes by or for the taxing districts in the same manner as all other property taxes.

Section 5. At such time as the loans, advances, indebtedness, bonds and interest thereon of the City of Carlisle, State of Iowa, referred to in Section 3 hereof have been paid, all monies thereafter received from taxes upon the taxable property in the Urban Renewal Area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property.

Section 6. All ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. The provisions of this Ordinance are intended and shall be

-3-

construed so as to fully implement the provisions of Section 403.19 of the Code of Iowa, as amended, with respect to the division of taxes from property within the Urban Renewal Area as described above. In the event that any provision of this Ordinance shall be determined to be contrary to law, it shall not affect other provisions or application of this Ordinance which shall at all times be construed to fully invoke the provisions of Section 403.19 of the Code of Iowa with reference to the Urban Renewal Area and the territory contained therein.

Section 7. This Ordinance shall be in effect after its final passage, approval and publication as provided by law.

PASSED AND APPROVED this __________ day of _______________, 2017.

Mayor

ATTEST: City Clerk

Read First Time: ____________________, 2017 Read Second Time: __________________, 2017 Read Third Time: ___________________, 2017 PASSED AND APPROVED: ____________________, 2017.

I, ____________________, City Clerk of the City of Carlisle, State of Iowa, hereby certify that the above and foregoing is a true copy of Ordinance No. __________ passed and approved by the City Council of the City at a meeting held ____________________, 2017, signed by the Mayor on ____________________, 2017, and published in the Carlisle Citizen on ____________________, 2017.

(SEAL)

City Clerk, City of Carlisle, State of Iowa

01354132-1\13663-076

CITY OF CARLISLE, IOWA

RESOLUTION NO.

A RESOLUTION TO APPROVE VOLUNTARY ANNEXATION OF LAND OWNED BY HEARTLAND CO-OP

WHEREAS, the City of Carlisle received a request for voluntary annexation from Terry Frahm

representing Heartland Co-op which owns the property shown on the attached map with a legal description of:

“That part of the Southwest ¼ of the Southwest ¼ Section 27, Township 78 North, Range 23

West of the 5th P.M., Polk County, Iowa, lying Southwesterly of the Union Pacific Railroad Right-of-Way.”

, and WHEREAS, the Carlisle City Council adopted Resolution 2017022404 approving said voluntary

annexation following proper notifications and publication of notice, and WHEREAS, it was discovered that a notice of annexation was not sent to the City of Des Moines by

certified mail, and WHEREAS, said notice was sent by certified mail to the City of Des Moines on 28 April 2017 . NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Carlisle that the annexation

of the property shown on the attached map, along with the adjacent right-of-way, and legally described as “That part of the Southwest ¼ of the Southwest ¼ Section 27, Township 78 North, Range 23 West of the 5th P.M., Polk County, Iowa, lying Southwesterly of the Union Pacific Railroad Right-of-Way.”, is hereby approved.

Adopted this 22nd day of May 2017 ________________________________ Ruth Randleman Mayor Attest:

____________________________ Martha Becker City Clerk

CITY OF CARLISLE

RESOLUTION NO.

RESOLUTION APPROVING AGREEMENT FOR PROFESSIONAL SERVICES WITH SEH, INC. FOR ANNEXATION STUDY

WHEREAS, the City of Carlisle wishes to conduct a study to analyze the annexation of land for future

development for the City of Carlisle; and, WHEREAS, Short-Elliot-Hendrickson, Inc. (SEH, Inc) presents the attached agreement for services related

to this study. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlisle, Iowa that the attached

Agreement for Professional Services for an Annexation Feasibility Study is approved and the Mayor is authorized to sign on behalf of the City of Carlisle.

PASSED AND APPROVED by the City Council this 22nd day of May, 2017.

________________________________

Ruth Randleman MAYOR

ATTEST: ________________________________________ Martha Becker CITY CLERK

Short Elliott Hendrickson Inc. Letter Agreement - 1 City of Carlisle, Iowa (Rev. 07.14.16)

AGREEMENT FOR PROFESSIONAL SERVICES This Agreement is effective as of May 22, 2017, between City of Carlisle, Iowa (City) and Short Elliott Hendrickson Inc. (Consultant). This Agreement authorizes and describes the scope, schedule, and payment conditions for Consultant’s work on the Annexation Feasibility Study. Client’s Authorized Representative: The Honorable Mayor Ruth Randleman Address: City of Carlisle, Iowa 195 N. First Street Carlisle, IA 50047 Telephone: 515.989.3224 email: alent@carlisleiowa.org Client Service Manager: Lucas Casey, MPA Project Manager: Ross Harris, AICP Address: Short Elliott Hendrickson, Inc. 5414 NW 88th Street, Suite 140 Johnston, IA 50131 Telephone: 515.608.6000 email: lcasey@sehinc.com; rharris@sehinc.com

Scope: The Basic Services to be provided by the Consultant as set forth in the “Scope of Work” section of Exhibit A-1 are provided subject to the attached General Conditions of the Agreement for Professional Services (General Conditions Rev. 07.14.16), which is incorporated by reference herein and subject to Exhibits attached to this Agreement. Schedule: The schedule of the professional services to be performed shall conform to the “Project Schedule” set forth in Exhibit A-1 to this Agreement. Any changes to the Schedule shall be approved by the authorized City representative. The City agrees the Consultant is not responsible for project delays arising from a change to the scope of services or other factors not related to the actions of the Consultant. Payment: The City agrees to pay the Consultant the not-to-exceed amount of $20,00.00 on an hourly basis as described in the “Fee for Services” section of Exhibit A-1 to this Agreement. The payment method, basis, frequency and other special conditions are set forth in attached Exhibit A-2. This Agreement for Professional Services, attached General Conditions, and Exhibits and any Attachments (collectively referred to as the “Agreement”) supersedes all prior contemporaneous oral or written agreements and represents the entire understanding between Client and Consultant with respect to the services to be provided by Consultant hereunder. In the event of a conflict between the documents, this Agreement for Professional Services and the General Conditions (including scope, schedule, fee and signatures) shall take precedence over attached Exhibits unless noted below under “Other Terms and Conditions”. This Agreement may not be amended except by written agreement signed by the authorized representatives of each party. Other Terms and Conditions: Other or additional terms contrary to the General Conditions that apply solely to this project as specifically agreed to by signature of the Parties and set forth herein: None.

Short Elliott Hendrickson Inc. City of Carlisle, Iowa

By:

By:

Title:

Lucas Casey, MPA Client Service Manager Short Elliot Hendrickson Inc

Title:

Ruth Randleman Mayor City of Carlisle, Iowa

EXHIBIT A-1

Engineers | Architects | Planners | Scientists

Short Elliott Hendrickson Inc., 5414 NW 88th Street, Suite 140, Johnston, IA 50131-1701 SEH is 100% employee-owned | sehinc.com | 515.608.6000 | 888.908.8166 fax

May 11, 2017 RE: City of Carlisle, Iowa Annexation Feasibility Study SEH No. P-140623 14.00

Mr. Andrew Lent City Administrator City of Carlisle 195 N. First St. Carlisle, IA 50047 Dear Mr. Lent: Thank you for inviting SEH to develop this scope of work to complete an Annexation Feasibility Study (further referred to as “the study”) for the City of Carlisle (further referred to as “City”). We are excited for the opportunity to be involved in the early stages of Carlisle’s continued growth. This letter provides additional details on our team’s proposed scope of work, an outline for the project’s schedule, our proposed fee for services, the project leadership team and support, and project deliverables. We look forward to beginning the process and discussing how our team can fully meet the City’s expectations and support Carlisle’s future growth. Understanding the Issues Based on our initial meetings and conversations with the Mayor and city staff, it is our understanding the Mayor and City Council are interested in exploring the potential for annexing land into the City’s corporate limits to facilitate development activity. We understand the land being considered for annexation would likely support various densities of residential development, but could also include mixed commercial uses. And, although a priority area for annexation has been discussed, we understand no formal steps have been taken to determine which parcels of land and/or how much land should be pursued for annexation. Scope of Work The following seven (7) phases of work represent taking the study from beginning to final preparations for annexation. Each phase includes a number of tasks – described generally – to be completed by SEH staff in consultation with the City. (Please note Phase 7 is only included in this scope for planning purposes; it is not included in the initial scope of work or fee and may require legal consultation.) Phase 1: Information Gathering 1. Research related plans, studies, and historical annexation discussions/pursuits 2. Conduct area analysis including neighboring jurisdictions (i.e. Des Moines, Pleasant Hill)

Mr. Andrew Lent EXHIBIT A-1 May 11, 2017 Page 2 Phase 2: City Council Vision and Direction (City Council work session or meeting) 1. Present historical perspective and area analysis 2. Determine Council’s vision of ideal outcomes 3. Identify potential opportunities and challenges 4. Define the path forward Phase 3: Property Owner Research and Public Input 1. Compile public information on ownership of impacted properties (maximum of 50 parcels) 2. Attempt to contact owners of impacted properties (maximum of 30 property owners)

• Gauge interest in voluntarily annexation and development • Present benefits of annexation • Inform of future property tax liability, deferment options

3. Provide opportunities and method for public input, if desired by City

Phase 4: Development and Infrastructure Planning/Phasing 1. Develop conceptual development plan for targeted areas (based on continuation of City’s 2010

comprehensive plan and land use plan) 2. Include planning for City infrastructure and public service provision 3. Develop initial annexation/phasing timeline (based on City’s capacity for sustainable growth)

Phase 5: Fiscal Impact Analysis 1. Estimate necessary City investment for public infrastructure and operating expenditures for service

provision (police, fire, road maintenance, building, water, sewer, etc.) 2. Estimate new revenue generation potential (property tax revenue, water/wastewater, utilities, etc.) 3. Determine potential fiscal cost/benefit of annexation to City Phase 6: Final Report on Annexation Feasibility (City Council meeting or work session) 1. Prepare draft Final Report for initial review and comment from city staff 2. Prepare and present Final Report to Mayor and City Council

Phase 7: Preparation for Legal Review and City Development Board Process (TBD if necessary/desired, not included in initial scope of work or fee) Project Schedule Depending on timing of approval by the City Council, SEH anticipates being able to compete phases 1-6 of the study in approximately 6-8 months. An estimated duration for each of the first five phases is provided below. • Phase 1: Information Gathering – 1 month • Phase 2: City Council Vision and Direction – 1 month • Phase 3: Property Owner Research and Public Input – 1-2 months • Phase 4: Development and Infrastructure Planning/Phasing – 1-2 months • Phase 5: Fiscal Impact Analysis – 1-2 months • Phase 6: Final Report on Annexation Feasibility – 1 month • Phase 7: Preparation for Legal Review and City Development Board Process (TBD if

necessary/desired, not included in initial scope of work or fee) For example, if work begins on or about June 1, 2017, we anticipate completing the study by no later than February 1, 2018.

Mr. Andrew Lent EXHIBIT A-1 May 11, 2017 Page 3 Fee for Services We propose completing the Annexation Feasibility Study for the not-to-exceed amount of $20,000.00 on an hourly basis for basic services and reimbursable expenses as summarized in the following table*.

Project Phase Task Description Estimated

Task Hours Estimated Task Fee

Phase 1: Information Gathering

Research related plans, studies, historical discussions/pursuits

6 $ 950.00

Conduct area analysis including neighboring jurisdictions 8 1,200.00 Phase 2: City Council Vision and Direction (City Council work session)

Present historical perspective and area analysis

12 1,980.00 Determine Council’s vision of ideal outcomes Identify potential opportunities and challenges Define the path forward

Phase 3: Property Owner Research

Compile public information on ownership of impacted properties

4 600.00

Attempt to contact owners of impacted properties 12 1,800.00

Phase 4: Development and Infrastructure Planning/Phasing

Develop conceptual development plan for targeted areas 14 2,450.00 Include planning for City infrastructure and service provision

10 1,850.00

Develop initial annexation/phasing timeline 8 1,400.00

Phase 5: Fiscal Impact Analysis

Estimate necessary City investment for public infrastructure and operating expenditures for service provision

8 1,360.00

Estimate new revenue generation potential 8 1,200.00 Determine potential fiscal cost/benefit of annexation to City 6 900.00

Phase 6: Final Report on Annexation Feasibility

Prepare draft Final Report for initial review and comment 8 1,320.00 Prepare and present Final Report to Mayor and City Council

6 990.00

Anticipated Expenses Meeting attendance/support, deliverables, equipment use, travel, printing, etc.

2,000.00

Total Not-to-Exceed Fee $20,000.00

As summarized in the above table, the proposed not-to-exceed fee includes anticipated expenses and equipment use by the Consultant related to meeting attendance and support, equipment use, travel, printing, etc. These anticipated expenses include, but are not limited to: • Meetings – Attend and support up to three (3) meetings/work sessions with Mayor and City Council:

1. Initial “kick-off” work session 2. Intermediate update 3. Final Report presentation *Additional informal meetings with city staff and occasional attendance of regular City Council meetings is anticipated and included in the scope.

• Deliverables - Routine project status updates, intermediate reports upon completion of each phase, project-related mapping and graphics, and a comprehensive report upon completion of the study (other specific deliverables as desired and agreed to by the City and Consultant)

• Other expenses included – Equipment use, travel, basic printing (maximum of 8 printed copies per report), and miscellaneous expenses related to the study

*Note: The estimated hours per task and resulting estimated fee per task listed in the above table are initial estimates and may vary as the study progresses, however, the total fee including expenses will not exceed $20,000.00 without amendment to the scope of work and prior approval by the City.

Mr. Andrew Lent EXHIBIT A-1 May 11, 2017 Page 4 Project Support This study will be led by an experienced team of project professionals out of the SEH-Des Moines office with additional GIS, planning, and land development technical support from our SEH-St. Paul office. The primary project team includes the following SEH-Des Moines staff and a summary of their anticipated involvement in the study is included (more information on experience and credentials available upon request):

• Ross Harris, AICP, Project Manager and Senior Planner – Harris will serve as project manager and the City’s main point of contact for the annexation study. He will lead the public input/engagement aspects of the study and provide general planning leadership.

• Lucas Casey, MPA, Client Service Manager and Senior Project Specialist – Casey is the City’s client service manager and will provide general research, strategic planning, public input/engagement, and fiscal analysis support for the study.

• Perry Gjersvik, PE, Senior Professional Engineer – Gjersvik will provide public infrastructure planning and cost estimating for the study.

Additionally, our local team has the support of more than 800 subject matter experts in 31 SEH offices across the upper Midwest. In the event the study requires additional support from outside SEH, our team will pursue additional partners in consultation with the City. Thank you again for the opportunity to prepare this scope of work for the City of Carlisle. We look forward to beginning this exciting project with the Mayor, City Council, and staff. Sincerely,

Lucas J. Casey Client Service Manager

Short Elliott Hendrickson Inc. Exhibit A-2 - 1 City of Carlisle, Iowa (Rev. 02.06.14)

Exhibit A-2 to Agreement for Professional Services Between City of Carlisle, Iowa (Client)

and Short Elliott Hendrickson Inc. (Consultant)

Dated May 22, 2017

Payments to Consultant for Services and Expenses Using the Hourly Basis Option

The Agreement for Professional Services is amended and supplemented to include the following agreement of the parties:

A. Hourly Basis Option

The Client and Consultant select the hourly basis for payment for services provided by Consultant. Consultant shall be compensated monthly. Monthly charges for services shall be based on Consultant’s current billing rates for applicable employees plus charges for expenses and equipment.

Consultant will provide an estimate of the costs for services in this Agreement. It is agreed that after 90% of the estimated compensation has been earned and if it appears that completion of the services cannot be accomplished within the remaining 10% of the estimated compensation, Consultant will notify the Client and confer with representatives of the Client to determine the basis for completing the work.

Compensation to Consultant based on the rates is conditioned on completion of the work within the effective period of the rates. Should the time required to complete the work be extended beyond this period, the rates shall be appropriately adjusted.

B. Expenses

The following items involve expenditures made by Consultant employees or professional consultants on behalf of the Client. Their costs are not included in the hourly charges made for services and shall be paid for as described in this Agreement but instead are reimbursable expenses required in addition to hourly charges for services:

1. Transportation and travel expenses. 2. Long distance services, dedicated data and communication services, teleconferences, Project Web sites,

and extranets. 3. Lodging and meal expense connected with the Project. 4. Fees paid, in the name of the Client, for securing approval of authorities having jurisdiction over the

Project. 5. Plots, Reports, plan and specification reproduction expenses.

6. Postage, handling and delivery. 7. Expense of overtime work requiring higher than regular rates, if authorized in advance by the Client. 8. Renderings, models, mock-ups, professional photography, and presentation materials requested by the

Client. 9. All taxes levied on professional services and on reimbursable expenses. 10. Other special expenses required in connection with the Project. 11. The cost of special consultants or technical services as required. The cost of subconsultant services

shall include actual expenditure plus 10% markup for the cost of administration and insurance.

The Client shall pay Consultant monthly for expenses.

Short Elliott Hendrickson Inc. Exhibit A-2 - 2 City of Carlisle, Iowa (Rev. 02.06.14)

C. Equipment Utilization

The utilization of specialized equipment, including automation equipment, is recognized as benefiting the Client. The Client, therefore, agrees to pay the cost for the use of such specialized equipment on the project. Consultant invoices to the Client will contain detailed information regarding the use of specialized equipment on the project and charges will be based on the standard rates for the equipment published by Consultant.

The Client shall pay Consultant monthly for equipment utilization.

From: npmiller01@aol.comTo: Andy LentCc: opmiv@aol.comSubject: Expansion PlansDate: Wednesday, May 10, 2017 10:47:58 AM

Andrew: This message follows our telephone conversation of this day among you, Owen McConville IVand me dealing with the probable purchase of Lots 1 and 2, Block P, Carlisle original town plat. Per our conversation, the elements of a written Offer to Buy would be: 1. The Buyer, I.C.L. Properties, LLC2. Seller, City of Carlisle3. Rezoning the property from C-3 Central Business District to M-14. Purchase Price, $25,000.00 cash5. The Seller will provide Buyer with an abstract of title to the subject property6. The earnest money payment would be waived. A written offer will be in your hands no later than Wednesday, May 17, in order to include it in thepackages for your anticipated council meeting on Monday, May 22. Ned P. MillerBeatty & Miller, P.C.2700 Westown Pkwy., Ste. 310West Des Moines, IA 50266Telephone: (515) 225-1100Fax: (515) 457-9686Email: npmiller01@aol.com

CITY OF CARLISLERecommended 7-1-2017 Non-union Salary and Wage Schedule

Position EmployeeANNUAL SALARY

HOURLY RATE

ANNUAL SALARY

HOURLY RATE

PERCENT INCREASE NOTES

Electric Supt. Don Miller 78,811$ 80,978$ -$ 2.75% PW Union IncreasePublic Works Supt. Steve O'Braza 68,660$ 70,548$ -$ 2.75% PW Union IncreaseCity Administrator Andrew Lent 88,941$ 91,387$ 2.75% Budgeted IncreaseCity Clerk Martha Becker 55,000$ 57,750$ Effective 9/4/2017 (pending Council Approval)Utility Billing Clerk Gabby Breheny 16.50$ 17.00$ Effective 8/9/2017 (pending Council Approval)Cust. Service Clerk Shalee Crispen 17.37$ 17.85$ 2.75% Budgeted IncreaseFire Dept. Clerk Samantha Cummings 12.85$ 13.21$ $1 per hour plus EMT ratePT EMT 11.85$ 12.21$ 3.00% Budgeted IncreasePT Paramedic 15.45$ 15.91$ 3.00% Budgeted IncreaseFire Dept. Mechanic Jeff Johnson 25.11$ 25.86$ 3.00% Budgeted IncreasePark/Rec Supt Ronda Frost 25,000$ 25,688$ 2.75% Budgeted IncreasePark Worker Dave Sigmund 13,044$ 13,435$ 3.00% Budgeted IncreasePolice Chief Eric Spring 79,955$ 81,554$ 2.00% Police Union ATB IncreasePolice Lieutenant Matt Koch 69,118$ 70,501$ 2.00% Police Union ATB IncreasePolice Clerk Shelly Nelson 17.41$ 17.76$ 36,937.06$ 2.00% Police Union ATB IncreaseCrossing Guard Leann Rice 11.00$ 11.22$ 23,337.60$ 2.00% Police Union ATB Increase

152,054.91$ 60,274.66$

Police Chief Eric Spring 79,955$ 82,154$ 2.75% Police Union ATB IncreasePolice Lieutenant Matt Koch 69,118$ 71,019$ 2.75% Police Union ATB IncreasePolice Clerk Shelly Nelson 17.41$ 17.89$ 37,208.65$ 2.75% Police Union ATB IncreaseCrossing Guard Leann Rice 11.00$ 11.30$ 23,509.20$ 2.75% Police Union ATB Increase

153,172.96$ 60,717.85$

Difference 1,561.25$

Proposed For 7-1-17Current

Carlisle Fire Department Fire • Rescue

135 N 2nd Street Carlisle, Iowa 50047 515-989-3311

Dear Mayor & City Council,

The department has been working very hard the last few months trying to find a solution to fix our shortage on radios. Motorola Solutions offers a lease to own option that would help supply the sufficient amount of radios needed without the large upfront cost. The total transaction is $181,726.40, we would need to place $40,000.00 down, which we have left over from the cost of the ambulance. With the $40,000.00 we would not have to make a payment until July of 2018. Motorola solution offers three different leasing options. The first one is a 7 year lease with a payment of $23,823.07, the 5 year lease is $31,976.00, and the 4 year lease is $39,026.63. We already have $6,000.00 budgeted for the new ambulance and $6,000.00 budgeted for the new engine, for radios. This will help cover more than half of the cost for summer 2018. The rest of the money would come out of what we already have budgeted for radios on a normal fiscal year. This would provide us with enough hand held radios, truck radios, and repeaters for the police vehicles as well as the fire department vehicles. The police Department would be paying for a portion of the lease fees. This would allow us to purchase the needed amount of radios for the public safety departments. Down Payment $ 40,000.00 Total Cost now $ 40,000.00 7 year Lease Payment $ 23,823.07 5 Year Lease Payment $31,976.31 4 Year Lease Payment $39,026.63 Sincerely,

Cory Glover

Fire Chief

5/17/2017 https://mcclease.motorolasolutions.com/proposal.htm?id=2243&LWOP=FALSE&LTOP=FALSE

https://mcclease.motorolasolutions.com/proposal.htm?id=2243&LWOP=FALSE&LTOP=FALSE 1/2

 

Date: May 17,2017

To: Landon Loftsgard Attn: Landon Loftsgard 6165 NW 86th St Johnston, IA  50131

Re: Communications System Financing Proposal

 

Motorola Solutions, Inc. is pleased to submit the following proposal for thefinancing of your Motorola communications equipment in accordance with theterms and conditions outlined below:

 

Transaction Type: Municipal Lease Purchase Agreement (Tax­exempt)

Lessor: Motorola Solutions, Inc. (or its Assignee)

Lessee: Landon Loftsgard

Total Transaction Value: $ 181,726.40

Down Payment: $ 40,000.00

Balance to Finance: $ 141,726.40

Equipment: XE APX Financing (As per the Motorola Solutions equipment proposal.)

Title: Title to the equipment will vest with the Lessee.

Insurance: Lessee will be responsible to insure the equipment as outlined in the lease contract.

Taxes: Personal property, sales, leasing, use, stamp, or other taxes are for the account of the Lessee.

 

Option 1 Option 2 Option 3

Lease Term 7 Years 5 Years 4 Years

Payment Type Annually Arrears Annually Arrears Annually Arrears

Lease Rate 4.16% 4.08% 3.91%

Lease Factor 0.168092 0.225620 0.275366

Payment $23,823.07 $31,976.31 $39,026.63

PaymentCommencement

First payment due oneyear after contractexecution

First payment due oneyear after contractexecution

First payment due oneyear after contractexecution

 

Expiration: The above lease rates and factors are valid for all leases commenced by 6/16/2017. After thisdate the rate will be reset to reflect current market conditions.

Program Highlights: Terms up to seven years can be structured for Municipal Lease Purchase Agreement (Tax­exempt).

One hundred percent (100%) of a project’s acquisition cost can be financed.

Payment frequency can be matched to meet your cash flow and budget requirements.

No pre­payment penalties.

Future equipment upgrades can easily be accommodated via add­on lease schedules,restructuring already existing deals, etc.

Qualifications: Receipt of a properly executed documentation package.Lessee qualifies as a political subdivision or agency of the State as defined in the InternalRevenue Code of 1986. The interest portion of the Lease Payments shall be excludable from

5/17/2017 https://mcclease.motorolasolutions.com/proposal.htm?id=2243&LWOP=FALSE&LTOP=FALSE

https://mcclease.motorolasolutions.com/proposal.htm?id=2243&LWOP=FALSE&LTOP=FALSE 2/2

the Lessor's gross income pursuant to Section 103 of the Internal Revenue Code.

Receipt of a copy of the last 2 year's audited financial statements and current year's budgetfrom the Lessee.

This proposal should not be construed as a commitment to finance. It is subject to final creditapproval.

Documentation: Municipal Equipment Lease Purchase Agreement Opinion of Counsel Schedule A/Equipment List Schedule B/Amortization Schedule 8038G UCC­1 Certificate of Incumbency Statement of Essential Use/Source of Funds Evidence of Insurance or Statement of Self Insurance Resolution from governing body authorizing the execution of the Lease Delivery & Acceptance Certificate

 

Please feel free to contact me if there are any questions, or if an alternate structuring is required. 

Regards, Landon Loftsgard Account Manager +1 (515) 664­7799

Date: May. 15, 2017

Motorola Solutions Inc.

Prepared By: Landon Loftsgard Phone: 515-664-7799 Customer #:

Contract:

Prepared For: Chief Cory Glover Bill to TBD Ship to TBD

Company: Carlisle Fire Dept. Address: Address:

Phone:

Email:

Qty. Model Description List Price Contract Price Price

7 M30TSS9PW1 N APX7500 DUAL BAND MID POWER 4,620.00$ 32,340.00$

7 GA00306 ADD: VHF MP PRIMARY BAND

7 GA00225 ADD: 7/800MHZ SECONDARY BAND

7 GA00579 ADD: ENABLE DUAL BAND OPERATION

7 G806 ADD: ASTRO. DIGITAL CAI OPERATION

7 G51 ENH: SMARTZONE OPERATION APX

7 G361 ADD: P25 TRUNKING SOFTWARE

7 GA00580 ADD: TDMA OPERATION

7 GA00631 ADD: DVRS MSU ACTIVATION

7 G442 ADD: O5 CONTROL HEAD

7 G444 ADD: APX CONTROL HEAD SOFTWARE

7 G67 ADD: REMOTE MOUNT MID POWER

7 G335 ADD: ANT 1/4 WAVE 762-870 MHZ

7 G300 ADD:1/4 WAVE ROOF TOP ANT VHF

7 W22 ADD: PALM MICROPHONE

7 B18 ADD: AUXILARY SPKR 7.5 WATT

7 G78 ENH: 2 YR SFS LITE

7 G996 ENH: OVER THE AIR PROVISIONING

7 GA00229 ENH: APX GPS ACTIVATION

7 GA00226 ADD: GPS ANTENNA

7 G298 ENH: ASTRO 25 OTAR W/ MULTIKEY

7 G851 ADD: AES/DES-XL/DES-OFB ENCRYPTION

7 G609 ADD: REMOTE MOUNT CBL 50 FEET

7 SRVC Install and Programming 350.00$ 2,450.00$

22 H91TGD9PW6 N APX 8000 ALL BAND PORTABLE MODEL 2.5 4,793.50$ 105,457.00$

22 H38 ADD: SMARTZONE OPERATION

22 Q806 ADD: ASTRO DIGITAL CAI OPERATION

22 Q361 ADD: P25 9600 BAUD TRUNKING

22 QA00580 ADD: TDMA OPERATION

22 Q58 ADD: 3 YEAR SERVICE FROM THE START LITE

22 INCL ADD: ENABLE INTERNAL GPS OPERATION

22 G996 ADD: PROGRAMMING OVER P25 (OTAP)

22 Q498 ENH: ASTRO 25 OTAR W/ MULTIKEY

22 Q15 ENH: AES/DES,DES-XL,DES-OFB

22 QA02006 ADD: APX8000XE RUGGED

22 QA01427 ADD: GREEN XE COLOR

22 QA05509 DELETE: UHF BAND

22 SVRC Programming 38.00$ 836.00$

22 SVRC Alignment 38.00$ 836.00$

22 WPLN7080 IMPRES CG SU CHARGER 87.50$ 1,925.00$

22 PMMN4099A AUDIO ACCESSORY-REMOTE SPEAKER MICROPHONE 92.40$ 2,032.80$

13 TT2794 VRX1000-7/800 769-775/851-869 MHZ 2,840.00$ 36,920.00$

13 TT05716AA DVR/VRX FOR USE WITH DUAL BAND APX MOBILE

13 TT05951AA ADD: P25 PHASE 1 OPERATION

13 TT05953AA ADD: P25 ENHANCED TRUNKING FEATURES

13 SRVC Programming and Install 350.00$ 4,550.00$

Subtotal 187,346.80$ Quantity Discount (5,620.40)$

Total 181,726.40$

THIS QUOTE IS BASED ON THE FOLLOWING:

1 This quotation is provided to you for information purposes only and is not intended to be an offer or a binding proposal.

If you wish to purchase the quoted products, Motorola will be pleased to provide you with our standard terms and conditions of sale

(which will include the capitalized provisions below), or alternatively, receive your purchase order which will be acknowledged.

Thank you for your consideration of Motorola products.

2 Quotes are exclusive of all installation and programming charges (unless expressly stated) and all applicable taxes.

3 Prices quoted are valid for thirty(30) days from the date of this quote.

APX Quote

From: Wanke, AmandaSubject: DART Post-Commission Meeting Email - May 2017Date: Friday, May 05, 2017 11:56:40 AM

Good afternoon, Below is a summary of the key actions and activities from the Tuesday, May 2, 2017 DART Commission meeting. This email is sent out after each meeting to all member community citycouncil members, mayors, city managers, and county supervisors as well as other key officials and stakeholders. The entire board agenda is always available at our website. Click here toview the full agenda on DART’s website. DART Commission Meeting, May 2, 2017:

All consent and action items were approved. Highlights from the meeting include:

· FY 2018–2027 DART Capital Improvement Plan: The DART Commission approved the FY 2018–2027 DART Capital Improvement Plan (CIP). Plan highlights include budget allocationsfor various projects, with fleet replacements being the largest expense of the CIP.

· Farmers’ Market D-Line Service: DART and the Downtown Farmers’ Market reached a funding partnership to expand D-Line service beginning at 7 a.m., starting on Saturday, May

6, 2017, through the Farmers’ Market season. DART and The Market are working together to promote the new service.

· June Service Change, Route 6 Changes: DART’s second scheduled service change of the calendar year will occur on Sunday, June 4, 2017. This service change will include theend-of-school service for the summer, minor schedule adjustments on Local Route 6 and 16 and the re-routing of Route 6 to serve Principal Park. Route 6 will travel down SW2nd/SW 3rd to Martin Luther King Jr. Pkwy instead of on SW 7th. This will allow DART a cost neutral way to serve both Principal Park and new housing that has been built near thestadium.

· August Service Change, Routes 91/5 Changes: DART and the city of Johnston often hear from residents who want and need more transportation options. One way DART is looking

at expanding service in Johnston is to run DART Local Route 5 further north on Merle Hay Road to NW 70th Street to serve Johnston City Hall, the Johnston Public Library and severalnew housing options along this corridor. This would provide all-day service to Johnston along the Merle Hay Corridor, but in order to make this happen, DART would combineExpress Route 91 with Local Route 5. DART is collecting input from riders and community members in Johnston who would be impacted by this change.

Amanda Wanke, Chief Engagement and Communications OfficerDART, Des Moines Area Regional Transit Authority620 Cherry Street, Des Moines, IA 50309Direct: 515-283-8124 | Cell: 515-360-2125Fax: 515-283-8135 | ridedart.com Enriching Lives, Connecting Communities, Expanding Opportunities