Chairperson Neuzil called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 9:01 a.m. Members present were: Pat Harney, Mike Lehman, Terrence Neuzil, Sally Stutsman; absent: Carol Thompson.

Unless otherwise noted, all actions were taken by the following roll call: aye: Harney, Stutsman, Neuzil, Lehman; absent: Thompson.

Motion by Stutsman, second by Lehman, to approve the claims on the Auditor’s Claim Register, as approved by a majority of the Supervisors.

Motion by Lehman, second by Harney, to approve the minutes of the formal meetings of March 11, 2004, March 16, 2004 and March 22, 2004.

Motion by Harney, second by Stutsman, to approve the payroll authorizations submitted by department heads, as approved by a majority of the Supervisors.

Motion by Harney, second by Stutsman, to approve and authorize the Chairperson to sign: a Renewal Application for Class B Beer Permit, Application For Outdoor Service Area, and Application For Sunday Sales Privilege for Morse Community Club, Iowa City, as submitted by Marjorie Knepp.

Motion by Lehman, second by Stutsman, to accept the Recorder’s Report of Fees Collected for the month of January, 2004, in the amount of $137,451.61, as submitted by County Recorder Kim Painter.

Whereas, property taxes are levied in the General Supplemental Fund for allowable expenditures made from the General Basic Fund; and

Whereas, it is desired to make periodic transfers of the budgeted amount from the General Supplemental Fund to the General Basic Fund during the 2003-2004 fiscal year as needed; and

Whereas, the budgeted amount to be transferred is $820,954.

Therefore be it resolved that the Auditor is authorized to make periodic transfers from the General Supplemental Fund to the General Basic Fund during the 2003-2004 fiscal year as funds are needed and available, not to exceed the sum of $820,954.

Motion by Harney, second by Stutsman, to approve Resolution 03-25-04-T1.

Whereas, the Johnson County Board of Supervisors adopted the 1998 Johnson County Land Use Plan pursuant to the requirements of Chapter 335 of the Code of Iowa that county zoning regulations be made in accordance with a comprehensive plan; and

Whereas, the 1998 Johnson County Land Use Plan contains policies and strategies for economic development; and

Whereas, the Johnson County Board of Supervisors, in attempting to draft additional Economic Development policies for the unincorporated areas of Johnson County, and after consideration and public hearings, proposes to adopt the above referenced Economic Development policies by amending the 1998 Johnson County Land Use Plan to include the Economic and Community Development policies for Unincorporated Areas of Johnson County, Iowa; and

Whereas, the recommended amendments to the 1998 Johnson County Land Use Plan includes, specifically: replacing existing references to Economic Development in the sections of the Land Use Plan dealing with Johnson County Land Use Policies (General Development Policies; Economic Development) and Johnson County Land Use Strategies (Economic Development) with reference to an addendum entitled: "Economic and Community Development policies for Unincorporated Areas of Johnson County, Iowa" and by attaching the addendum to the Land Use Plan; and

Whereas, the Johnson County Zoning Commission has, after public hearing, reviewed the proposed amendments to the 1998 Johnson County Land Use Plan; and

Whereas, the Johnson County Board of Supervisors conducted a public hearing on March 11, 2004, on the proposed amendments to the 1998 Johnson County Land Use Plan;

Now, Therefore, Be It Resolved by the Johnson County Board of Supervisors that the amendments set out above to the 1998 Johnson County Land Use Plan be adopted; and

Motion by Stutsman, second by Lehman, to approve Resolution 03-25-04-Z1.

Motion by Stutsman, second by Harney, to approve and authorize the Chairperson to sign the Fiscal Year 2004 County Farm Lease Agreement.

Whereas, pursuant to the provisions of Section 331.402 of the Code of Iowa, notice duly published and hearing held thereon, the Board of Supervisors (the "Board") of Johnson County, Iowa (the "County"), has heretofore determined to contract indebtedness and enter into a loan agreement (the "Loan Agreement") in the principal amount of $3,945,000 for the purpose of paying the cost, to that extent, of funding health and liability self-insurance programs; and

Whereas, pursuant to advertisement of sale, bids for the purchase of a $3,945,000 General Obligation Insurance Note, Series 2004 ( the "Note") to be issued in evidence of the County’s obligation under the Loan Agreement were received and canvassed on behalf of the County and the substance of such bids noted in the minutes; and

Whereas, upon final consideration of all bids received for the purchase of the Note, the bid of 1.10% from Hills Bank and Trust Company, is the best, such bid proposing the lowest interest cost to the County; and

Whereas, it is necessary at this time to authorize and approve the Loan Agreement and to make provision for the sale and issuance of the Note and for the levy of taxes to pay the Note;

Now, Therefore, Be It Resolved by the Board of Supervisors of Johnson County, Iowa, as follows:

Section 1. The bid referred to in the preamble hereof is hereby accepted, and the County hereby determines to enter into the Loan Agreement with the aforesaid bidder, as lender (the "Lender"), in substantially the form placed on file with the Board, providing for a loan to the County in the principal amount of $3,945,000 for the purpose or purposes set forth in the preamble hereof.

The Chairperson and County Auditor are hereby authorized and directed to sign the Loan Agreement on behalf of the County, and the Loan Agreement is hereby approved.

Section 2. The Note is hereby authorized to be issued to the Lender in the principal amount of $3,945,000 and shall be dated as of the date of its delivery to the Lender and shall be payable as to both principal and interest in the manner hereinafter specified.

The County Treasurer is hereby designated as the registrar and paying agent for the Note and may be hereinafter referred to as the "Registrar" or the "Paying Agent".

Principal of the Note shall bear interest until paid from the date of the Note or from the last date on which interest has been paid at the rate of 1.10% per annum. Interest will be paid on December 1, 2004, and at maturity on June 1, 2005. Principal of the Note shall be paid in full at maturity on June 1, 2005.

Payment of interest on the Note shall be made to the registered owner appearing on the registration books of the County at the close of business on the fifteenth day of the month next preceding the payment date and shall be paid by check or draft mailed to the registered owner at the address shown on such registration books. Principal and the final installment of interest shall be payable only upon presentation and surrender of the Note to the Paying Agent.

The County reserves the right to prepay principal of the Note in whole or in part at any time prior to maturity upon terms of par and accrued interest. All principal so prepaid shall cease to bear interest on the prepayment date.

The County hereby pledges the faith, credit, revenues and resources and all of the real and personal property of the County for the full and prompt payment of the principal of and interest on the Note.

The Note shall be executed on behalf of the County with the official manual or facsimile signature of the Chairperson and attested by the official manual or facsimile signature of the County Auditor and shall have the County’s seal impressed or printed thereon and shall be a fully registered Note without interest coupons. In case any officer whose signature or the facsimile of whose signature appears on the Note shall cease to be such officer before the delivery of the Note, such signature or such facsimile signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery.

The Note shall be fully registered as to principal and interest in the name of the owner on the registration books of the County kept by the Registrar, and after such registration, payment of the principal thereof and interest thereon shall be made only to the registered owner or its legal representatives or assigns. The Note shall be transferable only upon the registration books of the County upon presentation to the Registrar, together with either a written instrument of transfer satisfactory to the Registrar or the assignment form thereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner.

The record and identity of any owners of the Note shall be kept confidential as provided by Section 22.7 of the Code of Iowa.

Section 3. The Note shall be in substantially the following form:

(Form of Note)

GENERAL OBLIGATION INSURANCE NOTE, SERIES 2004

RATEMATURITY DATENOTE DATE

1.10%June 1, 2005(Closing Date)

Johnson County (the "County"), Iowa, for value received, promises to pay on the maturity date of this Note and in the manner hereinafter provided to or registered assigns, the principal sum of

THREE MILLION NINE HUNDRED FORTY-FIVE THOUSAND DOLLARS

at the office of the County Treasurer, Iowa City, Iowa (hereinafter referred to as the "Registrar" or the "Paying Agent"), with interest on said sum, until paid, at the rate per annum specified above from the date of this Note, or from the most recent interest payment date on which interest has been paid, on December 1, 2004, and at maturity on June 1, 2005, except as the provisions hereinafter set forth with respect to prepayment prior to maturity may be or become applicable hereto.

Interest on this Note is payable to the registered owner appearing on the registration books of the County maintained by the Registrar at the close of business on the fifteenth day of the month next preceding the payment date in lawful money of the United States of America by check or draft mailed to the registered owner at the address shown on such registration books. Principal and the final installment of interest will be payable only upon presentation and surrender of this Note to the Paying Agent.

This Note is issued by the County to evidence its obligation under a certain Loan Agreement, dated the date of this Note (the "Loan Agreement") and entered into by the County for the purpose of providing funds to pay the cost of funding health and liability self-insurance programs.

This Note is issued pursuant to and in strict compliance with the provisions of Chapter 331 of the Code of Iowa, 2003, and all other laws amendatory thereof and supplemental thereto, and in conformity with a resolution of the County Board of Supervisors authorizing and approving the Loan Agreement and providing for the issuance and securing the payment of this Note (the "Resolution"), and reference is hereby made to the Resolution and the Loan Agreement for a more complete statement as to the source of payment of this Note and the rights of the owner of this Note.

The County reserves the right to prepay principal of this Note, in whole or in part, at any time prior to maturity upon terms of par and accrued interest. All principal so prepaid will cease to bear interest on the prepayment date.

This Note is fully negotiable but shall be fully registered as to both principal and interest in the name of the owner on the books of the County in the office of the Registrar, after which no transfer shall be valid unless made on said books and then only upon presentation of this Note to the Registrar, together with either a written instrument of transfer satisfactory to the Registrar or the assignment form hereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner.

The County, the Registrar and the Paying Agent may deem and treat the registered owner hereof as the absolute owner for the purpose of receiving payment of or on account of principal hereof, premium, if any, and interest due hereon and for all other purposes, and the County, the Registrar and the Paying Agent shall not be affected by any notice to the contrary.

And It Is Hereby Certified and Recited that all acts, conditions and things required by the laws and Constitution of the State of Iowa, to exist, to be had, to be done or to be performed precedent to and in the issue of this Note were and have been properly existent, had, done and performed in regular and due form and time; that provision has been made for the levy of a sufficient continuing annual tax on all the taxable property within the County for the payment of the principal of and interest on this Note as the same will respectively become due; that the faith, credit, revenues and resources and all the real and personal property of the County are irrevocably pledged for the prompt payment hereof, both principal and interest; and that the total indebtedness of the County, including this Note, does not exceed any constitutional or statutory limitations.

In Testimony Whereof, Johnson County, Iowa, by its Board of Supervisors, has caused this Note to be sealed with its official seal, to be executed by its Chairperson and attested by its County Auditor, all as of (Closing Date).

JOHNSON COUNTY, IOWA

By (DO NOT SIGN)

Chairperson, Board of Supervisors

Attest:

County Auditor

(Seal)

ASSIGNMENT

For valuable consideration, receipt of which is hereby acknowledged, the undersigned assigns this Note to

________________________________________________________________________(Please print or type name and address of Assignee)

___________________________________________
PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

and does hereby irrevocably appoint _________________________, Attorney, to transfer this Note on the books kept for registration thereof with full power of substitution.

Dated:

Signature guaranteed:

__________________________________________

Section 4. The Note shall be executed as herein provided as soon after the adoption of this resolution as may be possible and thereupon shall be delivered to the Registrar for registration and delivery to the Lender, upon receipt of the loan proceeds, and all action heretofore taken in connection with the Loan Agreement is hereby ratified and confirmed in all respects.

Section 5. For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest on the Note as the same become due, there is hereby ordered levied on all the taxable property in the County for the year while the Note is outstanding, a tax sufficient for that purpose, and in furtherance of this provision, but not in limitation thereof, there is hereby levied on all the taxable property in the County the following direct annual tax:

For collection in the fiscal year beginning July 1, 2004,

sufficient to produce the net annual sum of $3,995,627.50.

Section 6. A certified copy of this resolution shall be filed with the County Auditor, and said Auditor is hereby instructed to enter for collection and assess the tax hereby authorized. When entering such taxes for collection, the County Auditor shall include the same as a part of the tax levy for Debt Service Fund purposes of the County and when collected, the proceeds of the taxes shall be converted into the Debt Service Fund of the County and set aside therein as a special account to be used solely and only for the payment of the principal of and interest on the Note hereby authorized and for no other purpose whatsoever.

Section 7. The interest or principal and both of them falling due on any date shall, if necessary, be paid promptly from current funds on hand in advance of taxes levied and when the taxes shall have been collected, reimbursement shall be made to such current funds to the sum thus advanced.

Section 8. It is the intention of the County that interest on the Note be and remain excluded from gross income for federal income tax purposes pursuant to the appropriate provisions of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations in effect with respect thereto (all of the foregoing herein referred to as the "Internal Revenue Code"). In furtherance thereof, the County covenants to comply with the provisions of the Internal Revenue Code as they may from time to time be in effect or amended and further covenants to comply with the applicable future laws, regulations, published rulings and court decisions as may be necessary to insure that the interest on the Note will remain excluded from gross income for federal income tax purposes. Any and all of the officers of the County are hereby authorized and directed to take any and all actions as may be necessary to comply with the covenants herein contained.

The County hereby designates the Note as a "Qualified Tax Exempt Obligation" as that term is used in Section 265(b)(3)(B) of the Internal Revenue Code.

Section 9. All resolutions or parts thereof in conflict herewith be and the same are hereby repealed to the extent of such conflict.

Motion by Lehman, second by Harney, to approve Resolution 03-25-04-01.

Motion by Stutsman, second by Lehman, to appoint Alan Reinier as Reserve Deputy Sheriff as recommended by Sheriff Carpenter.

Adjourned to informal meeting at 9:32 a.m.

Terrence Neuzil, Chair, Board of Supervisors

Attest: Tom Slockett, Auditor

By Casie Kadlec, Recording Secretary

These minutes were sent for publication and formal approval on April 1, 2004.