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HomeMy WebLinkAboutA009 - Official Statement - New Issue - dated January 1, 1994In the opinion q1"Bond Counsel, undep- existing lair,, interest to be paid to the holders of the General Obligation Corpof-atepurpose Bonds, Senes 1994 is excludedfi-oin gross incoirieforlederal income taxpurposes. Ratings OFFICIAL STATEM ENT (NEW ISSUE) Moody's* (Applied For) Standard & Poor's* (Applied For) $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 CITY OF AMES, STORY COUNTY, IOWA Dated: January 1, 1994 Minimum Bid: $3,794,400 Due: June 1, 1994/2004 Good Faith Deposit: $38,250 The Bonds are issued pursuant to Division III of Chapter 394 of the Code of Iowa for the purpose of providing funds for Various improvements in the City. The Bonds will be general. obligations of` the City for which its full faith and credit and unhinited taxing powers are pledged. The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede & Co., as nominee of "'The Depository Trust Company ("DTC"). F)TC will act as securities depository of the Bonds. 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 Bonds purchased. Principal of the Bonds, payable annually on each June 1, beginning June 1, 1994, arid interest on the Bonds, payable initially on June 1, 1994, aud thereafter on each December I and Arric 1, will be paid to DTC, Which Will in turn rernit such principal and interestt, to its participants for subseclucrit disbursement to the beneficial owners of the Bonds as described herein. he Bonds maturing on June 1, 2003 and thereafter are SLlbjCct to redemption prior to maturity on June 1, 2002 and on any date thereafter at a price of par plus accrued interest. The Bonds will mature June I in the years and amounts as follows: Interest Interest Year Amount Rate* Yield* Year Amount Rare* Yield* .............. . .............. 1994 $300,000 NO 2000 $290,000 ri, yo 1995 420,000 % (Vo 2001 290,000 % % 1996 420,000 % 2002 290,000 % "No 1997 415,000 % No 2003 290,000 % % 1998 410,000 %i, (V, 2004 290,000 % % 1999 410,000 % % NOT BANK QUALIFIED: The Bonds will not be designated qualified tax exempt obligations pursuant to Section 265(b)(3) of the Internal Revenue Code of'1996, REGISTRAR: The City of Ames, Iowa LEGAL OPINION: Dorsey & Whitney, Des Moines, Iowa. BIDS RECEIVED UNTIL Tuesday, December 14, 1993; 2:00 P.M., C.T. Council Chambers, Adrninistrative Building Aines, Iowa BIDS CONSIDERED: Tuesday, December 14, 1993, TOO P.M. The date of this Official Statement is December 3, 1993. Interest. rates, ILreofferi Ids or prices and jjLjnoti Lt �n Li� Final Official Statement described herein. L -. --- _�,will be f _ _ - (DUS CO FER PA Gh COMIAINS CER TAIN IXTZ-)RMA 770N FOR Q UICK RhTFIUL, NCE 0AIIA'. I TIS NO T A S UMMAR r 01, THIS M UF . INPTM'ORS Mt R5T READ 7 7 11" ENTIRk' 01TYCIA1, 87A 7h'A1TNTT0 0137AIN INTOJUM 77ON ES&W77,11, TO 771EMAKIM.,' OFAN INFORMI-,'D lArt'h'SYMEAT DE( '1810N.) EVENSEN DODGE IINIC I I N A !, ( I A I ( () N S H I I A N f S TABLE OF ("ONTEN'rs IDTlD,'Qy}&CVO.8TATEM2N'[—............. DESCRIPTION OPIHEBO0DS—............... —........ —..... ..... Authorization. ---............ ......... —........ .......... —� Purpose—............ ..................... --.......... --... ...... Security............. —............ ---------...... --� Redemption Provisions -------........... ............ ... htureot. Cnnpntabou—------------ ---__ Book -Entry Only System .......... -----........... --- I]UECITY OF&&0�S--------------________ Description— ............ —...... ------ ...... ... .... ...... OrAadzudvn--.... ...... ........... ..... ...... ..... --- ......... {,ityServices .... ...... ..... ... --- ..... ..................... .... _ Employee Relations ................. .... —...... --- ..... —...... 1,�'Cu0uMIC&NQ DEMOGRAPI 11C, INFORMATION ... —........ Population--.... ... ...... ....... ---- ... ......... ... —... — Industry............ ...................... ... .... .......... .............. Labor Force Statistics ... ...... ...... ---............... ...... Retail Sales and Bu?big Income ---.... ...... ... ... --, YinmoialServices, ...... ... ....................... ----........ Construction ...... —............ ....................... —........ — ����������������...... ... - ..... --- .................� MedivaFucUitiu—---------------- --� LEJl1S]Rl�TlIRI .-----------------' DebtLimit ... ...... —...... —....... ........ ............. ---- Fuwz ymuo;bg........... —..... ...... ... ...... .... —....... _ Debt?rcuds--............... --........ .... —..... ....... ........ Ioog-]ermDub—...................... ........... —... ...... .... Overlapping [eb----.......................... ... -----� General Vbligud^oDebt ...... --..... —....... ........... — Revenue Debt .... ------............................. ......... Capital Leases .... ............... ---........... ------- FINANCIAL LMyUkMATD)N—....... —... .......... ...... � Ccddficu�enf&ddcvcmen—.... -----... ............. Financial Administration --...... --...................... — Financial Statement .......... ... —.... ......... .......... ....... Results u[Operations. ..... —...... ....................... —....... Uudgutary Process .............. ........ ---.......... —.......... PROPERTY VALUATIONS AND]7\XlS.... ...... —...... Property Vuhub000nodlax C.ollecdnoYm"cdures........ YmpnrtyTaxIevieouudCollectionm---------- � Taxes Per $l,0O0v[Tuxable Vukue—-- -------' Levy Limits ........................... —......................... —___ Principal Taxpger ................ ....... ............. ---....... Local Option Sales 'Fax ...... —.............. ...... —...... ...... Rating--... —... ... ....... ... ..... ............ ..... .... —... Federal Tax Couordcmbmm......... --...... --........ ........ Not QoubUedTax.3scmI Obligations- ... ....... —....... (%ouingDocuments ....................... ........ .... ... ......... — Certification ... ....... —............................. ---.... -- Lego Matters —....... —......... ... ... ............. ....... --' 0nLitigation ..... .................. —....... --........ ____ MISC. BlJ^1N17OVS—......... ---............. —.......... —...... --' AppeodixA-Gumub Statements Appendix B'Notice of8alcmulernnx[Offering Appendix C l'orm ofLegal Opinion VYorkobcut Bid Forms MM —2 —2 —Z —2 —2 —3 —3 �5 —5 —5 —0 —7 —8 —Q —9 --------l2 ---... —... —l2 ---........ --B --------l3 --------8 --------�4 --------l5 .. .... —1111/6 --------l7 --------l9 --------20 --------20 --------20 --------21 --------2! --------2l --------23 --------Z4 ........ ---... —24 --------2� --------26 --------27 --------27 --------27 -----..... ... %7 --------2V --------28 --------28 --------20 --------28 --------29 --------Z9 INTRODUCTIONTO THE OFFICIA1, STATEMENT flu? following irifiw-mation is fiat -niched solely to provide limited introducloty inn6munion regarding the ' 'ity's $3,825,000 (;eneral Ofilig .,ation Corporate Purpose Bonds, Series 1994 (the ")fondv'% and does not purport to be conip rehensive. All such in ' rnialion is qualified in its entirety bv re lo fierence to the more detailed descriptions appearing in this (Yficial .Statement, including the apPendices hereto. Issuer: City of Ames, Iowa. Security: General obligation, unlimited tax levy. Purpose: ']'Ile proceeds of the Bonds will be used for the PUIPOse of financing the, construction wid equipping of works and facilities useful for collection and disposal of solid waste, the construction, ieconstnretion and repair of street improvcnients, and the construction, reconstruction, improvcinent, extension and equipping of the Municipal Waterworks System of the City. Optional Redemption The Bonds maturing oil June 1, 2003 and thcreafler are albicel to reden"IfAron prior to maturity on June 1, 2002, and oil any date thereafter at a price ofpar plus accrued interest j )Cnofflinations: $5,000 or multil)Ies thereof. Fax Status: Geneially cxeinf)t frown federal taxes (set., "Federal Firs Considerations" herein). The Boods will not be designated Qualified Tax-Excillpt Obligations. 11f,ofessional Consul (ants,: PNerisen Dodge, Inc. Minneapolis, MN Bond Counsel: Dorsey & Whitney Des Moines, IA Authority for Issuaricc. I'lle I: ollds are issued pursuant to I)ivision III ot'Chapter 384 ofthe Code of lowa. Book-Fnhy Only: The Bonds will be issued as book entry only securities through 'llie Depository Trust Company, )elivCry: On of about January I t , 1994. The Qfficial Slaternenf. is in a lorm deenied final as qj'ils datefi)r purposes of the .securities and l,"Whange ( -'otnmission Rule 15c2-12(k)(1), but is subject to rninor revision or (onerulinew in accordancewith the Rule. The Final (Y licial Statement will be the: Official .Statement dated Oecember 3, 1993, and the addenilum which includes the niaturity dares and amounts, interest rates . and reqfjering yields or prices, credit ratings, and any other injiMnation required by law. Anysuch addendum shall, on or (ifier the date thereq/,' ire fully iacerr porared m the Final (,�f .ficial Stalement by relirence. Yhe purchaser will be supplied with Final Qf licial Slatenjents in a quantifysujficienl to meet its request. Up to 100 copies cif the Final QfficialSuaenrent will he furnished. The infoyrnatioll set forth herein has been obtained from flic, Clty and other sources, which are believed to be reliable, taut it is not to be coilslrued as a icinesentation by the Financial Advisor or I inderwriters. The inforination and expressions of opinion herein me subject to change without notice, and neither the delivery of this Official Statement or the Final Official StatClacrit nor ally sale nlade tbeyealler shall, under any circumstances, create any implication that then, hm been, no change n' the affbirs Ofthe City or in ally other- information coulained herein, since the date hereof. Questions regarding the Bonds or the Official Statement can be directed to and additional copies of the officral Statement, the Oty's audited financial reports and the ReSOIUh011 may be obtained from F ' venscii Dodge, Inc., 222 South Ninth Street, Suite 3900, Mirinezipolis, Mlnnesota 55402, (612/339-3535), the City's financial advisor. DESCRIPTION OF THE BONDS The Bonds are issued pursuant to Division III of Chapter 384 of the Code of Iowa and a resolution of the City to be adopted onDecerriber 14, 1.993 after receipt of the bids on the General Obligation Corporate Purpose Bonds, Series 1994. The Resolution to be adopted on Dec ernber 14, 1993 is subject to a majority vote of the City Council. Purpose The Bonds are issued for the purpose of financing the construction and equipping of works and facilities useful for collection and disposal of solid waste, the construction, reconstruction and repair of strect improvements; and the const.niction, reconstruction, improvement, extension and equipping of the Municipal Waterworks System of the City. A summary of the estimated Sources and Uses of Funds for the Bonds is presented in'fable I TABLE I Estimated Sources and 11. ses ol'Funds Arnoull-t Estimated Sources offunds .. ... . ...... ---- .... ....... ..... I.... Par Arnomit of Bonds $3,825,000 E,stiniated Uses ofFunds F'rQjcct Costs Solid Waste Improvements 600,000 Street Improveineins 2,115,891 Municipal Waterworks System Iniprovernents 1,050,000 Costs of Issuance 25,000 U ride rwri ter's Discount 30,600 Miscellaneous —3�5'1 9 Total Estimated Uses of Funds 3—15,000 Sc,curity The Bonds will be general obligations of the City for which its full faith, credit arid taxing powers are pledged, without firnitation as to rate or amount It is expected that the portion of the Bonds issued for solid waste improvements ($600,000) and the portion of fire Bonds issued for 11w Municipal Waterworks Systern improvements ($1,050,000) will be paid frorn solid waste and watcr revenues, though thos(-,s revenues are not pledged to the payment of the debt service on the Bonds. Retkinlytion Provisdons The right is reserved by the City to call and redeern all of the said Bonds maturing in the years 2003 and 2004, in whole or from firric to time in part, in one or more units of $5,000, prior to and in any order of niaturity (arid within a maturity by lot), on Juric 1, 2002, or on any date thereallcr, upon terms of'par and accrued interest. Notice of'such redemption as aforesaid identifying the Bond or Bonds (or portion thereof) to be redeemed shall be inailed by certified mail to the registered owners thereof at the addresses shown ou the City's registration books not. less than 30 nor more than 45 days prior to such redemption date. All Bonds for which the City exercises the right of redemption and for which proper notice has been given and adequate funds provided, shall cease to bear interest on the redemption date. Interest Onnputation Interest oil the bonds will be computed oil a 360-day year, 304,,ty, month basis. Book -Entry Only System I. 'The Depository Trust Company ("D"I'C"), New York, NY will act as securities depository for the Bonds (the "Sect i ritics"). The Securities will be issued as frilly -registered securities registered in the narne of` Cede & Co. (1)'I"C's partnership nominee). One fully -registered Security certificate will be issued far each annual maturity of the Securities, each in the aggregate principal amount of such annual maturity, and will be deposited with D"FC, Z. DTC is a limited -purpose trust company organized tinder the New York Banking I...aw, a "banking organization" withiri the rneaning of the New York Banking Law, a member of the Federal Reserve Systern, a clearing corporation" within the meaning of the New York Uniforni Commercial (,,ode, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, DTC holds securities that its participants ("Participants") deposit with DTC, DTC also facilitates the settlement among Participants of. securities transactions, such as transfers arid pledges, in deposited securities through electronic computerized book - entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates, Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock. Exchange, Inc_ the Anicrican Stock Exchange, In(,,, and the National Association of Securities Dealers, Inc. Access to the DTC systern is also available to others such as securities brokers arid dealers, banks, arid trust companies that clear through or maintain a croodial rclationship with a Direct Participant, either directly or indirectly ("Indirect Participants"), The Rules applicable to DTC and its Participants are oil the with the Securities and Exchange Corranission. 3, Purchases of Securities tinder 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 cacti actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Belieficial Owners will not, receive written confirmation from DT(" of their purchase, but Beneficial Owners are expected to receive written cot)FIrniations 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 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 fire Securities is discootimied. 4. 'To facilitate subsequent transfers, all Securities deposited by Participants with DTC are registered in the narne of'D'I'C's partnership nominee, Cede & Co. The deposit of Securities with DT,C, and their registration in the name of Cede t9z Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only identify of the Direct, Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings oil behalf of their customers. S. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to indirect Participants, and by Direct Participants arid Indirect Participants to Beneficial Owners will be governed by arrangements aniong them, subject to any statutory or regulatory requirements as may Ile in ettect fr-on, tirric to time. 6 . Redemption notices shall be sent to Cede & Co. If less than 'III of the Securities within an issue are being redeemed, DI"C"s practice is to determine by lot the aniourit of the interest of each Direct participant in such issue to be redeemed, 7. Neither DTC or Cedc & Co. will consent or vote with respect to Securities. Under its usual procedures DTC mails an Omnibus Proxy to the Issuer 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 the Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Principal and interest payments on the Securities will be made to DTC. DTC's practice is to credit Direct Participant's accounts on the payable date in accordance with their respective holdings shown oil D"J"C's records unless DTC has reason to believe that it will riot receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and cumornary practices, as is tile case with securities held for the accounts of'customers in bearer filra) or registered in "street. narric," and will be the responsibility of such Participant and not of DTC, the Agent, or the Issuer, subject to any, statutory or regulatory requirements as may Ile in effect from time to time. Payment of principal and interest to DTC is the, responsibility of the Issuer or the Agent, disbursements of such payments to Direct Participants shall be the responsibility of DTC, and disbrusenient of' such payments to the Berieficial Owners s'liall be the responsibility of' Direct and Indirect Participants. 9, DTC may discontinue providing its services as Securities depository with respect to file Securities at any time by giving reasonable notice to the Issuer or the Agent, Under such circumstances, in the event that a successor securities depository is riot obtained, Security certificates are required to be printed and delivered, 10, The Issuer may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered. I I The information in this section concerning DTC and D'a"s book -entry system has been obtained from sources that the Issuer believes to be reliable, bill the Issuer takes no responsibility for the accuracy thereof', (The remainder qj'this page has been left blank intenrVonally) ,rHE CITY OF AMES De,veription The City of Arries is located in Story County in central Iowa. It is approximately thirty miles north of Des Moines, the State capital and largest city in Iowa. The City was incorporated in 1869 under the laws of the State of Iowa, later amended in hily, 1975 under the floine Rule City.Act, The City, with a population of'47,199, is known for its excellent quality of life which includes a relatively cringe - flee environment, extensive park system, superior cultural/recreational facilities, and nationally recognized school system. Organization The City is governed under a Council -Manager form of government. The mayor and two council members are elected it large-, the other four counci I inembers represent wards. The chief, administrative officer of the City is the city manager. The City provides many services including public safety, - public works, culture, recreation and community devclopiricrit. The Council and staff have long supported a professional approach to local governincrit i-ri,anageinent and involvement in professional organizations, Many of the City's department heads have gained national arid international reputations in their professional fields. CITY -COUNCIL Em Initial Present Term Term Commenced Expires Larry R. Curtis Mayor 1/1/90 12/31/93 Joyce Hertz Council Member-At-Largc 1/1/90 12/31/93 ;ludic Hoffman Council Member -At -Large 1/1/88 12/31/95 Sharon Wirth Council Member - First Ward I / 1 /90 12/31/93 John Parks Council Member - Second Ward 1/1/80 12/31/95 Ann Campbell Council Member -Third Ward 1/ 1/86 12/31/93 Pat, Brown Council Mernber - Fourth Ward 1/1/84 12/31/95 ADMINISTRATION Steven Schainker City Manager John Klaus City Attorney Alice Carroll Finance Director Sandra Ryan City Clerk Sherry Meier city Treasurer Toni Neumann Director of Water, Water Pollution Control Paul Wregand, P.E. Director of Public Works Merlin flove Director of Electric Dept. C I ity Service�5 'The City operates water, electrical and sewer t.itifities through modern city -owned systems. It also maintains a Municipal Solid Waste Recovery System and operates parking, lot facilities, a transit system, a ncreational ice facility, a municipal golf coilrse and as municipal aiiport which is the brisicst general aviation airport in the State. A brief summary of the enterprises operated by the City is presented below. L�y,g (Lreele Hedical (en.ter I'lic numicipally owned Mary Greeley Medical Center is a 220 bed regional relciral center which Selves tile City of Asses and an eight -county area in north central Iowa. Arriong the services provided are rnedical, stirg,ical, pediatrics, intensive care, niental health, obstetrics, tmrscry, nconatal intensive care, eniergenc.),), hernodialysis, radiology, coronary care, and physical, respiratory, recreational and occupational therapy services. In 1992/93, the Hospital issued approximately $24,000,000 in revenue braids to I'Lind the ,icquisaion, construction and cqnipping of additions to the Medical Center Al ILI 1 11 �i' —IjtI1A Y The Electric Utility generates electricity in a coal-fired power plant that also burns RDF (refuse-dclived filel) as a stipplemcni to coal. RDF is obtained 1hrough the Ames sohd Nvaste recover), system. Oil March 1, 1982, the city completed construction of a combilstion turbine 60-triegawatt stearn unit, It is anticipated thal with this addition, the plant will be able to supply the clectric power needs of the City 'i1v through 99 14. The total cost of the prograrn was approximately $52,000,000, This was financed thioirgir tile issuance of $43,000,000 in revenue bonds and $9,000,000 frorn operating revenues, iL4ater Iltz[ The City's water system is supplied by wells located in the underground aquifer serving Ames. The City's water plant has a ground storage capacity of 6,000,000 gallons per day as compared to average and peak daily use of 6,000,000 gpd and 8,000,000 gpd, respectively. Air additional 1,750,000 of storage capacity if provided by two elevated storage towers. Server Utility The Municipal Sanitary Sewer System of the City of Arnes serves the community by collecting, conveying and delivering wastewater to the City treatment plant, The wastewater is then treated and disposed of within the requirements of federal, state and local regulations. Resouree.RecfjE��r, The City of Ames and surrounding corm-mmities are served by the Arnold 0. Cliantland Resource Recovery Center, which provides cornintinitics with an env ironfrienta I ly safe incans of solid waste disposal. Arnes owns and operates the facility, while thirteen local governmental units, including Ames, share in the cost of its operation. M The City operates a mass transit systern to provide efficient and economical transportation to all nienibers of the community. A fixed routing service is available on a daily basis to most residents and a Dial -A -Ride service is avajlablc for elderly or handicapped residents. Other Muni The Ames Police Department has a staff of 67 of'which 49 are sworn officers. The City's Fire Department operates oul of two stations with a staff of 54, The Arises Parks and Recreation Department maintains the Cit I y's 600 acres of'park property, including the Homewood Goll"Course arid the Corninuinty Center Ice Facility, EmploYee Reltitions The City has 1,755 permanent employees of whom 1,230 work in the City -owned Mary Greeley Medical Center. Oly employees are represented by five bargaining units. The City's agreements with (fie bargaining units are as follows: Association Cont E International Association of Firefighters June 30, 1994 Public, Professional and. Maintenance Employees June 30, 1994 International Brotherhood of Electrical Workers June 30, 1994 International Union of'Operating Engineers (Local 234) June 30, 1994 International Union of Operating Engineers (Local 234D) June 30, 1994 The City has several coinfibutory pension and retirement plans as provided under the Code of the State of Iowa covering firefighters, police officers, utility employees and other City employees, The plans are funded by annual contributions as determined by actuarial valuations in, accordance with the laws of the State of' Iowa and the appropriate ordinances of the City ol"Ames. All fiffl-firric employees must participate in one of the plans. The City �:administers the lAility Retirement Systems. The State adi-ninisters the Iowa Public Employees Retirement Systern and the, Municipal Fire and Police Retirement. System of Iowa-, the City's responsibility is firnitc(I to the payment of contributions for those of its employees who qualify for participation in the System. The total of the City's contributions to all these retirement systems for file year ended June 30, 1993 was $2,646,604. For further information concerning the City's retirement plans, see Note (7) in the Notes to Financial Statements contained as a part of Appendix B to this Official Statement. ECONOMIC' AND DEMO..(3"RAPHIC INFORMATION BE= Demographic statistics compiled by the City of Ames, presented in Table 2, reflect the City's growth, above - average income and education levels and low aneniployment rates, The City cxpciienced a 46 percent growth ill population from 1960 to 1970. In the years 1970 to 1990, the City had a 16 percent growth in iks population. The trends in growth are expected to COntinLIC for the City of Ames. '"Flie citizens of Ames are mostly well-educated, upper class professionals. ,rABLE 2 City of Ames, lowa 13errro),r ics Education Per Level in Years t Jilemployinclit Calendar capida Median of Forni"ll School Rate Year 1) (1 i ) I (1) at hlC(Ime(,) A-990) SchqOing(') Frij )jjmgjt(2) (Perc.qlitag(�)(3) 1983 45,775 15,418 22.5 14.10 4,561 2.8% 1984 45,775 14,085 22,7 15.70 4,505 2 I 'Yo 1985 45,775 14,085 22.7 15,70 4,470 2.9% 1986 45,775 14,085 22.7 15.70 4,355 2. 0'Yo 1987 45,775 14,085 22.7 15.70 4,471 1. 8% 1989 45,775 14,085 217 15.70 4,452 1,7'Yo 1989 45,775 14,085 22.7 15.70 4,573 1 . 8 0/o 1990 47,198 14,085 22.7 15.70 4,706 1.8% 1991 47,198 15,062 217 15.70 4,855 2.3% 1992 47,198 15,062 22.7 15.70 4,855 2.3% (1) United States Census Bureau, (2) Anics Community School District. (3) The City of Ames Coniprelicrisive Annual Financial Statements, Years 1990-1992, 8 'I'lic City ofArnes has a diverse industrial base. Arnong the products manufactured by companies located in Arnes are precision electronic instruments, hydrotransmission equipment, water treatment and analysis equipment, farm i n1plerrients, abra'sives and Teed and grain products. A number of govemniental units and other public institi0ions also contribute sn;nificantly to the Anics economy. I'lic major employers in Arnes are listed in 'Fable 3. Firin/Or Iowa State University Iowa Dept. ol"Franspoltation, City of Ames Ames Community School District Aines Laboratories McFarland Clinic SAIJER--Sundstrand Corporation U.S. Department of Agriculture flack Cheinical Company National Veterinarian Service Lab (Jencral Filter Co. National Farmers Organization ACT Mechanical Corporation Principal Financial I Source: Armes Chainber ofC.orninerce. I'ABLE 3 N4, 1L q Em )1232ers L _. 1992 Business/Service Employ _ _ ier 5 University 6,000 1 leadquarters 1,219 All functions (including Medical Center) 1,755 Education 650 Environmental 'Fechnology 650 Medical Clinic 550 I lydro-.1'ransinission Research and Assembly 445 Abrasives Manufacturing and General Distribution 360 National Animal Disease Center and Other Facilities 360 Water Analysis Equipment 275 Veterinarian Association 270 Water 1'reatment Equipment 120 Farmers Association 115 General Contractors 95 Financial Services 90 Labor Force Stathfiew The State of Iowa Job Service Off -ice Reports annual unemployment rates and labor force figuies for Ames as shown in Table 4. MW 1983 1984 1985 1986 1987 1989 1989 1990 1991 1992 1993(l) (1) For October, 1993 only. Source: State oC Iowa Job Service, TABLE 4 t1m lILoyniqnj Statistics _ __ Ames Labor, Force 24,840 24,370 24,650 25,070 25,390 26,640 26,940 26,700 26,940 27,230 29,570 U n, 19 --l-1-1. --R -.2. -yr,Dqilt-Rates - - - ------ - Ames State 01, lowa 4,2% 8. 1 IN) 3. 1% TO'Yo 3 3'Yo K011% 3. 1% 7. WX4 23% 5.5%) 1. 7'No 4.5%o 1.6% 4.3 ')/o 1.9% 4.2% 23% 4 . 6 (Yo 2.2% 4.3 (Yo 1.7% 3.3% Retail Salev and Buying Income Table 5 lists median household Effective Buying Income and per capita retail sales for Story County and the State of Iowa and for the City of Ames for the years 1988 through 1992, as reported by Sales and Marketing Managenterit's "Survey of Buying Power." Median Household Effective Buying Income Story County State of Iowa City of Ames L)qL.Qpitq Retail Sales Story County State of Iowa City of'Ames TABLE 5 Retail Sales/Buvini! Income 1992 1991 1990 $32,395 $30,692 $26,839 31,132 29,690 24,699 29,978 28,419 25,099 7,787 7,087 7,833 7,023 9,765 8,961 6,864 6,793 8,699 1999 1988 $23,83.1 $22,712 21,823 20,618 22,285 21,239 6,591 6,230 6,229 5,973 8,746 7,847 10 JqnancialServices Thrce full -service. banks serve Arnes, The cornbined deposits if] those banks for ffic vears 1983 throtigh 1992 is shown in'T'able 6. TABLE 6 Aant, _RgRL)s s 1�j jL_�_ Ycai Ended December 31 T ot De aM - -po-'s I ts. 1983 $216,309,708 1984 228,718,000 1985 243,473,000 1986 280,3 17,000 1997 291,761,000 1988 287,852,000 1989 323,357,000 1990 350,746,000 1991 377,366,355 1992 366,595,000 (""ollibined deposits in FiTSlal/Arnes, First National Bank. and American State Smlice: Iowa Bank DiTCUory. Conmrtiction activity within the City as shown by its bLlflding permit records if presented in Table 7, TABLE 7 Ame,s Buildi g (Lill _!)ern#ts ("'Oulinercial Residential Construction .. ... ...... . ......... ........ .. ... .Construction '.alendar Number Number Year of Units Value of'Units e Valu ----------- - — 1983 54 $2,301,800 222 $ 8,200,869 1984 39 4,637,293 380 7,429,400 1985 104 3,238,372 383 11,545,825 1986 100 4,331,429 223 7,501,215 1987 104 6,698,838 375 7,464,165 1988 111 7,194,143 256 7,666,358 1989 86 8,980,671 104 7,033,323 1990 101 9,878,576 301 14,351,377 1991 92 4,935,164 293 9,591,033 1992 96 3,845,383 406 23,450,839 1993 90 6,153,487 300 15,773,367 (1) Includes new construction and remodeling. (2) As of'November 1, 1993. 11. FERN M, L71eMotar and Ve�--_oqdqfy y Most of the City is a part of the Atnes Community School District The District operates eight elementary schools, one middle school and one senior high school. The school district employs 650 people, of whorn 350 are certified. It also operates a special education building which serves the needs of 14 local districts in Boone and Story Counties. Two other school districts, the Gilbert C'oninrunity School District and the Nevada C 'onimunity School District also overlap into the City of Anics. However, these districts, in total, represent less than I% of 11W City's property valuation. Vocational Ames is also a part of the Des Moines Area Community College District (DMAC(",',). The DMACC has campuses in Ankeny (20 miles from Ames) and Boone (13 miles from Ames) and offers trade, technical and college preparatory programs. Iowa Rate Universit I Armes is the home of Iowa State University (ISU), ISU was established in 1859 and is an integral part of the community. The fall, 1993 enrollment was approximately 25,250, and the University is the City's major employer with faculty and staff totaling approximately 12,000, including reaching assistants and hourly part-time ernployees, The LJniversity, in addition to its educational function, is as leading agricultural research and experimental institution. The Iowa State Center, which is the cultural and athletic center of the University and City, is a complex of five structures, all completed since 1969. It consists of two theaters, a football stadium, a Coliseum and a continuing education building which attract rmtjor athletic, dramatic and musical events, as well as seminars and conferences, to Ames, Medical Facilities The municipally owned Mary Greeley Medical Center is as 220-bed regional referral center which serves the City of Ames and an 8-county area in north central Iowa. Among the services provided are medical, surgical, pediatrics, intensive car, mental health, obstetrics, nursery, neonatal intensive care, emergency, liernodralysis, radiology, coronary care and physical, respiratory, recreational and occupational therapy services. Adjacent to the Medical Center is the McFarland Clinic offering complete medical service, The Clinic has 1,135 employees and is serviced by air additional 90 physicians. Also located in the immediate area is the Family Practice Medical Clinic and several smaller medical offices. The Iowa State University Student Health Center provides medical care for ISU students and staff. There are also two nursing homes in the community. ON DEBT STRUCTURE The Consfitutiou of the State of Iowa, Article X1, Section 3, provides as follows: "Indebtedness of political or municipal corporations. No county, or other political or municipal corporation shall be allowed to beconw indebted in any inanner, or for airy purpose, to an amount, in the aggregsatc, exceeding, five per centurn on the valuc oflaxable property within such county or corporation to be ascertained by tire last state and county tax lists, previous to the incurring of such indebtedness," Revenue arid Special Assessment Bonds are not subject to the City's debt lhrnt. The City's debt Innit, based oil 1992 property valuations is shown in Table 8. TABLE 8 Debt Limit Computation jLL)(Ln the jlsyanqLoLthe Bond(1) Legal Debt Limit of 5(1/o of 100% of Actual Value (fiscal year 1993/94)(2) $54,381,551 Gciu.,ral Obligation Bonds Outstauding as ofJanuary 1, 1994) -2151(-)(OP Table 9presents debt rutimsupon the issuance o{UoBonds, �ABL,E 9 Debt Ratio, IJI) I is, -9LL-21!AnCC of tile Bonds % of' %o[ Per Actual Taxable A-p-roul.it Value Value Direct Debt Levy Supported Portion (1) $22.860,000 $404 2 1196 255'No Overlapping Debt _2.14,117-(� 0,2-01Yo ��� To1a|w ----- $53l -- 2]y& -- 2�OY4 == (|) 0ocs not include $650/000 General Obligation Sewer Bonds daled.lamiaryl'\989SUPPOTIC(I by SCWer revenues. Table l0summarizes debt outstanding asupercent of assessed value and debt per capita for the last tell years. TAB3JE8O Ratio of Net General Bonded Debt as a Percent of Assessed Value and Net Bonded Debt_EKL Capita Ratioamw Net General Giross Le", Debt General Bonded Levy Assessed General mvo«:v Net General Bonded Debt to Debt Yea r �ee��u l�b� I��b����(q �u�� ����[�� �a�����b� c�l�jju 1903'84 45.775 $60|.l37^701 $14,230,000 $205.307 $14.024.633 0233tn l 30638 1984-05 45.775 634.998.534 13.205.000 225.011 12.979.989 02O4/nl 28356 1985-06(l) 45'775 666.578.535 13.280,000 345.491 12.934.509 0194tn l 28257 1986-87(1) 45.775 719.767.337 12.730.000 372.976 12.357,124 0172to1 20995 1987-08(l) 45,775 737.543.912 19,265,000 258,545 18,006.455 0244tn l 39337 1980-89(l) 45.775 788^452.871 16,435,000 602.494 15,832,506 0281 to 34508 1989'90(l) 45.775 797,035.129 14,778,000 386.984 14.393.010 .0180to1 31421 1990-91(l) 47.199 816'788,773 13.200.800 216.559 12.983.441 �0159tn l 27I08 1991-92(l) 47.198 849.303.580 17,440/000 181�441 17,250'559 .0203m i 365.66 1992-93(l) 47,198 897,551,220 19,845,000 458/42 19.386,958 .0216m l 410.76 (l) The Special Asscssments}und was eliminated in|996-87in accoi chince wi&Govci mneiiia! Accounting Standards Board StatCITICut No. 6, and its activities are now accounted I'm in the Uub/ &cmicu and Capital ynojects Funds. It was not practical wrestate years prior ml985-86 (2) Does not. include general obligation debt Supported bysewer zmunoo. 8nmcu: United States Census Bureau and Story Couoty Office ofAuditor, FE Long-Term.Debt TABLE 11 Long -Term Debt Ljuq�LM, I� L9� and its of �ssmt e of j�e 11(a�Ls (Including this Issue) AmOU11t Date of, Fin"fl OrigintHy Outstanding Issue Intel est Rates Due I )ate Issacd 6/30/93 . ........... . - .. ............. General obfigation bonds:(J) Sanftaiv Disposal 03/75 4.00'/o-6 50(� Cm'poratc TImpose, I 0/7) 5.85%'r-T0O6Xo Corporate Pimpose 11/95 5 30'Yo-K00% Omponne Purpose 05/97 5.00%-6,25'y, Centi al City I lall 06/99 6. 12 5% - 7. 5 V/4 01 /9Q 6, 30"%-7,15% Bonds 05/91 5,OM'o-0,00"/o Colporat(.'hirpose 06/92 5A0t,'44-5.90%4 (2efilliding Bonds 02/93 4,70'Yip-5. I O'Vo C,oiporate Purl osc 0 1 A)d ihisa Nsne 1 otal general obligaoori bonds Revenue honds:(2) kfedjcal Center: 1992 10/92 3,25%-6,00(Yo 1993 02/93 5,70%-5,75(Xr Tot,al Medical Center revenne bonds Flectriu Reftinding Bonds 04/91 5. 7 5 '/o - 6. [ 0 0/4 ReFunding Bonds 04/93 4.70%-5.50% Total electric revenue bollds Sewer Revenue Bonds: Sewer -1997 05/87 4.25`34r-6.50% Sewer No. 2 - 1987 12/87 5,50%-7.40% "Total sewer revenue bonds Total revenue bonds Total all bonds (1) Secured by the City's full faith, credit and unlimited taxing power. (2) Secured only by revenues - no general obligation backing, 00/94 $530000 $ 300,000 06/99 4,405,000 1,900,000 l2/93 1.,300,000 llojmo 12/02 770,000 061A 6,950,000 325,000 00/90 39001000 650,000 06/98 2,3 @ 0,000 1 ,970,000 06/04 0,010,000 ("() I ojmo 06/09 9,215,000 g,()80,()()() __--0- $ -- 1 9,M 5,044 Outstanding; Pro Forma 1/l/94 300,000 000)00 325,000 650,000 1 ,970.,000 6,010,000 8,0800)() $21.5 1 (),(L(LO 08/03 21,000,000 21,000,000 19,895,000 09/22 24,000,000 ___24-0QQ,QQQ 11-2 4.1'0'()O.((f I. 45,(.)01-QQ10 5�4.-'IIK 1900, 06/99 10,395,000 1 O,045,000 8,155,000 01/08 20,745,000 .2.1(11,74 5,00Q. -.19Af 0.0.Q Q- S 30,790,000 $27,635,000 12/02 4,230,000 3,225,000 2,975,000 12/01 2.375,000 -1.-8250AQ0 ---1,.70L(UMQ 5050,010-01 $A.,625,0100. 80.940,000 s-76.'.195.Ooo ()(),695.jym $9 ✓05 )00 W OverlappingAebt There are four taxing jurisdictions which overlap the City and which have general obligation debt outstanding. Table 12 sets forth the general obligation debt for those jurisdictions as of December 3 1, 1992. Jurisdiction TABLE 12 General % of Debt Portion Obligation Allocable Allocable Debt to the City to the City .-Y Antes Community Schools -()- (1) 96.80% $ -0- Gilbert Community Schools 3,130,000 14.10% 440,017 Nevada Community Schools 4,375,000 0300/o 12,513 Des Moines Area Community College 31,074,000 5.671Yo -11201,64-6 Total Overlapping Debt 1$ 12JA176 (1) Arnes Community Schools has no general obligation long-term debt outstanding. However, itlass $5,000,000 outstanding in Anticipatory Warrants. Source: Individual governmental units and the Story County Auditor's office. (The remainder of this page has been left blank inten lion ally.) 16 General Obligation Debt The f6l1ming table presents manual principal and interest payments for the city,s jolig-term general obligation debl. Though all debt presented in Tables l3 and 14 is secured by the full faith, credit and unlimited taxing lace eis oftlw City of Ames, some of this debt has been and is expected to be paid from sources other than the tax levv. Table 14 prescills as summary of general obligation debt services allocated J)y, the revenue sourccs that are expected to be used for debt paynients. TABLE 13 Gwrieral Obligation Long -Term Debt Schedule of Annual Maturities January 1, 1994 qjLcluo j�_tlLe.pondsj Total OuWandin Debt -9 This Issue -------- --- Principal Year PrincipL] Interest Princ . al Irne st(l) & Interest 1994 $ 1,680,000 $ 524,089 $ 300,000 63,883 $ 2,567,972 I 995 951,485 420,000 145,070 3,316,555 1996 2,090,000 950,152 420,000 131,210 3,491,362 1997 1,98(),()()() 732,017 415,000 116,090 3,243,107 1999 1,98(),()()() 626,480 410,000 100,320 3,116,800 1999 1,590,000 520,455 410,000 83,920 2,604,375 2000 1,405,000 449,305 290,000 66,700 2,211,005 2001 1,415,000 376,543 290,000 53,940 2,135,483 2002 1,430,000 302,585 290,000 40,890 2,063,475 2003 1,440,000 226,528 290,000 27,550 1,984,079 2004 1,405,000 150,465 290,000 13,920 1,859,385 2005 390,000 74,590 -- -- 454,590 2006 370,000 55,590 425,590 2007 3651000 36,720 401,720 2009 355000 1 �,105 ... . .. ....... .. 373 jt�)5, jl�,685,000 $ 895,109 5 $3 9 5,000�3 9134349 $'-q 24f3 602 (1) Interest cornputed at an estimated rate (4'4.501M) m TABLE 14 General Obligation Long -Term Debt �± B S )urQfL ce Pa meqts(l) 3Lj _ _ (January 1, 1994) Total Fiscal Principal Sewer Year & Interest Revenue Liust, ilding 'This Issue 1994 2,567,972 419,588 $ 1,784,501 363,883 1995 3,316,555 431,687 2,3 19,798 565,070 1996 3,491,362 416,950 2,523,202 551,210 1997 3,243,107 427,100 2,284,917 531,090 1998 3,116,800 435,475 2,171 ,005 510,320 1999 2,604,375 417,050 1,693,405 493,920 2000 2,211,005 423,350 1,430,955 356,700 2001 2,135,483 427,650 1,363,893 343,940 2002 2,063,475 429,900 1,302,685 330,890 2003 1,984,078 430,225 1,236,303 3 17,550 2004 1,859,385 429,600 1,126,865 303,920 2005 454,590 -- 454,590 -- 2006 425,590 425,590 2007 401,720 401,720 2008 '373 105 $4A87575 $.20�892,534 8. s 4 93 ... 6 ...... .... ... . . ...... .. (1) Includes this issue. (]he remainder of this page has been left blank intentionally.) 18 Revenue Debt The following table presents annual principal and interest payments for City debt which is secured solely by certain revenue sources, TABLE 15 Schedule of Principal and Interest Requirements for Outstandin Various Revenue Bonds (January 1, 1994) Total Fiscal Electric Mary Greeley Sewer Revernic Year R;c yc n e(l) Med C egtq(2) ,(3) Debt 1994 $ 1,250,939 152,388 1,403,327 1995 4,448,4 13 3,633,057 692,862 8,774,332 1996 4,420,582 3,626,635 693,0 19 9,740,230 1997 4,288,759 3,623,287 660.' 975 8,578,9201 1999 4, l 4 8,14 5 31623,890 688,475 8,460,500 1999 1,993,505 31023,385 682,006 6,299,896 2000 1 ,985, l 85 3,616,035 697,425 6,298,645 2001 1,989,465 3,616,488 708,839 6,314,791 2002 1,994,960 3,133,825 692,337 5,821,122 2003 1,990,660 3,124,195 699,063 5,912,919 2004 1,992,410 3,129,795 5,122,205 2005 1,998,870 3,119,207 5,108,077 2006 1,989,89() 3,122,020 5,111,910 2007 1,994,790 3,119,208 5,103,998 2008 1,983,400 2,559,201 4,542,601 2009 -- 2,557,837 2,557,837 2010 2,557,351 2,557,351 2011 2,555,268 2,555,268 2012 2,551,737 2,5 5 1,7 37 2013 2,549,075 2,549,075 2014 2,546,625 2,546,625 2015 2,544,091 2,544,081 2016 2,54 1,506 2,541,506 2 0 17 2,538,6) 13 2,539,613 2018 2,539,969 2,539,969 2019 2,535,288 2,535,298 2020 2,529,425 2,529,425 2021 2,526,950 2,526,950 2022 2,522,431 2,522,43 t 2023 2,520,438 2 0,438 $37,199,03.3 $8 6 JO 7 7 5 1 $6,372,289 $ 12 9 9,(b7-2 0) Fledric revenue hond covclagc has averagcd I () I frotn 99 3 to 1 Q92, (2) 1 1osj)bUal levenue bond cxwerage has averaged 4.72 lioni 1993 to 1992, (3) Sewel revenue bonds wel-C filysi issued dwing the year ended JUIle 30 1997; since that lane the debt service cOvcrdPe thas avcraued 3.40. 10 (.'apital Leaseq The Ciy has entered into lease agreements for the purchase of equipment. Annual lease payments are presented it) Table 16. TABLE 16 Equipment Lease Payments Annual Maturit Zeheedale (,June 30, 1993) Equipfrient S 172, 108 Less dccurnulated depreciation 9.7111 92,397 Contracts payable - year ending June 30: 1994 3 3, 7 57 1995 15�9J 3 Total inininiurn lease payments $ 49,670 Less amount representing interest at rates ranging frorn 4% to 1126% Present value of net minimum lease payments 47,653 Lcss current portion 3 2,075 Long-term contracts payable $_15,578 FINANCIAL INFORMATION Cc,i"tificatc, qfAchievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achicvernent for Excellence in Financial Reporting to the City of Ames, Iowa for its comprehensive annual financial report for the fiscal year ended June 30, 1992, !it order to be awarded a Certificate ol'Achievement for Excellence in Financial Reporting, a governmental unit must publish <rn easily readable ,And efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principals and applicable legal requirements. Attics is one of four municipalities in the State that have received the Award for Outstanding Budget presentation awarded by the GFOA for the budget years 1986/87 through 1993/94, 20 Financhil Ad 4nistratirr Major flinancial management decisions arcs made based on recornincridat ions froul the Finance Director and City Managc,r, sucli as adoption of' the Annual Operating Budget, thc Capital finprovernent Program, and other Financial matters as they rnay occur, The Finance Departnwnt is ruq)onsible Ibr preparation of the anriwil financial report, all City accoufflinj,4 Functions annual operating budget, centralized purchasing, data Processing, lrcasury and debt management and customer services for 15,000 utility cusloincrs. ruc City Nas a policy of encouraging the citizens of Barnes. Citizen satisfaction surveys are conducted and information fur -niched to ('orincil for Ilse if) establishing policies and gUidChTICS, Financial,.Vlattwientv The Cjt.v's flnan6al statements are audited annuaHy be an independent ceitifled public accountant, The City anaintains its accounkng recoils for gencral governmental operations on a modified accrual basis. Accounting ie,cwds for Oic Enterprise and Intcrival Service Funds arc, maintained on the, accrual basis, Copies of' the Cities audited financial reports [or the Fiscal years ended June 30, 1996 through June 30, 1992, are available frorn the City upon request, Excerpts ol'the City's audited financial report for the year crided June 30, 1992 is included as Appendix 13 to this Official Statement. Wsults qf'Operafioiis Slatenients of revenues and expenditures of the operating funds and electric funds of the City have been compiled from the City's Financial reports. They h,,,we been organized in such a manner as to facilitate year to year cornparisons. Table 17 presents a staternent, of revenues and expenditures of the City's General Fund for the fiscal years 1989 through 1993. MR TABLE 17 Statement of Revenues, Expenditures & Cliange in Fund Balance General Fund(l) (Years kjLd�Ld junt.j(� 191�)3f , 1992 ..... . . --- 990 1989 RINFMA�S Taxes i 6,427,530 5,737J63 5,212,050 5J02,039 6 5,279,128 Ljo.niscs & llernuts 469,098 449,272 385,133 34 1,399 347,002 ID WrgMffn Mental RCVeDUC 792,898 922,613 847,213 851,796 460,600 Charges fbr Services 2,020,406 1,913„507 1,816,f127 1,543,922 1,400,702. lines and Forfeits 80,054 104,515 109,506 122,957 110,535 Use of, Monies & Property 249,131 383,200 512,943 692,907 726,668 Other Revenues 15 bLT5, 9,O� �'7 .... .. .... 75 39�959 54 M2 Total Revenues $ 0 05 J92 3 8 1916,k4:7 _jL091_978 9 398,697 I Z, X P I ", N D f I' I I 10 S Community 111-WcCtion 5,547,215 5,184,061 $ 4,896,925 i 4,744,972 4,308,12 1 1 luinan Development 3,406,365 3,283,9 12 3,115,716 2fi49,027 2,607, 1 13 I lorne and Corranunity Firvironinerit 1,322,671 1,300,761 1,313,209 1,213,554 I,125,224 Policy and Administration 1,934,689 1,854,012 1,703,069 1,971 ,864 1 „747,285 Debt Service 3- -9 30 ---------- -- - ......... . ........... . -, -- (3) 11 92K (3) ..... . . .. Total Fxpenditures 12 $ H-6 �2 -04 9 ..... $., ......1 . 1200 --74-0 5-N0A7.,..-213 17 -9-7 .7,743 Revenues Over (Under) I sxpendiftlrCS $gjsy 48) $2L)ILM (2 2 �84 -1�9) - _0 $'LL, i-3 -19.) -04 849 6) Other financing sources (uses): Operating transfers in 2,823,282 2,678,760 2,452,538 2,493,399 2,369,223 Operating transfers out (641 =221) Total other financing sources (uses) 2,045 059 1. 9 1 1,867 29 2 1-9-63-276 f','xccss revenues and other sources over (under) expenditures and other uses 23,606 (164,179) (4) (171,509) (4) 93,460 574,930 Fund Balance Beginning of year _11().64 -4 - --J-045,2.75 Fund Balance End of Year 1,68 0 2 $ 5 .. . ........ . -2D 2- 9_4j,f LLK2.2��5 ... . ... .... ...... . ..... $ 2 1.9 1 4 4-0 -122 .,205 (1) The general fund is the general operating fund oftlie City. It is used to account for all financial resources except those required legally or by sound financial inanagcinent to be accounted for in another fund, (2) Preliminary, unaudited figures. (3) This is interest paid to Mary Greeley Medical Center For use of monetary funds in a checking account. It does not represent interest paid on outstanding debt, (4) In previous years the City accumulated a surplus of funds. In 1991 and 1992, the City spent a portion of' these reserves, Source: City of'Aines Cornprehensive Annual Financial Reports, w Budgettity Pma ess The production of the, City's annual budget is supervised by the 6q, �,31rcjget ()fficcr. The individual city departments each submita Proposed budget. The budgets are reviewed by the City's Budgei Analysis Team and returned to the individual departmews In candy February, the reviewed budgcts are compiled into dw Manger's Recommended Budges and submiacd 10 111C City Council f6i review, I'lle (IjIv Coirjs,Jl approves the proposed budget in March. TaWe 18 summari)cs the Clil.y's 199 1/92, 1992/93, and 1993/94 geticral fiind budgets TABLE 18 General Fund Bu 1991/92 9119-2/9-31 19.9-3/9-4 REVFNUES: Property Tax 4 4,920,487 5,729,106 $ 6,(i51,993 Other Taxes 42167 40,956 3 1), S 8', Non -Tax Revenues —A,() 10,M3 1-7 8 5-J-S-11- 1A9 8 Total Revenue's $ 9,573,517 $ 0,554,443 $10,924,370 Transfers 3,156,753 3,' 35J45 3 577,045 Total Revenues and Transfcrs $1 ,9,270 $ -)'�Nq"588 14 021 .5 0 1 22 EXPENDITURES Administration $ 1,351,291 $ 1,445,480 $ 1,512,454 Community Protection 5,628,169 6,063.432 6,396,095 Utilities and Physical Environment 141,714 374,536 370,304 Transportation 922,378 972,238 1,004,461 Community l"nrichment 3,150,569 .31307,243 3,427,648 Special Reserves and Tmsts 131,401 115,575 162,937 Purchasing Services _Zj)..97 3.81,A7 4Q,472 Total Expenditures $11,557,619 $12,3 16,991 $12,914,371 Transfers ----j 1,57.9.1 MA 1 fr3 Total Expendflures and 'Transfers $13 9 51 584 1- $1-402M04 Excess (Deficit) of Revenues and Transfers Over (Under) Expenditures and'Fransfers (406,642) (61,996) (188,983) Beginning Balance 56o(j, I.-Ij Ending Balance j_1_315�805 $ 115 L)4 t7 L 1,34 a PROPER'ry VALUATIONS ANIIJUM�L-,S PropcWy Valuations and Tax Collection Procedurev All property subject to taxation is valued in cornphance with Stale law, every two years subject to an equalization action of the State Department of Revenue, In Story County there are two public agencies responsible for assessments. In the City of Aines, (lie City assessor conducts all assessnients, In the balance of the county, including other municipa I i ties, the County Assessor is responsible for all assessments All property except utility property is assessed at the local level. The State Department of Revenue assesses utility property. The Assessor establishes actual valuation 000%0 as of January I in a calendar year for taxes payable in t.lic succeeding fiscal year, i.e. valuations made in 1.992 are for taxes payable in the fiscal year 1994. The actual value of"property is provided by the assessor to the C ourity Auditor who lben determines the taxable walue. 'The taxable value is computed by adjusting the actual value of' various classes of property by percentages (roll back rates) determined by the State Department of Revenue. The roll back rates are applied to classes of property on a state- wide basis so that the increase in actual valuations of property in the Stale will not exceed 41YO annually. For assessilients inade in 1992, the roll back rate was 72.69/o for residential property. For all other classes of property, the taxable value was equal to I 00'Yo of actual value. Table 19 outlines the assessments of all property in the City of' Ames in the assessment years 1983 through 1992, "1"able 20 lists the classes of` property which comprise the (7ity's 1992 actual value of'real property. TABLE 1,) Assessment of Valuations of Taxal)le Property Fiscal Years 1985 thro Taxable Value Assessment Fiscal Actual Excluding Year Year c I Qozq)(I) Taxable Value(2) Ag_-Lq1l-d(3) 1983 1984/85 814,084,347 636,962,561 634,998,534 1984 1985/86 825,175,703 668,632,292 666,578,535 1995 1986/87 855,73 1,738 877,007,836 719,767,337 1986 1987/88 862,699,487 739,696,552 737,543,9 12 1987 1988/89 902,821,501 790,352,751 788,465,835 1988 1989/90 912,867,119 799,486,329 797,635,129 1989 1990/91 934,625,664 815,156,445 813,283,039 1990 1991/92 977,515,474 848,198,298 846,328,290 1991 1992/93 1,040,000,157 858,214,273 856,706,205 1992 1993/94 1,085,081,215 896,484,364 895,001,418 (1) Before deduction of" military exemptioii, (2) After deduction of military exemption wid rollback adjustments. (3) Agricdttiral land is taxed at a liniiied rate which does not include debt service. Source: Story County Auditor us TABLE 20 Property Values by Category 1992As,,sgssrntnt 1994 Fiscal Year IN001, Equ Actual Value Total incremental Value, Residential $ 677,739,140 62.67% Ag Land 1,434,194 (). 13% Ag Building 50,604 ().Of% Cornmercial 348,3 12,224 32.21% $2,254,153 Industrial 22,671,812 2 . I W/0 1,533 Personal Property Real 21,772,985 2.01% 294,116 Utilities ---- 1_3JO1,256 — -J..-21% Gross Valuation -- ----- - $1,085,081,215 100.34% $2,549,802 Less: Military Exemption 3...5.64_ 17 2 Net Valuation $lQM,5j:LO43 100.00% Sowce: Story Cbunly Audilm Nopert)7 Tax Levies and Collections Taxes are collected in the fiscal year that begins during the calendar year following the assessment Taxes are levied on hily I of each year. Prior to fiscal year 1983, the City collected its own taxes. Beginning in 1983, the County Treasurer collects taxes for all taxing entities in the County, Statutory dates for payment without penalty are September 30th for the first installnient and March 31st for the second installment. The County Treasurer levies to 5'X) penalty on dchnriucrn taxes each June,, In addition, the state has a 1% per rnonth levy; total penalties riot to exceed 481,14). Table 21 outlines tax levies, tax rates and tax colicctions for the City of Attics. TABLE21 Tax Levies and Collections inA� �Gt �)f ArnLs Total Percent Delinquent Collections Total Current 'fax of Levy Tax Total Tax as Percent of Year I I ax Lev Collections Collected Collections Collections CLiu:x—erttt lgry� -- ---------- — ----- 1981-82 4,936,913 4,887,981 99,01 71,,125 4,959,106 100.45 1982-83 5,936,717 5,990,243 99.05 137,526 6,017,769 10137 1983-84 5,898,570 5,766,398 9T93 155,319 5,921,717 100.56 1984-85 6,381,011 6,248,168 9T92 94,457 6,342,625 99.40 1985-96 6,995,538 6,721,657 97.62 99,922 6,821,579 99.07 1986-87 7,322,173 7,191,882 98.22 156,923 7,348,805 100.36 1987-88 6„352,045 6,453,490 101.60 145,660 6,599,150 103,89 1988-89 7,109,787 7,134,979 100.35 120,675 7,255,654 102.05 1989-90 7,153,81 t 7,136,9 14 99.76 97,794 7,234,708 10L13 1990-91 7,132,703 7,108,251 99.66 49,567 7,157,818 10035 1991-92 7,804,418 7,739,101 99.23 110, 101 7,849,202 100,64 1992-93 7,903,595 7,839,227 99,19 98,090 7,937,137 100.42% 1993-94 8,498,862 Ira Process of' Collection----- --------------- ------ ------------------------------------- w Teues Per ,51,000 of Taxabk� Value 'Fable 22 shows the tax rates per $1,000 of taxable value for the City ofArnes ,read all overlappilig poverujuellts ill the fiscal years 1995 throtigh 1994. TABLE 22 Property Tax Rates All Over Governments Last Ten Fiscal Years School County Area Year ...... cj�y District - -------- Consolidated .......... Vocational Total 1984..85 10,0 1123 11,85031 3.58127 43844 25,88125 1985-86 10.29212 1 189550 4.28578 43797 26,91127 1986-87 10.13928 11.88138 4,29594 .44922 26.76482 1987-89 9.58331 11.33809 543430 47634 25,83204 1988-89 9.00877 11,22544 4.47491 47026 25,17938 1989-90 8.96879 12,13898 5.42520 46596 2699892 1990-91 8.75761 12,08846 5.37674 .48386 26.70667 1991-92 9.21143 12.64226 4,79580 47669 27.1261.8 1992-93 9.21143 1182187 (07618 50664 29.21612 1993-94 9.47213 13,18482 6.73178 .48828 29.87701 Source: City of Ames 1992 Comprehensive Annual Financial Report. 1"able 23 presents the City's tax rate by operatirig fund for the fiscal years 1985 lhrorq.,,h 1994, TABLE 23 Tax Rate Comparison By Operating Funds Collective 1985-1994 Collection Debt Year - - . ........ General -- Service 0-th.cr 'Total 1984/85 6,27732 128272 1.45119 10.01123 1985/86 6.27755 2.64266 137191 10.29212 1986/87 6.12500 2,75324 1.26004 10.13828 1987/88 4,81453(1) 145490 1.30929 8,57872 1988/89 4.37640 152853 1.08094 8.98587 1989/90 491807 177298 1.27773 8.96878 1990/91 4.90435 2.85540 0.99786 8.75761 1991/92 5.31895 2.63068 1.26180 9.21143 1992/93 6.15515 2.51889 0.53739 9.21143 1993/94 6.25330 2,68103 0.53780 9A7213 (1) The General Fund Tax Rate was reduced clue to the inception of local option sales tax of I Source: 1993/94 City of'Ames Program Budget. 26 State law finfits the maximum tax rate far the General Fund to $9. 10 per thousand dollars of assessed valuation (1001'Io basis). This limitation does not include debt, service and pension requirements, Principal Taxpayery A list of the ten taxpayers in the City with the higlicst taxable valuations on the 1991 assessment is presented in Table 24 TABLE 24 Principal Taxpayers " IT .3 M LAs oflanyaa!LI IN) of Taxable Taxable a, P, er ation V, aluafion Gemeral Growth Properties $17,111,600 1 9% Sunsirand 13,437,818 1 5'Yo Minnesota Mining and Manufacturing 11,343,137 1. 3%o Grand Center, Ltd. 7,371,393 0. 8%) Individual 6,962,182 0.9% R Friedrich and Sons, 6608,605 0. 7% Westbrook Limited Partnership 6,356,737 0,7% U.S. West 5,998,797 0.6% Moncrison I Limited Partnership 5,812,200 0 . 6% Individual 5,782,489 0.6%, (1) Information fior the 1992 asscssinent year is not yet available. Source: Story County Auditor Local Option Sales Tax Ames citizens approved a one percent local option sales lax att, as special election held November 4, 1986, Which becanic effective on January 1, 1987. The lax generates in revenues approximately $2.4 million annually, 60'Yoof the proceeds are used for property tax relief and 40'Yo for community betterment, Receipts for the year ended June 30, 1992 totaled $2,960,529 and $3,155,162 for the fiscal year ending June 30, 1993. Rating A rating review has been requested from Moody's Investors Service, Inc. and Standard & Poor's Corporation for the Bonds, A rating; is subject to withdrawal at any tirnc; withdrawal of a rating may have an adverse effect of' tile marketability of the Bonds. For an explanation of the significance ofthe rating;, an investor should communicate with the rating agency. The City last issued general obligation bonds on February 15, 1993 T'Iw outstanding general obligation bonds oftlic, City are currently rated "Aa V A by Moody's and "A" by Standard & Poor's. PM Fetkral Tax Considerations The, opinion of'Bond Counsel will state tjjat tinder present laws and ruhngs, inlerest on the fjoilds is excluded from gross income for federal 6tconw tax purposes alld is not an ilent of Mx piclexciWe for Pruposes of [lie lbderal afternative, inimmuni tax imposed on individuals and corporations under lf�re ji,11cinal Revenue Code of f996 (the "Code"), it should be nok,,d, howevcr, that F(,,)r the plirpose ol"Computing the ahellialive nrinjlnwn tax inlp�)sed on corporations (as defined fen federal iflConle tax purposes), such interest is takejj into sccojwj)j in deterntinoq., adJusted current earnfiq,1,s FlW opinions set forth in the preceding seMcnce, are subiccl io the c0jj(jjtj()rl that 111C CitY comply Nvith all of' flic Codc lhat nuist be safisfied subsequent to the issuanre of the Boj�(js in order that inferem 0iercon be, or cowinue to be., excluded froin gross income fi)r fe(jel-al incorne Mx purposes Failure to comply Nvilb ccfla�n of such rC(jLlJl-C1T1Cws fnav caj.ase ffie j11(jilsiolt ()f ijjt�, I It 3 rcq el I c f onds, in gross ktc,oine f6r fiederal inconic tax purposes to be retroactive to the date of issuance cif the Bonds. I In the resolution authoriAng the issuanct, of tile Bonds, the C,ity will covejjajlj to C0njpj,V wifl, all such requirements. There may be: certain other fedenal lax consequences t() tile owncrShip of the Ronds by certain taxpjycj°s, jjj(;jnrjijq,, ,wilhout limitation, corporations subiccl k) the branch prof -its tax, limejj-rcial Institulions, c.ertain insurano-, Companies, certain S Corporations, n6vidual recipients of Sociat Security or Railroad R.clhenent benefits and taxpayers who may be deemed to luive incurrcd (or continued) inde.bledncss to pun-flase or (,,ar tax-exempt , ry tax obligations, Bond Counsel expresses no opinion witil respect to such other feeler at tax consequences to owners of the Bonds. Prospective purchasers ofthe Bonds shoold consult wall their tax advisots as to such matters. Not Qualijied Tax-Evernpt Obligatiom In the opinion of' Bond Counsel, the Bonds are not eligible fbi- designation, and the ('ny will not, designate the Bonds as "Qualified Tax-L,"xenipt Obligations" for purposes of' Section 265 of the Internal Revenue Code of 1986 relating to the ability of certain Financial instfitilions to deduct frorn income for federal incon-w tax ptirposes, eigi-ity Percent of that portion of" such financial institutions' Interest. expense allocable to interest oil the Bonds, C110sing Docunientv Simultaneously with the delivery of and payment for the Bonds by the original purchasers thereof, the (,try will furnish to the original purchasers the custornary closing (10CUments'in form satisfactory to bond comrsel, Certification The City will furnish a staternent to the effect that. this Official Statement, to the best ofits knowledge and belief as of the date of sale and the date of delivery, is true and correct in all material respecls and does not contain ally untrue s(aternerit, of a material fact or omit to state a material fact necessary in order to make the statements made herein, in light of the circumstances under which they were made, not misleading, MIMM= I-egal matters incident to the authorization and issuance of' the Bonds are Subject to the opinion of Dorsey & Whitney, Des Moines, Iowa, Bond Counsel, as to validity and lax exemption. The opinion, which will be substantially in the form set, forth in Appendix C attached hereto, will accompany the Bonds, Bond Counsel has not participated in the preparation of this Official Statement, W No Litigation There is no filigation now pending or, 1c) thc knowledge of City officials, lhrcatcncd which quu;fions the validity of the Bonds or ofmy proccedir)gs of the City takcri Nvith respect to the issunce or sale thereof'. ft is the opiniori of ific City's AtIorne ' y, based upon the past c,,xpericr= of the paYmenedi t of' Lns and judgment 'IMOUDIS, Chant there are presewly no outsurricling claims, fitigatir.minq)ci�ding litigation or confingent liabilities which would exceed 11w funds acctunukued For this purpose arrA funds currently appropriated by the ("it.), Comicil for thesc purposes, and that outsuand4clainis and suits would lim liultcriaHy arfcct the fin"ancial positioll offlic C.ily as cif"t]rc (late ofChi Official Statemew, MISCELIANEOUS Any statements made in fts Official Statement iulvolving 11i'mers of opinion or of estimates, whether or not so expressly stated, arc set faith as such ,md riot gIs represcatations o�' fact, said no represcrWition is made that any of the esfin),ates will be realized, I 'The execution and deliver), of"this Officiaf Statemew. by its City Clerk has been duiv authorized by the City. C'I'TY OF AMES, IOWA Byi /s/ Sandra L. R an City Clerk Eno (This page has been left blank intentionallv.) APPENDI,XA Excerpts from the City's 1992 Financial Statements -0- 1., 4� 1 9 1 14, 6 ?.,, i "I * n �11� 11"- R, Z, a�n 71 p.r r- , Z A 4 x S n �z J1 U. 'o C, 9 E E 6 9, -'s F.z t t; S 1' E Ell Pill? 1 list rr -51 1 1 nil 11 1 1 i 1 I I I i I v i I I W C:e 11 1 1 1 1 inn! "I H I I 11 III i PI H I cv 1 H I I I i I, l l 11 Ii 1311 nil, I i rv;Hall gins H is 29 A ILI' tiro ?L -- 1 " — �vI �l ar 1Z, 71 1 P 11 v Ln cEi t t 5 E .5 It All 0 Am E IC a I 6— R -5 t 121 211 M— n M Q, M Fy's z z fz wo, dar q SM5 E u W Em E , C 0 1 zE fix" a S-, Q g Ll u- E- C. m MS E E E I uu M. RAU p of > Do MOVE E El E t b 1 S 2 Q I u u i u! 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ON 0 = , .— a 5 '-� 6 tW MRSIalul Notice of Sale and Terms of Offering Ames \419370-1201st 1/2 CBS NOTICE OF SALE City of Ames, Iowa $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 �xpaled bids will be received on behalf of the City of Ames, Story County, Iowa, until 100 o'clock pan. on the 14th day of December, 1993, at the Council Clja.mberEw, Admi.nistration Building, ies, Iowa, for the purchase of $3,825,000 General I( I )bligation Corporate Purpose Bonds, Series 1994, of the City, at which tirne such bids will 'be opened and canvassed. Thereafter such bids will be presented to the City Counce fo!r consideration at its meeting to be held at 7.00 o'clock p.m. on the same date at the Council Chambers, Administrative Building, Ames, Iowa, at which time the Borids will be said to the best bidder for cash. No open bids will be accepted. The Bonds will be, issued as fully registered bonds in denominations of $5,000 or any integral multiple thereof, will be dated January 1, 1994, will bear interest payable serniarinually on each June I and December 1, to maturity, commencing June 1, 1994, and will mature on June I in the following years and amounts: Principal Principal Year -- Aniount Year Amount 1994 $300,000 2000 $290,000 1995 $420,000 2001 $290,000 1996 $420,000 2002 $290,000 1997 $4..15,000 2003 $290,000 1.998 $410,000 2004 $290,000 1999 $4.10,000 T.he right is reserved to the City to call and redeem all of the said Bonds maturing in the years 2003 and 2004, inclusive, in whole or from time to time in part, in one or more units of $5,000, prior to maturity (and within a maturity by lot), on June 1, 2002, or on any date thereafter, upon terms of par and accrued interest. Bidders must specify a price of not less than $3,794,400, plus accrued interest. The legal opinion of Dorsey & Whitney, Attorneys, Des Moines, Iowa, will be furnished the City. A good faith deposit of $38,250 is required and may be forfeited to the City in the event the successful bidder fails or refuses to take and pay for the Bonds. -5- DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA Ames \41937G-1 2\ 1 st 1/2 GBS The Bonds are being issued pursuant to the provisions of Division III of Chapter 384 of the Code of Iowa and will constitute general, obligations of tile City, payable from taxes levied upon all the taxable prop(,.,�rty in the City withotit limitation as to rate or amount. Bidders should be aware that the official terms of offering to be published in the Official Statement for the Bonds contain additional bidding ternas and information relative to the Bonds. In the event of a variance between statemenits in this Notice of Sale (except with respect to the time and place of the sale of the Bortds and the principal amount offered for sale) and said official ternis of offering, the provisions of the latter shall control. By order of the City Council of Ames, Iowa, Sandra L. Ryan City Clerk -6- DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA 'VERMS OF OFFERING' In addition to the provisions of the Official Notice of Bone] Sale, this se(,.tj(nj sets forth the description of certain of tire terms of Bonds as well as tire terms of" offering with which all bidders and bid proposals mre require(I to comply, as follows: Form of Bids Bidders should specify the rate or rates of' interest and aniount of'prermurn or discount, if any, and all other conditions being equal, Preference will be given to the bid which specifies the lowest Net Interest Cost to the Cuy. No bid calling I'm a discount ol'greatcr thane 0.8% will be accepted. The City reserves the right to re,jectany or ball bids arid to waive irregularities ill any bid. Rates offriterest-, "I'here is lie finin on tile noinibei of' rates bid, but all principal maturing on the same date must bear interest at the same rate, Each interest rate specified must be in as multiple of 1/8 or 1120 of' I I%. No rate bid on any given maturity may exceed the rate bid on a subsequent maturity, Good Faith Deposit: A Good Faith Deposit ("Deposit") jr, the form of certified or a cashier's check or a Financial Surety Bond in the amount of$39,250, payable to the order of tile City, is required for each bid to be considered. If a check is used, it must accompany each birl. If a Finallcial Surely Bond is used, it must be from an insurance COMparly liCCDSCd to issue such a bond in the State of Iowa, and such bond rnust be submitted to the Issuer or its Financial Advisor prior to tile opening of the bids, The Financial Surety, Bond must identify each bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to as bidder ufitizing a Financial Surety Bond, their that purchaser ("Purchaser") is required to submit its Deposit to the Issuer or its Financial Advisor in the form of a cashier's check (or wire transfer such amount as instructed by the Issuer or its Financial Advisor) not later [hall 3:30 P.M., Central Tinic on [lie. next, business clay following the award, 11'such Deposit is not received by that time, The Financial Surety Bond rnay be drawn by the Issuer to satisfy the Deposit requirement. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Bonds. In the event the Purchaser fails to honor its accepted bid, the Deposit will be retained by the issuer, Book Entry Systern: The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name of Cede & Co., as nominee of the Depository Trust Company (DTC), New York, New York. DTC will act as securities depository of the Bonds. Individual purchases will be made in book - entry form only, in the principal amount. of $5,000 and integral multiples thereof. Purchasers will 'lot receive certificates representing their interest ill the Bonds purchased. Principal and interest will be paid to DTC, which will in turn, remit such principal and interest to its participants, for subsequent disbursement to the beneficial owners of the Bonds. Delivery: The Bonds will be delivered to DTC in New York within 40 days after the sale against fill] payment in immediately available funds. CUSIP Numbers, The City will assume no obligation for the assignment of CUSIP numbers oil the Bonds, or for the correctness of any numbers printed thereon, but will permit such printing to be done at file expense of the purchaser if the purchaser waives any extension of the time of delivery caused thereby. Certificate of Purchaser: The purchaser will be required to provide certain information relating to the initial offering prices and sales of the Bonds necessary to complete the Internal Revenue Service reporting forms prior to closing. (End of Terms of Offering,) ,APPEN DIX C Forin of Legal Opinion A F'a'r"Mgzlw Ncm— P--.- OR-A-XD, SUITE 3900 10W& 30�,'jc.)Sj NZW YORK, IREW DAVID L MOUnST 2, JONYXA MILX (57N) za3-ko6o =MN VIDINnE, IOWA 11,r1W7X Y XTXTOSU M 1"r60T� �Accsn% MONTAN� ORZ,�T k",Lt, xowTA.t -hihVULLA WO�WAWA, LONDUN, LNLX�ND "P'7'13RLS, DRI01UU We hereby certify that we have examined a certified copy of the pr"o"c"e"'e'd"'in"':gt's of the City Council of the City of Anies, in, the County of story, state of Iowa (the "Issuer"), passed preliminary to the issue by the Issuer, of its G'enera.1 Obligation, Corporate Furpose Bonds, Series 1994 (the "Bon4s") in the antot of $3,,000, (.1ated januiry 1, 1994, iT1 tho gipyinmina6on of VS,Orm Park, or any integral multiple, thereof, maturing on June I in each of the respective years, and in tlie principal amotints and bearing interest payable serni arinually, cornmellcilIg June 1, 1994, at the respective rates, as follows, Year Principal Interest to Principal Interest Rate, AMQ-tin -t &E —Anr'U)M Y-M A.M�Qkinit Ppt.-Aaqum 1994 $3M,OOO 170 2000 $290,000 % 1995 $420,000 % 2001 $290,000 0/0 1996 $420,000 % 2002 $290,000 % 1997 $415,000 % 2003 $290,000 % 1,998 $410,000 % 2004 $290,000 % I. $410,000 but the Bonds maturing in each of the years 2003 and 2004 are subject to redemption prior to maturity at the times and on the tenns specified in the Bonds, thdt. Based upon our examination, we are oon f the opinion, as of the date hereof, 1, The aforementioned proceedings show lawful authority for such issue under the laws of the State of Iowa. 2, The Bonds are valid and binding general obligations of the Issuen 3All taxable property within the corporate boundaries Of the Issuer is subject to the levy of taxes to pay the principal of and interest on the, Bonds without constitutional or statutory limitation as to rate or amount. 4. The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal DORSEY & WHITNEY WA alternative mininium tax imposed on 4idividuals and corporatiolls; It should be noted, however, ffiat for the purpose of computing the alternative Minimurn tax imposed on corporations (as defined for federal income tax purposes), such interest is takpr intci acemint in determiring adjusted current Parnings, The opinion_,; set forth in the preceding sentence are subject to the condifion that the suer comply wia-, 411 requirements of the huern4 'Revenue Oude of 1986 (the "Code") that Must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gros& inconte for federal income tax pgar pows,, The Issuer has cov,enanted to comply with each such requirement, Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal incoyne tax purposes to be retroactive to tine date of issuance of the Bonds, 5The Bonds are not "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, and, therefore, in the case of certain financial institutions (within the rneaning of Section 265(b)(5) of the Code), a deduction is not allowed for any portion of such financial institutions' interest expense allocable to interest on the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. The righLs of the owners of Lhe 13ond.5 4nd aie er.ru,ceabimy thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' fights heretofore or hereafter enacted to the extent constitutionally applicable, and theiT enforcement may also be subject to the exercise of judicial discretion in appropriate cases. (This page has been ](eft J,)j,,jjjjj intentionallv') $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 City ol'Arnes, Iowa DA,rt3'D 01/1/94 DUE, S'I'AR'FIN(-.r 6/1/94 YEAR- AMOUNT RUN BONI) YEARS CUMULATIVE COUPON YEAR 01-Jun-94 $300,000 0.42 125.000 125.000 01-Jun-94 0 1 -Jun-95 $420,000 1.42 595,000 720.000 01-Jun-95 01-Jun-96 $420,000 2,42 1,015MO 1,735.000 01-Jun-90 01-Jun-97 $415,000 142 1,4 17.9 17 3,152,917 0 1 -Jun 97 0 1 -Jun-99 $410,000 442 1,810.833 4,963.750 01-Jun-98 0 1 -Jun-99 $410,000 5.42 2,220.833 7,184.583 0 1 --Jun"99 01-Jun-2000 $290,000 6A2 1,860.833 9,045.417 0 1 -Jun-2000 0 1 -Jun,-2001 $290,000 7.42 2,150.833 11,196.250 01 Jun-2001 01-Jan-2002 $290,000 8.42 2,440.833 13,637083 0 1 -Jun-2002 01-Jun-2003 $290,000 9.42 2,730.833 16,36T917 01-Jun-2003 01-Jun-2004 $2q0_Q00 10.42 3—OZOM-3 19,388.750 ------ .- 01Jun-2004 $ -00 1A25M ZM-V59 AVERAGE MATURITY: 5.07 PRICE: NOT LESS THAN $3,794,400 INTERE'STRA:IT,S: RATES ARLTO 13E IN INTEWW, MULTIPLES OF IM OR 1/20 OF' I'Vo, OR ANY COMBINATION THEREOF, IN ASCENDING ORDER, ONE RAIT, PER MAWRITY, CALL FEATURE: BONDS MXfURJNG ON JUNE 1, 2003 ANDT111",REAFTER ARE SUBJECT TO RI..,,DEMI)Tl(.)N PRIOR TO MATURITY ON JUNE 1, 2002, AND ON ANY DMJ�, IjlF,,RI,',A-FTFR AT A PRICE OF PAR PLUS ACCRUI-,',D INTEREST. (This page has been left bl�jnj� intentionally.) OFFICIAL BID FORM Members ofthe City 'itv Council City of Agnes, Iowa Sale Date: December 14, 1993 For the principal amount of $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 of the City of' Armes, Iowa, legally issued and as described in the Notice of Sale of Bonds and'Verryis of Offi&irlg, we will P,1Y flw' City (not. less than $3,794,400) plus accrued interest on the total principal of $3,825,000 to data; of delivery, provided the Bonds bear the following interest rates: Interest. Year Amount Interest Bate, Anwunt Ratc� 1994 $300,000 2000 $290.,000 1995 420,000 �Xo 2001 290,000 (Yo 1996 420,000 2002 290,000 1997 415,000 2003 290,000 1999 410,000 'Vo 2004 290,000 lyo 1999 4 10,000 The Bonds nature on J1111C 1, it, each of the ,years as indicated above and interest is pay,able Julie 1, 1994, and semiannually thereafter on Decernber I and June I of each year. In making; this offer, we accept the terms and conditions is defhwd in the Notice of Sale and Terins of Offering published in the Official Statement dated Dewinber 3, 1993. All blank spaces of this offer are intemional and are not to be construed as an oinission. NOT PART OF THE BID Respectfully subruitted, Explanatory Note: According to our computation, this bid involves the following: Net Interest Cost Net Interest Rate Account. Manager E (A list of account inembers is on the reverse side of this proposal.) 'file foregoing offer is hereby accepted by and on behalf of the City of Ames, Iowa, this f4th day of December, 1993. . . .. . . . ........ ... . . ..... (Title) (Title) OFFICIAL BID FORM Members of, the City Council C,ny of Arms, Iowa Sale Dale: December 14, 1993 F'or the principal amount of $3,825,000 General Obligation Corporate Purpose Bonds, Series 1994 of the City Of Arnes, Iowa, legally issued and as described in the Notice of Sale of Bonds and,rerins of Offering, we will, pay the City (not less than $3,794,400) plus accrued interest on the total principal of $3,825,000 to date of delivery, provided the Bonds bear, the following interest rates: Interest Interest Year Amount . . ..... . Amount Rate Year Amount Rate 1994 $300,000 2000 $290,000 1995 420,000 2001 290,000 1996 420,000 2002 290,000 %) 1997 415,000 2003 290,000 1yo 1999 410,000 2004 290,000 1999 4 10,000 The Bonds mature oil.Dane 1, in each of the years as indicated above and interest is payable June 1, 1994, and semiannually thereafter oil Decernber I and June I of each year. in making (.his offer, we accept the terms and conditions as defined in the Notice, of Sale all(I 'fermis of'Offering published in the Official Statement dated December 3, 1993. All blank spaces ref this offer are intentional and are riot to be construed as an emission, NOT PAR." F 017 THE BID Respectfully submitted, Explanatory Note: According to our computation, this bid involves the following: Im Net Interest Cost Net Interest Rate Account Manager ---- (A list of account members is oil the reverse, side of this proposal,) The foregoing offer is hereby accepted by and oil behalf of the City of Aines, Iowa, this 141h day of' December, 1993. 1 (1 1 'i - t - 1 11 e I- ) (Title) OFFICIAL BID FORM Members of the City Council City ofArnes, Iowa Sale Date: December 14, 1993 For the principal arnount of $3,825,000 General Obligation Corporate Purpose Bonds, Series 1.994 of the City of Ames, Iowa, legally issued and as described in the Notice of Bale of Bonds and'l-errns ol'Offering, we will pay the City $- (not less than $3,794,400) plus accrued interest on the total principal of $3,925,000 to date of delivery, provided the Bonds bear the following interest, rates: Interest Interest `,Year Arnount Rate Year Aniount Rate 1994 $300,000 2000 $290,000 (V, 1995 420000 . ...... . ..... % 2001 290,000 — ----- --- X� 1996 420�000 % 2002 290000 . . .. ....... . - (!/o 1997 415,000 '% 2003 290,000 1999 410,000 - --------- . . .... ........ ---- 2004 290,000 . . .... 1999 410,000 The Bonds nature; on June 1, in cacli of the years as indicated above and interest is payable June 1, 1994, and semiannually thereafter on December I and :lone I of each year. Ina inaking this offer, we accept the lerins and conditions as defilled if) the NOice of Sale, and Ternis of'011'erilit" published ia the Official Statement dated December 3, 1991 All blank. spaces of this offer are ifflentional and are, not to be construed as an omission. NOT PART OFTI-11", BID Respectfiffly sutnuined, ---------- Explanatory Note: According to our computation, this bid involves the followingi Net Interest Cost (y, Net Interest Rate Account Manager M (A list of account members is on the reverse side of this proposal.) The foregoing offer is hereby accepted by and on behalf of the City of Arnes, Iowa, this 14th day of December, 1993, I (Title) I (Title)