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
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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)