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A004 - Official Statement from Evensen Dodge
T1i "t I In the inion of Bond Counsel;under criuntg law,uuerest to be paid to the holders of the General Obligation Refunding Band;Series 1993 is excluded from gran ineane for federal incamt taxpurpasas Ratings: Moody's•(Applied For) Standard&Poor's•(Applied For) OFFICIAL STATEMENT (REFUNDING) $8,140,000(1) General Obligation Refunding Bonds, Series 1"3 CITY OF AMES, STORY COUNTY,IOWA Dated: February 15,1993 Due: June 1,1993/2008 Minimum Bid: $8,066,470 Good Faith Deposit: $81,400 The Bonds are issued pursuant to Chapter 384 of the Code of Iowa, for the purpose of providing funds to refund certain indebtedness of the City. The Bonds will be general obligations of the City for wlvch its full faith and credit and unlimited taxing powers are pledged. The Bonds will be issued as fully registered Bonds without coupons and,wben issued,will be registered in the name of Cede&Co.,as nominee of The Depository Trust Company("DTC'). DTC 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 1,1993,and interest on the Bonds,payable initially on June 1,1993,and thereafter on each December 1 and June 1,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 as described herein. The Bonds maturing on June 1,2001 and thereafter are subject to redemption prior to maturity on June 1,2000 and on any date thereafter at a price of par plus accrued interest. The Bonds will mature June 1 in the years and amounts as follows: Interest Interest Year Amount Rate' Yield* Year Amount Rate* Yield' 1993 $125,000 % % 2001 $730,000 % % 1994 110,000 % % 2002 740,000 1995 335,000 % % 2003 755,000 % 1996 325,000 % % 2004 770,000 °� %o 1997 690,000 % % 2005 370,000 % 1998 705,000 % % 2006 365,000 % % 1999 695,000 % % 2007 360,000 % % 2000 710,000 % % 2008 355,000 % % 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 1986. REGISTRAR The City of Ames,Iowa. LEGAL OPINION: Dorsey&Whitney,Des Moines,Iowa. BIDS RECEIVED UNTIL.• Tuesday,February 9,1993;11:00 A.M.,C.T. Council Chambers,Administrative Building Ames,Iowa BIDS CONSIDERED: Tuesday,February 9,1993,7:00 P.M. The date of this Official Statement is February 2,1993. (1) The City reserves the right to increase or decrease the par amount of the bonds by an amount not to exceed$360,000 in total or $50,000 for any annual maturity for the 1993 and 1994 maturities;$200,000 per maturity for the 1995 and 1996 maturities; and $70,000 per maturity for the 19911-2008 maturities. If the issue size is adjusted,the purchase price will be adjusted proportionately. • Interest rates,reoffering yields or prices and rating will be set forth in the Final Official Statement described herein. (Tms COVER PAGE COMMM CERTAININFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF TWS ISSUE INVESTORS MUST READ 771E EN7lRE OFFICIAL STAnmENT ro omiNwoRmA77ONLuEN7UL TO THE MAKM OPANDMRNED 96WTMENT DECISIOK) EVENSEN DODGE INC �� F I NANCIAL CONSULTANTS • TABLE OF CONTENTS Page Introduction to the Official Statement............................................................... Description of the Bonds............................................................... ......................................................... 1 .................................................. Authorization........................ ..............................2 ....................................................................................................................................2 SePurpose of the Bonds...................................................................................................................................................2 curity......................................................................................................................................................................Redemption Provisions............. 2 ..........2 Interest Computation........................................... ...............3 Registration and Transfer...........................................................................................................................................3 The City of Ames............................................... ....................................................................... Description............ ......................................5 CiOrganization..................................................................................................................................................................5 ty Services....................................................................... Economic and Demographic Information... ............................................................................................................................................... Population....................................................................... ...............................8 Industry ............................................................................................8 .......................................................................................................................... ...................................9 Labor Force Statistics....................... ...................................................................................... Retail Sales and B ...................................... 9 g Income................................................................................................................................10 Financial Services.........................................................................................................................................................10 Construction.................................................................................................................................................................11 Education......................................................................................................................................................................11 Medical Facilities......................................................................................................................................................... 12 DebtStructure................................................................................................................................................................ 12 Debt Limit................................................................. DFutureFinancing.......................................................................................................................................................... 12 Lebt Trends.................................................................................................................................................................. 13 Oong-Term Debt.......................................................................................................................................................... 14 Gverlapping Debt........................................................................................................................................................ 15 Reneral Obligation Debt............................................................................................................................................15 Cevenue Debt..............................................................................................................................................................17 Fiapital Leases..............................................................................................................................................................18 nancial Information................................................................................................................... Property Valuations and Taxes...... ................................ .......................................................................... Property Valuations and Tax Collection Procedures.............................................................................................22 TPropertyTax Levies and Collections........................................................................................................................23 Laxes Per$1,000 of Taxable Value...........................................................................................................................24 Pevy Limits........................................................................ ..............................................................................25 . .............. rincipal Taxpayers.............................................................................................................. Local Option Sales Tax............................................................... .......................................25 ................................................................................ Rating2.5 ............................................................................................................. Federal Tax Considerations........................ ..................................................................25 Not Qualified Tax-Exempt Obligations......................................................................................................................25 ............................................................... ................................... CClosing Documents........................................................................................................................................................26 Lertification....................................................................................................................................................................26 Negal Matters..................................................................................................................................................................26 Mio Litigation...................................................................................................................................................................26 scellaneous.................................................................................................................................................................27 Appendix A-Notice of Sale Appendix B-Financial Statements Appendix C-Form of Legal Opinion orksheet Bid Forms INTRODUCTION TO THE OFFICIAL STATEMENT The follawinT uifarrnarian is famished solely to pmvide limited introductory information regarding the City's $8,140,000* General Obligation Refunding Bonds, Senes IZ (the "Bonds") and does not purport to be com rehensrve. All such information is qualified in as entirety by reference to the more detailed descriptions appearing in this Official Statemen4 including the appendices hereta Issuer. City of Ames,Iowa Security. General obligation,unlimited tax levy. Purpose: The proceeds of the Bonds will be used to refund the 1995-2008 maturities of the City's $6,850,000 General Obligation City Hall Bonds dated June 1, 1988 and the callable portion of the$3,900,000 General Obligation Sewer Improvement Bonds dated January 1, 1989. Optional Redemption The Bonds maturing on June 1, 2001 and thereafter are subject to redemption prior to maturity on June 1, 2000, and on any date thereafter at a price of par plus accrued interest. Denominations: $5,000 or multiples thereof. Record Date: The 15th day of the month preceding the payment date. Tax Status: Generally exempt from federal taxes (see "Federal Tax Considerations" herein). The Bonds will not be designated Qualified Tax-Exempt Obligations. Professional Consultants: Financial Advisor: Evensen Dodge,Inc.,Minneapolis,MN Bond Counsel: Dorsey&Whitney,Des Moines,rA Authority for Issuance: The Bonds are issued pursuant to Chapter 384 of the Code of Iowa. Book-Entry Only. The Bonds will he issued as book entry only securities through The Depository Trust Company. The Official Statement is in a form deemed final as of its date for purposes of the Securities and Exchange Commission Rule 15c2-12(b)(1), but is subject to minor revision or amendment in accordance with the Rule. The Final Official Statement will be the Official Statement dated February 2, 1993, and the addendum which includes the maturity dates and amounts, interest rates and reoffering yields or prices, credit ratings, and any other information required by law. Any such addendum shall, on or after the date thereof, be fully incorporated in the Final Official Statement by reference. The information set forth herein has been obtained from the City and other sources which are believed to be reliable, but it is not to be construed as a representation by the Financial Advisor or Underwriters. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement or the Final Official Statement nor any sale made thereafter shall, under any circumstances,create any implication that there has been no change in the affairs of the City or in any other information contained herein,since the date hereof. Questions regarding the Bonds or the Official Statement can be directed to and additional copies of the Official Statement, the City's audited financial reports and the Resolution may be obtained from Evensen Dodge, Inc., 222 South Ninth Street, Suite 3800, Minneapolis, Minnesota 55402, (612/338-3535), the City's financial advisor. • Preliminary,subject to change. 1 DESCRIPTION OF THE BONDS Authorization of the Bonds The Bonds are issued pursuant to Chapter 384 of the Code of Iowa and a resolution of the City to be adopted on February 9, 1993 after receipt of the bids on the General Obligation Refunding Bonds, Series 1993. The Resolution to be adopted on February 9,1993 is subject to a majority vote of the City Council Purpose of the Bonds The Bonds are issued to refund the following indebtedness of the City (collectively, the "Refunded Bonds"). The following is a schedule presenting the Refunded Bonds. Issue Outstanding Refunded Refunded Date Maturities Maturities Call oust Escrowed To: price 06/88 6/93-08 6/95-08 $4,900,000 Call Date,6-1-96(1) 100 01/89 6/93-04 6/97-04 L550,000 Call Date,6-1-96 100 7 450 000 (1) The 1995 and 1996 maturities will be escrowed to their maturity dates. Table 1 presents the estimated sources and uses for this issuance. TABLE 1 Sources and Uses of Funds SOURCES: Amount Bond Proceeds $8,140,000 00 Accrued Interest 3.398.33 Total Sources 143 398.33 USES: Cost of Escrow $7,975,918.35 Cost of Issuance 85,000 00 Underwriter's Discount 73,260.00 Estimated Accrued Interest 3,398.33 Miscellaneous 5.821.65 Total Uses 143 398.33 Security The Bonds will be general obligations of the City for which its full faith,credit and taxing powers are pledged, without limitation as to rate or amount. Redemption Provisions The right is reserved by the City to call and redeem all of the said Bonds maturing in the years 2001 to 2008, 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)upon terms of par and accrued interest,on June 1,2000,or on any date thereafter. • Preliminary,subject to change. 2 Notice of such redemption as aforesaid identifying the Bond or Bonds (or portion thereof) to be redeemed shall be mailed by certified mail to the registered owners thereof at the addresses shown on 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 property notice has been given and adequate funds provided,shall cease to bear interest on the redemption date. Interest Computation Interest on the bonds will be computed on a 360day year,30day month basis. Payments coming due on a non-business day will be paid the next business day. Registration and Transfer The Registrar will be the City of Ames, Iowa. 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 not receive certificates representing their Interest in 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. Each Bond shall be transferable only upon the registration books of the City upon presentation to the Bond Registrar, together with either a written instrument of transfer satisfactory to the Bond Registrar or the assignment form thereon completed and duly executed by the registered owner or the duly authorized attorney for such registered owner. Book-Entry Only System 1. The Depository Trust Company ("DTC"), New York, NY will act as securities depository for the Bonds (the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully-registered Security certificate will be issued for each annual maturity of the Securities,each in the aggregate principal amount of such annual maturity,and will be deposited with DTC. 2. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization"within the meaning of the New York Banking Law,a member of the Federal Reserve System,a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and 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 American Stock Exchange, Inc., and the National Association of Securities Dealers,Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants,which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not 3 receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers,all Securities deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Securities with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownershi DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only identity 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 on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to indirect Participants,and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them,subject to any statutory or regulatory requirements as may be in effect from time to time. 6. Redemption notices shall be sent to Cede & Co. If less than all of the Securities within an issue are being redeemed,DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC or Cede & 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 on DTC's records unless DTC has reason to believe that it will not receive payment on the payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Agent, or the Issuer, subject to any statutory or regulatory requirements as may be 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 disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. 9. DTC may discontinue providing its services as Securities depository with respect to the 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 not 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. 11. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. 4 THE CITY OF AMES Descrotion The City of Ames 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 July, 1975 under the Home Rule City Act The City,with a population of 47,198,is known for its excellent quality of life which includes a relatively crime- free environment, extensive park system, superior cultural/recreational facilities, and nationally recognized school system. ftanization The City is governed under a Council-Manager form of government The mayor and two council members are elected at large; the other four council members 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 development The Council and staff have long supported a professional approach to local government management and involvement in professional organizations. Many of the City's department heads have gained national and international reputations in their professional fields. CITY COUNCIL Initial Present Term Term Member Office Commenced F.Uires Larry R_Joyce Hertz Mayor 1/1/90 12/31/93 Council Member-At-Large 1/1/90 12/31/93 Judie Hoffman Council Member-At-Large 1/1/88 12/31/95 Sharon Wirth Council Member-First Ward 1/1/90 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 Member-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 Tom Neumann Director of Water,Water Pollution Control Paul Wiegand,P.E. Director of Public Works Merlin Hove Director of Electric Dept 5 City Services The City operates water,electrical and sewer utilities through modem city-owned systems. It also maintains a Municipal Solid Waste Recovery System and operates parking lot facilities,a transit system,a recreational ice facility, a municipal golf course and a municipal airport which is the busiest general aviation airport in the State. A brief summary of the enterprises operated by the City is presented below. Mary Greeley Medical Center The municipally owned Mary Greeley Medical Center is a 220 bed regional referral center which serves the City of Ames and an eight-county area in north central Iowa. Among the services provided are medical, surgical, pediatrics, intensive care, mental health, obstetrics, nursery, neonatal intensive care, emergency, hemodialysis, radiology, coronary care, and physical, respiratory, recreational and occupational therapy services. See Future Financing on page 12 for additional information. Electric Utility The Electric Utility generates electricity in a coal-fired power plant that also burns RDF(refuse-derived fuel) as a supplement to coal. The RDF is obtained through the Ames solid waste recovery system. On March 1, 1982, the city completed construction of a combustion turbine 60-megawatt steam unit. It is anticipated that with this addition,the plant will be able to supply the electric power needs of the City through 1994. The total cost of the program was approximately$52,000,000. This was financed through the issuance of$43,000,000 in revenue bonds and$9,000,000 from operating revenues. Water Utility 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. An additional 1,750,000 of storage capacity if provided by two elevated storage towers. Sewer Utility The Municipal Sanitary Sewer System of the City of Ames 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. Resource Recovery The City of Ames and surrounding communities are served by the Arnold O. Chantland Resource Recovery Center,which provides communities with an environmentally safe means of solid waste disposal. Ames owns and operates the facility, while thirteen local governmental units, including Ames, share in the cost of its operation. Transit System The City operates a mass transit system to provide efficient and economical transportation to all members of the community. A fixed routing service is available on a daily basis to most residents and a Dial-A-Ride service is available for elderly or handicapped residents. 6 Offer Municipal ServiCeS The Ames Police Department has a staff of 67 of which 49 are sworn officers. The City's Fire Department operates out of two stations with a staff of 54. The Ames Parks and Recreation Department maintains the City's 600 acres of park property, including the Homewood Golf Course and the Community Center Ice Facility. Employee Relations The City has 1,755 permanent employees of whom 1,230 work in the City-owned Mary Greeley Medical Center. City employees are represented by five bargaining units. The City's agreements with the bargaining units are as follows: Association Contract Expires International Association of Firefighters June 30, 1993 Public,Professional and Maintenance Employees June 30,1993 International Brotherhood of Electrical Workers June 30,1994 International Union of Operating Engineers(Local 234) June 30,1993 International Union of Operating Engineers(Local 234D) June 30, 1994 The City has several contributory 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 of Ames. All full-time employees must participate in one of the plans. The City administers the Utility Retirement Systems. The State administers the Iowa Public Employees Retirement System and the Municipal Fire and Police Retirement System of Iowa; the City's responsibility is limited 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 the year ended June 30, 1992 was S2,203,869. 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. 7 ECONOMIC AND DEMOGRAPHIC INFORMATION Population 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 unemployment rates. The City experienced a 46 percent growth in population from 1960 to 1970. In the years 1970 to 1980,the City had a 16 percent growth in its population. The trends in growth are expected to continue for the City of Ames. The citizens of Ames are mostly well- educated,upper class professionals. TABLE 2 City of Ames,Iowa Demoemphic statistics Education Per Level in Years Unemployment Capita Median of Formal School Rate Year Population(1) Income(1) AAe(1) Schoolin 1) Enrollment(2) (Percentagel(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 2.1% 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% 1987 45,775 14,085 22.7 15.70 4,471 1.8% 1988 45,775 14,085 22.7 15.70 4,452 1.7% 1989 45,775 14,085 22.7 15.70 4,573 1.8% 1990 47,198 14,085 22.7 15.70 4,706 1.8% 1991 47,198 15,062 22.7 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 Ames Community School District. 3 The City of Ames Comprehensive Annual Financial Statements,Years 1980-1992. 8 Industry The City of Ames has a diverse industrial base. Among the products manufactured by companies located in Ames are precision electronic instruments, hydrotransmission equipment, water treatment and analysis equipment, farm implements, abrasives and feed and grain products. A number of governmental units and other public institutions also contribute significantly to the Ames economy. The major employers in Ames are listed in Table 3. TABLE 3 Major Employers 1992 Firm/Organization Business/Service Employees Iowa State University University 6,000 Iowa Dept.of Transportation Headquarters 1,219 City of Ames All functions(including Medical Center) 1,755 Ames Community School District Education 650 Ames Laboratories Environmental Technology 650 McFarland Clinic Medical Clinic 550 SAUER-Sundstrand Corporation Hydro-Transmission Research and Assembly 445 3M Company Abrasives Manufacturing and General Distribution 360 U.S.Department of Agriculture National Animal Disease Center and Other Facilities 360 Hach Chemical Company Water Analysis Equipment 275 National Veterinarian Service Lab Veterinarian Association 270 General Filter Co. Water Treatment Equipment 120 National Farmers Organization Farmers Association 115 ACI Mechanical Corporation General Contractors 95 Principal Financial Financial Services 90 Source: Ames Chamber of Commerce. Labor Force Statistics The State of Iowa Job Service Office Reports annual unemployment rates and labor force figures for Ames as shown in Table 4. TABLE 4 Employment Statistics Ames _ Unemployment Rates Year Labor Force Ames State of Iowa 1982 24,160 4.2% 8.5% 1983 24,840 4.2% 8.1% 1984 24,370 3.1% 7.0% 1985 - 24,650 3.3% 8.0% 1986 25,070 3.1% 7.0% 1987 25,390 2.3% 5.5% 1988 26,640 1.7% 4.5% 1989 26,940 1.6% 4.3% 1990 26,700 1.9% 4.2% 1991 26,940 2.3% 4.6% 1992(1) 28,010 1.6% 3.6% (1) For November,1992. Source: State of Iowa Job Service. 9 Retail sales 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 1987 through 1991,as reported by Sales and Marketing Management's"Survey of Buying Power." TABLE 5 Retail SalesBuvine Income 1991 1990 1989 1988 1987 Median Household Effective Buying Income Story County $30,692 $26,839 $23,833 $22,712 (1) $26,142 State of Iowa 29,690 24,699 21,823 20,618 (1) 23,277 City of Ames 28,419 25,098 22,285 21,239 (1) 24,470 Per Capita Retail Sales Story County 7,087 6,864 S 6,591 $ 6,230 $ 6,011 State of Iowa 7,023 6,793 6,229 5,973 5,741 City of Ames 8,961 8,699 8,746 7,847 7,557 (1) The 1988 figures reflect a second recalculation of EBI statistics which resulted in numbers averaging 11% less than the 1987 figures. Financial Services Three full-service banks serve Ames. The growth of the combined deposits in those banks for the years 1983 through 1992 is shown in Table 6. TABLE 6 Bank Deposits (1) Year Ended December 31 Total Deposits 1983 $216,309,708 1984 228,718,000 1985 243,473,000 1986 280,317,000 1987 291,761,000 1988 287,852,000 1989 323,357,000 1990 350,746,000 1991 377,366,355 1992(2) 147,475,110 (1) Combined deposits in Frstar/Ames,First National Bank,and American State. 2 The figure for First National Bank was not yet available. Source: Iowa Bank Directory. 10 Construction Construction activity within the City as shown by its building permit records if presented in Table 7. TABLE 7 Ames Building Permits Commercial Residential Construction(l) Construction Number Number Year of Units Value of Units Value 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 94 3,476,283 378 14,941,190 (1) Includes new construction and remodeling. Education Elementary and Secondary Most of the City is a part of the Ames Community School District The District operates eight elementary schools,one middle school and one senior high school. The school district employs 650 people, of whom 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 Community School District and the Nevada Community School District also overlap into the City of Ames. However, these districts, in total, represent less than 1%of the City's property valuation. Vocational Ames is also a part of the Des Moines Area Community College District (DMACC). 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 Sam University Ames is the home of Iowa State University (ISU). ISU was established in 1859 and is an integral part of the community. The fall, 1992 enrollment was approximately 25,250, and the University is the City's major employer with faculty and staff totaling approximately 12,000, including teaching assistants and hourly part- time employees. The-University,in addition to its educational function,is a 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 major athletic, dramatic and musical events, as well as seminars and conferences,to Ames. 11 Medical Facilities The municipally owned Mary Greeley Medical Center is a 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, hemodialysis, radiology,coronary care and physical,respiratory,recreational and occupational therapy services. See Future Financing for additional information. Adjacent to the Medical Center is the McFarland Clinic offering complete medical service. The Clinic has 1,135 employees and is serviced by an 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. DEBT STRUCTURE Debt Limit The Constitution of the State of Iowa,Article XI,Section 3,provides as follows: "Indebtedness of political or municipal corporations. No county, or other political or municipal corporation shall be allowed to become indebted in any manner, or for any purpose, to an amount, in the aggregate, exceeding five per centum on the value of taxable property within such county or corporation to be ascertained by the last state and county tax lists,previous to the incurring of such indebtedness." Revenue and Special Assessment Bonds are not subject to the City's debt limit. The City's debt limit,based on 1991 property valuations is shown in Table 8. TABLE 8 Debt Limit Computation Upon the Issuance of the Bonds(1) Legal Debt Limit of 5%of 100°10 of Actual Value (fiscal year 1992/93)(2) $52,000,008 General Obligation Bonds Outstanding(as of February 15, 1993) 21,370,000 Legal Debt Limit Margin(58.9%) 30 630 008 (1) Includes this General Obligation Bond issue. (2) Calculated on Gross Actual Value without military exemption deducted. Source: City of Ames Finance Department Future Financing In 1992 the Mary Greeley Medical Center issued S21,000,000 in Revenue Bonds to fund an expansion and various improvements of existing facilities. The Mary Greeley Medical Center anticipates the issuance of $24,000,000 in Revenue Bonds in February, 1993 to further fund the expansion and the various improvements. 12 Debt Trends Table 9 presents debt ratios upon the issuance of the Bonds. TABLE 9 Debt Ratios Upon Issuance of the Bonds %of %of Per Actual Taxable Amount K Dg to Value Value Direct Debt Levy Supported Portion(1) $20,520,000 S434 1.97% 2.39% Overlapping Debt 2,204,517 47 0.21% 0.25% Totals $22,74%517 481 2.18% 2.64% (1) Does not include S850,000 General Obligation Sewer Bonds dated January 1,1989 supported by sewer revenues. Table 10 summarizes debt outstanding as a percent of assessed value and debt per capita for the last ten years. TABLE 10 Ratio of Net General Bonded Debt as a Percent of Assessed Value and Net Bonded Debt Per Capita Ratio of Net Net General Gross Leas Debt General Bonded I nY Assessed General Service Net General Bonded Debt to Debt Year Population Value Bonded Debt(2) Q-da Bonded Debt Assessed Value ver Capita 1982-83 45,775 $570,061,287 $11,275,000 $156,406 $11,118,594 .0195 to 1 24290 1983-84 45,775 601,137,781 14,230,000 205,367 14,024,633 .0233 to 1 306.38 1984-85 45,775 634,998,534 13,205,000 225,011 12,979,989 .0204 to 1 283.56 1985 86(1) 45,775 666,578,535 13,280,000 345,491 12,934,509 .0194 to 1 28257 1986-i7 1 45,775 719,767,337 12,730,000 372,876 12,357,124 .0172 to 1 269.95 1987 1 45,775 737,543,912 18,265,000 258,545 18,006,455 .0244 to 1 393.37 1988-8 1 45,775 788,452,871 16,435,000 602,494 15,832,506 .0201 to 1 345.88 1989- 1 45,775 797,635,129 14,770,000 386,984 14,383,016 .0180 to 1 314.21 1990-91 1 47,198 816,798,773 13,200,000 216,559 12,983,441 .0159 to 1 275.08 1991-92(1) 47,198 849,303,586 17,440,000 181,441 17,258,559 .0203 to 1 365.66 (1) The Special Assessments Fund was eliminated in 1986-87 in accordance with Governmental Accounting Standards Board Statement No. 6, and its activities are now accounted for in the Debt Service and Capital Projects Funds. It was not practical to restate years prior to 1985-86. (2) Does not include general obligation debt supported by sewer revenue. Source: United States Census Bureau and Story County-Office of Auditor. 13 Lon&Term Debt TABLE 11 Long-Term Debt (June 30, 1992 and February 15, 1993) (Including this Issue) Amount Outstanding Date of Final Originally Outstanding Pro Forma Issue Interest Rates Due Date Issued June 30,1992 February 15,1993 General obligation bonds:-(1) Sanitary disposal 03/75 4.60%-0.50% 06/94 $ 5,300,000 $ 600,000 $ 600,000 Corporate purpose 10/79 5.85%-7.00% 06/99 4,405,000 2,200,000 2,200,000 Corporate purpose 1185 530%n-8.00% 12/97 1,300,000 220,000 110,000 (2) Corporate purpose 05/87 5.00%-0.25% 12/02 770,000 550,000 500,000 Central City Hall 06/88 6.125%-7.50% 06/96 6,850,000 5,550,000 650,000 (3) Sewer 01/89 630%-7.15% 06/96 3,900,000 3,371,044 (4) 850,000 5 Refunding Bonds 05/91 5.00%-6.00% 06/98 2,310,000 2,310,000 2,310,000 Corporate purpose 06/92 5.40%-5.90% 06/04 6,010,000 6,010,000 6,010,000 Refunding Bonds 02/93 This Issue 06/08 7,430,000 -0- 8,140,000 Total general obligation bonds $20,811,044 $21,370,000 Revenue bonds:(6) Medical Center. 1979 01/79 7.10%-750% 07/92 6,800,000 $ 4,125,000 $ 0 - (7) 1986 08/86 7.75%-8.25% 07/92 9,000,000 7,770,000 -0- 8 1992 10/92 3.25%-6.00% 08/03 21,000,000 -0- 21,000,000 Total Medical Center revenue bonds $11,825,000 $21,000,000 Electric: 1978 07/78 5.50%-7.50% 01/08 26,000,000 20,290,000 19,535,000 1982 11/82 10.00%-10.50% 01/98 17,000,000 1,500,000 -0- (9) Refunding Bonds 04/91 5.75%-6.10% 06/98 10,385,000 10,194,325 (10) 10,045,000 Total electric revenue bonds $31,984,325 $29,580,000 Sewer Revenue Bonds: Sewer-1987 05/87 4.25%-0.50% 12/02 4,230,000 3,415,126 3,225,000 Sewer No.2-1987 12/87 5.50%-7.40% 12/01 2,375,000 1,926,565 1,825,000 Total sewer revenue bonds $5,341,691 (11)$ 5,050,000 Total revenue bonds $49,151,016 $55,630,000 Total all bonds 69 962 060 7 1 Secured by the City's full faith,credit and unlimited taxing power. 2 Issue was refunded as of April,1991. 3 The 1995-2008 maturities totalling S4,900,000 will be refunded by this issue. The 1995 and 1996 maturities will be escrowed to their maturities. 141 Bonds were sold at a discount;unamortized discount at June 30,1992 amounted to$28,956. The 1997-2004 maturities totalling$2,550,000 will be refunded by this issue. Secured only by revenues-no ggeneral obliggation backing. The remaintng maturities totalling$3,775,000 were refunded as of January 1,1993. The remaining maturitiestotalingg$7,400,000 were refunded as of January 1,1993. Issue was refunded as of April,1991. Bonds were sold at a discount;unamortized discount at June 30,1992 amounted to$85,675. 11� Bonds were sold at a discount;unamortized discount at June 30,1992 amounted to$58,309. 14 Overlapping Debt 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 31, 1992. TABLE 12 Overlapping Debt to the City of Ames General %of Debt Portion Obligation Allocable Allocable Jurisdiction Debt to the City to the Citv Ames Community Schools S -0- 96.7% $ -0- Gilbert Community Schools 3,095,000 13.3% 410,594 Nevada Community Schools 4,375,000 .2% 9,046 Des Moines Area Community College 31,074,000 5.74% 1,784,877 Total Overlapping Debt $2.204.517 (1) Ames Community Schools has no general obligation long-term debt outstanding. However,it has$5,000,000 outstanding in Anticipatory Warrants. Source: Individual governmental units and the Story County Auditor's office. General Obligation Debt The following table presents annual principal and interest payments for the City's long-term general obligation debt Though all debt presented in Tables 13 and 14 is secured by the full faith, credit and unlimited taxing powers of the City of Ames, some of this debt has been and is expected to be paid from sources other than the tax levy. Table 14 presents a summary of general obligation debt services allocated by the revenue sources that are expected to be used for debt payments. TABLE 13 General Obligation Long-Term Debt Schedule of Annual Maturities February 15,1993 (Including the Bonds) Total Fiscal Outstanding Debt This Issue Principal Year Pnnc,ual Interest Principal Interest(i) &Interest 1993 S 1,465,000 S 374,341 $ 125,000 $ 120,074 $ 2,084,415 1994 1,720,000 659,888 110,000 404,675 2,894,563 1995 1,505,000 563,545 335,000 401,485 2,805,030 1996 1,805,000 476,077 325,000 388,923 2,995,000 1997 1,275,000 371,338 690,000 375,435 2,711,773 1998 1,260,000 299,287 705,000 345,075 2,609,362 1999 875,000 227,462 695,000 312,293 2,109,755 2000 675,000 190,275 710,000 278,585 1,853,860 2001 675,000 152,188 730,000 243,085 1,800,273 2002 675,000 113,750 740,000 205,490 1,734,240 2003 675,000 74,688 755,000 166,640 1,671,328 2004 625,000 36,875 770,000 126,248 1,558,123 2005 - - 370,000 83,897 453,897 2006 - - 365,000 62,993 427,993 2007 - - 360,000 42,005 402,005 2008 - 355,000 20,945 375,945 13 230 000 $3,539,714 $8,140,000 $3,577.848 128,487,562 (1) Interest computed at an estimated rate of 5.39%. 15 TABLE 14 General Obligation Loot-Term Debt By Source of Payments(1) (February 15,1993) Total Fiscal Principal Sewer Tax Levy Year &Interest Revenue Outstandine This Issue 1993 S 2,084,415 S 432,388 S 1,406,953 S 245,074 1994 2,894,563 419,588 1,960,300 514,675 1995 2,805,030 431,687 1,636,858 736,485 1996 2,995,000 416,950 1,864,127 713,923 1997 2,711,773 427,100 1,219,238 1,065,435 1998 2,609,362 435,475 1,123,812 1,050,075 1999 2,109,755 417,050 685,412 1,007,293 2000 1,853,860 423,350 441,925 988,585 2001 1,800,273 427,650 399,538 973,085 2002 1,734,240 429,900 358,850 945,490 2003 1,671,328 430,225 319,463 921,640 2004 1,558,123 428,600 233,275 896,248 2005 453,897 - - 453,897 2006 427,993 - -- 427,993 2007 402,005 - - 402,005 2008 375,945 - -- 375,945 28 487 562 $5,119,963 $11,649,751 11 717 848 (1) Includes this issue. 16 c 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 Outstanding Various Revenue Bonds (February 15, 1"3) Total Fiscal Electric Mary Greeley Sewer Revenue Year Revenue Med Center(1) Utilitv(2) Debt 1993 — S 431,953 S 163,138 S 595,091 1994 $4,526,025 2,257,353 690,525 7,473,903 1995 4,514,050 2,255,411 692,865 4,462,325 1996 4,496,620 2,248,990 693,019 7,438,629 1997 4,363,38p 2,245,643 666,875 7,275,898 1998 4,224,330 2,246,235 688,475 7,159,040 1999 2,064,890 2,245,740 682,006 4,992,636 2000 2,059,960 2,2-M,390 697,425 4,995,775 2001 2,064,760 2,238,842 708,837 5,012,439 2002 2,068,185 1,756,180 692,337 4,516,702 2003 2,066,085 1,746,550 698,062 4,510,697 2004 2,068,460 1,752,150 -0- 3,820,610 2005 2,063,140 1,741,563 -0- 3,804,703 2006 2,061,550 1,744,375 -0- 3,805,924 2007 2,058,030 1,741,563 -0- 3,799,593 2008 2,057,250 962,969 -0- 3,020,219 2009 -0- 955,000 -0- 955,000 2010 -0- 953,906 -0- 953,906 42 756 715 31762 813 7 073 562 81593 090 (1) Hospital revenue bond coverage has averaged 4.45 from 1981 to 1990. (2) Sewer revenue bonds were first issued during the year ended June 30, 1987; since that time the debt service coverage has averaged 3.40. 17 Capital Leases The City has entered into lease agreements for the purchase of equipment. Annual lease payments are presented in Table 16. TABLE 16 Equipment Lease Payments Annual Maturity Schedule (June 30, 1992) Equipment Operations Equipment $172,108 Less accumulated depreciation 63,189 108 919 Contracts payable-year ending June 30: i993 $35,248 1994 33,757 1995 15,913 Total minimum lease payments $84,918 Less amount representing interest at rates ranging from 4%to 1126% 5,703 Present value of net minimum lease payments $79,215 Less current portion 31,562 Long-term contracts payable 47 653 FINANCIAL INFORMATION Cedi,ficate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Ames, Iowa for its comprehensive annual financial report for the fiscal year ended June 30, 1991. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting,a governmental unit must publish an 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. Ames is one of foul municipalities in the State that have received the Award for Outstanding Budget Presentation awarded by the GFOA for the budget years 1986/87 through 1992/93. 18 Financial Administration Major financial management decisions are made based on recommendations from the Finance Director and City Manager, such as adoption of the Annual Operating Budget, the Capital Improvement Program, and other financial matters as they may occur. The Finance Department is responsible for preparation of the annual financial report, all City accounting functions, annual operating budget, centralized purchasing, data processing, treasury and debt management and customer services for 15,000 utility customers. The City has a policy of encouraging the citizens of Ames. Citizen satisfaction surveys are conducted and information furnished to Council for use in establishing policies and guidelines. Financial Statements The City's financial statements are audited annually be an independent certified public accountant. The City maintains its accounting records for general governmental operations on a modified accrual basis. Accounting records for the Enterprise and Internal Service Funds are maintained on the accrual basis. Copies of the Cities audited financial reports for the fiscal years ended June 30, 1986, through June 30, 1992, are available from the City upon request. Excerpts of the City's audited financial report for the year ended June 30, 1992 is included as Appendix B to this Official Statement. Results of Operations Statements of revenues and expenditures of the operating funds and electric funds of the City have been compiled from the City's financial reports. They have been organized in such a manner as to facilitate year to year comparisons. Table 17 presents a statement of revenues and expenditures of the City's General Fund for the fiscal years 1988 through 1992. 19 J TABLE 17 Statement of Revenues,Expenditures &Change in Fund Balance General Fund(1) (Years Ended June 30) 1992 1991 1990 1989 1988 REVENUES Taxes $5,737,163 $ 5,212,050 $ 5,102,038 $5,278,328 $ 4,641,665 Licenses&Permits 449,272 385,133 341,399 347,002 310,157 Intergovernmental Revenue 822,613 847,213 851,796 460,600 743,459 Charges for Services 1,913,507 1,816,827 1,543,922 1,400,702 1,271,266 Fines and Forfeits 104,515 109,506 122,957 130,535 95,217 Use of Monies&Property 383,200 512,943 692,907 726,668 581,609 Other Revenues 9,027 32,975 39,959 54,862 29,103 Total Revenues $9,422,813 $ 8,916,647 $ 8,694,978 $8,398,697 $ 7,672,476 EXPENDITURES Community Protection $5,184,061 $ 4,896,825 $ 4,744,872 $4,308,121 $ 4,198,793 Human Development 3,283,912 3,115,716 2,649,027 2,607,113 2,306,279 Home and Community Environment 1,300,761 1,313,209 1,213,554 1,125,224 1,174,634 Policy and Administration 1,854,012 1,763,068 1,871,864 1,747,285 1,515,028 Debt Service . 9,303 111,928 (2) -- -- Total Expenditures $11432,049 $11,200,746 $10,479,317 $9,787,743 $ 9,194,743 Revenues Over (Under)Expenditures $(2,209,237) $(2,284,099) 1 784 339 849 046 $(1,522,258) Other financing sources(uses): Operating transfers in 2,678,760 2,452,538 2,493,399 2,369,223 2,265,234 Operating transfers out (633,702) (539,948) (625,600) 40( 5,247) (466,825) Total other financing sources(uses) 2,045,058 1,912,590 1,867,799 1,963,976 1,798,409 Excess revenues and other sources over(under) expenditures and other uses (164,179) (3) (371,509) (3) 83,460 574,930 276,151 Fund Balance Beginning of Year 1,822 595 2,194,104 2,110,644 1,645,275 1,369,124 Fund Balance End of Year $1,658,416 LLL 95 LIL94104 L2120 205 1 645 275 (1) The general fund is the general operating fund of the City. It is used to account for all financial resources except those required legally or by sound financial management to be accounted for in another fund. (2) 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. (3) 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 Ames Comprehensive Annual Financial Reports. 20 Budgetary Process The production of the City's annual budget is supervised by the city Budget Officer. The individual city departments each submit a proposed budget. The budgets are reviewed by the City's Budget Analysis Team and returned to the individual departments. In early February, the reviewed budgets are compiled into the Manger's Recommended Budget and submitted to the City Council for review. The City Council approves the proposed budget in March. Table 18 summarized the City's 1990/91,1991/92,and 1992/93 general fund budgets. TABLE 18 General Fund Budgets 1990/91 1991/92 1992/93 REVENUES: Property Tax $ 4,392,741 $ 4,920,487 $ 5,702,115 Other Taxes 42,582 42,167 41,847 Non-Tax Revenues 4,897,194 4,610,863 4,873,817 Total Revenues $ 9,332,517 $ 9,573,517 $10,617,779 Transfers 3,037,208 3,156,753 3,225,344 Total Revenues and Transfers $12,369,725 $12,730,270 $13,843,123 EXPENDITURES Administration $ 1,307,497 $ 1,351,291 $ 1,387,401 Community Protection 5,419,672 5,628,169 6,001,931 Utilities and Physical Environment 320,044 341,714 373,100 Transportation 1,036,261 922,378 968,535 Community Enrichment 2,972,575 3,150,568 3,317,740 Special Reserves and Trusts 196,226 131,401 201,774 Purchasing Services 29,748 31097 33,748 Total Expenditures $11,282,023 $11,557,618 $12,284,229 Transfers 1,489,258 1,579,294 L624,807 Total Expenditures and Transfers $12,771,281 $13,136,912 $13,909,036 Excess(Deficit)of Revenues and Transfers Over(Under) Expenditures and Transfers $ (401,556) $ (406,642) $ (65,913) Beginning Balance 2,087,956 1,722,447 1315,805 Ending Balance $ 1,686,400 $ 1315,805 $ 1,249,892 21 PROPERTY VALUATIONS AND TAXES Property Valuations and Tax Collection Procedures All property subject to taxation is valued in compliance with State 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 Ames,the City assessor conducts all assessments. In the balance of the county,including other municipalities,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 (100%) as of January 1 in a calendar year for taxes payable in the succeeding fiscal year, ie. valuations made in 1991 are for taxes payable in the fiscal year 1993. The actual value of property is provided by the assessor to the County Auditor who then determines the tastable value. 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 State will not exceed 4% annually. For assessments made in 1991, the roll back rate was 79.5% for residential property. For all other classes of property, the taxable value was equal to 100% of actual value. Table 19 outlines the assessments of all property in the City of Ames in the assessment years 1982 through 1991. Table 20 lists the classes of property which comprise the City's 1991 actual value of real property. TABLE 19 Assessment of Valuations of Taxable Property Fiscal Years 1984 through 1993 Taxable Value Assessment Fiscal Actual Excluding Year Year Value(l00%)(1) Taxable Value(2) Ae Land(3) 1982 1983/84 S 788,294,567 $603,168,026 5601,137,781 1983 1984/85 814,084,347 636,962,561 634,998,534 1984 1985/86 825,175,703 668,632,292 666,578,535 1985 1986/87 855,731,738 877,007,836 719,767,337 1986 1987/88 862,699,487 739,696,552 737,543,912 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 1990/91 948,829,214 829,359,995 827,486,589 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 (1) Before deduction of military exemption. �2 After deduction of military exemption. 3 Agricultural land is taxed at a limited rate which does not include debt service. Source: Story County Auditor 22 TABLE 20 Property Values by Category 1991 Assessment, 1993 Fiscal Year Category Actual Value Incremental Value Residential S 661,310,130 -- Ag Land 1,458,696 Ag Building 51,224 -- Commercial 324,474,806 $2,670,268 Industrial 22,274,965 -- Personal Property Real 18,411,229 337,986 Utilities 12,019,107 Gross Valuation $1,040,000,157 $3,008,254 Less: Military Exemption 3,634,084 Net Valuation 51,036,366,073 $3,008,254 Source: Story County Auditor Property Tax Levies and Collections Taxes are collected in the fiscal year that begins during the calendar year following the assessment Taxes are levied on July 1 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 installment and March 31st for the second installment The County Treasurer levies a 5% penalty on delinquent taxes each June. In addition,the state has a 1%per month levy, total penalties not to exceed 48%. Table 21 outlines tax levies,tax rates and tax collections for the City of Ames. TABLE 21 Tax Levies and Collections in the City of Ames Percent Deliment Collections Total Current Tax of Levy Tax Total Tax as Percent of Year Tax Levy Collections Collected Collections Collections Current Levy 1980-81 $4,607,862 4,560,656 98.98% S 76,369 4,637,025 100.63% 1981-82 4,936,813 4,887,981 99.01 71,125 4,959,106 100.45 1982-83 5,936,717 5,880,243 99.05 137,526 6,017,769 101.37 1983-84 5,888,570 5,766,398 97.93 155,319 5,921,717 100.56 1984-85 6,381,011 6,248,168 97.92 94,457 6,342,625 99.40 1985-86 6,885,538 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 7,153,811 7,136,914 99.76 97,794 7,234,708 101.13 1990-91 7,127,076 7,108,251 99.66 49,567 7,157,818 100.35 1991-92 7,798,801 7,739,101 99.23 110,101 7,849,202 100.64 1992-93 7,903,595 In process of collection ----_------------------------ 23 Tares Per$1,000 of Taxable Value Table 22 shows the tax rates per S1,000 of taxable value for the City of Ames and all overlapping governments in the fiscal years 1984 through 1993. TABLE 22 Property Tax Rates All Overiapping Governments Last Ten Fiscal Years School County Area Year City District Consolidated Vocational Total 1983-84 9.75458 12.00533 4.07145 .43997 26.27133 1984-85 10.01123 11.85031 3.58127 .43844 25.88125 1985-86 10.29212 11.89550 4.28578 .43787 26.91127 1986-87 10.13828 11.88138 4.29594 .44922 26.76482 1987-88 8.58331 11.33809 5.43430 .47634 25.83204 1988-89 9.00877 11.22544 4.47491 .47026 25.17938 1989-90 8.96878 12.13898 5.42520 .46596 26.99892 1990-91 8.75761 12.08846 5.37674 .48386 26.70667 1991-92 9.21143 12.64226 4.79580 .47669 27.12618 1992-93 9.21143 12.82187 6.67618 .50664 29.21612 Source: City of Ames 1992 Comprehensive Annual Financial Report. Table 23 presents the City's tax rate by operating fund for the fiscal years 1984 through 1993. TABLE 23 Tax Rate Comparison By Operating Funds Collective 1984-1993 Collection Debt Year General Service Other Total 1983/84 5.53561 2.15847 2.06050 9.75458 1984/85 6.27732 2.28272 1.45119 10.01123 1985/86 6.27755 2.64266 1.37191 10.29212 1986/87 6.12500 2.75324 1.26004 10.13828 1987/88 4.81453(1) 2.45490 1.30929 8.57872 1988189 4.37640 3.52853 1.08094 8.98587 1989/90 4.91807 2.77298 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 (1) The General Fund Tax Rate was reduced due to the inception of a local option sales tax of 1%. Source: 1992/93 City of Ames Program Budget. 24 Levy Limits State law limits the maximum tax rate for the General Fund to $8.10 per thousand dollars of assessed valuation(100%basis). This limitation does not include debt service and pension requirements. Principal Taxpayers A list of the ten taxpayers in the City with the highest taxable valuations on the 1991 assessment is presented in Table 24. TABLE 24 Principal Taxpayers (As of January 1. 1993) %of Taxable Taxable Taxpayer Valuation Valuation General Growth Properties S17,112,600 1.9% Sunstrand 13,437,818 1.5% Minnesota Mining and Manufacturing 11,343,137 1.3% Grand Center,Ltd. 7,371,393 0.8% Individual 6,962,182 0.8% R.Friedrich and Sons,Inc. 6,608,605 0.7% Westbrook Limited Partnership 6,356,737 0.7% U.S.West 5,988,787 0.6% . Mortenson I Limited Partnership 5,812,200 0.6% Individual 5,782,489 0.6% Source: Story County Auditor Local Option Sales Tax Ames citizens approved a one percent local option sales tax at a special election held November 4, 1986, which became effective on January 1, 1987. The tax generates in revenues approximately $2.4 million annually, 60%of the proceeds are used for property tax relief and 40%for community betterment. Receipts for the year ended June 30,1991 totaled$2,639,723 and$2,960,528 for the fiscal year ending June 30, 1992. 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 time;withdrawal of a rating may have an adverse effect on the marketability of the Bonds. For an explanation of the significance of the rating, an investor should communicate with the rating agency. The City last issued general obligation bonds on June 1, 1992. The outstanding general obligation bonds of the City are currently rated "Aal"by Moody's and "AA"by Standard &Poor's. Federal Tax Considerations The opinion of Bond Counsel will state that under present laws and rulings,interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations under the Internal Revenue Code of 1986(the"Cade"); it should be noted,however,that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes),such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the City comply with all requirements of 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 gross income for 25 federal income tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. In the resolution authorizing the issuance of the Bonds, the City will covenant to comply with all such requirements. There may be certain other federal tax consequences to the ownership of the Bonds by certain taxpayers, including without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred(or continued)indebtedness to purchase or carry tax-exempt obligations. Bond Counsel expresses no opinion with respect to such other federal tax consequences to owners of the Bonds. Prospective purchasers of the Bonds should consult with their tax advisors as to such matters. Not Qualified Tax-Exempt Obligations In the opinion of Bond Counsel,the Bonds are not eligible for designation,and the City will not designate the Bonds as "Qualified Tax-Exempt Obligations" for purposes of Section 265 of the Internal Revenue Code of 1986 relating to the ability of certain financial institutions to deduct from income for federal income tax purposes,eighty percent of that portion of such financial institutions'Interest expense allocable to interest on the Bonds. Closing Documents Simultaneously with the delivery of and payment for the Bonds by the original purchasers thereof,the City will furnish to the original purchasers the customary closing documents in form satisfactory to bond counsel Cedi iication The City will furnish a statement to the effect that this Official Statement, to the best of its knowledge and belief as of the date of sale and the date of delivery, is true and correct in all material respects and does not contain any untrue statement 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. Legal Matters Legal 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 tax 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. No Litigation There is no litigatiotr now pending or, to the knowledge of City officials, threatened which questions the validity of the Bonds or of any proceedings of the City taken with respect to the issuance or sale thereof. It is the opinion of the City's Attorney,based upon the past experience of the payment of claims and judgment amounts, that there are presently no outstanding claims, litigation, impending litigation or contingent liabilities which would exceed the funds accumulated for this purpose and funds currently appropriated by the City Council for these purposes,and that outstanding claims and suits would not materially affect the financial position of the City as of the date of this Official Statement. 26 MISCELLANEOUS Any statements made in this Official Statement involving matters of opinion or of estimates,whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The execution and delivery of this Official Statement by its City Clerk has been duly authorized by the City. CITY OF AMES,IOWA By: Is/ Sandra L.Ryan City Clerk 27 (This page has been left blank intentionally.) APPENDIX A Notice of Sale NOTICE OF SALE OF BONDS Sealed bids will be received on behalf of the City of Ames,Story County,Iowa until 11:00 o'clock AM. on the 9th day of February, 1993 at the offices of the City Clerk, 515 Clark Avenue, Ames, Iowa 50010, for the purchase of$8,140,000(1)General Obligation Refunding Bonds,Series 1993,of the City,at which bids will be opened and canvassed. Thereafter such bids will be presented to the City Council for consideration at its meeting to be held at 7:00 o'clock p.m.on the same date at the Council Chambers,Ames,Iowa,at which time the Bonds will be sold 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 February 15, 1993, will bear interest payable semiannually on each December 1 and June 1 to maturity,commencing June 1, 1993,and will mature on June 1 in the following years and amounts: Year Amount Year Amount 1993 $125,000 2001 $730,000 1994 110,000 2002 740,000 1995 335,000 2003 755,000 1996 325,000 2004 770,000 1997 690,000 2005 370,000 1998 705,000 2006 365,000 1999 695,000 2007 360,000 2000 710,000 2008 355,000 The right is reserved to the City to call and redeem all of the said Bonds maturing in the years 2001 to 2008, 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),upon terms of par and accrued interest on June 1,2000,or on any date thereafter. Bidders should specify the rate or rates of interest and amount of premium 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 City. No bid calling for a discount of greater than 0.9%will be accepted. There is no limit on the number 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 a multiple of 1/8 or 1/20 of 1%. No rate bid on any given maturity may exceed the rate bid on a subsequent maturity. A Good Faith Deposit("Deposit")in the form of a certified or a cashier's check or a Financial Surety Bond in the amount of$81,400,payable to the order of the City,is required for each bid to be considered. If a check is used,it must accompany each bid. If a Financial Surety Bond is used,it must be from an insurance company licensed to issue such a bond in the State of Iowa, and such bond must be submitted to the Issuer or its Financial Advisor prior to the 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 a bidder utilizing a Financial Surety Bond,then 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 than 3:30 P.M., Central Time on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may 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. (1) The City reserves the right to increase or decrease the par amount of the bonds by an amount not to exceed $360,000 in total or $50,000 per maturity for the 1993 and 1994 maturities; S200,000 per maturity for the 1995 and 1996 maturities;and$70,000 per maturity for the 1997-2008 maturities. The City reserves the right to reject any or all bids and to waive irregularities in any bid. 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$5,000 and integral multiples thereof. Purchasers will not receive certificates representing their interest in the Bonds purchased. Principal and interest will be paid to DTC,which will in turn remit such principal and interest to its participants,for subsequent disbursement to the beneficial owners of the Bonds. The Bonds will be delivered to DTC in New York within 40 days after the sale against full payment in immediately available funds. The approving opinion of Dorsey&Whitney,Attorneys,Des Moines,Iowa,will be furnished by the City. The City will assume no obligation for the assignment of CUSIP numbers on the Bonds,or for the correctness of any numbers printed thereon,but will permit such printing to be done at the expense of the purchaser if the purchaser waives any extension of the time of delivery caused thereby. The purchaser will be required to provide certain information relating to the initial offering prices and sales of the Bonds necessary to complete the Internal Revenue Service reporting forms prior to closing. The City Treasurer will act as Registrar and Paying Agent for the Bonds. The Bonds are being issued pursuant to Chapter 384 of the Code of Iowa and will constitute general obligations of the City,payable from taxes levied upon all the taxable property in the City without limitation as to rate or amount. By order of the Council of Ames,Iowa. /s/ Sandra L Ryan City Clerk (This page has been left blank intentionally.) 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M v1 �p O� € H U•C R c� O 0 9 � � O -- t U� N u O Ru Z$ _ '•• y yC� pp p' p N N 9 C n V•; u e C '`•^ C QD O w 0 R � � M M y� R o u Ee u o•., 6q H v=Ni R R u ,. t.Ee'v � Ed d - LL,.Q�C •fl Q v D pCp _N �i .ya•� o R$ •vr � � � � E p�'0"uu vc iu 3 Emu A E lu ua V? E D E 3 c, dE c C N? u = E i w U •v is�D\ �^ = u -- " �N IL a tL � � E B u u M N a � 2•E �r y:? o�, a� y e � A p I I U m qu mu:Cu NU LE.'C � u N � u •C p e � u at s d R c u 93 C7 W e K I I ll,t E $j O > > u NN s,�." OU R s C U ., � w � c CUyN3T� �l YG !�•aur'. 'v u e'LR � u� O N u Q U u[i. C u eC� pp i` •� = 0.� t0 U � � o .,� ,� pr ..� OO R E N F C C �o.5ouo Ad U ,°uci7DcyvVr u o � � �L ° id E •v t >,u a•^ a�•= � �•�� E•E �y �_ A 06. cua._.. ` uDo s.a � EuoB ua9'C c o�oavN-,�o °( =L u4p c O O E$$ p n"'IC 000oo c°it� O vi C O N e{ �W A O ...^..�.�� G$ 3 O _ _ A $ a N w > DLU ODA L�` uULU OuOau in Z'U �pL 6Ci 30 OUAt N ut vyN007- �$ =� ueu cl G u > > .. u 4 a -uuu E y� u c oro u u CZ C e� � O� u E ¢� a �'ea�. O >, c'd eo u Y�E+ E aciri�Qnpot�oo N u N erpnpavQ�poc� y= u0_�O�O�O�� U r-'9 Q 04 u E R L, � Ui°4c—. aEi t � y 0 �•� C � v, m3� urn. l0 H u y e u u m �o u u m3 `���'ht APPENDIX C Form of Legal Opinion DOF2SEY & WHITNEY A P.ErxEEa av Ixaaurxo PEorsEEIOMLL Covrounoxs DES MOINES RESIDENT PARTNERS 801 GRAND, SUITE 3900 MINNEAPOLIS,MINNESOTA DES MOINES, IOWA 50309 NEW YORE,NEW YORE ROBERT H. HELMICK (515) 283-1000 WASHINGTON, D.C. DAVID L.CLAYPOOL FAX (515) 283-1060 DES MOINES, IOWA ROBERT E.JOSTEN ROCHESTER,MINNESOTA EDWIN N.McINTOSH BILLINGS,MONTANA NORENE D.JACOBS GREAT FALLS,MONTANA LINDA L.ENIEP MlssoULA,MoxTANA LONDON, ENGLAND BRUSSELS,BELGIUM PARIS,FRANCE We hereby certify that we have examined a certified copy of the proceedings of the City Council of the City of Ames, in the County of Story, State of Iowa (the "Issuer"), passed preliminary to the issue by the Issuer of its General Obligation Refunding Bonds (the 'Bonds") in the amount of $ , dated February 15 1993, in the denomination of $5,000 each, or any integral multiple thereof, maturing on June 1 in each of the respective years and in the principal amounts and bearing interest payable semiannually, commencing June 1, 1993, at the respective rates, as follows: Principal Interest Rate Principal Interest Rate Year Amount Per Annum Year Amount Per Annum 1993 $125,000 2001 $730,000 1994 110,000 2002 740,000 1995 335,000 2003 755,000 1996 125,000 2004 770,000 1997 690,000 2005 370,000 1998 705,000 2006 365,000 1999 695,000 2007 360,000 2000 710,000 2008 355,000 but the Bonds maturing in each of the years 2001 to 2008, inclusive, are subject to redemption prior to maturity at the times and on the terms specified in the Bonds. Based upon our examination, we are of the opinion, as of the date hereof, that: 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 Issuer. 3. All 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 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 Page 2 alternative minimum tax imposed on individuals and corporations; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code 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 gross income for federal income tax purposes. The Issuer has covenanted 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 income tax purposes to be retroactive to the date of issuance of the Bonds. 5. The 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 meaning of Section 265(b)(5) of the Code), a deduction is not allowed for that 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 rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, and their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. DORSEY & WHITNEY (This page has been left blank intentionally.) WORKSHEET $8,140,000 General Obligation Refunding Bonds,Series 1993 City of Ames,Story County, Iowa DATED 2/15/93 DUE STARTING 6/1/93 YEAR AMOUNT RUN BOND YEARS CUMULATIVE COUPON YEAR 01—Jun-93 $125,000 029 36" 36AM 01—Jun-93 01—Jun-94 $110,000 129 142399 179.194 01—Jun-94 01—Jun-95 $335,000 229 768.639 947.933 01—Jun-95 01—Jun-96 $325,000 329 1,070.694 2,019528 01—Jun-96 01—Jun-97 $690,000 429 2,963.167 4,981.694 01—Jun-97 01—Jun-98 $705,000 529 3,732583 8,714278 01—Jun-98 01—Jun-99 $695,000 629 4,374.639 13,098.917 01—Jun-99 01—Jun-2000 $710,000 729 5,179.056 18,267.972 01—Jun-2000 01—Jun-2001 $730,000 829 6,054.944 24,322.917 01—Jun—2001 01—Jun-2002 $740,000 929 6,877.989 31,200.806 01—Jun-2002 01—Jun-2003 $755,000 1029 7,772" 38,973.111 01—Jun-2003 01—Jun-2004 $770,000 1129 8,696.722 47,669S33 01—Jun-2004 01—Jun-2005 $370,000 1229 4,5U.944 52,219.778 01—Jun—2005 01—Jun-2006 $365,000 1329 4,852.472 57,071250 01—Jun-2006 01—Jun-2007 $360,000 1429 5,146.000 62,217250 01—Jun-2007 01—Jun-2008 $355,000 1529 5,429.5 67,646.779 01—Jun-2008 140 000 67,646.778 AVERAGE MATURITY: 8.31 PRICE: NOT LESS THAN$8,066,740 INTEREST RATES: RATES ARE TO BE IN INTEGRAL MULTIPLES OF 1/20 OR 1/8 OF 1%,IN ASCENDING ORDER,ONE RATE PER AMTURTTY. CALL FEATURE: BONDS MATURING ON JUNE 1,2001 AND THEREAFTER ARE SUBJECT TO REDEMPTION PRIOR TO MATURITY ON JUNE 1,2000 AND ANY DATE T iEREAFTER AT A PRICE OF PAR PLUS ACCRUED INTEREST OFFICIAL BID FORM Members of the City Council Sale Date: February 9, 1993 City of Ames,Iowa For the principal amount of S8,140,000' General Obligation Refunding Bonds, Series 1993 of the City of Ames, Iowa, legally issued and as described in the Notice of Sale of Bonds, we will pay the City $ (not less than S8,066,740) plus accrued interest on the total principal of S8,140,000' to date of delivery,provided the Bonds bear the following interest rates: Interest Interest Year Amount MA Year Amount Rate 1993 $125,000 % 2001 $730,000 % 1994 110,000 % 2002 740,000 % 1995 335,000 % 2003 755,000 % 1996 325,000 % 2004 770,000 % 1997 690,000 % 2005 370,000 % 1998 705,000 % 2006 365,000 % 1999 695,000 % 2007 360,000 % 2000 710,000 % 2008 355,000 % The Bonds mature on June 1,in each of the years as indicated above and interest is payable June 1, 1993,and semiannually thereafter on December 1 and June 1 of each year. In making this offer, we accept the terms and conditions as defined in the Notice of Sale published in the Official Statement dated February 2, 1993. All blank spaces of this offer are intentional and are not to be construed as an omission. NOT PART OF THE BID Respectfully submitted, Explanatory Note: According to our computation,this bid involves the following. Account Manager S By Net Interest Coat (A list of account members is on the reverse side % of this proposal.) Net Interest Rate The foregoing offer is hereby accepted by and on behalf of the City of Ames,Iowa, this 9th day of February, 1993. (Title) (Title) • Subject to Change. OFFICIAL BID FORM Members of the City Council Sale Date: February 9, 1993 City of Ames,Iowa For the principal amount of S8,140,000' General Obligation Refunding Bonds, Series 1993 of the City of Ames, Iowa, legally issued and as described in the Notice of Sale of Bonds, we will pay the City S (not less than $8,066,740) plus accrued interest on the total principal of $8,140 000' to date of delivery,provided the Bonds bear the following interest rates: Interest Interest Year Amount Rate Year Amount Rate 1993 $125,000 % 2001 $730,000 % 1994 110,000 % 2002 740,000 % 1995 335,000 % 2003 755,000 % 1996 325,000 % 2004 770,000 % 1997 690,000 % 2005 370,000 % 1998 705,000 % 2006 365,000 % 1999 695,000 % 2007 360,000 % 2000 710,000 % 2008 355,000 % The Bonds mature on June 1,in each of the years as indicated above and interest is payable June 1, 1993,and semiannually thereafter on December 1 and June 1 of each year. In making this offer, we accept the terms and conditions as defined in the Notice of Sale published in the Official Statement dated February 2, 1993. All blank spaces of this offer are intentional and are not to be construed as an omission. NOT PART OF THE BID Respectfully submitted, Explanatory Note: According to our computation,this bid involves the following. Account Manager $ By Net Interest Cost (A list of account members is on the reverse side % of this proposal) Net Interest Rate The foregoing offer is hereby accepted by and on behalf of the City of Ames, Iowa, this 9th day of February, 1993. (Title) (Title) ' Subject to Change. OFFICIAL BID FORM Members of the City Council Sale Date: February 9, 1993 City of Ames,Iowa For the principal amount of S8,140,000' General Obligation Refunding Bonds, Series 1993 of the City of Ames, Iowa, legally issued and as described in the Notice of Sale of Bonds, we will pay the City ess $ (not l than S8,066,740) plus accrued interest on the total principal of S8,140,000' to date of delivery,provided the Bonds bear the following interest rates: Interest Interest Year nt Rate Year Amount Rate 1993 $125,000 % 2001 $730,000 % 1994 110,000 % 2002 740,000 % 1995 335,000 % 2003 755,000 % 1996 325,000 % 2004 770,000 % 1997 690,000 % 2005 370,000 % 1998 705,000 % 2006 365,000 % 1999 695,000 % 2007 360,000 % 2000 710,000 % 2008 355,000 % The Bonds mature on June 1,in each of the years as indicated above and interest is payable June 1, 1993,and semiannually thereafter on December 1 and June 1 of each year. In making this offer, we accept the terms and conditions as defined in the Notice of Sale published in the Official Statement dated February 2, 1993. All blank spaces of this offer are intentional and are not to be construed as an omission. NOT PART OF THE BID Respectfully submitted, Explanatory Note: According to our computation,this bid involves the following: Account Manager S By Net Interest Cost (A list of account members is on the reverse side % of this proposal.) Net Interest Rate The foregoing offer is hereby accepted by and on behalf of the City of Ames,Iowa, this 9th day of February, 1993. (Title) (Title) ' Subject to Change.