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HomeMy WebLinkAboutA017 - Certification of City of Ames dated October 25, 1994Ames/419370-14/FDC & Ur 419370-14 FDC - G.O. We, the undersigned Mayor, City Clerk and City Treasurer, of the City of Ames, in Story County, Iowa (the "City"), do hereby certify that we are now and were at the time of the execution of the City's $2,015,000 General Obligation Corporate Purpose Bonds, Series 1994B, dated October 1, 1994 (the "Bonds"), the officers respectively above indicated; and that in pursuance of Chapter 384 of the Code of Iowa and a resolution adopted by the City Council on September 27, 1994 (the "Resolution"), the Bonds have been heretofore lawfully authorized, sold and delivered to the purchaser thereof (the "Purchaser"), and the Purchaser has paid the City the amount of $2,005,908.67, receipt of which is hereby acknowledged, which amount represents the principal amount of the Bonds ($2,015,000), minus underwriter's discount ($15,717), plus accrued interest ($6,625.67). The Bonds mature on June 1 in each of the years, in the respective principal amounts and bear interest payable semiannually, commencing June 1, 1995, at the respective rates, as follows: Principal Interest Rate Principal Interest Rate Year Amount Per Annum Year Amount Per Annum 1995 $170,000 4% 2001 $170,000 5.10% 1996 $170,000 4.25% 2002 $165,000 5.20% 1997 $170,000 4.50% 2003 $165,000 5.30% 1998 $170,000 4.75% 2004 $165,000 5.40% 1999 $170,000 4.85% 2005 $165,000 5.40% 2000 $170,000 5% 2006 $165,000 5.50% Each of the Bonds has been executed with the facsimile signatures of the aforesaid officers, with a facsimile of the official seal of the City imprinted thereon; and the Bonds have been fully registered as to principal and interest in the names of the owners on the registration books of the City maintained by the aforesaid City Treasurer as Registrar and Paying Agent. We further certify that the Bonds are being issued for the purpose of defraying the cost of the construction of works and facilities useful for the collection and disposal of sewage and industrial wastes in a sanitary manner and of surface waters and streams; the construction, reconstruction and repair of street improvements; and the acquisition, construction and equipping of works and facilities useful for the collection and disposal of solid waste (the "Projects"). -1- DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA Ames/419370-14/FDC & Ltr We further certify that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City, or the titles of the aforesaid officers to their respective positions, or the validity of the Bonds, or the power and duty of the City to provide and apply adequate taxes for the full and prompt payment of the principal of and interest on the Bonds, and that none of the proceedings incident to the authorization and issuance of the Bonds has been repealed or rescinded. We further certify that no appeal of the decision of the City Council to issue the Bonds has been taken to the district court. We further certify that all meetings held in connection with the Bonds were open to the public at a place reasonably accessible to the public and that notice was given at least 24 hours prior to the commencement of all meetings by advising the news media who requested notice of the time, date, place and the tentative agenda and by posting such notice and agenda at the City Hall or principal office of the City on a bulletin board or other prominent place which is easily accessible to the public and is the place designated for the purpose of posting notices of meetings. We further certify as follows: 1. The Total Project Costs to be paid with the proceeds of the Bonds are estimated to be as follows: Solid Waste Facility Improvements $ 110,000 Street Improvements $1,465,000 Sanitary Sewer, Storm Sewer and Grading Improvements $ 393,000 Qualified Administrative Costs: Underwriter's discount $ 15,717 Other Costs of Issuance $-31..,283 Total: $2,015,000 2. The net sales proceeds of the Bonds are $2,012,252.75 (the "Net Sales Proceeds"), the same being the Issue Price thereof. -2- DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA Ames/419370-14/FDC & Ur 3. The Net Sales Proceeds, including investment earnings thereon, will be invested by the City without restriction as to yield for a period not to exceed three years from the date hereof (the "Three Year Temporary Period"), the following three tests being reasonably expected to be satisfied by the City: a. Time Test: The City has entered or, within six months of the date hereof, will enter into binding contracts for the Projects with third parties (e.g. engineers or contractors); W which are not subject to contingencies directly or indirectly within the City's control; (ii) which provide for the payment by the City to such third parties of an amount equal to at least the lesser of $100,000 or 5% of the Net Sales Proceeds; b. Expenditure Test: At least 85% of Net Sales Proceeds will be applied to the payment of Total Project Costs within the Three Year Temporary Period; and C. Due Diligence Test: Acquisition and construction of the Projects to completion and application of the Net Sales Proceeds to the payment of Total Project Costs will proceed with due diligence. 4. The Bonds are payable from ad valorem taxes levied against all taxable property within the City which will be collected in a Debt Service Fund and applied to the payment of interest on the Bonds on each June 1 and December I and principal of the Bonds on each June 1 (the 12-month period ending on each June 1 being herein referred to as a "Bond Year"); the Debt Service Fund is used primarily to achieve a proper matching of taxes with principal and interest payments within each Bond Year; the Debt Service Fund will be depleted at least once each Bond Year except for a reasonable carryover amount not to exceed the greater of (i) the earnings on the fund for the immediately preceding Bond Year; or (ii) 1/12 of the principal and interest payments on the Bonds for the immediately preceding Bond Year; amounts on deposit in the Debt Service Fund will be invested by the City without restriction as to yield for a period of 13 months after their date of deposit. -3- DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA Ames/419370-14/FDC & Ltr 5. The City Council has adopted resolutions declaring its official intent to acquire and construct the Projects and finance the same with the Bonds (the "Intent Resolutions"); none of the Total Project Costs to be paid for from the Net Sales Proceeds are for expenditures made for a Project more than 60 days prior to the date of adoption of the Intent Resolution with respect to that Project, except for (i) costs of issuance of the Bonds; (ii) costs aggregating an amount not in excess of the lesser of $100,000 or 5% of the Net Sales Proceeds; (iii) costs for preliminary expenditures (including architectural, engineering, surveying, soil testing, and similar costs incurred prior to commencement of acquisition or construction of the Projects, other than land acquisition, site preparation and similar costs) not in excess of 20% of the Issue Price of the Bonds; the City will allocate Net Sales Proceeds to reimbursement of such expenditures no later than 18 months after the later of (i) the date any such expenditure was originally paid or 00 the date the Projects are placed in service, but in no event more than 3 years after such expenditure was originally paid; and such allocations will be made by the City in writing. 6. Not more than 50% of the Net Sales Proceeds will be invested in nonpurpose investments (as defined in Section 148(f)(6)(A) of the Internal Revenue Code of 1986, as amended (the "Code")) having a substantially guaranteed yield for four years or more (e.g., a four-year guaranteed investment contract or a Treasury Obligation that does not mature for four years). 7. The weighted average maturity of the Bonds (11.667 years) does not exceed the reasonably expected economic life of the Projects (20 years). 8. The amount received as accrued interest ($6,625.67) will be set aside and deposited into the City's Debt Service Fund as provided in the Resolution and used to pay interest on the Bonds due on the first payment date. 9. To our best knowledge and belief, there are no facts, estimates or circumstances which would materially change the foregoing conclusions. On the basis of the foregoing, it is not expected that the Net Sales Proceeds will be used in a manner that would cause the Bonds to be "arbitrage bonds" under Section 148 of the Code and the regulations prescribed under that section. The City has not been notified of any listing or proposed listing of it by the Internal Revenue Service as a bond issuer whose arbitrage certifications may not be relied upon. -4- DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA Ames/419370-14/FDC & Ltr We further certify that the Purchaser has advised the City that the reasonably expected reoffering price of the Bonds to the public is $2,012,252.75. We further certify that the City does not currently have outstanding tax exempt obligations issued during the current calendar year, including the Bonds, equal to or in excess of $10,000,000, nor will the City issue additional tax exempt obligations during the current calendar year which, when added to the City's current tax exempt obligations issued during the current calendar year, including the Bonds, would be equal to or in excess of $10,000,000. We further certify that due provision has been made for the collection of taxes sufficient to pay the principal of and interest on the Bonds when due. All payments coming due before the collection of any such taxes will be paid promptly when due from legally available funds. We further certify that the present financial condition of the City is as follows: Actual (100%) value of taxable property within the City, except moneys and credits, as entered on the 1993 State and County tax lists $1,212,551,474 Taxable value (after rollback) of all taxable property within the City, except moneys and credits, as entered on the 1993 State and County tax lists $ 957,821,286 Tax increment value $ 3,693,680 Total bonded indebtedness payable from taxes, including the Bonds $ 23,545,000 All other indebtedness of any kind $ -0- -5- DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA a Ames/419370-14/FDC & Ltr IN WITNESS WHEREOF, we have hereunto affixed our hands and the seal of the aforementioned City, as of October 25, 1994. Attest: City Clerk (Seal) CITY OF A IOWA By Mayor -6- DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA