HomeMy WebLinkAboutA010 - PreSale AnalysisR1611 EVENSEN DODGE INC
March 13, 1995
Mr. Steven Schainker, City Manager
Ms. Alice Carroll, Finance Director
City of Ames
515 Clark Avenue
Ames, IA 50010
RE: $10,035,000 General Obligation Corporate Purpose Bonds, Series 1995
City of Ames, Iowa
Dear Mr. Schainker and Ms. Carroll:
Attached is our Presale Analysis prepared in connection with the City's issuance of
$10,035,000 General Obligation Corporate Purpose Bonds, Series 1995 proposed for sale
on April 11, 1995.
The Presale Analysis summarizes the purpose of this issue, describes how the Bonds have
been structured and discusses other aspects related to the marketing of the Bonds. We
will prepare a Postsale Analysis reporting and analyzing the results of the sale after the
Bonds have been sold.
We look forward to a successful offering.
Sincerely,
EVENSEN DODGE, INC.
Wayne S. Burggraaff
Senior Vice President
WHO
Enclosure
David M. Dirks
Senior Vice President
001 Se( on d Avenue '�ou Ih, Sui I(, I-) 100, Minnc,yohs, MN i-3AO7
0 12/ 1 48 V3 S') 800M(8 (8200 1AX 012M8-7204
Page
Purpose0fthe Sale ...........................................................................................................
Y
Proposed Terms and Conditions nfSale
.......................................................................... 3
PreliminaryDebt Schedule .............................................................................
................ 4
Bidding Requirements _____---_------------------------..11
Rating...............................................................................................................................
I1
Federal Tax Considerations ---_-.—~_--..-------------------''}2
Official Statement Disclosure ............ .............................................................................
4
GeneralMarket Conditions ......................................................................
....................... 5
Proposed Financing Timetable ........................................................................................
}7
List of Participants _____________----------------------.]8
This Presale Analysis presents background information for the City's use in
considering the issuance of $10,035,000 General Obligation Corporate Purpose
Bonds, Series 1995 at a public sale on April 11, 1995. The Bonds will be issued for
the purpose of financing the construction, reconstruction and repair of street
improvements; the construction of a water project; the construction of storm sewer
improvements; the construction of solid waste facility improvements; and the
purchase of a fire truck. A schedule presenting the estimated sources and uses of
funds for the Bonds follows.
ESTIMATED SOURCES: Amount
Bond Proceeds $10,035000
ESTIMATED USES:
Project Costs:
Solid Waste Improvements
$7,048,000
Street Improvements
1,170,519
Storm Sewer Improvements
510,000
Water Project
920,000
Fire Truck
190,000
Costs of Issuance
96,131
Underwriter's Discount
Total Estimated Uses
A schedule allocating the bond proceeds is presented on the following page.
REVENSEN DODGE INC Page 1
371087
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Principal Amount of Issue:
$10,035,000
Dated Date of Bonds:
May 1, 1995
Proposed Sale Date:
April 11, 1995
Type of Sale:
Competitive
First Interest Payment:
December 1, 1995
Maturity Date and Amounts:
June I as follows:
1996
$715,000
2004
$720,000
1997
715,000
2005
720,000
1998
715,000
2006
720,000
1999
715,000
2007
720,000
2000
715,000
2008
480,000
2001
715,000
2009
475,000
2002
715,000
2010
475,000
2003
720,000
Call Feature: Bonds maturing on June 1, 2004 and
thereafter are subject to redemption
prior to maturity on June 1, 2003 and
on any date thereafter at a price of par
plus accrued interest.
Qualified Tax -Exempt
Obligation: Not Bank Qualified.
Security: General Obligation.
Authorization: Division III of Chapter 384 of the
Code of Iowa.
mEVENSEN DODGE INC Page 3
371087
j
I I
0
PRELIMINARY DEBT SCHEDULE
The Bonds will be general obligations of the City. It is expected that $520,185 of
special assessment revenue will be available, though not pledged, for the payment of
a portion of the debt service on the Bonds.
The following schedules present principal and interest payments for the Bonds. The
rates used for these schedules are estimates of the rates the City might receive if the
Bonds were sold today. The actual rates, however, will vary depending upon the tax
exempt market on the day the Bonds are sold.
NNEVENSEN DODGE INC Page 4
371087
$10,035,000 G.O. Corporate purpose Bonds, Series 1995
m193.795 Fire Truck Portion of the Bonds
City of Ames, Iowa-preLiminary
============
oseT ssnvIcc moxcouLs
============
oxTc
-------- --------------
pn|wC/wu
cmUPow
zwrcxssT
PEn/ou TOTAL
FzacxL TOTAL
12Y
1/95
---------- --------------
--------------
5,996,19
5,996.19
_______
u/
1/96
16.150'00
4.700000
5,139.60
21,289'60
27'285.79
12y
1/96
4,760-07
4,760.07
6/
1/97
16,150.00
4.900000
4,760.07
20,910'07
25,670.14
12/
1/*7
4,364.40
4,364'40
6/
1/98
16,150.00
5.000000
4,364.40
20,514.40
24,878.79
12/
1/98
3,960.e5
3,*60.65
ev
1/99
16,150.00
5.100000
3,960.6e
20,110.65
74.071.29
12;
1/99
3,548'82
3'548.82
a/
1/ o
16,150'00
5.200000
3,548.82
19,698.82
23,247.64
12/
1/0
3,128,92
3,128.92
8/
1/ 1
16,150'00
5-300000
3,128.92
19,278.92
22,407.84
12Y
1/ 1
2,�w.vs
2700.95
*/
1/ Z
16.150.00
5.350000
2,700'*5
18.850'95
21,551.89
12/
1/ 2
2,268.93
2,268.99
6/
1/ 3
16,14*.00
5.450000
2,268.93
18,417,93
20,686.8*
12/
1/ 3
1,828'87
1,828.47
o/
V 4
16,149.00
5'550000
1,e28.87
17,977.87
19'806.74
1E1
1/ 4
1,380.74
1,380.74
6/
1/ 5
16,149.00
5.600000
1,380.74
17'529.74
18,910.47
121
1/ 5
928.57
928'57
6/
1/ 6
16'149.00
5.700000
928.57
17,077.57
18'006.13
12/
1/6
468.32
468.32
a/
1/ r
_______
16,149.00
5.aonVOo
___—___
468.32
--------------
16,617.32
17,�e.64
199.795'00
69,814.az
� 3,609.22
ACCRUED
Dated 5/ 1/95 with Detivery of 5/ 1/95
Bond Years 1,275.800
Average coupon 5.472193
Average Life 6.583243
w z c % 5.624094 % Using 99.0000000
RUNDxs: 03'09'1995 a 09`26:25 FILENAME: xMEs KEY: 95p
$10,035uoO G.O. Corporate Purpose Bonds, series 1995
$520'185 Storm Sewer Improvements portion
City of Ames, Iowa -Preliminary
===========
usnT msxvrcs mcnsnuLe
============
oxTs
-----------
px/wcImu
cnupow
Iwrsnesr
nmIoo TOTAL
pzmcAL TOTAL
lZ/
1/95
------------
-------
16,095.02
16,095'02
-------
e/
1/96
45,349'00
4.700000
13,79e.74
57,144.74
73,239.76
121
1/96
12,/77-04
12,777.04
a/
1/97
43,349.00
4.900000
13'777.0*
5e,126.04
68,903.07
12/
1/97
11,714.99
11,714.99
6/
1/98
43,349.00
5.000000
11^714.99
55,063.99
66,778.*7
12/
1/98
10,831.26
10,$31'26
a/
1/99
*3,349.00
5.100000
10,631.26
53,980.26
64,611-52
12/
1/99
9,525'86
*,525.86
af
1/ o
43.349'00
5.200000
9,525.86
52,874.86
62,400.72
12/
1/ 0
8,398.79
8,398.79
a/
V 1
43,349.00
5-300000
8,398.79
51,747.79
60,146.57
12/
1/ 1
7,250.04
7,250.04
a/
n 2
43,349.00
5.350000
7,250'04
50,599.04
57,849'07
12/
)/ 2
6.090.*5
6,090.45
e/
1/ s
43'349.00
5.450000
6,090.45
49,439.45
55'529.90
127
1/ s
4,909.19
4,909.19
a/
1/ ^
43,349.00
5.550000
4,909.19
48,258.19
53.167.38
12/
V 4
s'rna.au
3'706.26
6/
1/ 5
43'348.00
5.600800
3,704,26
47,054.26
50,760.51
12Y
1/ s
2,492.51
2,492.51
*/
1/ a
43,348.00
5.700000
2,492.51
45,840-51
48,333.02
12/
1/ 8
1,257.09
1,257.09
*/
1/ r
_______
43,348.00
5.anonnV
______________
1,257-09
^4,�5.op
45,862.18
520'1e5.00
187,397.*7
707,582.67
ACCRUED
=========
520,145.00
=============
187,397.67
===========
707,582'67
Dated s/ 1/95 with Delivery
of s/
1/95
Bond
Years
3,424.538
Average
opvpnn
5.472203
Average
Life
6'583307
w r
c z
5.624103 %
uw/ne 99.0000000
7 /
c %
5.642680 %
From Delivery
Date
nuwoxrs: 03'09-1995 a 09:25:55 p/Lswxms: xwcm xs,: 95E
v1o'm5'mm G.O. Corporate Purpose Bonds, Series 1�e
-- $9m8,3rZ Water Portion Of me Bonds
ci�v of Ames, Iowa -Preliminary
=====~=====
ocoT Ssnv/cE ocxeouLs
mus
____
PRINCIPAL
--------------
cm/nON
/wTsmsar
pemzoo TOTAL
pzmcx/ rorxL
12/ 1/95
---------- --------------
--------------
29'034.13
--------------
29,034'13
*/ 1/96
78'198'00
4.700000
24'886.40
103'084.40
132.118'53
12/ 1/96
23,048.75
23.048.75
6/ 1/97
78,198'00
4.900000
23'048'75
101,246.75
246 75
124,295.49
12/ 1/97
21,132.90
21'1I290
6/ 1/98
78,198'00
5'000000
21'132'90
99'330.90
120,463'79
12Y 1/98
19,177.95
19'177.95
a/ 1/99
r8'19a.Oo
5.1DOOoo
19,177,95
'�5.95
116,553'89
12/ 1/�`
17.183'90
17^183.90
�~
a/ 1/ V
78'198.00
5.200000
17,183.90
95�
'U,9V
112.565.79
12/ 1/ 0
15,150.75
15'150'75
8/ 1/ 1
78'198,00
5-300000
15,150.75
93'348.75
108,499.49
12/ 1/ 1
13'078'50
13,078.50 nn� so
a/ 1/ 2
78,198.00
5'350000
13,078.50
91'27650
104,355'00
12Y 1/ z
10'986-71
10'986.71
a/ 1/ 3
78.198.00
5.450000
10.986.71
89'184'71
100'171.41
12/ 1/ 3
e.855'81
8-855.81
ev 1/ 4
78,197.00
5.550000
8,855.81
87,052.81
95'908.62
�~
12v 1/ 4
a'�o.u5
6'e85.85
a/ 1/ s
78'1*7.00
5.600000
6.�o'85
84'882.85
*1'568.*9
12/ 1/ 5
4'*96.33
4'496.I3
U�
6/1/ 6
�.1y7.�
s.���
4,*�.�
mZ'*Q �
87,189.66
12/ 1/ 6
2,267.72
2'267'7a
ev 1/ 7
78.197.00
-______
s'anouoo
2'267.73
ao*u4.rz
mz.�2.4n
938'372.00
-__-_-_
--------------
338'050.79
t27a'4Za.79
|�
���
~~
938,372.00
338,050.79
1.276.422.79
mated 5/
1/95 with Delivery
of s/
1/95
Bond Years
6'177-600
Average Coupon
5.472203
Average Life
6.588316
w z c %
5-624102 %
Using 99.0000000
T I c %
5'e42679 %
From Delivery
Date
muwoxrs:
03-09'1995 m
09:25,19
pzLswxos: xmse
xc,: 95n
1�
11
11
$10,035,000 G.O. Corporate Purpose Bonds, Series 1995
$1,193,895 Street Improvements Portion
City of Ames, Iowa -Preliminary
DEBT SERVICE SCHEDULE
DATE
--------
PRINCIPAL
--------------
COUPON
INTEREST
PERIOD TOTAL
FISCAL TOTAL
12/
1/95
------------------------
36,940.27
----------------------------
36,940.27
6/
1/96
99,492.00
4.700000
31,663.09
131,155.09
168,095.35
12/
1/96
29,325.03
29,325.03
6/
1/97
99,492.00
4.900000
29,325.03
128,817.03
158,142.05
12/
1/97
26,887.47
26,887.47
6/
1/98
99,492.00
5.000000
26,887.47
126,379.47
153,266.94
12/
1/98
24,400.17
24,400.17
6/
1/99
99,491.00
5.100000
24,400.17
123,891.17
148,291.34
12/
1/99
21,863.15
21,863.15
6/
1/ 0
99,491.00
5.200000
21,863.15
121,354.15
143,217.30
12/
1/ 0
19,276.39
19,276.39
6/
1/ 1
99,491.00
5.300000
19,276.39
118,767.39
138,043.77
12/
1/ 1
16,639.88
16,639.88
6/
1/ 2
99,491.00
5.350000
16,639.88
116,130.88
132,770.75
12/
1/ 2
13,978.49
13,978.49
6/
1/ 3
99,491.00
5.450000
13,978.49
113,469.49
127,447.98
12/
1/ 3
11,267.36
11,267.36
6/
1/ 4
99,491.00
5.550000
11,267.36
110,758.36
122,025.72
12/
1/ 4
8,506.49
8,506.49
6/
1/ 5
99,491.00
5.600000
8,506.49
107,997.49
116,503.97
12/
1/ 5
5,720.74
5,720.74
6/
1/ 6
99,491.00
5.700000
5,720.74
105,211.74
110,932.47
12/
1/ 6
2,885.24
2,885.24
6/
1/ 7
--------------
99,491.00
5.800000
--------------
2,885.24
102,376.24
105,261.48
1,193,895.00
--------------
430,104.12
1,623,999.12
ACCRUED
1,193,895.00 430,104.12 1,623,999.12
Dated 5/ 1/95 with Delivery of 5/ 1/95
Band Years 7,859.795
Average Coupon 5.472205
Average Life 6.583322
N I C % 5.624104 % Using 99.0000000
T I C % 5.642681 % From Delivery Date
RUNDATE: 03-09-1995 a@ 09:24:45 FILENAME: AMES KEY: 95B
Fi
111
$10,035,000 G.O. Corporate Purpose Bonds, Series 1995
$7,188,753 nmym/na Recovery Portion
City of Ames, Iowa-PreLiminary
osaT ssnvIcs ocxsuuLs
oxTs pnIwczwu oouPow IwTensmT PEVzou TOTAL nooxL TOTAL
-------- -------------- ---------- -------------- -------------- _______
12y 1/95 227,858.97 227,858.97
8/ 1/96 477,811.00 4-700000 195,307'89 673,118'69 900^977'86
zZy 1/e6 184,079^13 184,079.13
6/ 1/97 477,811-00 4.900000 184,079J3 661,890,13 845,969'26
12y 1/97 172,372.76 172,372'76
6/1/98 477,811'00 5,000000 172,372-76 650,183.76 822,556.52
12y 1/98 160,427,49 160,427,49
6/ 1/99 477 D12.00 5,100000 160,427,49 638,239.49 798,686,97
12/ 1/99 148,243-28 148,243'28
6/ 1/0 477,812-00 5,200000 148,243.28 626,055.28 774,298.56
12/ 1/ 0 135'820.17 135,820-17
6/ 1/ 1 477,812.00 5.300000 135,820.17 613,632.17 749,452'34
12y 1/ 1 133,158'15 123,158.15
6/ 1/ 2 477,02'00 5'350000 123,158.15 600,970.15 724,128.30
12y 1/ 2 110,376'68 110,376'68
6/ 1/ 3 482^813.00 5.450000 110,376-68 593,189'6e 703,566.36
12/ 1/ 5 97,220.03 97'220'03
6/ 1/ 4 482'04.00 5,550000 97,220.03 580,034-03 677.254'05
13Y V 4 83,021-94 83.821.94
6/ 1/5 482,815.00 5.600000 83,821-94 566,636.94 850.458.87
12/ 1/ 5 70,303,12 70,303.12
6/ V 6 *82,815.00 5-700000 70,303.12 553,118,12 623,421,23
12Y 1/ a 56,542-89 56,542.89
6/ 1/ 7 482^05.00 5-800000 56,542.89 539,357.89 595,900,77
12/ 1/ 7 42,541'25 42,541'25
6/ V 8 480.00¢'00 5,900000 42,541'25 522,541.25 565,082-50
121 1/ 8 28,381.25 28,381.35
6/ 1/ 9 475,000.00 5'950000 28,381.25 503,381'25 531,782-50
12/ 1/ 9 14,250.00 14^250,00
6/ 1/10 475,000'00 6.V8OOD0 14,250'00 489,250.00 503,500.00
_______ ______________
ACCRUED 7,108,753'00 3'278,242,89 10,466,995.89
7,188,753^00 3,278,242'89 10,466,995'89
Dated 5/ 1/95 with Detivery of 5/ 1/95
uvvd Years 58,133.518
Average Coupon 5.639161
Average Life 8.086732
w | c % 5,762821 % Using 99.0000000
r / c % 5.772848 % From oeLivery Date
muwoATs: 03-09-1995 a 10:32:32 pzLswxms: xmsm ue, 95x
$10,035,000 G. 0. Corporate Purpose Bonds, Series 1995
City of Ames, Iowa
Preliminary
DEBT SERVICE SCHEDULE
-DATE-
-- ---
PRINCIPAL
COUPON
INTEREST
PERIOD TOTAL
FISCAL TOTAL
12/
1/95
----------
315,924.58
----------
315,924.58
6/
1/96
715,000.00
4.700000
270,792.50
985,792.50
1,301,717.08
12/
1/96
253,990.00
253,990.00
6/
1/97
715,000-00
4.900000
253,990.00
968,990.00
1,222,980.00
12/
1/97
236,472.50
236,472.50
6/
1/98
715,000.00
5.000000
236,472.50
951,472.50
1,187,945.00
12/
1/98
218,597.50
218,597.50
6/
1/99
715,000-00
5.100000
218,597.50
933,597.50
1,152,195.00
12/
1/99
200,365.00
200,365.00
6/
1/ 0
715,000.00
5.200000
200,365.00
915,365.00
1,115,730.00
12/
1/ 0
181,775.00
181,775.00
6/
1/ 1
715,000-00
5.300000
181,775.00
896,775.00
1,078,550.00
12/
1/ 1
162,827.50
162,827.50
6/
1/ 2
715,000-00
5.350000
162,827.50
877,827.50
1,040,655.00
12/
1/ 2
143,701.25
143,701.25
6/
1/ 3
720,000-00
5.450000
143,701.25
863,701.25
1,007,402.50
12/
1/ 3
124,081.25
124,081.25
6/
1/ 4
720,000-00
5.550000
124,081.25
844,081.25
968,162.50
12/
1/ 4
104,101.25
104,101.25
6/
1/ 5
720,000-00
5.600000
104,101.25
824,101.25
928,202.50
12/
1/ 5
83,941.25
83,941.25
6/
1/ 6
720,000-00
5.700000
83,941.25
803,941.25
887,882.50
12/
1/ 6
63,421.25
63,421.25
6/
1/ 7
720,000.00
5.800000
63,421.25
783,421.25
846,842.50
12/
1/ 7
42,541.25
42,541.25
6/
1/ 8
480,000-00
5.900000
42,541.25
522,541.25
565,082.50
12/
1/ 8
28,381.25
28,381.25
6/
1/ 9
475,000.00
5.950000
28,381.25
503,381.25
531,762.50
12/
1/ 9
14,250.00
14,250.00
6/
1/10
475,000.00
-------------
6.000000
---14,250.00
---------
489,250.00
503,500.00
10,035,000.00
4,303,609.58
-------------
14,338,609.58
ACCRUED
10,035,000.00
4,303,609.58
14,338,609.58
Dated 5/
1/95 with Delivery of
5/ 1/95
Bond
Years
76,871.250
Average
Coupon
5.598464
Average
Life
7.660314
N I
C %
5.729007
% Using 99.0000000
T I
C %
5.739951
% From Delivery Date
RUNDATE:
03-09-1995 @
11:17:29
FILENAME: AMES KEY: 95
I
C
I
I
11
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BIDDING REQUIREMENTS
The bidders will be required to submit their bids in accordance with requirements
outlined in the Notice of Sale. Bidders will be required to purchase the Bonds at a
price not less than 99% of Par. The discount is a marketing feature which allows the
purchaser to take its profit in the discount bid on the Bonds and to reoffer the Bonds
at Par.
The estimated compensation for issues of this size and maturity length should run
between 0.8% and 1.0% depending on market conditions. The appropriate
compensation of a purchaser varies depending upon the issue size, rating and market
conditions. The competitive bid process assures that bidders will keep their profit
margins at appropriate levels.
A second requirement is that interest rates must be bid in ascending order. This
bidding restriction is designed to protect the call feature on the Bonds. The call
feature, which occurs first in 2003, gives the City the flexibility to refund or call the
Bonds at an earlier date if interest rates drop significantly or if the conditions
affecting debt repayment change.
The City will request a rating on the Bonds from Moody's Investors Service and
Standard & Poor's Corporation. Evensen Dodge will assist the City with its rating
application.
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The following paragraphs present a brief summary of federal tax regulations and
rulings which impact the tax status of the Bonds, as well as allowable uses of
proceeds. In reference to the following paragraphs, it is our understanding that the
Bonds:
1. will be issued as governmental purpose bonds;
2. will not be designated as qualified tax-exempt obligations;
3. will be subject to arbitrage rebate;
4. will not be used in whole or in part for reimbursement of previously expended
funds.
Tax ExemDtion
The Internal Revenue Code of 1986 divides all debt sold by governmental issuers into
the categories of "Governmental Purpose Bonds" and "Private Activity Bonds."
Governmental Purpose Bonds are issuable on a tax-exempt basis while Private
Activity Bonds, with some exceptions, are taxable.
To be considered as Private Activity Bond, an issue must meet the following two
tests:
More than 10% of the proceeds of the bonds is used in the business of a
nongovernmental unit, and
(2) More than 10% of debt service on the bonds is paid either directly or
indirectly by a nongovernmental unit.
If private activity is unrelated to the governmental use, the cutoff is 5%.
Private Activity Bonds may be issued on a tax-exempt or partially tax-exempt basis
for 50 1 (c)(3) organizations, for Industrial Revenue Bonds issued under a state volume
cap and for some special purposes as defined in the Code.
The Bonds will be issued as Governmental Purpose Bonds.
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Another provision of the Internal Revenue Code of 1986 is a 100% disallowance of
the interest deduction for banks which purchase tax-exempt bonds. An exception to
this provision allows banks to deduct interest earned on governmental bonds when the
jurisdiction issues no more than $10 million of tax-exempt debt in the calendar year.
When possible, it is to the City's advantage to designate its tax-exempt debt as
Qualified Tax -Exempt Obligations because such debt is slightly more marketable
under current market conditions.
The City will not designate the Bonds as Qualified Tax -Exempt Obligations.
Arbitrage Rebate
The Internal Revenue Code of 1986 also requires a rebate to the federal government
of any interest earnings on the proceeds of the Bonds that are in excess of the yield on
the Bonds ("arbitrage"), with the following exceptions:
Issuers who issue less than $5,000,000 of Governmental Purpose Bonds
during a calendar year do not have to rebate arbitrage earnings on any
Governmental Purpose Bonds issued during that same calendar year.
Issuers who expend proceeds on long term issues within the following
spending schedule do not have to rebate arbitrage earnings for this specific
issue:
0 10% of net proceeds in 6 months
0 45% in I year
0 75% in 18 months
0 95% in 2 years
0 100% in 3 years
The last 5% of proceeds left after two years may only represent a reasonably required
retainage, such as to ensure compliance with the terms of construction contracts.
Since the City expects to issue more than $5,000,000 of governmental purpose bonds
during 1995, it must rebate the excess arbitrage earnings if the spending schedule is
not met.
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Treasury Regulations enacted during 1991 impose restrictions on the use of proceeds
for reimbursement purposes unless certain steps, including the adoption of an official
intent to reimburse costs from bond proceeds, were taken prior to the issuance of debt.
If the proceeds of the Bonds will be used for reimbursement purposes, the City should
confirm official intent guidelines with bond counsel.
11 OFFICIAL STATEMENT DISCLOSURE
The Securities Exchange Commission issued rule 15(c)2-12 in 1990 which states that
underwriters cannot bid on issues of $1,000,000 or more unless they have first
reviewed an official statement which has been designated by the issuing municipality
as a "near final official statement." Though the rule places an obligation on the
underwriter, it is generally understood that the ultimate responsibility for the quality
of disclosure provided in an official statement rests with the issuer.
Evensen Dodge will assist the City with the preparation and dissemination of a
I"nearly final official statement" to the underwriting community prior to the issuance
of the Bonds. A draft will be provided to the City for review and confirmation as to
the accuracy of the Official Statement.
After the sale, Evensen Dodge will prepare an addendum for the Official Statement
which contains the information determined at the sale, such as the purchaser and the
interest rates on the Bonds. Up to 150 copies of the Official Statement and
Addendum will be provided to the Purchaser of the Bonds.
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GENERAL MARKET CONDITIONS
A graph showing The Bond Buyer's Index (BBI) dated March 9, 1995 follows. This
graph shows the movement of tax-exempt rates since 1982. Even though interest
rates have risen when compared to their lowest point in recent years, interest rates are
still favorable and have fallen steadily over the last three months.
We have estimated, based on current market conditions, that the Bonds will receive a
net interest rate of between 5.65% and 5.85%. Nevertheless, the possibility of sudden
shifts in the market exists because of its sensitivity to events that cannot be foreseen.
Therefore, we cannot predict what the actual rate of interest will be when the Bonds
are sold on April 11, 1995,
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PROPOSED FINANCING TIMETABLE
Date Task
March 1-9 Evensen Dodge prepares Official Statement.
March 10 Sale memorandum to bond counsel.
March 13 Draft Official Statement delivered to City and Bond Counsel.
March 15 Presale Analysis delivered to City by Evensen Dodge.
March 20 City and Bond Counsel supply Evensen Dodge with comments on
first draft of Official Statement.
March 22 Second draft of Official Statement delivered to City and Bond
Counsel.
March 27 City and Bond Counsel supply Evensen Dodge with comments on
second draft of Official Statement.
March 28 Council resolution to set hearing.
March 28 Application for rating and official statement filed with rating
agencies.
March 28 Official Statement distributed to potential bidders.
April 3-7 Evensen Dodge contacts potential bidders, answers rating questions.
April 11 Bond sale. Council acts on the resolution awarding the sale of the
Bonds.
April 17 Evensen Dodge prepares final Official Statement.
April 17-May I Evensen Dodge and Dorsey & Whitney coordinates closing
arrangements.
May 2 Bond closing.
May 16 Postsale Analysis prepared by Evensen Dodge.
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LIST OF PARTICIPANTS
Issuer
City of Ames
515 Clark Avenue
Ames, IA 50010
Mr. Steven Schainker, City Manager
Ms. Alice Carroll, Finance Director
Ms. Sue Rybolt, Asst. Finance Director
515/239-5113
515/239-5325 (FAX)
Financial Consultant
Evensen Dodge, Inc.
601 Second Avenue South, Suite 5 100
Minneapolis, MN 55402
Mr. Wayne S. Burggraaff,
Sr. Vice President and Principal
Ms. Deborah Nistler, Associate
612/338-3535
612/338-7264 (FAX)
100 Court Avenue, Suite 215
Des Moines, IA 50309
Mr. David M. Dirks, Senior Vice President
515/282-6138
515/282-0252 (FAX)
Bond Counsel
Dorsey & Whitney
801 Grand, Suite 3900
Des Moines, IA 50309
Mr. Robert Helmick
515/283-1000
515/283-1060 (FAX)
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