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HomeMy WebLinkAboutA018 - Certification of officers for the City of Ames419370-15 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 $10,035,000 General Obligation Corporate Purpose Bonds, Series 1995, dated May 1, 1995 (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 April 11, 1995 (the "Resolution"), the Bonds have been heretofore lawfully sold and delivered to the purchaser thereof (the "Purchaser"), and the Purchaser has paid the City the sum of $9,936,270.72, receipt of which is hereby acknowledged, which amount represents the principal amount of the Bonds ($10,035,000), minus total discount ($100,146), plus accrued interest ($1,416.72). The Bonds mature on June 1 in each of the years, in the respective principal amounts and bear interest payable semiannually, commencing December 1, 1995, at the respective rates, as follows: Principal Interest Rate Principal Interest Rate Year Amount Per Annum Year Amount Per Annum 1996 $715,000 4.85% 2004 $720,000 5.10% 1997 $715,000 4.90% 2005 $720,000 5.20% 1998 $715,000 5 % 2006 $720,000 5.25% 1999 $715,000 5% 2007 $720,000 5.25% 2000 $715,000 5 % 2008 $480,000 5.25% 2001 $715,000 5 % 111.,009 $475,000 5.25% 2002 $715,000 5 % 2010 $475,000 5.25% 2003 $720,000 5.10% 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 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, 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 (the "Projects"). All Projects will be owned, maintained and operated by the City and the City has not, and will not, during the term of the Bonds enter into any lease, management agreement, operating agreement, capacity agreement or other contract relating to the use of the Projects or the security for the repayment of the Bonds which would cause the Bonds to be considered "private activity bonds" under the provisions of Section 141 of the Internal Revenue Code of 1986 (the "Code"). We further certify that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of _I_ DORSEY & WHITNEY P.L.L.P., ATTORNEYS, DES MOINES, IOWA 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 are estimated to be as follows: Cost of Construction and/or Acquisition $ 9,838,519 Qualified Administrative Costs: Underwriter's discount $ 58,742 Original Issue Discount $ 41,404 Other Costs of Issuance $ 96,335 Total Project Costs: $10,035,000 2. The net sales proceeds of the Bonds are $9,993,596.45 (the "Net Sales Proceeds"), the same being the Issue Price thereof. 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 into or, within six months of the date hereof, will enter into binding contracts 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 5% of the Net Sales Proceeds; -2- DORSEY & WHITNEY P.L.L.P., ATTORNEYS, DES MOINES, IOWA 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/or 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. Any amount of Net Sales Proceeds not so expended within the Three Year Temporary Period will, pending expenditure, be invested at a yield which does not exceed the yield on the Bonds computed in accordance with Section 148 of the Code, unless the City W determines to take advantage of the provisions of Section 1.148- 5(c) of the Income Tax Regulations (the "Regulations") relating to yield reduction payments or (ii) unless the remaining amounts of Net Sales Proceeds qualify for investment as part of the "minor portion" of the Bonds pursuant to Section 148(e) of the Code. 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 1 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 W the earnings on the fund for the immediately preceding Bond Year; or GO 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. 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 W 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 W the date any such expenditure was originally paid or (ii) 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. -3- DORSEY & WHITNEY P.L.L.P., ATTORNEYS, DES MOINES, IOWA Ames/419370-15/FDC & Ltr 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 1996, 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 (7.66) does not exceed the reasonably expected economic life of the Projects (15.58), the calculation of which is set out on Exhibit A attached hereto. 8. The amount received as accrued interest 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. There are no other governmental obligations of the City: (i) sold at substantially the same time as the Bonds; (ii) sold pursuant to the same plan of financing with the Bonds; and (iii) reasonably expected to be paid out of substantially the same source of funds as will be used to pay the Bonds; no other general obligation bonds of the City are being sold and issued on the same date as the Bonds pursuant to the same offering document. 10. 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. We further certify that, since the Bonds are subject to the arbitrage rebate provisions of Section 148(f) of the Code, the City will retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(f) and applicable Regulations to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes, unless the Bonds qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section 1.148-7 of the Regulations and no "gross proceeds" of the Bonds (other than amounts constituting a "bona fide debt service fund") arise during or after the expenditure of the Net Sales Proceeds. We further certify that the Purchaser has advised the City that the reasonably expected reoffering price of the Bonds to the public is $9,993,596.45. -4- DORSEY & WHITNEY P.L.L.P., ATTORNEYS, DES MOINES, IOWA Ames/419370-15/FDC & Ur 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 1994 State and County tax lists $1,261,156,605 Taxable value (after rollback) of all taxable property within the City, except moneys and credits, as entered on the 1994 State and County tax lists $ 993,271,951 Tax increment value, as entered on the 1994 State and County tax lists $ 4,681,597 Total bonded indebtedness payable from taxes, including the Bonds $ 33,530,000 All other indebtedness of any kind $ -0- IN WITNESS WHEREOF, we have hereunto affixed our hands and the seal of the aforementioned City, as of May 2, 1995. (Seal) CITY OF �S, IOWA Mayor -5- DORSEY & WHITNEY P.L.L.P., ATTORNEYS, DES MOINES, IOWA Exhibit A EVIDENCE OF ECONOMIC LIFE List of Financed Assets Comprising Projects with Expected Economic Lives and Weighted Average Calculation Amount Paid From Weighted Asset? Bond Proceeds Life Life 2 Solid Waste Facility Improvements $ 7,188,753 10 $ 71,887,530 Street Improvements $ 1,193,895 20 $ 23,877,900 Water Improvements $ 938,373 50 $ 46,918,650 Storm Sewer Improvements $ 520,185 24 $ 12,484,440 Fire Truck $ 193,794 6 $ 1,162,764 $10,035,000 $156,331,284 WEIGHTED AVERAGE CALCULATION Total of Column 4 __($156,331,284)__ _ Total of Column 2 ($10,035,000) I Includes only assets financed with Loan Proceeds 2 Value of the asset multiplied by its life Average Economic Life (15.58)