HomeMy WebLinkAboutA013 - Certification of City of Ames officers dated March 26, 1996It'
Ames /419370-10 / FDC & Ltr
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 $3,515,000 Sewer Revenue Refunding
Bonds, Series 1996, dated March 15, 1996 (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 March 5, 1996 (the "Resolution"), the
Bonds have been heretofore lawfully authorized and this day by us lawfully
authorized and this day by us lawfully issued, sold and delivered to the purchaser
thereof, and the purchaser has paid the City $3,504,569.64, representing the principal
amount of the Bonds ($3,515,000), plus accrued interest thereon ($4,564.62), minus
underwriter's discount ($14,994.98). The Bonds mature on December 1 in each of
the years, in the respective principal amounts and bear interest payable
semiannually, commencing December 1, 1996, at the respective rates, as follows:
Principal
Interest Rate
Principal
Interest Rate
Year
Amount
Per Annum
Year
Amount
Per Annum
1996
$435,000
4.25%
2000
$595,000
4.25%
1997
$510,000
4.25%
2001
$605,000
4.25%
1998
$520,000
4.25%
2002
$290,000
4.25%
1999
$560,000
4.25%
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;
the certificate on the back of each Bond has been executed with the facsimile
signature of the aforesaid City Treasurer; 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 Bond Registrar and Paying Agent.
We further certify that the Bonds are being issued for the purpose of
refunding the City's Sewer Revenue Bonds, Series 1987A, dated May 1, 1987, and the
City's Sewer Revenue Bonds, Series 1987B, dated December 1, 1987, which are
optional for redemption prior to maturity on June 1, 1996 (the "Redemption Date")
and all of which are hereinafter referred to as the "Refunded Obligations".
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DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Ames/419370-10/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
proceedings incident to the authorization of the Bonds or in any way concerning the
validity of the Bonds or the power and duty of the City to appropriate and apply the
Net Revenues from the operation of the Municipal Sanitary Sewer System of the
City (the "Utility") to 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.
The Bonds are payable from the Net Revenues of the Utility, which will be
collected in the City's Sewer Revenue Bond Sinking 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 December 1 (the 12-month period ending on each December 1
being herein referred to as a "Bond Year"); the Sinking Fund is used primarily to
achieve a proper matching of revenues with principal and interest payments within
each Bond Year; the Sinking 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 Sinking Fund will be invested by the City without
restriction as to yield for a period of 13 months after their date of deposit.
We further certify that there are no other obligations of any kind now
outstanding secured by or payable from the revenues to be derived from the
operation of the Utility.
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DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Ames /419370-10 /FDC & Ltr
We further certify as follows:
1. The estimated sources and uses of funds in connection with the Bonds
are as follows:
SOURCES
USES
Principal amount of Bonds $3,515,000.00
Accrued interest 4,564.62
Other City funds (Series 1987 A and B
Bond Reserves) 708,837.50
Projected investment earnings 33,436.09
Principal of Refunded Obligations
$3,850,000.00
Costs of issuance
40,778.61
Underwriter's Discount
14,994.98
Reserve Fund for Bonds
351,500.00
Deposit into Sinking Fund
for Bonds (accrued interest)
4,564.62
2. The sales proceeds of the Bonds are $3,526,485.20 (the "Sales Proceeds"),
the same being the Issue Price thereof.
3. The net sales proceeds of the Bonds are $3,526,485.20 (the "Net Sales
Proceeds"), the same being the Sales Proceeds as determined in number 2 above
($3,526,485.20) less the portion of such Sales Proceeds deposited into a reasonably
required reserve or replacement fund ($-0-).
4. $3,850,000 of the Net Sales Proceeds has been deposited into a separate
Refunding Account and, together with interest earnings thereon and other legally
available funds of the City, will be applied to the redemption of the Refunded
Obligations on the Redemption Date and, until so applied, will be invested by the
City without restriction as to yield.
5. $40,778.61 of the Net Sales Proceeds will be disbursed to pay the
issuance costs related to the issuance of the Bonds within 30 days of the date hereof.
Until such time, the aforementioned amount may be invested without restriction as
to yield.
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DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
c
Ames/419370-10/FDC & Ltr
6. (a) All of the original and investment proceeds of the
Refunded Obligations have been expended for the purpose for which
they were issued.
(b) Not more than 50% of the proceeds of the Refunded
Obligations were 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).
(c) 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 does not exceed 120% of
the weighted average of the remaining reasonably expected economic life of the
facilities originally financed by the Refunded Obligations.
8. The amount received as accrued interest will be set aside and deposited
into the City's Sewer Revenue Bond Sinking Fund as provided in the Resolution
and used to pay interest on the Bonds due on the first interest 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.
We further certify that the original purchaser of the Bonds has advised the
City that the reasonably expected reoffering price of the Bands to the public is
$3,536,485.20.
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DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Ames /419370-1 O/FDC & Ltr
IN WITNESS WHEREOF, we have hereunto affixed our hands and the seal of
the aforementioned City, as of March 26, 1996.
(Seal)
City lerk
City Treasu� r
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DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA