HomeMy WebLinkAboutA011 - Postsale AnalysisPOSTSALE ANALYSIS
$4,11),,),000 GENERAL OBLIGATION
CORPORATE PURPOSE BONDS, SERIES.1995B
CITY OF AMES, IOWA
3ALY,c� DA TF,.- 615i4,-PTEmm�,R 26, 1995
EVENSEN DODGE INC
F I N A N C I A L C 0 N S U L T A N -1 S
EVENSEN DODGE INC
November 30, 1995
Mr. Steven Schainker, City Manager
Ms. Alice Carroll, Finance Director
City of Ames
515 Clark Avenue
Ames, Iowa 50010
RE: $4,195,000 General Obligation Corporate Purpose Bonds, Series 1995B
Dear Mr. Schainker and Ms. Carroll:
Evensen Dodge is pleased to present this Postsale Analysis of the City's sale of $4,195,000
General Obligation Corporate Purpose Bonds, Series 1995B, on September 26, 1995. This
Postsale Analysis summarizes and confirms information provided to the City on the day of the
sale prior to the award of the Bonds.
Please do not hesitate to contact us at any time throughout the life of this issue with any
questions which may arise on the transaction.
Evensen Dodge appreciates the opportunity to have worked with the City on this financing, and
we value our continuing relationship with the City.
Sincerely,
EVENSEN DODGE, INC.
Wayne S. Burggraaff
Senior Vice President
and Principal
/rp
David M. Dirks
Senior Vice President
371096 60 1 Se(ond Avenue South, Sm�e �n V 00, Mwne,�p(dh,,, NAN Vr40,1
6 21 u8 5 1, " 80M28 8200 VAX 6[),M8 -1'264
TABLE OF CONTENTS
ListoFParticipants ........ ....................................................................................... .......... 2
Sources and Uses OfFunds ...................................................................... -------'5
Ratings...................................................... .... —........................ ..................................... 6
DebtService Schedule ..................................................................................................... 14
ResultsO[Sale .......... ....................................................................................................... lh
ComparativeSales iuMarket ........................................................................................... 20
Purchaser's Compensation -----_-------------------------..7l
TheBond Buyer Index Graph .......................................................................................... 73
371096
ISSUE SUMMARY
Name of Issue: $4,195,000 General Obligation Corporate Purpose Bonds, Series
1995B
Date of Sale September 26, 1995
Bonds Dated: October 1, 1995
Date of Closing: November 1, 1995
Purpose of Issue: The proceeds of the Bonds were used for the purpose of financing
street and storm sewer improvements and the acquisition of a fire truck
aerial ladder.
Principal Due: June 1, 1996/2007
Call Feature: Bonds maturing on June 1, 2004 and thereafter are subject to call and
prior payment at the option of the City on June 1, 2003 and any date
thereafter at a price of par and accrued interest.
Credit Ratings: "Aal " (Moody's); "AA" (S&P)
Net Interest Rate: 4,7962%
Tax Status: Tax Exempt
Qualified
Tax -Exempt Obligation: Yes
EVENSEN DODGE INC Page 1
371096
LIST OF PARTICIPANTS
Issuer/Registrar
City of Ames
515 Clark Avenue
Ames, IA 50010
(515) 239-5113
(515) 239-5325 (FAX)
Steven Schainker
City Manager
Alice Carroll
Finance Director
Sue Rybolt
Assistant Finance Director
Financial Advisor
Evensen Dodge, Inc.
601 Second Avenue South
Suite 51.00
Minneapolis, MN 55402
(612) 338-3535
(612) 338-7264 (FAX)
Wayne S. Burggraaff
Senior Vice President
and Principal
100 Court Avenue
Suite 215
Des Moines, IA 50309
(515) 282-6138
(515) 282-0252 (FAX)
David M. Dirks
Senior Vice President
Purchaser
Harris Trust & Savings Bank
I I I W. Monroe Street
Chicago, IL 60603
(312) 461-2863
(312) 461-3600 (FAX)
Carrie Neal
Vice President
Bond Counsel
Dorsey & Whitney
801 Grand Street
Suite 3900
Des Moines, IA 50309
(515) 283-1000
(515) 283-1060 (FAX)
Robert Helmick
EVENSEN DODGE INC Page 2
371096
&positor
The Depository Trust Company
55 Water Street
New York, NY 10041
(212) 558-8537
(212) 898-3727 (FAX)
Tony Arcuri
Underwriting, 19th Floor
Ratin-- A-aenci
Moody's Investors Service, Inc.
99 Church Street
New York, NY 10007
(212) 553-0323
(212) 964-5082 (FAX)
Judy Augustino
Standard & Poor's Ratings Group
25 Broadway
New York, NY 10004
(212) 208-1107
(212) 412-0506 (FAX)
Amelia Alvarez
ISEVENSEN DODGE INC Page 3
371096
PROCEEDS RECEIVED AT CLOSING
Principal Amount of Issue $4,195,000.00
Less: Discount on Bid (1) (41,945.00)
Accrued Interest to October 19, 1995 (2) 9.631.25
Total 4,162,686.25
Less: Good Faith Deposit (3) (41,950.00
Net Received at Closing $4,120,736.25
(1) Difference between par amount of the Bonds and their purchase price. The discount is the primary
source of the underwriter's compensation.
(2) Accumulated interest on the Bonds between their dated date and the delivery date.
(3) Deposited with the City by the purchaser on the day of sale and applied toward the purchase price.
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EVENSEN DODGE INC Page 4
371096
1� SOURCES AND USES OF FUNDS _— I
Sources of Funds
Principal Amount of issue $4,195,000
Accrued Interest — 9.�
Total Sources S4224,63-1
Uses of Funds
Project Costs $4,155,000
Debt Service Fund 9,631
Estimated Costs of Issuance 40,000
Total Uses
L
EVENSEN DODGE INC Page 5
371096
Ratings for this issue were requested from Moody's Investors Service and from Standard & Poor's
Ratings Group. Prior to the issuance of the Bonds, the City's general obligation debt carried an
"Aal " rating from Moody's and an S&P rating of "AA". These ratings were confirmed with this
issue.
A copy of the report from Moody's follows this page,
NEVENSEN DODGE INC Page 6
371096
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Moody's MuniCipal credit Report
IAmes, Iowa
September 21, 1995
New Issue General Obligation/Special Tax
sale: S4. 195,000 General Obligation Corporate Purpose Bonds. Series
1995-B
Idate: For bids September 26
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credit comment: The confirmation of the dal high quality rating on
the city's General obligation bonds reflects the fol-
lowing credit factors:
C
A High Degree of Economic Stability
The presence of Iowa State University, the state's
second largest higher education institution, imparts
considerable stability to the city's economy and pop-
ulation: unemployment is consistently well below
both state and national levels. Additionally, signifi-
cant residential development in higher housing values
alone with varied light manufacturing and service
activity create some diversity and contribute to con-
tinued tax base growth.
C,
Financial Flexibility Provided by Ample Reserves
and Available Tax Margin
Favorable financial policies include the maintenance
of sufficient General Fund reserves and the diversifi-
cation of revenues by use of a local option sales tax.
while retaining significant General Fund operating
tax margin. Although the state -imposed temporary
tax levy freeze limited the city's operating flexibility
under the statutory General Fund millage cap, the
freeze was only effective through fiscal year 1995.
which according to officials is estimated to close with
a $1.85 million balance. Although the General Fund
year-end cash position has remained traditionally
low, due to the delay in receipt of cash flow loan
repayments from various funds. including the
Resource Recovery Fund which repay in July of each
year, cash resources throughout all funds remain
ample. Additionally, city officials report annual
increases in the tipping fee over the next few years to
eliminate the need for General Fund loans to the
Resource Recovery Fund,
A Moderate Amount of Rapidly Refired Debt
Substantial, arowin- taxable resources and rapid
bond payout keep the debt burden moderate, despite
recurrent issuance by the city and the Ames School
District. Additionally, debt levels are expected to
remain moderate as projected future city general obli-
gation borrowings will be offset b�, maturing bonds.
key facts: Debt Burden: 3 .4 cle General Fund Operating Tax
Median: 2.9 c1c Rate Margin,
Payout Ten Years: 86.417c FY 1996: 2 3. () 11c
Average Annual Growth F.V., Sales Tax as % of Operating Revenue,
1993-96: 6. 7 cl'c FY 1994: 13.8%
2 General Obligation/Special Tax September 21, 1995
IAmes, Iowa
LJ
Average Annual Growth in
Iowa State University:
Sales Tax Receipts,
University Full -Time Employment
FY 1989-95: 3.1 (7c
as % of Total City Employment,
Undesignated General Fund Balance
1994: 2 2 0,-/s
as % of General Fund Revenue,
Enrollment, Fall 1994:
1992: 11.9%
Median Family Income
1993: 10. 517c
as % of State Average,
1994: 10, 3 c7c
Unemployment Rate, 1994: 3.2%
1979: 110, 7
1989: 1 151,,E
7/95: 2. 7 C-1c
Moody's Ratings,
7/94: 3.1 cl,
Electric Revenue: Al
Sewer Revenue: Al
Iowa State University: Al
update:
Since our credit report dated April 10. 1995, there has
of 5282,000, and although the 1996 General Fund
been no chance in the city's credit quality. The fiscal
bud -et includes an operating deficit, the fund balance
1994 audited financial statements confirm the city's
is expected to remain at the targeted 10% of
earlier projection of no material change in the Gen-
expenditures,
eral Fund balance. Additionally, city officials report
fiscal 1995 operations result in an operating surplus
sale information:
Legal Name of Issuer: City of Ames. in the County
Key Contacts:
of Story,State of Iowa.
Chief Financial Officer: Ms. Alice Carroll.
Date of Bonds: October 1, 1995.
Finance Director , (5 15) 239-5 113.
Security: General obligation, unlimited tax.
Advisor: Evensen Dodge, Inc. Minneapolis,
(800) 328-8200.
Use of Proceeds: Finance the purchase of a fire
Bond Counsel: Dorsey & Whitney, Des Moines.
truck and various street, water system, storm sewer,
and solid waste facility improvements.
(515) 283-1000.
Auditor: Deloitte & Touche LLP, Des Moines.
(515) 288-1200 (FY 1994).
rating history:
August 1981: Aal
January 1939: A
April 1950: Aa
analyst: Judy Augustino
(212) 553-0323
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General Obligation/Special Tax September 21, 1995 3
Ames, Iowa
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debt actors:
Debt Statement as of 9/20/95 ($000):
Amount
Bonded debt outstanding
General Obligation
$31.190
Mary Greeley Med. Center Rev. Bonds
41.530
Electric revenue
24,655
Sewer revenue
4,275
Current offering (9/26/95)
4.195
Gross bonded and direct debt
S 105,845
Less: Revenue Debt (Self -Supporting)
Hospital, electric, and sewer
70.460
General obligation bonds (water & sewer)
5,474
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Net direct debt 529,91 I
Overlapping debt 13.569
Overall net debt $43,480
For additional information please refer to Moody's 1995 Municipal and Government Manual
Defaults: No record found.
Debt Ratios Rate of Retirement
Net
Per
%
Median
Debt
Capita
Median I F.V.
(%)
Direct
5634
S597 2.4
1.5
Overall
921
1,187 3.4
2.9
:� 1995 median
for cate, with population 25,000 to 49.999
Amount
% of
Principal Amount Due
($000)
Total
In 5 years
S17,160
48.5
In 10 years
30,560
86.4
In 15 years
35,385
100.0
Structure: Rapid payout: declining total annual debt 516.6 million of -eneral obligation bonds, includim,
service requirements through final maturity in 2010. the bonds now offered, $26 million of hospital reve-
CIP/Future Borrowing: City prepares an annually nue bonds, $14 million of electric revenue bonds, and
updated, five-year, capital plan. The fiscal year 1995- approximately $5,8 million of annual sales tax
99 plan includes approximately $93.8 million in total receipts.
costs. Funding is primarily expected from about
administrative Form of Government: Council-manager. Mayor
factors: and two council members are elected at large and
four council members are elected from specific
wards: council members serve four-year overlapping
terms. A city manager is appointed to oversee daily
administration. Electric, water, and sewer enterprises
are managed by appointed directors; city also owns
Mary Greeley Medical Center, a self- supporting
hospital governed by a city -appointed board of
trustees,
Public Employees: Approximately 2.100 perma-
nent full-time and part-time city employees, includ-
ing 1,600 at the medical center. City employees are
represented by five bargaining units; existing con-
tracts extend through June 30, 1996. The majority of
employees participate in the state -administered Iowa
Public Employees' Retirement System (IPERS) and
Municipal Fire and Police Retirement System
(MFPRS); city responsibilities under these plans are
limited to required employer contributions which
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4 General Obligation/Special Tax September 21, 1995
1 Ames, Iowa
11
totaled $2,883,847 for 1994 fiscal year. City adminis- Legal Factors: No material litigation is pending
tern the utility department retirement systems.
property Ames
tvaluation and Fiscal Assessed Tax Rate/ Levy % Current
ax data: Year Valuation ($000) % Chan ge $1,000A.V. ($000) Collected
1994 5896,484 4.5 59,47
$8,489
99.8
1995 957,821 6.8 9.77
9,355
In process
1996 0 993,272 3.7 10.23
10,164
NA
0 Composed of 64 6% residential, 30 .1% commercial. 12 % personal, 1 9% industrial and 1 2% utilities
1996 Full Valuation: $1,265,839M0 1996 F.V. per Capita:
526,820
Average Annual Growth F.V- 1993-96: 6.7%
A.V.
FY 1995
Largest Taxpayers Business
($000)
% XV,
General Growth Properties Shopping, center
518349
1,9
Clinic Buildincy Co., Inc. Medical clinic
11585
1.3
IES Utilities, Inc. Utility
6,035
0.6
3M Company Abrasives
8,663
0.9
SAUER-Sunstrand Corp. Hydro -transmission research/assembly
6.525
0.7
Donnellev Marketing, Inc. Contest mail marketino,
7,468
0.8
onomic
,actors:
Population: Ames City
Area % Change
Year Population (sq. mi.) Density City County
State
U.S.
Norms
1960 27,003 7 3.858 - 11.4
5.2
18.5
12.1
1970 39.505 17 2,351 46.3 27.3
2.5
133
2.9
1980 45.775 21 2.204 15.9 15,2
3.1
11.4
18.4
1990 47.198 E 20 2,402 3.1 17
-4,7
9.8
44"9
Source U S. Census Bureau
L-and Area in 1990 can indicate an area chance without a boundary change due to new measurement technique
Location: Central Iowa about 30 miles north of
Des Moines the state capital.
ii
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General Obligation/Special Tax September 21, 1 "S
Ames, Iowa
Population and Housing Characteristics: Ames
1980
1990
Norms
1990
State
1990
U.S.
1990
Population:
Median ace
217
23.7
31.7
34.0
32.9
gib school a(ye
11.1
10.1
17.3
18.9
18.2
workinCy a-e
78.3
78.0
61.8
58.8
61.7
% 65 and over
5.6
6.8
116
15.3
12.6
No. persons/household
2.4
14
2.5
2.5
16
Income:
Median family income
522,203
$36,478
$31,187
$31,659
$35=5
61c below poverty level
15.8
24.1
17.9
11.5
13.1
c/o children below poverty level
-
15.0
22.2
143
18.3
Per capita income
56,698
$11,347
$11290
S12,422
$14.420
Housing:
% vacant
-
0.2
0.8
1.3
3.0
1/r owner occupied
46.9
44.1
56.2
70.0
64.2
cl(- built before 1939
20.1
16.7
20.5
35.0
18.4
is built since last census
30.1
14.2
17.6
10.0
20.7
Owner occupied median value
$64,300
$71500
$71.663
545.900
$79, 100
Median gross rent
$251
$404
5388
$336
5447
Occupied housing units
14,015
15,613
-
Source, US Census Bureau,
Labor Market Characteristics: Ames City
Labor
Total
-
% Unemployed
Year Force
Employed
city
State
U.S.
1991 27,057
25,963
4.0
4.6
6.7
1992 27,975
26,843
4.0
4.6
7.4
1993 29.070
28,131
3.2
4.0
6.8
1994 29.268
28,336
3.2
3.7
6.1
7/94 29,159
28.267
3.1
3.2
6.2
7/95 28314
27,559
2.7
17
5.9
Source Local Area Unemployment Statistics (LAUS). Bureau of Labor
Statistics
Monthly esurnate, are not seasonally adjusted.
LAUS estimates starting in January 1994 are conceptually different from
those available for earlier periods
Per Capita Income
Income
- % Change
City as % of
Year city
County
State
State
U.S.
1969 $3,073
-
-
106.6
97.9
1979 6.698
127.9
147.4
93.9
91.8
1989 11,347
71.0
74,1
91 .3
78.7
1 6 General Obligation/Special Tax September 21, 1995
Ames, Iowa
Lit
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Largest Employers ED
Employees
Employer
Business
1994
Iowa State University 9
Hiaher education
0,500
City of Ames 0
Government
2.100
Iowa Dept. of Transportation
Dept. headquarters
1,114
Ames Community School District
Education
637
McFarland Clinic
SAVER -Sundstrand Corp,
Medical clinic
Hydro -transmission research/assembly
500
457
Ames Laboratories
Environmental Technology
400
3M Company
Abrasives
372
National Animal Disease Center
Animal Control Center
285
National Veterinarian Service Lab
Veterinarian lab services
270
T Source Official statement
7 Fall 1995 enrollment was 25.250. employees incluchm,,, part-time total 12.5(K)
1 Include, Mary Greeley Medical Center
financial factors:
Operating Funds Financial Performance (fiscal years ended 6/30 $000) Fil
- % Change -
1992 1993 1994 1992-93
1993-94 ED
Revenues
$18,655 $19.890 S23J06 6.6
16.2
Expenditures
19,183 19,635 2) 3,049 2.4
17.4
Operating surplus (deficit) 72
(164) 24 (19) -
-
:3 General. Special revenue. and Debt Service Funds (modified accrual method of accounting)
:0 General Fund only.
]DThe large increases in revenues and expenditures
are pnmanly due to increased intergovernmental revenues and related expenditures for
flood recovery and
property buyouts
1994 Sources of Revenue
% 1994 Items of Expenditure
%
Property taxes
36.8 Home & community environment
30.9
Intergovernmental:
Community protection
29.7
Sales tax
13.8 Human development
16.2
Road use tax
12.4 Debt service
1 1.4
Misc. other
11.0 Policv/admin.
10.1
Flood
9.8
Service charges
9.0
Use of money/property
2.6
License/permits
10
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General Obligation/Special Tax September 21, 1 "S 7
Ames, Iowa
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General Fund Financial Position (fiscal years ended 6/30 $000)
1992
1993
1994
Cash and investments
$111
$50
17 $1 ,926
Operating loans
-
-
-
Other current liabilities
397
355
0 1,429
Year-end cash surplus (deficit)
(S286)
(S305)
$497
Receivables
1,888
1,846
M 1.009
Fund Balance
1,659
1,663
1 o645
Unclesignated fund balance
1,444
1,350
1,399
Undesi-nated fund balance as % of C.F.Revenues
1 1.9
10.5
10.3
:11 Due to chance in accounting for pooled investments wherein each fund is now allocated its propomonal shares of
In previous years. General Fund held cash which was loaned to the other funds for their cash flow needs. in 1994.
the pooled investments
other fund, cash covered general fund cash
need, at year-end.
Other Financial Results (fiscal years ended 6/30 $000)
1991
1992
1993
1994
Sales tax receipts M S2,640
$2,960
$3,155
S3. 180
% Chan2e -15.7
12.1
6,6
0.8
Cash/In vestments:
Special Revenue Funds -
1,498
1,544
7 5.418
Enterprise Funds -Electric -
8.866
9360
9.651
Internal Service Funds -
3,787
4.887
4,315
Capital Projects Funds -
6.367
3,414
1,885
Includes the consolidation of Police and Fire Retirement Fund., into the Special Revenue Funds.
from Trust and Agency
Funds. in fiscal 1994
1995 sales receipts are estimated to be S1254.923
5079NOI N
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Copyright 1995 by Moody's Investors Service. Inc_ 99 Church Street. New York, New York 10007.
All rights reserved. ALL INFORMATION CONTAINED HEREIN IS COPYRIGHTED IN THE NAME OF MOODY'S INVESTORS SERVICE, INC. ("MOODY'S").
AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED. REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,
DISSEMINATED, REDISTRIB13TED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM
OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.
All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error a, well
as other factors. however. such information is provided "as is" without warranty of any kind and MOODY'S. in particular, makes no representation or warranty. express or implied. a,
to the accuracy. timeliness. completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall MOODY'S have any hability io
an} person or entity for (a) any loss or damage in whole or in part caused by. resulting from, or relating to. any error (nettligent or otherwise) or other circumstance or continiie'ncy
within or outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with the procurement. collection. compilation. analysis. interpretation.
communication. publication or delivery of any such information. or (b) any direct. indirect. special, consequential, compensatory or incidental damages whatsoever'(including without
limitation. lost profits), even if MOODY'S is advised in advance of the possibility of such damages. resulting from the use of or inability to use, any such information
The credit ratings, if any. constituting part of the information contained herein are. and must be construed solely as. statement, of I opinion and not statements of fact or
rcconuriendations to purchase. sell or hold any securities NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS.
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN ORN1ADE
BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely a, one factor in any investment decision ina& by or or,
behalf of any user of the information contained herein. and each such user must aceorchniz1v make it, own study and evaluation of each secants and of each issuer and guarantor w. uld
each Provider of credit support for, each security that it may consider Purchasing. holding or selling. Pursuant to Section l7(b) of the securities Act of 191',, IN16ODY'S heroh,
discloses that most Issuers of debt securities oncluding, corporate and municipal bond,. debentures. notes and commercial paper) and preferred stock rated by MOODY'S have, prior ic,
assignment of any rating. agreed to pay to MOODY'S for appraisal and rating, services rendered by it fee, ranging from S1,0W to S350.000
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DEBT SERVICE SCHEDULE
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IAttached is a debt service schedule for the Bonds.
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EVENSEN DODGE INC Page 14
371096
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$*.195'000 G.O. Corporate rvrnoaa oouua' Series 1995-o
cutx of umea, Iowa
Final Based on Bid of Harris Trust and ua.ioao oaou
oaar Ssavrco a000noLE
cArn
pazncrPAL
coopom
zmrEaoer
PEnzoo zooL
pzaraL TOTAL
6/
_
496
--------------
zos'000.uo
----------
4.500000
_------------
128'416.67
------ ----------
473'41*.*7
_______
e73.*16.67
12/
1/96
oo.ssn�oo
vn'sso.ou
6/
z/pr
350,000.00
4.500000
88,550.00
mo'ssn.uo
527'100.00
zz/
1/97
80,675.00
uu'ms.uo
6/
z/yn
sso'uou.on
«.soonvo
80,675.00
*zn'ms.on
511'350.00
12/
1/98
72,800.00
r2'800.00
s/
z/ps
sso.noo�nu
«.sonnoo
rz.onn,00
xaz'onn.00
495.600,00
o/
1/99
m'yzs.00
6*'925�00
o/
z/ u
ssn.000�no
«�aoonou
ou'yzs.ou
414'925.00
479,850.00
zz/
z/ o
ss'nrsoo
s6'875.00
a/
1/ z
sso'nuo.on
4.600000
56,875.00
406.875.00
«*s'rso.no
u/
1/ 1
48,825.00
eo'uzs.vo
s/
1/ z
sso'ouu.uo
4�600000
48.825.00
soo'ozs.00
447'650.00
o/
z/ u
*o.ns.on
40'775�00
s/
z/ 3
350,000.00
4.600000
ao'ns.00
390,775.00
431'550.00
zz/
l/ s
sz.rrs.00
sz'rzs.00
o/
l/ 4
350,000.00
o�000000
32.725�00
382.725,00
415.450.00
o/
l/ 4
24'675.00
24'675.00
s/
l/ s
350'000.00
4,600000
24'675�00
374'675.00
3e'350�00
o/
z/ s
16.e25.00
zo'sus.00
s/
z/ s
ssv'unn�ou
*.700000
1e.625.00
36e.625.00
ms.zso�on
zz/
z/ 6
o.*un.uu
8,400.00
o/
1/ r
sso.ono�no
4.800000
a'uoo.vn
358'400.00
»aa.ono.ou
____
u.zys'onono
---------------
1'200'116.67
_______
5'395'116.67
ACCRUED
9.631.25
o'ssz�zs
4.195.000�00
1'190'485.42
5'385'485.42
Dated zn/ 1/95 with Delivery of 10/19/95
anod Years 25'896.667
Average cuueou 4�634252
^.rzaye Life 6.173222
m z c * 4.796222 % oaioe 99.000119e
r z c * 4.825494 % From oozi.crr Date
it
� I
RESULTS OF SALE
The City received sealed bids for the purchase of the Bonds at 1:00 p.m. on Tuesday, September 26,
1995. Seven bids were received for the issue. The best bid was obtained from a bidding syndicate
headed by Harris Trust & Savings Bank of Chicago, Illinois, at a net interest cost in dollars of
� 1 $1,242,061.67 and a net interest cost of 4.7962%.
� I The following schedule presents a tabulation of the bids received by the City on the Bonds.
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— EvENSEN DODGE INC Page 16
371096
RESULTS OF SALE
SALE DATE: September 26, 1995 $4,195,000 General Obligation Corporate Purpose Bonds, Series 1995B
City of Ames, Iowa
Rating: Aal (Moody's)
Bank Qualified: No B B 1: 5.91 %
AA (S&P)
BIDDERS
Address
Year
Rate
Yield
HARRIS TRUST & SAVINGS BANK
Chicago
1996
4.50%
3.70%
Price
NORWEST INVESTMENT
1997
4.50%
3.90%
SERVICES, INC.
Minneapolis
1998
4.50%
4.05%
$4,153,055.00
Boatmen's National Bank of St. Louis
St. Louis
1999
4.50%
4.15%
Dougherty, Dawkins, Strand & Bigelow,
2000
4.60%
4.30%
NIC
Inc.
Minneapolis
2001
4.60%
4.40%
Josephthal, Lyon & Ross, Inc.
New York
2002
4.60%
4.50%
$1,242,061.67
Mesirow Financial Inc.
Chicago
2003
4.60%
4.60%
Northern Trust Securities, Inc.
Chicago
2004
4.60%
4.75%
NIR
Securities Corporation of Iowa
Chicago
2005
4.60%
4.85%
Tucker Anthony Incorporated
Chicago
2006
4.70%
5.00%
4.7962%
United Missouri Bank, N.A.
Kansas City
2007
4.80%
5.10%
U.S. Securities, Inc.
Hartford
FIRST OF AMERICA SECURITIES,
1996
4.40%
Price
INC.
Kalamazoo
1997
4.40%
1998
4.40%
$4,153,050.00
1999
4.40%
2000
4A0%
NIC
2001
4A5%
2002
4.50%
$1,242,303.33
2003
4.60%
2004
4.70%
NIR
2005
4.75%
2006
4.80%
4.7972%
2007
4.80%
EVENSEN DODGE INC Page 17
BIDDERS
Address
Year
Rate Yield
HUTCHINSON, SHOCKEY, ERLEY
1996
4.50%
PdQ-Q
& Co.
Chicago
1997
4.50%
1998
4.50%
$4,162,631.00
1999
4.50%
2000
4.50%
NIC
2001
4.60%
2002
4.70%
$1,266,202.33
2003
4.75%
2004
4.75%
NIR
2005
4.75%
2006
5.00%
4.8894%
2007
5.00%
PIPER JAFFRAY, INC.
Minneapolis
1996
3.85%
Price
EDWARD D. JONES & CO.
St. Louis
1997
4.00%
DOUGHERTY, DAWKINS, STRAND,
1998
4.15%
$4,153,050.00
& BIGELOW, INC.
Minneapolis
1999
4.25%
FBS INVESTMENT SERVICES, INC.
Minneapolis
2000
4.40%
NIC
JURAN & MOODY, INC.
St. Paul
2001
4.50%
Park Investment Corporation
Minneapolis
2002
4.60%
$1,270,321.67
2003
4.70%
2004
4.80%
NIR
2005
4.90%
2006
5.00%
4.9053%
2007
5.15%
PRUDENTIAL SECURITIES, INC.
Chicago
1996
4.40%
W99
1997
4.40%
1998
4.40%
$4,153,000.00
1999
4.50%
2000
4.50%
NIC
2001
4.50%
2002
4.60%
$1,274,970.00
2003
4.70%
2004
4.80%
NIR
2005
4.90%
2006
5.00%
4.9233%
2007
5.00%
EVENSEN DODGE INC Page 18
371096
BIDDERS
EVEREN SECURITIES, INC.
Address Year
Rate
Chicago 1996
4.625%
1997
4.625%
1998
4.625%
1999
4,625%
2000
4.625%
2001
4.625%
2002
4.625%
2003
4.70%
2004
4.80%
2005
4.90%
2006
5.00%
2007
5.125%
RAIN BOSWORTH INCORPORATED Chicago
Yield
pdc-el
$4,153,050.00
NIC
$1,290,712.50
NIR
4.9841%
1996
4.20%
Price
1997
4.20%
1998
4.30%
$4,153,091.79
1999
4.40%
2000
4.50%
NIC
2001
4.60%
2002
4.70%
$1,296,401.63
2003
4.80%
2004
4.90%
NIR
2005
5.00%
2006
5.10%
5.0061%
2007
5.20%
EVENSEN DODGE INC Page 19
.171096
I
COMPARATIVE SALES IN MARKET I'
The following table presents a comparison of the reoffering yields for similar issues to assess how
the City's issue performed in the marketplace. The table compares the City's sale to an "Al" rated
general obligation unlimited tax issue of Clive, Iowa, an "Aa" rated general obligation limited tax
issue of Kent County, Michigan, and an "Aa" rated general obligation unlimited tax issue of Keene,
New Hampshire. A comparison of the reoffering yields obtained by the four issues indicates that the
City of Ames' issue was priced competitively under prevailing market conditions.
Issuer: Ames, Clive, Kent County, Keene,
11-1- 1,.., A A i
Amount:
$4,195,000
$1,950,000
$1,020,000
$3,590,000
Issue:
General Obligation
General
General
General
Corporate Purpose
Obligation
Obligation
Obligation
Unlimited Tax
Limited Tax
Unlimited Tax
Sale Date:
9/26/95
9/21/95
9/21/95
9/26/95
Rating:
Aal/AA
Al
Aa
Aa
(Moody's/S&P)
(Moody's)
(Moody's)
(Moody's)
Qualified (1):
Yes
Yes
No
Yes
Callability:
2003 � Par
2003 (� Par
2005 oy 102
2005 (y� 102
Year
)dew
Yield
)de_W
Yield
1996
3.70%
3.70%
3.70%
1997
3.90%
4.00%
3.90%
4.00%
1998
4.05%
4.00%
4.05%
4.15%
1999
4.15%
4.10%
4.15%
4.25%
2000
4.30%
4.25%
4.25%
4.35%
2001
4.40%
4.40%
435%
4.40%
2002
4.50%
4.50%
4.45%
4.45%
2003
4.60%
4.60%
4.55%
4.55%
2004
4.75%
4.7k.
4.65%
4.65%
2005
4.85%
4.80%
4.75%
4.75%
2006
5.00%
4.90%
4.90%
5.00%
2007
5.10%
5.00%
5.10%
Qualified Tax -Exempt Obligation
ffi_=EVENSEN DODGE INC Page 20
371096
PURCHASER'S COMPENSATION
The following schedule computes the compensation generated by the purchaser on this issue. The
total compensation of 36,391.05 consisted of the discount bid on the Bonds of $41,945.00 less the
difference of $5,553-95 between the par amount of the Bonds and the price at which the Bonds were
reoffered. The compensation totaled 0.88% of par. This was an acceptable compensation for an
issue of this size and maturity length under then -current market conditions.
MM"" EVENSEN DODGE INC Page 21
371096
$4,195,000 G.O. Corporate Purpose
Bonds, Series 1995-B
City
of Ames,
Iowa
Final Based on Bid of Harris Trust -and Savings Bank
BOND PRODUCTION REPORT
DATED
10/ 1/1995
DELIVERY
10/19/1995
GROSS
DATE PRINCIPAL
BOND TYPE B/Y
COUPON
YIELD $PRICE PRICED TO CALL
PRODUCTION
- ....__... ...
6/ 1/96 345,000.00
- ....--------------
Standard 230
-------
4.5000
------
3.7000 100.479
--
346,652,.55
6/ 1./97 350,000,00
Standard 813
4.5000
3.9000 100.927
353,244,50
6/ 1/98 350,000.00
Standard 1747
4.5000
4.0500 101.102
353,857.00
6/ 1,/99 350,000.00
Standard 3030
4.5000
4.1500 101.160
354,060.00
6/ 1/ 0 350,000.00
Standard 4663
4.6000
4.3000 101.239
354,336.50
6/ 1/ 1, 350,000,00
Standard 6647
4.6000
4.4000 100.981
353,433.50
6/ 1/ 2 350,000.00
Standard 8980
4.6000
4.5000 100,562
351,967.00
6/ 1/ 3 350,000.00
Standard 1.1663
4.6000
4.6000 100.000
350,000.00
6/ l/ 4 350,000,11
Standard 14697
4,6000
4,7501 91,944
346,304.00
6/ 1../ 5 350,000.00
Standard 18080
4.6000
4.8500 98.091
343,318.50
6/ 1/ 6 350,000.00
Standard 21813
4,7000
5.0000 97.546
341,411.00
6/ 1./ 7 350,000.00
Standard 25897
4,8000
5.1000 97.389
340,861.50
4,195,000.00
4,189,446.05
Par Amount
4,195,000.00
Production
-5,553.95
Gross Production
4,189,446.05
99.8676055
Bond Insurance
0.00
0.0000000
Underwriters Discount
36,391.05
0,8674863
Average Take Down
0.00
0.0000000
Bid
4,1S3, 055. 00
99.0001192
Accrued
9,631.25
Net to Issuer
4,162,686.25
Gross Interest Cost
1,200,116.67
+Net. Discount
41,945.00
Net. Interest Cost.
1,242,061..67
N I C °s
4.7962222
Using
99.0001192
T I C o
4.8254943
From
Delivery Date
Bond Years
25,896.667
Average Coupon
4,634252
Average Life
6,173222
Micro Muni Debt Date:
10-13-1,99.5 :al 14:44:41
Filename: AMES Key: 95B
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371096
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MSEVENSEN DODGE INC Page 25
371096
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ADDENDUM DATED OCTOBER 6,1995
TO OFFICIAL STATEMENT DATED SEPTEMBER 19,1995
Ratings: Aal (Moody's Investors Service)
AA (Standard & Poor's Ratings Group)
In the opinion of Bond Counsel, under existing law, interest to be paid to the holders of the General Obligation Corporate purpose Bonds,
Series 1995 is excluded./rom gross income for federal income tax purposes.
OFFICIAL STATEMENT
(NEW ISSUE)
$4,195,000
General Obligation Corporate Purpose Bonds, Series 1995-B
CITY OF AMES, STORY COUNTY, IOWA
Dated: October 1, 1995
Due: June 1, 1996/2007
I he Bonds are issued pursuant to Division III of Chapter 384 of the Code oflowa for the purpose of providing funds for various
improvements in the City. The Bonds will be general obligations of the City for which its full faith and credit and unlimited
taxing powers are pledged.
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 ofThe 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, 1996, and interest on the Bonds, payable initially on June 1, 1996, and thereafter on each December I
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, 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.
'he Bonds will mature June I in the years and amounts as follows:
Interest Interest
ear Amount Raw Yield* (7tjsIP* year Amount Rate* Yield* CUSI
1996 $345,000 4.50% 3.70% 030807SZ5 2002 $350,000 4.60% 4.50% 030807TF8
1997 350,000 4.50% 3.90% 030807TA9 2003 350,000 4.60% 4.60% 0308071'G6
1998 350,000 4.50% 4,05% 030807T137 2004 350,000 4.60% 4.75% 030807TH4
1999 350,000 4.50% 4.15% 030807TC5 2005 350,000 4.60% 4.859,16 030807'rJO
2000 350,000 4.60% 430% 030807'rD3 2006 350,000 4.70% 5.00% 030807T'K7
2001 350,000 4.60% 4,40% 030807711 2007 350,000 4,80% 5.15% 030807TI,,5
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 P.L.L.P., Des Moines, Iowa.
An account group managed by Harris Trust & Savings Bank has agreed to purchase the Bonds from the City for
an aggregate price of $4,153,050.00. A list of the account members are listed on the reverse side of this addendum.
The Bonds will be available for delivery on or about October 19, 1995.
THIS ADDENDUM IS INCORPORATED BY REFERENCE AS OF THE DATE HEREOF INTO THE
OFFICIAL STATEMENT" OF THE CITY DATED SEPTEMBER 19, 1995, WITH RESPECT TO THE BONDS.
TAKEN IN CONJUNCTION WITH SAID OFFICIAL STATEMENT, THIS ADDENDUM SHALL
CONSTITUTE A "FINAL OFFICIAL STATEMENT" OF THE CITY WITH RESPECT TO THE BONDS AS
THAT TERM IS DEFINED IN RULE 15c2-12 OF THE SECURITIES AND EXCHANGE COMMISSION.
Harris Trust & Savings Bank