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HomeMy WebLinkAboutA014 - Certification from City of Ames officers dated July 18, 2000E3 Aines/419370-22/FDC & Ltr 419370-22 FDC We, the undersigned Mayor, t-:ity 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 $5,870,000 General Obligation Corporate Purpose Bonds, Series 2000, dated July 1, 2000 (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 June 27, 2000 (the "Resolution"), the Bonds have been heretofore lawfully authorized and this day by us lawfully issued, sold and delivered to the purchaser thereof (the "Purchaser"), and the Purchaser has paid the City $5,845,289.63, receipt of which is hereby acknowledged, which amount represents the principal amount of the Bonds ($5,870,000), minus total discount ($38,408), plus accrued interest ($13,697.63). The Bonds mature on June I in each of the years, in the respective principal amounts and bear '--terest payable semiannually, commencing December 1, 2000, at the respective rates, as follows: Principal Interest Rate Principal Interest Rate Year Amount Per Annum Year Amount Per Annurn 2001 $390,000 4.75% 2007 $490,000 4.95% 2002 $385,000 4.75% 2008 $515,000 5% 2003 $400,000 4.75% 2009 $545,000 5.05% 2004 $425,000 4.75% 2010 $570,000 5.10% 2005 $445,000 4.80% 2011 $605,000 5.10% 2006 $465,000 4.85% 2012 $635,000 5.15% Each of the Bonds has been executed with the facsimile signatures of the aforesaid Mayor and City Clerk, 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 Bond 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 works and facilities useful for the collection and disposal of surface waters and streams; and the construction of a single surface ice facility to be co -owned by the City and Iowa state University (the "Projects"). C� 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 on the Bonds, and that none of the proceedings incident to the authorization and issi.] Bonds has been repealed or rescinded. -I- DORSEY & WHITNEY LLP, ATI-ORNEYS, DES MOINES, IOWA Ames/419370-22/FDC & Ur 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 ce.cify as follows: 1. The total costs of the Projects are estimated to be at least $5,870,000. 2. The net sales proceeds of the Bonds are $5,867,109.15 (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 or, within six months of the date hereof, will enter into binding contracts for the Projects with third parties (e.g. engineers or contractors); i. 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; b. Expenditure Test: At least 85% of Net Sales Proceeds will be applied to the payment of costs of the Projects 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 costs of the Projects will proceed with due diligence. -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA E Ames/419370-221F17C & Ltr 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 Purchaser has advised the City that the reasonably expected reoffering price of the Bonds to the public is $5,867,109.15, resulting in an original issue discount of $2,890.85. 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, C, 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, commencing with the levy of taxes for collection in the fiscal year beginning July 1, 2001 (provisions having been previously made, and funds being on hand and pledged to pay the interest on and principal of the Bonds coming due in the fiscal year which began July 1, 2000). IN WITNESS WHEREOF, we have hereunto affixed our hands and the seal of the aforementioned City, as of July 18, 2000. (Seal) CITY OF AMES, IOWA Mayor City Clerk -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Arnes/419370-22/FDC & LAr City Treasurer -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA