HomeMy WebLinkAboutA010 - Letter to Dorsey & Whitney dated July 26, 2001 - executed final delivery certificate, IRS Form 8038Coring People '4
Qualil * V ProgramsEwplioiwlSeivice
July 26, 2001
Dorsey &- Whitney LLP
801 Grand, Suite 3900
Des Moines, Iowa 50309
Attention Robert 11. Helmick
City Clerk's Office
515 Clark Avenue, P. 0. Box 811
Armes, 1A 50010
Phone: 515-239-5105
Fax: 515-239-5142
IZ E: Ames, Iowa
$10,080,000 General Obligation Corporate Purpose Bonds, Series 2001 A
Your File No. 419370-24
Dear Bob:
Enclosed please find the following documents pertaining to the above -referenced file.
1. Two fully executed copies of the Final Delivery Certificate
2. IRS 8038 form
3. Printed Bonds, numbered I thrU 12
If you have any questions, please call. Thank you for your assistance.
Sincerely,
Diane R. Voss
City Clerk
/dry
E,'nclosures
Aines/419370-24/f-'DC & Ltr
419370-24 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 $10,080,000 General Obligation Corporate Purpose Bonds, Series 2001 A, dated August
1, 2001 (the "Bonds"), the officers respectively above indicated; and that in pursuance of Chapter 3 84
of the Code of Iowa and a resolution adopted by the City Council on July 10, 2001 (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
$10,040,936.30, receipt of which is hereby acknowledged, which amount represents the principal
amount ofthe Bonds ($10,080,000), minus underwriter's discount ($3 9,063.70), plus accrued interest
($-0-). The Bonds mature on June I in each of the years, in the respective principal amounts and bear
interest payable semiannually, commencing December 1, 2001, at the respective rates, as follows:
Principal Interest Rate Principal Interest Rate
Year Amount Per Annum Year Amount Per Annum,
2002 $785,000 4% 2008 $835,000 4.10%
2003 $745,000 4% 2009 $870,000 4.20%
2004 $770,000 4% 2010 $875,000 4.30%
2005 $795,000 4% 2011 $900,000 4.40%
2006 $820,000 4% 2012 $905,000 4.60%
2007 $835,000 4% 2013 $945,000 4.70%
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
constructing certain street and storm sewer improvements (the "Projects").
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 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.
DORSFIN & WHITNEY LIT, Ai-rORNEYS, DES MOINE'S, IOWA
Ames/419370-24/FDC & Ltr
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 costs of the Projects (the "Total Project Costs") are estimated to be at least
$10,080,000.
2. The net sales proceeds of the Bonds are $10,091,336.30 (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 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: The City reasonably expects that at least 85% ofthe
Net Sales Proceeds will be expended for the purpose of paying costs of the Projects
within the Three Year Temporary Period.
C. Due Diligence Test: Acquisition and 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.
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 I and December I and principal of the Bonds on each June I (the 12-month
period ending on each June I 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
-2-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Ames/419370-24/FDC & Ltr
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 (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 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 (i) 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 (i) the date any such
expenditure was originally paid or (ii) the date the Project is 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.
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 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 the reasonably expected
economic life of the Projects.
8. Any 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. 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 Purchaser has advised the City that the reasonably expected
reoffering price of the Bonds to the public is $10,091,336.30, resulting in an original issue premium
of $11,336.30.
-3-
DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
Aines/419370-24/FDC & Ltr
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, 2002 (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, 2001).
We further certify that (i) at least 75% of the proceeds of the Bonds (along with any investment
earnings on such proceeds) will be spent on the construction of the Projects (not including the costs
of acquisition of equipment or other personal property), and the City will be the owner of the Projects,
and (ii) the City expects to spend the proceeds of the Bonds (along with any investment earnings on
such proceeds) in accordance with the following schedule: at least 10% within 6 months; at least 45%
within one year; at least 75% within eighteen months; and 100% within two years. The City
acknowledges that if it fails to spend the proceeds of the Bonds (along with the investment earnings
thereon) in accordance with the foregoing schedule, the City may have a rebate liability to the United
States pursuant to Section 148 of the Code. We further certify that the City will comply with the
investment requirements of Section 148 of the Code and the United States Treasury Regulations
relating thereto with respect to the proceeds of the Bonds, including the requirement to invest the
proceeds of the Bonds (and the investment earnings thereon) at fair market value, and to comply with
the bidding requirements for investment contracts. No later than August 1, 2006, August 1, 2011, and
June 1, 2013 (or such earlier date on which the Bonds are paid in full) (each a "Calculation Date"),
the City shall calculate the amount ofrebate, if any, owed to the United States pursuant to Section 148
of the Code and shall pay such amount to the United States within 60 days of such Calculation Date.
IN WITNESS WHEREOF, we have hereunto affixed our hands and the seal of the
aforementioned City, as of August 1, 2001.
(Seal)
CITY OF AMES IOWA
Mayor
City Clerk
City Trasurer
-4-
DORSEY & WFIITNI-1-Y LIT, ATTORNEYS, DES MOINES, IOWA
Form8038—G I Information Return for Tax -Exempt Governmental Obligations
Ili* Under Internal Revenue Code section 149(e)
(Rev. November 2000) 419370-24 Bonds J, See separate Instructions.
Department of the Treasury
Internal Revenue Service I Caution: If issue price is under $100,000, use Form 8038 -GC.
OMB No. 1545-0720
I Pnrt IT Rpnortina Authority If Amended Return, cneCK nere lo. I I
1 Issuer's name
2 Issuer's employer identification number
Ames, City of Iowa
42-6004218
3 Number and street (or P.O. box if mail is not delivered to street address)
Room/suite
4 Report number
515 Clark Avenue
3 2001-1
5 City, town, or post office, state, and ZIP code
6 Date of issue
Ames, Iowa 50010
8-1-01
7 Name of issue
8 CUSIP number
General Obligation Corporate Purpose Bonds
030807
9 Name and title of officer or legal representative whom the IRS may call for more information
10 Telephone number of officer or legal representative
Dorsey & Whitney LLP, Des Moines, IA Bond Counsel
1515-283-1000
Part 11 Type of Issue (check applicable box(es) and enter the issue price) -3ee instructions ana aitacri 5wiQuwu
11 ❑ Education .....................................
12 ❑ Health and hospital ................... ....... ......... ......... 12
13 [J Transportation ..................... ............... ...... 13
14 ❑ Public safety ........................................................... 14
15 ❑ Environment (including sewage bonds) .........................
............. I ... 15
16 ❑ Housing ...................................................... ............. 16
. ........
17 ❑ Utilities ................. ............. ........ : , , * * * * , , *.......17
18 E] Other. Describe Ili. street and storm sewer improvements 18 10,0'.91,336
19 If obligations are TANS or RANs, check box ► E] If obligations are BANS, check box ...... ► El
20 If obligations are in the form of a lease or installment sale, check box ................. oo 1:1
Part III
I Description of Obligations. (Complete for the entire issue for which this form is being filed.)
(a) Final maturity date
(b) Issue price
I
(c) Stated redemption
I price at maturity
(d) Weighted
average maturity
(e) Yield
21
6-1-2013
Is 10,091,336
1 $ 10,080,000
6.54 years
4.2913%
Part IV 1 Uses of Proceeds of Bond Issue (including underwriters' discount)
22 Proceeds used for accrued interest ............................... ............... 22
23 Issue price of entire issue (enter amount from line 21, column (b)) .......................... 23 10f 091_1 336
24 Proceeds used for bond issuance costs (including underwriters' discount) 24 123,183
25 Proceeds used for credit enhancement. . ......................... 25
26 Proceeds allocated to reasonably required reserve or replacement fund .. 26
27 Proceeds used to currently refund prior issues ..................... 27
28 Proceeds used to advance refund prior issues ..................... 28
29 Total (add lines 24 through 28) ...................................................... 29 1 12 3, 18 3 0 0
30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) . ...... 301, 968 �153 00
Part V Description of Refunded Bonds (Complete this part only for refunding bonds.)
31 Enter the remaining weighted average maturity of the bonds to be currently refunded ........... is-, years
32 Enter the remaining weighted average maturity of the bonds to be advance refunded ........... I,. years
33 Enter the last date on which the refunded bonds will be called ......................
34 Enter the date(s) the refunded bonds were issued lo.
Part VI I Miscellaneous
35 Enter the amount of the state volume cap allocated to the issue under section 141 (b)(5) 35
36a Enter the arruit of gross proceeds irvested or tobe irvested in a guaranteed irvestri-ent co -tract Dee imtructiuis) .... 36a
lo Enter the final maturity date of the guaranteed investment contract 00.
37 Pooled financings: a Pioceads of this issue thEt are tobe used toniceIcarls to other gxernmetai Units ........... 37a
b If this issue is a loan made from the proceeds of another tax-exempt issue, check box 10. El and enter the name of the
issuer op- and the date of the issue pip.
38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(111) (small issuer exception), check box ............ 110. nX
39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ........ ................... ..... No- 11
40 If the issuer has identified a hedge, check box ................................. ................ ....... ► 11
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,
they are trqe, correct, and complete.
Sign Diane R. Voss
Here 8-1-01 City Clerk
Signature of issuer's authorized representative Date Type or print name and title
For Paperwork Reduction Act Notice, see page 2 of the Instructions. ISA Form 8038-G (Rev. 11-2000)
STF FE06403F