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Home My WebLink AboutA018 - Letter to Dorsey & Whitney dated April 30, 2002, 1K Coring People 14 Qlitv Poga,&5 F�. eplion,al Servile April 30, 2002 Dorsey & Whitney LLP 801 Grand, Suite 3900 Des Moines, Iowa 50309 Attention Robert 1-1. Helmick City Clerk's Office. 515 Clark Avenue, P. 0. Box 811 Ames, IA 50010 Phone: 515-239-5105 Fax: 515-239-5142 RE: Arrics, Iowa $3,475,000 General Obligation Corporate Purpose Bonds, Series 2002 Your File No. 419370-26 Dear Bob: Enclosed please find the following documents pertaining to the above-referericcd file. 1. Certificate as to the City's outstanding general obligation indebtedness. 2. Two fully executed copies of the Final Delivery Certificate 3. IRS 8038 form Printed bonds, numbered I thru 19, were forwarded to The Depository Trust Company via FedEx 4819864746405 on April 26, 2002. If you have any questions, please call. Thank you for your assistance. Sincerely, T I! Diane R. Voss City Clerk /dry Enclosures Ames/419370-26/Debt Cen PIMG Rertum To DORSEY & WHITNEY STATE OF IOWA ATTORNFY9 11T COUNTY OF STORY SS: 801 r", CITY OF AMES De,, 1, the undersigned, Clerk of the aforementioned City, do hereby certify that the City currently has outstanding the following General Obligation indebtedness, of every kind and nature (excluding the current issue), urban renewal tax increment revenue obligations and local option sales tax revenue bonds: SCHEDULE A (BONDILOAN AGREEMENT NOTE DEBT) Date of Maturity Issue Type Amount Date (List annual principal payments) 05/01/87 Corporate Purpose $ 50,000 December 1, 2002 $100,000 $1,135,000 General Obligation Refunding Bonds Dated February 15, 1993 Due Principal Interest Rate Due Principal Interest Rate June I Amount Per Annum June 1 Amount Per Annum 2002 $755,000 4.90% (Excludes refunded maturities) 2003 $380,000 5% $870,000 General Obligation Corporate Purpose Bonds, Series 1994A Dated January 1, 1994 Due Principal Interest Rate Due Principal Interest Rate June I Amount Per Annum June 1 Amount Per Annum 2002 $290,000 4% 2004 $290,000 4.10% 2003 $290,000 4.10% -1- DORSEY & WHITNEY I-I.P, ATTORNEYS, DES MOINES, IOWA Ames/419370-26/Debt Cert SCHEDULE A (BOND/LOAN AGREEMENT NOTE DEBT) — Cont'd. $825,000 General Obligation Corporate Purpose Bonds, Series 1994B Dated October 1, 1994 Due Principal Interest Rate Due Principal Interest Rate June I Amount Per Annum June 1 Amount Per Annum 2002 $165,000 5.20% 2005 $165,000 5.40% 2003 $165,000 5.30% 2006 $165,000 5.50% 2004 $165,000 5.40% $5,745,000 General Obligation Corporate Purpose Bonds, Series 1995A Dated May 1, 1995 Due Principal Interest Rate Due Principal Interest Rate June I Amount Per Annum June I Amount Per Annum 2002 $715,000 5% 2007 $720,000 5.25% 2003 $720,000 5.10% 2008 $480,000 5.25% 2004 $720,000 5.10% 2009 $475,000 5.25% 2005 $720,000 5.20% 2010 $475,000 5.25% 2006 $720,000 5.25% $2, 100,000 General Obligation Corporate Purpose Bonds, Series 1995B Dated October 1, 1995 Due Principal Interest Rate Due Principal Interest Rate June I Amount Per Annum June I Amount Per Annum 2002 $350,000 4.60% 2005 $350,000 4.60% 2003 $350,000 4.60% 2006 $350,000 4.70% 2004 $350,000 4.60% 2007 $350,000 4.80% -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Ames/419370-26/Debt Cert SCHEDULE A (BOND/LOAN AGREEMENT NOTE DEBT) — Cont'd. $3,600,000 General Obligation Corporate Purpose Bonds, Series 1997A Dated June 1, 1997 Due Principal Interest Rate Due Principal Interest Rate June I Amount Per Amium June 1 Amount Per Annum 2002 $450,000 4.60% 2006 $450,000 4.60% 2003 $450,000 4.60% 2007 $450,000 4.60% 2004 $450,000 4.60% 2008 $450,000 4.60% 2005 $450,000 4.60% 2009 $450,000 4.60% $3,840,000 General Obligation Corporate Purpose Bonds, Series 1998A Dated June 15, 1998 Due Principal Interest Rate Due Principal June I Amount Per Annum June I Amount 2002 $430,000 4.20% 2007 $425,000 2003 $430,000 4.20% 2008 $425,000 2004 $430,000 4.20% 2009 $425,000 2005 $425,000 4.20% 2010 $425,000 2006 $425,000 4.20% $1,885,000 General Obligation Refunding Bonds, Series 1998B Dated December 1, 1998 Interest Rate Per Annum 4.20% 4.20% 4.25% 425% Due Principal Interest Rate Due Principal Interest Rate June 1 Amount Per Annum June I Amount Per Annum 2002 $640,000 3.60% 2004 $615,000 3.70% 2003 $630,000 3.65% -3- DOF—SEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Ames/414370-26/Debt C'ert SCHEDULE A (BOND/LOAN AGREEMENT NOTE DEBT) — Cont'd. $3,485,000 General Obligation Corporate Purpose Bonds, Series 1999 Dated June 1, 1999. Due Principal. Interest Rate Due Principal Interest Rate June 1 Amount Per Annum June 1 Amount Per Annum 2002 $295,000 3.80% 2007 $350,000 4.25% 2003 $305,000 3.90% 2008 $365,000 4.35% 2004 $315,000 4% 2009 $380,000 4.375% 2005 $325,000 4.10% 2010 $395,000 4.40% 2006 $340,000 4.1.5% 2011 $415,000 4.45% $5,480,000 General Obligation Corporate Purpose Bonds, Series 2000 Dated July 1, 2000 Due Principal Interest Rate Due Principal Interest Rate June 1 Amount Per Annum June 1 Amount Per Annum 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% 2007 $490,000 4.95% $10,080,000 General Obligation Corporate Purpose Bonds, Series 2001A Dated August 1, 2001 Due Principal Interest Rate Due Principal Interest Rate June 1 Amount Per Annum June 1 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% -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Ames/419370-26/Debt Cert SCHEDULE A (BOND[LOAN AGREEMENT NOTE DEBT) — Cont'd. $5,155,000 General Obligation Fire Station and Refunding Bonds, Series 2001E Dated December 1, 2001 Due Principal Interest Rate Due Principal Interest Rate June I Amount Per Annum June I Amount Per Annum 2002 $920,000 2.50% 2008 $445,000 3.60% 2003 $895,000 3.00% 2009 $110,000 3.70% 2004 $895,000 3.00% 2010 $115,000 3.75% 2005 $485,000 3.00% 2011 $120,000 3.85% 2006 $465,000 3.10% 2012 $120,000 4.00% 2007 $460,000 3.40% 2013 $125,000 4.10% (Please list here or attach a separate maturity schedule for any other outstanding issues of general obligation bonds andlor loan agreement notes.) -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Ames/419370-26/Debt Cert SCHEDULE B (OTHER GENERAL OBLIGATIONS) Type of General Obligation Amount (Here list any other obligations of the City which extend beyond the end of the current fiscal year, such as long-term leases, installment sales contracts, etc. If there are none, please insert the word "none". Please consult with either our office or Evensen Dodge, Inc. before completing this section.) SCHEDULE C (URBAN RENEWAL TAX INCREMENT REVENUE OBLIGATIONS) Date Name of Issue Principal Amount Outstanding_ (Please list here or attach a separate maturity schedule for any outstanding urban renewal tax increment revenue obligations.) SCHEDULE D (LOCAL OPTION SALES TAX REVENUE BONDS) Date of Maturity Issue Amount Date (List annual principal payments) (Please list here or attach a separate maturity schedule for any outstanding local option sales tax revenue obligations.) -6- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Ames/419370-26/Debt Cert WITNESS MY HAND and the seal of the City hereto affixed this day of A 2002. City Clerk (Seal) -7- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Ames/4193t-26/FW & Lt, 419370-26 FDC - G.O. We, the undersigned Mayor and City Clerk, 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 $3,475,000 General Obligation Corporate Purpose Bonds, Series 2002, dated May 1, 2002 (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 9, 2002 (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 $3,447,200, receipt of which is hereby acknowledged, which amount represents the principal amount of the Bonds ($3,475,000), minus underwriter's discount ($27,800), plus accrued interest ($-0-). The Bonds mature on June 1 in each of the years, in the respective principal amounts and bear interest payable semiannually, commencing December 1, 2002, at the respective rates, as follows: Principal Interest Rate Principal Interest Rate Year Amount Per Annum Year Amount Per Annum 2003 $120,000 4 % 2013 $185,000 4.500% 2004 $130,000 4 % 2014 $190,000 4.600% 2005 $135,000 4 % 2015 $200,000 4.700% 2006 $140,000 4 % 2016 $210,000 4.800% 2007 $145,000 4 % 2017 $220,000 5 % 2008 $150,000 4 % 2018 $230,000 5 % 2009 $155,000 4.150% 2019 $240,000 5 % 2010 $160,000 4.250% 2020 $255,000 5.100% 2011 $170,000 4.250% 2021 $265,000 5.125% 2012 $175,000 4.375% 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 Bond Registrar and Paying Agent. We further certify that the Bonds are being issued for the purpose of defraying the cost of the acquisition, construction, improvement and equipping of parks and recreation grounds and the developing of a watershed protection area necessary and useful for the health and welfare of its citizens, including the acquisition of real estate therefor, on and adjacent to the area known as "Halletts Quarry" (the "Project"). 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 4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Arnev414'1 931k4-2 6/FDC & Lt, 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: The Total Project Costs are estimated to be at least $3,475.000. 2. The net sales proceeds of the Bonds are $3,476,086.30 (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 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 Project 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 Total Project Costs within the Three Year Temporary Period; and C. Due Diligence Test: Acquisition and construction of the Project 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 1 and December I and principal of the Bonds on each June I -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA AmesA193i-,126/IzDC & Ur (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 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 adopted a resolution declaring its official intent to acquire and construct the Project and finance the same with bonds or other obligations (the "Intent Resolution"); none of the Total Project Costs to be paid for from the Net Sales Proceeds are for expenditures made more than 60 days prior to the date of the adoption of the Intent Resolution, 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 Project, 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 3 years after the later of (i) the date any such expenditure was originally paid or (ii) the date the Project is placed in service (or abandoned); 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 Project. 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 $3,476,086.30, resulting in an original issue premium of $1,086.30. -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Ames/419370-26/FDC & Ltr 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, 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, 2003 (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 begins July 1, 2002). 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 May 1, 2007, May 1, 2012, May 1, 2017, and June 1, 2021 (or such earlier date on which the Bonds are paid in full) (each a "Calculation Date"), the City shall calculate the amount of rebate, 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 May 1, 2002. (Seal) CITY OF S, IOWA Mayor City Clerk City Treasur -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Form8038-G I Information Return for Tax -Exempt Governmental Obligations 0o. Under Internal Revenue Code section 149(e) OMB No. 1545-0720 (Rev, November 2000) 419370-26 Bonds 0o. See separate Instructions. ea Department of the Treasury ve u Internal Revenue Service Caution: ff the issue price is under $100,000, use Form 8038-GC. Part I Reporting ng Authority If Amended Return, check here Ili. ❑ 1 Issuer's name 2 Issuer's employer identification number CITY OF AMES Cnb 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 1"./M t ^ . . 3 2002-1 5 City, town, or post office, state, and ZIP code W VrfUIC 11% 6 Date of issue Ames, Iowa 50010 6 Nay 1, 2002 7 Name of issue 8 CUSIP number General Obligation Corporate Purpose Bonds 1030807 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 I Part 111 Type of Issue (check applicable box(es) and enter the issue price) See instructions and attach schedule 11❑ Education ..... ....... 11 12 ❑ Health and hospital ........................................................... 12 13 ❑ Transportation .............................................................. 13 14 ❑ Public safety. . . ..... ....................................................... 14 15 ❑ Environment (including sewage bonds) ............................................ 15 16 Housing ......................................... ......................... 16 17 E] Utilities ............... .................................................... 17 18 [2 Other. Describe ► park & recreation 18 3,476,086 19 If obligations are TANS or RANs, check box o. [:] If obligations are BANS, check box ...... op. 1:1 20 If obligations are in the form of a lease or installment sale, check box ................. 10. El 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 (c) Stated redemption I price at maturity (d) Weighted I average maturity (e) Yield 21 6-1-2021 $ 3,476,0861$ 3,475,000 1 11.351 years 4.7227% Fp—ar7jiv I uses of Proceeds of Bond Issue (including underwriters' discount) --iT 22 Proceeds used for accrued interest .............................................. - (0-1) 23 — 3 , 4 7 6 , 0 8 6.. 23 Issue price of entire issue (enter amount from line 21, column (b)) .......................... . 24 Proceeds used for bond issuance costs (including underwriters' discount) 24 28,886 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 28,886.00 30 A, 4 4 7 , 2 0 0 . 0 0 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) ........ . [Part V I 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 ...... .... P* - years 32 Enter the remaining weighted average maturity of the bonds to be advance refunded ........... 0- years 33 Enter the last date on which the refunded bonds will be called ............................ 10. 34 Enter the date(s) the refunded bonds were issued poo. 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 amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions) .... 36a b Enter the final maturity date of the guaranteed investment contract 11. 37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units ........... 37a b If this issue is a loan made from the proceeds of another tax-exempt issue, check box 10,• F-1 and enter the name of the issuer jo. and the date of the issue ► 38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(111) (small issuer exception), check box ............ No- 39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box .................................. No- ❑ 40 If the issuer has identified a hedge, check box ......................... ................ Under penalties of perjury, I declare that I have examined this return and they are true, correct, and complete. Sign Here of issuer's authorized representative npanytng scn( 5-1-02 Date statements, and to the best of my knowledge and belief, Diane R. VOSS City Clerk Type or print name and title For Paperwork Reduction Act Notice, see page 2 of the Instructions. ISA STF FED6403F Form 8038-G (Rev. 11-2000)