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HomeMy WebLinkAboutA014 - Letter to Dorsey & Whitney dated December 3, 2001 - final delivery certificateCaring People 'q Quality y Avgra,w EveptlowlSo vice December 3, 2001 Dorsey & Whitney LLP 801 Grand, Suite 3900 Des Moines, Iowa 50309 Attention Robert H. Helmick City Clerk's Office 515 Clark Avenue, P. 0. Box 811 Aines, ]A 50010 Phone: 515-239-5105 Fax: 515-239-5142 RE: Ames, Iowa $5,155,000 General Obligation Fire Station and Refunding Bonds, Series 2001B Your File No. 419370-23 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 Printed bonds, numbered I thru 12, were forwarded to The Depository 'I'l-LISt Company via 1','edF'x #4549 1827 0536. If you have any questions, please call. Thank you for Your assistance. Sincerely, Diane R. Voss City Clerk /dry Enclosures Ames/419370-23/1"DC & Ltr 419370-23 FDC 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 $5,155,000 General Obligation Fire Station and Refunding Bonds, Series 2001 B, dated December 1, 2001 (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 November 13, 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 $5,165,388.46, receipt of which is hereby acknowledged, which amount represents the principal amount of the Bonds ($5,155,000), plus premium ($8,162.73), plus accrued interest ($2,225.73). The Bonds mature on June I in each of the years, in the respective principal amounts and bear interest payable semiannually, commencing June 1, 2002, at the respective rates, as follows: Principal Interest Rate Principal Interest Rate Year Amount Per Annurn Year 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% 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 i 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 paying the cost, to that extent, of constructing and equipping a fire station in and for the City (the "Project") and the refunding of $3,770,000 of the City's General Obligation Refunding Bonds, Series 1993, dated February 15, 1993 (the "Optional Series 1993 Bonds"), as of January 1, 2002 (the "Redemption Date"). 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. -I- DORSEY & WI IITNEY LLP, ATTORNEYS, DES MOINES, IOWA I Ames/419370-23/F-DC & 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: L The Total Project Costs are estimated to be at least $1,3 10,000. 2. The net sales proceeds of the Bonds are $5,186,229.30 (the "Net Sales Proceeds"), the same being the Issue Price thereof. 2. 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 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. 3. 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 Project Net Sales Proceeds (as hereinafter defined) are for expenditures made more than 60 days prior to the date of 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 Project 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 Project 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. a. A portion ($3,846,599.65) of the Net Sales Proceeds (the "Refunding Net Sales Proceeds") will be applied to the redemption of the Optional Series 1993 Bonds within 90 days of the date hereof (the "90-day Temporary Period") and, until so applied, will be invested by the City without restriction as to yield. -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA . Aines/419370-23/FF)C & Ltr b. All of the proceeds of the Optional Series 1993 Bonds have been expended for the purposes for which they were issued. C. Not more than 50% of the proceeds of the Optional Series 1993 Bonds 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). 4. The remaining Net Sales Proceeds, including investment earnings thereon (the "Project Net Sales Proceeds") 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 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 Project Net Sales Proceeds; b. Expenditure Test: At least 85% of Project 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 Project Net Sales Proceeds to the payment of Total Project Costs will proceed with due diligence. 5. The weighted average maturity of the Bonds does not exceed 120% of the weighted average of (a) the reasonably expected economic life of the Project; (b) the remaining reasonably expected economic life of the facilities originally financed by the Series 1993 Bonds. 6. The 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 interest payment date. 7. 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 Note issuer whose arbitrage certifications may not be relied upon. -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Aines/419370-23/rDC & Ltr We further certify that the Purchaser has advised the City that the reasonably expected reoffering price of the Bonds to the public is $5,186,229.30. 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. All payments coming due before the collection of any such taxes will be paid promptly when due from legally available funds. IN WITNESS WHEREOF, we have hereunto affixed our hands and the seal of the aforementioned City, as of December 6, 2001. (Seal) CITY OF AMESJ, I WA Mayor City Clerk 7 City Treasqer post -it", Fax Note 7671 ro /I "Orn C coduwt _'0 1 7 Fax ft HF, 4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA 419370-23 GO Bonds Form 8038-G Information Return for Tax -Exempt Governmental Obligations ► Under Internal Revenue Code section 149(e) OMB No, 1545-0720 (Rev. November 2000) Do, See separate Instructions. Department of the Treasury Internal Revenue Service Caution: ff the issue price is under $100,000, use Form 8038-GC. Reportinq Authority If Amended Return, check here 1101 LJ 1 Issuer's name 2 Issuer's employer identificat ion number City of Ames 42i 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 2001-2 5 City, town, or post office, state, and ZIP code 6 Date of issue Ames, Iowa 50010 5-1-01 7 Name of issue 8 CUSIP number General Obligation Fire Station and Refunding Bonds, Series 2001B 9 Name and title of officer or legal representative whom the IRS may call for more information Telephon-unberof off iceorlegatepeserdlive Dorsey & Whitney LLP, Des Moines, IA Bond Counsel ( 515 ) 283-1000 _ r7?M Tvne of Issue (check annfirahip Innyll't-0 and enter the issue nricel See instructions and attach schedule 11 El Education . . . . . . . . . . . . . . . . . . . . 12 El Health and hospital . . . . . . . . . . ,(, .. . . . . . . . . . . 13 El Transportation . . . . . . . . . . . . . . 4. * � . . . . . . . 14 El Public safety . . . . . . . . . . . . . . . . . . . . . . . . 15 El Environment (including sewage bonds) . . . . . . . . . . . 16 EJ Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 El Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2 Other. Describe III, fire station and refunding 19 If obligations are TANS or RANs, check box lo, El If obligations are BANS, check box 110. 0 20 If obl' t' s re in the form of a lease or installment sale, check box ► El 11 12 13 14 15 16 17 18 5,186,229 i6k AM AW. M Description of Obli ations. Complete for the entire issue for which this form is bein filed. (a) Final maturity date (b) Issue price (c) Stated redemption price at maturity (d) Weighted average maturity (e) Yield 21 06/01/13 $ 5,186,229 $ 5,155,000 3.64 years 3.2149 % 17MIP1 Uses of Proceeds of Bond Issue(including underwriters' discount) 22 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . 23 Issue price of entire issue (enter amount from line 21, column (b)) . . . . . . . . . . 24 Proceeds used for bond issuance costs (including underwriters' discount) 24 68,067 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 3,i4IS 00 28 Proceeds used to advance refund prior issues . . . . . 28 29 Total (add lines 24 through 28) . . . . . . . . . . . . . . . . . . . . . 30 Nonrefunding proceeds of theissue(subtract line 29 from line 23 and enter amount here) . . . 1 22 2,226 23 5,186,229 29 3,914,667 30 1 1,271,562 D for refunding bonds.) 31 Enter the remaining weighted average maturity of the bonds to be currently refunded , . . 00, 2.85 years 32 Enter the remaining weighted average maturity of the bonds to be advance refunded . . . 00, years 33 Enter the last date on which the refunded bonds will be called . . . . . . . . IN. ____01/01/02 34 Enter the date(s) the refunded bonds were issued Po02/25(93 - LMM—Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) 35 36a Enter the arrourt of gross proaxxt- irm-,sted or to be imAe-qed in a guararteed investor x-t contract (see instwions) 36a b Enter the final maturity date of the guaranteed investment contract No- 37 Pooled finarcings: a Proceeds of this issue that are to be used to make loans to other governmental units _37 a b If this issue is a loan made from the proceeds of another tax-exempt issue, check box III,- El and enter the name of the issuer ► and the date of the issue 10- 38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(Ill) (small issuer exception), check box 39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box . . . . . . . . . El 40 If the issuer has identified a hedge, check box . . . . . . . . . . . . . . . . . . . . . . . El 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 true, correct, and complete, Sign Here 12/06/01 Diane R. Voss, City Clerk Signature of issuer's authorized representative Date IF Type or print name and title For Paperwork Reduction Act Notice, see page 2 of the Instructions. Cat. No. 63773S Form 8038-G (Rev, 11-2000)