HomeMy WebLinkAboutA016 - Letter from Dorsey & Whitney dated October 15, 2002DORSEY & WHITNEY LLP
ATTORNEYS AT LAW
MINNEAPOLIS
801 GRAND, SUITE 3900
COSTA MESA
NEW YORK
DES MOINES, IOWA 50309
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NORTHERN VIRGINIA
TOKYO
DES MOINES
MISSOULA
LONDON
VANCOUVER
ANCHORAGE
TORONTO
SALT LAKE CITY
SHANGHAI
BRUSSELS
October 15, 2002
We hereby certify that we have examined a certified copy of the proceedings of the City
Council of the City of Ames, in the County of Story, State of Iowa (the "Issuer"), passed
preliminary to the issue by the Issuer of its General Obligation Refunding Bonds, Series 2002C
(the "Series 2002C Bonds") in the amount of $7,580,000, dated October 15, 2002, in the
denomination of $5,000 each, or any integral multiple thereof, maturing on June I in each of the
respective years and in the principal amounts and bearing interest payable semiannually,
commencing June 1, 2003, at the respective rates, as follows:
Principal
Interest Rate
Principal
Interest Rate
Year
Amount
Per Annum
Year
Amount
Per Annum,
2003
$1,405,000
2.50%
2007
$1,060,000
3.50%
2004
$1,300,000
3.00%
2008
$ 450,000
3.50%
2005
$1,265,000
3.00%
2009
$ 435,000
3.50%
2006
$1,240,000
3.50%
2010
$ 425,000
3.50%
Based upon our examination, we are of the opinion, as of the date hereof, that:
1. The aforementioned proceedings show lawful authority for such issue under the
laws of the State of Iowa.
2. The Series 2002C Bonds are valid and binding general obligations of the Issuer.
3. All taxable property within the corporate boundaries of the Issuer is subject to the
levy of taxes to pay the principal of and interest on the Series 2002C Bonds without
constitutional or statutory limitation as to rate or amount.
4. The interest on the Series 2002C Bonds (including any original issue discount
properly allocable to an owner thereof) is excluded from gross income for federal income tax
purposes and is not an item of tax preference for purposes of the federal alternative minimum tax
imposed on individuals and corporations; it should be noted, however, that for the purpose of
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computing the alternative minimum tax imposed on corporations (as defined for federal income
tax purposes), such interest is taken into account in determining adjusted current earnings. The
opinions set forth in the preceding sentence are subject to the condition that the Issuer comply
with all requirements of the Internal Revenue Code of 1986 (the "Code") that must be satisfied
subsequent to the issuance of the Series 2002C Bonds in order that interest thereon be, or
continue to be, excluded from gross income for federal income tax purposes. The Issuer has
covenanted to comply with each such requirement. Failure to comply with certain of such
requirements may cause the inclusion of interest on the Series 2002C Bonds in gross income for
federal income tax purposes to be retroactive to the date of issuance of the Series 2002C Bonds.
5. The Series 2002C Bonds are not "qualified tax-exempt obligations" within the
meaning of Section 265(b)(3) of the Code, and, therefore, in the case of certain financial
institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is not allowed for
that portion of such financial institutions' interest expense allocable to interest on the Series
2002C Bonds.
We express no opinion regarding other federal tax consequences arising with respect to
the Series 2002C Bonds,
The rights of the owners of the Series 2002C Bonds and the enforceability thereof may be
subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting
creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, and their
enforcement may also be subject to the exercise of judicial discretion in appropriate cases.
DORSEY & WHITNEY LLP
/mies/419370-27/FDC & I.tr
419370-27 FDC — GO Refunding Bonds
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 $7,580,000 General Obligation Refunding Bonds, Series 2002C, dated
October 15, 2002 (the "Series 2002C 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 September 24, 2002 (the "Resolution"), the Series 2002C 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 $7,786,315.40, receipt of which is
hereby acknowledged, which amount represents the purchase price of the Series 2002C Bonds
($7,786,315.40), plus accrued interest thereon ($-0-). The Series 2002C Bonds mature on June I
in each of the years, in the respective principal amounts and bear interest payable semiannually,
commencing June 1, 2003, at the respective rates, as follows:
Principal
Interest Rate
Principal
Interest Rate
Year
Amount
Per Annum
Year
Amount
Per Annum
2003
$1,405,000
2.50%
2007
$1,060,000
3.50%
2004
$1,300,000
3.00%
2008
$ 450,000
3.50%
2005
$1,265,000
3.00%
2009
$ 435,000
3.50%
2006
$1,240,000
3.50%
2010
$ 425,000
3.50%
Each of the Series 2002C 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 aforesaid City Treasurer has authenticated each of the Series 2002C Bonds as
the Registrar and Paying Agent, and has registered the Series 2002C Bonds as to principal and
interest in the names of the owners on the registration books of the City.
We further certify that the Series 2002C Bonds are being issued for the purpose of
providing funds to pay a portion of the cost of advance refunding certain outstanding bonds of
the City, as follows:
Name of Issue
General Obligation Corporate Purpose
Bonds, Series 1994B (the "Series 1994B Bonds")
General Obligation Corporate Purpose
Bonds, Series 1995A (the "Series 1995A Bonds")
General Obligation Corporate Purpose
Bonds, Series 1995E (the "Series 1995B Bonds")
Dated Amount to be Refunded
10/01/94 $ 660,000
05/01/95 $5,030,000
10/01/95 $1,750,000
totaling $7,440,000 (collectively, the "Refunded Bonds"), and scheduled to mature on and after
June 1, 2003, $6,205,000 of which (the "Optional Bonds") are optional for prior redemption on
June 1, 2003 (the "Redemption Date"), upon terms of par and accrued interest.
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
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DORSEY & wiij,rNEY LLP, ATTORNEYS, DES MOINES, IOWA
",kmes/419370-27/FDC & Ltr
aforesaid officers to their respective positions or the proceedings incident to the authorization of
the Series 2002C Bonds or in any way concerning the validity of the Series 2002C Bonds or the
power and duty of the City to provide and apply adequate taxes to the full and prompt payment
of the principal of and interest on the Series 2002C Bonds and that none of the proceedings
incident to the authorization and issuance of the Series 2002C Bonds has been repealed or
rescinded.
We further certify that no petition of protest or objections of any kind have been filed or
made objecting to the issuance of the Series 2002C Bonds or to the levy of taxes to pay the
principal thereof or interest thereon and that no appeal of the decision of the City to issue the
Series 2002C Bonds or to levy such taxes has been taken to the District Court.
We further certify pursuant to Section 148 of the Internal Revenue Code of 1986 (the
"Code") and applicable income tax regulations issued pursuant thereto (the "Regulations") as
follows:
1. Each of the issues of Refunded Bonds is being called for redemption on its first
permissible redemption date next occurring and the refunding of each of the issues of Refunded
Bonds is the first advance refunding thereof. The estimated sources and uses of funds in
connection with the issuance of the Series 2002C Bonds are as follows:
SOURCES OF FUNDS
Purchase Price of Series 2002C Bonds
USES OF FUNDS
Cash deposit to establish cash balance in
Escrow Account
U.S. Treasury Certificate of Indebtedness -
State and Local Government Series (SLGS)
for Escrow Account (purchase price)
Costs of Issuance
Deposit to Debt Service Fund for Series 2002C Bonds
(Excess Proceeds)
Total
$7,786,315.40
$ 0.41
$7,743,471.00
$ 42,000.00
$ 843.99
$7,786,315.40
2. "SLGS" means the United States Treasury Certificate of Indebtedness - State and
Local Government Series (shown on Exhibit A- I of the Verification Report attached hereto).
3. All of the original and investment proceeds of the Refunded Bonds have been
expended as of the date hereof for the purposes for which they were issued. Consequently, upon
retirement of the Refunded Bonds on the Redemption Date, no original or investment proceeds
of the Refunded Bonds will become transferred proceeds of the Series 2002C Bonds within the
meaning of Section 1. 148-9 of the Regulations.
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DORSEY & WHITNEY LLP, ATTORNEYS, DES MINES, IOWA
,\mes/419370-27/FDC & Ltr
4. The proceeds of the Series 2002C Bonds will not exceed the amounts needed to
accomplish the refunding of the Refunded Bonds. To the extent that proceeds of the Series
2002C Bonds constitute "excess proceeds" within the meaning of Section 1.148-10(c)(2) of the
Regulations, such excess proceeds will not exceed one percent of the sale proceeds of the Series
2002C Bonds.
5. The Series 2002C Bonds were sold at public sale at a purchase price of
$7,786,315.40, and the City has been advised by its financial advisor, that such price is fair and
reasonable under customary standards applicable to the market. The Purchaser has informed the
City that the initial offering price of the Series 2002C Bonds to the public was $7,805,265.40.
The combined yield on the Series 2002C Bonds and the City's $5,885,000 General Obligation
Corporate Purpose Bonds, Series 2002B, dated and issued concurrently herewith (the "Series
2002B Bonds"), is 2.8067607% (the "Combined Bond Yield"), as shown by Exhibit B of the
Verification Report attached hereto setting out the calculation of such yield.
6. From the sale proceeds of the Series 2002C Bonds, $7,743,471.00 has been
deposited and set aside into an escrow account (the "Escrow Account") with the Bank, as escrow
agent, pursuant to an Escrow Agreement between the City and the Bank and invested by the
purchase of the SLGS maturing at such times and in such principal and interest amounts as will
be sufficient, with the cash balance in the Escrow Account, to pay when due the interest on and
principal of the Refunded Bonds and to prepay the principal of the Optional Bonds on the
Redemption Date, all as provided in the Escrow Agreement. The yield on the SLGS, computed
in accordance with Section 1.148-5 of the Regulations, is 1.5776058% per annum, as shown on
Exhibit A-1 of the Verification Report attached hereto, which yield is less than the Combined
Bond Yield.
7. From the sale proceeds of the Series 2002C Bonds, $0.41 has been deposited and
set aside into the Escrow Account to provide for a cash balance in the Escrow Account.
8. From the sale proceeds of the Series 2002C Bonds, $42,000 has been deposited
with the Bank and immediately upon receipt thereof and in no event later than 30 days after the
date hereof, will be disbursed to pay the issuance costs related to the Series 2002C Bonds. Until
such time, the aforementioned amount may be invested without restriction as to yield pursuant to
Section 1. 148-9(d)(2)(iv) of the Regulations.
9. From the sale proceeds of the Series 2002C Bonds, $843.99. (Excess Proceeds)
has been deposited into the City's Debt Service Fund and will be applied to the payment of the
interest on the Series 2002C Bonds due on June 1, 2003, and until such time may be invested
without restriction as to yield. The amount of Excess Proceeds does not exceed more than 1% of
the original sale proceeds of the Series 2002C Bonds.
10. The City will accumulate amounts to be used to pay debt service on the Series
2002C Bonds in the City's Debt Service Fund. The amounts to be accumulated are estimated to
be sufficient to pay principal and interest on the Series 2002C Bonds as such becomes due and it
is not expected that the Series 2002C Bonds will be paid from any other fund, nor is any other
fund pledged as security for the Series 2002C Bonds. The amounts appropriated and on hand
from time to time in the Debt Service Fund are not expected to exceed an amount equal to
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DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
kmes/419370-27/1,'DC & Ltr
principal and interest due on the Series 2002C Bonds through the next following June I plus a
reasonable carryover, as permitted for a "bona fide debt service fund" in Section 1.148-1(b) of
the Regulations. If amounts in the Debt Service Fund at any time exceed the foregoing sum by
an amount in excess of the "minor portion" permitted the Series 2002C Bonds by Section 1. 148-
2(g) of the Regulations, such excess shall be invested at a yield not exceeding the Combined
Bond Yield as set forth in Section 5 above, unless an opinion is obtained from bond counsel
indicating that investment yield restriction is not required
11. The weighted average maturity of the Series 2002C Bonds does not exceed 120%
of the remaining reasonably expected economic life of the facilities originally financed by the
Refunded Bonds.
12. The Series 2002C Bonds are not "hedge bonds" as defined in Section 148(g) of
the Code because the City reasonably expected to expend all of the net sale proceeds of the
Refunded Bonds on the projects for which the Refunded Bonds were issued within 3 years of the
date of issuance thereof and none of the proceeds of the Refunded Bonds were invested in
nonpurpose investments with a substantially guaranteed yield of 4 years or more.
13. There are no other governmental obligations of the City: (i) sold at substantially
the same time as the Series 2002C Bonds, (ii) sold pursuant to the same plan of financing with
the Series 2002C Bonds, and (iii) reasonably expected to be paid from substantially the same
source of funds as will be used to pay the Series 2002C Bonds, except for the City's Series
2002B Bonds.
14. The City has not received notice that its certifications may not be relied upon with
respect to its own issues, nor has it been advised that the Commissioner of Internal Revenue is
contemplating listing the City as a governmental unit whose certifications may not be relied upon
with respect to its issues of governmental obligations.
15. This certification is made in compliance with Section 1.148-2(b)(2) of the
Regulations and is delivered as part of the transcript of proceedings and accompanying
certificates with respect to the Series 2002C Bonds.
16. To the best of our knowledge and belief, there are no other facts, estimates and
circumstances that would materially change the foregoing conclusions.
17. On the basis of the foregoing, it is not expected that the proceeds of the Series
2002C Bonds will be used in a manner that would cause the Series 2002C Bonds to be "arbitrage
bonds", under Section 148 of the Code and the Regulations.
We further certify that due provision has been made for the collection of taxes sufficient
to pay the principal of and interest on the Series 2002C Bonds when due. All payments coming
due before the collection of any such taxes will be paid promptly when due from legally
available funds.
We further certify that all meetings held in connection with the Series 2002C 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
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DORSEY & WMTNEY LLP, ATTORNEYS, DES MOINES, IOWA
Aines/419370-2711713C & Ltr
notice of the time, date, place and the tentative agenda and by posting such notice and agenda at
the administrative offices of the City or other 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.
IN WITNESS WHEREOF, we have hereunto affixed our respective official signatures as
of October 15, 2002.
(Seal)
CITY OF �' 10
",MES
X
Mayor
City Clerk
City Treasurer
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DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA
CITY OF ANTES, IOWA
VERIFICATION REPORT
OCTOBER 15,2002
INDEPENDENT ACCOUNTANT'S VERIFICATION REPOR,r
City of Ames
515 Clark Avenue
Ames, Iowa
Dorsey & Whitney LI-11
801 Grand, Suite 3900
Des Moines, Iowa
Evensen Dodge, Inc.
650 Third Avenue South, Suite 1800
Minneapolis, Minnesota
P'Irst American Bank
7031 Douglas Avenue
Urbandale, Iowa
FWIV111171111
InternationalI
Pursuant to the request of Evensen Dodge, Inc. (the "Financial Advisor") on behalf of the City of Allies,
Iowa (the "Issuer"), we have performed certain procedures, as discussed below, in contlection with the
Issuer's proposed Issuance of the following two series of bonds, both to be dated October 15, 2002
(collectively referred to as the "2002 Bonds"):
• $5,885,000 General Obligation Corporate Purpose Bonds, Series 2002B (the "2002B Bonds"); and
• $7,580,000 General Obligation Refunding Bonds, Series 2002C (the "2002C Bonds").
Proceeds from the 2002' Bonds will be used to advance refund three ofthe ISSUer'S Outstanding General
Obligation Corporate Purpose Bonds (collectively referred to as the "Refunded Bonds"), as summarized
below:
Optional
To Be Refunded Redemption
Amount Maturities Date and Price
06/01/03 06/01/03
through at
• Series 1994B (the "Refunded 1994 Bonds") 660,000 06/01/06 100.00
06/01/03 06/01/03
through at
• Series 1995A (the 1�efunded 1995A Bonds") $ 5,030,000 06/01/10 100.00
06/01/03 06/01/03
through at
• Series 1995B (the "Refunded 1995B Bonds") 1,750,000 06/01/07 100.00
WGL�drey & PkfflcnLET
is an independew menihex
firr-tn (&I�SM lnlenn lion�d,
<in Afih6�don ofinder)endent
,Iccoml6ng and conmd611v hnns
City of Ames, Iowa
Dorsey & Whitney LLP
Evensen Dodge, Inc.
First American Bank
October 15, 2002
Page 2
The procedures were performed solely to assist the addressees of this report in evaluating the
mathematical accuracy ofeertain schedules prepared by the Financial Advisor which indicate that:
there will be sufficient funds available in an escrow account to be established on October 15, 2002 to
pay the remaining debt service payments related to the Refunded Bonds (the "Escrow
Requirements"), assuming those Refunded Bonds originally scheduled to mature on or after June 1,
2004 will be redeemed at par on June 1, 2003; and
the yield on the United States Treasury Securities --State and Local Government Series (the
"SLGS") to be Purchased on October 15, 2002 with 2002C Bond proceeds is less than the yield oil
the 2002 Bonds.
The procedures we performed are summarized below.
We independently calculated the future casli receipts from the SLGS (Exhibit A-1), compared the
future cash receipts to the I'Mancial Advisors schedules, and found the future cash receipts to be in
agreement.
We independently calculated the Escrow Requirements related to the Refunded Bonds using
information from the Resolutions for the Refunded Bonds, compared the Escrow Requirements to
the Financial Advisor's schedules, and found the Escrow Requirements to be in agreement.
Using the results of our independent calculations described in procedures I and 2 above and using an
assumed initial cash deposit of $0.41 (forty-one cents) to the escrow account on October 15, 2002,
we prepared an escrow account cash flow schedule (attached hereto as Exhibit A). The resulting cash
flow schedule indicates that there will be sufficient funds available in the escrow account to pay the
Escrow Requirements on a timely basis.
4. We compared the rate table date (i.e., September 23, 2002) set forth on the SLGS Confirmation of
Subscription Receipt to Form PD 4262 Department of the Treasury —Bureau of the Public Debt--
SLGS Table for Use on September 23, 2002 (the "SLGS Rate Table"), and found the dates to be the
same.
We compared the interest rate for or each SLGS to the SLGS Rate Table and found each interest rate to
be equal to the applicable maximum allowable interest rate for use on September 23, 2002.
C. We compared the terms (i.e., the principal amounts, interest rates, issue dates, and maturity dates) of
the SLGS to be acquired on October 15, 2002, as summarized herein, to the Final SLGS subscription
forms provided by the Financial Advisor; we found the terms to be in agreement.
7. We compared pertinent terms of the Refunded Bonds (i.e., debt service payment dates, annual
maturity amounts, interest rates, and optional redemption provisions), as summarized on Exhibits
A-2 through A-4, to the Resolutions for the Refunded Bonds provided by the Financial Advisor; we
found the terns to be in agreement.
City of Ames, Iowa
Dorsey & Whitney LLP
Evensen Dodge, Inc.
First American Bank
October 15, 2002
Page 3
We independently calculated the yield on the SLGS and the yield on the 2002 Bonds, assuming a
settlement date of October 15, 2002. The term "yield," as used herein, means that yield which, when
used in computing the present value of all payments of principal and interest on an obligation
compounded semiannually using a 30/360-day year basis, produces all amount equal to: in the case
of the SLGS, the purchase price of the SLGS; and, in the case of the 2002 Bonds, the issue price to
the public as represented by the Financial Advisor. The results of our yield calculations, which are
listed below, were compared to the yield calculations provided by the hinanclal Advisor; we found
the yields to be in agreement.
Yield Exhibit
* Yield on SLGS 1.5776058% A-]
0 Yield on 2002 Bonds 2.8067607'Xo 13
Based on performing the agreed -upon procedures, we have found that those schedules provided by the
Financial Advisor, when compared to those schedules prepared by us (attached hereto as Exhibits), are
arithmetically accurate and reflect, based on the assumptions set forth herein, that:
there will be sufficient funds available in the escrow account to pay the Escrow Requirements; and
the yield on the SLGS is less than the yield on the 2002 Bonds,
This engagement was performed in accordance with standards established by the American Institute of
Certified Public Accountants (the "AICPA"). The sufficiency of these procedures is solely the
responsibility of the specified users of the report. We make no representation regarding the sufficiency of
the procedures summarized above, either for the purpose for which this report has been requested or for
any other purpose.
We were not engaged to, and did not, perform an examination, the objective of which would be the
expression of an opinion on the anticipated escrow account cash sufficiency or yield eld calculations.
Accordingly, in accordance with standards for attestation services established by the AICPA, we cannot
express such an opinion. Had we performed an examination or performed additional procedures, other
matters might have come to our attention that would have been reported to you.
T'he results of our independent calculations with respect to the proposed transactions are summarized in
the accompanying exhibits. The original computations, along with related characteristics and assumptions
contained herein, were provided by the Financial Advisor on behalf of the Issuer. We relied solely on this
information and these assumptions and limited our work to performing those procedures set forth above.
(.,'Ity of'Ames, Iowa
Dorsey & Whitney 1,1-11
Evensen Dodge, Inc.
First American Bank
October 15, 2002
Page 4
This report is issued solely for the information of', and assistance to, the addressees of this report and is
not to be quoted or referred to in any document, except for the Official Statement and required closing
transaction documents. Additionally, this report should not be used by those who have not agreed to the
procedures and taken responsibility for the sufficiency of the procedures for their purposes. Under the
terms of our engagement, we have no obligation to update this report because of events or transactions
occurring subsequent to the date of this report.
Minneapolis, Minnesota
October 15, 2002
EXHIBIT
CITY OF AMES,.1OWA
ESCROW ACCOUNT CASH FLOW
Escrow
Requirements
Total Cash Related to
Receipts From Refunded Bonds
SLGS (Exhibits A-2 Cash
Date (Exhibit A- I) to A-4) Balance
Initial cash deposit on October 15, 2002 $ 0.41
12/01/02 189,372.93) 189,372.50 0.84
06/01/03 7,629,3 71.68 7,629,372.50 0.02
$ 7,818,744.61 $ 7,818,745.00
EXHIBITA-1
CITY OF ANTES, IOWA
CASH RECEIPTS FROM AND YIELD ON SLGS
Present Value Oil
October 15,
-Fatal Cash 2002 Using
F
Receipt Interest Receipts From a Yield of
Date 'Type Rate Principal Interest SLGS 1.5776058%
12/01/02 Cert. 1 .59% S 188,986 S 386.93 189,37193 S 188,993.07
06/01/03 Cert. 1.58% 7,554,485 74,886.68 7,629,371.68 7,554,477.93
$ 7,743.471 S 75,273,61 S 7,8 1 8,744.6 1 7,743A7 1.0 T
Purchase price of SLGS
S 7.743,47 1.00
The SUIll of the present valUeS ofiture cash receipts from file SLGS, on October 15, 2002 using a yield of
C�
1.5776058 percent, is equal to the purchase price of the SLGS; therefore., the yield on the SL,GS is equal to
1.5776058 percent.
EXHIBITA-2
CITY OF AMES, IOWA
ESCROW REQUIREMENTS RELATED TO REFUNDED 1994 BONDS
Escrow
Requirements
Related to
Refunded
1994
Date Principal Interest Bonds
12/01/02 17,820.00 $ 17,820.00
06/01/03 660,000 (1) 17,820.00 677,820.00
S �660000 35,640.00 S 695,640.00
(1) Consists of the following bonds to be paid or optionally redeemed at par on Julie 1, 2003):
cl
Maturity
Date
Interest
(June 1)
Principal
Rate
2003
$ 165,000
5.30%
2004
165,000
5.40%
2005
165,000
5 . 4 0 0/'o
2006
165,000
5.50%
$ 660,000
8-XIIJB1/,4-3
CITY OF AMES,IOWA
ESCROW REQUIREMENTS RELATED TO REFUNDED 1095A0O0N0S
Date
12/01/02
Principal Interest
Escrow
Requirements
Related to
Refunded
|995&
Bonds
130,777.50
06/ |0g
5 (l) 13877750 5,160,777.50
(l) Consists ofthe following bonds to be
paid or optionally redeemed at par on June 1,2003):
Maturity
oa/c
lotcrcxc
(June I) Principal
Rate
2004
720'000
5.10%
2005
720,000
520%
2006
720,000
52596
2007
728,000
525%
2008
480,800
525'No
2089
475,000
525%
2018
475.000
525%
EXHIBITA-4
CITY OF AMES, IOWA
ESCROW REQUIREMENTS ]ZELATED TO REFUNDED 1995B BONDS
Escrow
Requirements
Related to
Refunded
1995B
Date
Principal
Interest
Bonds
12/01/02
-
S 40,775.00 $
40,775,00
06/01/03
1,750,000 (1)
40,775.00
1,790,775.00
1,750,000
S 81,550.00 $
1,83 1,550.00
(1) Consists ofthe following; bonds
to be paid or optionally redeemed at par on June 1,2003:
Maturity
Date
Interest
(June 1)
Principal
Rate
2003
350,000
4.60%
2004
350,000
4,60%
2005
350,000
4.601/)/o
2006
350,000
4.70%
2007
350,000
4.80%
1 J50,000
-EXHIBITA-5
CITY OF AMES, IOWA
ESTIMATED SOURCES AND USES OF FUNDS (2002C BONDS)
Sources:
Principal arnount of'2002C Bonds $ 7,580,000.00
Net original issue premium 225,265.40
$ 7,805.265.40_
Uses
Purchase price of SLGS $ 7,743,471.00
Initial cash deposit to escrow account 0.41
Underwriter's discount 18,950.00
Issuance costs 42,000.00
Contingency 843.99
$ 7,805,265.40
E,kll/BJI'B
CITY OF AMES, IOWA
YIELD ON2O02BONDS
Issue price of 2002 Bonds for yield
calculation purposes:
Principal
Original Issue premium
8um ofprcseotvalues offuturcdebt service
payments, onOctober l5,2O02using
uyield of2.Q0676O7 percent, on:
-2OO2BBonds (Exhibit B-l)
2002B 2002C
Bonds Bonds llotu|
$ 5,885`000.00 $ 7,580,000.00 $ 13,465,00000
$ 6,009,761.88
770260367
The sum o[the present values ofdcbtmcrvioepuymcn1 tobumade oothe 2OO2 Bonds, on ()ckihcr 15,2002
usio�uyield of2.DO87607percent, isequal 10the issue iocofthe 20O2Bonds for yield calculation purposes;
CITY OF AMES,IOWA
PRESENT VALUE OF DEBT SERVICE PAYMENTS RELATED TO28OZB BONDS
ucm
Service
Payment
Date
Principal
Interest
Rate
Yield
Interest
TntalDcE^
Service
Present V�I]uccm
Dmocr\5.
2082Dsing
aYield of
2886760796
06N104
430,008
225%
1.550%
81,503.75
511,503.75
488,815.30
1201/04
-
'
76,66625
76.66625
72.251�65
0601/05
435,000
2.50Y6
1.800%
7666625
5)1,66625
475,52995
120105
-
-
-
71228J5
71,228J5
65,282.88
060106
445.000
2.50%
2,130%
71,228.75
516,228.75
466.58148
120106
-
-
65,66625
65,66625
58.529.66
0601N7
455.000
2,75%
2.440%
65,66625
520,66625
457,65T73
120107
'
-
'
59/410.08
59.410.00
51,497.78
8601/08
470,080
3.00%
2.740%
59,410.00
529,410.00
452,552.17
120108
-
'
'
52,368.00
52,360.00
44.139]3
0601X09
485,000
3,00%
2.970%
52,360.00
537,360.00
446,72163
12/0109
'
-
-
45,085.00
45'085.00
36,461.04
0601/10
500,000
3.15%
3]60%
45.085.00
545.085.00
440,687.78
]201/)0
-
-
37218.00
37,20.00
29,667.03
06/ l/l\
515,000
325%
3250%
37,218.00
552,210.00
434.176.36
1201/11
-
-
28,84125
28^84125
22,362.66
0601/12
535,000
3.38Ylo
3.37O0NO
28,84125
563,84125
431,1356)
1201/12
-
-
-
20,013J5
20,013.75
15,091.52
0601/13
555,008
3.45%
3,5200//o
20,013J5
575.01375
427,592.83
1201/13
-
-
-
10,440.00
10,440.00
7,655.97
m
EXHIBIT B-2
CITY OF AMES,IOWA
PRESENT VALUE (}FDEBT SERVICE PAYMENTS RELATED TO 2002C BONDS
VcN
Service
Payment
Date
Principal
Interest
Rate
Yield
] Merest
Total Debt
Set-viceSet-vice
Present Value on
Odobcrl5,
2002Dsing
oYidd of
28067607%
12/01/03
-
-
-
101,658.00
101,650.00
98,504.44
8601/04
1,300,000
I08Y&
1.57Y4
181,650.80
1,401,650,88
1,339477.89
1201/04
-
-
-
82,150.80
82,150.80
77/419.63
06/ l05
1265,000
3.00%
1.80%
82,150.00
1.347,150M
1252]}07.87
1201N5
-
-
-
63,175M
6I175.00
57,900.71
06/ ]/06
1,240,088
15OY6
2]4Y4
63]75.80
1,303,175M
1,177'847.27
1201/06
'
-
41,475.00
41.475.80
36,967,8
0601/07
1,060.000
3.50%
2450N,
41,475.00
1,101,475.00
968,179.00
120107
'
-
-
22,925.00
22,925.80
19,871.86
06/ l0X
450L000
3.50%
2.75%
22'925.00
472.925M
404.26T45
1201/08
-
-
-
15,050.00
15,850.80
12,687.85
06/01X09
435,080
3�50Y4
2.97%
15,050.00
450.050.80
374.138.51
12N1/09
'
-
-
7.437.50
7,437.50
6.097.42
0601/10
425000
3.50%
3,17Y6
7
34961505