HomeMy WebLinkAboutA029 - Preliminary Official Statement by Dorsey & WhitneyPRE I, I N1 IN ARY(71,11CLA L S'lATEMENJ DAH,A) SEPTI-I'MBER 14,2009
NCIN, Issue Rating: AppficMion ;glade
In the opinion ol'Dorse c Whitney LLP, Bond Counsel, according to prese)a hilvs, rulings and deemons will assuming compliance 11 lih co-tain covenants the
interest on the Bonds will be excludedfromgross income far federal income tax purposes, .Such interest on Ille Bonds will not be 4113 item oj'Icapreference far
purposes of11wfederal allern(Ilive mmilmon lax milloved on illdividlilly and corporations laider the hacinal Rel'Cfflie ("ode o 1986 and lv/// not lakv)l into acc mm/
in dclermmil7g, cl(ltllsled cun-ent earlilligs for 117c purpose of eo)jjj)IjIjjj„r ill(! ollermilive Inimmilm tax imposed on cotporallomy (as defined for,fedo-ell Im o I e I I tax
- Imipou,$) and the City will designate the Bonds US qiiahY ied tax exempt obliguamm..See ''Tax Exemption and Related ('011side,
,A'011s" herein for mare
CITY OF AMES, IOWA
"11,165,000" General OlAigation Corporate Purpose Bonds, Series 200913
BIDS RECEIVED: Tuesday, September 22, 2009, 1 1:00 o'clock A.M., Central Tiir IC
AWARD: Tuesday, September 22, 2009, 7:00 o'clock P.M., ('.entral Time
Dated: October 29, 2009 Minimum Bid: $1 1,086,845
Principal Due: JLInC 1, 2010-2021 faith Deposit: Required Of Purchaser Only
j G o o d F,
Tine Sit 1,165,000* General Obligation Corporate purpose Bonds, Series 2009B (tire "Bonds") are beill-g, iSSUCd I'MI-SUarn to
Division III of Chapter 384 of the Code of Iowa and resolutions to be adopted by the City COLHICil Of the City of Ames, Iowa.
(file "City")The Bonds are bein- issued for the purpose of paying the cost for the construction of improvements to streets,
.
" storm sewers, sanitary sewers, municipal waterworks system and municipal electric system, The Bonds areencral
obligations of the City, for which the City will pledge to levy ad valorem taxes against all property within the City without
limitation as to rate or amount.
The Bonds will be issued as fully registered Bonds Without coupons and, when issued, will be registered in the name of( ede
& Co., as nominee of The F)epository Trust Company ("DTC"), DTC will act as securities depository for the Bonds.
J, Individual purchases may be made in book -entry -only form, in the principal amOUllt of $5,000 and integral multiples thereof"
'Ll I -chasers will not receive certificates representing their interest in the Bonds purchased. The City's Treasurer as paying
I
agent will pay principal on the Bonds, Payable annually on June 1, beginning June 1, 2010, and interest on tile Bonds payable
initially on JLIIle 1, 2010 and thereafter on each December I and June I to DT'C, which Will in turn remit such principal and
interest to its participants for subsequent disbursements to the beneficial owners of the Bonds as described herein. Interest and
principal shall be paid to the registered holder ol'a bond as shown oil the records ofowncrship maintained by the registrar as
of the fifteenth day preceding such interest payment date (the "Record Date").
The Bonds will mature JUIIC I in the YC',IB and allIOLHAS as f011OWS:
Year AITIOLlIlt* Year AIIIOUIIt*
2010 $500,000 2016 $955,000
2011 860,000 2017 980,000
2012 870,000 2018 1,015,000
2013 885,000 2019 1,050,000
2014 905,000 2020 1,()9(),000
S 2015 925,000 2021 1,130,000
1) It I N C I PA 1,
ADJUSTMENT: 'File City reserves the right to increase or decrease the aggregate principal amount of the Bonds. Such
'
change will be in increments of $5,000 and may be made ill any Of tile maturities. The purchase price
will be adjusted proportionately to reflect any change in issue size.
]REDEMPTION: Bonds due after June 1, 2017 will be Subject to call for prior redemption on said date or on any date
thereafter upon terms of par Plus accrued interest to date of call.
The Bonds are
offered, subject to prior sale, withdrawal or modification, when, as and if issued and SLlbjCCt to the unqualified
approvin,, legal opinion of Dors
ey & Whitney LLP, Bond Counsel, of Des Moines, Iowa, to be furnished upon delivery of the
2
Bonds. It is expected that the Bonds will be available for delivery on or about October 29, 2009. This preliminary Official
Statement will be further supplemented by offering prices, interest rates, aggregate principal amount, principal amount per
i
Maturity, anticipated delivery date and underwriter, together with any other intbrination required by law, and shall constitute a
"Final Official Statement" of the City with respect to the Bonds, as defined in Rule 15c2-12.
Preliminary; subject to change.
COM13LIANCE WIT11 S.E.C. RULE 15c-12
Municipal obligations (issued in an aggregate amount over $1,000,000) are Subject to General Rules and Regulations,
Securities L'Achange Act of 1934, Rule 15c2-12 Municipal Securities Disclosure.
Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to
prospective bidders. Its primary purpose is to disclose information regarding the Bonds to prospective bidders in the
interest of receiving competitive bids in accordance with the Notice of' Sale and Terms of Offering contained herein.
Unless an addendum is received prior to the sale, this document shall be deemed the "Near Final Official Statement".
Review Period: ']'his Preliminary Official Statement has been distributed to City staff as well as to prospective bidders for
an objective review of its disclosure. Comments or omissions or inaccuracies must be submitted to public Financial
Management at least two business days prior to the sale. Requests lor additional information or corrections in the
Preliminary Official Statement received on or before this date will riot be considered a qualification ol'a bid received. If'
there are any changes, corrections or additions to the Preliminary Official Statement, prospective bidders will be informed.
by ,in addendum at least one business day prior to the sale.
Final Official Statement: Upon award (A'sale ot*the Bonds, the legislative body will authorize the preparation of Final
Official Staternent that includes the offering prices, interest rates, aggregate principal amount, principal amount per
maturity, anticipated delivery date and other information required by law and the identify ol'the Syndicate Manager and
Syndicate Members. Copies of the Final Official Statement will be delivered to the Underwriter (Syndicate Manager)
within seven business days following the bid acceptance.
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any
representations, other than those contained in the Preliminary Official Statement. This Preliminary Official Statement
does not Constitute any offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any
person, in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The
information, estimates and expressions of opinion herein are subject to change Without notice and neither the delivery of"
this preliminary Official Statement nor any sale made hereunder, shall, under any circumstances, create any implication
that there has been no change in the affairs of the City since the date hereof. This preliminary Official Statement is
submitted in connection with the sale of the securities referred to herein and may not be reproduced or used, in whole or ir)
part., for any Other purpose.
This preliminary Official Statement and any addenda thereto were prepared relying on inlorination of the City and other
Sources, which are believed to be reliable.
Bond Courisel has not participated in the preparation of this preliminary Official Statement and is not expressing any
opinion as to the completeness or accuracy ol'the information contained therein.
C0111perlSatiOn Of Public Financial Management, fire. as Financial Advisor, payable entirely by the City, is contingent
upon the sale ol'the issue.
TABLE 0FCONTENTS
NOTICEOF SALE ................. —--- ---------------------------- ---'----------- -------- '____ --- ... —................................ i
TERMSOFOKF0RVV,................................................................................................................................................ iii
SCHEDULEOF BOND YEARS ......... ............................................................................................................... ....... Vii
INTRODUCTION............................................................................................................................................................. |
Avthmi/yuudPucyoou-----------------------------------—-------------
J
Payment of and Gecurdyfor the Bonds .......................................................... ...................... ........................ .... ... —'\
8ouk-Goby_Ou|ySystem........... —.......... .............. ................................... ____ .... ............ ......... ................. ---J
PmuroFinancing .............. .......... .................................. ---------...... ........ ................. --......... ... --_3
Cidoab"o;Debt Payment Bismry........ ..................... ....... --................. ----.................. —........... ----'3
Le -al Matters ........... ............ _...................... ................... ____............................. __.............. —......... .......... —4
Tax Exemption arid Related Considerations ....... ...................................................................... .................... ............
Kabo�------------_______________________-------------�
Huauci�Advisor ........... ............................... _.............. -----...................... —... —.......... ---................... 5
[OoinuioADiyolosu,r....... ..... —............................ ................................ ----... ................. ....... ............ ...... ... 5
CcndDcadoo............................................................... ...................... ........ ---............................................. —....... 5
CITYPROPERTY VALUATIONS ................................................................................................................................ h
IowaProperty Valmati000..................................... .............................. ................................................................ --'6
l/|/2008Vauadoos(Taxes payable ]uIyL2009through June 3O,20|0)......................... .......... —.......... ....... ---'6
2008GomxTaxable Valuation byClass ofProperty ................................ —........................ —.......... .................... ... 6
TrendofYu|uabons...... —........ —........................ ................................... ... ..... ........... ... —....... —.............. .... '7
LargerTaxpayers .............................................................................................. ...... ..................... ........ .......... ........... 7
Ie�is�hoo----------_______________—__—___________---------------7
CITYINDEBTEDNESS ................................................................................................................................................... 8
DebtLimit ............................... ................... ...... _.... ................................. ........................................ ......... ........... '&
DirectDebt .......... ....................... _......... ................................................. ___ ....... ............... ............. —.... .......... 8
OtherDebt ... .................................... ......................................... ....................................................... .............. —...... �9
OverlappingDebt .................... ............................................................... .................... ............................. --......... ... 0
DebtRatios ..................... ............ ___ .... ................................ ......... __.................... .................. ..... ..... ............. O
Levies and Tax Collections ........ ............. ................................ ...... ---......... —....... ............. ........... --............ |0
TaxRatex—... ....... ---... .............. __..... __.............. ________...... ..... __.... __..... --... --..... ..... ll
LevyLimits ................ ........ ................................... ............................... ...... _....... ................... ................ --.... l
General FvodBudgets -/\ccum|Basis ............. --................................ --...................... ............ ........... —...... 2
Fuodoon land - Cash Basis (Cash and Investments as of]uou30.20U9).................. ......... ............ ----......... ]2
TgE[rrY.......................... ............................................................................................................................................ 3
CityGovernment ........................ ........ ............................ ____.......... .............. ................. __---------J3
6m----________________________________------------J3
Union Contracts; Other Post Employment Benefits ................... .................. ...................... -----........ ............ 3
|onnuoco-----------.................. ..... .... i4
C0NERAlINFORMATION ........................................................................................................................................ 5
Locationarid Transportation .......... ........................................................
............................. ...... ...... ......... ......... ... 5
Larger Employers .... ........... ........................ ............. ............. ...... .................................
.............. ................. --|5
BuildingPermits ......... ............................... ............. ............... ...................
............................... .................... ...... 6
U.S.Census Data ....................................... _..... __....................................
.............................. —......................... 6
UnemploymentKoteu---------_______-----------_______---------------]6
Lducukm........................... —........ ....................................... ____..................................
____------...... l6
APPENDIX /k-FORM 0FLEGAL OPINION
APPENDIX D JUNB30,20O8COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX C-FORM OFCONTINUING D|SCC0SOK8C6RTlFlCAT8
OFFICIAL BID FORMS
Member
Ann Carnpbell
Jim Popken
Matthew Goodman
Dan Rice
Jarni Larson
Ryan Doll
lZiad Mahayni
City of Ames, Iowa
Mavor/(.'itv COLHICil
Office
Mayor
Conned Member —
At Large
Council Member
At Large
Council Member
— I" Ward
Council Member
2"" Ward
Council Member
-- 3"' Ward
Council Member
— 4"' Ward
Initial Term Commenced
January 03, 2006
January 03, 2006
RHILlary 03, 2004
January 03, 2006
November 14, 2006
January 03, 2006
January 14, 2003
Administration
Steven Schainker, City Manager
DUanc Pitcher, Director of Finance
Diane Voss, City Clerk
Roger Wisecup 11, City Treasurer
John Dunn, Director of Water and Pollution Control
John Joiner, Director OtTUblic Works
Don Korn, Director of Electric Utility
C" i OLAt—toma
Doug Marek
Ames, Iowa
Bond Counsel
Dorsey & Whitney LLP
Des Moines, Iowa
Financial Advisor
I'Liblic Financial Management
Des Moines, Iowa.
Term Ex
1? —1r eS
December 31, 2009
December 31, 2009
December 31, 2011
December 31, 2009
December 31, 2011
December 31, 2009
December 31, 1, 2011
NOTICE OF SALE
City of Ames, Iowa
S I 1, 165,000 Genera I Obligation Corporate Purpose Bonds, Series 2009B
Bids will be received on behalf ofthe City of Ames, Iowa, until 11:00 o'clock a.rn. oil September 22,2009, to: r
the purchase of $11,165,000 General Obligation Corporate Purpose Bonds, Series 2009B, of the City.
Any ofthe methods set forth below may be used, but no open bids will be accepted:
Sealed Bidding: Sealed bids will be received at City I Jell, 515 Clark Avenue, Allies, Iowa.
Electronic Internet Bidding: Electronic internet bids will be received at City Hall, Allies, Iowa, all(] ]LIUSt be
submitted through PARITY(i?).
Flectronic Facsimile Bidding: Electronic facsimile bids will be received at City hall, Ames, lowa, and will
be sealed and treated as sealed bids.
After the deadline 1`6r receipt of bids has passed, sealed bids will be opened and announced, and electronic
internet bids will be accessed and announced. All bids will be presented to the City Council for consideration at its
meeting to be held at 7:00 o'clock p.m. on September 22, 2009, at the City I fall, Allies, Iowa, at which time the Bonds
will be sold to the best bidder for cash.
The Bonds will be issued as fully registered bonds in denominations of $5,000 or any integral Multiple thereof',
will be dated October 29, 2009, will bear interest payable sernialinually oil each June I and December I to maturity,
corninencing June 1, 2010, and will mature on June I in the following years and aluOUnts:
Principal
Principal
Year
Amount
Yell]-
AnIQUIlt
2010
$500,000
2016
$955,000
2011
860,000
2017
980,000
2012
870,000
2018
1,015,000
2013
885,000
2019
1,050,000
2014
905,000
2020
2015
925,000
2021
1,130,000
The right is reserved to the City to call and redeem all of the Bonds maturing in the years 2018 to 2021,
inclusive, in whole or in part, in one or more units of$5,000, oil June 1, 2017, or on any date thereafter prior to and in
any order of maturity (and within a maturity by lot), upon terms of par and accrued interest.
Bidders Must specify a price of not less than $1 1,086,845, Plus aCCI'Lled interest. The legal opinion of
Dorsey & Whitney LLP, Attorneys, Des Moines, Iowa, will be furnished by the City.
A good faith deposit of $1 11,650 is required from the successful bidder and may be forfeited to the City in the
event the successful bidder fails or refuses to take and pay for the Bonds.
The City reserves the right to reject any or all bids and to waive irregularities in any bid.
The Bonds are being issued pursuant to the provisions of Division III of Chapter 384 of the Code of Iowa and
will Constitute general obligations of the City, payable from taxes levied upon all the taxable property in the City
without limitation as to rate or amount.
The Securities and Exchange Commission (the "SEC") has PrOITILlIgated certain amendments to Rule I 5c2-1 2
under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12) (the "Rule") that make it unlawful for am
underwriter to participate in the primary oftcring of municipal Securities in a principal aul(Mut 01' 51,000,000 or more
unless, before Submitting <r bid or entering into a purchase contract f(,)]- SUCIA SCCLAI-itiCS, an underwriter has reasonably
determined that the issuer or all obligated person has undertaken in writing for the benefit of the holders of Such
.Securities to provide certain disclosure information to prescribed Information repositories on a continuing baSIS SO 1OIIg
US Such Securities are outstanding.
On the date of issuance and delivery of the Bonds, the City will execute and deliver a Continuing DiSCIOSUrc
Certificate pursuant to which the City will undertake to comply with the Rule. The City will covenant and agree to
comply with and carry out the provisions of the Continuing Disclosure Certificate. All of the officers of" the City will
be authorized and directed to take any and all actions as may be necessary to comply with the Rule and the Continuing
DiSCIOSUre Certificate.
Bidders Should be aware that the official terms of offering to be published in the Official Statement for the
Bonds contain additional bidding terms and information relative to the Bonds. III the event of a variance between
statements in this Notice of Sale (except with respect to the time and place of the sale of the Bonds and the principal
aulOLII'It offered for sale) and said official terms of offering, the provisions ol'the latter shall control.
By order of the City Council of Allies, Iowa.
Diane R. Voss
City Clerk
TERMS OF OFFERING
crry OF AMES, IOWA
III addition to the provisions of the Notice of Sale, this section sets forth the description of certain of the terms of the
Bonds as Well as the terms of offering with Which all bidders and bid Proposals are required to comply, as follows:
DETAILS Ol" THE BONDS
GF'NI-`RAI-, OBLIGATION CORPORATE PURPOSF BONDS, SERIFS 200913 (the "Bonds "), in the principal
IOLIIA of $11,165,000* to be dated October 29, 2009 in the denomination of $5,000 Or 1111-11tipICS thereof' and to
InatLIN OFI June I .IS f`OIIOWS:
Year
Amount*
Year
A11101-110
2010
$500,000
2016
$955,000
2011
860,000
2017
980,000
2012
870,000
2018
1,015,000
2013
885,000
2019
1,050,000
2014
905,000
2020
1,()9(),O(,)o
2015
925,000
2021
1,130,000
Preliminary; SLIbjCCt to change. 'the City reserves the right to increase or decrease the aggregate principal
amount ol'the Bonds. I lowever, the maxinIL1111 par L111101.111t Will not exceed $11,200,000. Such change
will be in increments of'$5,000 and may be made in any 0l'the maturities. 'I he PULCIUISC J)riCc Will be
adjusted proportionately to reflect any change in issue size.
OPTIONAL REDEMPTION
Bonds due after June 1, 2017 will be subject to call for prior redemption on said date or on any date 1-11CI-eifter Upon
terms of par plus accrued interest to date of call.
INTI"'REST' ON T] IF BONDS
Interest on the Bonds will be payable on June 1, 2010 and semiannually on the I` day of December and June
thereafter. Interest and principal shall be paid to the registered holder of a Bond as shown on the records of ownership
maintained by the registrar as of the fifteenth day preceding such interest payment date (the "Record Date"). Interest
will be COMPLIted on the basis of 360-day year of twelve 30-day months and will he rounded pursuant to rules of the
MSRB.
GOOD FAITH DEPOSIT
A Good Faith Deposit (the "Deposit") in the amount Of $11 1,650 is required of the lowest bidder only for file Bonds.
The lowest bidder is required to SUbIrlit Such Deposit payable to the order of the City in the form of either (i) a cashier's
check provided to the City or its Financial Advisor prior to the opening of bids or (ii) a wire transfer as instructed by
the City's Financial Advisor not later than 1:00 P.M. Central Time on the day of sale of the Bonds. If not so received,
the bid of that lowest bidder will be rejected and the City may direct the second lowest bidder for the Bonds to submit
a Deposit and thereafter rnay award the sale of the Bonds to the same. No interest on a Deposit will aCCIJIC to a
successful bidder (the "Purchaser"). The Deposit will be applied to the purchase price of the Bonds. In the event a
Purchaser fails to honor its accepted bid proposal, the Deposit will be retained by the City.
BOOK -ENTRY -ONLY SYSTEM
The Bonds will be issued by rilearis of a book -entry -only system with no physical distribution of bond certificates
made to the public. The Bonds will be issued in fully registered loan and one bond certificate, representing the
aggregate principal amount of the Bonds Maturing in each year, will be registered in the narric of Cede & Co. as
norninee ofThe Depository TrLISt COIllpally ("D'I'C"), New York, New York, which Will act as securities depository of'
the Bonds. Individual purchases of the Bonds may be made in the principal amount ofS5,000 or any 1111.11tiplC thereof'
of a single maturity through book entries made on the books and records of DTC and its participants. Principal and
interest are payable by the City's designated Paying Agent, Bankers Trust COuipany, N.A., Des Moines, Iowa, to DTC
or its nornince as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC
will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants Will
be the responsibility Of Such participants and other nominees of beneficial owners. The Purchaser, as a condition of
delivery ofthe Bonds, will be required to deposit the bond certificates with DTC.
FORM OF BIDS AND AWARD
All bids shall be unconditional for the entire issue of Bonds for a price not less than $11,086,845, plus accrued interest,
and shall specify the rate or rates of interest in conformity to the limitations as set forth under the "RATE'S OF
INTEREST"' section below. Bids must be submitted oil or in Substantial corripliance with the 011'icial Bid Forin
provided by the City. The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a
true interest cost basis ("TIC") assuming compliance with the "GOOD FAITFI Dl-f)osir, section on the previous
page. The TIC shall be determined by the "present worth rnethod," i.e., by ascertaining the serniannUal rate,
COMPOLInded semi-annually, necessary to discount to present worth as of the anticipated dated date of the Bonds, the
amount payable on each interest payment date and on each stated maturity date or earlier mandatory redemption, so
that the aggregate of such amounts Will equal the aggregate purchase price offered therelore. 'file 'FIC shall he stated
in terms of an annual percentage rate and shall be that rate ol'interest which is twice the Sell) i�lllrll,lal rate so ascertained.
(This method is also known as the "Canadian Method"). The TIC shall be as determined by the Financial Advisor
based on the Terms of Offering and all amendments, and on the bid as Submitted. The Financial Advisor's
computation of the TIC of each bid shall be controlling. In the event of tie bids for the lowest TIC, the Bonds will be
awarded by lot.
The City will reserve the right to: (i) waive non -substantive informalities of any bid or ofinatters relating to the receipt
of bids and award of the Bonds, (ii) reject all bids without cause and (iii) reject any bid which the City determines to
have failed to comply with the terms herein.
RATES OF INTEREST
The rates of interest specified in the bidder's proposal Must conform to the I'ollowing limitations:
Each annual maturity must bear a single rate of interest from the dated date of the Bonds to the date of
maturity.
Rates of interest bid Must be in multiples of'one-eighth or one -twentieth of'one percent.
Each rate of interest specified for any annual maturity shall not be less than Er rate of interest specified for ally
earlier maturity. Rates must be level or in ascending order.
RECEIPT OF BIDS
No bid will be accepted after the time specified in the Notice of' Sale as published in this Preliminary Official
Statement. The time as maintained by the Internet Bid Systern shall c0IIStitLItC the official time with respect to all bids
submitted. A bid may be withdrawn before the bid deadline using the same method used to Submit the bid. If' more
than one bid is received from a bidder, the last bid received shall be considered.
IV
Forrn of Bids: Bids for the Bonds must be submitted on or in Substantial compliance with the Official Bid Forms
provided by the City or through the Internet Bid System as defined below. The City shalt not be responsible for
malfunction or mistake made by any person, or as a result Of the use of the electronic bid, facsimile facilities or the
uWal-IS used to deliver or complete a bid. The use Of such facilities or ineans is at the sole risk of the prospective
bidder who shall be bound by the terms ofthe bid as received.
Sealed Bjciclb2g: Sealed bids may be submitted and will be received at the office of the Director oil' Finance, City Hall,
515 Clark Avenue, Ames, Iowa 50010.
Electronic Internet Bidding: Electronic internet bids will be received at the office of the Director of' Firiance, City
I lall, Ames, Iowa, or at the office of Public Financial Management, Inc. The bids must be submitted through the
PARITY"' competitive bidding system (the "Internet Bid System"),
Each prospective bidder shall be solely responsible for making necessary arrarigerrients to access the Internet Bid
System for Purposes Of'submitting its internet bid in a timely manner and in compliance with the re(11.dreruelltS 011AIC
'Perms of Offering. The City is perrnitting prospective bidders to use the services of Internet Bid System solely as a
C011111ILluication mechanism to conduct the Internet bidding and the Internet Bid System is not an agent of the City.
Provisions of the Terms of Offering shall control in the event of conflict with information provided by the Internet Bid
System.
I'llectronic Facsimile f.jicldingElectronic facsimile bids will be received at the office of the Director of Finance,
Ames, Iowa (facsimile number: (515) 239-5320) or at the office of the City's Financial Advisor, Public Firiancial
Management,
ement, Inc. (facsimile number: (515) 243-6994). Electronic facsimile bids will be scaled and treated as sealed
bids. Transmissions received after the deadline will be rejected. Bidders electing to submit bids via electronic
facsimile transmission bear full responsibility for the transmission Of Such bid. Neither the City nor its agents shall be
responsible for malfunction or mistake made by any person, or as a result of the use of the electronic facsimile
facilities or any other means used to deliver or complete a bid. The use Of Such facilities or means is at the sole risk of
the bidder who shall be bound by the terms of the bid as received. Neither the City nor its agents will assume liability
for the inability of the bidder to reach the above named fax number prior to the tirne of sale specified above, Time Of
receipt shall be the time recorded by the facsimile operator receiving the bids.
BOND INSURANCE AT PURCHASER'S OPTION
Ifthe Bonds qualify for issuance of any policy Of Municipal bond insurance or commitment therefore at the option of
the bidder, the Purchase of any such insurance policy or the issuance of any such commitment shall be at the sole
option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting frOF11 such
purchase of insurance shall be paid by the Purchaser, except that, if tine City has I'C(ILlested and received a rating on the
Bonds from a rating agency, the City will pay that initial rating fee. Any other rating agency fees shall be the
responsibility of the Purchaser. Failure of the municipal bond insurer to issue the policy after the Bonds have been
awarded to the Purchaser shall not constitute cause for failure or refusal by the Purchaser to accept delivery on the
Bonds. The City reserves the right in its sole discretion to accept or deny changes to the financing documents
requested by the insurer selected by the Purchaser.
DELIVERY
The Bonds will be delivered to the Purchaser through DTC in New York, New York, against full payment in
unniechately available cash or tederal fUnds. The Bonds are expected to be delivered within forty-five days after the
sale. Should delivery be delayed beyond sixty days frorn date of sale for any reason except failure of performance by
the Purchaser, the Purchaser may withdraw his bid and thereafter his interest in and liability for the Bonds will cease.
When the Bonds are ready for delivery, the City may give the Successful bidder five working clays notice of the
delivery date and the City will expect payment in full on that date, otherwise reserving the right of its option to
determine that the bidder has failed to comply with the offer Of purchase.
v
INFORMATION FROM PURCHASER
The Purchaser will be required to certify to the City immediately after the opening of bids: (i) the initial public oflerim,,
price of each maturity of the Bonds (riot including bond houses and brokers or sirridar persons or organizations acting
in the capacity Of underwriters or wholesalers) at which price a Substantial amount of the Bonds (not less than 10'/o of
each maturity) were sold to the public; or (ii) if less than 10% ofany maturity has been sold, the price for that maturity
determined as of' the fline of the sale based upon the reasonably expected initial offering price to the public; and (iii)
that the initial public offering price does not exceed their fair market value of' the Bonds on the sale date, 'rile
Purchaser will also be required to provide a certificate ,it closing confirming the information required by this
paragraph.
OFFICIAL, STATEMENT
ary Official Statement containing -ination relative o
The ity has authorized the preparation of a 11'relimin, , pertinent infoi r e t
the Bonds. The Preliminary Official Statement when further supplemented with maturity dates, principal allIOLIntS, -,Ind
interest rates of the Bonds, arid any other information required by law or deemed appropriate by the City, shall
constitute a Final Official Statement of the City with respect to the Bonds, as that term is defined in Rule 15c2-12 of'
the Securities and Exchange Commission (tire "Rule"). By awarding the Bonds to any underwriter or underwriting
syndicate submitting an Official Bid Form therefore, the City agrees that, no more than seven (7) business days after
the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the
Bonds are awarded LIP to 40 copies of the Final Official Statenrent to permit each "Participating Underwriter" (as that
term is defined in the Rule) to comply with the provisions of such Rule. The City shall treat the senior managing
underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing Copies
of the Final Official Statement to the Participating Underwriter. Ally Underwriter executing and delivering an Official
Bid Form with respect to the Bonds agrees thereby that if its bid is accepted by the City, (i) it shall accept such
designation and (ii) it shall enter into ',I contractual relationship with all participating Underwriters of the Bonds for
purposes of assuring the receipt by each Such Participating Underwriter of the Final Official Statement.
CONTINUING DISCLOSURE
In order to assist bidders in complying with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the
resolutions for the Bonds and Continuing DisclOSUre Certificates, to provide certain annual financial information and
notices of certain events. The details of these undertakings are set forth in Appendix C of tyre preliminary Official
Statement. The City will deliver the Continuing Disclosure Certificates at closing, and any failure oil the part Of tile
City to deliver the same shall relieve the purchaser of' its obligation to purchase the Bonds. The City has complied in
all material respects with any undertaking previously entered into by it Under the Rule.
CUSIP NUMBERS
It is anticipated that CUSIIII numbers will be printed oil the Bonds and the Purchaser Must agree in the bid proposal to
pay the cost thereof. In no event will the City, Bond Counsel or Financial Advisor be responsible for the review or
express any opinion that the CIJSIP numbers are correct. Incorrect numbers on said Bonds shall not be cause fOr the
Purchaser to refuse to accept delivery of said Bonds.
BY 0 R f ) ER OF Tf I L' CITY CO U N Cl 1-
5 15 (.,far]< Avenue
Ames, ties, Iowa 50010
v i
SCI-IEDULE OF BOND YEARS
S11,165,000*
City of Attics, Iowa
General Obligation Corporate Purpose Bonds, Series 2NnQ
BoodoDamd: 0cmbc 29,2009
lntermtDuc ]uoC l,2Ol0and each Ducmmbo l mid }uocl mmomdty
("'un^dntivr
Year
111-incipa !^
13011d-Ysars
Bond Years
2010
$500,000
29444
294.44
2011
800,000
1,36044
1,660.89
2012
870,800
2'252.33
3'91322
2013
885,000
3,176.17
7,08939
2014
905,000
4.15194
11,24233
2015
925.000
5,16972
16.4/2.06
2016
955.000
6,292.39
22,704.44
2017
980,000
7,437.11
30,141.50
2018
1,015,000
8`71772
38.85928
2019
1,050,000
10/68.33
48,927.01
2020
1`O90.00V
11,541.89
60,469.50
2021
1,130,000
13,095.44
73,564!4
Average Muuuity(dated dote):
6.589Yeuu
*Pu1indoury;mbJ*umdno1go.
vu
OFFICIAL STATEMENT
CITY OF AMPS, IOWA
$11,165,000* General Obligation Corporate Purpose Bonds, Series 2009B
INTRODUCTION
This Preliminary Official Statement contains information relating to the City of Arises, Iowa. (the "City") and its
issuance of $11,165,000* General Obligation Corporate Purpose Bonds, Series 2009B (the "Bonds"). 'I'll i s
Preliminary Official Statement has been executed on behalf of the City and may be distributed in connection with the
sale of the Bonds authorized therein. Inquiries may be made to Public Financial Management, Inc., Terrace Place,
Suite 214, 2600 Grand Avenue, Des Moines, lowa, or by telephoning (515) 243-2600. Intbrination can also be
obtained from Mr. Duane Pitcher, Director of Finance, City of Ames, 515 Clark Avenue, Allies, Iowa 50010, or by
telephoning (5 15) 239-5 10 1.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Chapter 384 of' the Code of Iowa and resolutions to be adopted by the City
C01-11161 of the City I'k)r the Purpose of` providing funds to pay costs of the Bonds are being issued for the purpose of
Paying the Cost for file Construction of improvements to streets, storm sewers, sanitary sewers, 1111,11liCipal waterworks
system and Municipal electric system.
'file estimated Sources and Uses of the Bonds are as follows:
Sources of Funds
Par A niount of Bonds $ 11,165,000.00*
Uses of Funds
Deposit. to ProJect Fund $ 11,032,573.00
Underwriter's Discount 78,155.00
Costs of Issuance and Contingency 54,27100
'Total Uses $ 11,165,000.00
PAYMENT' OF AND SECURITY FOR THE 13ONDS
'file Bonds constitute valid and binding general obligations of the City, all(.] all taxable property within the corporate
boundaries of the City is subject to the levy of taxes to pay the principal of and interest on the Bonds. If the a1110UIlt
credited to the debt service fund for payment of the Bonds is insufficient to pay principal and interest, whether from
transfers or from origirial levies, the City niLlSt use funds in its treasury and is required to levy ad valorem taxes upon
all taxable property in the City sufficient to pay the debt service deficiency without limit as to rate or amount.
BOOK -ENTRY -ONLY SYSTEM
The itil'orniation contained in the following paragraphs of this Subsection "Book -Entry -Only Systern" has been
extracted from a schedule prepared by Depository Trust Company ("DTU) entitled "SAMPL,I_` OFFERIN(i
DOCUMENT LANGUAGE DESCRIBING BOOK - ENTRY -ON LY ISSUANCE." The information in this section
concerning D'I"C and DTC,'s book -entry system has been obtained from Sources that the City believes to be reliable,
but the City takes no responsibility for the accuracy thereof.
* Preliminary; Subject to change.
The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (file
"Securities"). The Securities will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or Such other name as may be requested by an authorized representative of DTC- One fully -
registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of
Such issue, and will be deposited with DTC. It, however, the aggregate principal arriount of any issue exceeds $500
million, one certificate will be issued with respect to each $500 million of principal alnOUnt, and an additional
certificate will be issued with respect to any remaining principal amount of such issue.
DTC, the world's largest Securities depository, is a limited -purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions ot'Section I 7A of the Securities I.,xchange Act oil' 1934. DTC
holds and provides asset servicing for over 3.5 million issues of ' U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments from over 100 countries that DTC's participants (the "Direct
Participants") deposit with DTC. D'-f'C also facilitates the post -trade settlement airiong Direct Participants of sales and
other SCCUl'itieS transactions in deposited Securities, through electronic CornpUterized book -entry transfers and pledges
between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S, and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC, is a wholly -owned subsidiary ofThe Depository Trust & Clearing
Corporation ("DIVU). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated Subsidiaries. Access to the system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a Custodial
relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants"). DTC has Standard &
Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Corninission. More information about DTC can be found at www.dtcc.corn and www.clic.org.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security (the
"Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants
acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership
interests ill Securities, except in the event that use of the book -entry system for the Securities is discontinued.
To facilitate Subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name
ofDTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative
of DTC. The deposit of Securities with DTC and their registration in the name of Cede & CO. Or Such other I)TC,
nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of
the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneficial Owners. The Direct and Indirect participants will remain
responsible for keeping account of their holdings on behalf of their Customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect frorn time to time.
Beneficial Owners of Securities may wish to take certain Steps to aUguICut the transmission to them of notices of
significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding
the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be
provided directly to them.
Rederription notices shall be sent to DTC. If less than all of the Securities Within all issue are being redeemed, DTC's
practice is to determine by lot the 111101.111t Of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co., nor any other DTC nominee, will consent or vote with respect to Securities unless
authorized by a Direct participant in accordance with DTC's MMI Procedures. Under its Usual procedures, DTC mails
an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s
consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date
identified in a listing attached to the Omnibus Proxy.
Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & CO., Or Such
other nominee as may be requested by all authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or Agent, oil
payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and Customary practices, as is the case with Securities
held for the accounts Of customers in bearer form or registered in "street narne," and will be the responsibility Of'SUCII
Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect
from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co., or such
other nominee as may be requested by all authorized representative of DTC, is the responsibility of the City or Agent,
disbursement Of Such payments to Direct Participants will be the responsibility of DTC, and disbursement Of Such
payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
Remarketing Agent, and shall effect delivery Of Such Securities by causing the Direct Participant to transter the
Participant's interest in the Securities, on DTC's records, to Remarketing Agent. The requirement for physical
delivery of Securities in connection with an optional tender or a mandatory Purchase will be deemed satisfied when the
ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book -
entry credit of tendered Securities to Remarketing Agent's DTC account.
DTC may discontinue providing its set -vices as depository with respect to the Securities at any time by giving
reasonable notice to the City or Agent. Under Such circumstances, ill the event that a Successor depository is not
obtained, Security certificates are required to be printed and delivered.
The City may decide to discontinue use of the SyStern of book -entry -only transfers through DTC (or a successor
Securities depository). In that event, Security certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC's book -entry system has been obtained from Sources that the
City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
FUTURE FINANCING
The City anticipates no additional general obligation borrowing within 90 days of the date of this Preliminary Official
Statement. However, the City Water Department is considering issuing all SRF loan in the winter of 2009. The SRI`
loan would be Secured and payable solely frorn the net revenues of the Water Department.
LITIGATION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to
meet its financial obligations.
DEBT" PAYMENT HISTORY
The City knows of no instance in which they have defaulted in the payment of principal and interest on its debt
LEGAL MATTERS
I-egal matters incident to the authorization, issuance and sale of the Bonds and with regard to the tax-exempt or taxable
.status of the interest thereon (see "TAX EXEMPTION AND RELATU-) TAX CONSIDERATIONS" )NSIDE.",RATIONS" herein) are
subject to the approving legal opinion Of Dorsey & Whitney UT, Des Moines, Iowa, Bond Counsel, a form of'which
is attached hereto as APPENDIX A. A signed copy of the opinion, dated and premised on law in effect as of the (late
of original delivery of file Bonds, will be delivered to the Purchaser at the time Of Such original delivery. The Bonds
are offered subject to prior sale and to the approval of legality of the Bonds by Bond Counsel.
The legal opinion to be delivered will express the professional judgment of Bond Counsel and by rendering a legal
opinion, Bond Counsel does not become an insurer or guarantor of the result indicated by that expression of
professional judgment or of the transaction or the future performance of the parties to the transaction.
Bond Counsel has not been engaged, nor has it undertaken, to prepare or to independently verily the accuracy of the
Official Statement, including but not limited to financial or statistical information of the City, except Bond Counsel
has reviewed and/or prepared the information and statements contained in the Official Statement Under
STATI.,'1MI3N'F," "PAYMENT OF AND SUJJRITY FOR T] It", BONDS", -FAX
AND RELATEI-) CONSIDERATIONS" and "CONTINUING DISCLOSURE" insofar as such statements contained
under Such captions purport to summarize certain provisions of the Internal Revenue Code of 1986, the Bonds and my
opinion rendered by Bond Counsel and Bond Counsel has prepared the documents contained in Appendix A "Ind
Appendix C.
TAX EXEMPTION AND RELATED CONSIDERATIONS
Federal. Income 'rax Exemption — The opinion of Bond Counsel will state that Under present laws and rulings,
interest oil file Bonds is excluded from gross income for federal incorne tax purposes, is not all item of tax preference
for purposes of the federal alternative minimum tax imposed on individuals and corporations under the Internal
Revenue Code of 1986 (the "Code"), and such interest need not be taken into account in determining adjusted Current
earnings for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal
income tax purposes).
The opinion set forth in the preceding sentence will be Subject to the condition that the City comply with all
requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon
be, or continue to be, excluded from gross income for Federal income tax purposes. Failure to comply with certain of.
Such requirements may Cause the inclusion of interest oil the Bonds in gross income for federal income tax purposes to
be retroactive to the date of issuance of the Bonds. In the resolution authorizing the issuance of the Bonds, the City
will covenant to comply with all Such requirements.
There may be certain other federal tax consequences to the ownership of the Bonds by certain taxpayers, including
without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies,
certain S corporations, individual recipients of Social Security and Railroad Retirement benefits and taxpayers who
may be deemed to have incurred (or Continued) indebtedness to Purchase or carry tax-exempt obligations. Bond
Counsel will express no opinion with respect to other federal tax consequences to owners of the Bonds. Prospective
purchasers Of Such bonds should Consult with their tax advisors as to Such matters.
Bank Qualification - In the resolution authorizing the issuance of the Bonds, the City will designate such bonds is
"qualified tax exempt obligations" within the rneaning of Section 265(b)(3) of the Code relating to the ability of
financial institutions to deduct from income for federal income tax purposes a portion of the interest expense that is
allocable to tax-exempt obligations.
RATING
The City has requested a rating on the Bonds frorn Moody's Investors Service, Inc. ("Moody's"). The City's long-
term General Obligation debt is currently rate(] 'Aaa' by Moody's. The existing rating on long -terra debt reflects only
the view of the rating agency and with any explanation of the significance of such rating may only be obtained from
Moody's. There is no assurance that Such rating will continue for any period of time or that it will not be revised or
withdrawn. Any revision or withdrawal of the rating may have an effect oil the market price of the Bonds.
FINANCIAL ADVISOR
The City has retained Public Financial Management, Des Moines, Iowa as Financial Advisor in connection with the
preparation of the issuance of the Bonds. In preparing the Preliminary Official Statement, the Financial Advisor has
relied on government offlicials, and other Sources to provide accurate information for disclosure purposes. 'file
Financial Advisor is not obligated to undertake, and has not undertaken, an independent verification of the aCCUraCY,
completeness, or fairness of the information contained in the Preliminary Official Statement. Public Financial
Management is in independent advisory firm and is not engaged in [lie business of underwriting, trading Or distributing
municipal securities or other public securities.
CONTINUING DISCLOSURE
In order to 1.)erniit bidders for the Bonds and other participating underwriters in the primary offering ofthe Bonds to
comply with paragraph (b)(5) Of Rule 15c2-12 promulgated by the Securities and Exchange ConuniSSiOn Under the
Securities Exchange Act of 1934, as amended (the "Rule"), the City will covenant and agree, for the benefit of' the
registered holders or beneficial owners from time to time Of the Outstanding Bonds, in its disclosure certificate, to
provide annual reports of specified information and notice of the occurrence of certain events, if' material, as
hereinafter described (the "Disclosure Covenants"). The City is the only "obligated person" in respect of the Bonds
within the meaning of the Rule for purposes of identifying the entities in respect of'which continuing disclosure must
be made. The information to be provided on an annual basis, the events as to which notice is to be given, if material,
and the other provisions of the DisClOSUI-C Covenants, including termination, amenchriLtit and remedies, are set forth in
the Form Of C'011tillUing Disclosure Certificate attached hereto as Appendix C to this Official StaterriellL
Breach of the DiSCIOSLire Covenants will not constitute a default or all "Event of Def,Wlt" under the Bonds or the
Resolution. A broker or dealer is to consider a known breach of the Disclosure Covenants, however, before
recommending the purchase or' sale of the Bonds in the secondary market. Thus, a failure oil the part of the City to
observe the Disclosure Covenants may adversely affect the transferability and liquidity of tire Bonds and their market
price.
Currently, the City is compliant with its Disclosure Covenants.
CERTIFICATION
'Yhe City has aUthOrized the distribution of this Preliminary Official Statement fOr use in C01111CCtioll With the initial
sale of the Bonds. I have reviewed the information contained within the Preliminary Official Statement prepared on
behalf ol'the City of Agnes, Iowa, by Public Financial Management, Des Moines, Iowa, and said Preliminary Official
Statement does not contain any material misstatements of fact nor omission of any material fact regarding the issuance
of$ Hj 65,000* General Obligation Corporate Purpose Bonds, Series 2009B.
CITY OFAMES, IOWA
/s/ Duane Pitcher, Director of Finance
* Preliminary; subject to change.
CITY PROPERTY VALUATIONS
IOWA PROPERTY VAUXATIONS
In compliance with Section 441.21 of the Code of Iowa, the State Director Of ReVC]ILle annually directs the county
auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The 2008
final Actual Values were adjusted by the Story County Auditor. The reduced Values, determined after the application
of rollback percentages, are the Taxable Values subject to tax levy. For assessment year 2008, the taxable value
rollback rate was 45.5893% of Actual Value for residential property; 93.85689/0 of Actual Value for agricultural
property; and 100% of Actual Value for commercial, industrial, railroad and utility property.
The Legislature's intent has been to limit the growth of statewide taxable valuations for the specific classes of property
to 4% annually. Political subdivisions whose taxable values are thus reduced or are unusually low in growth are
allowed to appeal the valuations to the State Appeal Board, in order to continue to fund present services.
1/1/2008 VALUATIONS (I'll"axes Payable July 1, 2009 through June 30, 2010
Taxable Value
100% Actual Value
L)Kifh �Rollback,
Residential
$2,372,161,712
S 1,08 1,452,054
Commercial
825,225,818
825,225,8 18
Industrial
110,467,400
110,467,400
Railroads
2,750,650
2,750,650
Utilities w/o Gas & Electric
6,723,421
6,723,421
Gross valuation
$3,3 17,329,00 1
$2,026,619,343
Less military exemption
(2,927,086)
(2,927,086)
Net valuation
$3,3 14,401,915
$2,023,692,257
Taxed separately
Ag. Land & Building
$1,261,090
$ 1,183,62 1
Gas & Electric Utilities
$13,450,778
$7,083,459
2008 (azoss,rAXABLE VALUATION BY CLASS OF PROPERTY')
Taxable ValUati(
Residential $1,081,452,054
Gas & Electric Utilities 7,083,459
Commercial, Industrial, Railroads and Utility 945,167,289
Total Gross Taxable Valuation $2,033,702,802
1) Excludes Taxable '1'11,'Increment and Ag. I.,and & Buildings.
6
Percent of Total
53.1 8'�'o
0.3 5)/o
40 47()/,�
100.00%
TREND OF VALUATIONS
Assoemcrd
Payable
Taxable Valuation
Taxable
Year
Fiscal Year
TIF Increment
2004
2005-06
$2.740,457,657
$1,804,026,691
$0
2085
2006-07
3,085,042,777
1,896,589,910
O
2006
2007-08
3,121,234,289
1`933,311,422
O
2007
2008-09
3,225,950,114
1,941.794,882
O
2008
2009-10
3,329,113,783
2,030,775,716
O
The |8OY/0 /\otum| Valuation, before »o||badc and u8e, the reduction of military exemption, includes Ag. Land 6L
Buildings, T}P loc,cooeot and Gus & Electric Utilities. The Taxable Valuation, with the no||buok and after the
reduction of' military exemption, luc|udca Gas &8|cc|ric Dli|idcy and excludes /\g. ],and &L Buildings and Taxable
T|F Increment. Iowa cities certify operating levies against Taxable Valuation excluding Taxable T|F Increment and
debt service levies are certified against Taxable Yu|on1ioo ino|udio�the ?nxaHnT}F lucpcmeo1.
LARGER TAXPAYERS
Taxpayer
DariUoAmerica Inc.
North Goou Mall Partners LLC
Wal-Mart Stores, 1nc Sto,o4256-O0
Clinic Building Company Inc.
Midwest Centers
Cyo|ono6aOLLC
Bu|| plastic Container Corp.
Campus Investors IS LLC
Grand Centel- Partners LLC
8usaHo|diogo[S|oryCou11ty Inc.
LEGISLATION
l/l/208&
Valuation
Industrial
$32,077,400
Commercial
24,482,600
Commercial
22`460,000
Commercial
15,981,080
Commercial
14252,000
Industrial
13,608,200
Industrial
10,024,008
Commercial
9,979,900
Commercial
9,262,800
Industrial
8,775,000
Frorn time to time, legislative proposals are pending in the Iowa General /\oocm6ly that wmu@, it' enacted, alter or
amend one or moruoft6oproperty ku matters described herein. It cannot he predicted whether or in what forms any
of such proposals, either pending or that may be introduced, may be eoactcd, and there call be no assurance that ouch
proposals will not apply to valuation, assessment or levy procedures for taxes levied by the City or have all adverse
impao| oil the future tux collections of the City. |o*o Code occ1iuo 762 provides that when un |o"/o political
aubdivioiou issues gcuoru| obligation bonds that: ^^T6e governing authority of these political ou6diviyious before
issuing bonds obu|i by resolution, provide for the uyscaamcn1 of an oouua| levy upon all the tuxu6|c property in the
political subdivision auOicicnt to pay the in1mccg and principal of' the bonds vvi/bio u period named not exceeding
twenty years. & certified copy ofLkiyresolution shall 6utiled with the County auditor o,the auditors of1bccounties in
which the political subdivision is |ouo1c6; and the filing shall make itoduty of{heauditors to enter mnovaUythis levy
for collection from the taxable property within the boundaries of the political subdivision until foods are /ca|izcJ to
CITY INDEBTEDNESS
DEBT LIMIT
Article XI, Section 3 of the State Of Iowa Constitution limits the amount of debt Outstanding at any time of any County,
Municipality or other political subdivision to no more than 5'Xo of the Actual Value of all taxable property within the
corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2008 Actual
Valuation currently applicable to the fiscal year 2009- 10, is as follows:
2008 Gross Actual Valuation of Property
$3,332,040,869
L,css: Military Exemption
Subtotal
$3,329,113,783
Legal Debt Limit of 5%
0.05
Legal Debt Limit
$166,455,689
Less: G.O. Debt Subject to Debt [Jrnit
--1--538 L)S-0QQJ *
Net Debt Limit
$ 112,590,689
DIRECT DEBT
General Obligation Debt Paid by Taxes (Includes the Bonds)
Principal
Date
Original
Final
Outstanding
of Issue
Amount
PUI-POSe
Maturity
As of 9/22/09
5/02A
$3,475,000
Capital Improvement Projects
6/21
$2,500,000
10/0211
5,885,000
Capital Improvement Plan
6/14
2,685,000
10/02C
7,580,000
Refunding Series 1994, 1995A and 1995E
6/10
425,000
9/03
6,555,000
Capital Improvement Projects
6/15
3,270,000
10/04
6,030,000
Capital Improvement Plan
6/14
3,210,000
9/05
5,495,000
Street Improvements, Fire Equipment and
6/17
2,670,000
Refunding Series 1997A
10/06
5,285,000
Street and Storm Sewer Improvements
6/18
4,265,000
11 /07A
9,630,000
Street Improvements & Aquatic Center
6/19
8,700,000
10/08A
8,355,000
Street In-iprovernents & Aquatic Center
6/20
7,980,000
4/09A
7,215,000
Refunding Series 1998A, 1999, 2000,
6/13
6,995,000
2001A and 2001 B
10/09B
11, 165,000
Capital Improvement Projects
6/21
IJ �105
Total G.O. Debt Subject to Debt
Limit
S53,865,000
* Preliminary; subject to change.
Annual Fiscal Year Debt Service Pavinents
G.O. Debt Paid by Property Taxes (includes the Bonds)
Fiscal
Year
2U0Q-|U
20|O-i{
2O|l'|2
20|2'l3
2OG-l4
2Ol4—l5
2Ul5-l6
2Ol6-l7
20|7-l8
2OlO-|o
20V-20
2020-21
oto|
OLItstanding, Debt
Principal
Principal
and terest�
86,630,000
$8,179,414
5,960,000
7,281,345
5,660,000
6,790,147
5.175`000
6,111,304
4,345,000
5,090,244
3,180,000
3,774,504
2,755,000
3`227,579
2,870,000
3.235.759
2,595,000
2,847.480
2,135,000
2.283,901
1,130,008
1,192,899
___265J000
278,581
* Preliminary; SUbJect to change.
The Bonds
hiocipu|
Principal*
aldl/teresi*
%500,000
$690,943
860,000
1,178,493
878,000
1,175,593
885,000
1,175,977
905,800
1,177`569
925,000
1,174,763
955,000
1,178,956
980,080
1.174`828
1,015`800
1^177,292
1,050,000
1,176,564
1,090000
1,177,609
$11,165,000*
Principal
Principal*
and Interest*
$7,130,000
$8,870,357
6,820,000
8,459,838
6,530,800
7,965,740
6,060,080
7,287,281
5,250.000
6'276,813
4`105,000
4,949,267
3,710,000
4,406,535
3,850,000
4`410,587
3,610,000
4,824,781
3,185,080
3,460,465
2,220,000
2,370,508
_L395lKXl
1,454,807
853`865,000*
The City has OLItstanding revellUe debt payable from hospital reverlUeS as f(AlOWS:
Date
Of Issue
0/03
Principal
Original GmJ Outstanding
AmOLIIIt pili� Maturity. &� oPVZD09
$24,385,000 K4ory[}rcc|cy Medical Center 6/22 $21,495,000
9
OVERLAPPING DEBT
City's
1/1/2008
Percent
Proportionate
Taxing District
Taxable Valuation o
In City
G.O. Debt
Share
Story County
$3,283,173,597
62.02"N)
$7,270,000
$4,508,854
Antes Community School District
1,939,398,484
98M2'V0
7,515,000
7,366,203
Gilbert Community School District
288,581,466
45.83%
8,275,000
3,792,433
Nevada Community School District
322,162,761
0.15%
3,865,000
5,798
United Con-ununity School District
202,567,954
1.2 I'No
0
Des Moines Area C,01111111,111ity College
33,610,813,667
6.06%
80,065,000
4,851,939
City's share of total overlapping debt: $20,525,227
'klXaMC Valuation includes Ag. Land & Buildings, all Utilities and Taxable 'l'll'Increment.
DEBT RATIOS
Debt/AC(Ual
Market Value Debt/50,731
G.O. Debt ($'3,329J 1_3 7K)) t P9
Total General Obligation Debt $53,865,000 1.62% $1,061.78
City's Share of Overlapping Debt $20,525,227 0.62(% $404.59
Based on the City's 2008 Actual Valuation; includes Ag. Land & Buildings, all Utilities and Taxable TIF Increment.
LEVIES AND TAX COLLECTIONS
Fiscal Year 1 u
2005/06
$18,339,910
2006/07
19,443,653
2007/08
20,175,738
2008/09
21,480,892
2008/09
22,050,530
Collected During percent
Collection Year Collected
$18,450,076 1 00.600/'o
19,290,940 9 9.2 1 ()//1)
20,147,655 99.86'%
21,317,823 99.241/l,o
--------In Process ol"Collection --------
Collections include delinquent taxes frorn all prior years. Taxes in Iowa hire delinquent each October I and April I and
a late payment penalty of I (Vo per month ot'delin(ILMICY is enforced as ofthose dates. If'delinqUent taxes are not paid,
the property may be offered at the regular tax sale on the third Monday of June following the delinquency date.
Purchasers at the tax sale must pay an allIOL11-It equal to the taxes, special assessments, interest and penalties Clue on the
property and funds so received are applied to taxes. A property owner may redeem frorn the regular tax sale but,
failing redemption within three years, the tax sale purchaser is entitled to a deed, which in general conveys the title free
and clear of all liens except future tax installments.
10
'rAX RATES
F\'2OU5X6
Fy2OO6/O7
FY20O7/08
[Y2000O9
FY20O9/iO
$/1SJ()00
S/$100
S�$J-UM0
S / S%0 00
S/SX000
Story County
555841
5.63175
5�53799
5�59701
5.81536
Story County Boypito|
0.36002
0A2049
0A2063
0]2050
042050
County /\g.Extension
0D8354
0.08904
0.09118
0.08904
0.09053
Otyof/\mcs
10.16610
1025190
10,43585
11.06239
10.85819
City Assessor
0]2243
0.32266
0.37197
84l66|
0]4391
&meoCumm. School District
13J2848
13J4398
1327297
13.62557
13.50764
Gilbert Comm. School District
19.93797
20.00344
19.98071
19.79131
19.83048
Nevada Comm.School District
17J6519
17J6119
1T75500
1643213
1645943
United Comm.School District
1235711
11.40784
10.52057
10.06277
968901
Des K4oinooArea Comm.College
068408
0.68688
0.60276
0.56386
0.56778
State ofIowa
0.80400
0.00400
0.00350
0D0350
0.00300
Rate:Total Tax
AnnesCSDResident
30.90706
31.1507
30J3685
31.77848
3168691
Gilbert CSDResident
37.11655
3741016
3T44459
37.94422
3T92975
Nevada CS[}Resident
34.94377
35.16791
3521888
34.58504
34J5870
United CGDResident
29j3569
28.81456
2798445
2821568
2778908
LEVY LIMITS
A city'sgeneral fund tax levy is limited to $8.10 per $1,000 oftaxable value, with provision for an additional$0.27por
$1,000 levy for an emer�ency fund which can he used for general fond purposes (Code of' Iowa, Chapter 384,
Diviaioul). Cities may exceed the $8 |0 |iooi1odon upon authorization by aspcoio| levy election. Further, there are
limited special purpose levies, which may be ccdificJ ouioido of [lie above -described levy \imi1s (Code of Iowa,
Section 384.12). The amount of the Ci{y`o general fund levy au6juc/ to the $8.10 |imi(a|ioo is $5.81420 fbr
FY2000/|8, and the City has levied no emergency levy. The City has certified special purpose |cvicu outoidooftbc
above described levy limits as /b\|ona: $8.47270 for police and fire retirement and $062580 for the operation and
maintenance ofapublic transit systcm. Debt service levies are not limited.
GENERAL FUND BUDGETS - ACCRUAL BASIS
Revenues:
Taxes
General Services
Streets
Police and Fire
Other
Operating'I"ransfers In
Total Revenues:
Expenditures:
Public Safety
Transportation
C011111-H.111ity Enrichment
General Government
Operating Transfers Out
Total Expenditures
Excess (deficiency) of Revenues Over
(Under) Expenditures
2008/09 Adopted
$12,477,588
2,454,424
467,077
2,655,508
1,638,751
6,437,286
$26,130,634
$13,5 15,557
125,733
6,522,610
3,258,434
2,708,300
$26,130,634
$0
2008/09 Actual 1)
$12,431,218
2,856,314
695,696
2,508,986
1,582,125
6,082, 83 6
$26,757,175
$1 3 ),216,75 5
143,491
6,449,595
3,278,014
3,182,915
$26,270,770
$486,405
Fund Balance at BOgirluing Of year $5,874,344 $5,874,344
Fund Balance at End of Year $5,874,344 S6,360,749
1� Unaudited actual results.
FUNDS ON HAND — CASH BASIS (Cash and Investments as of.hine 30, 2009)
Governmental
General Fund
Debt Service fund
Capital Projects Fund
Other Governmental Funds
Business -type
Mary Greeley Medical Center
Electric Utility
Sewer Utility
Water Utility
Other Enterprise Funds
Internal Service Funds
Total All Funds
IN
$5,803,349
1,901,246
4,489,635
16,297,901
$82,329,147
29,514,047
5,558,532
6,005,930
5,244,041
12,914,644
$ l7(),10-5118,472
$13,101,741
2,650,067
686,156
2,667,736
1,846,307
0 �624 380
$27,576,393
$13,984,430
131,586
6,962,441
4,232,141
2,865,795
$28,176,393
($600,000)
$6,360,749
$5,760,749
THE CITY
CITY GOVERNMENT
The City is governed Under and operates under a Mayor -Council form of government with a City Manager. The
principle of this type of government is that the Council sets policy and the City Manager carries it Out. The Six
members of the Council are elected for staggered four -yeas terms. One member is elected from each ()['the 1`0LIr Wards
and two are elected at large. The Council appoints the City Manager as well as the City Attorney. The City Manager
is the chief administrative officer of the City. The Mayor is elected for a fOUr-year term, presides at Council meetings
and appoints members of various (..ity boards, commissions and committees with the approval of the Council.
EMPLOYEES; PENSIONS
'I'lie City has 1,325 full-time employees of which 488 are governmental employees and 837 are employees of the Mary
Greeley Medical Center and 988 part-time employees (including Seasonal employees) of which 416 are governtriental
employees and 572 are employees ofthe Mary Greeley Medical Center. Included in the City's full-linie employees are
50 sworn police officers and 38 firefighters.
The City contributes to the Iowa. Public Employees Retirement System (IPEIZS),a Cost sharing In III tiple-einp] (,)Yet -
public employees' retirement system designed as a supplement to Social Security. 'I'lle pension plan provides
retirerrient and death benefits, which are established by State statute. The City is current in its obligation to IPERS,
which has been as follows: $3,680,401 in FY 2006/07, $4,137,527 in I"Y 2007/08 and $4,807,938 in FY 2008-09.
The City also contributes to the Municipal Fire and Police Retirement System of Iowa (MFPRSI), ,I benefit plan
administered by a Board of Trustees. MFPRSI provides retirement, disability and death benefits that are established
by State statute to plan members and beneficiaries. Plan members are required to contribute 9.35% of their earnable
compensation and the City's contribution rate is 18.75% of carnable compensation. 'I'lic City is current in its
obligation to MFPRSI, which has been as follows: $1,467,354 in FY 2006/07, $1,412,973 in FY 2007/08 and
$1,641,527 in FY 2008-09.
UNION CONTRACTS
City employees are represented by the following five bargaining units
Ba
International Association of Firefighters June 30, 2011
Public, Professional and Maintenance Employees June 30, 2010
International Brotherhood of Electrical Workers June 30, 2010
International Union of Operating Engineers (Local 234C) June 30, 2011
International Union of Operating Engineers (L.ocal 234D) June 30, 201 1
OTHER POST EMPLOYMENT BENEFITS
In addition to providing pension benefits, the City and Mary Greeley Medical Center (the "Medical Center") offers
medical and prescription drug coverage to its retirees and then- eligible dependants. lZetirces can purchase health
insurance at the group rate cost. In addition, the Medical Center provides a flat $2,500 life insurance benefit to its
retirees. Employees Must be a ruininlUrn of" 55 years old, have been employed for the preceding four years, and
Currently be enrolled in a sponsored health insurance plan at the time of retirement. Benefits terminate upon attaining
Medicare eligibility.
Health insurance for these retirees, while at the individual's own expense, is included within the City's overall
insurance package. Therefore, a portion of the coverage is being Subsidized by the City and its current employees.
Based on the results of the City's July 1, 2006 and July 1, 2007 actuarial Studies, it has been estimated that the City's
accrued liability is $7,995,306 with an annual required contribution for FY 2008 of$1,050,1 85.
13
INSURANCE
Thc�iry'o insurance coverage imaufollows:
Type Of 111SUrance
General Liability
/\utoLja6i)dy
Wrongful Acts
Bxccoa (over all other coverage except Iowa liquor liability)
Law Enforcement
Public Official
Employee Benefit
Medical Malpractice
Doderiuouredk4o\orls|
Uninsured Motorist
Commercial Property
Commorciu|Pmperty & Boiler and Machinery
Ycomriam—l0A
Airport Liability
14
All Gniits
S6/00,000
$6,000,000
$6,000,000
$6,000,000
$6,U00,0O0
$6,000,000
$l,000,0OU
$6,000,000
$1,000,000
Sl,00O,O80
$3,000,000
GENERAL INFORMATION
LOCATION ANDTRANSPORTATION
The City is located in Story County in central Iowa. It is approximately thirty miles north of Des Moines, Iowa, the
State capital and largest city. The City is located on Interstate Highway 35. The City was incorporated in 1869 Linder
the laws of the State oflowa, later amended in July, 1975 under the Flome RUIC City Act.
The City, with a United States Census estimated 2008 population ot'56,5 10, is known for its excellent duality of life
which inClUdes a relatively crime -free environment, an extensive park system, superior cultural/recreations facilities
and a nationally recognized school system. Ames is the home of Iowa. State University ("ISU"). ISLJ was established
in 1859 and is in integral part ofthe community.
The City operates a mass transit system to provide efficient and economical transportation to all members of" the
community. A Fixed I-01.1ting service is available on a daily basis to most residents and a Dial -A -Ride service is
available for elderly or handicapped residents. The City operates a municipal airport, which handles primarily charter
services. National air service is available at the Des Moines International Airport, approximately thirty rniICS SOLIth of
the City. The City is also provided freight services through the L;nion Pacific Railroad line.
LARGER EMPLOYERS
A representative list of larger employers in the City is as follows:
E niployer Type of Business
Iowa State University
Higher Education
Mary Greeley Medical Center
health (,are
Iowa Department of"Fransportation
Public Transportation
City of Ames
Municipal Government
I ly-Vee Food Stores
Grocery
Ames COM1111,111ity School District
Education
Sanger-Danfoss Company
I lydro-Transinissions
McFarland Clinic, P.C.
I 'lealth Care
Ames I-aboratories
Research
3M Company
Manufacturing
National Animal Disease Center
USDA Research
Hach Company
Water Analysis EqUiprnent
National Veterinary Service Lab
Veterinary Research
Wal-Mart
Retail
Cub Foods
Grocery
J.C. Penney
Retail
Ball Corporation
Plastics Manufacturing
Target Stores
Retail
Access Direct Telemarketing
Research
Iowa Newspapers, Inc.
Print Journalism
K-Mart
Retail
Barilla
Food Distribution
Sarn'S Club
Retail
IrICILides full-time, part-time and seasonal employees.
Updated total includes the elimination of 145 positions in June 2009.
Number of Ern ployees 1)
14,374
1,409
1,062
904
733
650
650 2)
520
466
430
250
250
233
230
200
190
180
175
150
137
130
129
125
SOL11-CC: The City, the Armes Fconornic Development Commission and Locationone hilormatiori System website.
15
BUILDING PERMITS
ity officials reported the following construction activity as of June 30, 2009. Permits for the City are reported on a
calendar year basis. The figures below include both new construction and remodeling.
2005 2006 2007 2008 2009
Residential Construction:
Number of units: 388 494 492 462 222
Valuation: $94,241,981 $38,109,326 $ 37,789,2 19 $25,656,078 $8,792,959
(.7ornmercial Construction
Number of units:
162
Bo
163
175
81
Valuation:
$25,859,461
$34,072,512
$66,3 53,738
$61,157,671
$9,589,316
Total Permits
550
674
655
637
303
Total Valuations
$120,101,442
$72,18 1,838
$104,142,957
$86,813,749
$18,3 82,275
U.S. CENSUS DATA
Population Trend
1980 U.S. CeIISLIS
1990 U.S. CeIISLIS
2000 U.S. Census
2008 U.S. Census Estimate
SOL11-CC: U.S. CeIISLIS BUI-CM1 WCI)Sile.
UNEMPLOYMENT RATES
43,775
47,198
50,731
56,510
City of Story State of
Ames ('101,111tv Iowa
Annual Averages: 2005 2.8% 3. 1 IYO 4.0%
2006 14% 2 . 7 (Yo 18%
2007 2.5'No 2.8% 3. 7 O/o
2008 2.7% 3.0% 4.1%
2009 (Jau-July Only) 3.4% 4.0% 5.5%
Source: Iowa Workforce Devclopn,icnt (,,enter website.
EDUCATION
Public CCILICniOn is provided by the Ames Community School District, with an enrollment for the 2008/09 school year
of 4,340. The district, with approximately 680 employees, owns and operates one early childhood center, seven
elementary schools, one middle school and one high school. Nevada Community School District, Gilbert Community
School District and United COMMUnity School District all lie partially within the City and [)rOVidC Public education to
portions ofthe City.
The Iowa State University ("ISU") 2008 fall term enrollment was 26,856. ISu is the City's largest employer with
faculty and staff totaling approximately 14,374, including teaching assistants and hourly part-tiaie erriployces. The
University, in addition to its educational function, is a leading agricultural research and experimental iflStil,11601L.
16
The Iowa State Center, which is the cultural and athletic center of the University and City, is a complex of five
structures, all completed since 1969. It consists of two theaters, a football stadium, a coliseum and a C0111(inUing
education building which attract to Ames major athletic, dramatic and musical events, as well as seminars and
conferences.
In addition to ISU located in the City, the l'011(Ming institutions provide higher education within 30 miles of'the City:
Des Moines Area Community College, Upper Iowa University, Sirripson College, Hamilton College, Grand View
College and Drake University.
FINANCIAL. SERVICES
Financial services for the residents of the City are provided by First National Bank Ames, Iowa. In addition, the City
is served by branch offices of Bank of the West, Bankers "Trust Company, N.A., City State Bank'), CoBank ACB,
I'Achange State Bank, F&M Bank -Iowa, First American Bank, First Federal Savings Bank of Iowa, Midwest I leritage
Bank, F.S.B., US Bank, N.A., Valley Bank and Wells Fargo Bank, N.A., as well as by several credit unions.
I irst National Bank reports the following deposits as of'Decernber 31" for each year:
Year First National Bank
2004 $343,352,000
2005 355,057,000
2006 358,077,000
2007 388,924,000
2008 362,394,000
1) Ames Community Bank was acquired by City State Bank in January 2009.
Source: Federal Deposit Insurance Corporation (FDIC) website.
FINANCIAL STA,rF.MENTS
The City's June 30, 2008 Comprehensive A1111Ual Financial Report, as prepared by City Management and audited by a
certified public accountant, is reproduced as Appendix B. The City's certified pUblic accountant has not consented to
distribution of the audited financial statements and has not undertaken added review of their presentation. Further
information regarding financial performance and copies of the City's prior Comprehensive Annual Financial Report
may be obtained From Public I inancial Management.
a
APPENDIX A
FORM OF LEGAL, OPINION
APPENDIX B
.JUNE'30,2008 COMPREHENSIVE ANNt..JAL., FINANCIAL RFIPORT
APPENDIX C
I
FORM OF CON'I'IN[.-JIN(..j DISCI.,OSt.JRI.-,CEIZ'-]-'If�ICA'I'f�'I
OFFICIAL 1311) FORM
To: City Council of
City ol'Ames, Iowa
Sale Date: September 22, 2009
1 1:00 AM, CT
RFI: $11, 165,000* General Obligation Corporate Purpose B0IIdS, Series 200913 (the "Bonds")
For all or none of the above Bonds, in accordance with the Teens of Offering, we will pay you
- ------ (not less than $11,086,845) plus accrued interest to date of delivery f'()I- fully
registered bonds bearing interest rates and maturing in the stated years as follows:
Coul �on mN 'Lit
2010
2011
2012
2013
2014
2015
COUPOn M, tLurity
. -L-
2016
2017
2018
2019
2020
2021
In making this offer we accept all of the terms and conditions of' the Terins of' Offering published in the Preliminary
Official Statement dated September 14, 2009. In the event of failure to deliver these Bonds in accordance with the Terms
of Offering as printed in the Preliminary Official Statement and made a part hereof ' we reserve the right to withdraw our
ofTer. All blank spaces of this offer are intentional and are not to be construed as in ornission.
Not as a part 01'our offer, the above quoted prices being controlling, but Only as an aid for the verification ot'the offer, we
have made the following computations:
Z�
NFT lNTl..`.lZl.`S'l" COST: $
TRUl' INTEREST COST:
Account Manager:
Account Members:
% (Based on dated date ol'October 29, 2009)
By:
The foregoing offer is hereby accepted by and on behalf ot'the City COUnCil of the City of Ames, Iowa this 22 nd day of,
September, 2009.
Attest:
By:
Title: Title: