HomeMy WebLinkAboutA033 - Preliminary Official Statement Dated April 16, 2013 tJF IC IA1 S A 6 I'ME' t'OA 11.13 APIZIL,16.2013
New&Refunding Issues Rating:Moody's Investors Service Application Made
In the opinion of Dorsey& Whitney LLP,Bond Counsel, according to present laws,rulings and decisions and assuming compliance with certain covenants,the interest on the Bonds
(including any original issue discount properly allocable to an owner thereon will be excluded from gross income for federal income tax purposes. Interest on the Bonds is not an item of
tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations under the Internal Revenue Code of 1986,provided,however,such interest is
taken into account in determiningadjusted current earnings or the purpose o com utin the alternative minimum tax imposed on corporations(as de coed or ederal income taxpurposes).
l gf P P f P 8 P P I� f I
The City will NOT designate the Bonds as"qualified tax-exempt obligations". See"TAX EXEMPTION AND RELATED CONSIDERATIONS"herein for more information.
CITY OF AMES,IOWA
$23,365,000*General Obligation Corporate Purpose and Refunding Bonds,Series 2013
w BIDS RECEIVED: Tuesday,May 14,2013, 10:00 o'clock A.M.,Central Time
AWARD: Tuesday,May 14,2013,7:00 o'clock P.M.,Central Time
Dated: Date of Delivery(May 30,2013) Minimum Bid: $23,124,073
Principal Due: June 1,2014-2032 Good Faith Deposit: Required of Purchaser Only
The $23,365,000* General Obligation Corporate Purpose and Refunding Bonds, Series 2013 (the `Bonds") are being issued pursuant to
Division III of Chapter 384 of the Code of Iowa and a resolution to be adopted by the City Council of the City of Ames,Iowa(the"City").
The Bonds are being issued for the purpose of paying the cost of constructing improvements to streets,solid waste disposal facilities and to
pay the costs to expand the Ames Public Library in accordance with a referendum passed by voters on November 8,2011. In addition, a
portion of the Bonds are being issued to provide funds to pay costs to current refund on June 14,2013,$690,000 of the City's outstanding
General Obligation Corporate Purpose Bonds, Series 2004 dated October 15,2004(the"Series 2004 Bonds")and$1,440,000 of the City's
outstanding General Obligation Corporate Purpose and Refunding Bonds, Series 2005A dated September 13, 2005 (the "Series 2005A
Bonds"). The purchaser of the Bonds agrees to enter into a loan agreement(the"Loan Agreement")with the City pursuant to authority
contained in Section 384.24A of the Code of Iowa. The Bonds are issued in evidence of the City's obligations under the Loan Agreement.
a The Bonds are general 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 Cede&Co., as
nominee of The Depository Trust Company("DTC"). DTC will act as securities depository for the Bonds. Individual purchases may be
made in book-entry-only form, in the principal amount of$5,000 and integral multiples thereof. Purchasers will not receive certificates
representing their interest in the Bonds purchased. The City's Treasurer as Registrar/Paying Agent(the"Registrar")will pay principal on
the Bonds, payable annually on June 1, beginning June 1, 2014, and interest on the Bonds payable initially on December 1, 2013 and
thereafter on each June 1 and December I to DTC,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 of a
bond as shown on the records of ownership maintained by the Registrar as of the 15`t'day of the month next preceding the interest payment
date(the"Record Date").
MATURITY: June 1 as follows:
Year Amount* Year Amount*
2014 $2,140,000 2024 $1,405,000
2015 1,550,000 2025 1,450,000
2016 1,580,000 2026 750,000
2017 1,600,000 2027 775,000
2018 1,245,000 2028 800,000
2019 1,270,000 2029 825,000
2020 1,285,000 2030 855,000
2021 1,310,000 2031 885,000
2022 1,340,000 2032 920,000
2023 1,380,000
*PRINCIPAL
ADJUSTMENT: The City reserves the right to increase or decrease the aggregate principal amount of the Bonds in such amount as
it determines to be necessary to accomplish the refunding of the Series 2004 Bonds and the Series 2005A Bonds.
However, the maximum par amount will not exceed$23,500,000. Such change will be in increments of$5,000
and may be made in any of the maturities. The purchase price will be adjusted proportionately to reflect any
change in issue size.
y REDEMPTION: Bonds due after June 1,2021 will be subject to call prior to maturity in whole,or from time to time in part,in any
order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City,upon
terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty(30)days
prior to the date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown
on the registration books.
The Bonds are offered, subject to prior sale,withdrawal or modification, when, as and if issued and subject to the unqualified approving
legal opinion of Dorsey&Whitney LLP,Bond Counsel,Des Moines,Iowa,to be furnished upon delivery of the Bonds. It is expected that
u the Bonds will be available for delivery through the facilities of DTC on or about May 30,2013. The Preliminary Official Statement will
�E be further supplemented by offering prices,interest rates,selling compensation,aggregate principal amount,principal amount per maturity,
anticipated delivery date and underwriter, together with any other information required by law or deemed appropriate by the City, shall
w constitute a Final Official Statement of the City with respect to the Bonds, as that term is defined in Rule 15c2-12 promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934,as amended.
COMPLIANCE WITH S.E.C.RULE 15c2-12
Municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations,
Securities Exchange 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 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: This Preliminary Official Statement has been distributed to City staff as well as to prospective bidders for
an objective review of its disclosure. Comments, omissions or inaccuracies must be submitted to Public Financial
Management, Inc. (the "Financial Advisor") at least two business days prior to the sale. Requests for additional
information or corrections in the Preliminary Official Statement received on or before this date will not be considered a
qualification of a bid received. If there are any changes, corrections or additions to the Preliminary Official Statement,
prospective bidders will be informed by an addendum at least one business day prior to the sale.
Final Official Statement: Upon award of sale of the Bonds, the legislative body will authorize the preparation of a Final
Official Statement that includes the offering prices, interest rates, selling compensation, aggregate principal amount,
principal amount per maturity, anticipated delivery date and other information required by law and the identity of the
underwriter (the "Syndicate Manager") and syndicate members. Copies of the Final Official Statement will be delivered
to the 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 in
part, for any other purpose.
This Preliminary Official Statement and any addenda thereto were prepared relying on information from the City and
other sources,which are believed to be reliable.
Bond Counsel has not participated in the preparation of this Preliminary Official Statement and is not expressing any
opinion as to the completeness or accuracy of the information contained therein.
Compensation of the Financial Advisor,payable entirely by the City,is contingent upon the sale of the issue.
TABLE OF CONTENTS
TERMSOF OFFERING...........................................................................................................................................................i
SCHEDULEOF BOND YEARS............................................................................................................................................A
INTRODUCTION......................................................................................................................................................................1
Authorityand Purpose.............................................................................................................................................................I
Optional Redemption;Interest on the Bonds...........................................................................................................................2
Payment of and Security for the Bonds;Book-Entry-Only Issuance.......................................................................................2
FutureFinancing......................................................................................................................................................................4
Litigation;Debt Payment History............................................................................................................................................4
Legality....................................................................................................................................................................................4
Tax Exemption and Related Considerations............................................................................................................................4
Changes in Federal and State Tax Law....................................................................................................................................6
Rating.......................................................................................................................................................................................7
FinancialAdvisor.....................................................................................................................................................................7
ContinuingDisclosure.............................................................................................................................................................7
Certification.............................................................................................................................................................................7
CITYPROPERTY VALUATIONS.........................................................................................................................................8
IowaProperty Valuations........................................................................................................................................................8
1/1/2012 Valuations(Taxes payable July 1,2013 through June 30,2014).............................................................................8
2012 Gross Taxable Valuation by Class of Property...............................................................................................................8
Trendof Valuations.................................................................................................................................................................9
LargerTaxpayers.....................................................................................................................................................................9
Legislation.............................................................................................................................................................................10
CITYINDEBTEDNESS..........................................................................................................................................................11
DebtLimit..............................................................................................................................................................................I I
DirectDebt.............................................................................................................................................................................I I
OtherDebt.............................................................................................................................................................................12
OverlappingDebt...................................................................................................................................................................13
DebtRatios............................................................................................................................................................................13
Leviesand Tax Collections....................................................................................................................................................14
TaxRates...............................................................................................................................................................................14
LevyLimits............................................................................................................................................................................14
Funds on Hand(Cash and Investments as of February 28,2013)..........................................................................................15
General Fund Budgets(Accrual Basis)..................................................................................................................................15
THECITY................................................................................................................................................................................16
CityGovernment...................................................................................................................................................................16
Employeesand Pensions........................................................................................................................................................16
Union Contracts;Other Post Employment Benefits..............................................................................................................16
Insurance................................................................................................................................................................................18
GENERALINFORMATION.................................................................................................................................................19
Locationand Transportation..................................................................................................................................................19
LargerEmployers..................................................................................................................................................................19
BuildingPermits....................................................................................................................................................................20
U.S.Census Data...................................................................................................................................................................20
UnemploymentRates.............................................................................................................................................................20
Education...............................................................................................................................................................................20
Financial Services;Financial Statements...............................................................................................................................21
APPENDIX A-FORM OF LEGAL OPINION
APPENDIX B-JUNE 30,2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX C-FORM OF CONTINUING DISCLOSURE CERTIFICATE
OFFICIAL BID FORM
City of Ames, Iowa
Ma oy r/City Council
Member Office Initial Term Commenced Term Expires
Ann Campbell Mayor January 3,2006 December 31,2013
Peter Orazem Council Member—At Large January 4,2010 December 31,2013
Matthew Goodman Council Member—At Large January 1,2004 December 31,2015
Tom Wacha Council Member— 1s1 Ward January 4,2010 December 31,2013
Jami Larson* Council Member—2nd Ward November 14,2006 December 31,2013
Jeremy Davis Council Member—3`d Ward January 4,2010 December 31,2013
Victoria Szopinski* Council Member—4 h Ward January 1,2012 December 31,2013
Sawyer Baker Ex-Officio
Administration
Steven Schainker,City Manager
Duane Pitcher, Director of Finance
Diane Voss, City Clerk
Roger Wisecup II,City Treasurer
John Dunn,Director of Water and Pollution Control
John Joiner,Director of Public Works
Don Kom,Director of Electric Utility
City Attorney
Vacant
Ames,Iowa
Bond Counsel
Dorsey&Whitney LLP
Des Moines,Iowa
Financial Advisor
Public Financial Management,Inc.
Des Moines, Iowa
* Redistricting from the 2010 census resulted in council members Jami Larson and Victoria Szopinski residing in the same ward.
Both had regular terms scheduled to expire December 31, 2015, but the terms will now expire December 31, 2013 due to the
redistricting.
TERMS OF OFFERING
CITY OF AMES,IOWA
Bids for the purchase of the City of Ames, Iowa's (the "City") $23,365,000* General Obligation Corporate Purpose
and Refunding Bonds, Series 2013 (the "Bonds") will be received on Tuesday, May 14, 2013, before 10:00 o'clock
A.M. Central Time after which time they will be tabulated. The City Council will consider award of the Bonds at 7:00
o'clock P.M. Central Time, on the same day. Questions regarding the sale of the Bonds should be directed to the
City's Financial Advisor, Public Financial Management, Inc., 801 Grand Avenue, Suite 3300, Des Moines, Iowa,
50309, or by telephoning 515-243-2600. Information can also be obtained from Mr. Duane Pitcher, Director of
Finance, City of Ames, 515 Clark Avenue, Ames, Iowa, 50010, or by telephoning 515-239-5114. The following
section sets forth the description of certain terms of the Bonds as well as the TERMS OF OFFERINGS with which all
bidders and bid proposals are required to comply,as follows:
DETAILS OF THE BONDS
GENERAL OBLIGATION CORPORATE PURPOSE AND REFUNDING BONDS, SERIES 2013, in the principal
amount of$23,365,000* to be dated May 30, 2013, in the denomination of$5,000 or multiples thereof, will mature on
June 1 as follows:
Year Amount* Year Amount*
2014 $2,140,000 2024 $1,405,000
2015 1,550,000 2025 1,450,000
2016 1,580,000 2026 750,000
2017 1,600,000 2027 775,000
2018 1,245,000 2028 800,000
2019 1,270,000 2029 825,000
2020 1,285,000 2030 855,000
2021 1,310,000 2031 885,000
2022 1,340,000 2032 920,000
2023 1,380,000
*Preliminary;subject to change. The City reserves the right to increase or decrease the aggregate principal
amount of the Bonds in such amount as it determines to be necessary to accomplish the refunding of the
Series 2004 Bonds and the Series 2005A Bonds. However, the maximum par amount will not exceed
$23,500,000. Such change will be in increments of$5,000 and may be made in any of the maturities. The
purchase price will be adjusted proportionately to reflect any change in issue size.
OPTIONAL REDEMPTION
Bonds due after June 1, 2021 will be subject to call prior to maturity in whole, or from time to time in part, in any
order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon
terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days
prior to the date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown on the
registration books.
INTEREST
Interest on the Bonds will be payable on December 1, 2013 and semiannually on the 1st day of June and December
thereafter. Principal and interest shall be paid to the registered holder of a bond as shown on the records of ownership
maintained by the Registrar as of the 15a' day of the month preceding the interest payment date (the "Record Date").
Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to
rules of the Municipal Securities Rulemaking Board.
i
GOOD FAITH DEPOSIT
A good faith deposit(the "Deposit") in the amount of$233,650 for the Bonds is required of the lowest bidder only for
the Bonds. The lowest bidder is required to submit 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 12:00 o'clock P.M. Central Time on the day of sale of the
Bonds. If not so received, the bid of the lowest bidder may be rejected and the City may direct the second lowest
bidder to submit a Deposit and thereafter may award the sale of the Bonds to the same. No interest on a Deposit will
accrue to the successful bidder (the "Purchaser"). The Deposit will be applied to the purchase price of the Bonds. In
the event the Purchaser fails to honor its accepted bid,the Deposit will be retained by the City.
FORM OF BIDS AND AWARD
All bids shall be unconditional for the entire issue of Bonds for a price not less than$23,124,073,plus accrued interest,
and shall specify the rate or rates of interest in conformity to the limitations as set forth in the "RATES OF
INTEREST" section. Bids must be submitted on or in substantial compliance with the OFFICIAL BID FORM
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(the "TIC")basis assuming compliance with the "GOOD FAITH DEPOSIT" section. The TIC shall
be determined by the present value method, i.e., by ascertaining the semiannual rate, compounded semiannually,
necessary to discount to present value as of the 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 therefore. The TIC shall be stated in terms of an annual percentage rate and
shall be that rate of interest which is twice the semiannual rate so ascertained (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 bids 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 of matters 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 following limitations:
I. Each annual maturity must bear a single rate of interest from the dated date of the Bonds to the date of
maturity.
2. Rates of interest bid must be in multiples of one-eighth or one-twentieth of one percent.
3. Each rate of interest specified for any annual maturity shall not be less than a rate of interest specified for any
earlier maturity. Rates must be level or in ascending order.
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RECEIPT OF BIDS
Forms of Bids: Bids must be submitted on or in substantial compliance with the TERMS OF OFFERING and
OFFICIAL BID FORM provided by the City or through PARITY® competitive bidding system (the "Internet Bid
System"). The City shall not be responsible for malfunction or mistake made by any person, or as a result of the use
of an electronic bid or the means used to deliver or complete a bid. The use of such facilities or means is at the sole
risk of the prospective bidder who shall be bound by the terms of the bid as received.
No bid will be accepted after the time specified in the OFFICIAL BID FORM. The time as maintained by the Internet
Bid System shall constitute 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.
Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Director of Finance, City Hall,
515 Clark Avenue,Ames,Iowa 50010.
Electronic Internet Bidding: Electronic internet bids must be submitted through the Internet Bid System. Information
about the Internet Bid System may be obtained by calling 212-404-8102.
Each bidder shall be solely responsible for making necessary arrangements to access the Internet Bid System for
purposes of submitting its internet bid in a timely manner and in compliance with the requirements of the TERMS OF
OFFERING and OFFICIAL BID FORM. The City is permitting bidders to use the services of the Internet Bid System
solely as a communication mechanism to conduct the Internet bidding and the Internet Bid System is not an agent of
the City. Provisions of the TERMS OF OFFERING and OFFICIAL BID FORM shall control in the event of conflict
with information provided by the Internet Bid System.
Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the City's Financial Advisor,
Public Financial Management, Inc. (facsimile number: 515-243-6994). Electronic facsimile bids will be sealed and
treated as sealed bids.
Electronic facsimile bids received after the deadline will be rejected. Bidders electing to submit bids via 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 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 prospective
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 facsimile numbers prior to the time of sale specified above. Time
of receipt shall be the time recorded by the facsimile operator receiving the bids.
BOOK-ENTRY-ONLY ISSUANCE
The Bonds will be issued by means 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 form and one bond certificate, representing the
aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as
nominee of The Depository Trust Company("DTC"),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 of$5,000 or any multiple 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 Registrar to DTC or its nominee 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 of the Bonds, will be required to deposit the bond certificates with
DTC.
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MUNICIPAL BOND INSURANCE AT PURCHASER'S OPTION
If the 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. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the Purchaser, except that, if the City has requested 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 via Fast Automated Securities Transfer ("FAST") delivery with the
Registrar holding the Bonds on behalf of DTC, against full payment in immediately available cash or federal funds.
The Bonds are expected to be delivered within forty-five days after the sale. Should delivery be delayed beyond sixty
days from the date of sale for any reason except failure of performance by the Purchaser, the Purchaser may withdraw
their bid and thereafter their interest in and liability for the Bonds will cease. When the Bonds are ready for delivery,
the City will give the Purchaser five working days notice of the delivery date and the City will expect payment in full
on that date; otherwise reserving the right at its option to determine that the Purchaser failed to comply with the offer
of purchase.
INFORMATION FROM PURCHASER
The Purchaser will be required to certify to the City immediately after the opening of bids: (i)the initial public offering
price of each maturity of the Bonds(not including sales to bond houses and brokers or similar persons or organizations
acting in the capacity of underwriters or wholesalers) at which price a substantial amount of the Bonds (not less than
10% of each maturity)were sold to the public; or(ii)if less than 10% of any maturity has been sold, the price for that
maturity determined as of the time 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. The
Purchaser will also be required to provide a certificate at closing confirming the information required by this
paragraph.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to
the Bonds. The Preliminary Official Statement will be further supplemented by offering prices, interest rates, selling
compensation, aggregate principal amount, principal amount per maturity, anticipated delivery date and underwriter,
together with 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 (the "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 up to 20 copies of the Final Official Statement to permit each "Participating Underwriter" (as that term is
defined in the Rule)to comply with the provisions of the 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. Any 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 a 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.
iv
CONTINUING DISCLOSURE
In order to assist bidders in complying with paragraph (b)(5) of the Rule, the City will undertake, pursuant to the
resolution for the Bonds and the Continuing Disclosure Certificate for the Bonds, to provide certain annual financial
information and notices of the occurrence of certain material event (the "Disclosure Covenants"). A description of
these undertakings is set forth in APPENDIX C of this Preliminary Official Statement. The City will deliver the
Continuing Disclosure Certificate at closing,and any failure on the part of the 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 its previous
Disclosure Covenants.
CUSIP NUMBERS
It is anticipated that Committee on Uniform Security Identification Procedures ("CUSIP") numbers will be printed on
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 CUSIP numbers are correct.
Incorrect CUSIP numbers on said Bonds shall not be cause for the Purchaser to refuse to accept delivery of said
Bonds.
BY ORDER OF THE CITY COUNCIL
Diane Voss, City Clerk
City of Ames,Iowa
515 Clark Avenue
Ames,Iowa 50010
v
SCHEDULE OF BOND YEARS
$23,365,000*
City of Ames,Iowa
General Obligation Corporate Purpose and Refunding Bonds, Series 2013
Bonds Dated: May 30,2013
Interest Due: December 1,2013 and each June 1 and December 1 to maturity
Principal Due: June 1,2014-2032
Cumulative
Year Principal * Bond Years Bond Years
2014 $2,140,000 2,145.94 2,145.94
2015 1,550,000 3,104.31 5,250.25
2016 1,580,000 4,744.39 9,994.64
2017 1,600,000 6,404.44 16,399.08
2018 1,245,000 6,228.46 22,627.54
2019 1,270,000 7,623.53 30,251.07
2020 1,285,000 8,998.57 39,249.64
2021 1,310,000 10,483.64 49,733.28
2022 1,340,000 12,063.72 61,797.00
2023 1,380,000 13,803.83 75,600.83
2024 1,405,000 15,458.90 91,059.74
2025 1,450,000 17,404.03 108,463.76
2026 750,000 9,752.08 118,215.85
2027 775,000 10,852.15 129,068.00
2028 800,000 12,002.22 141,070.22
2029 825,000 13,202.29 154,272.51
2030 855,000 14,537.38 168,809.89
2031 885,000 15,932.46 184,742.35
2032 920,000 17,482.56 202,224.90
Average Maturity(dated date): 8.655 Years
*Preliminary;subject to change.
vi