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HomeMy WebLinkAboutA019 - Closing Certificate dated September 30, 2014 Please Return To: Ames/419670-54!clos6,g cert DORSEY & WHITNEY ATTORNEYS AT LAW 801 Grand, Suite 4100 CLOSING CERTIFICATE Des Moines, Iowa 50309 We, the undersigned Mayor and City Clerk, of the City of Ames (the "City"), in Story County, Iowa, do hereby certify that we are now and were at the time of the execution of the City's $9,695,000 General Obligation Corporate Purpose Bonds, Series 2014, dated September 30, 2014 (the "Bonds"), the officers respectively above indicated; and that in pursuance of Chapter 384 of the Code of Iowa, a resolution adopted by the City Council on September 9, 2014 (the "Resolution"), and a loan agreement dated as of September 30, 2014 (the "Loan Agreement"), by and between the City and Stifel, Nicolaus & Co., Inc., Denver, Colorado (the "Purchaser"), the Bonds have been heretofore lawfully authorized and this day by us lawfully issued and delivered to or upon the direction of the Purchaser and pursuant to the Loan Agreement, the City has received $9,898,747.98, receipt of which is hereby acknowledged, which amount represents the par amount of the Bonds ($9,695,000), plus premium ($245,938), minus underwriter's discount ($42,190.02). The Bonds mature on June 1 in each of the years, in the respective principal amounts and bear interest payable semiannually, commencing June 1, 2015, as set forth in the Resolution. Each of the Bonds has been executed with the facsimile signatures of the aforesaid officers; and the Bonds have been fully registered as to principal and interest in the names of the owners on the registration books of the City maintained by the City Treasurer, as the Registrar and Paying Agent (the"Registrar"). We further certify that the Bonds are being issued to evidence the City's obligation under the Loan Agreement entered into by the City for the purpose of paying the cost, to that extent, of constructing improvements to streets, bridge and solid waste disposal facilities, and the cost of flood mitigation and remediation(collectively, herein referred to as the "Projects"). We further certify that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City, or the titles of the aforesaid officers to their respective positions, or the validity of the Bonds, or the power and duty of the City to provide and apply adequate taxes for the full and prompt payment of the principal of and interest on the Bonds, and that none of the proceedings incident to the authorization and issuance of the Bonds has been repealed or rescinded. We further certify that no appeal of the decision of the City Council to enter into the Loan Agreement or to issue the Bonds has been taken to the district court. We further certify that all meetings held in connection with the Bonds were open to the public at a place reasonably accessible to the public and that notice was given at least 24 hours prior to the commencement of all meetings by advising the news media who requested notice of the time, date, place and the tentative agenda and by posting such notice and agenda at the City Hall or principal office of the City on a bulletin board or other prominent place which is easily accessible to the public and is the place designated for the purpose of posting notices of meetings. -t- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-54/Closing Cert We further certify as follows: 1. The net sales proceeds of the Bonds are $9,940,938 (the "Net Sales Proceeds"), the same being the Issue Price (hereinafter defined) thereof. 2. The estimated sources and uses of funds in connection with the Bonds are as follows: ;SOURCES Tar amount of Bonds $9,695,000.00 ..... .... ..... Premium $245,938.00 $9,940,938.00 USES Underwriter's Discount 3 v~_ .. $42,190.02 Costs of Issuance -------- $54,800.00 1 JProject Fund Deposit $9,840,000.001 Additional proceeds ; $3,947.98 $9,940,938.00 .......... .... ..._..... ......._ i 3. $96,990.02 of the Net Sales Proceeds will be used to pay costs of issuance, including the underwriter's discount, within 45 days of the date hereof, and until so applied, will be invested by the City without restriction as to yield. 4. $3,947.98 (Additional Proceeds) of the Net Sales Proceeds will be used for any lawful purpose of the City. 5. The remaining Net Sales Proceeds ($9,840,000), along with investment earnings thereon, will be invested by the City without restriction as to yield for a period not to exceed three years from the date hereof(the "Three Year Temporary Period"), the following three tests being reasonably expected to be satisfied by the City: (a) Time Test: The City has entered into or, within six months of the date hereof, will enter into binding contracts for the Projects with third parties (e.g. engineers or contractors); (i) which are not subject to contingencies directly or indirectly within the City's control; (ii) which provide for the payment by the City to such third parties of an amount equal to at least 5% of the Net Sales Proceeds; -2- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/414370-54/0osing Cert (b) Expenditure Test: At least 85% of Net Sales Proceeds will be applied to the payment of costs of the Projects within the Three Year Temporary Period; and (c) Due Diligence Test: Acquisition and construction of the Project to completion and application of the Net Sales Proceeds to the payment of costs of the Projects will proceed with due diligence. 6. The Bonds are payable from ad valorem taxes levied against all taxable property within the City which will be collected in a Debt Service Fund and applied to the payment of interest on the Bonds on each June 1 and December 1 and principal of the Bonds on each June 1 (the 12-month period ending on each June 1 being herein referred to as a"Bond Year"); the Debt Service Fund is used primarily to achieve a proper matching of taxes with principal and interest payments within each Bond Year; the Debt Service Fund will be depleted at least once each Bond Year except for a reasonable carryover amount not to exceed the greater of(i) the earnings on the fund for the immediately preceding Bond Year; or (ii) 1/12 of the principal and interest payments on the Bonds for the immediately preceding Bond Year; amounts on deposit in the Debt Service Fund will be invested by the City without restriction as to yield for a period of 13 months after their date of deposit. 7. The City Council adopted a resolution on February 11, 2014 declaring its official intent to acquire and construct the Projects and finance the same with bonds or other obligations (the "Intent Resolution"). The City certifies that none of the costs of the Projects to be paid for from the Net Sales Proceeds are for expenditures made more than 60 days prior to the date of adoption of the Intent Resolution, except for (i) costs of issuance of the Bonds; (ii) costs aggregating an amount not in excess of the lesser of $100,000 or 5% of the Net Sales Proceeds; (iii) costs for preliminary expenditures (including architectural, engineering, surveying, soil testing, and similar costs incurred prior to commencement of acquisition or construction of the Projects, other than land acquisition, site preparation and similar costs) not in excess of 20% of the Net Sales Proceeds of the Bonds; the City will allocate Net Sales Proceeds to reimbursement of such expenditures no later than 3 years after the later of(i)the date any such expenditure was originally paid or (ii)the date the Projects are placed in service (or abandoned); and such allocations will be made by the City in writing. The City will seek reimbursement of prior expenditures already paid by the City from the proceeds of the Bonds in the amount of$183,026. 8. Not more than 50% of the Net Sales Proceeds will be invested in non-purpose investments [as defined in Section 148(f)(6)(A) of the Internal Revenue Code of 1986, as amended (the "Code")] having a substantially guaranteed yield for four years or more (e.g., a four-year guaranteed investment contract or a Treasury Obligation that does not mature for four years). -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/414370-54/Closing Cert 9. The weighted average maturity of the Bonds does not exceed 120% of the reasonably expected economic life of the Project. 10. The City expects to spend the Net Sales Proceeds (along with any investment earnings on such proceeds) by March 30, 2016. Accordingly, the City reasonably expects that the Net Sales Proceeds will be fully spent for costs of the Projects within the time periods set forth in the 18 Month Exception described below: 18 Month Exception: The 18 Month Exception set forth in Section 1.148-7(d) of the United States Treasury Regulations (the "Regulations") applies to the Net Sales Proceeds. Accordingly, if all Net Sales Proceeds of the Bonds, are expended at least as quickly as 15% within 6 months from the date of issuance of the Bonds, 60% within 12 months and 100% within 18 months, then rebate will be required only with respect to a reasonably required reserve or replacement fund, if any. If the City exercises due diligence to complete the Project and an amount not exceeding the lesser of 3% of the Net Sales Proceeds of the Bonds allocated to the Project or $250,000 remains unspent as of the end of the eighteenth month, the City will be treated as satisfying the final expenditure requirement. In addition, a reasonable retainage of up to five percent of the Net Sales Proceeds as of the end of the 18-month period may be allocated to expenditures within 30 months of the date hereof. We further certify that the City will comply with the investment requirements of Section 148 of the Code and the Regulations relating thereto with respect to the proceeds of the Bonds. The City acknowledges that if it fails to spend the proceeds of the Bonds (along with the investment earnings thereon) within the time periods set forth in the 18 Month Exception (or another applicable rebate exception), the City may have a rebate liability to the United States pursuant to Section 148 of the Code. We further certify that the City will comply with the investment requirements of Section 148 of the Code and the Regulations relating thereto with respect to the proceeds of the Bonds, including the requirement to invest the proceeds of the Bonds (and the investment earnings thereon) at fair market value, and, if appropriate, to comply with the bidding requirements for investment contracts. The City shall consult with the appropriate auditors or rebate specialists with regard to determination of rebate liability. 11. To our best knowledge and belief, there are no facts, estimates or circumstances which would materially change the foregoing conclusions. 12. On the basis of the foregoing, it is not expected that the Net Sales Proceeds will be used in a manner that would cause the Bonds to be "arbitrage bonds" under Section 148 of the Code and the regulations prescribed under that section. The City has not been notified of any listing or proposed listing of it by the Internal Revenue Service as a bond issuer whose arbitrage certifications may not be relied upon. 13. We further certify that the Purchaser has advised the City that the reasonably expected reoffering price (the"Issue Price") of the Bonds to the public is $9,940,938. -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-54/c1osing Cert 14. We further certify that due provision has been made for the collection of taxes sufficient to pay the principal of and interest on the Bonds when due. All payments coming due before the collection of any such taxes will be paid promptly when due from legally available funds. IN WITNESS WHEREOF, we have hereunto affixed our hands, as of September 30, 2014. CITY OF AMES, IOWA By C-l';� -c ( Mayor Attest: City Clerk -s- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames/419370-54 ' Form 8038-G Information Return for Tax-Exempt Governmental Obligations (Rev.September 2011) ►Under Internal Revenue Code section 149(e) OMB No.1545-0720 0-See separate instructions. Department of the Treasury Internal Revenue Service Caution:If the issue price is under$100,000,use Form 8038-GC. Reporting Authority If Amended Return,check here ► ❑ 1 Issuer's name 2 Issuer's employer identification number(EIN) City of Ames,Iowa 42-6004218 3a Name of person(other than issuer)with whom the IRS may communicate about this return(see instructions) 3b Telephone number of other person shown on 3a 4 Number and street(or P.O.box if mail is not delivered to street address) Room/suite 5 Report number(For IRS Use Only) PO Box 811 3 6 City,town,or post office,state,and ZIP code 7 Date of issue Ames,Iowa 50010-0811 September 30,2014 8 Name of issue 9 CUSIP number General Obligation Corporate Purpose Bonds,Series 2014 030807 S36 10a Name and title of officer or other employee of the issuer whom the IRS may call for more information(see 10b Telephone number of officer or other instructions) employee shown on 10a Diane R.Voss,City Clerk 515-239-5105 Type of Issue(enter the issue price). See the instructions and attach schedule. 11 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Health and hospital . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 Environment(including sewage bonds) . . . . . . . . . . . . . . . . . . . . 15 16 Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Other. Describe ► Streets,bridge,solid waste disposal facilities improvements&flood mitigation&remediation 18 1 9,940,938 19 If obligations are TANS or RANs,check only box 19a . . . . . . . . . . . . . ► ❑ y If obligations are BANs,check only box 19b . . . . . . . . . . . . . . . ► ❑ Y 20 If obligations are in the form of a lease or installment sale,check box . . . . . . . . ► ❑ ,� Description of Obligations.Complete for the entire issue for which this form is being filed. Weig hted d)W( ege (a)Final maturity date (b)Issue price (c)Stated redemption (e)Yield price at maturity average maturity 21 06/01/2026 9,940,938 9,695,000 6.0929 vears 1,6335 % Uses of Proceeds of Bond Issue(including underwriters' discount) 22 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . . . . . 22 23 Issue price of entire issue(enter amount from line 21,column(b)) . . 23 9,940,938 24 Proceeds used for bond issuance costs(including underwriters'discount). 24 96,990 02 25 Proceeds used for credit enhancement . . . . . . . . . 25 26 Proceeds allocated to reasonably required reserve or replacement fund 26 ' 27 Proceeds used to currently refund prior issues . . . . . . . . . 27 P 28 Proceeds used to advance refund prior issues . . . . . . . . . 28 29 Total(add lines 24 through 28) . . . . . . . . . . . . . . . . . . . . . . . 29 96,990 02 30 Nonrefunding proceeds of the issue(subtract line 29 from line 23 and enter amount here) . 30 9,843,947 98 ll� Description of Refunded Bonds. Complete this part ON for refunding bonds. 31 Enter the remaining weighted average maturity of the bonds to be currently refunded . . . . ► years 32 Enter the remaining weighted average maturity of the bonds to be advance refunded . . . . ► years 33 Enter the last date on which the refunded bonds will be called(MM/DD/yyyy) . . . . . . ► 34 Enter the date(s)the refunded bonds were issued►(MM/DD/YYYY) For Paperwork Reduction Act Notice,see separate instructions. Cat.No.63773S Form 8038-G(Rev.9-2011) Form 8038-G(Rev.9-2011) Page 2 Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . . 35 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC)(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . 36a 11. b Enter the final maturity date of the GIC► c Enter the name of the GIC provider► ) 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units . . . . . . . . . . . . . . . . . . . . . . . . 37 38a If this issue is a loan made from the proceeds of another tax-exempt issue,check box► ❑and enter the following information: b Enter the date of the master pool obligation► c Enter the EIN of the issuer of the master pool obligation No- d Enter the name of the issuer of the master pool obligation► J 39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III)(small issuer exception),check box . . . . ► �°/ 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate,check box . . . . . . . . . . . . . ► ❑ 41a If the issuer has identified a hedge,check here► ❑ and enter the following information: b Name of hedge provider► c Type of hedge► d Term of hedge► 42 If the issuer has superintegrated the hedge,check box . . . . . . . . . . . . . . . . . . . . . ► ❑ 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations(see instructions),check box . . . . . . . . ► ❑ 44 If the issuer has established written procedures to monitor the requirements of section 148,check box . . . . . ► ❑Q 45a If some portion of the proceeds was used to reimburse expenditures,check here Do- ✓❑ and enter the amount of reimbursement . . . . . . . . . ► $183,026 b Enter the date the official intent was adopted► February 11,2014 Under penalties of perjury,I declare that I have examined this return and accompanying schedules and statements,and to the best of my knowledge Signature and belief,the are true,correct,and complete.I further declare that I consent to the IRS's disclosure of the issuer's return information,as necessary to and process t r urn,to the p that.l a�ve authorized above. Consent G-/ "�ov—5 Diane R.Voss,City Clerk 'Signature of issuer's authorized representative Date 'Type or print name and title Print(Type preparer's name pare s signature Date PTIN Paid Check ❑ if Preparer Robert E.Josten self-employed P01075995 Use Only Firm's name ► Dorsey&Whitney LL'Pi Firm's EIN ► 41-0223337 Firms address ► 801 Grand Ave.,Suite 410 , s Moines,Iowa 50309-8002 Phone no. 515-283-1000 Form 8038-Ga(Rev.9-2011)