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HomeMy WebLinkAboutA011 - Letter to Dorsey & Whitney dated September 21, 2015 CITY A m e s," Smart Choice September 21, 2015 Dorsey & Whitney LLP 801 Grand, Suite 4100 Des Moines, Iowa 50309 Attention Robert E. Josten RE: Your File No.: 419370-55 General Obligation Corporate Purpose Bonds, Series 2015A Dear Bob: Enclosed please find the signed Certificate of the County Auditor relating to the filing of a certified copy of the Bond Issuance Resolution. Thank you for your assistance. Sincerely, Diane R. Voss City Clerk /dry Enclosure City Clerk's Office 515.239.5105 main 515 Clark Ave„P.O.Box 811 515.239.5142 fax Ames,IA 50010 wwwCityofAmes.org Ames/419370-55/2015GO Issnc STATE OF IOWA SS: COUNTY OF STORY I, the undersigned, County Auditor of Story County, in the State of Iowa, do hereby certify that on the 11"^ day of September, 2015, the City Clerk of the City of Ames filed in my office a certified copy of a resolution of the City shown to have been adopted by the City Council and approved by the Mayor thereof on September 8, 2015, entitled: "Resolution authorizing the issuance of $18,445,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2015A, and providing for the levy of taxes to pay the same" and that I have duly placed the copy of the resolution on file in my records. I further certify that the taxes provided for in that resolution will in due time, manner and season be entered on the State and County tax lists of this County for collection in the fiscal year beginning July 1, 2016, and subsequent years as provided in the resolution. WITNESS MY HAND this Ili" day of September, 2015. emu.,® County ditor -16- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA C 0ORSEY'" DORSEY & WHITNEY LLP September 22, 2015 City of Ames FTN Financial Capital Markets Ames, Iowa New York,New York We hereby certify that we have examined certified copies of the proceedings (the "Proceedings") of the City Council of the City of Ames (the "Issuer"), in Story County, Iowa, passed preliminary to the issue by the Issuer of its General Obligation Corporate Purpose and Refunding Bonds, Series 2015A (the "Bonds") in the amount of$18,445,000, dated September 22, 2015, in the denomination of$5,000 each, or any integral multiple thereof, in accordance with a loan agreement dated as of September 22, 2015 (the "Loan Agreement"), and pursuant to a resolution adopted by the Issuer on September 8, 2015 (the "Resolution"). The Bonds mature on June 1 in each of the respective years and in the principal amounts and bear interest payable semiannually, commencing June 1, 2016, at the respective rates as follows: Principal Interest Rate Principal Interest Rate Year Amount Per Annum Year Amount Per Annum 2016 $2,110,000 5.000% 2024 $1,200,000 2.500% 2017 $2,235,000 5.000% 2025 $1,225,000 3.000% 2018 $2,385,000 5.000% 2026 $1,265,000 3.000% 2019 $1,965,000 5.000% 2027 $1,305,000 3.000% 2020 $1,020,000 5.000% 2029 $ 100,000 3.000% 2021 $1,065,000 2.000% 2031 $ 110,000 3.000% 2022 $1,085,000 5.000% 2033 $ 115,000 3.125% 2023 $1,140,000 5.000% 2035 $ 120,000 3.250% but the Bonds maturing in each of the years 2024 to 2035, inclusive, are subject to redemption prior to maturity on June 1, 2023 or any date thereafter, upon terms of par and accrued interest, and principal of the Bonds maturing in each of the years 2029, 2031, 2033 and 2035 is subject to mandatory redemption in accordance with the redemption schedules set out in the Resolution. Based upon our examination,we are of the opinion, as of the date hereof,that: 1. The Proceedings show lawful authority for such issue under the laws of the State of Iowa. 2. The Bonds and the Loan Agreement are valid and binding general obligations of the Issuer. 3. All taxable property within the corporate boundaries of the Issuer is subject to the levy of taxes to pay the principal of and interest on the Bonds without constitutional or statutory limitation as to rate or amount. DORSEY & WHITNEY LLP • ATTORNEYS AT LAW • WWW.DORSEY.COM -T 515.283.1000 F 515.283.1050 • 801 GRAND • SUITE 4100 • DES MOINES, IOWA 50309-8002 USA CANADA EUROPE ASIA-PACIFIC 0ORSEY" Page 2 4. The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in detennining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986 (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, and their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. DORSEY& WHITNEY LLP DORSEY&WHITNEY LLP