HomeMy WebLinkAboutA010 - Letter from Dorsey & Whitney dated December 29, 2015 w
C 0ORSEY"
December 29, 2015
City of Ames Hutchinson, Shockey, Erley& Co.
Ames, Iowa Chicago, Illinois
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 Electric Revenue Bonds, Series 2015B (the
"Bonds") in the amount of$9,500,000, dated December 29, 2015, in the denomination of$5,000
each, or any integral multiple thereof, in accordance with a loan agreement dated as of December
29, 2015 (the "Loan Agreement"), and pursuant to a resolution adopted by the Issuer on
December 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 $800,000 5.000% 2022 $795,000 5.000%
2017 $625,000 5.000% 2023 $835,000 5.000%
2018 $655,000 5.000% 2024 $875,000 2.125%
2019 $685,000 5.000% 2025 $895,000 2.250%
2020 $720,000 5.000% 2026 $915,000 2.500%
2021 $760,000 5.000% 2027 $940,000 3.000%
but the Bonds maturing in each of the years 2024 to 2027, inclusive, are subject to redemption
prior to maturity on June 1, 2023 or any date thereafter, upon terms of par and accrued interest.
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 limited obligations of
the Issuer, subject to the terms and limitations set forth in the Bonds and the proceedings.
3. The Bonds and any additional obligations as may be hereafter issued and
outstanding from time to time ranking on a parity therewith under the conditions and restrictions
set forth in the Proceedings are and will continue to be payable as to both principal and interest
solely and only from the future Net Revenues of the Municipal Electric Light and Power Plant
and System of the Issuer.
DORSEY&WHITNEY LLP
00RSEY7"
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 determining adjusted current earnings. The
opinions set forth in the preceding sentence are subject to the condition that the Issuer comply
with all requirements of the Internal Revenue Code of 1986 (the "Code") that must be satisfied
subsequent to the issuance of the 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