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SALE DETAILS
DATE: July 7 2016
ISSUER: itv of Ames Iowa
BOND NAME: (_$12705,000* G. O.Corporate Purpose& Refunding Bonds, Series 2016A
BOND ATTORNEY: orse & Whitne
Individuals: Bob Josten/Rebecca Donaldson
Sale Date: August 23 2016
Bid Opening: 11:00 AM CT(Sealed,Parity, Fax-via Loan Agreement)
Place: City Hall
Bid Award: 6:00 PM CT
Bonds Dated: September 27 2016
Closing Date: September 27,2016
Maturity: June 1,as follows:
Year Amount* Year Amount*
2017 $1,520,000 2023 $780,000
2018 1,555,000 2024 795,000
2019 1,585,000 2025 810,000
2020 1,605,000 2026 825,000
2021 755,000 2027 840,000
2022 770,000 2028 865,000
*Principal
Adjustment: Preliminary; subject to change. The aggregate principal amount of the Bonds, and
each scheduled maturity thereof,are subject to increase or reduction by the City or its
designee after the determination of the successful bidder. The City may increase or
decrease each maturity in increments of$5,000 but the total amount to be issued will
not exceed $13,225,000. Interest rates specified by the successful bidder for each
maturity will not change. Final adjustments shall be in the sole discretion of the City.
The dollar amount of the purchase price proposed by the successful bidder will be
changed if the aggregate principal amount of the Bonds is adjusted as described
above. Any change in the principal amount of any maturity of the Bonds will be
made while maintaining, as closely as possible, the successful bidder's net
compensation, calculated as a percentage of bond principal. The successful bidder
may not withdraw or modify its bid as a result of any post-bid adjustment. Any
adjustment shall be conclusive,and shall be binding upon the successful bidder.
First Interest: June 1,2017 and semiannually thereafter. 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
MSRB.
Record Date: Close of business on the 15th day of the month (whether or not a business day)
immediately preceding such payment date.
7n/2o16
Cusip Numbers: The City will assume no obligation for the assignment or printing of CUSIP numbers
on the Bonds or for the correctness of any numbers printed thereon, but will permit
such numbers to be printed at the expense of the purchaser, if the purchaser waives
any delay in delivery occasioned thereby.
Call Feature: Bonds due after June 1, 2024 will be subject to call for prior redemption on said date
or on any day thereafter upon terms of par plus accrued interest to date of call.
Award: The Bonds will be awarded to the bidder offering the lowest true interest rate to be
determined on a true interest cost basis (TIC). The Issuer's computation of the true
interest cost of each bid, in accordance with customary practice,shall be conclusive.
Bid Parameters: Each bidder's proposal must conform to the following limitations:
1. 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. The initial price to the public for each maturity must be 98%or greater.
Term Bond Option: Bidders shall have the option of designating the Bonds as serial bonds or term bonds,
or both. The bid must designate whether each of the principal amounts shown above
represent a serial maturity or a mandatory redemption requirement for a term bond
maturity. In any event,the principal amount scheduled shall be represented by either
serial bond maturities or mandatory redemption requirements, or a combination of
both.
#OS'es to Purchaser: TBD—NTE 20
Minimum Bid: $12,603,360.00
Good Faith: $127,050(1%)from the purchaser ONLY
Registrar: Ames City Treasurer
Book Entry Only: This offering will be issued as fully registered Bonds and, when issued, will be
registered in the name of Cede&Co., as nominee of The Depository Trust Company,
New York,New York.
Financial Advisor: Public Financial Management,Inc.,Des Moines Office
Individual: Susanne Gerlach
Tax Matters: The Bonds will NOT be designated as qualified tax-exempt obligations.
The Bonds will be federal tax-exempt and state taxable.
Schedule of Events: July 22: POS to Susanne for review
July 26: POS to City and Bond Counsel for review
Aug 1-5: Credit Call with Moody's- Date/Time TBD
Aug 2: POS to City for Council packets
Aug 9: Approve POS& electronic bidding
Aug 23: 11 am—Receive bids
6pm—Approve Bids&Award Bonds to low bidder
Aug 24: Mail Notices of Redemption to 2008A Bondholders
Sept 13: Approve final documents
Sept 27: Bond proceeds delivered&the Series 2008A Bonds Redeemed
Oct 12: Post Bond Call Material Event Notice to EMMA within 10 bus.days
Notes: The bonds will be issued subject to a loan agreement.
Bids will be received as follows:
1)sealed bids will be received at the City;
2)facsimile bids will be received at PFM(fax# 515-243-6994);and
3)electronic internet bids will be received via Parity internet bid system.
7/7/2016
SOURCES AND USES OF FUNDS
City of Ames,Iowa
General Obligation Corporate Purpose and Refunding Bonds,Series 2016A
Proposed Series 2016A-
Series 2016A- Current Portion Paid
Portion Paid Refunding of by Water&
Sources: by Taxes Series 2008A Sewer Revenues Total
Bond Proceeds:
Par Amount 6,025,000.00 3,335,000.00 3,345,000.00 12,705,000.00
6,025,000.00 3,335,000.00 3,345,000.00 12,705,000.00
Proposed Series 2016A-
Series 2016A- Current Portion Paid
Portion Paid Refunding of by Water&
Uses: by Taxes Series 2008A Sewer Revenues Total
Project Fund Deposits:
Project Fund 5,945,000.00 3,300,000.00 9,245,000.00
Refunding Escrow Deposits:
Cash Deposit 3,290,000.00 3,290,000.00
Delivery Date Expenses:
Cost of Issuance 30,160.56 16,694.69 16,744.75 63,600.00
Underwriter's Discount 48,200.00 26,680.00 26,760.00 101,640.00
78,360.56 43,374.69 43,504.75 165,240.00
Other Uses of Funds:
Additional Proceeds 1,639.44 1,625.31 1,495.25 4,760.00
6,025,000.00 3,335,000.00 3,345,000.00 12,705,000.00
Note: MMD as of 07-06-2016+25 bps(Aal/Non-BQ)+50 bps timing
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page I
BOND PRICING
City of Ames,Iowa
General Obligation Corporate Purpose and Refunding Bonds,Series 2016A
Maturity
Bond Component Date Amount Rate Yield Price
Bond Component:
06/01/2017 1,520,000 1.270% 1.270% 100.000
06/01/2018 1,555,000 1.340% 1.340% 100.000
06/01/2019 1,585,000 1.410% 1.410% 100,000
06/01/2020 1,605,000 1.500% 1.500% 100.000
06/01/2021 755,000 1.610% 1.610% 100.000
06/01/2022 770,000 1.720% 1.720% 100.000
06/01/2023 780,000 1.790% 1.790% 100.000
06/01/2024 795,000 1.870% 1.870% 100.000
06/01/2025 810,000 1.950% 1.950% 100.000
06/01/2026 825,000 2.040% 2.040% 100.000
06/01/2027 840,000 2.140% 2.140% 100.000
06/01/2028 865,000 2.180% 2.180% 100.000
12,705,000
Dated Date 09/01/2016
Delivery Date 09/01/2016
First Coupon 06/01/2017
Par Amount 12,705,000.00
Original Issue Discount
Production 12,705,000.00 100.000000%
Underwriter's Discount (101,640.00) (0.800000%)
Purchase Price 12,603,360.00 99.200000%
Accrued Interest
Net Proceeds 12,603,360.00
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 2
BOND SUMMARY STATISTICS
City of Ames,Iowa
General Obligation Corporate Purpose and Refunding Bonds,Series 2016A
Dated Date 09/01/2016
Delivery Date 09/01/2016
Last Maturity 06/01/2028
Arbitrage Yield 1.848883%
True Interest Cost(TIC) 2.010099%
Net Interest Cost(NIC) 2.006924%
All-In TIC 2.112019%
Average Coupon 1.857461%
Average Life(years) 5.353
Duration of Issue(years) 5.021
Par Amount 12,705,000.00
Bond Proceeds 12,705,000.00
Total Interest 1,263,143.38
Net Interest 1,364,783.38
Total Debt Service 13,968,143.38
Maximum Annual Debt Service 1,755,109.50
Average Annual Debt Service 1,188,778.16
Underwriter's Fees(per$1000)
Average Takedown
Other Fee 8.000000
Total Underwriter's Discount 8.000000
Bid Price 99.200000
Par Average Average
Bond Component Value Price Coupon Life
Proposed Current Refunding of Series 2008A 12,705,000.00 100.000 1.857% 5.353
12,705,000.00 5.353
All-In Arbitrage
TIC TIC Yield
Par Value 12,705,000.00 12,705,000.00 12,705,000.00
+Accrued Interest
+Premium(Discount)
-Underwriter's Discount (101,640.00) (101,640.00)
-Cost of Issuance Expense (63,600.00)
-Other Amounts
Target Value 12,603,360.00 12,539,760.00 12,705,000.00
Target Date 09/01/2016 09/01/2016 09/01/2016
Yield 2.010099% 2.112019% 1.848883%
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 3
SUMMARY OF REFUNDING RESULTS
City of Ames,Iowa
General Obligation Corporate Purpose and Refunding Bonds,Series 2016A
Dated Date 09/01/2016
Delivery Date 09/01/2016
Arbitrage yield 1.848883%
Escrow yield 0.000000%
Value of Negative Arbitrage
Bond Par Amount 3,335,000.00
True Interest Cost 1.783545%
Net Interest Cost 1.774753%
Average Coupon 1.423758%
Average Life 2.279
Par amount of refunded bonds 3,290,000.00
Average coupon of refunded bonds 4.095502%
Average life of refunded bonds 2.302
PV of prior debt to 09/01/2016 n 1,848883% 3,449,706.89
Net PV Savings 147,805.97
Percentage savings of refunded bonds 4.492583%
Percentage savings of refunding bonds 4.431963%
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 4
SAVINGS
City of Ames,Iowa
General Obligation Corporate Purpose and Refunding Bonds,Series 2016A
Present Value
Prior Refunding Annual to 09/01/2016
Date Debt Service Debt Service Savings Savings @ 1.8488832%
09/15/2016 (38,639.61) (38,639.61) (38,611.97)
12/01/2016 66,876.25 66,876.25 66,569.26
06/01/2017 841,876.25 834,572.38 7,303.88 35,540.51 7,203.75
12/01/2017 51,376.25 17,968.25 33,408.00 32,648.23
06/01/2018 851,376.25 847,968.25 3,408.00 36,816.00 3,299.99
12/01/2018 35,376.25 12,407.25 22,969.00 22,037.31
06/01/2019 875,376.25 857,407.25 17,969.00 40,938.00 17,082.21
12/01/2019 18,156.25 6,450.00 11,706.25 11,026.60
06/01/2020 893,156.25 866,450.00 26,706.25 38,412.50 24,925.29
3,594,930.39 3,443,223.38 151,707.01 151,707.01 146,180.66
Savings Summary
PV of savings from cash flow 146,180.66
Plus:Refunding funds on hand 1,625.31
Net PV Savings 147,805.97
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 5
BOND DEBT SERVICE
City of Ames,Iowa
General Obligation Corporate Purpose and Refunding Bonds,Series 2016A
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2017 1,520,000 1.270% 157,687.88 1,677,687.88 1,677,687.88
12/01/2017 95,473.25 95,473.25
06/01/2018 1,555,000 1.340% 95,473.25 1,650,473.25 1,745,946.50
12/01/2018 85,054.75 85,054.75
06/01/2019 1,585,000 1.410% 85,054.75 1,670,054.75 1,755,109.50
12/01/2019 73,880.50 73,880.50
06/01/2020 1,605,000 1.500% 73,880.50 1,678,880.50 1,752,761.00
12/01/2020 61,843.00 61,843.00
06/01/2021 755,000 1.610% 61,843.00 816,843.00 878,686.00
12/01/2021 55,765.25 55,765.25
06/01/2022 770,000 1.720% 55,765.25 825,765.25 881,530.50
12/01/2022 49,143.25 49,143.25
06/01/2023 780,000 1.790% 49,143.25 829,143.25 878,286.50
12/01/2023 42,162.25 42,162.25
06/01/2024 795,000 1.870% 42,162.25 837,162.25 879,324.50
12/01/2024 34,729.00 34,729.00
06/01/2025 810,000 1.950% 34,729.00 844,729.00 879,458.00
12/01/2025 26,831.50 26,831.50
06/01/2026 825,000 2.040% 26,831.50 851,831.50 878,663.00
12/01/2026 18,416.50 18,416.50
06/01/2027 840,000 2.140% 18,416.50 858,416.50 876,833.00
12/01/2027 9,428.50 9,428.50
06/01/2028 865,000 2.180% 9,428.50 874,428.50 883,857.00
12,705,000 1,263,143.38 13,968,143.38 13,968,143.38
Jul%,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 6
BOND DEBT SERVICE
City of Ames,Iowa
Series 2016A-Portion Paid by Taxes
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2017 525,000 1.270% 78,926.25 603,926.25 603,926.25
12/01/2017 49,283.75 49,283.75
06/01/2018 460,000 1.340% 49,283.75 509,283.75 558,567.50
12/01/2018 46,201.75 46,201.75
06/01/2019 470,000 1.410% 46,201.75 516,201.75 562,403.50
12/01/2019 42,888.25 42,888.25
06/01/2020 475,000 1.500% 42,888.25 517,888.25 560,776.50
12/01/2020 39,325.75 39,325.75
06/01/2021 480,000 1.610% 39,325.75 519,325.75 558,651.50
12/01/2021 35,461.75 35,461.75
06/01/2022 490,000 1.720% 35,461.75 525,461.75 560,923.50
12/01/2022 31,247.75 31,247.75
06/01/2023 495,000 1.790% 31,247.75 526,247.75 557,495.50
12/01/2023 26,817.50 26,817.50
06/01/2024 505,000 1.870% 26,817.50 531,817.50 558,635.00
12/01/2024 22,095.75 22,095.75
06/01/2025 515,000 1.950% 22,095.75 537,095.75 559,191.50
12/01/2025 17,074.50 17,074.50
06/01/2026 525,000 2.040% 17,074.50 542,074.50 559,149.00
12/01/2026 11,719.50 11,719.50
06/01/2027 535,000 2.140% 11,719.50 546,719.50 558,439.00
12/01/2027 5,995.00 5,995.00
06/01/2028 550,000 2.180% 5,995.00 555,995.00 561,990.00
6,025,000 735,148.75 6,760,148.75 6,760,148.75
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 7
BOND DEBT SERVICE
City of Ames,Iowa
Proposed Current Refunding of Series 2008A
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2017 800,000 1.270% 34,572.38 834,572.38 834,572.38
12/01/2017 17,968.25 17,968.25
06/01/2018 830,000 1.340% 17,968.25 847,968.25 865,936.50
12/01/2018 12,407.25 12,407.25
06/01/2019 845,000 1.410% 12,407.25 857,407.25 869,814.50
12/01/2019 6,450.00 6,450.00
06/01/2020 860,000 1.500% 6,450.00 866,450.00 872,900.00
3,335,000 108,223.38 3,443,223.38 3,443,223.38
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 8
IL RNfw.ey
BOND DEBT SERVICE
City of Ames,Iowa
Series 2016A-Portion Paid by Water&Sewer Revenues
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2017 195,000 1.270% 44,189.25 239,189.25 239,189.25
12/O1/2017 28,221.25 28,221.25
06/01/2018 265,000 1.340% 28,221.25 293,221.25 321,442.50
12/01/2018 26,445.75 26,445.75
06/01/2019 270,000 1.410% 26,445.75 296,445.75 322,891.50
12/01/2019 24,542.25 24,542.25
06/01/2020 270,000 1.500% 24,542.25 294,542.25 319,084.50
12/01/2020 22,517.25 22,517.25
06/01/2021 275,000 1.610% 22,517.25 297,517.25 320,034.50
12/01/2021 20,303.50 20,303.50
06/01/2022 280,000 1.720% 20,303.50 300,303.50 320,607.00
12/01/2022 17,895.50 17,895.50
06/01/2023 285,000 1.790% 17,895.50 302,895.50 320,791.00
12/01/2023 15,344.75 15,344.75
06/01/2024 290,000 1.870% 15,344.75 305,344.75 320,689.50
12/01/2024 12,633.25 12,633.25
06/01/2025 295,000 1.950% 12,633.25 307,633.25 320,266.50
12/01/2025 9,757.00 9,757.00
06/01/2026 300,000 2.040% 9,757.00 309,757.00 319,514.00
12/01/2026 6,697.00 6,697.00
06/01/2027 305,000 2.140% 6,697.00 311,697.00 318,394.00
12/01/2027 3,433.50 3,433.50
06/01/2028 315,000 2.180% 3,433.50 318,433.50 321,867.00
3,345,000 419,771.25 3,764,771.25 3,764,771.25
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 9
SUMMARY OF BONDS REFUNDED
City of Ames,Iowa
General Obligation Corporate Purpose and Refunding Bonds,Series 2016A
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Series 2008A Pool Portion,2008_I:
SER 06/01/2017 4.000% 495,000.00 09/15/2016 100.000
06/01/2018 4.000% 515,000.00 09/15/2016 100.000
06/01/2019 4.100% 535,000.00 09/15/2016 100.000
06/01/2020 4.150% 560,000.00 09/15/2016 100.000
2,105,000.00
Series 2008A Water Portion,2008 2:
SER 06/01/2017 4.000% 235,000.00 09/15/2016 100.000
06/01/2018 4.000% 240,000.00 09/15/2016 100.000
06/01/2019 4.100% 255,000.00 09/15/2016 100.000
06/01/2020 4.150% 265,000.00 09/15/2016 100.000
995,000.00
Series 2008A Corporate Purpose Portion,2008_3:
SER 06/01/2017 4.000% 45,000.00 09/15/2016 100.000
06/01/2018 4.000% 45,000.00 09/15/2016 100.000
06/01/2019 4.100% 50,000.00 09/15/2016 100.000
06/01/2020 4.150% 50,000.00 09/15/2016 100.000
190,000.00
3,290,000.00
Jul 7,2016 10:55 am Prepared by Public Financial Management,Inc. (Finance 7.013 ames:2016A) Page 10