HomeMy WebLinkAboutA001 - Council Action Form dated August 11, 2026ITEM #:13
DATE:08-11-26
DEPT:FIN
SUBJECT:SALE OF GENERAL OBLIGATION CORPORATE PURPOSE BONDS,
SERIES 2026C, AND AUTHORIZING PRELIMINARY OFFICIAL STATEMENT
COUNCIL ACTION FORM
BACKGROUND:
The FY 2026/27 Budget includes General Obligation (G.O.) Bond-funded capital improvement
projects totaling $45,614,351. In addition, the City intends to borrow $589,725 to reimburse
itself for eligible development costs incurred in FY 2025/26 for the Fire Station #2 Relocation
Project. Together, these amounts result in total anticipated borrowing of $46,204,076.
The proposed bond issuance is currently structured with a par amount of $44,320,000
and an estimated bond premium of $1,884,076, providing total proceeds of $46,204,076.
While the City’s annual G.O. Bond issuance traditionally finances projects such as
street improvements, shared-use paths, airport improvements, and parks and
recreation projects, this year ’s issuance is significantly larger due to the inclusion of
the Fire Station #2 Relocation Project and construction of the Resource Recovery and
Recycling Campus (R3C).
Authorization for the projects included in the issuance is summarized below:
Annual Capital Improvements Program (CIP) – On March 24, 2026, as part of the
City’s budgeting process, the City Council authorized G.O. Bond funding to support
street and traffic improvements, as well as airside and entryway improvements at the
James Herman Banning Ames Municipal Airport in an amount not to exceed
$17,375,000.
Fire Station #2 Relocation – On November 4, 2025, voters approved a public
referendum authorizing up to $10,500,000 in G.O. Bond funding to relocate Fire Station
#2 from Welch Avenue to a new site along State Avenue.
Resource Recovery and Recycling Campus (R3C) – On May 26, 2026, the City
Council authorized $24,000,000 in borrowing for construction of the R3C campus. The
original financing plan contemplated the issuance of short-term bond anticipation notes.
However, the lowest-cost financing proposal received exceeded the anticipated interest
rate. Staff, therefore, recommended incorporating the required borrowing into the City’s
annual G.O. Bond issuance.
To proceed with the bond issuance, the City Council must approve the Preliminary Official
Statement, which provides financial and other required disclosures to prospective investors
and is on file in the City Clerk’s Office. The Council must also establish the bond sale date,
recommended for August 25, 2026, and authorize the use of electronic bidding. Electronic
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bidding is permitted under Iowa law and provides for a secure and competitive bond sale
process.
The projects and costs to be financed through the issuance are summarized below:
Asphalt Street Pavement Improvements $2,340,000
Arterial Street Pavement Improvements 1,260,000
CyRide Route Pavement Improvements 3,800,000
Concrete Pavement Improvements 3,300,000
Seal Coat Street Pavement Improvements 900,000
Collector Street Pavement Improvements 2,800,000
Freel Drive Paving 975,000
Intelligent Transportation System 178,756
Airport Airside Improvements 623,250
Airport Entryway Improvements 140,000
Total CIP $16,317,006
FY 2025/26 Fire Station #2 Relocation $589,725
FY 2026/27 Fire Station #2 Relocation 6,680,955
Total Fire Station #2 Relocation $7,270,680
R3C Construction (abated by Resource
Recovery)$22,000,000
Total Project Funding $45,587,686
Cost of Issuance and Rounding 616,390
Total Proceeds $46,204,076
As noted above, the $46,204,076 in total proceeds is currently estimated to consist of
$44,320,000 in par value and $1,884,076 in bond premium. A bond premium occurs when
investors pay more than the face value of the bonds because the interest rate paid on the
bonds is higher than the market rate at the time of sale. The final amounts of par value and
premium will be determined when bids are received on August 25, 2026, however, the
combined amount is expected to provide the $46,204,076 necessary to fund the projects and
issuance costs identified above.
Finally, the required public hearings have already been completed, and the proposed issuance
complies with the City’s debt management policy and applicable statutory requirements
governing municipal debt.
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ALTERNATIVES:
1. Adopt a resolution approving the Preliminary Official Statement for General Obligation
Corporate Purpose Bonds, Series 2026C, setting the date of sale for August 25, 2026,
and authorize electronic bidding for the sale.
2. Refer the Official Statement back to City staff for modifications.
CITY MANAGER'S RECOMMENDED ACTION:
Issuance of these bonds is necessary to provide funding for the City’s approved Capital
Improvements Plan, the Fire Station #2 Relocation Project, and construction of the
Resource Recovery and Recycling Campus (R3C).Therefore, it is the recommendation of
the City Manager that the City Council adopt Alternative No. 1, as stated above.
ATTACHMENT(S):
Ames_IA_2026C_GO_Preliminary_Official_Statement-for_City_Council_Approval.pdf
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PRELIMINARY OFFICIAL STATEMENT DATED AUGUST __, 2026
New Issue Rating: Moody’s ‘___’
In the opinion of Dorsey & Whitney LLP, Bond Counsel, according to present laws, rulings and decisions and assuming the accuracy of certain
representations and compliance with certain covenants, the interest on the Bonds (i) is excluded from gross income for federal income tax purposes
under Section 103 of the Internal Revenue Code of 1986 (the “Code”) and (ii) is not an item of tax preference for purposes of the federal alternative
minimum tax imposed on noncorporate taxpayers by Section 55 of the Code. Interest on the Bonds may, however, be taken into account in determining
adjusted financial statement income for purposes of the federal alternative minimum tax imposed on applicable corporations (as defined in Section
59(k) of the Code). See “TAX EXEMPTION AND RELATED TAX MATTERS” herein.
CITY OF AMES, IOWA
$44,320,000* General Obligation Corporate Purpose Bonds, Series 2026C
BIDS RECEIVED: Tuesday, August 25, 2026, 10:00 A.M., Central Time
AWARD: Tuesday, August 25, 2026, 6:00 P.M., Central Time
Dated: Date of Delivery (September 15, 2026) Principal Due: June 1, as shown inside front cover
The $44,320,000* General Obligation Corporate Purpose Bonds, Series 2026C (the “Bonds”) are being issued pursuant to the provisions of Chapters
384 and 76 of the Code of Iowa, 2025, as amended (the “Iowa Code”), and a resolution expected to be adopted by the City Council of the City of
Ames, Iowa (the “City” or the “Issuer”) on August 25, 2026. The Bonds are being issued for the purpose of paying the cost, to that extent, of
(a) undertaking improvements to the municipal right of way, including the construction of street, storm water drainage, sidewalk, sanitary sewer
system and water utility system improvements; (b) acquiring and installing street lighting, signage, signalization and traffic control systems and
improvements; (c) undertaking surfacing improvements at the municipal airport; (d) constructing furnishing, equipping a new municipal fire station
as a replacement for existing Fire Station #2; (e) constructing and equipping a transfer station for the City’s solid waste disposal system; and (f) paying
certain costs of issuance related to the Bonds.
The purchaser of the Bonds agrees to enter into a loan agreement (the “Loan Agreement”) with the City pursuant to the authority contained in Section
384.24A of the Iowa Code. The Bonds are issued in evidence of the City’s obligations under the Loan Agreement. The Bonds and the interest thereon
are general obligations of the City, and all taxable property within the corporate boundaries of the City 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. See “PAYMENT OF AND SECURITY FOR
THE BONDS” herein.
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”). Purchasers of the Bonds will not receive certificates representing their interest in the Bonds purchased. 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. The purchaser 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, 2027, and interest on the
Bonds payable initially on June 1, 2027 and thereafter on each December 1 and June 1 to DTC, or its nominee, Cede & Co., 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 15th day of the
month next preceding the interest payment date (the “Record Date”). Neither the Issuer nor the Registrar will have any responsibility or obligation
to such DTC Participants, indirect participants or the persons for whom they act as nominee with respect to the Bonds. See “BOOK-ENTRY-ONLY
ISSUANCE” herein.
The Bonds are subject to mandatory sinking fund redemption by the Issuer prior to their stated maturities in the manner and at the time described
herein. All of the Bonds then outstanding are subject to optional redemption at the option of the Issuer, as a whole or in part, from any source of
available funds, on June 1, 2034, or on any date thereafter at a redemption price equal to the principal amount of the Bonds, together with accrued
interest to the date fixed for redemption, without premium. See “REDEMPTION” herein.
THE BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER
MINIMUM BID: $43,876,800
GOOD FAITH DEPOSIT: $443,200 Required of Purchaser Only
TAX MATTERS: Federal: Tax-Exempt
State: Taxable
See “TAX EXEMPTION AND RELATED TAX
ATTER ” for more information.
The Bonds are offered, subject to prior sale, withdrawal or modification, when, as, and if issued subject to the legal opinion as to legality, validity
and tax exemption of Dorsey & Whitney LLP, Bond Counsel, Des Moines, Iowa, to be furnished upon delivery of the Bonds. Dorsey & Whitney
LLP is also serving as Disclosure Counsel for the City in connection with the issuance of the Bonds. It is expected the Bonds will be available for
delivery on or about September 15, 2026. This Preliminary Official Statement in the form presented is deemed final for purposes of Rule 15c2-12 of
the Securities and Exchange Commission, subject to revisions, corrections of modifications as determined to be appropriate, and is authorized to be
distributed in connection with the offering of the Bonds for sale.
*Preliminary; subject to change.
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CITY OF AMES, IOWA
$44,320,000* General Obligation Corporate Purpose Bonds, Series 2026C
MATURITY: The Bonds will mature June 1 in the years and amounts as follows:
Yea Amoun * Yea Amount*
2027 $1,095,000 2037 $3,140,000
2028 1,380,000 2038 3,270,000
2029 1,890,000 2039 1,670,000
2030 2,230,000 2040 1,735,000
2031 2,345,000 2041 1,800,000
2032 2,465,000 2042 1,880,000
2033 2,585,000 2043 1,950,000
2034 2,710,000 2044 2,030,000
2035 2,850,000 2045 2,110,000
2036 2,990,000 2046 2,195,000
*PRINCIPAL
ADJUSTMENT: Preliminary; subject to change. The aggregate principal amount of the Bonds is 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 scheduled maturity thereof in increments of $5,000 but the total
amount to be issued will not exceed $51,875,000. 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.
INTEREST: Interest on the Bonds will be payable on June 1, 2027 and semiannually thereafter.
REDEMPTION: Bonds due after June 1, 2034 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. 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. See “REDEMPTION”
herein.
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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 final “Preliminary 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 PFM Financial
Advisors LLC (the “Municipal 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, the Municipal Advisor or the underwriter
to give any information or to make any representations other than those contained in this Preliminary Official Statement
or the final Official Statement and, if given or made, such information and representations must not be relied upon as
having been authorized by the City, the Municipal Advisor or the underwriter. This Preliminary Official Statement or the
final Official Statement does not constitute an offer to sell or 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 set forth herein has been obtained from the City and other sources which are believed to be reliable,
but it is not to be construed as a representation by the Municipal Advisor or underwriter. The information and expressions
of opinion herein are subject to change without notice, and neither the delivery of this Preliminary Official Statement or
the final Official Statement, nor any sale made thereafter shall, under any circumstances, create any implication there has
been no change in the affairs of the City or in any other information contained herein, 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.
Compensation of the Municipal Advisor, payable entirely by the City, is contingent upon the sale of the Bonds.
References to website addresses presented herein are for informational purposes only and may be in the form of a
hyperlink solely for the reader’s convenience. Unless specified otherwise, such websites and the information or links
contained therein are not incorporated into, and are not part of, this Preliminary Official Statement for purposes of, and
as that term is defined in, Securities and Exchange Commission Rule 15c2-12.
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City of Ames, Iowa
Mayor/City Council
Membe Office Initial Term Commenced Term Expires
John Haila Mayo January 02, 2018 December 31, 2029
Bronwyn Beatty-Hansen Council Member – 1st Ward January 01, 2016 December 31, 2029
Tim Gartin Council Member – 2nd Ward January 02, 2014 December 31, 2027
Gloria Betche Council Member – 3rd Ward January 02, 2014 December 31, 2029
Rachel Junck Council Member – 4th Ward January 02, 2020 December 31, 2027
Anita Rollins Council Member – At Large January 03, 2022 December 31, 2027
Amber Corrieri Council Member – At Large January 02, 2014 December 31, 2029
Trey Anderson Ex-Officio
Administration
Steven Schainker, City Manager
Corey Goodenow, Director of Finance
Renee Hall, City Clerk
Roger Wisecup II, City Treasurer
John Dunn, Director of Water and Pollution Control
Justin Clausen, Public Works Director
Donald Kom, Director of Electric Utility
City Attorney
Mark Lambert
Ames, Iowa
Bond and Disclosure Counsel
Dorsey & Whitney LLP
Des Moines, Iowa
Municipal Advisor
PFM Financial Advisors LLC
Des Moines, Iowa
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TABLE OF CONTENTS
TERMS OF OFFERING ................................................................................................................. ..i
SCHEDULE OF BOND YEARS .................................................................................................... vi
EXHIBIT 1 - FORMS OF ISSUE PRICE CERTIFICATES
PRELIMINARY OFFICIAL STATEMENT
Introduction ....................................................................................................................................................... ..1
Authority And Purpose ...................................................................................................................................... ..1
Interest On The Bonds ....................................................................................................................................... ..1
Redemption ....................................................................................................................................................... ..1
Payment Of And Security For The Bonds ......................................................................................................... ..2
Book-Entry-Only Issuance ................................................................................................................................ ..2
Future Financing ............................................................................................................................................... ..4
Litigation ........................................................................................................................................................... ..4
Debt Payment History ....................................................................................................................................... ..4
Legal Matters..................................................................................................................................................... ..4
Tax Exemption And Related Tax Matters ......................................................................................................... ..5
Bondholder's Risks ............................................................................................................................................ ..6
Rating ................................................................................................................................................................ 10
Municipal Advisor ............................................................................................................................................. 11
Underwriting ..................................................................................................................................................... 11
Continuing Disclosure ....................................................................................................................................... 12
Financial Statements ......................................................................................................................................... 12
Miscellaneous .................................................................................................................................................... 12
APPENDIX A - GENERAL INFORMATION ABOUT THE CITY OF AMES, IOWA
APPENDIX B - FORM OF BOND COUNSEL OPINION
APPENDIX C - JUNE 30, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT
APPENDIX D - FORM OF CONTINUING DISCLOSURE CERTIFICATE
OFFICIAL BID FORM
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TERMS OF OFFERING
CITY OF AMES, IOWA
Bids for the purchase of the City of Ames, Iowa’s (the “City” or the “Issuer”) $44,320,000* General Obligation Corporate
Purpose Bonds, Series 2026C (the “Bonds”) will be received on Tuesday, August 25, 2026, before 10:00 A.M., Central
Time, after which time they will be tabulated. The City Council will consider award of the Bonds at 6:00 P.M., Central
Time, on the same day. Questions regarding the sale of the Bonds should be directed to the City’s Municipal Advisor,
PFM Financial Advisors LLC (the “Municipal Advisor”), 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309,
telephone 515-724-5734. Information may also be obtained from Mr. Roger Wisecup, City Treasurer, City of Ames, 515
Clark Avenue, Ames, Iowa, 50010, telephone 515-239-5119.
The following section sets forth the description of certain terms of the Bonds, as well as the “TERMS OF OFFERING”
with which all bidders and bid proposals are required to comply.
DETAILS OF THE BONDS
GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2026C, in the principal amount of $44,320,000*
to be dated the date of delivery (anticipated to be September 15, 2026), in the denomination of $5,000 or multiples thereof,
will mature on June 1 as follows:
Yea Amoun * Yea Amount*
2027 $1,095,000 2037 $3,140,000
2028 1,380,000 2038 3,270,000
2029 1,890,000 2039 1,670,000
2030 2,230,000 2040 1,735,000
2031 2,345,000 2041 1,800,000
2032 2,465,000 2042 1,880,000
2033 2,585,000 2043 1,950,000
2034 2,710,000 2044 2,030,000
2035 2,850,000 2045 2,110,000
2036 2,990,000 2046 2,195,000
* Preliminary; subject to change.
ADJUSTMENT TO BOND MATURITY AMOUNTS
The aggregate principal amount of the Bonds is 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 scheduled maturity thereof in increments
of $5,000 but the total amount to be issued will not exceed $51,875,000. 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.
INTEREST ON THE BONDS
Interest on the Bonds will be payable on June 1, 2027, and semiannually on the 1st day of December and June 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 15th 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.
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REDEMPTION
Bonds due after June 1, 2034, 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.
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. (See the “OFFICIAL BID FORM” for more information.) In any event, the above principal
amount scheduled shall be represented by either serial bond maturities or mandatory redemption requirements, or a
combination of both.
GOOD FAITH DEPOSIT
A good faith deposit in the amount of $443,200 (the “Deposit”) is required from the lowest bidder only. The lowest
bidder is required to submit such Deposit payable to the order of the City, not later than 12:00 P.M., Central Time, on the
day of the sale of the Bonds and in the form of either (i) a cashier’s check provided to the City or its Municipal Advisor,
or (ii) a wire transfer as instructed by the City’s Municipal Advisor. 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 a Purchaser fails to honor its accepted bid proposal, any 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 $43,876,800, plus accrued interest,
and shall specify the rate or rates of interest in conformity to the limitations as set forth in the “BIDDING
PARAMETERS” section herein. 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 “ESTABLISHMENT OF ISSUE PRICE” herein,
and “GOOD FAITH DEPOSIT” herein. 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 Municipal Advisor based on the “TERMS OF
OFFERING” and all amendments, and on the bids as submitted. The Municipal 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.
BIDDING 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.
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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 City’s Treasurer, City Hall, 515
Clark Avenue, Ames, Iowa 50010.
Electronic Internet Bidding: Electronic internet bids will be received at the office of the City’s Municipal Advisor, PFM
Financial Advisors LLC, Des Moines, Iowa, and at the office of the City’s Treasurer. Electronic internet bids must be
submitted through the Internet Bid System. Information about the Internet Bid System may be obtained by calling
212-849-5021.
Each bidder shall be solely responsible for making necessary arrangements to access the Internet Bid System for purposes
of submitting its electronic 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 electronic 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.
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.
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.
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DELIVERY
The Bonds will be delivered to the Purchaser through DTC in New York, New York, 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.
ESTABLISHMENT OF ISSUE PRICE
In order to establish the issue price of the Bonds for federal income tax purposes, the City requires bidders to agree to the
following, and by submitting a bid, each bidder agrees to the following.
If a bid is submitted by a potential underwriter, the bidder confirms that (i) the underwriters have offered or reasonably
expect to offer the Bonds to the public on or before the date of the award at the offering price (the “initial offering price”)
for each maturity as set forth in the bid and (ii) the bidder, if it is the winning bidder, shall require any agreement among
underwriters, selling group agreement, retail distribution agreement or other agreement relating to the initial sale of the
Bonds to the public to which it is a party to include provisions requiring compliance by all parties to such agreements
with the provisions contained herein. For purposes hereof, Bonds with a separate CUSIP number constitute a separate
“maturity,” and the public does not include underwriters of the Bonds (including members of a selling group or retail
distribution group) or persons related to underwriters of the Bonds.
If, however, a bid is submitted for the bidder’s own account in a capacity other than as an underwriter of the Bonds, and
the bidder has no current intention to sell, reoffer, or otherwise dispose of the Bonds, the bidder shall notify the City to
that effect at the time it submits its bid and shall provide a certificate to that effect in place of the certificate otherwise
required below.
If the winning bidder intends to act as an underwriter, the City shall advise the winning bidder at or prior to the time of
award whether (i) the competitive sale rule or (ii) the “hold-the-offering price” rule applies.
If the City advises the Purchaser that the requirements for a competitive sale have been satisfied and that the competitive
sale rule applies, the Purchaser will be required to deliver to the City at or prior to closing a certification, substantially in
the form attached hereto as EXHIBIT 1-A, as to the reasonably expected initial offering price as of the award date.
If the City advises the Purchaser that the requirements for a competitive sale have not been satisfied and that the hold-the-
offering price rule applies, the Purchaser shall (1) upon the request of the City confirm that the underwriters did not offer
or sell any maturity of the Bonds to any person at a price higher than the initial offering price of that maturity during the
period starting on the award date and ending on the earlier of (a) the close of the fifth business day after the sale date or
(b) the date on which the underwriters have sold at least 10% of that maturity to the public at or below the initial offering
price; and (2) at or prior to closing, deliver to the City a certification substantially in the form attached hereto as
EXHIBIT 1-B, together with a copy of the pricing wire.
Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf
of the City by Municipal Advisor.
Bidders should prepare their bids on the assumption that the Bonds will be subject to the “hold-the-offering-price”
rule. Any bid submitted pursuant to the “TERMS OF OFFERING” and “OFFICIAL BID FORM” shall be
considered a firm offer for the purchase of the Bonds, and bids submitted will not be subject to cancellation or
withdrawal.
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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 promulgated by the Securities
and Exchange Commission under the Securities Exchange Act of 1934, as amended (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 25 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, 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.
ELECTRONIC EXECUTED DOCUMENTS
Purchaser consents to the receipt of electronic transcripts and acknowledges the City’s intended use of electronically
executed documents. Chapter 554D of the Iowa Code establishes electronic signatures have the full weight and legal
authority as manual signatures.
CONTINUING DISCLOSURE
The City will covenant in a Continuing Disclosure Certificate for the benefit of the Owners and Beneficial Owners of the
Bonds to provide annually certain financial information and operating data relating to the City (the “Annual Report”), and
to provide notices of the occurrence of certain enumerated events. The Annual Report is to be filed by the City not later
than June 30 after the close of each fiscal year, commencing with the close of the fiscal year ending June 30, 2026, with
the Municipal Securities Rulemaking Board, at its internet repository named “Electronic Municipal Market Access”
(“EMMA”). The notices of events, if any, are also to be filed with EMMA. See “APPENDIX D – FORM OF
CONTINUING DISCLOSURE CERTIFICATE”. The specific nature of the information to be contained in the Annual
Report or the notices of events, and the manner in which such materials are to be filed, are summarized in “APPENDIX
D – FORM OF CONTINUING DISCLOSURE CERTIFICATE”. These covenants have been made in order to assist the
Purchaser in complying with section (b)(5) of the Rule.
During the previous five years, the City has not failed to comply, in all material respects, with any previous undertakings
it has entered into with respect to the Rule.
Regarding the Mary Greeley Medical Center (the “Medical Center”), the Annual Financial Information and Operating
Data Report for the Fiscal Year ending June 30, 2021 was not timely filed.
Breach of the undertakings will not constitute a default or an “Event of Default” under the Bonds or the resolution for the
Bonds. A broker or dealer is to consider a known breach of the undertakings, however, before recommending the purchase
or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the undertakings may
adversely affect the transferability and liquidity of the Bonds and their market price.
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,
Disclosure Counsel or Municipal 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
City of Ames, Iowa
/s/ Roger Wisecup, City Treasurer
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SCHEDULE OF BOND YEARS
$44,320,000*
City of Ames, Iowa
General Obligation Corporate Purpose Bonds, Series 2026C
Bonds Dated:
Interest Due: June 1, 2027 and each December 1 and June 1 to maturity
Principal Due: June 1, 2027-2046
Cumulative
Year Principal *ond Years Bond Years
2027 $1,095,000 778.67 778.67
2028 1,380,000 2,361.33 3,140.00
2029 1,890,000 5,124.00 8,264.00
2030 2,230,000 8,275.78 16,539.78
2031 2,345,000 11,047.56 27,587.33
2032 2,465,000 14,077.89 41,665.22
2033 2,585,000 17,348.22 59,013.44
2034 2,710,000 20,897.11 79,910.56
2035 2,850,000 24,826.67 104,737.22
2036 2,990,000 29,036.22 133,773.44
2037 3,140,000 33,632.89 167,406.33
2038 3,270,000 38,295.33 205,701.67
2039 1,670,000 21,227.56 226,929.22
2040 1,735,000 23,788.78 250,718.00
2041 1,800,000 26,480.00 277,198.00
2042 1,880,000 29,536.89 306,734.89
2043 1,950,000 32,586.67 339,321.56
204 2,030,000 35,953.56 375,275.11
2045 2,110,000 39,480.44 414,755.56
2046 2,195,000 43,265.89 458,021.44
Average Maturity (dated date): 10.334 Years
* Preliminary; subject to change.
September 15, 2026
14
EXHIBIT 1
FORMS OF ISSUE PRICE CERTIFICATES
15
Exhibit 1-A to Terms of Offering
EXHIBIT 1-A
$44,320,000
GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2026C
Form of ISSUE PRICE CERTIFICATE
(3 or More Bids)
The undersigned, on behalf of [NAME OF UNDERWRITER] (“[SHORT NAME OF
UNDERWRITER]”), hereby certifies as set forth below with respect to the sale of the obligations
named above (the “Bonds”).
1. Reasonably Expected Initial Offering Price.
(a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to
the Public by [SHORT NAME OF UNDERWRITER] are the prices listed in Schedule A (the
“Expected Offering Prices”). The Expected Offering Prices are the prices for the Maturities of the
Bonds used by [SHORT NAME OF UNDERWRITER] in formulating its bid to purchase the
Bonds. Attached as Schedule B is a true and correct copy of the bid provided by [SHORT NAME
OF UNDERWRITER] to purchase the Bonds.
(b) [SHORT NAME OF UNDERWRITER] was not given the opportunity to review
other bids prior to submitting its bid.
(c) The bid submitted by [SHORT NAME OF UNDERWRITER] constituted a firm
offer to purchase the Bonds.
2. Defined Terms. For purposes of this Issue Price Certificate:
(a) Issuer means the City of Ames, Iowa.
(b) Maturity means Bonds with the same credit and payment terms. Any Bonds with
different maturity dates, or with the same maturity date but different stated interest rates, are treated
as separate Maturities.
(c) Member of the Distribution Group means (i) any person that agrees pursuant to a
written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate)
to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant
to a written contract directly or indirectly with a person described in clause (i) of this paragraph to
participate in the initial sale of the Bonds to the Public (including a member of a selling group or
a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
(d) Public means any person (i.e., an individual, trust, estate, partnership, association,
company, or corporation) other than a Member of the Distribution Group or a related party to a
Member of the Distribution Group. A person is a “related party” to a Member of the Distribution
Group if the Member of the Distribution Group and that person are subject, directly or indirectly,
to (i) at least 50% common ownership of the voting power or the total value of their stock, if both
entities are corporations (including direct ownership by one corporation of another), (ii) more than
50% common ownership of their capital interests or profits interests, if both entities are
16
Exhibit 1-A to Terms of Offering
partnerships (including direct ownership by one partnership of another), or (iii) more than 50%
common ownership of the value of the outstanding stock of the corporation or the capital interests
or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity
is a partnership (including direct ownership of the applicable stock or interests by one entity of the
other).
(e) Sale Date means the first day on which there is a binding contract in writing for the
sale of the respective Maturity. The Sale Date of each Maturity was August 25, 2026.
The representations set forth in this certificate are limited to factual matters only. Nothing
in this certificate represents [SHORT NAME OF UNDERWRITER]’s interpretation of any laws,
including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended,
and the Treasury Regulations thereunder. The undersigned understands that the foregoing
information will be relied upon by the Issuer with respect to certain of the representations set forth
in the Closing Certificate and with respect to compliance with the federal income tax rules
affecting the Bonds, and by Dorsey & Whitney LLP in connection with rendering its opinion that
the interest on the Bonds is excluded from gross income for federal income tax purposes, the
preparation of the Internal Revenue Service Form 8038-G and other federal income tax advice that
it may give to the Issuer from time to time relating to the Bonds.
[UNDERWRITER]
By:
Name:
Dated: September 15, 2026
17
Exhibit 1-A to Terms of Offering
SCHEDULE A
EXPECTED OFFERING PRICES
(Attached)
18
Exhibit 1-A to Terms of Offering
SCHEDULE B
COPY OF UNDERWRITER’S BID
(Attached)
19
Exhibit 1-B to Terms of Offering
EXHIBIT 1-B
$44,320,000
GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2026C
Form of ISSUE PRICE CERTIFICATE
(Fewer than 3 Bids)
The undersigned, on behalf of [NAME OF UNDERWRITER/REPRESENTATIVE] ([“[SHORT
NAME OF UNDERWRITER]”)][the “Representative”)][, on behalf of itself and [UNDERWRITER OF
OTHER UNDERWRITERS] (together, the “Underwriting Group”),] hereby certifies as set forth below with
respect to the sale of the obligations named above (the “Bonds”).
1. Initial Offering Price of the Bonds. [SHORT NAME OF UNDERWRITER][The Underwriting
Group] offered the Bonds to the Public for purchase at the specified initial offering prices listed in Schedule A
(the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire for the Bonds is attached
to this certificate as Schedule B.
2. First Price at which Sold to the Public. On the Sale Date, at least 10% of each Maturity [listed
in Schedule C] was first sold to the Public at the respective Initial Offering Price [or price specified [therein][in
Schedule C], if different].
3. Hold the Offering Price Rule. [SHORT NAME OF UNDERWRITER][Each member of the
Underwriting Group] has agreed in writing that, (i) for each Maturity less than 10% of which was first sold to
the Public at a single price as of the Sale Date, it would neither offer nor sell any of the Bonds of such Maturity
to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period
for such Maturity (the “Hold-the-Offering-Price Rule”), and (ii) any agreement among underwriters, selling
group agreement, or third-party distribution agreement contains the agreement of each underwriter, dealer, or
broker-dealer who is a party to such agreement to comply with the Hold-the-Offering-Price Rule. Based on the
[Representative][SHORT NAME OF UNDERWRITER]’s own knowledge and, in the case of sales by other
Members of the Distribution Group, representations obtained from the other Members of the Distribution
Group, no Member of the Distribution Group has offered or sold any such Maturity at a price that is higher than
the respective Initial Offering Price during the respective Holding Period.
4. Defined Terms. For purposes of this Issue Price Certificate:
(a) Holding Period means the period starting on the Sale Date and ending on the earlier of (i) the
close of the fifth business day after the Sale Date (September 2, 2026), or (ii) the date on which Members of the
Distribution Group have sold at least 10% of such Maturity to the Public at one or more prices, none of which
is higher than the Initial Offering Price for such Maturity.
(b) Issuer means the City of Ames, Iowa.
(c) Maturity means Bonds with the same credit and payment terms. Any Bonds with different
maturity dates, or with the same maturity date but different stated interest rates, are treated as separate
Maturities.
(d) Member of the Distribution Group means (i) any person that agrees pursuant to a written contract
with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale
of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly
with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public
(including a member of a selling group or a party to a retail distribution agreement participating in the initial
sale of the Bonds to the Public).
20
Exhibit 1-B to Terms of Offering
(e) Public means any person (i.e., an individual, trust, estate, partnership, association, company, or
corporation) other than a Member of the Distribution Group or a related party to a Member of the Distribution
Group. A person is a “related party” to a Member of the Distribution Group if the Member of the Distribution
Group and that person are subject, directly or indirectly, to (i) at least 50% common ownership of the voting
power or the total value of their stock, if both entities are corporations (including direct ownership by one
corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if
both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50%
common ownership of the value of the outstanding stock of the corporation or the capital interests or profit
interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership
(including direct ownership of the applicable stock or interests by one entity of the other).
(f) Sale Date means the first day on which there is a binding contract in writing for the sale of the
respective Maturity. The Sale Date of each Maturity was August 25, 2026.
The representations set forth in this certificate are limited to factual matters only. Nothing in this
certificate represents [NAME OF UNDERWRITING FIRM] interpretation of any laws, including specifically
Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations
thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with
respect to certain of the representations set forth in the Closing Certificate and with respect to compliance with
the federal income tax rules affecting the Bonds, and by Dorsey & Whitney LLP in connection with rendering
its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the
preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give
to the Issuer[ and the Borrower] from time to time relating to the Bonds.
[UNDERWRITER][REPRESENTATIVE]
By:____________________________________
Name:__________________________________
Dated: September 15, 2026
21
Exhibit 1-B to Terms of Offering
SCHEDULE A
INITIAL OFFERING PRICES OF THE BONDS
(Attached)
22
Exhibit 1-B to Terms of Offering
SCHEDULE B
PRICING WIRE
(Attached)
23
Exhibit 1-B to Terms of Offering
SCHEDULE C
SALES OF AT LEAST 10% OF MATURITY TO THE PUBLIC ON THE SALE DATE
AT THE INITIAL OFFERING PRICE
(Attached)
24
1
PRELIMINARY OFFICIAL STATEMENT
CITY OF AMES, IOWA
$44,320,000* General Obligation Corporate Purpose Bonds, Series 2026C
INTRODUCTION
This Preliminary Official Statement contains information relating to the City of Ames, Iowa (the “City” or the “Issuer”)
and its issuance of $44,320,000* General Obligation Corporate Purpose Bonds, Series 2026C (the “Bonds”). This
Preliminary Official Statement has been authorized by the City and may be distributed in connection with the sale of the
Bonds authorized therein. Inquiries may be made to the City’s Municipal Advisor, PFM Financial Advisors LLC (the
“Municipal Advisor”), 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309, telephone 515-724-5734. Information
may also be obtained from Mr. Roger Wisecup, City Treasurer, City of Ames, 515 Clark Avenue, Ames, Iowa, 50010,
telephone 515-239-5119.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Chapters 384 and 76 of the Code of Iowa, 2025, as amended (collectively, the
“Act”), and a resolution expected to be adopted by the City Council of the City on August 25, 2026 (the “Resolution”).
The Bonds are being issued for the purpose of paying the cost, to that extent, of (a) undertaking improvements to the
municipal right of way, including the construction of street, storm water drainage, sidewalk, sanitary sewer system and
water utility system improvements; (b) acquiring and installing street lighting, signage, signalization and traffic control
systems and improvements; (c) undertaking surfacing improvements at the municipal airport; (d) constructing furnishing,
equipping a new municipal fire station as a replacement for existing Fire Station #2; (e) constructing and equipping a
transfer station for the City’s solid waste disposal system; and (f) paying certain costs of issuance related to the Bonds.
The estimated sources and uses of the Bonds are as follows:
Sources of Funds
Bond Principal $44,320,000*
Premiu $
Total Sources of Funds $
Uses of Funds
Pro ect Fun $
Costs of Issuance & Contin enc (1) $
Total Uses of Funds $
* Preliminary; subject to change.
INTEREST ON THE BONDS
Interest on the Bonds will be payable on June 1, 2027 and semiannually on the 1st day of December and June 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 15th 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.
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REDEMPTION
Optional Redemption. Bonds due after June 1, 2034 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.
Mandatory Sinking Fund Redemption. The Bonds identified below are subject to mandatory redemption (by lot, as
selected by the Registrar) on June 1 in each of the years set forth below at a redemption price of 100% of the principal
amount thereof to be redeemed, plus accrued interest thereon to the redemption date in the following principal amounts:
Term Bond Maturing June 1, 20__
Date Amount
June 1, 20__ $________
June 1, 20__ (maturity) $________
Selection of Bonds for Redemption. Bonds subject to redemption (other than mandatory sinking fund redemptions) will
be selected in such order of maturity as the Issuer may direct. If less than all of the Bonds of any like maturity are to be
redeemed, the particular part of those Bonds to be redeemed shall be selected by the Registrar by lot.
Notice of Redemption. Notice of such redemption as aforesaid identifying the Bond or Bonds (or portion thereof) to be
redeemed shall be sent by electronic means or mailed by certified mail to the registered owners thereof at the addresses
shown on the City’s registration books not less than thirty (30) days prior to such redemption date.
Any notice of redemption may contain a statement that the redemption is conditioned upon the receipt by the Registrar of
funds on or before the date fixed for redemption sufficient to pay the redemption price of the Bonds so called for
redemption, and that if funds are not available, such redemption shall be cancelled by written notice to the owners of the
Bonds called for redemption in the same manner as the original redemption notice was sent, provided that such notice of
cancellation is to be made at least five days prior to the date fixed for redemption.
PAYMENT OF AND SECURITY FOR THE BONDS
Pursuant to the Resolution and the Act, the Bonds and the interest thereon are general obligations of the City, and all
taxable property within the corporate boundaries of the City 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.
Section 76.2 of the Code of Iowa, 2025, as amended (the “Iowa Code”), provides that when an Iowa political subdivision
issues general obligation bonds, the governing authority of such political subdivision shall, by resolution adopted before
issuing the bonds, provide for the assessment of an annual levy upon all the taxable property in the political subdivision
sufficient to pay the interest and principal of the bonds. A certified copy of such resolution shall be filed with the County
Auditor in which the City is located, giving rise to a duty of the County Auditor to annually enter this levy for collection
from the taxable property within the boundaries of the City, until funds are realized to pay the bonds in full.
For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest
on the Bonds as the same become due, the Resolution provides for the levy of a tax sufficient for that purpose on all the
taxable property in the City in each of the years while the Bonds are outstanding. The City shall file a certified copy of
the Resolution with the County Auditor, pursuant to which the County Auditor is instructed to enter for collection and
assess the tax authorized. When annually entering such taxes for collection, the County Auditor shall include the same
as a part of the tax levy for Debt Service Fund purposes of the City and when collected, the proceeds of the taxes shall be
converted into the Debt Service Fund of the City and set aside therein as a special account to be used solely and only for
the payment of the principal of and interest on the Bonds and for no other purpose whatsoever.
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Pursuant to the provisions of Section 76.4 of the Iowa Code, each year while the Bonds remain outstanding and unpaid,
any funds of the City which may lawfully be applied for such purpose, may be appropriated, budgeted and, if received,
used for the payment of the principal of and interest on the Bonds as the same become due, and if so appropriated, the
taxes for any given fiscal year as provided for in the Resolution, shall be reduced by the amount of such alternate funds
as have been appropriated for said purpose and evidenced in the City’s budget.
BOOK-ENTRY-ONLY ISSUANCE
The information contained in the following paragraphs of this subsection “BOOK-ENTRY-ONLY ISSUANCE” has been
extracted from a schedule prepared by Depository Trust Company (“DTC”) entitled “SAMPLE OFFERING
DOCUMENT LANGUAGE DESCRIBING BOOK-ENTRY-ONLY ISSUANCE”. The information in this section
concerning DTC and DTC’s book-entry-only system has been obtained from sources that the City believes to be reliable,
but the City takes no responsibility for the accuracy thereof.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the
“Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-
registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of
such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500
million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate
will be issued with respect to any remaining principal amount of such issue.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking
Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing
agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and
provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt
issues, and money market instruments from over 100 countries that DTC’s participants (the “Direct Participants”) deposit
with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities
transactions in deposited securities, through electronic computerized book-entry-only transfers and pledges between
Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct
Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations,
and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation
(“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing
Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries.
Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks,
trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant,
either directly or indirectly (the “Indirect Participants”). DTC has S&P Global Ratings: AA+. The DTC Rules applicable
to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found
at www.dtcc.com.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit
for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (the “Beneficial
Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive
written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or
Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in
the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of
Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities,
except in the event that use of the book-entry-only system for the Securities is discontinued.
To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of
DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of
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DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee
do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the
Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited,
which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping
account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners
of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with
respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents.
For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their
benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish
to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co., nor any other DTC nominee, will consent or vote with respect to Securities unless
authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails
an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s
consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date
identified in a listing attached to the Omnibus Proxy.
Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other
nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’
accounts upon DTC’s receipt of funds and corresponding detail information from the City or Agent, on payable date in
accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will
be governed by standing instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC,
Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co., or such other nominee as may be requested by
an authorized representative of DTC, is the responsibility of the City or Agent, disbursement of such payments to Direct
Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the
responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the
Participant’s interest in the Securities, on DTC’s records, to Remarketing Agent. The requirement for physical delivery
of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership
rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry-only credit
of tendered Securities to Remarketing Agent’s DTC account.
DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable
notice to the City or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security
certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities
depository). In that event, Security certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry-only system has been obtained from sources that
the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
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FUTURE FINANCING
The City does not anticipate issuing any additional general obligation debt within 90 days of the issuance of the Bonds.
However, the City does anticipate issuing approximately $50,805,000 of Electric Revenue Bonds in fall 2026 to be repaid
solely and only from the net revenues of the electric enterprise fund. The anticipated fall 2026 electric revenue issuance
is part of a larger, $190,000,000, project; however, the next financing is not expected to occur for another 18 months.
LITIGATION
The City encounters litigation occasionally, as a course of business; however, no litigation currently exists that is not
believed to be covered by current insurance carriers and the City is not aware of any threatened or pending litigation
affecting the validity of the Bonds or the City’s ability to meet its financial obligations.
DEBT PAYMENT HISTORY
The City knows of no instance in which it has defaulted in the payment of principal and interest on its debt.
LEGAL MATTERS
Legal matters incident to the authorization, issuance and sale of the Bonds and with regard to the tax-exempt status of the
interest thereon (see “TAX EXEMPTION AND RELATED TAX MATTERS” herein) are subject to the approving legal
opinion of Dorsey & Whitney LLP, Des Moines, Iowa, Bond Counsel, a form of which is attached hereto as APPENDIX B
to this Preliminary Official Statement. Signed copies of the opinion, dated and premised on law in effect as of the date
of original delivery of the Bonds, will be delivered to the purchaser at the time of such original delivery. The Bonds are
offered subject to prior sale and to the approval of legality of the Bonds by Bond Counsel. Dorsey & Whitney LLP is
also serving as Disclosure Counsel to the Issuer in connection with issuance of the Bonds.
The legal opinion to be delivered will express the professional judgment of Bond Counsel, and by rendering a legal
opinion, Bond Counsel does not become an insurer or guarantor of the result indicated by that expression of professional
judgment of the transaction or the future performance of the parties to the transaction.”
TAX EXEMPTION AND RELATED TAX MATTERS
Federal Income Tax Exemption: The opinion of Bond Counsel will state that under present laws and rulings, interest on
the Bonds 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 noncorporate taxpayers under the Internal Revenue of 1986 Code (the
“Code”).
The opinion set forth in the preceding sentence will be subject to the condition that the Issuer comply with all requirements
of 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. 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. In the resolution authorizing the issuance of the Bonds, the Issuer will covenant to comply
with all such requirements.
There may be certain other federal tax consequences to the ownership of the Bonds by certain taxpayers, including without
limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S
corporations, individual recipients of Social Security and Railroad Retirement benefits, taxpayers who may be deemed to
have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations, and corporations that may be
subject to the alternative minimum tax. Bond Counsel will express no opinion with respect to other federal tax
consequences to owners of the Bonds. Prospective purchasers of the Bonds should consult with their tax advisors as to
such matters.
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Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses
no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the
Bonds should consult their tax advisors regarding the applicability of any such state and local taxes.
Proposed Changes in Federal and State Tax Law: From time to time, there are Presidential proposals, proposals of various
federal committees, and legislative proposals in the Congress and in the states that, if enacted, could alter or amend the
federal and state tax matters referred to herein or adversely affect the marketability or market value of the Bonds or
otherwise prevent holders of the Bonds from realizing the full benefit of the tax exemption of interest on the Bonds.
Further, such proposals may impact the marketability or market value of the Bonds simply by being proposed. No
prediction is made whether such provisions will be enacted as proposed or concerning other future legislation affecting
the tax treatment of interest on the Bonds. In addition, regulatory actions are from time to time announced or proposed
and litigation is threatened or commenced which, if implemented or concluded in a particular manner, could adversely
affect the market value, marketability or tax exempt status of the Bonds. It cannot be predicted whether any such
regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the
Bonds would be impacted thereby.
Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed legislation, regulatory
initiatives or litigation. The opinions expressed by Bond Counsel are based upon existing legislation and regulations as
interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Bonds, and Bond
Counsel has expressed no opinion as of any date subsequent thereto or with respect to any proposed or pending legislation,
regulatory initiatives or litigation.
Original Issue Discount: The Bonds maturing in the years ________________ (collectively, the “Discount Bonds”) are
being sold at a discount from the principal amount payable on such Discount Bonds at maturity. The difference between
the price at which a substantial amount of the Discount Bonds of a given maturity is first sold to the public (the “Issue
Price”) and the principal amount payable at maturity constitutes “original issue discount” under the Code. The amount
of original issue discount that accrues to a holder of a Discount Bond under Section 1288 (“Section 1288”) of the Code is
excluded from federal gross income to the same extent that stated interest on such Discount Bond would be so excluded.
The amount of the original issue discount that accrues with respect to a Discount Bond under Section 1288 is added to
the owner’s federal tax basis in determining gain or loss upon disposition of such Discount Bond (whether by sale,
exchange, redemption or payment at maturity).
Interest in the form of original issue discount accrues under Section 1288 pursuant to a constant yield method that reflects
semiannual compounding on dates that are determined by reference to the maturity date of the Discount Bond. The
amount of original issue discount that accrues for any particular semiannual accrual period generally is equal to the excess
of (1) the product of (a) one-half of the yield on such Discount Bonds (adjusted as necessary for an initial short period)
and (b) the adjusted issue price of such Discount Bonds, over (2) the amount of stated interest actually payable. For
purposes of the preceding sentence, the adjusted issue price is determined by adding to the Issue Price for such Discount
Bonds the original issue discount that is treated as having accrued during all prior semiannual accrual periods. If a
Discount Bond is sold or otherwise disposed of between semiannual compounding dates, then the original issue discount
that would have accrued for that semiannual accrual period for federal income tax purposes is allocated ratably to the days
in such accrual period.
An owner of a Discount Bond who disposes of such Discount Bond prior to maturity should consult owner’s tax advisor
as to the amount of original issue discount accrued over the period held and the amount of taxable gain or loss upon the
sale or other disposition of such Discount Bond prior to maturity.
Owners who purchase Discount Bonds in the initial public offering but at a price different than the Issue Price should
consult their own tax advisors with respect to the tax consequences of the ownership of Discount Bonds.
The Code contains provisions relating to the accrual of original issue discount in the case of subsequent purchasers of
bonds such as Discount Bonds. Owners who do not purchase Discount Bonds in the initial offering should consult their
own tax advisors with respect to the tax consequences of the ownership of the Discount Bonds.
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Original issue discount that accrues in each year to an owner of a Discount Bond may result in collateral federal income
tax consequences to certain taxpayers. No opinion is expressed as to state and local income tax treatment of original issue
discount. All owners of Discount Bonds should consult their own tax advisors with respect to the federal, state, local and
foreign tax consequences associated with the purchase, ownership, redemption, sale or other disposition of Discount
Bonds.
Original Issue Premium: The Bonds maturing in the years _____________ are being issued at a premium to the principal
amount payable at maturity. Except in the case of dealers, which are subject to special rules, Bondholders who acquire
the Bonds at a premium must, from time to time, reduce their federal tax bases for the Bonds for purposes of determining
gain or loss on the sale or payment of such Bonds. Premium generally is amortized for federal income tax purposes on
the basis of a bondholder’s constant yield to maturity or to certain call dates with semiannual compounding. Bondholders
who acquire any Bonds at a premium might recognize taxable gain upon sale of the Bonds, even if such Bonds are sold
for an amount equal to or less than their original cost. Amortized premium is not deductible for federal income tax
purposes. Bondholders who acquire any Bonds at a premium should consult their tax advisors concerning the calculation
of bond premium and the timing and rate of premium amortization, as well as the state and local tax consequences of
owning and selling the Bonds acquired at a premium.
BONDHOLDER’S RISKS
An investment in the Bonds involves an element of risk. In order to identify risk factors and make an informed investment
decision, potential investors should be thoroughly familiar with this entire Preliminary Official Statement (including the
appendices hereto) in order to make a judgment as to whether the Bonds are an appropriate investment.
Tax Levy Procedures: The Bonds are general obligations of the City, payable from and secured by a continuing ad-
valorem tax levied against all of the taxable property within the boundaries of the City. As part of the budgetary process
of the City, each fiscal year the City will have an obligation to request a debt service levy to be applied against all of the
taxable property within the boundaries of the City. A failure on the part of the City to make a timely levy request, or a
levy request by the City that is inaccurate or is insufficient to make full payments of the debt service on the Bonds for a
particular fiscal year, may cause Bondholders to experience delay in the receipt of distributions of principal of and/or
interest on the Bonds.
Changes in Property Taxation: From time to time the Iowa General Assembly has altered the method of property taxation
and could do so again. Any alteration in property taxation structure could affect property tax revenues available to pay
the Bonds.
Historically, the Iowa General Assembly has applied changes in property taxation structure on a prospective basis;
however, there is no assurance that future changes in property taxation structure by the Iowa General Assembly will not
be retroactive. It is impossible to predict the outcome of future property tax changes by the Iowa General Assembly or
their potential negative impact, if any, on the Bonds and the security for the Bonds.
Matters Relating to Enforceability of Agreements: Bondholders shall have and possess all the rights of action and
remedies afforded by the common law, the Constitution and statutes of the State of Iowa and of the United States of
America for the enforcement of payment of the Bonds, including, but not limited to, the right to a proceeding in law or in
equity by suit, action or mandamus to enforce and compel performance of the duties required by Iowa law and the
Resolution.
The practical realization of any rights upon any default will depend upon the exercise of various remedies specified in the
Resolution or the Loan Agreement. The remedies available to the Bondholders upon an event of default under the
Resolution or the Loan Agreement, in certain respects, may require judicial action, which is often subject to discretion
and delay. Under existing law, including specifically the federal bankruptcy code, certain of the remedies specified in the
Loan Agreement or the Resolution may not be readily available or may be limited. A court may decide not to order the
specific performance of the covenants contained in these documents. The legal opinions to be delivered concurrently
with the delivery of the Bonds will be qualified as to the enforceability of the various legal instruments by limitations
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imposed by general principles of equity and public policy and by bankruptcy, reorganization, insolvency or other similar
laws affecting the rights of creditors generally.
No representation is made, and no assurance is given, that the enforcement of any remedies will result in sufficient funds
to pay all amounts due under the Resolution or the Loan Agreement, including principal of and interest on the Bonds.
Secondary Market: There can be no guarantee there will be a secondary market for the Bonds or, if a secondary market
exists, that such Bonds can be sold for any particular price. Occasionally, because of general market conditions or because
of adverse history of economic prospects connected with a particular issue, secondary marketing practices in connection
with a particular note or bond issue are suspended or terminated. Additionally, prices of bond or note issues for which a
market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from
the original purchase price of the Bonds.
EACH PROSPECTIVE PURCHASER IS RESPONSIBLE FOR ASSESSING THE MERITS AND RISKS OF AN
INVESTMENT IN THE BONDS AND MUST BE ABLE TO BEAR THE ECONOMIC RISK OF SUCH
INVESTMENT. THE SECONDARY MARKET FOR THE BONDS, IF ANY, COULD BE LIMITED.
Rating Loss: Moody’s Investors Service (“Moody’s”) has assigned a rating of ‘___’ to the Bonds. Generally, a rating
agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of
its own. There is no assurance the rating will continue for any given period of time, or that such rating will not be revised,
suspended or withdrawn, if, in the judgment of Moody’s, circumstances so warrant. A revision, suspension or withdrawal
of a rating may have an adverse effect on the market price of the Bonds.
Bankruptcy and Insolvency: The rights and remedies provided in the Resolution for the Bonds may be limited by and are
subject to the provisions of federal bankruptcy laws, to other laws or equitable principles that may affect the enforcement
of creditor’s rights, to the exercise of judicial discretion in appropriate cases and to limitations in legal remedies against
exercise of judicial discretion in appropriate cases and to limitations on legal remedies against municipal corporations in
the State of Iowa. The various opinions of counsel to be delivered with respect to the Bonds, the Loan Agreement and
the Resolution for the Bonds, including the opinion of Bond Counsel, will be similarly qualified. If the City were to file
a petition under chapter nine of the federal bankruptcy code, the owners of the Bonds could be prohibited from taking any
steps to enforce their rights under the Resolution for the Bonds. In the event the City fails to comply with its covenants
under the Resolution for the Bonds or fails to make payments on the Bonds, there can be no assurance of the availability
of remedies adequate to protect the interests of the holders of the Bonds.
Under sections 76.16 and 76.16A of the Iowa Code, a city, county, or other political subdivision may become a debtor
under Chapter 9 of the Federal bankruptcy code, if it is rendered insolvent, as defined in 11 U.S.C. §101(32)(c), as a result
of a debt involuntarily incurred. As used therein, “debt” means an obligation to pay money, other than pursuant to a valid
and binding collective bargaining agreement or previously authorized bond issue, as to which the governing body of the
city, county, or other political subdivision has made a specific finding set forth in a duly adopted resolution of each of the
following: (1) all or a portion of such obligation will not be paid from available insurance proceeds and must be paid from
an increase in general tax levy; (2) such increase in the general tax levy will result in a severe, adverse impact on the
ability of the city, county, or political subdivision to exercise the powers granted to it under applicable law, including
without limitation providing necessary services and promoting economic development; (3) as a result of such obligation,
the city, county, or other political subdivision is unable to pay its debts as they become due; and (4) the debt is not an
obligation to pay money to a city, county, entity organized pursuant to chapter 28E of the Iowa Code, or other political
subdivision.
Forward-Looking Statements: This Preliminary Official Statement contains statements relating to future results that are
“forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When used in this
Preliminary Official Statement, the words “anticipated,” “plan,” “expect,” “projected,” “estimate,” “budget,” “pro forma,”
“forecast,” “intend,” and similar expressions identify forward-looking statements. Any forward-looking statement is
subject to uncertainty. Accordingly, such statements are subject to risks that could cause actual results to differ, possibly
materially, from those contemplated in such forward-looking statements. Inevitably, some assumptions used to develop
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forward-looking statements will not be realized or unanticipated events and circumstances may occur. Therefore,
investors should be aware that there are likely to be differences between forward-looking statements and the actual results.
These differences could be material and could impact the availability of funds of the City to pay debt service when due
on the Bonds.
Cybersecurity: The City, like many other public and private entities, relies on a large and complex technology
environment to conduct its operations. As such, it may face multiple cybersecurity threats including but not limited to,
hacking, viruses, malware and other attacks on computer or other sensitive digital systems and networks. There can be
no assurances that any security and operational control measures implemented by the Issuer will be completely successful
to guard against and prevent cyber threats and attacks. Failure to properly maintain functionality, control, security, and
integrity of the City’s information systems could impact business operations and systems, and the costs of remedying any
such damage could be significant.
The City maintains cybersecurity insurance coverage. The City cannot predict whether this coverage would be sufficient
in the event of a cyber-incident.
Tax Matters and Loss of Tax Exemption: As discussed under the heading “TAX EXEMPTION AND RELATED TAX
MATTERS” herein, the interest on the Bonds could become includable in gross income for purposes of federal income
taxation retroactive to the date of delivery of the Bonds, as a result of acts or omissions of the City in violation of its
covenants in the Resolution. Should such an event of taxability occur, the Bonds would not be subject to a special
redemption and would remain outstanding until maturity or until redeemed under the redemption provisions contained in
the Bonds, and there is no provision for an adjustment of the interest rate on the Bonds.
It is possible that actions of the City after the closing of the Bonds will alter the tax exempt status of the Bonds, and, in
the extreme, remove the tax-exempt status from the Bonds. In that instance, the Bonds are not subject to mandatory
prepayment, and the interest rate on the Bonds does not increase or otherwise reset. A determination of taxability on the
Bonds, after closing of the Bonds, could materially adversely affect the value and marketability of the Bonds.
Risk of Audit: The Internal Revenue Service has an ongoing program to audit tax-exempt obligations to determine the
legitimacy of the tax status of such obligations. No assurance can be given as to whether the Internal Revenue Service
will commence an audit of the Bonds. Public awareness of any audit could adversely affect the market value and liquidity
of the Bonds during the pendency of the audit, regardless of the ultimate outcome of the audit.
DTC-Beneficial Owners: Beneficial Owners of the Bonds may experience some delay in the receipt of distributions of
principal of and interest on the Bonds since such distributions will be forwarded by the Paying Agent to DTC and DTC
will credit such distributions to the accounts of the Participants which will thereafter credit them to the accounts of the
Beneficial Owner either directly or indirectly through indirect Participants. Neither the City nor the Paying Agent will
have any responsibility or obligation to assure that any such notice or payment is forwarded by DTC to any Participants
or by any Participant to any Beneficial Owner.
In addition, since transactions in the Bonds can be effected only through DTC Participants, indirect participants and certain
banks, the ability of a Beneficial Owner to pledge the Bonds to persons or entities that do not participate in the DTC
system, or otherwise to take actions in respect of such Bonds, may be limited due to lack of a physical certificate.
Beneficial Owners will be permitted to exercise the rights of registered Owners only indirectly through DTC and the
Participants. See “BOOK-ENTRY-ONLY ISSUANCE” herein.
Proposed Federal Tax Legislation: From time to time, Presidential proposals, federal legislative committee proposals or
legislative proposals are made that would, if enacted, alter or amend one or more of the federal tax matters described
herein in certain respects or would adversely affect the market value of the Bonds. It cannot be predicted whether or in
what forms any of such proposals that may be introduced, may be enacted and there can be no assurance that such
proposals will not apply to the Bonds. See “TAX EXEMPTION AND RELATED TAX MATTERS” herein.
Pension and Other Post-Employment Benefits (“OPEB”) Information: The City contributes to the Iowa Public
Employees’ Retirement System (“IPERS”), which is a state-wide multiple-employer cost-sharing defined benefit pension
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plan administered by the State of Iowa. IPERS provides retirement and death benefits which are established by State
statute to plan members and beneficiaries. All full-time employees of the Issuer not covered by MFPRSI (defined herein)
are required to participate in IPERS. IPERS plan members are required to contribute a percentage of their annual salary,
in addition to the Issuer being required to make monthly contributions to IPERS. Contribution amounts are set by State
statute. The IPERS Actuarial Valuation Report as of June 30, 2025 indicates the funded ratio of IPERS was 92.17%, and
the unfunded actuarial liability was $3.841 billion. The Annual Comprehensive Financial Report for its Fiscal Year ended
June 30, 2025 (the “IPERS ACFR”) identifies the IPERS net pension liability/(asset) at June 30, 2025, at approximately
$2.323 billion (market value), while its net pension liability/(asset) at June 30, 2024 was approximately $3.641 billion
(market value). The IPERS ACFR is available on the IPERS website, or by contacting IPERS at 7401 Register Drive,
Des Moines, IA 50321. See “APPENDIX C – JUNE 30, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT”
for additional information on IPERS. However, the information presented in such financial reports or on such websites
is not incorporated into this Preliminary Official Statement by any references.
Bond Counsel, Disclosure Counsel, the Municipal Advisor, the Underwriter and the City undertake no responsibility for
and make no representations as to the accuracy or completeness of the information available from the IPERS discussed
above or included on the IPERS website, including, but not limited to, updates of such information on the State Auditor’s
website or links to other internet sites accessed through the IPERS website.
In the Fiscal Year ended June 30, 2025, the City’s IPERS contribution totaled approximately $12,000,767. The City is
current in its obligations to IPERS.
At June 30, 2025, the City reported a liability of $13,258,124 for its proportionate share of the net pension liability. While
the City’s contributions to IPERS are controlled by state law, there can be no assurance the City will not be required by
changes in State law to increase its contribution requirement in the future, which may have the effect of negatively
impacting the finances of the City. See “EMPLOYEES AND PENSIONS” included in APPENDIX A to this Preliminary
Official Statement, and “JUNE 30, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT” included in
APPENDIX C to this Preliminary Official Statement for additional information on pension and liabilities of the City.
The City contributes to Municipal Fire and Police Retirement System of Iowa (“MFPRSI”), which is a multiple-employer
cost-sharing defined benefit pension plan for fire fighters and police officers, administered under Chapter 411 of the Code
of Iowa. MFPRSI plan members are required to contribute a percentage of their annual salary, in addition to the City
being required to make annual contributions to MFPRSI. Contribution amounts are set by State statute. The MFPRSI
Actuarial Valuation Report indicates that as of July 1, 2025, the date of the most recent actuarial valuation for MFPRSI,
the funded ratio of MFPRSI was 85.42%, and the unfunded actuarial liability was $603.8 million. The MFPRSI Financial
Statements for its Fiscal Year ended June 30, 2025 (the “MFPRSI Report”) identifies the MFPRSI Net Pension Liability at June
30, 2025, at approximately $645.6 million (market value), while its net pension liability at June 30, 2024 was
approximately $660.8 million (market value). The MFPRSI Report is available on the MFPRSI website.
See “EMPLOYEES AND PENSIONS” included in APPENDIX A to this Preliminary Official Statement, and “JUNE 30,
2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT” included in APPENDIX C to this Preliminary Official
Statement for additional information on MFPRSI.
In the Fiscal Year ended June 30, 2025, the City’s MFPRSI contribution totaled approximately $2,225,933. The City is
current in its obligations to MFPRSI.
At June 30, 2025, the City reported a liability of $16,454,725 for its proportionate share of the net pension liability. While
the City’s contributions to MFPRSI are controlled by state law, there can be no assurance the City will not be required by
changes in State law to increase its contribution requirement in the future, which may have the effect of negatively
impacting the finances of the City. See “EMPLOYEES AND PENSIONS” included in APPENDIX A to this Preliminary
Official Statement, and “JUNE 30, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT” included in
APPENDIX C to this Preliminary Official Statement for additional information on pension and liabilities of the City.
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Bond Counsel, Disclosure Counsel, the Municipal Advisor, the Underwriter and the City undertake no responsibility for
and make no representations as to the accuracy or completeness of the information available from the MFPRSI discussed
above or included on the MFPRSI website, including, but not limited to, updates of such information on the State Auditor’s
website or links to other Internet sites accessed through the MFPRSI website.
The City provides health and dental care benefits for retirees and their beneficiaries through a single-employer, defined
benefit plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The
City has the authority to establish and amend benefit provisions of the plan. Participants must be age 55 or older, have
been employed by the City for the preceding four years, and be enrolled in a sponsored insurance plan at the time of
retirement. Retirees under age 65 pay the same premium for the medical, prescription drug, and dental benefits as active
employees, which results in an implicit rate subsidy and an OPEB liability. The contribution requirements of the City are
established and may be amended by the City. Plan members are currently not required to contribute. The City funds on
a pay-as-you-go basis. At June 30, 2024, 601 active employees and 20 inactive employees or beneficiaries were covered
by the City's benefit terms. The City's total OPEB liability of $4,945,916 was measured as of June 30, 2025 and was
determined by an actuarial valuation as June 30, 2024. For additional information, see “OTHER POST-EMPLOYMENT
BENEFITS” included in APPENDIX A to this Preliminary Official Statement, and “JUNE 30, 2025 ANNUAL
COMPREHENSIVE FINANCIAL REPORT” included in APPENDIX C to this Preliminary Official Statement.
Summary: The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Bonds.
In order for potential investors to identify risk factors and make an informed investment decision, potential investors
should become thoroughly familiar with this entire Preliminary Official Statement and the appendices hereto.
RATING
The Bonds have been rated ‘___’ by Moody’s. Currently, Moody’s rates the City’s outstanding General Obligation long-
term debt ‘Aa1’. The existing rating on long-term debt reflects only the view of the rating agency and any explanation of
the significance of such rating may only be obtained from Moody’s. The ratings described above are not recommendations
to buy, sell or hold the Bonds. There is no assurance that any such rating will continue for any period of time or that it
will not be revised downward or withdrawn entirely if, in the judgment of Moody’s, circumstances so warrant. Therefore,
after the date hereof, investors should not assume that the ratings are still in effect. A downward revision or withdrawal
of either rating is likely to have an adverse effect on the market price and marketability of the Bonds. The City has not
assumed any responsibility either to notify the owners of the Bonds of any proposed change in or withdrawal of any rating
subsequent to the date of this Preliminary Official Statement, except in connection with the reporting of events as provided
in the Continuing Disclosure Certificate, or to contest any revision or withdrawal.
MUNICIPAL ADVISOR
The City has retained PFM Financial Advisors LLC, Des Moines, Iowa as Municipal Advisor in connection with the
preparation of the issuance of the Bonds. In preparing the Preliminary Official Statement, the Municipal Advisor has
relied on government officials and other sources to provide accurate information for disclosure purposes. The Municipal
Advisor is not obligated to undertake, and has not undertaken, an independent verification of the accuracy, completeness
or fairness of the information contained in this Preliminary Official Statement. PFM Financial Advisors LLC is an
independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities
or other public securities.
UNDERWRITING
The Bonds are being purchased, subject to certain conditions, by __________________ (the “Underwriter”). The
Underwriter has agreed, subject to certain conditions, to purchase all, but not less than all, of the Bonds at an aggregate
purchase price of $_________ (reflecting the par amount of the Bonds with original issue premium of $_________ and
an underwriter’s discount of $_________).
The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into unit
investment trusts, certain of which may be sponsored or managed by the Underwriter) at prices lower than the initial
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public offering prices stated on the cover page. The initial public offering prices of the Bonds may be changed, from time
to time, by the Underwriter.
The Underwriter intends to engage in secondary market trading of the Bonds subject to applicable securities laws. The
Underwriter is not obligated, however, to repurchase any of the Bonds at the request of the holder thereof.
CONTINUING DISCLOSURE
The City will covenant in a Continuing Disclosure Certificate for the benefit of the owners and beneficial owners of the
Bonds to provide annually certain financial information and operating data relating to the City (the “Annual Report”), and
to provide notices of the occurrence of certain enumerated events. The Annual Report is to be filed by the City no later
than June 30 after the close of each fiscal year, commencing with the fiscal year ending June 30, 2026, with the Municipal
Securities Rulemaking Board, at its internet repository named “Electronic Municipal Market Access” (“EMMA”). The
notices of events, if any, are also to be filed with EMMA. See “FORM OF CONTINUING DISCLOSURE
CERTIFICATE” included in APPENDIX D to this Preliminary Official Statement The specific nature of the information
to be contained in the Annual Report or the notices of events, and the manner in which such materials are to be filed, are
summarized in the “FORM OF CONTINUING DISCLOSURE CERTIFICATE.” These covenants have been made in
order to assist the Underwriter in complying with SEC Rule 15c2-12(b)(5) (the “Rule”).
During the previous five years, the City has not failed to comply, in all material respects, with any previous undertakings
it has entered into with respect to the Rule.
Regarding the Mary Greeley Medical Center (the “Medical Center”), the Annual Financial Information and Operating
Data Report for the Fiscal Year ending June 30, 2021 was not timely filed.
Breach of the undertakings will not constitute a default or an “Event of Default” under the Bonds or the Resolution. A
broker or dealer is to consider a known breach of the undertakings, however, before recommending the purchase or sale
of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the undertakings may adversely
affect the transferability and liquidity of the Bonds and their market price.
FINANCIAL STATEMENTS
The City’s “JUNE 30, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT”, as prepared by City management
and audited by a certified public accountant, is reproduced as APPENDIX C. The City’s certified public accountant has
not consented to distribution of the audited financial statements and has not been engaged to perform, and has not
performed, any procedures on the financial statements after June 30, 2025, and also has not performed any procedures
relating to this Official Statement. Further information regarding financial performance and copies of the City’s prior
Annual Comprehensive Financial Report may be obtained from PFM Financial Advisors LLC.
MISCELLANEOUS
Brief descriptions or summaries of the Issuer, the Bonds, the Resolution and other documents, agreements and statutes
are included in this Official Statement. The summaries or references herein to the Bonds, the Resolution and other
documents, agreements and statutes referred to herein, and the description of the Bonds included herein, do not purport
to be comprehensive or definitive, and such summaries, references and descriptions are qualified in their entireties by
reference to such documents, and the description herein of the Bonds is qualified in its entirety by reference to the form
thereof and the information with respect thereto included in the aforesaid documents. Copies of such documents may be
obtained from the Issuer.
Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so stated,
are intended as such and not as representations of fact, and no representation is made that any of the estimates will be
realized. This Official Statement is not to be construed as a contract or agreement between the Issuer and the purchasers
or Owners of any of the Bonds.
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The attached APPENDICES A, B, C and D are integral parts of this Official Statement and must be read together with all
of the foregoing statements.
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such
numbers on any Bonds nor any error in the printing of such numbers shall constitute cause for a failure or refusal by the
purchaser thereof to accept delivery of and pay for any Bonds.
The Issuer has reviewed the information contained herein which relates to it and has approved all such information for
use within this Official Statement. The execution and delivery of this Official Statement has been duly authorized by the
Issuer.
CITY OF AMES, IOWA
Roger Wisecup, City Treasurer
37
APPENDIX A
GENERAL INFORMATION ABOUT THE CITY OF AMES, IOWA
The $44,320,000* GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2026C (the “Bonds”) are
general obligations of the City of Ames, Iowa (the “City”) for which the City will pledge its power to levy direct ad
valorem taxes against all taxable property within the City without limitation as to rate or amount to the repayment of the
Bonds.
* Preliminary, subject to change.
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A-1
CITY PROPERTY VALUATIONS
IOWA PROPERTY VALUATIONS
In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs the county auditors
to apply prescribed statutory percentages to the assessments of certain categories of real property. The 2025 final Actual
Values were adjusted by the Story County Auditor. The reduced values, determined after the application of rollback
percentages, are the taxable values subject to tax levy. For assessment year 2025 (applicable to fiscal year 2026-27), the
taxable value rollback rate is 44.5345% of actual value for residential property; 59.4401% of actual value for agricultural
property and 100.0000% of the actual value of utility property. The residential taxable rollback rate of 44.5345% would
apply to the value of each property unit of commercial, industrial and railroad property that exceeds zero dollars ($0), but
does not exceed one hundred fifty thousand dollars ($150,000) with a taxable value rollback rate of 90.0000% to the value
that exceeds one hundred fifty thousand dollars ($150,000). No adjustment was ordered for utility property because its
assessed value did not increase enough to qualify for reduction. Utility property is limited to an 8% annual growth.
The Legislature’s intent has been to limit the growth of statewide taxable valuations for the specific classes of property to
3% annually. Political subdivisions whose taxable values are thus reduced or are unusually low in growth are allowed to
appeal the valuations to the State Appeal Board, in order to continue to fund present services. See “PROPERTY TAX
LEGISLATION” herein for a discussion on recent legislative revisions to the administration of certain property taxes in
Iowa.
PROPERTY VALUATIONS (1/1/2025 Valuations for Taxes Payable July 1, 2026 through June 30, 2027)
100% Actual Value
Taxable Value
(With Rollback)
Residential $5,655,567,600 $2,518,678,527
Commercial 1,332,650,700 1,145,130,194
Industrial 229,986,703 203,400,352
Railroads 13,247,028 11,912,466
Utilities w/o Gas & Electric 4,436,589 4,347,857
Gross valuation $7,235,888,620 $3,883,469,396
Less exemptions 1) (21,561,020) (21,561,020)
Net valuation $7,214,327,600 $3,861,908,376
TIF Increment $36,468,197 $34,194,488
Taxed separately
Ag. Land & Building
$7,456,200 2)
$4,427,974 2)
Gas & Electric Utilities $37,842,396 $8,965,250
1) Includes both Military and Homestead Exemptions.
2) Reduced by $4,000 of Military Tax Exemption.
2025 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY 1)
Taxable Valuation Percent of Total
Residential $2,518,678,527 64.71%
Gas & Electric Utilities 8,965,250 0.23%
Commercial, Industrial, Railroads, Utility 1,364,790,869 35.06%
Total Gross Taxable Valuation $3,892,434,646 100.00%
1) Excludes Taxable TIF Increment and Ag. Land & Buildings.
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A-2
TREND OF VALUATIONS
Assessment
Yea
Payable
Fiscal Yea
100%
Actual Valuation
Taxable Valuation
(With Rollback)
Taxable
TIF Incremen
2021 2022-23 $5,516,177,632 $3,399,701,391 $57,260,674
2022 2023-24 5,545,568,538 3,406,697,589 17,675,578
2023 2024-25 6,566,910,557 3,564,175,150 16,426,500
2024 2025-26 6,636,609,831 3,656,669,644 22,973,002
2025 2026-27 7,296,090,393 3,870,873,626 34,194,488
The 100% Actual Valuation, before rollback and after the reduction of exemptions, includes Ag. Land & Buildings, TIF
Increment and Gas & Electric Utilities. The Taxable Valuation, with the rollback and after the reduction of exemptions,
includes Gas & Electric Utilities and excludes Ag. Land & Buildings and Taxable TIF Increment. Iowa cities certify
operating levies against Taxable Valuation excluding Taxable TIF Increment and debt service levies are certified against
Taxable Valuation including the Taxable TIF Increment.
LARGER TAXPAYERS
Set forth in the following table are the persons or entities which represent larger taxpayers within the boundaries of the
City, as provided by the Story County Auditor’s office. No independent investigation has been made of and no
representation is made herein as to the financial condition of any of the taxpayers listed below or that such taxpayers will
continue to maintain their status as major taxpayers in the City. With the exception of the electric and natural gas provider
noted below (which is subject to an excise tax in accordance with Iowa Code chapter 437A), the City’s mill levy is
uniformly applicable to all of the properties included in the table, and thus taxes expected to be received by the City from
such taxpayers will be in proportion to the assessed valuations of the properties. The total tax bill for each of the properties
is dependent upon the mill levies of the other taxing entities which overlap the properties.
Taxpaye 1)
Type of Property/Business
1/1/2025 2)
Taxable Valuation
Iowa State University Research Park Commercial $61,156,618
Barilla America Inc. Industrial 58,002,869
Clinic Building Company Inc. Commercial 36,615,122
Spirit Realty LP Commercial 31,970,564
FPA6 University West LLC Commercial 27,052,718
Bricktowne Ames LC Commercial 25,481,575
Dayton Park LLC Commercial 22,669,040
Walmart Inc. Store 4256-00 Commercial 22,365,292
GW Land Holdings LLC Commercial 20,439,530
Menard Inc. Commercial 20,085,411
1) This list represents some of the larger taxpayers in the City, not necessarily the 10 largest taxpayers.
2) The January 1, 2025 Taxable valuations listed represents only those valuations associated with the title holder and may not
necessarily represent the entire taxable valuation.
Source: Story County Auditor
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A-3
CITY INDEBTEDNESS
DEBT LIMIT
Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county,
municipality or other political subdivision to no more than 5% of the Actual Value of all taxable property within the
corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2025 Actual
Valuation currently applicable to the Fiscal Year 2026-27, is as follows:
2025 Gross Actual Valuation of Property $7,296,090,393 1)
Legal Debt Limit of 5% 0.05
Legal Debt Limi $364,804,520
Less: G.O. Debt Subject to Debt Limi (120,230,000) *
Less: Other Debt Subject to Debt Limi (795,000) 2)
Net Debt Limi $243,779,520 *
1) Actual Valuation of property as reported by the Iowa Department of Management for the Fiscal Year 2026-27.
2) Other Debt Subject to Debt Limit includes TIF rebate agreement payments appropriated for Fiscal Year 2026-27.
DIRECT DEBT
General Obligation Debt Paid by Taxes and Other Sources 1) (Includes the Bonds)
Date
of Issue
Original
Amoun
Purpose
Final
Maturity
Principal
Outstanding
As of 9/15/2026
9/15A 18,445,000 Corporate Purpose Improvements & Refunding 6/35 $1,750,000
9/16A 11,650,000 Corporate Purpose Improvements & Refunding 6/28 1,670,000
9/17A 10,975,000 Corporate Purpose Improvements & Refunding 6/29 2,005,000
9/18A 7,490,000 Corporate Purpose Improvements 6/30 2,900,000
9/19A 10,775,000 Corporate Purpose Improvements 6/31 4,775,000
9/20A 17,865,000 Corporate Purpose Improvements & Refunding 6/32 6,695,000
9/21A 19,640,000 Corporate Purpose Improvements & Refunding 6/33 10,720,000
11/22A 12,440,000 Corporate Purpose Improvements 6/34 8,745,000
11/23D 12,110,000 Corporate Purpose Improvements 6/35 9,400,000
9/24A 17,495,000 Corporate Purpose Improvements 6/44 15,885,000
10/25A 12,530,000 Corporate Purpose Improvements 6/37 11,365,000
9/26C 44,320,000* Corporate Purpose Improvements 6/46 44,320,000 *
Total $120,230,000 *
1) The City’s general obligation debt is abated by tax increment reimbursements, water revenues, sewer revenues, airport revenues,
resource recovery revenues and special assessments.
* Preliminary; subject to change.
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A-4
Annual Fiscal Year Debt Service Payments (Includes the Bonds)
Existing Deb The Bonds Total Outstanding
Fiscal
Yea
Principal
Principal
and Interes
Principal*
Principal
and Interes *
Principal*
Principal
and Interes *
2026-27 $10,070,000 $13,096,006 $1,095,000 $2,515,942 $11,165,000 $15,611,948
2027-28 9,195,000 11,793,656 1,380,000 3,323,450 10,575,000 15,117,106
2028-29 8,655,000 10,924,581 1,890,000 3,764,450 10,545,000 14,689,031
2029-30 8,310,000 10,226,831 2,230,000 4,009,950 10,540,000 14,236,781
2030-31 7,845,000 9,448,131 2,345,000 4,013,450 10,190,000 13,461,581
2031-32 7,105,000 8,444,494 2,465,000 4,016,200 9,570,000 12,460,694
2032-33 5,330,000 6,412,575 2,585,000 4,012,950 7,915,000 10,425,525
2033-34 4,575,000 5,426,150 2,710,000 4,008,700 7,285,000 9,434,850
2034-35 3,450,000 4,086,350 2,850,000 4,013,200 6,300,000 8,099,550
2035-36 2,230,000 2,694,900 2,990,000 4,010,700 5,220,000 6,705,600
2036-37 2,150,000 2,515,800 3,140,000 4,011,200 5,290,000 6,527,000
2037-38 885,000 1,164,800 3,270,000 4,015,600 4,155,000 5,180,400
2038-39 920,000 1,164,400 1,670,000 2,284,800 2,590,000 3,449,200
2039-40 960,000 1,167,600 1,735,000 2,283,000 2,695,000 3,450,600
2040-41 995,000 1,164,200 1,800,000 2,278,600 2,795,000 3,442,800
2041-42 1,035,000 1,164,400 1,880,000 2,286,600 2,915,000 3,451,000
2042-43 1,080,000 1,168,000 1,950,000 2,281,400 3,030,000 3,449,400
2043-44 1,120,000 1,164,800 2,030,000 2,283,400 3,150,000 3,448,200
2044-45 2,110,000 2,282,200 2,110,000 2,282,200
2045-46 2,195,000 2,282,800 2,195,000 2,282,800
Total $75,910,000 $44,320,000* $120,230,000*
* Preliminary; subject to change.
OTHER DEBT
Water Revenue Debt
The City has water revenue debt paid solely from the net revenues of the Water Utility as follows:
Date
of Issue
Original
Amoun Purpose
Final
Maturity
Principal
Outstanding
As of 9/15/2026
1/15 $61,482,339 1) Water Revenue Bonds (SRF) 6/37 $35,848,000
8/22 3,500,000 Water Revenue Bonds (SRF) 6/42 2,310,000
6/23C 12,161,000 Water Revenue Bonds (SRF) 6/43 10,878,000 2)
Total $49,036,000
1) Final loan amount is net of $6,598,621.20 forgiven on April 2, 2021.
2) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of
$8,281,258 based on draws through June 17, 2026.
.
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A-5
Sewer Revenue Debt
The City has sewer revenue debt paid solely from the net revenues of the Sewer Utility as follows:
Date
of Issue
Original
Amoun
Purpose
Final
Maturity
Principal
Outstanding
As of 9/15/2026
11/12 $2,474,250 Sewer Revenue Bonds (SRF) 6/33 $909,000
9/16 641,332 Sewer Revenue Bonds (SRF) 6/36 340,000
2/18-1 767,771 Sewer Revenue Bonds (SRF) 6/38 480,000
10/18-2 5,206,055 Sewer Revenue Bonds (SRF) 6/38 3,529,000
1/23-1 3,685,175 Sewer Revenue Bonds (SRF) 6/42 3,155,000
1/23-2 7,631,852 Taxable Sewer Revenue Bonds (SRF) 6/42 6,671,000
8/23-3 1,409,021 Sewer Revenue Bonds (SRF) 6/43 1,280,000
11/24 65,185,000 Sewer Revenue Bonds (SRF) 6/46 65,185,000 1)
10/25 337,000 Sewer Revenue Bonds (SRF) 6/42 317,000 2)
5/26A 2,100,000 Sewer Revenue Bonds (SRF) 6/46 2,100,000 3)
5/26B 5,700,000 Sewer Revenue Bonds (SRF) 6/46 5,700,000 4)
Total $89,666,000
1) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of
$43,056,495 based on draws through June 17, 2026.
2) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of
$312,000 based on draws through June 17, 2026.
3) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of $10,500
based on draws through June 17, 2026.
4) Based on preliminary debt service schedule established prior to final project draws. The City has an outstanding balance of $28,500
based on draws through June 17, 2026.
Electric Revenue Debt
The City has electric revenue debt paid solely from the net revenues of the Electric Utility as follows:
Date
of Issue
Original
Amoun
Purpose
Final
Maturity
Principal
Outstanding
As of 9/15/2026
12/15B $9,500,000 Electric Revenue Bonds 6/27 $940,000
Hospital Revenue Debt
The City has hospital revenue debt paid solely from the net revenues of Mary Greeley Medical Center as follows:
Date
of Issue
Original
Amoun
Purpose
Final
Maturity
Principal
Outstanding
As of 9/15/2026
06/16 $64,790,000 Mary Greeley Medical Center & Refunding 6/36 $46,670,000
11/19 35,000,000 Mary Greeley Medical Cente 6/34 20,340,000
Total $67,010,000
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A-6
OVERLAPPING DEBT
Taxing Distric
1/1/2025
Taxable Valuation 1)
Portion of
Taxable Valuation
Within the City
Percent
Applicable G.O. Deb 2)
City’s
Proportionate
Share
Story County $6,693,310,591 $3,909,496,088 58.41% $1,828,772 $1,068,186
Ames CSD 3,551,662,261 3,492,136,472 98.32% 52,935,000 52,045,692
Gilbert CSD 792,345,847 403,613,291 50.94% 38,460,000 19,591,524
Nevada CSD 673,266,520 1,388,182 0.21% 4,935,000 10,364
United CSD 482,491,945 12,358,143 2.56% 670,000 17,152
DMACC 75,013,582,571 3,909,496,088 5.21% 100,335,000 5,227,454
City’s share of total overlapping debt: $77,960,372
1) Taxable Valuation excludes military and homestead exemptions and includes Ag Land, Ag Buildings, all Utilities and TIF
Increment.
2) Includes general obligation bonds, PPEL notes, certificates of participation and new jobs training certificates.
DEBT RATIOS
G.O. Debt
Debt/Actual
Market Value
($7,296,090,393) 1)
Debt/66,427
Population 2)
Total General Obligation Deb $120,230,000* 1.65%* $1,809.96*
City’s Share of Overlapping Deb $77,960,372 1.07% $1,173.62
1) Based on the City’s 1/1/2025 100% Actual Valuation; includes Ag Land, Ag Buildings, all Utilities and TIF Increment.
2) Population based on the City’s 2020 U.S. Census.
* Preliminary; subject to change.
LEVIES AND TAX COLLECTIONS 1)
Fiscal Yea
Levy
Collected During
Collection Yea
Percent
Collected
2022-23 $33,548,230 $31,685,079 94.45%
2023-24 34,833,360 33,922,305 97.38%
2024-25 36,057,203 33,922,305 97.65%
2025-26 37,684,403 2) --------In Process of Collection--------
2026-27 39,802,320 2) --------In Process of Collection--------
Collections include delinquent taxes from all prior years. Taxes in Iowa are delinquent each October 1 and April 1 and a
late payment penalty of 1.5% per month of delinquency is enforced as of those dates. If delinquent taxes are not paid, the
property may be offered at the regular tax sale on the third Monday of June following the delinquency date. Purchasers
at the tax sale must pay an amount equal to the taxes, special assessments, interest and penalties due on the property and
funds so received are applied to taxes. A property owner may redeem from the regular tax sale but, failing redemption
within three years, the tax sale purchaser is entitled to a deed, which in general conveys the title free and clear of all liens
except future tax installments.
1) Source: The City’s Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2025.
2) Source: The City’s Adoption of Budget and Certification of City Taxes Form 85-811 for Fiscal Years 2025-26 and 2026-27.
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A-7
TAX RATES
FY 2021-22
$/$1,000
FY 2022-23
$/$1,000
FY 2023-24
$/$1,000
FY 2024-25
$/$1,000
FY 2025-26
$/$1,000
Story County 4.95627 4.50207 4.50196 4.41532 4.03184
Story County Hospital 0.87250 0.93350 0.93090 0.93090 0.99500
County Ag. Extension 0.07582 0.11527 0.11735 0.11259 0.11254
City of Ames 9.87363 9.82936 10.20097 10.09446 10.30432
City Assesso 0.38331 0.33790 0.35183 0.32228 0.30049
Ames Comm. School District 14.34470 14.28616 13.93640 14.00913 14.05780
Gilbert Comm. School District 17.20522 17.05730 16.80418 17.00785 17.99487
Nevada Comm. School District 14.91083 14.71344 14.69969 13.57043 13.94817
United Comm. School District 10.44720 9.76510 9.76371 9.69845 9.67843
Des Moines Area Comm. College 0.67789 0.69448 0.74410 0.75916 0.78046
State of Iowa 0.00260 0.00240 0.00180 0.00180 0.00000
Total Tax Rate:
Ames CSD Resident
31.18672
30.70114
30.78531
30.64564
30.58245
Gilbert CSD Residen 34.04724 33.47228 33.65309 33.64436 34.51952
Nevada CSD Resident 31.75285 31.12841 31.54860 30.20694 30.47282
United CSD Residen 27.28922 26.18008 26.61262 26.33496 26.20308
LEVY LIMITS
Pursuant to House File 718, which was signed into law on May 4, 2023, the City’s new adjusted city general fund levy
(“ACGFL”) for Fiscal Year 2025-26 was $6.38759. To control the growth of property taxes, the ACGFL is subject to
potential limitation or reduction by constraining growth each year depending on if certain growth triggers are met or
exceeded during the prior year. The levy limitation is only applicable Fiscal Year 2024-25 through Fiscal Year 2027-28.
Beginning in Fiscal Year 2028-29, the levy limitation ceases and the City will go to a $8.10 ACGFL maximum. Certain
levies like debt service, pensions, employee benefits and capital improvement reserve fund are not included in the new
ACGFL limitation. The City’s recent property valuation growth has often exceeded the new legislative caps. Assuming
the City exceeds the legislative caps in the future, the City’s general fund levies will lag its relative valuation growth. For
Fiscal Year 2025-26, the City’s non TIF tax valuation growth was 2.60% causing no change to the City’s property tax
revenue from the ACGFL. For Fiscal Year 2026-27, the City’s non TIF tax valuation growth was 5.86% causing the
City’s property tax revenue from the ACGFL to be reduced by 2% of its revenues. The City’s Budget for Fiscal Year
2026-27 accommodated this mitigation of tax revenue relative to its non-TIF tax valuation growth. Debt service levies
are not limited, rather the City is only subject to the aggregate constitutional debt limits.
On May 18, 2026, the Governor signed into law Iowa Senate File 2472 (“SF 2472”), which enacts comprehensive reforms
to Iowa's property tax system. SF 2472, among other things: (i) imposes growth-based caps limiting annual increases in
property tax levy rates, generally restricting levy growth to 102% of the prior year's certified property tax dollars exclusive
of New Valuation; (ii) restricts unassigned general fund reserves of certain local governments to 35% of budgeted general
fund expenditures; (iii) prohibits the issuance of bonds or other indebtedness payable from ad valorem property taxes to
fund general governmental operations; (iv) limits new urban renewal revenue division ordinances to a 23-year duration
and imposes a 60% cap on tax increment captures from existing unlimited-duration urban renewal areas after 20 years;
and (v) restructures the homestead credit program, replacing the existing credit with a new exemption of 10% of taxable
value per eligible homestead (minimum $5,500, maximum $20,000, indexed for inflation). SF 2472 takes effect in part
immediately upon enactment, with the majority of provisions applicable to fiscal years beginning on or after July 1, 2027.
See “DEBT LIMIT” under “CITY INDEBTEDNESS” included in APPENDIX A to this Preliminary Official Statement.
See “PROPERTY TAX LEGISLATION” included in APPENDIX A to this Preliminary Official Statement for a
discussion of revisions to the administration of the general fund levy beginning in Fiscal Year 2025-26. See also
“SECURITY AND SOURCE OF PAYMENT” herein.
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A-8
FUNDS ON HAND (CASH AND INVESTMENTS AS OF JUNE 30, 2026)
Governmental
General Fund $12,731,054.12
Debt Service Fund 4,945,482.59
Capital Projects Fund 32,533,456.74
Other Governmental Funds 31,606,427.02
Business-type
Mary Greeley Medical Cente $518,161,664.00
Electric Utility 45,029,637.90
Sewer Utility 28,510,976.08
Water Utility 25,051,464.60
Other Enterprise Funds 43,474,267.92
Internal Service Funds 33,257,062.18
Total all funds $775,301,493.15
GENERAL FUND BUDGETS (ACCRUAL BASIS)
The table below represents a comparison between the final Fiscal Year 2023-24 actual financial performance, the amended
Fiscal Year 2024-25 budget, and the adopted Fiscal Year 2025-26 budget on an accrual basis.
Actual
FY 2023-24
Amended
FY 2024-25
Adopted
FY 2025-26
Revenues:
Property taxes $23,467,362 $24,240,520 $25,503,450
Other City taxes 2,932,275 2,859,076 2,861,555
Licenses and permits 1,480,274 1,539,301 1,539,301
Use of money and property 2,465,817 1,167,913 928,118
Intergovernmental 3,285,843 3,293,315 3,287,824
Charges for fees and services 2,351,933 2,409,820 3,008,855
Miscellaneous 240,948 195,302 198,504
Transfers in 10,224,793 10,123,772 10,137,630
Proceeds of Capital Asset Sales - - -
Total revenues $46,449,245 $45,829,019 $47,465,237
Expenditures:
Public safety $21,247,451 $22,925,948 $24,298,049
Public works 1,177,531 1,117,274 1,176,129
Health and social services 0 12,000 0
Culture and recreation 9,452,811 10,208,497 11,235,798
Community & economic developmen 1,041,611 1,190,860 1,292,206
General governmen 3,133,888 4,049,898 3,690,201
Capital projects 1,101,324 3,642,631 180,000
Transfers ou 8,561,424 8,740,528 5,592,854
Total expenditures $45,716,040 $51,887,636 $47,465,237
Excess (deficiency) of revenues ove
(under) expenditures 733,205 (6,058,617) -
Fund balance at beginning of yea $16,229,557 $16,287,013 $10,229,903
Fund balance at end of yea $16,962,763 $10,228,396 $10,229,903
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A-9
THE CITY
CITY GOVERNMENT
The City of Ames, Iowa (the “City”) is governed under and operates under a Mayor-Council form of government with a
City Manager. The principle of this type of government is that the Council sets policy and the City Manager carries it
out. The six members of the Council are elected for staggered four-year terms. One member is elected from each of the
four wards and two are elected at large. The Council appoints the City Manager as well as the City Attorney. The City
Manager is the chief administrative officer of the City. The Mayor is elected for a four-year term, presides at Council
meetings and appoints members of various City boards, commissions and committees with the approval of the Council.
EMPLOYEES
The City currently has 1,432 full-time employees, of which 522 are governmental employees and 910 are employees of
the Mary Greeley Medical Center, and 1,308 part-time employees (including seasonal employees) of which 628 are
governmental employees and 680 are employees of the Mary Greeley Medical Center. Included in the City’s full-time
employees are 56 sworn police officers and 64 firefighters.
UNION CONTRACTS
City employees are represented by the following bargaining units:
Bargaining Unit Contract Expiration Date
International Association of Firefighters June 30, 2027
Public, Professional and Maintenance Employees June 30, 2027
International Union of Operating Engineers (Local 234C) June 30, 2028
International Union of Operating Engineers (Local 234D) June 30, 2028
INSURANCE
The City purchases insurance policies providing coverage for business needs including but not limited to general liability
including auto liability, wrongful acts, excess (over all other coverage except Iowa liquor liability), law enforcement,
public official, employee benefit, medical malpractice, underinsured motorist, and uninsured motorist; commercial
property including commercial property & boiler and machinery (power generation related), municipal properties & boiler
and machinery (non-power generation), and terrorism – TRIA (Federally defined terrorist acts); commercial property
flood insurance including non-flood plain facilities (power generation), non-flood plain facilities (non-power), flood plain
facilities including transit, water pollution control, airport and all other; airport liability; and cyber liability.
Source: The City
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GENERAL INFORMATION
LOCATION AND TRANSPORTATION
The City is located in Story County in central Iowa. It is approximately thirty miles north of Des Moines, Iowa, the State
capital and largest city in the state. The City is located on Interstate Highways 35 and 30. The City was incorporated in
1864 under the laws of the State of Iowa, later amended in July, 1975 under the Home Rule City Act.
The City, with a United States Census Bureau 2020 population of 66,427, is known for its excellent quality of life which
includes a relatively crime-free environment, an extensive park system, superior cultural/recreations facilities and a
nationally recognized school system. The City is the home of Iowa State University (“ISU”). ISU was established in
1859 and is an integral part of the community.
The City operates a mass transit system to provide efficient and economical transportation to all members of the
community. A fixed routing service is available on a daily basis to most residents and a Dial-A-Ride service is available
for elderly or handicapped residents. The City operates a municipal airport, which handles primarily charter services.
National air service is available at the Des Moines International Airport, approximately thirty miles south of the City.
The City is also provided freight services through the Union Pacific Railroad line.
LARGER EMPLOYERS
A representative list of larger employers in the City is as follows:
Employer Type of Business Number of Employees 1)
Iowa State University Higher Education 15,919 2)
Mary Greeley Medical Cente Health Care 1,590
Danfoss Corp. Hydro-Transmissions 1,180
City of Ames Municipal Governmen 1,150
Iowa Department of Transportation Public Transportation 975
USDA Federal Agency 700
McFarland Clinic, P.C. Health Care 675
Ames Community School District Education 700
Workiva Software 550
Ames Laboratories Federal Agency 415
1) Includes full-time, part-time and seasonal employees.
2) Source: Iowa State University Fact Book.
Source: The City
BUILDING PERMITS
Permits for the City are reported on a calendar year basis. City officials reported most recently available construction
activity for a portion of the current calendar year, as of June 30, 2026. The figures below include both new construction
and remodeling.
2022 2023 2024 2025 2026
Residential Construction:
Number of units: 402 457 426 428 235
Valuation: $33,826,621 $28,211,202 $37,258,746 $43,019,520 $29,597,599
Commercial Construction:
Number of units: 163 213 143 191 74
Valuation: $76,251,698 $161,910,873 $104,350,984 $99,731,101 $57,138,384
Total Permits 565 670 569 619 309
Total Valuations $110,078,319 $190,122,075 $141,609,730 $142,750,622 $86,735,983
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A-11
U.S. CENSUS DATA
Population Trend
Population Trend: 1980 U.S. Census 43,775
1990 U.S. Census 47,198
2000 U.S. Census 50,731
2010 U.S. Census 58,965
2020 U.S. Census 66,427
Source: U.S. Census Bureau
UNEMPLOYMENT RATES
City of Ames Story County State of Iowa
Annual Averages: 2022 2.3% 2.3% 2.9%
2023 2.3% 2.4% 3.0%
2024 2.4% 2.5% 3.2%
2025 2.8% 2.9% 3.5%
2026 (as of May) 2.7% 2.8% 3.2%
Source: U.S. Bureau of Labor Statistics
EDUCATION
Public education is provided by the Ames Community School District, with a fall 2025 certified enrollment of 4,468.9.
The district, with approximately 700 employees, owns and operates one early childhood center, five elementary schools,
one middle school, one high school and a facilities and maintenance building. Nevada Community School District, Gilbert
Community School District and United Community School District all lie partially within the City and provide public
education to portions of the City.
The Iowa State University (“ISU”) 2025 Fall enrollment was 31,105. ISU is the City’s largest employer with faculty and
staff totaling approximately 15,919, including teaching assistants and hourly part-time employees. ISU, in addition to its
educational function, is a leading agricultural research and experimental institution.
The Iowa State Center is the cultural center of ISU and the City. It attracts major dramatic and musical events, as well as
seminars and conferences to the City. It is a complex of three structures: two theaters with capacities of approximately
2,750 and 450, and a continuing education building with a 450-seat auditorium and 24 meeting rooms. Connected to this
complex are two of Iowa State University’s major Big 12 athletic venues: Jack Trice football stadium with a seating
capacity of 61,500 and Hilton Coliseum with capacity for approximately 15,000.
In addition to ISU located in the City, the following institutions provide higher education within 30 miles of the City:
Drake University, Grand View University, Des Moines University (formerly University of Osteopathic Medicine and
Health Services). Two-year degree programs are offered at Des Moines Area Community College, Upper Iowa
University, Vatterott College and Kaplan University (formerly Hamilton College).
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FINANCIAL SERVICES
Financial services for the residents of the City are provided by First National Bank Ames, Iowa and VisionBank of Iowa.
In addition, the City is served by branch offices of Availa Bank, BMO Bank N.A., Bankers Trust Company, Central State
Bank, Chase Bank, Exchange State Bank, First Interstate Bank, Midwest Heritage Bank F.S.B., Northwest Bank, South
Story Bank & Trust; TS Bank, US Bank, N.A., and Wells Fargo Bank, as well as by several credit unions.
First National Bank Ames and VisionBank of Iowa report the following deposits as of June 30 for each year:
Yea First National Bank Ames VisionBank of Iowa
2021 $952,731,000 $490,477,000
2022 978,988,000 486,110,000
2023 964,888,000 658,718,000
2024 935,488,000 701,572,000
2025 918,388,000 771,424,000
Source: Federal Deposit Insurance Corporation (FDIC)
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APPENDIX B
FORM OF BOND COUNSEL OPINION
51
APPENDIX C
JUNE 30, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT
52
APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
53
OFFICIAL BID FORM
To: City Council of Sale Date: August 25, 2026
City of Ames, Iowa 10:00 A.M., CT
RE: $44,320,000* General Obligation Corporate Purpose Bonds, Series 2026C (the “Bonds”)
This bid is a firm offer for the purchase of the Bonds identified in the “TERMS OF OFFERING” and on the terms set forth in this bid
form and “TERMS OF OFFERING”, and is not subject to any conditions, except as permitted by the “TERMS OF OFFERING”. By
submitting this bid, we confirm we have an established industry reputation for underwriting new issuance of municipal bonds.
For all or none of the above Bonds, in accordance with the “TERMS OF OFFERING”, we will pay you $________________ (not less
than $43,876,800) plus accrued interest to date of delivery for fully registered Bonds bearing interest rates and maturing in the stated
years as follows:
Coupon Maturity Yield Coupon Maturity Yield
2027 2037
2028 2038
2029 2039
2030 2040
2031 2041
2032 2042
2033 2043
2034 2044
2035 2045
2036 2046
* 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 $51,875,000. 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.
We hereby designate that the following Bonds to be aggregated into term bonds maturing on June 1 of the following years and in the
following amounts (leave blank if no term bonds are specified):
Years Aggregated Maturity Year Aggregate Amount
throu h
throu h
In making this offer we accept all of the terms and conditions of the “TERMS OF OFFERING” published in the Preliminary Official
Statement dated August __, 2026, and represent we are a bidder with an established industry reputation for underwriting new issuances
of municipal bonds. In the event of failure to deliver the Bonds in accordance with the “TERMS OF OFFERING” as printed in the
Preliminary Official Statement and made a part hereof, we reserve the right to withdraw our offer, whereupon the deposit accompanying
it will be immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made
the following computations:
NET INTEREST COST: $___________________________
TRUE INTEREST COST: ___________________________% (Based on dated date of September 15, 2026)
Account Manager: _________________________________ By: _________________________________________
Account Members: ______________________________________________________________________________
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Ames, Iowa this 25th day of August 2026.
Attest: By:
Title: Title:
54