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Bond Sale - America's River ProjectMEMORANDUM November 29, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Bond Sale to Support Amedca's River Project Components The sale of General Obligation Bonds to support Amen'ca's River Project Components will be held Monday, December 3, 2001, at 11:00 a.m. The results will be brought to the December 3 City Council meeting. MCVM/jh Attachment CC: Mich illigen' ~ Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pauline Joyce, Administrative Services Manager December 3 ,2001 The City Finance Director of Dubuque, Iowa, met in the City Hall, Dubuque, Iowa, at 11: 00 o'clock ~.M., on the above date, to open sealed bids received and to refer the sale of the Bonds to the best and most favorable bidder for cash, subject to approval by the Ci~ Council at 6:30 o'clock .__~_P.M. on the above date. The following persons were present: Michael Van Milligen, Kenneth TeKippe, Dawn Lang, Jeanne Schneider Dave Dirks and Jason Toomey -1- This being the time and place for the opening of bids for the sale of $9,500,000 General Obligation Bonds, Series 2001, the meeting was opened for the receipt of bids for the Bonds. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders: US Bancorp Piper Jaffray RBC Dain Rauscher, Inc. Harris Trust & Savigns Bank Morgan Stanley Dean Witter Stephens, Inc. Minneapolis, MN Chicago, IL Chicago, IL Chicago, IL Fayatteville, AK Whereupon the Finance Director declared the time for filing of sealed bids to be closed. Whereupon, the Finance Director declared the sealed bids be opened. The sealed bids were opened and the best sealed bid was as follows: Name&AddressofBidder: US Bancorp Piper Jaffray - Minneapolis, MN Net Interest 1Late: 4.6852% Net Interest Cost: $5,471,154.86 Whereupon, all bids were referred to the Council for action in accordance with the Notice of Sale. -2- December 3 ,2001 The City Council of Dubuque, Iowa, met in Regul ar session, in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at 6:30 o'clock P__.M., on the above date. There were present Mayor Terrance lq. Duggan , in the chair, and the following named Council Members: Roy Buol, Patricia Cline (electronically), John Markham, Ann Michalski, Dan Nicholson, Jo'e Robbins Absent: None -3- Council Member ~,~i c ha ] s k 5 introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF $9,500,000 GENERAL OBLIGATION BONDS, SERIES 2001" and moved its adoption. Council Member Ni cho] son seconded the motion to adopt. The roll was called and the vote was, AYES: Buol, Cline, Duggan, Markham, Michalski, Nicholson, Robbins NAYS: None Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION No. 519-01 RESOLUTION DIRECTING SALE OF $9,500,000 GENERAL OBLIGATION BONDS, SERIES 2001 WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the Bonds described as follows and the best bid received is determined to be the following: Bidder: US 8ancorp Piper Jaffray $9,500,000GENERALOBLIGATIONBONDS, SERIES 2001: of Minneapolis, MN the terms of said bid being: Purchase Price: $ 9, 405,000 Net Interest Rate: 4. 6852 Net Interest Cost $ 5,471,154.86 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: -4- Section 1. That the bid for the Bonds as above set out is hereby determined to be the best and most favorable bid received and, Said Bonds are hereby awarded based on said bid. Section 2. That the statement of information for Bond bidders and the form of contract for the sale of said Bonds are hereby approved and the Mayor and Clerk are authorized to execute the same on behalf of the City. Section 3. That the notice of the sale of the Bonds heretofore given and all acts of the Clerk and Finance Director done in furtherance of the sale of said Bonds are hereby ratified and approved. PASSED AND APPROVED, this __ ATTEST: 4th day of December ,2001. Mayor ~C~ty Clerk CIG-3 9/91 CERTIFICATE STATE OF IOWA COUNTY OF DUBUQUE ) ) ss ) I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a tree and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by said law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no Council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this 4th . day of December ~ 2001. (~4~ity Clerk, Dubuque, Iowa SEAL DCOP,.NELL~301755M \10422057 -6- December 3 ,2001 The City Finance Director of Dubuque, Iowa, met in the City Hall, Dubuque, Iowa, at 11: 00 o'clock A.M., on the above date, to open sealed bids received and to refer the sale of the Bonds to the best and most favorable bidder for cash, subject to approval by the City Council at 6:30 o'clock P.M. on the above date. The following persons were present: Michael Van Milligen, Kenneth TeKippe, Dawn Lang, Jeanne Schneider Dave Dirks, Jason Toomey -1- This being the time and place for the opening of bids for the sale of $2,860,000 General Obligation Bonds, Series 2002, the meeting was opened for the receipt of bids for the Bonds. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders: US Bancorp Piper Jaffray Minneapolis, MN Morgan Stanley Dean Witter Chicago, IL RBC Dain Rauscher, Inc, Chicago, IL Whereupon the Finance Director declared the time for filing of sealed bids to be closed. Whereupon, the Finance Director declared the sealed bids be opened. The sealed bids were opened and the best sealed bid was as follows: Name&AddressofBidder: US Bancorp Piper Oaffray, Minneapolis, ~qN Net Interest Rate: 4. 7251 Net Interest Cost: $1,612, 104.15 Whereupon, all bids were referred to the Council for action in accordance with the Notice of Sale. -2- December 3 ,2001 The City Council of Dubuque, Iowa, met in Regul ar session, in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor lerrance M. Duggan , in the chair, and the following named Council Members: Buol, Cline (electronically), Markham, Michalski, Nicholson, Robbins Absent: None -3- 'Council Member Mi cha I ski introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF $2,860,000 GENERAL OBLIGATION BONDS, SERIES 2002" and moved its adoption. Council Member Ni chol son seconded the motion to adopt. The roll was called and the vote was, AmS: Buol, Cline, Duggan, Markham, Michalski, Nicholson, Robbins NAYS: None Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION NO. 520-01 RESOLUTION DIRECTING SALE OF $2,860,000 GENERAL OBLIGATION BONDS, SERIES 2002 WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the Bonds described as follows and the best bid received is determined to be the following: $2,860,000 GENERAL OBLIGATION BONDS, SERIES 2002: Bidder: US Bancorp Piper Jaffray of Minneapolis, MN the terms of said bid being: Purchase Price: $ 2,831,400 Net Interest Rate: 4.7251 % Net Interest Cost $ 1,612, 104, 15 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: section I. That the bid for the Bonds as above set out is hereby determined to be the best a~.d most favorable bid received and, said Bonds are hereby awarded based on said bid. Section 2. That the statement 0finformation for Bond bidders and the form of contract for the sale of said Bonds are hereby approved and the Mayor and Clerk are authorized to execute the same on behalf of the City. Section 3. That the notice of the sale o£the Bonds heretofore given and all acts of the Clerk and Finance Director done in furtherance of the sale o£said Bonds are hereby ratified and approved. PASSED AND APPROVED, this ATTEST: ~C~ty Clerk 3rd day of December Mayor ~~~ ,2001. -5- CIG-3 9/91 CERTIFICATE STATE OF IOWA COUNTY OF DUBUQUE ) ) ss ) I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a tree and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local roles of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by said law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no Council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this 4~:h day of December ,2001. ~21~ty Clerk, Dubuque, Iowa SEAL DCORNELL~301754\I \I 0422057 -6- MEMORANDUM November 15, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Bond Sale to Support America's River Project Administrative Services Manager Pauline Joyce recommends the sale of twenty-year General Obligation Bonds to support the America's River project in the amount of $12,360,000, and that a public hearing be set for December 3, 2001. The Vision Iowa Board made their $40 million grant contingent on the entire project being built and the City issuing $12,360,000 in debt. The public hearing for the issuance of the General Obligation Bonds was held May 7, 2001. The $12,360,000 for the America's River project can be sold as essential corporate purpose General Obligation Bonds. The debt will be paid with a combination of tax increment financing and gaming revenues, with no property tax increase. I concur With the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pauline Joyce, Administrative Services Manager CITY OF DUBUQUE, IOWA MEMORANDUM November 15, 2001 TO: FROM: SUBJECT: Michael C. Van Milligen, City Manager Pauline Joyce, Administrative Services Manager Bond Sale to Support America's River Project The purpose of this memorandum is to recommend the sale of twenty year General Obligation Bonds to support the America's River Project in the amount of $12,360,000. The Vision Iowa Board made their $40 million grant contingent on the entire project being built and the City issuing $12,360,000 in debt. The public hearing for the issuance of the General Obligation Bonds was held May 7, 2001. The $12,360,000 for the America's River Project can be sold as essential corporate purpose General Obligation Bonds. The debt will be paid with a combination of tax increment financing and gaming revenues, with no property tax increase. The bonds will be issued with two series. One series will close on or about December 27, 2001 in the amount of $9,500,000 which will provide for bank qualification. The second series in the amount of $2,860,000 will close on or about January 9, 2002 and will also be bank qualified. Bank qualified bonds should provide more favorable interest rates for the City. The requested action steps for City Council are: (1) to adopt the attached resolution fixing the date for December 3, 2001 for a meeting on the proposition of selling $9,500,000 in General Obligation Bonds (for an essential corporate purpose) of Dubuque, Iowa, closing on the bonds will be on or about December 27, 2001, and providing for publication of notice thereof; and (2) to adopt the attached resolution fixing the date for December 3, 2001 for a meeting on the proposition of selling $2,860,000 in General Obligation Bonds (for an essential corporate purpose) of Dubuque, Iowa, closing on the bonds will be on or about January 9, 2002, and providing for publication of notice thereof. cc: Ken TeKippe, Finance Director · AItLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. ATTORNEYS AT LAW KENNETH H~ HAYNIE WILLIAM J. NOTH STEVEN L SERCK OF COUNSEL JOHN F. MCKIN NEY, IR. DAVID SW[NTON 5TEVEN M. NADEL PAUL F. AHLERS 100 COURT AVENUE, RICHARD G. SANTI LINDA L. KNIEP ELIZABETH A. GROB H. RICHARD SMITH EDGAR H. B~fLE JOHN D. HINTZE JENNIFER A. CLENDENIN ROBERT G. ALLBEE SUITE 600 RONALD L SUTPHIN PETER PASHLER PATRICIA A, WESTEMEYER DOUGLAS R. SMITH DES MOiNES, IOWA LANCE A. COPPOCK [VAN T, WEBBER NATHAN J. OV£RBERG 50309-2231 DAV[D H. LUGINglLL )ANE B. MCALLISTER DANIE LLE J. LATHAM November 15, 2001 Ms. Pauline J. Joyce Director of Administrative Services City of Dubuque 50 W. 13th Street Dubuque, Iowa 52001 RE: $9,500,000 General Obligation Bonds, Series 2001 $2,860,000 General Obligation Bonds, Series 2002 Dear Ms. Joyce: With this letter I am enclosing two resolutions directing the advertisement of the above Bonds for sale, and the forms of Notice of Sale. The Notices of Bond Sale must be published at least one time. The sale may be held at any time; but not less than four nor more than twenty days following the date of the last publication. An extra copy-of each Notice is enclosed for use by the newspaper. Extra copies of the proceedings are enclosed to be filled in as the original and certified back to this office, together with publisher's affidavit covering publication of the Notices of Bond Sale. A certificate to attest the proceedings is also enclosed. If any questions arise, please keep me advised. Yours very truly, WJN:dc encl. cc: Ken Te Kippe (w/encl.) Barry Lindahl (w/encl.) David Dirks (w/encl.) DCORNELL~300SS 1\I\104422057 William J. Noth FOR THE FIRM AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. ATTORNEYS AT LAW 100 COURT AVENUE, SUITE 600 DES MOiNES, IOWA 50309-2231 htlp:ZA~nvw.ah]erslaw.com TELEPHONE 515-243 7611 TELECOPIER 515-243-2149 November 15, 2001 Ms. Pauline J. Joyce Director of Administrative Services City of Dubuque 50 W. 13th Street Dubuque, Iowa 52001 RE: $9,500,000 General Obligation Bonds, Series 2001 $2,860,000 General Obligation Bonds, Series 2002 Dear Ms. Joyce: With this letter I am enclosing two resolutions directing the advertisement of the above Bonds for sale, and the forms of Notice of Sale. The Notices of Bond Sale must be published at least one time. The sale may be held at any time; but not less than four nor more than twenty days following the date of the last publication. An extra copy of each Notice is enclosed for use by the newspaper. Extra copies of the proceedings are enclosed to be filled in as the original and certified back to this office, together with publisher's affidavit covering publication of the Notices of Bond Sale. A certificate to attest the proceedings is also enclosed. If any questions arise, please keep me advised. Yours very truly, William J. Noth FOR THE FIRM WJN:dc encl. CC: Ken Te Kippe (w/encl.) Barry Lindahl (w/encl.) David Dirks (w/encl.) BCORNELL~300881 \1\104422057 MEMORANDUM November 29, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Bond Sale to Support America's River Project Components The sale of General Obligation Bonds to support America's River Project Components will be held Monday, December 3, 2001, at 11:00 a.m. The results will be brought to the December 3 City Council meeting. Mich/a~ i~C Van~Mi,~ '/~J~ MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pauline Joyce, Administrative Services Manager City Clerk's Office c~y HaU 50 West 13ffi Sb'eet Dubuque, Iowa 520014864 (563) 589-4120 office (563) 589-0890 fax ctyde~k~ityofdubuque.org December 4, 2001 Bill Noth Attorney-at-Law 100 Court Avenue, Suite 600 Des Moines IA 50309-2231 RE: City of Dubuque, Iowa $9,500,000 General Obligation Bonds, Series 2001 $2,860,000 General Obligation Bonds, Series 2002 Dear Bill: Enclosed find the executed documents regarding the issuance of the $9,500,000 and $2,860,000 General Obligation Bonds. Included are: 1. Notice and call of Public Meeting (November 19, 2001) with attached agenda. 2. Certified copy of Resolution #499-01 and Resolution #500-01 Directing the advertisement for sale. 3. Notice of Bond Sale with publisher's affidavit attached. 4. Notice and call of Public Meeting (December 3, 2001) with attached agenda. 5. Certified copy of Resolution #519-01 and Resolution #520-01 Directing sale. Hopefully, everything is in order. Please contact me if I have missed anything or there are any problems wEh the attached. Sincerely, Jeanne F. Schneider City Clerk CC: Pauline Joyce, Administrative Services Manager Ken TeKippe, Finance Director MEMORANDUM November 30, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Bond Sale to Support America's River Project Components This is to advise that the general obligation bond sale is Monday, December 3, at 11:00 a.m. We will be bringing the results and a recommendation to the City Council meeting. Attached is the official statement being used for the issuance of the bonds. You will see from the attached correspondence from Moody's that the City has retained the enviable Aa3 rating. Micl~ael'~. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pauline Joyce, Administrative Services Manager MOODY'S ASSIGNS Aa3 RATING TO THE CITY OF DUBUQUE (IA) G.O. BONDS, SERIES 2001 AND SERIES 2002 $24.8 MILLION OF DEBT AFFECTED Dubuque (City of) IA Municipality Iowa Moody's Rating Issue Rating General Obligation Bonds, Sale Amount Expected Sale Date Rating Description Series 2001 $9,500,000 12/03/01 General Obligation Unlimited Tax Aa3 General Obligation Bonds, Sale Amount Expected Sale Date Rating Description Series 2002 $2,860,000 12/03/01 General Obligation Unlimited Tax Aa3 NEW YORK, November 30, 2001 -- Moody's Investors Service assigns a Aa3 rating, with a stable outlook, to the City of Dubuque, Iowa's $9,500,000 General Obligation Bonds, Sedes 2001 and $2,860,000 General Obligation Bonds, Series 2002. At this time, we also affirm the Aa3 rating on the city's $12.4 million in general obligation padty debt. The bonds, which are secured by the general obligation, unlimited tax pledge of the city, will be used to finance vadous projects related to the Mississippi River National Education and Conference Center, and public improvements in the Port of Dubuque. The Aa3 rating reflects the city's moderate tax base growth, sound financial operations, as well as a below average level of rapidly retired debt. STABLE, DIVERSE LOCAL ECONOMY; AMERICA'S RIVER PROJECT EXPECTED TO DRIVE NEAR-TERM GROW'FH Moody's anticipates that the city's tax base will continue to grow at a moderate rate, despite residential rollbacks and the phaseout of machinery and equipment, due to ongoing construction in the commercial and residential sectors, including the America's River Project. Located on the Mississippi River in northeast Iowa, near the Iowa- Illinois- Wisconsin border, Dubuque serves as the trade and service center for a large tri-state region. The city has important manufacturing, institutional and tourism sectors; tourism is expected to be augmented through the America's River Project. Full valuation of the city has increased at an annual average rate of 3.5% over the last five years while the city's taxable value has increased at 2.5% due to residential rollbacks and the phaseout of machinery and equipment, which limit the amount of property values eligible for taxation. Moody's believes that the rollbacks and phaseout will not significantly impact the city's property tax base due to new growth in the commercial, residential and industrial sectors. Wealth indices approximate state averages and include a full value per capita of $37,065. The September 2001 Dubuque County unemployment rate of 4.2% was above the state average. Future growth of the city's tax base is expected to be aided by the development of the America's River project. The project seeks further major development of the city's dverfront along the Mississippi River. The total project cost is $118 million and will be funded by a combination of private sources, state and federal grants, pay-go financing, and the current bond issue. Upon completion, the development will include a 700,000 square-foot interpretive museum, an 18-mile bike/hike trail system, and a 1,000 person public amphitheater. In addition, the developments will be supported by a new $22 million hotel with an indoor water park as well as a new multi-million office building for Durrant Architects. Moody's believes that the developments are likely to spur additional toudst and economic activity, despite a national economic slowdown, given an expected regional draw rather than a dependency on visitors ardving by air travel. SOUND FINANCIAL OPERATIONS WITH HEALTHY RESERVES Moody's believes that the city's financial position will remain sound given prudent fiscal management. The city experienced large operating surpluses in the past three fiscal years, mostly due to increases in gaming revenues. In addition to steady rent payments from the gaming concerns, the city also receives payments that are tied to the business's profits. In FY 2000, the city received just under $8.3 million, accounting for 23.9% of General Fund revenues. Concern of dependence on this vulnerable revenue stream is mitigated in that approximately 88% of these monies are devoted to capital projects. In addition to the strong growth in gaming revenues, tight expenditure control has also allowed the city to build its General Fund reserve to a level of $19.2 million or 55.6% of General Fund revenues, of which almost $15 million is undesignated. Although the city is taxing at its General Fund levy limit of $8.10, it has some revenue raising flexibility in that approximately 1.71 mills currently covered by the levy can be taxed outside the limit. Moody's believes that the maintenance of a strong General Fund balance helps to offset the vulnerability of swings in vadable gaming revenues and enhances the limitation on financial flexibility posed by tax rate caps, and thus will remain a key factor in future analyses. LOW DEBT BURDEN WITH AVERAGE PAYOUT; LACK OF FUTURE BORROWING The overall debt burden is Iow at 1.5%, as the city has been an infrequent debt issuer. Direct debt burden is slightly below average, also at 1.5%, primarily as a result of the current issue. Water and sewer revenues, parking fees and tax increment financing distdct revenues all contribute to debt service, mitigating the impact on the general property tax levy. The city's general obligation debt is scheduled for approximately average payout with 45.9% of principal retired within ten years. City administration does not anticipate the issuance of a substantial amount of additional debt in the near-term. KEY STATISTICS 2000 population: 57,686 FY 2001 full valuation: $2.1 billion FY 2001 full value per capita: 37,065 Debt burden: 1.5% Retirement of principal (10 years): 45.6% FY 2000 Undesignated General Fund balance: $14.96 million (43.3% of General Fund revenues) ANALYSTS: Patrick Williams, Analyst, Public Finance Group, Moody's Investors Service Iliana Pappas, Backup Analyst, Public Finance Group, Moody's Investors Service James Mintzer, Senior Credit Officer, Public Finance Group, Moody's Investors Service CONTACTS: Journalists: (212) 553-0376 Research Clients: (212) 553-1625 NEW ISSUES: FULL BOOK-ENTRY OFFICIAl, STATEMENT $9,500,000 General Obligation Bonds, Series 2001 (the "Series 2001 Bonds") and $2,860,000 General Obligation Bonds, Series 2002 (the "Series 2002 Bonds") (Both issues collectively referred to as the "Obligations") City of Dubuque, Iowa BIDS RECEIVED: BIDS CONSIDERED: Monday, December 3, 2001 until 11:00 A.M. Central Time City Hall 50 West Thirteenth Street Dubuque, Iowa 52001-4864 Monday, December 3, 2001 Carnegie-Stout Public Library, Dubuque, Iowa The date of this Official Statement is November 27, 2001. NEW ISSUE: BOOK-ENTRY ONLY RATING: APPLIED FOR (MOODY'S)* THIS OFFICIAL STATEMENT CAN BE FOUND ON THE WORLD WIDE WEB AT: ~,WvX~V'.EX,~q~NS ENqDO D G E.C O M Assuming compliance with certain covenants, in the opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C., Bond Counsel, interest on the Series 2001 Bonds is not included irt gross income for purposes of present federal income taxes, to the extent and subject to certain exemptions as described more fully under the caption "Tax Exemption ' herein. (See "Tax Exemption ".) OFFICIAL STATEMENT $9,500,000 GENERAL OBLIGATION BONDS, SERIES 2001 CITY OF DUBUQUE DUBUQUE COUNTY, IOWA Bonds Dated: December 15, 2001 Principal Due: June 1, 2005/2021 Minlmtlln Bid: $9,405,000 (99.0% of par) Good Faith Deposit: $95,000 The $9,500,000 General Obligation Bonds, Series 2001 (the "Series 2001 Bonds") of the City of Dubuque, Iowa (the "City" or "issuer") are issued pursuant to Chapter 384 of the Code of Iowa, for the purpose of financing various projects associated with the development of the Mississippi River National Education and Conference Center, and public improvements in the Port of Dubuque. The Series 2001 Bonds are general obligations of the City. All taxable property in the territory of the City is subject to ad valorem taxation without limitation as to rate or amount to pay the Series 2001 Bonds. The Series 2001 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, New York, New York ("DTC'). DTC will act as securities depository of the Series 2001 Bonds. Individual purchases may be made in bnnk-entry form only, in the principal amount of $5,000 and integral multiples thereof. Purchasers will not receive certificates representing their interest in the Series 2001 Bonds purchased. Principal payable annually on each June 1 and interest, payable semi-annually beginning December 1, 2002, will be paid to DTC, which will in turn remit such principal and interest to its participants for subsequent dispersal to the beneficial owners of the Series 2001 Bonds as described herafu. The Series 2001 Bonds will mature on June 1 in the years and amounts as follows: Interest Interest Year Amount R~e* Yield* Year Amount R~e* Yi~d* 2005 $ 670,000 __.% % 2014 $ 550,000 % % 2006 180,000 __.% % 2015 575,000 % % 2007 410,000 % __~A 2016 590,000 % % 2008 425,000 % __~A 2017 620,000 % ___% 2009 490,000 % % 2018 650,000 % % 2010 530,000 __.% % 2019 680,000 % % 2011 545,000 % ___% 2020 715,000 ___% % 2012 560,000 __% % 2021 750,000 ___% % 2013 560,000 __% ___% The Series 2001 Bonds maturing on June 1, 2010 and thereafter are redeemable prior to their stated date of maturity, at the option of the City on June 1,2009 and any date thereafter at a price of par plus accrued interest to the redemption date. BANK QUALI~'IED: The Series 2001 Bonds are "Qualified Tax-Exempt Obligations." LEGAL OPINION: Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C., Des Moines, Iowa. BIDS RECEIVED UNTIL: 11:00 A.M. Central Time on Monday, December 3,2001 City Hall 50 West Thirteenth Street Dubuque, Iowa 52001-4864 BIDS CONSIDERED: 6:30 P.M. Central Time on Monday, December 3, 2001 Carnegie-Stout Public Library, Dubuque, Iowa The date oft his Official Statement is November 27, 200 I. * Interest rates, reoffering yields or prices and ratings will be set forth in the Final Official Statement described herein. (THIS COVER PA GE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONL K IrIS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST READ rile ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DE [~ EVENSEN DODGE[ NEW ISSUE: BOOK-ENTRY ONLY RATING: APPLIED FOR (MOODY'S)* TillS OFFICIAL STATEMENT CAN BE FouNrD ON ~ WORLD WIDE WEB AT: WWW.EVENSENDODGE.COM Assuming compliance with certain covenants, in the opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C., Bond Counsel, interest on the Series 2002 Bonds is not included in gross income for purposes of present federal income taxes, to the extent and subject to certain exemptions as described more fully under the caption "Tax Exemption ' herein. (See "Tax Exempt'on '~) OFFICIAL STATEMENT $2,860,000 GENERAL OBLIGATION BONDS, SERIES 2002 CITY OF DUBUQUE DUBUQUE COUNTY, IOWA Bonds Dated: December 15, 2001 Principal Due: June 1, 2004/2021 Minimum Biek $2,831,400 (99.0% of par) Good Faith Deposit: $28,600 The $2,860,000 General Obligation Bonds, Series 2002 (the "Series 2002 Bonds") of the City of Dubuque, Iowa (the "City" or "Issuer") are issued pursuant to Chapter 384 of the Code of Iowa, for the purpose of financing various projects associated with the development of the Mississippi River National Education and Conference Center, and public improvements in the Port of Dubuque. The Series 2002 Bonds are general obligations of the City. Ali taxable property in the territory of the City is subject to ad valorem taxation without limitation as to rate or amount to pay the Series 2002 Bonds. The Series 2002 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, New York, New York ("DTC'). DTC will act as securities depository of the Series 2002 Bonds. Individual purchases may be made in book-entry form only, in the principal amount of $5,000 and integral multiples thereof. Purchasers will not receive certificates representing their interest in the Series 2002 Bonds purchased. Principal payable annually on each June I and interest, payable semi-annually beginning December 1, 2002, will be paid to DTC, which will in tara remit such principal and interest to its participants for subsequent dispersal to the beneficial owners of the Series 2002 Bonds as described herein. The Series 2002 Bonds wi11 mature on June 1 in the years and amounts as follows: Interest Interest Year Amount Rat~ Yield* Year Amount Rate* Yield* 2004 $165,000 ___% % 2013 $145,000 __.% % 2005 115,000 ___% __?A 2014 160,000 __.% __% 2006 120,000 ___% __~ 2015 170,000 __% __% 2007 I25,000 ___% __~A 2016 175,000 % % 2008 130,000 ___% % 2017 185,000 % % 2009 125,000 % % 2018 195,000 % __% 2010 130,000 __2A __% 2019 205,000 % % 2011 135,000 __2/o __% 2020 215,000 % % 2012 140,000 % __% 2021 225,000 % % The Series 2002 Bonds maturing on June 1, 2010 and thereafter are redeemable prior to their stated date of maturity, at the option of the City on June 1,2009 and any date thereafter at a price of par plus accrued interest to the redemption date. BANK QUALIg'IED: The Series 2002 Bonds are "Qualified Tax-Exempt Obligations." LEGAL OPINION: Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C., Des Moines, Iowa. BIDS RECEIVED UNTIL: 11:00 A.M. Central Time on Monday, December 3, 2001 City Hall 50 West Thirteenth Street Dubuque, Iowa 52001 4864 BIDS CONSIDERED: 6:30 P.M. Cantml Time on Monday, December 3, 2001 Carnegie-Stout Public Library, Dubuque, Iowa The date of this Official Statement is November 27, 2001. * Interest rates, reoffering yields or prices and ratings will be set forth in the Final Official Statement described herein. (THIS CO VER PA GE CO NTAINS CERTAIN INFORMATION FOR Q U1CK REFERENCE ONL 15 IT IS NOT ~ SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INFESTMENT DECISION.) EVENSEN D~DGE No dealer, broker, salesman or ether person has been authorized by the City, the Financial Advisor or the Underwriters to give any information or to make any representations other than those contained in this Official Statement or the Final Official Statement and, if given or made, such information end representations must not be relied upon as having been authorized by the City, the Financial Advisor or the Underwriters. This Official Statement or the Final Official Statement does not constitute en offer to sell or solicitation of en offer to buy, nor shall there by any sale of the Obligations 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 end other sources which are believed to be reliable, but it is not to be construed as a representation by the Financial Advisor or Underwriters. The information and expressions of opinion heroin are subject to change without notice, and neither the delivery of this Official Statement or the Final Official Statement nor any sale made thereafter shall, under any circumstances, create eny implication that there has been no change in the affairs of the City or in any other information contained herein, since the date hereof. IN CONNECTiON WiTH THE OFFERING OF THE OBLIGATIONS, THE I. YNDERWRITERS MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MA1NTAIN THE MARKET PRICE OF THE OBLIGATIONS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. TABLE OF CONTENTS Introduction to the Official Statement ............................ 1 Description of the Obligations ........................................ 3 Authorization ............................................................... 3 Purpose. ........................................................................ 3 Security ......................................................................... 3 Interest Computation .................................................. 3 Optional Redemption .................................................. 4 Book-Entry Only System ........................................... 4 Continuing Disclosure ............................................... 6 The Issuen .......................................................................... 7 General Information .................................................... 7 Government end Public Services .............................. 7 Employee Relations and Pension Plans ................... 8 Community Life ........................................................... 8 Fenelon Place Elevator ............................................... 8 Eagle Point Park ........................................................... 9 Transportation ............................................................. 9 Commerce end Development ..................................... 9 Manufacturing ........................................................... 10 America's River Project ............................................ 11 Economic and Demographic Information .................... 13 Population .................................................................. 13 Business and Industry ............................................. 13 Labor Fome end Unemployment Rates ................. 14 Retail Sales end Buying Income ............................. 14 Medical Services ....................................................... 14 Education ................................................................... i5 Building Permits ........................................................ 15 Financial SmmruaW .......................................................... 16 Indebtedness ................................................................... 17 General Obligation Long-Term Debt ...................... 17 Revenue Debt ............................................................ 18 Tax Increment Financing Bonds ............................. 18 Notes Payable ............................................................ 19 Future Financing ....................................................... 19 Debt Limitation .......................................................... 20 Overlapping Debt ...................................................... 20 Finencial Information ...................................................... 21 Financial Reports ...................................................... 21 Results of Operations ............................................... 2I Property Valuations and Taxes ..................................... 23 Recent Legislation - Utility Property Tax Replacement ............................................................ 23 Property Valuations and Tax Collection Procedures .............................................................. 23 Property Tax Levies end Collections ..................... 24 Taxes Per $1,000 of Taxable Value .......................... 25 Principal Taxpayers ................................................... 26 Financial Advisor ............................................................ 26 Rating ................................................................................ 26 Tax Exemption .................................................................. 27 Litigation ........................................................................... 28 Closing Documents ......................................................... 28 Certification ...................................................................... 28 Legal Matters ................................................................... 28 Miscellaneous .................................................................. 28 Appendix A- Financial Statements Appendix B - Forms of Legal Opinion Appendix C - Terms of Offering Appendix D - Forms of Confinuthg Disclosure Certificate Worksheet Bid Forms 2423001s (This page has been left blank intentionally.) INEFRODUCTION TO THE OFFICIAL STATEMENT The Series 2001 Bonds The following information is furnished solely to provide limited introductory information regarding $9,500,000 General Obligation Bonds, Series 2001 (the "Bonds"), of the City of Dubuque, Iowa, (the "City"), and does not purport to be comprehensive. All such information is qualified in its entirety by reference to the more detailed descriptions appearing in this Official Statement, including the appendices hereto. Security: Authority for Issuance: Purpose: Interest Payment: Maturity: Optional Redemption: Fornl: Professional Consultants: City of Dubuque, Iowa The Bonds are general obligations of the City. All taxable property in the territory of the City is subject to ad valorem taxation without limitation as to rate or amount to pay the Bonds. The Bonds are issued pursuant to Chapter 384 of the Code of Iowa. The proceeds of the Bonds will be used for the purpose of financing various projects associated with the development of the Mississippi River National Education and Conference Center, and public improvements in the Port of Dubuque. Interest is payable June 1 and December i, beginning December l, 2002. The Bonds mature June 1 of the years 2005 through 2021. The Bonds maturing on June I, 2010 and thereaRer are redeemable prior to their stated date of maturity, at the option of the City on June 1, 2009 or on any date thereafter, in whole or in part, in multiples of $5,000 at a price of par plus accrued interest to the redemption date. The Bonds will be issued in fully registered form only and initially will be in book-entry form only. FinancialAdvisor. Evensen Dodge, Inc. Minneapolis, Minnesota Des Moines, Iowa Bond Counsel: Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C. Des Moines, Iowa Paying Agent: Wells Fargo Bank Iowa, N.A. Des Moines, Iowa The Official Statement is in a form deemed final as of its date for purposes of Securities and Exchange Commission Rule 15c2-12(b)(1) (the "Rule"), but is subject to minor revision or amendment in accordance with the Rule. Not later than seven business days following the award of the Series 2001 Bonds, the City shall provide copies of the Final Official Statement, as that term is used in the Rule, to the purchaser of the Series 2001 Bonds. The Final Official Statement will be the Official Statement dated November 27, 2001, and an addendum which includes the maturity dates and amounts, interest rates and reoffering yields or prices, credit ratings, and any other information required by law. Any such addendum shall, on or after the date thereof, be fully incorporated in the Final Official Statement by reference. The purchaser wiR be supplied with Final Official Statements in a quantity sufficient to meet its request. Up to 100 copies of the Final Official Statement will be furnished without cost. Questions regarding the Series 200I Bonds or the Official Statement can be directed to and additional copies of the Official Statement, the City's audited financial reports and the Resolution may be obtained from Evensen Dodge, Inc., 650 Third Avenue South, Suite 1800, Minneapolis, Minnesota 55402, (612-338-3535, 612-338-7264 fax), the City's Financial Advisor, or Mr. Ken TeKippe, Finance Director, City Hall, 50 West 13th Street, Dubuque, Iowa 520014864, (563-5894133). The Series 2002 Bonds The following information is furnished solely to provide limited introductory information regarding $2,860,000 General Obligation Bonds, Series 2002 (the "Bonds ,), of the City of Dubuque, Iowa, (the "City"), and does not purport to be comprehensive. All such information is qualified in its entirety by reference to the more detailed descriptions appearing tn this Official Statement, including the appendices hereto. Security: Authority for Issuance: Purpose: Interest Payment: Maturity: Optional Redemption: Foria: Professional Consultants: City of Dubuque, Iowa The Bonds are general obligations of the City. All taxable property in the territory of the City is subject to ad valorem taxation without limitation as to rate or amount to pay the Bonds. The Bonds are issued pursuant to Chapter 384 of the Code of Iowa. The proceeds of the Bonds will be used for the purpose of financing various projects associated with the development of the Mississippi River National Education and Conference Center, and public improvements in the Port of Dubuque. Interest is payable June I and December 1, beginning December 1, 2002. The Bonds mature June 1 of the years 2004 through 2021. The Bonds maturing on June l, 2010 and thereaftar are redeemable prior to their stated date of maturity, at the option of the City on June i, 2009 or on any date thereafter, in whole or in part, in multiples of $5,000 at a price of par plus accrued interest to the redemption date: The Bonds will be issued in fully registered form only and initially will be in book-entry form only. Financial Advisor. Evensen Dodge, Inc. Minneapolis, Minnesota Des Moines, Iowa Bond Counsel: Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C. Des Moines, Iowa Paying Agent: Wells Fargo Bank Iowa, N.A. Des Moines, Iowa The Official Statement is in a form deemed final as of its date for purposes of Securities and Exchange Commission Rule 15c2-J2(b)(I) (the "Rule "), but is subject to minor revision or amendment in accordance with the Rule. Not later than seven business days following the award of the Series 2002 Bonds, the City shall provide copies of the Final Official Statement, as that term is used in the Rule, to the purchaser of the Series 2002 Bonds. The Final Official Statement will be the Official Statement dated November 27, 2001, and an addendum which includes the maturity dates and amounts, interest rates and reoffering yields or prices, credit ratings, and any other information required by law. Any such addendum shall, on or after the date thereof, be fully incorporated in the Final Official Statement by reference. The purchaser will be supplied with Final Official Statements in a quantity sufficient to meet its request. Up to 75 copies of the Final Official Statement will be furnished without cost. Questions regarding the Series 2002 Bonds or the Official Statement can be directed to and additional copies of the Official Statement, the City's audited financial reports and the Resolution may be obtained from Evensen Dodge, Inc., 650 Third Avenue South, Suite 1800, Minneapolis, Minnesota 55402, (612-338-3535, 612-338-7264 fax), the City's Financial Advisor or Mr. Ken TeKippe, Finance Director, City Hall, 50 West 13th Street, Dubuque, Iowa 520014864, (563-5894133). DESCRIPTION OF THE OBLIGATIONS Authorization The Obligations are issued pursuant to the authority of Chapter 384 of the Iowa Code. Purpose The proceeds of the Obligations will be used jointly to finance various projects associated with the development of the Mississippi River National Education and Conference Center, and Port of Dubuque as a part of the City's America's River pmjeet (See "America's River' herein). This project is a $188 million riverfront redevelopment plan that will be funded by the proceeds of the issues described herein, as well as grant money from the Vision Iowa Board, private participation, multiple federal grants, and the City's ~apital improvement budget resources. The projects financed by the proceeds of the issues herein are presented in the table below. Street Grade Parking Sheet Pile Wall for Visiting Boat Docks RiYerwalk Ice Harbor Park Shot Tower Exterior Rehab Shot Tower Protective Wall Art Elements Parking lot at Bell and 6th (3,75 stalls) Parking Lot S & W of Hotel (400 stalls) Existing Parking Lot Improvements Smart Growth Initiatives/Amenities Smart Growth Initiatives/Amenities West End Road~TraiI TP Street Related Projects local share Total Projects Funded: $ 4,066,098 719,250 3,163,000 67,200 100,000 100,000 300,000 450,000 497,000 370,700 421,623 92,500 900,000 377.500 Security The Obligations are valid and binding general obligations of the City. All taxable property in the territory of the City is subject to ad valorem taxation without limitation as to rate or amount to pay the Obligations. Interest Computation Interest on the Obligations will be payable semi-annually commencing December 1, 2002. It will be computed on a 360-day year, 30-day month basis, to the owners of record as of the close of business on the fifteenth of the immediately preceding month. Optional Redemption The Obligations maturing on June 1, 2010 and thereafter are redeemable prior to their stated date of maturity, at the option of the City on June 1, 2009 any date thereafter, in whole or in part, at a price of par plus accrued interest to the redemption date. Thirty days' notice of redemption shall be given by first class mail to the registered owner of the Bond. Failure to give such notice by mail to any registered owner of the Obligations or any defect therein shall not affect the validity of any proceedings for the redemption of the Obligations. All bonds or portions thereof called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment. If selection by lot within a maturity is required, the Reg/strar shall designate the bonds to be redeemed by random selection until the total amount of bonds to be called has been reached. Book-Entry Only System The information contained in the following paragraphs of this subsection "Book-Entry Only System" has been extracted from a schedule prepared by Depository Trust Company ("DTC") eniitled "SAMPLE OFFERING DOCUMENT ]MNGUAGE DESCRIBING BOOK-ENTRY ON£ Y ISSUANCE." The City makes no representation as to the completeness or the accuracy of such information or as to the absence of material adverse changes in such information subsequent to the date hereof. DTC wilt act as securities depository for the Obligations. The Obligations will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully-registered certificate will be issued for each annual maturity of the Obligations, each in the aggregate principal amount of such annual maturity, and such certificates will be deposited with DTC. DTC 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 securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfem and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Drect Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations (''Direct Participants"). DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Obligations on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in mm to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confmnation from DTC of their purchase, but Beneficial Owners are 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 Obligations are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Obligations, except in the event that use of the book-entry system for the Obligations is discontinued. To facilitate subsequent transfers, all Obligations deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Obligations with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 4 Obligations; DTC's records reflect only identity of the Direct Participants to whose accounts such Obligations are credited, which may or may not be the Beneficial Owners. The 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. Redemption notices shall be sent to Cede & Co. If less than all of the Obligations within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC or Cede & Co. will consent or vote with respect to Obligations. 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 the Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Obligations will be made to DTC. DTC's practice is to credit Direct Participants' accounts on the payable date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on the payable date. 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, the Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of ptincipal and interest to DTC is the responsibility of the City or the Paying Agent, disbursements of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Obligations at any time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. NEITHER THE CITY, THE PAYING AGENT, ANY BORROWER NOR THE UNDERWRITER WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO PARTICIPANTS, TO INDIPd3CT PARTICIPANTS OR TO ANY BENEFICIAL OWNER. WITH RESPECT TO (1) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC, ANY DTC PARTICIPANT OR ANY INDIRECT PARTICIPANT; (2) THE PAYMENT BY DTC, ANY DTC PARTICIPANT OR ANY INDIRECT PARTICIPANT OF ANY AMOUNT WITH RESPECT TO THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THI3 OBLIGATIONS; (3) ANY NOTICE WHICH IS PERMrI'II:D OR REQUIPdED TO BE GIVEN TO BONDHOLDERS; (4) ANY CONSENT GIVEN BY DTC OR OTHER ACTION TAKEN BY DTC AS BONDHOLDER; OR (5) THE SELECTION BY DTC, ANY DTC PARTICIPANT OR ANY INDIRECT PARTICIPANT OF ANY BENEFICIAL OWNER TO RECEIVE PAYMENT IN THE EVENT OF A PARTIAL REDEMPTION OF OBLIGATIONS. Continuing Disclosure The Issuer has covenanted for the benefit of the holders of the Obligations to provide certain financial information and operating data relating to the Issuer by not later than 210 days following the end of its fiscal year commencing with its fiscal year ending June 30, 2002 (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events, if deemed by the Issuer to be material. The Annual Report will be filed by the City with each Nationally Recognized Municipal Secufities Information Repository (and with any designated State Information Depository). The notices of matarial events will be filed by the City with the Municipal Securities Rulemaking Board (and with any designated State Information Depository). The specific nature of the information to be contained in the Annual Report or the notices of material events is summarized below in the form of continuing disclosure certificate attached as "Appendix D - Form of Continuing Disclosure Certificate." These covenants have been made in order to assist the Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). The Issuer has never failed to comply in ail material respects with any previous undertakings with regard to said Rule to provide annual reports or notices of material events. (The remainder of this page has been left blank intentionally.) THE ISSUER General Information The City &Dubuque, founded in 1785 by Julien Dubuque, is the oldest city in Iowa. This area became part of the United States under the terms of the Louisiana Purchase in 1803. The City is a unique combination of the old and new ranging from cog cable cars, Victorian architecture, and a Civil War shot tower to an enclosed mall, riverboat casino, and a parimutual dog track with slot machines. It is the County Seat of Dubuque County. The City is located on the Mississippi River west of the Illinois-Wisconsin border, and is connected to both states by bridges. It is the educational, industrial and commemial center for the adjacent counties in Iowa, Illinois and Wisconsin. The City has a land area of 27.5 square miles, of which approximately 20% is vacant and developable. Annexation activity in recent years has been voluntary with over 60 acres annexed in the past 5 years. The City's 2000 Census population was 57,686. The City is located approximately 16 miles northwest of Galena, Illinois, 65 miles north of the Quad Cities (Rock Island and Moline, Illinois and Bettendorf and Davenport, Iowa), 85 miles east of Waterloo, Iowa, 176 miles west of Chicago, Illinois and 185 miles northeast of Des Moines, Iowa. Government and Public Services The City has been governed by a Council-Manager form of government since 1920. Policy is established by a Mayor and six council members, the Mayor and two of the council members being elected at large and four members elected from wards. City Cotmcil members hold four year staggered terms. The City Clerk, City Manager, and Corporation Counsel are appointed by the City Council. The tables listed below present the current elected officials of the City and Council appointed officials. MAYOR/CITY COUNCIL Terry Duggan Dan Nicholson Ann Michalski John Markham Roy Buol Joe Robbins Pat Cline Term Extfires Mayor 2005 Council Member - At Large 2005 Council Member - A t Large 2003 Council Member- Ward One 2005 Council Member Ward Two 2003 Council Member Ward Three 2001 Council Member Ward Four 2003 OFFICIALS Michael Van Milligen Barry Lindahl Jeanne Schneider Ken TeKippe Pauline Joyce City Manager Corporation Counsel City Clerk Finance Director Administrative Services Manager The day-to-day operation of the City is the responsibility of the City Manager. City operated facilities include the waterworks system, the sewage treatment plant, a system of on-street and off-street parking and a municipal golf course. The quality of the municipal water system and fire department has contributed to the City's Class 3 fire insurance rating. Fire department personnel staff the City's three ambulances and provide paramedic services. Employee Relations and Pension Plans On January 1, 1992, the State of Iowa set up a new centralized pension and retirement system for police and firemen, the Municipal Fire and Police Retirement System of Iowa (the "Plan") administered by a Board of Trastees. The City's contribution rate for the Plan is based upon an actuaxially determined normal contribution rote. The normal contribution rate is provided by state statute to be the actuarial liabilities of the Plan less current plan assets, the total then being cF~vided by i% of the actuarially determined present value of prospective futura compensation of all members, farther reduced by member contributions. Legislatively appropriated contributions from the state may further reduce the City's contribution rate. However, the City's contribution rate may not be less than 17% of earnable compensation. The City's contributions to the Plan for the years ended June 30, 2001, 2000 and 1999 were $1,327,178, $1,280,060, and $1,186,840 respectively, which met the minimum requirement for each year. The City contributes to the Iowa Public Employee Retirement Systems (IPERS) which is administered by the State of Iowa. The employer's responsibility for IPERS is limited to payment of contributions. Plan members are required to contribute 3.70% of their annual covered salary and the City is required to contribute 5.75% of annual covered payroll. Contribution requirements are established by State statute. The City's contribution to IPERS for the years anded June 30, 2001, 2000 and 1999 were $828,947, $802,297, and $737,541 respectively. Community Life Residents of the Dubuque area make extensive use of the recreational opportunities afforded by the Mississippi River, which are complemented by City and County park systems. These include two outdoor swimming pools, picnic areas, ice skating rinks, baseball diamonds, tennis courts and an 18 hole public golf course. Several recreational areas are situated on the bluffs overlooking the Mississippi. These tracts, with their wooded hills and statuary, provide some of the most beautiful scenery in the State. The City has a wide variety of cultural offerings including art galleries, several professional and amateur theater groups and concerts by the Dubuque Symphony Orchestra. In 1985, the City completed construction of a facility for parimutual dog racing. A gambling referendum in 1994 allowed installation of slot machines at the facility. This facility is operated under the authority established by Iowa statutes by the nonprofit Dubuque Racing Association Ltd., and completed its sixteenth full season of racing in 2001. The City's Mississippi riverfront is the location of riverboat gambling and regular cruise boats. The port facilities are located in the historic "Ice Harbor Area", which is the location of extensive development by the City, the State of Iowa and nnmerous private enterlyrises. The Casino Belle, a riverboat gambling casino, opened April 1, 1991 and operates out of Dubuque. In 1994, the Casino Belie was replaced by a new and larger riverboat called the Diamond Jo, and as a result of a gambling referendum, wagering limits were removed. The Diamond Jo has a capacity of appro:dmately 800 passengers and employs approximately 380 persons. The Dubuque Racing Association also holds the State riverboat gambling license and has contracted with a private firm to own and operate the Diamond Jo riverboat. Fenelon Place Elevator The Fanelon Place Elevator (the "Railway") is a fimicular railway on which cars axe moved on cables similar to railways used in the Alps. The Railway is the "world's steepest, shortest scenic railway" and has been located in the City since 1882. Originally built for private use as a elevator from Fourth Street to Fanelun Place, the Railway is a popular tourist attraction operating from April through November. The Railway is 296 feet in length and elevates passengers nearly 200 feet, thereby offering passengers a magnificent tri-state view of the City's business district and the Mississippi River. Eagle Point Park Eagle Point Park (the "Park") is one of the most outstanding parks in the Midwest. One hundred sixty-four acres overlook the Mississippi River, Lock and Dam Number Eleven, providing a spectacular tri-state view of Iowa, Wisconsin and Illinois. Some of the facilities provided by the Park are pavilions, picnic areas, tennis courts, a viewing tower, a band shell and a multipurpose green area. The concept for a park on the "Bluffs" was conceived in 1907. A citizens committee was formed in 1908 and the land was deeded to the City. In the 1930's the City hired Alfred Caldwell as Park Superintendent and the Part received a $200,000 Works Progress Administration Grant. Caldwell's love of Frank Lloyd Wright's type of prairie architecture is very recognizable in the buildings and gardens. Caldwell's exceptional use of native construction materials, craftsmanship and unique designs make the Park one of the most beautiful in the Midwest. In August of 1999, the Park was selected by the Iowa Chapter of the American Society of Landscape Architects (ASLA) to receive an ASLA Centennial Medallion which recognizes the park as a national landmark for outstanding landscape architecture. Transportation The City is served by three railroads, the Burlington Northern, I & M Rail Link and Chicago, Central and Pacific, and by eleven motor freight firms. Greyhound and Iowa Coaches provide bus service, and the Dubuque Regional Airport is located 6.5 miles south of the City. The airlines serving the City include Northwest Airlink and American Eagle. Air Freight service is provided by two airlines and charter service by Chart Aim. American Eagle provides all jet service to Chicago. Barge service on the Mississippi River complements truck, air and rail freight carriers in offering commodity and bulk shipping capabilities to local industry and the area's agricultural businesses. A five mile, 33 foot high floodwall serves to protect the entire City and in particular a City industrial park which has some 18 industries. The Public Works Operation and Maintenance division of the City maintains the harbor channel and docking facilities which the navigation channel is maintained by the Army Corps of Eng/neers. Relocation of U.S. Highway 61/151 east of the downtown area was completed in 1994. The relocation eased pressure on downtown streets and improved access to downtown stores and facilities. This $150 million roadway links the north, south and east-west highways systems to the Iowa/Wisconsin and the Iowa/Illinois Mississippi River bridges. U.S. Highway 20 improvements from Locust Street to Devon Drive were completed in 1996. Additional improvements are planned for U.S. Highway 20 from Devon Drive to Centu~ Drive in 2002. Commerce and Development The City's central retail area services almost all of the fifteen surrounding counties in Iowa, Illinois and Wisconsin. Public improvements in the downtown area include a four block pedestrian mall, three off-street parking ramps, and a skywalk. The Five Flags Civic Center is owned by the City and provides facilities in the downtown ama for theater, arena, convention, concert and ice related entertainment. As the County seat, the City has a substantial number of office structures downtown which contribute to the business activity of the area. Cigna Corporation has completed construction of a I00,000 square foot office building downtown to allow expansion of their work force to over 700 employees. There is also substantial commemial activity west of the central business area along U.S. Highway 20, much of which is highway-oriented. Hotel chains along U.S. Highway 20, and south along Highway 61/151 near the airport, include Days Inn, Regal 8, Super 8, two Best Westerns, two Heartland Inns, a Fairfield Inn and a Comfort Inn. The City's enclosed shopping mall is also located west along U.S. highway 20, with anchor stores including Sears, J.C. Penney, and Younkers. Approximately 60 other retail stores are located in the mall. Several national retailers including Wag Mart, Target, Shopko and Toys-R-Us are located near the mall. In 2000, the City approved the construction of over one million square feet of commemial, office, industrial and institutional space. From 1996-2000, the City issued permits for 238 multi-family residential units and 348 one and two-family homes. The Dubuque area economy has remained strong with unemployment at record low levels. Employment has been strong in all sectors of the labor force with steady growth in manufacturing and construction jobs. To attract qualified workers to support growth, a coalition of local organizations, including the Greater Dubuque Development Corporation, the Telegraph Herald, Woodward futerNet Services, the Tri-State Human Resources Association, Northeast Iowa Community College, Iowa Workforce Development, and the City, joined together to develop an innovative wurkforce recruimaent program called "Come Back To Your Future, Come Home To Dubuque". This ongoing program, based primarily on internet technology, has been very successful and has gained national media attention including short features on CNN and ABC's Good Morning America, as well as an article in the Wall Street Journal. The City has continued programs to extend water and sewer utilities to promote development and provide annexation opportunities. The two largest projects completed last year include the extension of sewer utilities to the west along Highway 20 and a sewer line extension to the south along Highway 61-151 water utilities have also been extended to these areas for industrial park development. These projects now make utility service available for almost 10,000 areas ofprivataly owned land and allow for development of commercial and residential projects. The City has joined with the Greater Dubuque Development Corporation in the acquisition, development, and marketing of five sites for industrial growth. In 1996, the City began purchasing land and developing plans to increase land available for future industrial development from less than 30 acres to over 800 acres. The City budgeted $20 million over three years and have completed development of 282 of the 900 acres of newly acquired land into industrial parks using local, county, State and Federal funds. Retail expansion included the completion of construction on a 70,000 square foot Hy-Vee Supermarket as Asbury Plum. The Hy-Vee store will be the anchor cfa new 500,000 square foot retail development on the City's northwest side. Dubuque Main Street Ltd., ("DMS") is a not-for-profit organization that began operation in 1985. DMS is dedicated to the development cfa vibrant downtown area. DMS services five Downtown districts including Cable Car Square, Ice Harbor, Old Main S~eet, Town Clock Plaza and Upper Main~Farmers Market. Working as a partnership between the public and private sectors, DMS works to systematically attract new businesses and promote on-going businesses in the City's center. In 1995 the City was recognized as one of five "Great American Main Streets" by the National Main Street Center. DMS in conjunction with American Trust & Savings Bank, Dubuque Bank & Trust, Firstar Bank Iowa, N.A. and Premier Bank has established a loan pool for acquisition and rehabilitation of downtown properties. Approximately $100,000 was loaned to the Grand Opera House from this renovation program. Manufacturing The City is an important manufacturing center in Iowa. Recent transportation improvements involving U.S. Highway 61/151 and U.S. Highway 20 will provide four-lane access into Dubuque, improving the City's attractiveness to business and industry utilizing highway transportation. The Dubuque Regional Airport completed construction of runway 18-36 at a cost of $8,225,000. Ninety percent of the funding for the runway was provided by the FAA. Runway 18-36 now serves as the primary runway and air service will be greatly improved by reducing landing approach angles and weather related flight cancellations. As part of the U.S. Highway 6t four-lane conversion, the Airport received a new access road funded by the Iowa State Department of Transportation. The new access road 10 and improvements to the on-site water and sewer systems have opened approximately 50 acres for industrial development on the Airport site. In the Dubuque Industrial Center West, Nordstrom completed a 343,000 square foot addition to their 186,000 square foot regional distribution center, and Walter Development completed of a 60,000 square foot warehouse and distribution center. In the Kerper Induslrial Park, Otto A. LLC completed a 378,000 square foot facility leased to Eagle Window. This will provide for expansion of their Dubuque operations and an additional 168 employees. The City's two existing industrial parks have few remaining development sites. The City has undertaken an aggressive strategy to acquire an industrial land reserve that will service the City well into the 21a century. Over 900 acres of vacant, developable land suitable for industrial development have been purchased by the City. Two new industrial areas, located on the south and west side of Dubuque, added 285 acres available for development in the past few years. These new areas have been annexed to the City, are fully graded, have public utilities and streets in place and are located in tax increment financing districts. Several of the development sites are rail accessible. A 40,000 square foot spec building was completed at the new Dubuque Industrial Center West by the GDDC and property has been sold to McGraw Hill for a new 331,000 square foot distribution facility, and Alliant Energy for a new 40,000 square foot operations facility. Other businesses experiencing growth include: Swiss Valley Farms Company, a farmer owned dairy cooperative, has completed a $5.5 million expansion of their dairy plant in the City. Assisted by State Enterprise Zone incentives, the project will increase processing capacity by over 45 percent and will add at least 20 new jobs. Dubuque Data Service, Inc. (DDS) received a State Iowa Community Economic Betterment Account (CEBA) loan to assist in its move to a new 18,000 square foot facility. DDS develops and markets management software for automobile, farm implement and heavy-truck dealers and plans to add over 40 new employees to support their growing customer base. Morrison Brothers Company, a Dubuque based manufacturer of nozzles, valves and fittings for the petroleum industry completed construction on a new 32,000 square foot assembly and distribution facility replacing an older facility destroyed by fire in 1996. Assisted by Urban Renewal Tax Increment Financing, Morrison Brothers was able to improve efficiency by locating the new facility next to their existing foundry. Morrison Brothers plans to create 60 new jobs as a result of the project. The Barnstead/Thermolyne Corporation, a Dubuque maker of laboratory equipment, acquired a California based manufacturer of sterilizers for the dental, medical and scientific markets. The production of the acquired projects was moved to Dubuque adding approximately 35 jobs in the Dubuque manufacturing facility. The Dubuque Technology Park was completed on the south side of the City and sites were sold to CarteGraph Systemsd, Inc., Advanced Data42omm, Inc., and McLeod USA. CarteGraph Systems, Inc. is a leading provider of asset management/GIS software for the public works industry and is based in the City. Assisted by a CEBA loan, CarteGraph Systems, Inc. expanded their business and added over 100 new employees. McLeod USA completed construction on a digital telecommunications switching facility in the Technology Park. The McLeod facility has added state of the art telecommunications and data transmission capabilities to the City and the surrounding area. Advanced Data-Comm, Inc., a Dubuque based provider of tele-services, purchased a 15 acre pamel in the Technology Park and completed construction of a new 60,000 square foot corporate headquarters in 1999 and added approximately 50 new employees. America's River Project The City, the Dubuque Area Chamber of Commerce, and the Dubuque County Historical Society are working together with private, State and Federal agencies to further develop the City's riverfront. Riverfront development has long been a priority for the Dubuque City Council. This fits well with the Dubuque County Historical Society's work since 1992 to develop the River Discovery Center as a parc of their Mississippi W~ver Museum. The City has budgeted almost $6 million in its five-year capital improvement plan for riverfront projects, which are part of an overall $188 million America's River project being developed by tlf~s partnership. In February, a committee 11 representing the City of Dubuque, the Dubuque Area Chamber of Commerce, the Dubuque County Historical Society, and Platinum Hospitality Group, Inc. traveled to Des Moines to appear before the Vision Iowa Board to present America's River. Vision Iowa is a state-funded program designed to provide grant money to projects that achieve two specific goals. First, these plans should attract and retain young people to Iowa to live, work and raise their families. Second, they should create regional and national attractions that help create a new identity for Iowa. For those involved in America's River, Dubuque's riverfront plans seemed an obvious match with the goals of this new state initiative. The Vision Iowa Board voted unanimously to enter into negotiations with the intent to fund the project at a minimum of $30 million and to send a negotiating team to work out the details. The final grant award for America's River was $40 million. America's River is a 90-acre can'~us on Dubuque's Fourth Street peninsula (now called the "Port of Dubuque") featuring four major components: the Mississippi River Discovery Center, the Mississippi River National Education and Conference Center, the Riverwalk and Amenities, and the Riverfront Hotel and Indoor Waterpark. The America's River campus will be connected to the Heritage Trail for hiking and hiking, and to the downtown with rubber-wheeled trolleys. For special events, a shuttle service will connect city hotels to the Port of Dubuque. This campus will become the place people across the country and around the globe learn about and experience the Mississippi River. It will be the only place on the entire 2,400-mile stretch of the Mississippi River that captures the historical, environmental, educational and recreational majesty of the river. The riverfront projects include: · Mississippi River Discovery Center - A 700,000 square-foot world-class interpretive museum with aquariums, wetland, living history exhibits, and a historical steamboat. Heritage Trail Riverfront System A seven and one-half mile extension of the Heritage Trail from the north end of Dubuque through downtown to the Ice Harbor, and then south to the Mines of Spain State Recreation Area. The complete 18-mile bflce/hike trail system will link riverfront parks and attractions. · Star Brewery Amphitheater A public amphitheater with seating for 1,000 people and a 7,500 square-foot plaza constructed next to the historic Star Brewery. · Mississippi Riverwalk - A 2,000 foot promenade along the City's Fourth Street Peninsula with decorative paxdng, landscaping, historical lighting, and river overlooks. · River's Edge Plaza A 5,000 square-foot plaza around the floorwall gate to the historic Ice Harbor. · Harborwalk and Boat Docks A 500 foot walkway around the Ice Harbor from the Iowa Welcome Center to the U.S. Coast Guard station, with docks for visiting boaters, benches and historical lighting. In addition, the City has entered into a development agreement with Platinum Holdings LLC that provides for their construction of a $22,000,000, 200 room hotel with indoor water park and construction of a 45-50,000 square foot corporate office building by Durrant Architects. 12 ECONOMIC AND DEMOGRAPHIC INFORMATION Population Table 1 shows the population of the City of Dubuque, as well as Dubuque County as recorded in the past five Table 1 Pooulation Statistics decennialcensuses. City of Dubuoue Dubuaue County 2000 57,686 89,143 1990 5~546 86,403 1980 6~374 93,745 1970 62,309 90~09 1960 56,606 80,049 Source: United States Census Bureau. Business and Industry The major employers in the City are presented inTable 2. Table 2 Princioal Emolovers Nalne John Deere Dubuque Works Dubuque Community School District Mercy Medical Center Medical Associates Clinic, P.C. Alliant Energy Flexsteel Industries, Inc. The Finley Hospital City of Dubuque Eagle Window & Door, Inc. Advanced Data-Comm, Inc. Product/Service Manufacturer of farming equipment Education Health Care Services Health Care Services Utility Manufacturer of seating products Hospital Govemment Manufacturer of windows Call Center Som'ce: Dubuque Chamber of Commerce. 2,352 1,410 1,329 1,003 865 85O 84O 705 550 550 13 Labor Force and Unemployment Rates Table 3 lists the annual average unemployment rates for Dubuque County as compared to the unemployment rate for the State of Iowa for the years 1997 through 2000 and October 2001 only. The information presented in the table below has not been seasonally adjusted. Table 3 Unemnlovment Statistics O) DubuqueCounty State of Iowa Labor Force Unemulovment Rate Unemnlovment Rate 2001(1) 49,200 3.0o/0 2.7% 2000 48,600 2.9% 2.3% 1999 48,500 2.7% 2.5% 1998 48,700 3.2% 2.8% 1997 49,500 3.9% 3.3% October 2001 only. Source: Iowa Workforce Development. Retail Sales and Buying Income Table 4 below lists median household EBI and per capita retail sales for Dubuque County and for the State of Iowa for the years 1996 through 2000 as reported in the Sales and Marketing Management's "Survey of Buying Power." Table 4 Retail Sales/Buvinn Income Effective Buying Income Per Capita Retail Sales(l) Dubuque State of Dubuque State of County Iowa CounW Iowa 2000 $ 37,444 $ 36,556 $14,501 $12,815 1999 35,740 34,962 13,651 12,466 1998 34,488 33,150 12,012 10,716 1997 34,034 32,694 11,441 10,196 1996 32,785 31,489 11,158 9,866 Information for the years 1999 and thereafter Per Capita Retail Sales are not directly comparable to previous years. Statistics are now based on new North American Industry Classification System. Medical Services A partial listing of health care facilities located in Dubuque County includes the Finley Hospital, Mercy Medical Center, Dubuque Internal Medicine and Medical Associates Clinic. Combined they provide a wide variety of medical services including hospitals, clinics, physician group practices and more. 14 Education The ptimary school districts serving Dubuque County residents are the Dubuque Community School District, Dubuque Parochial Schools, East Dubuque Public S~hools and Western Dubuque Schools. The Dubuque Community School District is comprised of two high schools, an alternative high school, two junior high schools and twelve elementary schools. Table 5 shows the enrollment statistics for the Dubuque Community School District for the past five years. Table 5 Enrollment Statistics 2000/01 9,811 1999/00 9,783 1998/99 9,491 1997/98 9,606 1996/97 9,724 Source: Iowa Deparanent of Education, http://www.state.ia.us/educate/statistics/5year_car.hlm. Higher education facilities within commuting distance are the Capti College, Clarke College, Emmaus Bible College, Loras College, University of Dubuque and Wartburg Theological Seminary in the City of Dubuque, Divine Word College in the City of Epworth, Hamilton College in the City of Cedar Falls, and Highland Community College in the City of Freeport, and Northeast Iowa Community College in the City of Peosta. Building Permits Construction activity in the City as shown by its building permit records are summarized in Table 6. Table 6 Buildin~ Permits Number of Permits Fiscal Year Single Family Multi-Family 2000/01 53 24 1999/00 49 I 1 1998/99 58 I2 1997/98 69 6 1996/97 55 7 1995/96 73 14 1994/95 89 19 1993/94 194 39 1992/93 118 13 1991/92 139 17 Commercial/Industrial Total Permits Total Valuation 18 1,448 $ 72,073,145 27 1,502 78,499,930 15 1,500 58,308,703 23 1,572 35,647,103 18 2,039 34,950,496 18 4,190 75,568,862 18 6,918 65,599,402 19 1,862 56,927,805 21 1,153 27,819,446 16 1,656 38,532,058 Reflects Augast I994 hail and storm damage. Source: City of Dubuque. 15 FINANCIAL SUMMARY (This summary is subject in ali respects to more complete information contained in this Official Statement) Assessed 100% Value (2000 Assessment) $ 2,138,110,953°) Assessed Taxable Value (2000 Assessment) Direct Debt G.O. Long-Term Debt (Includes Issues Herein) Revenue Debt Overlapping General Obligation Debt Population (2000 Census) Area $ 1,509,803,936(~) $ 24,770,000 $ 1,890,000 $ 3,101,018 57,686 27.5 square miles Debt Ratios: General Obligation Debt Overlapping Debt Total 24,770,000 3.101.018 28.871.01~ Per Capita (57.686/ $ 429 54 483 Percentage of Assessed Value 1.16% 0.15% 1 30% Includes Increment value. (The remainder of this page has been left blank intentionally.) 16 INDEBTEDNESS General Obligation Long-Term Debt Table 7 and Table 8 summarize the City's general obligation long-term debt as of the issuance of the Obligations. Table 7 General Obligation Debt bv Issue Dated Original Interest Final Principal Date Issue Amount Rates Maturity Outstandin~ 05/01/91 Essential Corporate Purpose $ 2,500,000 6. I0% 05/01/02 $ 410,000 06/01/93 Essential Corporate Purpose 4,615,000 4.30°/$ - 4.50% 05/01/03 875,000 05/01/94 Essential Corporate Purpose 3,100,000 5.00% - 5.125% 05/01/04 930,000 07/01/95 Essential Corporate Purpose 2,000,000 4.45°/$ - 4.90% 05/01/05 1,180,000 06/01/00 Essential Corporate Purpose 2,750,000 5.80°/$ - 5.875% 06/01/20 2,750,000 11/01/00 Essential Corporate Purpose 6,265,000 5.00% -5.25% 06/01/20 6,265,000 12/15/0I Essential Corporate Purpose 9,500,000 Issue Herein 06/01/21 9,500,000 12/15/01 Essential Corporate Purpose 2,860,000 Issue Herein 06/01/21 2.860.000 Total ~ 24 770 00o Outstanding Table 8 General Obligation Debt Annual Maturitv Schedule Series 2001 Bonds Series 2002 Bonds Fiscal Year Ended June 30 Prthcinal Interest Principal Interest0) Principal Interest~) Total 2002 $ 1,720,000 $ 911,055 $ - $ - $ - $ -- $ 2,631,055 2003 t,350,000 560,130 -- 604,688 - 178,635 2,693,454 2004 1,000,000 494,651 - 413,855 165,000 122,260 2,195,766 2005 590,000 444,341 670,000 413,855 115,000 118,135 2,351,331 2006 355,000 413,991 180,000 395,095 120,000 114,915 1,579,001 2007 370,000 395,089 410,000 389,515 125,000 111,195 1,800,799 2008 395,000 375,350 425,000 375,985 130,000 107,070 1,808,405 2009 410,000 354,296 490,000 360,685 125,000 102,390 1,842,371 2010 425,000 332,440 530,000 342,065 130,000 97,640 1,857,145 2011 455,000 309,781 545,000 320,865 135,000 92,440 1,858,086 2012 475,000 285,518 560,000 297,975 140,000 86,770 1,845,263 2013 500,000 260,195 560,000 273,895 145,000 80,750 1,819,840 2014 525,000 233,524 550,000 249,255 160,000 74,370 1,792,149 2015 555,000 205,538 575,000 224,505 170,000 67,170 1,797,213 2016 590,000 175,946 590,000 198,055 175,000 59,350 1,788,35I 2017 620,000 144,494 620,000 170,325 185,000 51,125 i ,790,944 2018 655,000 111,436 650,000 140,565 195,000 42,245 1,794,246 2019 685,000 76,518 680,000 108,715 205,000 32,690 1,787,923 2020 735,000 39,994 715,000 74,715 215,000 22,440 1,802,149 2021 - -- 750.000 38.250 225.000 11,475 1.024.725 t7 Revenue Debt The revenue bond issue listed in Table 9 and Table 10 is payable from parking revenues of the City's parking system and is not a general obligation of the City. Table 9 Revenue Debt by Issue Principal Issue Original Interest Rate Final Outstanding Date Puroose Amount Outstandine Mamriw as of 6/30/01 03/01/98 Parking Facilities $2,515,000 4.10%-4.75% 05/01/10 $1.890.000 Total Table 10 Revenue Debt Annual Maturity Schedule Fiscal Year Ended June 30 Princinal Interest Total 2002 $ 170,000 $ 85,765 $ 255,765 2003 180,000 78,625 258,625 2004 190,000 70,885 260,885 2005 200,000 62,525 262,525 2006 210,000 53,525 263,525 2007 220,000 43,970 263,970 2008 230,000 33,850 263,850 2009 240,000 23,155 263,155 2010 250,000 11.875 261.875 Total ~ ~ 464 175 ~ 29~:4 17~ Tax Increment Financing Bonds The City issues tax-increment financing bonds to provide funds for urban renewal projects. The City pie dges property tax revenues from the tax-increment financing districts to pay debt service. The City's tax-increment financing bonds outstanding at June 30, 2001 are as presented in Table 11 and Table 12. Table 11 Tax-Increment Debt bv Issue Issue Original Interest Rate Date Puroose Amount Ontstandina Mataritv Dates 03/18/99 Advanced Data-Corem $900,000 6.0% - 9.0% 12/31/014)6/30/11 12/01/99 Categraph Systems 360,000 8.8% 12/31/01-12/31/10 02/15/00 Eagle Window & Door 3,168,538 9.1% 12/31/02-06/30/12 Total Principal Outstanding as of 6/30/01 $ 900,000 360,000 2.898.751 18 Table l 2 Tax-Increment Annuul Maturity Schedule Fiscal Year Principal and Ended June 30 Interest Amount 2002 $ 456,236 2003 675,372 2004 675,372 2005 675,372 2006 - 2011 4,493,753 Total Notes Payable Notes payable have been issued to provide funding for economic development and for the purchase of Iand. The City's outstanding notes payable at June 30, 2001 are presented in Table 13 and Table 14. Table 13 Notes Payable bv Issue Principal Issue Original Interest Rata Outstanding Date Purpose Amount Outstanding Matarity Dates as of 6/30/01 04/15/97 Economic Development $700,000 4.40% 05/01/03 $ 616,000 02/27/98 Economic DevelolYment 655,500 4.40% 03/01/04 655,500 07/15/99 Economic Developrrent 800,000 None 07/01/01-07/01/02 533,334 06/30/00 Land Purchase 313,445 6.00% 07/01/03 313.445 Total ~ 2 I l R 270 Table 14 Notes Payable Annual Maturlt~ Schedule Fiscal Year Principal cud Ended June 30 Interest Amount 2002 $ 390,843 2003 1,235,863 2004 684_342 Total ~ 2 311 0A____~__~ Future Financing The City is currently anticipating the issuance of approximately $1 million of additional general obligation debt in early calendar year 2002, for a main street pro.~ect. 19 Debt Limitation The Constitution of the State of Iowa, Article XI, Section 3, provides as follows: "Indebtedness of political or municipal corporations. No county, or other political or municipal corporation shall be allowed to become btdebted in any manner, or for any purpose, to an amount, in the aggregate, exceedingfive per centum on the value of taxable property within such county or corporation-to be ascertained by the last State and County tax lists, previous to the incurring of such indebtedness." Table 15 Debt Limit Computation Total Assessed Actual Valuation Legal Debt Limit of 5% of 2000 Assessed Actual Value Debt Chargeable Against Limit (23.2%) (Includes the Obligations) Legal Debt Limit Available (76.8%) 138 11005~3 106,905,548 24,770,000 82.135.54.~g Overlapping Debt There are two taxing jurisdictions which overlaps the City and which have general obligation debt outstanding. Table 16 sets forth the general obligation debt for those jurisdictions and the amount of their debt allocable to the City as of Jtme 30, 2001. Jurisdiction Dubuque County Northeast Iowa Community College°) Total Overlapping Debt Table 16 Overlapping Debt General % of Debt Debt Obligation Allocable Allocable Debt to the City to the City $ 4,000,000 60.68% $ 2,427,366 3,085,000 21.84% 673.652 Excludes new jobs training cerdficates payable primarily from credits and incremental property tax ~'enue derived from jobs training program. The certificates are further secured by a back-up levy of generai taxes. (The remainder of this page has been left blank intentionally). 20 FINANCIAL INFORMATION Financial Reports The City's financial reports are audited by an independent accountant. The City maint~flns its books using the cash basis of accounting. Its audited financial statements are issued in conformity with generally accepted accounting principles as applicable to governmental units. Copies of the City's audited financial statements for the fiscal years ended June 30, 1998 through June 30, 2000 are available from Evensen Dodge, Inc., the City's Financial Advisor, upon request. See Appendix A for selected schedules and the Notes to Financial Statements for the financial statements for fiscal year 2000. The City anticipates that the audited financial statement for the fiscal year ended June 30, 2001 will be available in January of 2002. Resul~ofOpera~ons Statements of revenues and expenditures of the General Fund of the City have been compiled from the City's financial reports. They have been organized in such a manner as to facilitate year-to-year comparisons. Table 17 summarizes the City's 2002 General Fund budget as mended by the City Council. Table 18 sets forth statements of revenue and expenditures for the General Fund for fiscal years 1999 through 2000, and unaudited actual infomaatiun for the fiscal year ended June 30, 2001. Table 17 2001/02 General Fund Budeet Revenues $ 60,878,349 Property Taxes 11,778,545 Transfers In 3,298,211 Total Revenues ~ 75 05~ Expenditures Operating Expenses $ 30,076,993 Capital ]Expenses 43,782,899 Transfers Out 849.247 Total Expenditures 5g 74 709 1 (The remainder of this page has been left blank intentionally). 21 Table 18 Statements of Revenues and Exuendltures for the General Fund (Years Ended June 30) Taxes Licenses and permits Intergovernmental Charges for services Fines and Forfeits Miscellaneous Interest Total Revenues Expenditures Current Policy and Administration Program Community Protection Home and Community Environment Program Human Development Program Total Expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Note Proceeds Operating transfers in Operating transfers from component unit Operating transfers out Total Other Financing Sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances beginning of year Fund balances end of year 0) Unaudited actual. 2001o) 2000 1999 $ 21,889,496 $ 21,121,428 $19,439,856 576,136 612,872 580,429 2,711,649 2,432,434 1,550,378 8,127,372 7,882,053 7,843,162 369,391 340,551 337,087 776,542 824,343 1,008,459 2.097.430 1.358.580 1.305.328 $ 36,548,016 $ 34,572,261 $ 32.064.699 4,977,495 $ 4,409,560 $ 3,555,128 15,064,313 13,907,034 13,295,505 6,118,157 6,536,143 7,158,938 8A75,658 7,262,308 6~420,864 34.635.623 $ 32. I 15.045 $ 30A30A35 1.912.393 $ 2.457.216 $ 1.634264 $ 60,000 $ 260,000 $ -- 3,433,458 2,317,211 2,187,779 27,822 26549 26,466 (3.846.628~ (771.00D (4.829.73 D $ (325.348~ $ 1.832.759 $ (2.615.486~ 1,587,045 4,289,975 (981,222) 19,235,939 14,945,964 15.927.186 5~ 20 ~22 084 ~ 1923~ 93q~ ~ l~ q~4~; o6d (The remainder of this page has been left blank intentionally). 22 PROPERTY VALUATIONS AND TAXES Recent Legislation - Utility Property Tax Replacement The Iowa General Assembly recently enacted Senate File 2416 ("S.F. 2416"). Beginning in 1999, this legislation replaced current property tax assessment procedure in valuing the property of entities involved primarily in the production, delivery, service and sale of electricity and natural gas with a replacement tax formula based upon the delivery of energy by these entities. Under S.F. 2416, electric and natural gas utilities pay replacement taxes to local taxing districts (calculated so as to approximate historical tax collections), and their properties are exempt from the levy of prope.ety tax by political subdivisions. The utility property will continue to be valued by a special method as provided in the statute and taxed at the rate of three cents per thousand dollars for the general fond of the State. Given the wide scope of the statutory changes and the interpretive and adnfinistrative questions presented by S.F. 2416, the impact of this legislation on the Issuer is uncertain. The bill provides for the immediate creation of a task force to study the effects of the legislation on all local taxing districts and report to the General Assembly on an annual basis through January 1 ~ 2003, including its specific recommendations for any needed modifications to the bill. S.F. 2416 provides for a three-year transition period (during which local taxing districts may continue to levy a property tax for any difference between the replacement tax revenues and the property tax revenues that it would have otherwise collected from the utilities). It is possible that the general obligation debt capacity of the City could be adjudicated to be proportionately reduced in future years if utility property were determined to be other than "taxable property" for purposes of computing the Issuer's debt limit under Article XI of the Constitution of the State of Iowa. There can be no assurance that such legislation will not (i) operate to reduce the amount of debt a city can issue or (ii) adversely affect a city's ability to levy taxes in the future for the payment of the principal of and interest on its outstanding debt obligations, including judgment bonds. Property Valuations and Tax Collection Procedures All property subject to taxation is valued every year and is subject to an equalization action of the State Department of Revenue every other year. All property except utility property is assessed at the local level. The State Department of Revenue assesses utility property. The Assessor establishes actual valuation (100%) as of January 1 in a calendar year for taxes payable in the succeeding fiscal year, i.e. valuations made in 2000 are for taxes payable in the fiscal year 2001/02. The actual value of parcels is provided by the assessor to the City Auditor who then determines the taxable value. The taxable value is computed by adjusting the actual value of various classes of real property by percentages (roll back rates) determined by the State Department of Revenue. The roll back rates are applied to classes of property on a statewide basis so that the increase in actual valuation of property in the State will not exceed 4% annually. The rollback amount for Residential property for the 2000 valuation is 0.562651, there is not a rollback amount for Commercial or Industrial property. Table 19 outlines the Actual Value (100%) and Taxable Value of all property in the City as assessed in the years 1996 through 2000. Table 20 lists the classes of property which comprise the City's 2000 actual value of property. (The remainder of this page has been left blank intentionally). 23 Table 19 Taxable and Actual Property Valuations Assessment Fiscal Actual Value Year Year (100%~ Taxable Value 2000 2001/02 $ 2,138,110,953 $1,509,803,936 1999 2000/01 2,100,278.,358 1,449,801,405 1998 1999/00 2, I32,833,763 1,468,258,951 1997 1998/99 2,089,757,550 1,437,517,624 1996 1997/98 1,873,090,643 1,347,685,031 Included in 100% and taxable wdlue as shown. Table 20 Actual Value by Class Prot)ertv Tvoe Actual Value % of Total Residential $1,436,625,623 67.19% Agriculture Land 1,651,834 0.08% Agriculture Buildings 489,960 0.02% Commercial 540,507,724 25.28% Industrial 64,872,200 3.03% Personal Property R.E. 11,203,440 0.52% Utilities 90,010,398 4.21% Other 705.130 0.03% Gross Valuation $ 2,146,066,309 10037% Less: Milita~ Exemption 7.955.356 0.37% Net Valuation ~g 2 13g 1 l0 05~ 100 00% Valueo) $ 54,022,805 42,780,985 45,160,759 59,670,866 26,822,850 Property Tax Levies and Collections After the assessment of property taxes in a calendar year, taxes are levied for collection in the following fiscal year. Taxes are certified to the County Auditor in March. The County Treasurer collects taxes for all taxing entities in the County. Statutory dates for payment without penalty are September 30t~ for the first installment and March 31~ for the second installment. Penalty rates are established by State law at 1.5% per month. (The remainder of this page has been left blank intentionally). 24 Table 21 outlines the County's collections of taxes in the fiscal year following their levy for the City. Table 21 Tax Collections Collection Year Ended June 30 Taxes Levied Total CollectedO) Percent Collected 2001/02 $15,636,579 $15,906,492 101.73% 2000/01 15,574,467 I5,499,068 99.52% 1999/00 15,285,754 15,614,302 102.15% 1998/99 15,332,806 15,339,831 100.05% 1997/98 15,097,209 14,551,860 96.39% Includes delinquent collections from prior years. Source: Dubuque County Auditor. Taxes Per $1,000 of Taxable Value Table 22 shows the tax rates for the City for the current and past four collection years. Table 22 Tax Rates ($/$1,000 of Taxable Valuel 2001/02 2000/01 1999/00 1998/99 1997/98 Dubuque County 5.73669 5.60750 5.54016 5.52169 5.54113 City of Dubuque 10.76080 11.06712 10.71601 11.07340 11.40112 Dubuque Community School District 13.50444 12.17096 11.53111 11.98226 12.03974 Area School 0.57072 0.56995 0.55128 0.48592 0.49951 Other 0.54806 0.50467 0.56187 0.50368 0.52563 Total 31 12fl71 2q 92021) 2R 9004:i 2956695 3000713 Source: Dubuque County Auditor. (The remainder of this page has been left blank intentionally). 25 Principal Taxpayers A list of the ten taxpayers in the City with the highest taxable valuations on the 2000 assessment is presented in Table 23. Table 23 Pr/neipal Taxpayers % of Total Taxable Taxable Name Valuation Valuation(~) Kennedy Mall, Inc. $ 19,990,230 1.32% Nordstrom, Inc. 15,532,230 1.03% Medical Associate Realty 11,338,660 0.75% Plaza 20,/nc. 8,733,310 0.58% U.S. West Communications 8,574,682 0.57% Wilmington Trust Co. 7,743,610 0.51% McGraw-Hill Cos. Inc. 7,730,070 0.51% American Trust & Savings Bank 7~379,420 0.49% McDonald Mfg Co. 6,903,640 0.46% Medical Associate Realty LP 6.547.100 0.43% Total ~ 1 flO.472 052 6 65% (1) Total taxable valuation of $1,509,803,936 includes tax increment value. FINANCIAL ADVISOR The City has retained Evensen Dodge, Inc., of Minneapolis, Minnesota, as financial advisor (the "Financial Advisor") in connection with the issuance of the Obligations. In prepafing the Official Statement, the Financial Advisor has relied upon governmental officials, and other sources, who have access to relevant data to provide accurate information for the Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information. The Financial Advisor is not a public accounting firm and has not been engaged by the City to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities and therefore will not participate in the underwriting of the Obligations. Requests for information concerning the City should be addressed to Evensen Dodge, Inc., 650 Third Avenue South, Suite 1800, Minneapolis, Minnesota 55402 (612/338-3535). RATING A rating review has been requested from Moody's Investors Services, Inc. for the Obligations. A rating is subject to withdrawal at any time; withdrawal ora rating may have an adverse effect on the marketability of the Obligations. For an explanation of the significance of the rating, an investor should communicate with the rating agency. 26 TAX EXEMPTION General: In the opinion of Bond Counsel, assuming continuing compliance with certain covenants made by the Issuer, interest on the Obligations (a) is excluded from gross income for federal income tax purposes and (b) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, with respect to corporations, such interest is taken into account in determining adjusted current earnings for the purpose of computing the altamative minimum tax imposed on such corporations. Prospective purchasers of the Obligations should be aware that (i) Section 265 of the Internal Revenue Code of 1986 (the "Code"), denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Obligations or, in the case of a financial institution, that portion of a holder's interest expense allocated to interest on the Obligations (see however, "Qualified Tax-Exempt Obligations" below), (ii) with respect to insurance comp anies subject to the tax imposed by Section 831 of the Code, Section 832(b)(5)(B)(i) reduces the deduction for loss reserves by 15 percent of the sum of certain items, including interest on the Obligations, (iii) interest on the Obligations earned by certain foreign corporations doing business in the United States could be subject to a branch profits tax imposed by Section 884 of the Code, (iv) passive investment income including interest on the Obligations, may be subject to federal income taxation under Section 1375 of the Code for Subchapter S corporations that have Subchapter C earnings and profits at the close of the taxable year if more than 25% of the gross receipts of such Subchapter S corporation is passive investment income, and (v) Section 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take into account in determining gross income, receipts or accruals of interest on the Obligations. Oualified Tax, Exemm Oblieations: The Issuer will designate the Obligations as "Qualified Tax-Exempt Obligations." A special rule is provided under Section 265(b)(5) pursuant to which any qualified tax-exempt obligation may be treated as acquired before August 7, 1986 permitting a deduction for 80 percent of that portion of such financial institution's interest expense allocable to interest on the Obligations. Qualified tax-exempt obligations for this purpose include any bond which (i) is not a private activity bond, as defined in the tax-exempt bond provisbns of the Code, and (ii) is designated by the City as a qualified tax-exempt obligation, and provided that not more than $10,000,000 of aggregate tax-exempt governmental or Section 501(c)(3) obligations are reasonably anticipated to be issued by the City during the calendar year. The City will represent that the reasonably anticipated amount of its tax-exempt governmental and 501(c)(3) obligations which will be issued during the calendar year 2001 and 2002 will not exceed $10,000,000 in either year. In order to maintain the exemption from federal income taxes of interest on the Obligations and for no other purpose, the Issuer covenants in the authorizing resolution to comply with the provisions of the Code. Until and unless, and except to the extent in the opinion of Bond Counsel, the following are not necessary to maintain the tax-exempt states of the Obligations, the Issuer makes certain covenants, representations and warranties with respect to the Obligations. The Issuer covenants to submit in a timely manner all reports, accounting and information to the Internal Revenue Service and w/Il take whatever action is necessary within its power to assure the continued tax exemption on the Obligations and to take whatever action is necessary within its power to comply with the applicable law and regulations in order to maintain tax exemption with respect to the Obligations. The resolution authorizing the issuance of the Obligations may be amended without the consent of any owner of the Obligations for the purpose of taking action necessary to maintain tax exemption with respect to the Obligations under applicable federal law or regulations. 27 LITIGATION There is no litigation now pending or, to the knowledge of City officials, threatened which questions the validity of the Obligations or of any proceedings of the City taken with respect to the issuance or sale thereof. It is the opinion of the City Attorney, based upon the past experience of the payment of claims and judgment amounts, that there are presently no outstanding claims, litigation, impending litigation or contingent liabilities which would exceed the funds accumulated for this purpose and funds currently appropriated by the City Council for these purposes, and that outstanding claims and suits would not materially affect the financial position of the City as of the date of this Official Statement. CLOSING DOCUMEN~I'S Simultaneously with the delivery of and payment for the Obligations by the original purchaser thereof, the City will furnish to the original purchaser the customary closing documents in form satisfactory to Bond Counsel. CERTIFICATION The City will furnish a statement to the effect that this Official Statement, to the best of its knowledge and belief as of the date of sale and the date of delivery, is tree and correct in all material respects and does not contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made herein, in light of the circumstances under which they were made, not misleading. LEGAL MATTERS Legal matters incident to the authorization and issuance of the Obligations are subject to the opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C., of Des Mofues, Iowa, Bond Counsel, as to validity and tax exemption. Bond Counsel has not participated in the preparation of this Official Statement. MISCELLANEOUS Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The execution and delivery of this Official Statement by its Finance Director has been duly authorized by the City. CITY OF DUBUQUE, IOWA By: /s/ Ken TeKinoe Finance Director 28 (This page has been left blank intentionally.) APPENDIX A Financial Statements The auditors have not performed any additional review and have not consented to the inclusion of the repor~ or exVcacts from the repor~ in this Official Statement. The consent of the auditors was not sought by the City. (This page has been left blank intentionally.) .APPENDIX B Form of Legal Opinion (This page has been left blank intentionally.) AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. Aqq'ORNEYS AT LAW KENNETH H. HAYNIE WILLIAM J. NOTH STEVEN L EERCK OFCOUNSEL JOHN F. MCKINNEY, JR. DAVID SWINTON STEVEN M. NADEL PAUL F. AHLERS 100 COURT AVENUE, SUITE RICHARD G. SANTI LINDA L. KNIEP ELIZABETH A. GROB H. R]CHAP. D EM]TH ED~ H. BI3TLE JOHN D. HINTZE JENNIFER A. CLENDENIN ROBERT G. ALLBEE We hereby certify that we have examined a certified transcript of the proceedings of the City Council and acts of administrative officers of the City of Dubuque, Iowa (the "Issuer"), relating to the issuance of General Obligation Bonds, Series 2001, by said Issuer, dated December 15, 2001, in the denomination of $5,000 or multiples thereof, in the aggregate amount of $9,500,000 (the "Bonds"). We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion as bond counsel. As to questions of fact material to our opinion, we have relied upon representations of the Issuer contained in the Resolution authorizing issuance of the Bonds (the "Resolution") and in the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify the same by independent investigation. We have not been engaged to or undertaken to review the accuracy, completeness or sufficiency of the Official Statement dated ,2001 or other offering material relating to the Bonds, and we express no opinion relating thereto. Based on our examination and in reliance upon the certified proceedings and other certifications described above, we are of the opinion, under existing law, as follows: 1. The Issuer is duly created and validly existing as a body corporate and politic and political subdivision of the State of Iowa with the corporate power to adopt and perform the Resolution and issue the Bonds. 2. The Bonds are valid and binding general obligations of the Issuer. 3. All taxable property in the territory of the Issuer is subject to ad valorem taxation without limitation as to rate or amount to pay the Bonds. Taxes have been levied by the Resolution for the payment of the Bonds and the Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent the necessary funds are not provided from other sources. 4. The interest on the Bonds is excluded from gross income for federal income tax purposes and interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, with respect to corporations (as defined for federal income tax purposes), such interest is included in adjusted current earnings for the purpose of determining the alternative minimum tax imposed on such corporations. We express no opinion regarding other federal income tax consequences caused by the receipt or accrual of interest on the Bonds. For the purpose of rendering the opinion set forth in paragraph numbered 4 above, we have assumed compliance by the Issuer with requirements of the Internal Revenue Code of 1986, as amended, that must be met subsequent to the issuance of the Bonds in order that interest thereon be and remain excluded from gross income for federal income tax purposes. Failure to comply with such requirements could cause the interest on the Bonds to be so included in gross income retroactive to the date of issuance of the Bonds. The Issuer has covenanted to comply with such requirements. It is to be understood that the rights of the holders of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. Respectfully submitted, AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. By: AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. We hereby certify that we have examined a certified transcript of the proceedings of the City Council and acts of administrative officers of the City of Dubuque, Iowa (the "Issuer"), relating to the issuance of General Obligation Bonds, Series 2002, by said Issuer, dated December 15,2001, in the denomination of $5,000 or multiples thereof, in the aggregate amount of $2,860,000 (the "Bonds"). We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion as bond counsel. As to questions of fact material to our opinion, we have relied upon representations of the Issuer contained in the Resolution authorizing issuance of the Bonds (the "Resolution") and in the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify the same by independent investigation. We have not been engaged to or undertaken to review the accuracy, completeness or sufficiency of the Official Statement dated ,2001 or other offering material relating to the Bonds, and we express no opinion relating thereto. Based on our examination and in reliance upon the certified proceedings and other certifications described above, we are of the opinion, under existing law, as follows: 1. The Issuer is duly created and validly existing as a body corporate and politic and political subdivision of the State of Iowa with the corporate power to adopt and perform the Resolution and issue the Bonds. 2. The Bonds are valid and binding general obligations of the Issuer. 3. All taxable property in the territory of the Issuer is subject to ad valorem taxation without limitation as to rote or amount to pay the Bonds. Taxes have been levied by the Resolution for the payment of the Bonds and the Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent the necessary funds are not provided from other sources. 4. The interest on the Bonds is excluded from gross income for federal income tax purposes and interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, with respect to corporations (as defmed for federal income tax purposes), such interest is included in adjusted current earnings for the purpose of determining the alternative minimum tax imposed on such corporations. We express no opinion regarding other federal income tax consequences caused by the receipt or accrual of interest on the Bonds. For the purpose of rendering the opinion set forth in paragraph numbered 4 above, we have assumed compliance by the Issuer with requirements of the Internal Revenue Code of 1986, as amended, that must be met subsequent to the issuance of the Bonds in order that interest thereon be and remain excluded from gross income for federal income tax purposes. Failure to comply with such requirements could cause the interest on the Bonds to be so included in gross income retroactive to the date of issuance of the Bonds. The Issuer has covenanted to comply with such requirements. It is to be understood that the rights of the holders of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. Respectfully submitted, AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. DCORNELLX301 I63\1\10422057 APPENDIX C Terms of Offering (Tl~is page has been left blank intentionally.) Terms of Offerin~ $9,500,000 General Obligation Bonds, Series 2001 City of Dubuque, Iowa NOTICE IS HEREBY GIVEN that these Series 2001 Bonds will be offered for sale according to the following terms: TIME AND PLACE Sealed bids for the purchase of $9,500,000 General Obligation Bonds, Series 2001 (the "Series 2001 Bonds") will be received by the City &Dubuque, Iowa (the "City") on Monday, December 3, 2001 until i 1:00 A.M. Central Time, at City Hall, 50 West 13t~ Street, Dubuque, Iowa 52001-4864. Consideration of the award of the Series 2001 Bonds will be by the City Council at a meeting on the same day. The bid offering to purchase the Series 2001 Bonds upon the terms specified herein and most favorable to the City will be accepted unless all Bids are rejected. No bid may be altered or withdrawn after the time appointed for opening Bids. The Series 2001 Bonds are valid and binding general obligations of the City. All taxable property in the territory of the City is subject to ad valorem taxation without limitation as to rate or amount to pay the Series 2001 Bonds. PURPOSE The proceeds of the Series 2001 Bonds will be used for the purpose of financing various projects at the Mississippi River National Education and Conference Center. DATE, MATUR1111~, AND REDEMPTION The Series 2001 Bonds will be dated originally as of December 15, 2001, will be fully registered bonds in the denomination of $5,000 each, unless designated otherwise by the purchaser within 48 hours after award of sale, and will mature on June 1, in the following years in the following amounts: Year Amount Year Amount 2005 $ 670,000 2014 $ 550,000 2006 180,000 2015 575,000 2007 410,000 2016 590,000 2008 425,000 2017 620,000 2009 490,000 2018 650,000 2010 530,000 2019 680,000 201I 545,000 2020 715,000 2012 560,000 2021 750,000 2013 560,000 The Series 2001 Bonds maturing on June 1, 2010 and thereafter are subject to redemption prior to their stated date of maturity, at the option of the City on June 1, 2009 any date thereafter, in whole or in part, at a price of par plus accrued interest to the redemption date. IN I'EREST PAYABLE Interest on the Series 2001 Bonds is payable semi-annually commencing December 1, 2002. Interest will be computed on a 360-day year, 30~ay month basis, to the owners of record as of the close of business on the fifteenth of the immediately preceding month. Payments coming due on a non-business day will be paid on the next business day. BOOK-ENTRY-ONLY SYSTEM The Series 2001 Bonds will be issued as fully registered securities in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York ("DTC'). DTC will act as securities depository of the Series 2001 Bonds. Individual purchases will be made in book-entry form only in the principal amotmt of $5,000 and integral multiples thereof. Purchasers will not receive certificates representing their interest in the Series 2001 Bonds purchased. Principal and interest will be paid to DTC, which will in turn remit such principal and interest to its participants, for subsequent disbursement to the beneficial owner of the Series 2001 Bonds. The City will assume no obligation for the assignment of CUSIP numbers to the Series 2001 Bonds or for the correctness of any such numbers printed thereon, but the City will permit such printing to be done at the expense of the purchaser, if the purchaser waives any extension of the time of the delivery of the Series 200I Bonds caused thereby. ~I(PE OF BID Sealed bids for not less than $9,405,000 (99.0% of Par) must be mailed or delivered to the undersigned and must be received prior to the time specified above for opening bids. Each bid must be enclosed in a sealed envelope, marked on the outside "Bid for $9,500,000 General Obligation Bonds, Series 2001, City of Dubuque, Iowa." Rates must be in integral multiples of 1/8 or 1/20 of 1%, in non-descending order, one rate per maturity. Interest will be computed on a 360-day-year basis. GOOD FAHIt DEPOSIT A Good Faith Deposit ("Deposit") in the form of a certified or a cashier's check or a Financial Surety Bond in the amount of $95,000, payable to the order of the City, is required for each bid to be considered. If a check is used, it must accompany each bid. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Iowa, and such bond must be submitted to the City or its Financial Advisor prior to the opening of the bids. The Financial Surety Bond must identify each proposer whose Deposit is guaranteed by such Financial Surety Bond. If the Series 2001 Bonds are awarded to a proposer utilizing a Financial Surety Bond, then that purchaser ("Purchaser") is required to submit its Deposit to the City or its Financial Advisor in the form of a cashier's check (or wire transfer such amount as instructed by the City or its Financial Advisor) not later than 3:30 p.m., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Series 2001 Bonds. In the event the Purchaser fails to honor its accepted Bid, the Deposit will be retained by the City. AWARD Bids will be compared on the basis of true interest cost (TIC). The bid offering the lowest tree interest cost will be deemed most favorable. The tree interest cost is computed as the discount rate which, when used with semiannual compounding to determine the present worth of the principal and interest payments as oftbe date of the Series 2001 Bonds, produces an amount equal to the purchase price. If two or more bids provide the same lowest tree interest rate, the City shall determine which bid shall be accepted, and such determination shall be final. Upon award of the Series 2001 Bonds, the successful proposer shall advise the City of the initial reoffering price to the public of the Series 2001 Bonds. Not less than fifteen days after award of the Series 2001 Bonds, the successful proposer shall furnish to the City a certificate in form and substance acceptable to bond counsel (a) confirming the initial reoffering prices, (b) certifying that a bona fide initial reoffering of the Series 2001 Bonds has been made to the public (excluding bond houses, brokers, and other intermediaries), and (c) stating the price at which a substantial portion of the Series 2001 Bonds were sold to the public (excluding bond houses, brokers and other intermediaries). The City Council reserves the right to reject any and all bids, to waive any informality in any Bid and to adjourn the sale. Within 40 days following the date of their award, the Series 2001 Bonds will be delivered without cost to the Pumhaser. Delivery will be subject to receipt by the Purchaser of the legal opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C., and of customary closing papers, inclucYang non-litigation certificate. On the date of settlement, payment for the Series 2001 Bonds shall be made in federal or equivalent funds, which shall be received at the offices of the City, or its designee, not later than 1:00 P.M. Except as compliance with the terms of payment for the Series 2001 Bonds shall have been made impossible by action of the City or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. Delivery of the Series 2001 Bonds is anticipated on or about December 27, 2001. CONTINUING DISCLOSURE In order to permit proposers for the Series 2001 Bonds and other participating underwriters in the primary offering of the Series 2001 Bonds to comply with paragraph Co)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the "Rule"), the Issuer will covenant and agree, for the benefit of the registered holders or beneficial owners from time to time of the outstanding Series 2001 Bonds, in the Bond Resolution, to provide annual reports of specified information and notice of the occurrence of certain events, if material, as hereinafter described (the "Disclosure Covenants"). The information to be provided on an annual basis, the events as to which notice is to be given, if material, and a summary of other provisions of the Disclosure Covenants, including termination, amendment and remedies, are set forth in Appendix D to this Official Statement. OFFICIAL STATEMENTS The City has prepared an Official Statement dated November 27, 2001, which the City deems to be a preliminary or "near-finaF' Official Statement as that term is defined in Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"). The Official Statement is available on the world wide web at www.evensendodee.com, and to prospective proposers who request copies from the City or its financial advisor, Evensen Dodge, Inc. Not later than seven business days following the award of the Series 2001 Bonds, the City shall provide a reasonable number of copies of the Final Official Statement, as that term is used in the Rule, to the successful purchaser of the Series 2001 Bonds. The Final Official Statement will be the Official Statement dated November 27, 2001, and the addendum which includes the maturity date and amount, interest rate and reoffering yield or price, and any other information required by law. Any such addendum shall, on or after the date thereof, be fully incorporated in the Final Official Statement by reference. The successful proposer will be supplied with Final Official Statements in a quantity sufficient to meet their request. A reasonable number of copies (100) of the Final Official Statement will be furnished without cost. Terms of Offering $2,860,000 General Obligation Bonds, Series 2002 City of Dubuque, Iowa NOTICE IS HEREBY GIVEN that these Series 2002 Bonds will be offered for sale according to the following terms: TIME AND PLACE Sealed bids for the purchase of $2,860,000 General Obligation Bonds, Series 2002 (the "Series 2002 Bonds") wiI1 be received by the City of Dubuque, Iowa (the "City") on Monday, December 3, 2001 until 11:00 A.M. Central Time, at City Hall, 50 West 13t~ Street, Dubuque, Iowa 52001-4864. Consideration of the award of the Series 2002 Bonds will be by the City Council at a meeting on the same day. The bid offering to purchase the Series 2002 Bonds upon the terms specified herein and most favorable to the City will be accepted unless all Bids are rejected. No bid may be altered or withdrawn after the time appointed for opening Bids. SECURITY The Series 2002 Bonds are valid and bhading general obligations of the City. All taxable property in the territory of the City is subject to ad valorem taxation without limitation as to rate or amount to pay the Series 2002 Bonds. PURPOSE The proceeds of the Series 2002 Bonds will be used for the purpose of financing various projects at the Mississippi River National Education and Conference Center. DATE, MATURITIES, AND REDEMPTION The Series 2002 Bonds will be dated originally as of December 15, 2001, will be fully registered bonds in the denomination of $5,000 each, unless designated otherwise by the purchaser within 48 hours after award of sale, and will mature on June 1, in the following years in the following amounts: Year Amount Year Amount 2004 $165,000 2013 $145,000 2005 115,000 2014 160,000 2006 120,000 2015 170,000 2007 125,000 2016 175,000 2008 130,000 2017 185,000 2009 125,000 2018 195,000 2010 130,000 2019 205,000 2011 135,000 2020 215,000 2012 140,000 2021 225,000 The Series 2002 Bonds maturing on June 1, 2010 and thereafter are subject to redemption prior to their stated date of maturity, at the option of the City on June 1, 2009 any date thereafter, in whole or in part, at a price of par plus accrued interest to the redemption date. INTEREST PAYABLE Interest on the Series 2002 Bonds is payable semi-armually commencing December 1, 2002. Interest will be computed on a 360-day year, 30-day month basis, to the owners of record as of the close of business on the fifteenth of the immediately preceding month. Payments coming due on a non-business day will be paid on the next business day. BOO K-EaNTRY-ONLY SYSTEM The Series 2002 Bonds will be issued as fully registered securities in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository of the Series 2002 Bonds. Individual purchases will be made in book-entry form only in the principal amount of $5,000 and integral multiples thereof. Purchasers will not receive certificates representing their interest in the Series 2002 Bonds purchased. Principal and interest will be paid to DTC, which will in tam remit such principal and interest to its participants, for subsequent disbursement to the beneficial owner of the Series 2002 Bonds. The City will assume no obligation for the assignment of CUSIP numbers to the Series 2002 Bonds or for the correctaess of any such numbers printed thereon, but the City will permit such printing to be done at the expense of the purchaser, if the purchaser waives any extension of the time of the delivery of the Series 2002 Bonds caused thereby. TYPE OF BID Sealed bids for not less than $2,831,400 (99.0% of Par) must be mailed or delivered to the undersi~aed and must be received prior to the time specified above for opening bids. Each bid must be enclosed in a sealed envelope, marked on the outside "Bid for $2,860,000 General Obligation Bonds, Series 2002, City of Dubuque, Iowa." Rates must be in integral multiples of 1/8 or 1/20 of 1%, in non-descending order, one rate per matority. Interest will be computed on a 360-day~year basis. GOOD F/~rlH DEPOSIT A Good Faith Deposit ("Deposit") in the form of a certified or a cashier's check or a Financial Surety Bond in the amount of $28,600, payable to the order of the City, is required for each bid to be considered. If a check is used, it must accompany each bid. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Iowa, and such bond must be submitted to the City or its Financial Advisor prior to the opening of the bids. The Financial Surety Bond must identify each proposer whose Deposit is guaranteed by such Financial Surety Bond. If the Series 2002 Bonds are awarded to a proposer utilizing a Financial Surety Bond, then that purchaser ("Purchaser") is required to submit its Deposit to the City or its Financial Advisor in the form ora cashier's check (or wire transfer such amount as instructed by the City or its Financial Advisor) not later than 3:30 p.m., C.T., on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. No interest on the Deposit will accrue to the Purchaser. The Deposit will be applied to the purchase price of the Series 2002 Bonds. In the event the Purchaser fails to honor its accepted Bid, the Deposit will be retained by the City. AWARD Bids will be compared on the basis of true interest cost (TIC). The bid offering the lowest true interest cost will be deemed most favorable. The true interest cost is computed as the discount rate which, when used with semiannual compounding to determine the present worth of the principal and interest payments as of the date of the Series 2002 Bonds, produces an amount equal to the purchase price. If two or more bids provide the same lowest true interest rate, the City shall determine which bid shall be accepted, and such determination shall be final. Upon award of the Series 2002 Bonds, the successful proposer shall advise the City of the initial reoffefing price to the public of the Series 2002 Bonds. Not less than fifteen days after award of the Series 2002 Bonds, the successful proposer shall furnish to the City a certificate in form and substance acceptable to bond counsel (a) confirming the initial reoffering prices, (O) certifying that a bona fide initial reoffefiug of the Series 2002 Bonds has been made to the public (excluding bond houses, brokers, and other intermediaries), and (c) stating the price at which a substantial portion of the Series 2002 Bonds were sold to the public (excluding bond houses, brokers and other intermediaries). The City Council reserves the right to reject any and all bids, to waive any informality in any Bid and to adjourn the sale. Within 40 days following the date of their award, the Series 2002 Bonds will be delivered without cost to the Purchaser. Delivery will be subject to receipt by the Purchaser of the legal opinion of Ahlers, Cooney, Donveiler, Haynie, Smith & Allbee, P.C., and of customary closing papers, including non-litigation certificate. On the date of settlement, payment for the Series 2002 Bonds shall be made in federal or equivalent funds, which shall be received at the offices of the City, or its designee, not later than 1:00 P.M. Except as compliance with the terms of payment for the Series 2002 Bonds shall have been made impossible by action &the City or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. Delivery of the Series 2002 Bonds is anticipated on or about January 9, 2002. CONTI1N~UING DISCLOSURE In order to permit proposers for the Series 2002 Bonds and other participating underwriters in the primary offering of the Series 2002 Bonds to comply with paragraph (o)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the "Rule"), the Issuer will covenant and agree, for the benefit of the registered holders or beneficial owners from time to time of the outstanding Series 2002 Bonds, in the Bond Resolution, to provide annual reports of specified information and notice of the occurrence of certain events, if material, as hereinafter described (the "Disclosure Covenants"). The information to be provided on an annual basis, the events as to which notice is to be given, if material, and a summary of other provisions of the Disclosure Covenants, including termination, amendment and remedies, am set forth in Appendix D to this Official Statement. OFFICIAL STATEMENTS The City has prepared an Official Statement dated November 27, 2001, which the City deems to be a preliminary or "near-final" Official Statement as that term is defined in Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"). The Official Statement is available on the world wide web at www.evensendodee.con~ and to prospective proposers who request copies from the City or its financial advisor, Evensen Dodge, Inc. Not later than seven business days following the award of the Series 2002 Bonds, the City shall provide a reasonable number of copies of the Final Official Statement, as that term is used in the Rule, to the successful purchaser of the Series 2002 Bonds. The Final Official Statement will be the Official Statement dated November 27, 2001, and the addendana which includes the maturity date and amount, interest rate and reoffefing yield or price, and any other information required by law. Any such addendum shall, on or after the date thereof, be fully incorporated in the Final Official Statement by reference. The successful proposer will be supplied with Final Official Statements in a quantity sufficient to meet their request. A reasonable number of copies (75) oftbe Final Official Statement will be furnished without cost. (This page has been left blank intentionally.) APPENDIX D Form of Continuing Disclosure Certificate (This page has been left blank intentionally.) Members of the City Council CPy of Dubuque, Iowa OFFICIAL BID FORM Sale Date: December 3, 2001 Members of the Council: For the principal amount of $2,860,000 General Obligation Bonds, Series 2002 legally issued and as described in the Terms of Offering, we will pay $ (not less than $2,831,400) plus accraed interest on the total principal of $2,860,000 to date of delivery, provided the Series 2002 Bonds bear the following interest rates: Interest Interest Year Amount Rate Year Amount Rate 2004 $165,000 __ % 2013 $145,000 % 2005 115,000 __ % 2014 160,000 % 2006 120,000 __ % 2015 170,000 % 2007 125,000 __ % 2016 175,000 % 2008 130,000 __ % 2017 185,000 % 2009 125,000 __% 2018 195,000 __ % 2010 130,000 __% 2019 205,000 __ % 2011 135,000 __% 2020 215,000 __ % 2012 I40,000 __% 2021 225,000 __ % The Series 2002 Bonds mature on June 1, in each of the years as indicated above and interest is payable December 1, 2002, and s~aianaually thereafter on June 1 and December 1 of each year. In making this offer, we accept the terms and conditions as defined in the Terms of Offering published in the Official Statement dated November 27, 2001. All blank spaces of this offer are intentional and are not to be construed as an omission. Oar good faith deposit in the amount of $28,600 has been or will be submitted in accordance with the Terms of Offering. NOT PART OF THIS BID: Explanatory Note: According to our computation, this bid involves the following: $ Net Interest Cost % True Interest Rate Respectfully submitted, Account Manager By_ (A list of account members is on the reverse side of this bid.) The foregoing offer is hereby accepted by and on behalf of the City of Dubuque, Iowa, this this 3rdday of December, 2001. Title Title Members of the City Council City of Dubuque, Iowa OFFICIAL BID FORM Sale Date: December 3, 2001 Members of the Council: For the principal amount of $9,500,000 General Obligation Bonds, Series 2001 legally issued and as described in the Terms of Offering, we will pay $ (not less than $9,405,000) plus accrued interest on the total principal of $9,500,000 to date of delivery, provided the Series 2001 Bonds bear the following interest rates: Interest Interest Year Amount Rate Year Amount Rate 2005 $ 670,000 __% 2014 $ 550,000 % 2006 180,000 __% 2015 575,000 % 2007 410000 __% 2016 590,000 % 2008 425,000 __% 2017 620,000 __ 2009 490,000 % 2018 650,000 __ 2010 530,000 __% 2019 680,000 2011 545,000 __% 2020 715,000 2012 560,000 __% 2021 750,000 __% 2013 560,000 The Series 2001 Bonds mature on June 1, in each of the years as indicated above and interest is payable December 1, 2002, and s~miannually thereafter on June 1 and December 1 of each year. In making this offer, we accept the terms and conditions as defined in the Terms of Offering published in the Official Statement dated November 27, 2001. All blank spaces of this offer are intentional and are not to be construed as an omission. Our good faith deposit i~ the amount of $95,000 has been or will be submitted in accordance with the T~ms of Offering. NOT PART OF THIS BID: Explanatory Note: According to our computation, this bid involves the following: $ Net Interest Cost % True Interest Rate Respect~lly submitted, Account Manager By_ (A list of account members is on the reverse side of this bid.) The foregoing offer is hereby accepted by and on behalf of the City of Dubuque, Iowa, this 3 day of December, 2001. Title Title AFILERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. ATTORNEYS AT LAW 100 COURT AVENUE~ SUITE 600 DES MO[NFS, IOWA 50309-2231 htr p'/A~vw.ah le rslaw.com TELEPHONE 515-243-7611 TELECOPIER 515-243~2149 KIENNETH H. HAYNIE WILLIAM J. NOTH STEVEN L. S£RCK OF COUNSEL BY OVERNIGHT DELIVERY November 26, 2001 Ms. Pauline J. Joyce Director of Administrative Services City of Dubuque 50 W. 13th Street Dubuque, Iowa 52001 $9,500,000 General Obligation Bonds, Series 2001 $2,860,000 General Obligation Bonds, Series 2002 Dear Ms. Joyce: With this letter please find enclosed proceedings for the sale date covering the reception of bids and award of the Bonds to the lowest bidders and forms of two resolutions awarding the Bonds. Sealed bids for the Bonds should be received by the Finance Director and listed in the minutes. After a final call for sealed bids, the bids should then be opened and the best bid recorded. All bids should then be referred to the Council for award of the Bonds. In each case, the Bonds are to be sold to the best bidder. The Notices of Bond Sale set out the restrictions on the type of interest rates which may be bid, as well as the number of rates. Each bid should be reviewed for compliance with the terms of sale. Different interest rates may be bid for the issue and each interest rate must be in a multiple of one-eighth or one-twentieth of one percent. Each bidder is required to furnish a bid check or Financial Surety Bond in the mount described in the appropriate Notice. The check of the successful bidders for each issue should be held uncashed as your security that the bidder will take the Bonds as agreed upon when the same have been printed and are ready for delivery. Extra copies of the procedure are enclosed to be completed as the originals and certified to our office. November 26, 2001 Page 2 Extra copies of the procedure are enclosed to be completed as the originals and certified to our office. If any questions arise, please do not hesitate to call me. Yours very truly, William J. Noth FOR THE FIRM WJN:dc encl. cc: Ken TeKippe Barry Lindahl David Dirks DCORNELL~301756~1\10422057 CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Dubuque, Iowa (the "Issuer") in connection with the issuance of $9,500,000 General Obligation Bonds, Series 2001 (the "Bonds") dated December 15, 2001. The Bonds are being issued pursuant to a Resolution of the Issuer approved on December 3 ., 2001 (the "Resolution"). The Issuer covenants and agrees as follows: SECTION 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). SECTION 2. Defmitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate nnless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Dissemination Agent" shall mean any Dissemination Agent designated in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation. "Holders" shall mean the registered holders of the Bonds, as recorded in the registration books of the Registrar. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate. "Municipal Securities Rulemaldng Board" or "MSRB" shall mean the Municipal Securities Rulemaking Board, 1900 Duke Street, Suite 600, Alexandria, VA 22314. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories currently approved by the Securities and Exchange Commission are set forth in Exhibit B. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State" shall mean the State of Iowa. "State Repository" shall mean any public or private repository or entity designated by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Certificate, there is no State Repository. SECTION 3. Provision of Armual Reports. (a) The Issuer shall, or shall cause the Dissemination Agent to, not later than two hundred ten (210) days after the end of the Issuer's fiscal year (presently June 30th), commencing with the report for the 2000/2001 fiscal year, provide to each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross- reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). Not later than fifteen (15) business days prior to said date, the Issuer shall provide the Annual Report to the Dissemination Agent (if other than the Issuer). If the Issuer is unable to provide to the Repositories an Annual Report by the date required in subsection (a), the Issuer shall send a notice to the Municipal Securities Rulemaking Board and the State Repository, if any, in substantially the form attached as Exh/bit (c) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and the State Repository, if any, and (ii) (if the Dissemination Agent is other than the Issuer), file a report with the Issuer certifying that the Annual report has been provided pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Annual Reports. The Issuer's Annual Report shall contain or incorporate by reference the following: 1. The audited financial statements of the Issuer for the prior fiscal year, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under State law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with generally accepted accounting principles, noting the discrepancies therefrom and the effect thereof. If the Issuer's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. 2. A table, schedule or other information reflecting certain property tax information, prepared as of the end of the preceding fiscal year, of the type contained in the tables included in the fmal Official Statement under the caption "Property Tax Information." 3. A table, schedule or other information reflecting certain debt information, prepared as of the end of the preceding fiscal year, of the type contained in the tables included in the final Official Statement under the caption "Debt Information." 4. A table, schedule or other information reflecting certain financial information, prepared as of the end of the preceding fiscal year, of the type contained in the tables included in the final Official Statement under the caption "Financial Information." Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Issuer shall clearly identify each such other document so included by reference. SECTION 5. Reporting of Sigrdficant Events. Pursuant to the provisions of this Section 5, the Issuer shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material: (2) (3) (4) (6) (a) (7) (8) (9) principal and interest payment delinquencies; non-payment related defaults; unscheduled draws on debt service reserves reflecting financial difficulties; unscheduled draws on credit enhancements reflecting financial difficulties; substitution of credit or liquidity providers, or their failure to perform; adverse tax opinions or events affecting the tax- exempt status of the security; modifications to rights of security holders; bond calls; defeasances; (10) release, substitution, or sale of property securing repayment of the securities; and (11) rating changes. Whenever the Issuer obtains the knowledge of the occurrence of a Listed Event, the Issuer shall as soon as possible determine if such event would be material under applicable federal securities laws. (c) If the Issuer determines that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the Issuer shall promptly file a notice of such occurrence with the Municipal Securities Rulemaking Board and the State Repository. Notwithstanding the foregoing, notice of Listed Events described in subsections (a) (8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Bonds pursuant to the Resolution. SECTION 6. Termination of Reporting Obligation. The Issuer's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds or upon the Issuer's receipt of an opinion of nationally recognized bond counsel to the effect that, because of legislative action or final judicial action or administrative actions or proceedings, the failure of the Issuer to comply with the terms hereof will not cause Participating Underwriters to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended. If such termination occurs prior to the final maturity of the Bonds, the Issuer shall give notice of such termination in the same manner as for a Listed Event under Section 5(c). SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be the Issuer. SECTION 8. Amendment: Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Section 3(a), 4, or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver either (i) is approved by the Holders of the Bonds in the same manner as provided in the Resolution for amendments to the Resolution with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds. In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case ora change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(c), and (ii) the Annual Report for the year in which the change is made will present a comparison or other discussion in narrative form (and also, if feasible, in quantitative form) describing or illustrating the material differences between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. SECTION 9. Additional Informatior~ Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 10. Default. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this Disclosure Certificate. Direct, indirect, consequential and punitive damages shall not be recoverable by any person for any default hereunder and are hereby waived to the extent permitted by law. A default under this Disclosure Certificate shall not be deemed an event of default under the Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance. SECTION 11. Duties, Immunities and Liabilities of Dissemination Agent The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The obligations of the Issuer under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Dissemination Agent, the Participating Underwriters and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Date: December 3 ., 2001 CITY OF DUBUQUE, IOWA ATFEST: By: ~Gt~ Clerk EXIffIRIT B Nationally Recognized Municipal Securities Information Repositories currently approved by the Securities and Exchange Commission: Bloomberg Municipal Repositories P. O. Box 840 Princeton, NJ 08542-0840 E-Mall: Munis~Bloomberg.com Phone: (609) 279-3225 FAX: (609) 279-5962 E-mail: Munis~Bloomberg.com DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 E-Mail: nrmsir@ dpcdata, com Phone: (201) 346-0701 FAX: (201) 947-0107 Standard & Poor's J.J. Kenny Repository 55 Water Street, 45th Floor New York, NY 10041 Phone: (212) 438-4595 FAX: (212) 438-3975 E-Mail: nrmsir_~sandp.com Interactive Data Atto: Repository 100 Williams Street New York, NY 10038 Phone: (212) 771-6899 FAX: (212) 771-7390 E-Mail: NRMSlR~interacfivedata.com Website:http://www. IntemctiveData.com DCORNELLX301158\1\10422057 SENT BY: 12- 8- 1 ; 8:88P~ ; EVENSEN DODGE INC~ 808 588 0880;# OFFICIAL BID FOR Member~ of the City Council City of Dubmlue~ Iowa Sole Date: De~ember 3, 2001 Members of rig Councl/: For be p~cipal ammmt of $9,500,000 General Obl~satk,n Bonds, $er[cs 2001 legally L~ued sad as described in the Terms of Offering, we will pay $9,40S,000.00 (n~t less fl~au $9,405,000) plus accrued interest on the total principal of $9,$00,000 to date of delivery, provided the geri~s 2001 Bonds bear the following ila'erest roles; Intct~ ~l'~ar A~ouut ~ate Year ~ 2~ $ 670,000 4.~A 2014 $ ~s0,~ 2~ 1 gO,~o 4.~% 2015 $75,0~ 2007 410,~0 4.~A 2016 590,000 2008 4~,~ 4.~0% 20[7 620,~0 4.750% 20~ 490,~ 4.0~% 2018 630,0~ 4.75~ 2010 530,~ 4.1~% 2019 6gO,~O 4.S00% 2011 ~5,0~ 4.25~A 2020 715.~ 4;875% 2012 5~,~0 4.350% 2021 750,0~ 4D00% 2013 560,~ 4.45~A :eleh02S-e*'i.es 200.1B°nds mature on Jun¢ l, ln each ofth~ years as indicated ab v ' · ,~ly~c~on]~ela~dD~lofea~. o cand~st~s~yable~l, ~ ~g ~s o~, we ac~ ~ ~ ~d ~Mifiom ~ dc~ed ~ ~e Te~ of Offing p~l~d ~ ~ O~ S~t~m ~ted Nove~ 27, 2001, All b~nk ~ces of~ off~ ~ in~fio~ and ~ ~t ~ ~ ~ ~ ~ O~n. Out good ~i~ d~o~it ~ ~ amo~t of $9~,0~ ~s ~ m ~ be ~b~d ~ a~ce wi~ ~ NOT P~T OF ~S BID: Explanatory Note: According to our computat. Jort, this bid involves a~c following: $ 5,471,154.86 Net Interest Cost 4.6852 % True Interest Rate list of acr. ount memb~r~ is on thc rcv~w$c s'i{]~ of t;~i$ bid.) The foregoing offer is hereby accepted by ami on 2~~ be, all of the City of DuBuqee, Iowa, this 3tOday of December, Klm '1 eKippe, Fi~sme Di~edor CONTINUING DISCLOSURE CERTII~ICATE This ContinUing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Dubuque, Iowa (the "Issuer") in connection with the issuance of $2,860,000 General Obligation Bonds, Series 2002 (the "Bonds") dated December 15, 2001. The Bonds are being issued pursuant to a Resolution of the Issuer approved on December 3 ., 2001 (the "Resolution"). The Issuer covenants and agrees as follows: SECTION 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). SECTION 2. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Repoit" shall mean any Annual Report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate~ "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Dissemination Agent" shall mean any Dissemination Agent designated in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation. "Holders" shall mean the registered holders of the Bonds, as recorded in the registration books of the Registrar. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate. "Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal Securities Rulemaking Board, 1900 Duke Street, Suite 600, Alexandria, VA 22314. '2qational Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories currently approved by the Securities and Exchange Commission are set forth in Exhibit B. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State" shall mean the State of Iowa. "State Repository" shall mean any public or private repository or entity designated by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Certificate, there is no State Repository. SECTION 3. Provision of Annual Reports. (a) The Issuer shall, or shall cause the Dissemination Agent to, not later than two hundred ten (210) days after the end of the Issuer's fiscal year (presently June 30th), commencing with the report for the 2000/2001 fiscal year, provide to each Repository an Annual Report which is consistent with the requirements of Section4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross- reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's fiscal year clxanges, it shall give notice of such change in the same manner as for a Listed Event trader Section 5(c). Not later than fifteen (15) business days prior to said date, the Issuer shall provide the Annual Report to the Dissemination Agent (if other than the Issuer). If the Issuer is unable to provide to the Repositories an Annual Report by the date required in subsection (a), the Issuer shall send a notice to the Municipal Securities Rulemaking Board and the State Repository, if any, in substantially the form attached as Exhibit (c) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and the State Repository, if any, and (ii) (if the Dissemination Agent is other than the Issuer), file a report with the Issuer certifying that the Annual report has been provided pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Annual Reports. The Issuer's Annual Report shall contain or incorporate by reference the following: 1. The audited financial statements of the Issuer for the prior fiscal year, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under State law, as in effect from time to time, or, if and to the extent such f'mancial statements have not been prepared in accordance with generally accepted accounting principles, noting the discrepancies therefrom and the effect thereof. If the Issuer's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited fmancial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same maunm' as the Annual Report when they become available. 2. A table, schedule or other information reflecting certa'm property tax information, prepared as of the end of the preced'mg fiscal year, of the type conta'med in the tables included in the final Official Statement under the caption "Property Tax Information." 3. A table, schedule or other information reflecting certain debt information, prepared as of the end of the preceding fiscal year, of the type contained in the tables included in the final Official Statement under the caption "Debt Information." 4. A table, schedule or other information reflecting certain fmancial information, prepared as of the end of the preceding fiscal year, of the type contained in the tables included in the final Official Statement under the caption "Financial Information." Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Corrunission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Issuer shall clearly identify each such other document so included by reference. SECTION 5. Reporting of Significant Events. (a) Pursuant to the provisions of this Section 5, the Issuer shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax- exempt status of the security; (7) modifications to rights of security holders; (8) bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the securities; and (11) ratingchanges. (b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed Event, the Issuer shall as soon as possible determine if such event would be material under applicable federal securities laws. (c) If the Issuer determines that knowledge of the occurrc~nce of a Listed Event would be material under applicable federal securities laws, the Issuer shall promptly file a notice of such occurrence with the Municipal Securities Rulemaking Board and the State Repository. Notwithstanding the foregoing, notice of Listed Events described in subsections (a) (8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Bonds pursuant to the Resolution. SECTION 6. Termination of Reporting Obligation. The Issuer's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds or upon the Issuer's receipt of an opinion of nationally recognized bond counsel to the effect that, because of legislative action or final judicial action or administrative actions or proceedings, the failure of the Issuer to comply with the terms hereof will not cause Participating Underwriters to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended. If such termination occurs prior to the fmal maturity of the Bonds, the Issuer shall give notice of such termination in the same manner as for a Listed Event under Section 5(c). SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be the Issuer. SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: If the amendment or waiver relates to the provisions of Section 3(a), 4, or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver either (i) is approved by the Holders of the Bonds in the same manner as provided in the Resolution for amendments to the Resolution with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds. In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(c), and (ii) the Annual Report for the year in which the change is made will present a comparison or other discussion in narrative form (and also, if feasible, in quantitative form) describing or illustrating the material differences between the f'mancial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. SECTION 9. Additional Informatior~ Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 10. Default. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this Disclosure Certificate. Direct, indirect, consequential and punitive damages shall not be recoverable by any person for any default hereunder and are hereby waived to the extent permitted by law. A default under this Disclosure Certificate shall not be deemed an event of default under the Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance. SECTION 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The obligations of the Issuer under this Section shall survive resignation or removal of the Dissemination Agent and payment or,he Bonds. SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Dissemination Agent, the Participating Underwriters and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Date: December 3 _,2001 C1TY OF DUBUQUE, IOWA ATIEST: By: EXltlBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: Dubuque, Iowa Name of Bond Issue: $2,860,000 General Obligation Bonds, Series 2002 Dated Date of Issue: December 15, 2001 NOTICE IS HEREBY G1VEN that the Issuer has not provided an Annual Report with respect to the above-named Bonds as required by Section 3 of the Continuing Disclosure Certificate delivered by the Issuer in connection with said Bonds. The Issuer anticipates that the Annual Report will be filed by Dated: CITY OF DUBUQUE, IOWA Its: EXIfl~IT B Nationally Recogaized Municipal Securities Information Repositories currently approved by the Securities and Exchange Commissiom Bloomberg Municipal Repositories P. O. Box 840 Princeton, NJ 08542-0840 E-Mail: Munis~Bloomberg.com Phone: (609) 279-3225 FAX: (609) 279-5962 E-mail: Munis~Bloomberg.com DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 E-Mail: nrmsir~ dpcdata.com Phone: (201) 346-0701 FAX: (201) 947-0107 Standard & Poor's J.J. Kenny Repository 55 Water Street, 45th Floor New York, NY 10041 Phone: (212) 438-4595 FAX: (212) 438-3975 E-Mail: nrmsir_~sandp.com Interactive Data Attn: Repository 100 Williams Street New York, NY 10038 Phone: (212) 771-6899 FAX: (212) 771-7390 E-Mail: NRMSIR~interactivedata.com Website:http://www. IntemctiveData.com DCOILN]ELLX301160\1\10422057 WORKSHEET $9,500,000 General Obligation Bonds, Series 2001 City of Dubuque, Iowa Dated: 15-Dec-01 Due: June 1, 2005/2021 Principal year Amount 15-Dec-01 I -Jun-05 $ 670,000 1-Jun-06 180,000 1-Jtm-07 410,000 1 -Jun-08 425,000 1-Jun-09 490,000 1 -Jun-10 530,000 1-Jun-11 545,000 i-Jun-12 560,000 1-Jun-13 560,000 1-Jun-14 550,000 1-Jun-iS 575,000 1-Jun-16 590,000 1-Jun-17 620,000 l-Jun-18 650,000 1-Jtm-19 680,000 l-Jun-20 715,000 1 -Jun-21 750,000 AVERAGE MATURITY: BID OPENING: PRICE: INTEREST P~TES: CALLABILITY: Cumulative Run B0ndYears Bond Years 3.46 2318.94 2318.94 4.46 803.00 3121.94 5.46 2239.06 5361.00 6.46 2745.97 8106.97 7.46 3655.94 11762.92 8.46 4484.39 16247.31 9.46 5156.31 21403.61 10.46 5858.22 27261.83 11.46 6418.22 33680.06 12.46 6853.61 40533.67 13.46 7740.14 48273.81 14.46 8532.06 56805.86 15.46 9585.89 66391.75 16.46 10699.72 77091.47 17.46 11873.56 88965.03 18.46 13199.69 102164.72 19.46 14595.83 116760.56 116 ?~o q~ 1 -Jun-05 I -Jtm-06 1 -Jun-07 1 -Jun-08 1-Jun-09 l-Jun-10 l-Jun-il l-Jun-12 l=Jun=13 l-Jun-14 l=Jun-15 l-Jun-16 1 -Jun- 17 1-Jun-18 l-Jun-19 1 -Jun-20 1 -Jun-21 12.2906 11:00 A.M. Central Time on Monday, December 3, 2001. Not less than $9,405,000 (99.0% of Par) plus accrued interest to the delivery date. Rates are to be in inte~al multiples of 1/8 or 1/20 of 1%, in non-descending order. The Bonds maturing in the years June 1, 2010 and thereafter are subject to prior redemption on June 1,2009 at a price of par plus accrued interest to the date of redamption~ WORKSHEET $2,860,000 General Obligation Bonds, Series 2002 City of Dubuque, Iowa Dated: 15-Dec-01 Due: June 1, 2004/2021 Principal Cumulative year Amount Run Bond Years Bond Years 15-Dec-01 1-Jun-04 $ 165,000 2.46 406.08 406.08 I -Jun-05 115,000 3.46 398.03 804. I 1 1 -Jun-06 120,000 4.46 535.33 1339.44 1-Jun-07 125,000 5.46 682.64 2022.08 1-Jun-08 130,000 6.46 839.94 2862.03 I-Jun-09 125,000 7.46 932.64 3794.67 1-Jun-10 130,000 8.46 1099.94 4894.61 1-Jun~l 1 135,000 9.46 1277.25 6171.86 1-Jun-12 140,000 10.46 1464.56 7636.42 l-Jun-13 145,000 11.46 1661.86 9298.28 1-Jun-I4 160,000 12.46 1993.78 11292.06 1-Jun-15 170,000 13.46 2288.39 13580.44 1-Jun-16 175,000 14.46 2530.69 16111.14 1-Jun-17 185,000 15.46 2860.31 18971.44 l-Jtm-18 195,000 16.46 3209.92 22181.36 1-Jtm-19 205,000 17.46 3579.53 25760.89 1-Jun-20 215,000 18.46 3969.14 29730.03 1-Jun-21 225,000 19.46 4378.75 30139.64 Coupon __% % % % % % % % % __.% __.% % % % % % Year 1 -Jun-04 1 -Jun-05 1 -Jun-06 1-Jun-07 1 -Jun-08 1 -Jun-09 1 -Jun- 10 1 -Jun- 11 1-Jun-12 1-Jun-13 1-Jun~14 1 -Jun- 15 1-Jun-16 l-Jun-17 1-Jun-18 1-Jun-19 1 -Jun-20 1-Jun-21 AVERAGE MATU1LITY: BID OPENING: PRICE: INTEREST RATES: CALLABILrlT: 11.9261 11:00 A.M. Central Time on Monday, December 3, 2001. Not less than $2,831,400 (99.0% of Par) plus accrued interest to the delivery date. Rates are to be in integral multiples of 1/8 or 1/20 of 1%, in non-descending order. The Bonds maturing in the years June 1, 2010 and thereafter are subject to prior redemption on June 1, 2009 at a price &par plus accrued interest to the date of redemption. SENT BY: 12- 8- 1 ; 4:00PM ; EVE~SEN DODGE INC-* BY 589 0880;# 8/ 3 Membara of fl~ City Counc~ City of Dubuque, Iowa Sale Date: December 3, 2~01 Members of the Couadl: For the principal amount of $2,860,000 General Obligation Bon&. Series 2002 legally issued and u ¢lesanq0cd in tl~ Terrm of Off~ring, we vdll pay :$2,831,400.00 (not less than $2,831,400) plus accrued intreat on me total principal of!2.S60,OOO to tlato of dellve~y, provided the Series 2002 Bonds bear thc following interest ram: Inter tntermt ~'esr Amount ~ ,y~r Amount R. at? 2~ $165,~0 4,~& 2013 $145,0~ 2~$ 115,000 4.0~ 2014 1 ~,000 4~ 2~ 120,~ 4.~% 2015 170,~ 4.~A 20~ 125,~ 4.0~% 2016 175,~ 4.7~, 2~8 130.~ 4.~ 2019 l g$~ 4,750% 2~ 125,~0 4.1~ 2018 195,~ 4.8~% 2010 130,0~ 4~% 2019 205,~ 4.850% 2011 135,~ 4.300% 2020 215,~0 2012 140,~ 4.450% 2021 225,~ Thc Series 2002 Bomb mature on June 1, in each of the years as indicated above a~d inl~ca't ia payable D~cember 1, 2002, and seraia~r.~lJy thereafter on Jxlac I and December l of each year. In makiug this offer, we acc~t the terms and condilions ~ d~fined m the Terms of Offerlng published in thc Official Sta~ .mcat datM November 27, 2001. All blonk spacca of this offer arc intentional and arc not to b~ cousin:cd aa aa oration. Our good faith d~:~o$it in the amoum of $28,600 ha~ been er will be ~ubnfittcd ia a¢cordane~ with th~ Tram of Offering. NOT PART OF TIiIS BID: Explanatory lq'otc: According to our computation, this bid involves the f~llowing: 1,612,104.15 Interest Cost 4.7251% True ]Interest Pate 612-303-2116 ~S tla nctlr, p_~t t0nr_ ~Ta f J:rn~,.. (A ]i~ of ~ount memb~ is o~ the reVel'~ sid~ et The foregoing offer is hereby accepted by and on behalf of the City of Dubuqu¢, Iowa, ~ 3aday of l~ceanbzr, 2001. EXItlBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: Dubuque, Iowa Name of Bond Issue: $9,500,000 General Obligation Bonds, Series 2001 Dated Date of Issue: December 15, 2001 NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the above-named Bonds as required by Section 3 of the Continuing Disclosure Certificate delivered by the Issuer in connection with said Bonds. The Issuer anticipates that the Annual Report will be filed by Dated: CITY OF DUBUQUE, IOWA By: Its: CIG-18 2-91 STATE OF IOWA ) )ss COUNTY OF DUBUQUE ) I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of Dubuque, State of Iowa, and that as such Clerk and by full authority 15om the Council of said City, I have caused a NOTICE OF BOND SALE $9,500,000 GENERAL OBLIGATION BONDS, SERIES 2001 of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures a correct and complete copy, to be published as required by law in the Telegraph Herald, a legal newspaper published at least once weekly, printed wholly in the English language, published regularly and mailed through the post office of current entry for more than two years and which has had for more than two years a bona fide paid circulation recognized by the postal laws of the United States, and has a general circulation in the City, and that said Notice was published in said newspaper in all of the issues thereof published and circulated on the following date: 200i ~~my official signature at Dubuque, Iowa, this '9/¢4'~ day of ,2001. (s AL) DCORNELL~300882\l\10422057 Clerk CIG-18 2-91 STATE OF IOWA ) ) SS COUNTY OF DUBUQUE ) I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of said City, I have caused a NOTICE OF BOND SALE $2,860,000 GENERAL OBLIGATION BONDS, SERIES 2002 of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures a correct and complete copy, to be published as required by law in the Telegraph Herald, a legal newspaper published at least once weekly, printed wholly in the English language, published regularly and mailed through the post office of current entry for more than two years and which has had for more than two years a bona fide paid circulation recognized by the postal laws of the United States, and has a general circulation in the City, and that said Notice was published in said newspaper in all 0fthe issues thereof published and circulated on the following date: 2OOl ~-7 WITNE.SS my official signature at Dubuque, Iowa, this ~/~'~ day of ,2OOl. (SEAL) Clerk DCORNELL~300882\l\10422057 (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: Date of Meeting: Time of Meeting: Place of Meet'mg: The City Council of Dubuque, Iowa. December 3 ,2001. 6:30 o'clock P.M. Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for said meeting is as follows: $9,500,000 General Obligation Bonds, Series 2001 · Resolution directing sale. Such additional matters as are set forth on the additional 5 page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of said governmental body. ~C*fty Clerk, Dubuque'Tiowa CITY OF DUBUQUE, IOWA CITY COUNCIL MEETING MONDAY, DECEMBER 3, 2001 4:30 P.M. - DINNER - LIBRARY ROTUNDA 5:00 P.M. - SPECIAL MEETING - MASTER SITE PLANNING - PORT OF DUBUQUE 6:30 P.M. - REGULAR MEETING - LIBRARY AUDITORIUM INVOCATION REVEREND DR. DUANE LARSON, PRESIDENT, WARTBURG THEOLOGICAL SEMINARY CONSENT ITEMS (See Pages 3 - 5) The consent agenda items are considered to be routine and non-controversial and all consent items will be normally voted upon in a single motion without any separate discussion on a par[icular item. If you would like to discuss one of the Consent Items, please go to the microphone and be recognized by the Mayor and state the item you would like removed from the Consent Agenda for separate discussion and consideration. BOARDS/COMMISSIONS Interview for the following Board/Commission: Environmental Stewardship Advisory Commission (One unexpired term through 10/01104) Applicant: John Nemmers Appointment to the following Commission: Community Development Advisory Commission (One unexpired term through 2115/04 - Census Tract 3 - Currently vacant) Applicant: Richard J. Sullivan PUBLIC HEARINGS SUSPEND THE RULES Vacating Petition - Congress Circle Proof of publication on notice of public hearing and City Manager recommending the sale of City-owned right-of-way on Congress Cimle to Mr. N.J. Yiannias, representing Key City investment Company, in the amount of $35,750. Communication from N. J. Yiannias, President of Key City Investment Company, requesting to purchase Congress Circle for $35,750. RESOLUTION Disposing of City interest in Lot 2A of Westview Shopping Center Place No. 2, Dubuque County, Dubuque, Iowa Suggested Disposition: Receive and File; Adopt Resolution Ice Rinks and Murphy Tennis Courts Lighting Project Proofs of publication on notice of hearing on plans and specifications, and notice to bidders on the receipt of bids, and City Manager recommending award of the contract for the Ice Rinks and Murphy Tennis Courts Lighting Project to Westphal and Company, inc., in the amount of $108,852.34. RESOLUTION Adopting plans and specifications for the project RESOLUTION Awarding contract to Westphal and Company, Inc., in the amount of $108,852.34 Suggested Disposition: Receive and File; Adopt Resolutions REINSTATE THE RULES ACTION ITEMS Presentation of Vision Downtown Results Wm. David Rusk to make verbal presentation on the results of the Vision Downtown process. Suggested Disposition: Receive and File Bond Sale to Support America's River Project Components City Manager recommending the sale of $12,360,000 General Obligation Bonds. RESOLUTION Directing the sale of $9,500,000 General Obligation Bonds, Series 2001 RESOLUTION Directing the sale of $2,860,000 General Obligation Bonds, Series 2002 Suggested Disposition: Receive and File; Adopt Resolutions Ward and Precinct Ordinance Modifications City Manager recommending approval of modifications to the City's ward and precinct plan ordinance and map as requested by the State of Iowa and Dubuque County and approval of a revised precinct agreement with Dubuque County. ORDINANCE Amending the City of Dubuque, Iowa Code of Ordinances by repealing Chapter 17, Elections and adopting in lieu thereof a new Chapter 17, Elections, establishing boundaries for four (4) wards and twenty-one (21) precincts. Suggested Disposition: Receive and File; Motion B; Motion A Fiscal Year 2003 Policy Guidelines City Manager recommending adoption of the Fiscal Year 2003 Policy Guidelines for the City of Dubuque. Suggested Disposition: Receive and File; Approve 2 COUNCIL MEMBER REPORTS ITEMS TO BE SET FOR PUBLIC HEARING Dubuque Yacht Basin Lease Agreements City Manager recommending approval of amendments to three lease agreements between the City and Dubuque Yacht Basin to extend the termination dates. RESOLUTION Approving Fourth Amendment to Lease Agreement (April 8, 1970) between Dubuque Yacht Basin, Inc., and the City of Dubuque RESOLUTION Approving Second Amendment to Lease Agreement (February 5, 1974) between Dubuque Yacht Basin, Inc., and the City of Dubuque RESOLUTION Approving Fourth Amendment to Lease Agreement (November 23, 1987) between Dubuque Yacht Basin, Inc., and the City of Dubuque Suggested Disposition: Receive and File; Adopt Resolutions; Public Hearing 12/17/01 CONSENTITEMS Minutes Submitted Airport Commission of 10/22, 11/11 & 12; 11/15, and 11/18; Building Code Board of Appeals of 11/13; Cable TV Regulatory Commission of 11/14; City Council Proceedings of 11/13 and 11/19; Community Development Advisory Commission of 11/8; Enterprise Zone Commission of 11/15; Five Flags Commission of 11/19; Housing Code Appeals Board of 10/16; Park and Recreation Commission of 11/13 Proof of publication of City Council Proceedings of 11/5/01 Suggested Disposition: Receive and File Notice of Claims/Suits Carla Deutmeyer in estimated amount of $478.78 for personal injury; Dubuque Rescue Mission in undetermined amount for property damage; Dubuque Thunderbirds in estimated amount of $705.00 for missing property; Kenneth M..Metz in estimated amount of $2,429.75 for vehicle damage; Gerald Runde in estimated amount of $159.00 for property damage Suggested Disposition: Receive and File; Refer to Legal for Investigation/Report Corporation Counsel advising that the following claims have been referred to Public Entity Risk Services of Iowa, the agent for the Iowa Communities Assurance Pool: Randy Gracheck for Hank's Specialties for vehicle damage Corporation Counsel recommending settlement of the claim of Dale A. Hirsch for vehicle damage in the amount of $175.00 and that the Finance Director be directed to issue payment. Suggested Disposition: Receive and File; Concur; Finance Director to Issue Check 3 3. Citizen Communications Communication from Emily Frye, Isaiah Warnake, Abbie Sudmeier and Matt Klinkhammer of Dubuque Senior High School regarding the issue of smoking in public facilities in Dubuque. Communication from Walt Pregler, 2966 Shiras Avenue, regarding the plans for opening of Main Street; and City Manager providing a response. Communication of David S. Hartig requesting to purchase a portion of City-owned property located on Old Mill Road. Suggested Disposition: Receive and File; Refer to City Manager Industrial Park Land Sales City Manager providing a written response to questions from Bud Isenhart regarding industrial park land sales. Suggested Disposition: Receive and File Sutton Pool Tank Painting - Acceptance City Manager recommending acceptance of the Sutton Pool Tank Painting Project in the final contract amount of $43,051. RESOLUTION Accepting improvement RESOLUTION Approving final contract amount of $43,051 Suggested Disposition: Receive and File; Adopt Resolutions Oak Meadow Second Addition - Acceptance of Public Improvements City Manager recommending acceptance of the public improvements that Jim Stock Realty and Construction has completed in Oak Meadow Second Addition. RESOLUTION Accepting improvements in Oak Meadow Second Addition - Phase 3 (Deerwood Circle) Suggested Disposition: Receive and File; Adopt Resolution National Historic Landmark Status for the Shot Tower City Manager recommending that the Planning Services Department retain a consultant to prepare an application for National Historic Landmark status for the Shot Tower. Suggested Disposition: Receive and File; Approve Environmental Stewardship Advisory Commission John S. Bennett submitting his resignation from the Environmental Stewardship Advisory Commission effective December 5, 2001. Suggested Disposition: Receive and File; Accept Resignation 4 10. Dubuque County Supervisors - Abstract of Votes Dubuque County Board of Supervisors submitting the "Abstract of Votes" for the City's general election held on November 6, 2001. Suggested Disposition: Receive and File; Make a Matter of Record U.S. Department of Housing and Urban Development Communication from the U.S. Department of Housing and Urban Development advising of a new policy for the Community Development Block Grant (CDBG) Program regarding timely expenditure requirements of the program. Follow-up communication from the U.S. Department of Housing and Urban Development. Suggested Disposition: Receive and File 11. Gaming Referendum Legislation Communication of City Manager to area legislators regarding gaming referendum legislation. Suggested Disposition: Receive and File; Approve. 12. Iowa League of Cities Communication from LaMetta K. Wynn, President of the iowa League of Cities, appointing the City Manager to the Policy Committee of the League. Suggested Disposition: Receive and File '13. Business Licenses RESOLUTION Granting issuance of a license to sell Cigarettes and Cigarette Papers to Bricktown Brewery/Underground Stone Wall Lounge RESOLUTION Granting issuance of a Class "C" Beer Permit to the Big 10 Mart RESOLUTION Granting issuance of a Class "C" Beer/Liquor License to Bowling and Beyond and Cooper Management Company Suggested Disposition: Adopt Resolutions PUBLIC INPUT At this time, anyone in the Council Chambers may address the Council on matters which are of concern to that person and which are not an agenda item. Please take your place at the microphone and state your name and address cleady. Proceed with your comments; however, no formal action may be taken at this time on your comments because of the notice requirements of the Iowa Open Meetings Law. CLOSED SESSION Pending Litigation - Iowa Code Chapter 21.5(1)(c) Jeanne F. Schneider November 29, 2001 5 December 3 ,2001 The City Finance Director of Dubuque, Iowa, met in the City Hall, Dubuque, Iowa, at 11: 00 o'clock ~.M., on the above date, to open sealed bids received and to refer the sale of the Bonds to the best and most favorable bidder for cash, subject to approval by the City Council at 6:30 o'clock P.M. on the above date. The following persons were present: Michael Van Milligen, Kenneth TeKippe, Dawn Lang, Jeanne Schneider Dave Dirks and Jason Toomey -1- This being the time and place for the opening of bids for the sale of $9,500,000 General Obligation Bonds, Series 2001, the meeting was opened for the receipt of bids for the Bonds. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders: US Bancorp Piper Jaffray RBC Dain Rauscher, Inc. Harris Trust & Savigns Bank Morgan Stanley Dean Witter S%ephens, Inc. Minneapolis, MN Chicago, IL Chicago, IL Chicago, IL Fayatteville, AK Whereupon the Finance Director declared the time for filing of sealed bids to be closed. Whereupon, the Finance Director declared the sealed bids be opened. The sealed bids were opened and the best sealed bid was as follows: Name&AddressofBidder: US Bancorp Piper daffray - Minneapolis, MN Net Interest Rate: 4.6852% Net Interest Cost: $5,471,154.86 Whereupon, all bids were referred to the Council for action in accordance with the Notice of Sale. -2- December 3 ,2001 The City Council of Dubuque, Iowa, met in Reou l ar session, in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor Terrance M. Duggan , in the chair, and the following named Council Members: Roy Buol, Patricia Cline (electronically), John Markham, Ann Michalski, Dan Nicholson, Jo~ Robbins Absent: None -3- Council Member 1'45 c ha I ski introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF $9,500,000 GENERAL OBLIGATION BONDS, SERIES 2001" and moved its adoption. Council Member N i c hols on seconded the motion to adopt. The roll was called and the vote was, AYES: Buol, Cline, Duggan, Markham, Michalski, Nicholson, Robbins NAYS: None Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION No. 519-01 RESOLUTION DIRECTING SALE OF $9,500,000 GENERAL OBLIGATION BONDS, SERIES 2001 WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the Bonds described as follows and the best bid received is determined to be the following: Bidder: $9,500,000 GENERAL OBLIGATION BONDS, SERIES 2001: US Bancorp Piper Jaffray of Minneapolis, MN the terms of said bid being: Purchase Price: $ 9, 405,000 Net Interest Rate: 4. 6852 % Net Interest Cost $ 5,471,154.86 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: -4- Section 1. That the bid for the Bonds as above set out is hereby determined to be the best and most favorable bid received and, Said Bonds are hereby awarded based on said bid. Section 2. That the statement of information for Bond bidders and the form of contract for the sale of said Bonds are hereby approved and the Mayor and Clerk are authorized to execute the same on behalf of the City. Section 3. That the notice of the sale of the Bonds heretofore given and all acts of the Clerk and Finance Director done in furtherance of the sale of said Bonds are hereby ratified and approved. PASSED AND APPROVED, this 4th day of December ,2001. ATTEST: Mayor ~C~ty Clerk ' ' -5- CIG-3 9/91 CERTIFICATE STATE OF IOWA COUNTY OF DUBUQUE ) )ss ) I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is a tree and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a tree and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by said law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no Council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this day of December ,2001. C.Mgity Clerk, Dubuque, Iowa SEAL DCORNELL~301755~I\10422057 -6- EVENSEN DODGE TABULATION OF BIDS SALE DATE: December 3, 2001 Due: June 1, 2005-2021 Rating: Moody's "Aa3" $2,860,000 General Obligation Bonds, Series 2002 City of Dubuque, IA Bank Qualified: Yes Dated: December 15, 2001 BBI: 5.15% BIDDERS US BANCORP PIPER JAFFRAY Address Minneapolis, MN Year Rate Yield 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Price NIC TIR % Atlanta + Boston + Buffalo + Chicago + Dallas + Des Moines + Fargo + Hartford LosAngeJes · Phoenix + Minneapolis + NewYork + Orlando + San Francisco + Washington 650 Third Avenue South, Suite 1800, Minneapolis, MN 55402 612/338-3535 800/328-8200 FAX 612/336-7264 BIDDERS GRIFFIN KUBIK STEPHENS THOMPSON Address Chicago, IL Year 2004 2005 Rate 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 BIDDERS ~CDAINRAUSCHER Address Chicago, IL Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202t Rate Price $ NIC $ % Price NIC BIDDERS Address HARRIS TRUST & SAVINGS BANK Chicago, IL Year 20O4 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Rate Price $ NIC $ TlR % BIDDERS STEPHENS, INC. Address Year Rate Chicago, IL 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Price $ NIC $ TlR % BIDDERS MORGAN STANLEY DEAN WITTER Address. Ctricago, IL 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20t7 2018 2019 2020 2021 Rate Price s ~ S~/~ ~/c~q TIR REPORT OF BIDS City of Dubuque, Iowa $9,500,000 General Obligation Bonds, Series 2001 and $2,860,000 General Obligation Bonds, Series 2002 December 3, 2001 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE~ INC. SUBJECT: $9,500,000 General Obligation Bonds, Series 2001 Today, December 3, 2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER i US Bancorp Piper Jaff~ay RBC Dain Rauscher, Inc. Harris Trust & Savings Bank Morgan Stanley Dean Witter Stephens, Inc. ADDRESS Minneapolis, MN Chicago, IL Chicago, IL Chicago, IL Fayatteville, AK $ NIC $ 5,471,154.86 $ 5,481,309.89 $ 5,505,524.40 $ 5,504,429.24 $ 5,537,375.47 (%) :IR 4.6852 4.7002 4.7171 4.7185 4.7191 WE RECOMMEND AWARD TO: -US Bancorp Piper Jaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, IA 50309 515/282-6138 FAX 515/282-0252 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $2,860,000 General Obligation Bonds, Series 2002 Today, December 3, 2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray Morgan Stanley Dean Witter RBC Dain Rauscher, Inc. ADDRESS $ NIC {%) TIR Minneapolis, MN $1,612,104.15 4.7251% Chicago, IL $1,632,379.40 4.7837 % Chicago, IL $1,631,335.42 4.7958 % WE RECOMMEND AWARD TO: US Bancorp Piper Jaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, tA 50309 515/282-6138 FAX 515/282-0252 OFlq CIAL BH) ~'ORM Ci~yd Dabs~ b~A NOT PART OF TIIIS BID: SENT BY: 12- 3- 1 ;II:I~A~ ; E~SEN DODOE INC-+ ~19 589 4221;# 3/12 O{~iriCi~L ~D FOI~M Members of the City Council City of Dubuque, Iowa OFFICIAL BID FORM Sale Date: December 3, 2001 Members of the Council: For the principal amount of $9,500~00~enemt Obligation Bonds, Series 2001 legally issued and as described in the Terms of Offering, we will pay $ ~ ~7~. ~ ~ (not less than $9,405,000) plus accrued interest on the total principal of $9,500,000 td date o:f delivery, provided the Series 2001 Bonds bear the following interest Interest Year Amount Rate Year Amount 2005 $ 670,000 ~' ~- % 2014 $ 550,000 2006 180,000 ~ % 2015 575,000 2007 410,000 ~-r~% 2016 590,000 2008 425,000 ~% 2017 620,000 2009 490.000 ~/~_% 2018 650,000 2010 530,000 ~/~r°/o 2019 680,000 2011 545,000 "~,.-~9(~ % 2020 715,000 2012 560,000 _~_°/o 2021 750,000 2013 560,000 Interest Rate ~_% ~% ,% The Series 2001 Bonds mature on June 1, in each of the years as indicated above and interest is payable December 1, 2002, and semiannually therealter on June 1 and December 1 of each year. In making rids offer, we accept the terms and conditions as defined in the Terms of Offering published in the Official Statement dated November 27, 2001. All blank spaces of this offer are intentional and are not to be construed as an omission. Our good faith deposit in the amount of $95,000 has been or will be subnfitted in accordance with the Terms of Offering. NOT PART OF THIS BID: Respectfully submiRed, Explanatory Note: According to our compu, t,?tion, this bid involves the following: 2Y~ Z/ Tme Interest Rate Harris Trust & Savings Bank Account Manager By Carrie L. Neat (A list of account members is on the reverse side of this bid.) The foregoing offer is hereby accepted by and on behalf of the City of Dubuque, Iowa, tiffs 3aday of December, 2001. Title Title ~T ~Y: :L~O02, ~nd ~'~-.qy tl~mr au Imm I and Decemh~ ! NOT PAl~T O~ Tl~ ~I~ The f~*e~ oflrnr i~ Im~by n~:~ed by m~d on beh~Tof ~ne L~ o~ b~mi,,~ IoW~, ~,is $%y ~ D~, 2~ |. Members of the City Council City of Dubuque, Iowa OFFICIAL BID FORM Sale Date: December 3, 2001 Members of the Council: For the principal mount of $9,500,000~Geneml Obligation Bonds, Series 2001 legally issued and as described in the Terms of Offering, we will pay $ 7 ~'5-?zf~'~6''fO (not less than $9,405,000) plus accrued interest on the total principal of $9,500,005Mo ~ate of al[livery, pro~._.vid~ the Series 2001 Bonds bear the followin inter rates: ~ g est Interest Interest Year Amount Rate ~Year Amount Rate 2005 $670,000 .~ ~__% 2014 $550,000 2006 180,000 ~_% 2015 575,000 2007 410,000 '~-'5 % 2016 590,000 2008 425,000 ~ ~) % 2017 620,000 2009 490,000 J ,~7-% 2018 650,000 2010 530,000 ~% 2019 680,000 2011 545,000 ~._% 2020 715,000 2012 560,000 q5"% 2021 750,000 2013 560,000 ' % The Series 2001 Bonds mature on June 1, in each of the years as indicated above and interest is payable December 1, 2002, and semiannually thereafter on June 1 and December 1 of each year. In making this offer, we accept the terms and conditions as defined in the Terms of Offering published in the Official Statement dated November 27, 2001. All blank spaces of this offer are intentional and are not to be construed as an omission. Our good faith deposit in the amount of $95,000 has been or will be submitted in accordance with the Terms of Offering. NOT PART OF THIS BID: Respectfully submitted, Explanatory Note: According to our computation, this bid involves the following: * ~"' ff"~ ~ 3~f ?~ ccount/t{~lan~ager Net Inte[est Cost By ~ ~'~/7/ % (A list of account members is on the reverse side of Tree Interest Rate this bid.) The foregoing offer is hereby accepted by and on behalf of the City of Dubuque, Iowa, this 3rdday of December, 2001. Title Title t2- ~- 1 ;iI:ISAIV ; EVE~SEN DODOE INC-~ 019 889 ~t221;g ~/]2 Date: D~embsr 3, 2{~01 Mt.-~l~'~s of the Cou~lL' 21W14 $ 165,000 2005 I ~006 2t}fl7 t25,000 140,000 NOT PART OF TI, ilS BID: R~cffully submitt~, (A list of ~ um~mbe~ is mm the ~ {ltde of flU~ bld.) 'i~ne ~ng of lex- iz hcu~by a~pked by und ~n buhnli'oftho C{ty of D~buque, Iowa, ~lis this 3~day~f DeceraTner, 2001. BY: 12- ~- 1 ;11:16~ ',_. EV~S~ ~DGE INC~ ..... ~19 889r.~ 4221;~11./12 ~ 2~OL SENT BY: 12- 3- 1 ;iI:iSAM ; EVI~SEN DOPX~ INC-+ ~10 889 4221;# 8/12 $~le l~, ~em{mr :{, 2001 27, 2~1, suhmi~cd ~ ae~n~ with T~rr~ or OtTeri~i. NOT PAItTOFTHIS Rcspe~fuBy SubmiUc6, 21~1. T',dc EVENSEN DODGE TABULATION OF BIDS SALE DATE: December 3, 2001 Due: June 1,2005-2021 Rating: Moody's "Aa3' $9,500,000 General Obligation Bonds, Series 2001 City of Dubuque, IA Bank Qualified: Yes Dated: December 15, 2001 BBI: 5.14% BIDDERS Address Year Rate Yield US BANCORP PIPER JAg'FRAY 2005 2006 2007 2008 2009 2010 2011 20t2 2013 2014 2015 2016 2017 2018 2019 2020 2021 Price NIC TIR Atlanta + Boston 4, Buffalo 4- Chicago 4, Dallas 4, OesMoines 4, Fargo 4, Hartford LosAngdes + Phoenix 4, Minneapolis 4, NewYork 4- Orlando 4, San Francisco + Washington 650 Third Avenue South, Suite 1800, Minneapolis, MN 55402 612/338-3535 800/328-8200 FAX612/338-7264 BIDDERS RBC DAIN RAUSCHER, INC. Address Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Rate BIDDERS HARRIS TRUST & SAVINGS BANK Address Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Rate Price NIC Price NIC TlR BIDDERS MORGAN STANLEY DEAN WITTER Address Year 20O5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20t9 2020 2021 Rate Price NIC s~.~o¥ ~'~/? TIR REPORT OF BIDS City of Dubuque, IA $9,500,000 General Obligation Bonds, Series 2001 and $2,860,000 General Obligation Bonds, Series 2002 December 3, 2001 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $9,500,000 General Obligation Bonds, Series 2001 Today, December 3, 2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray RBC Dain Ranscher, Inc. Harris Trust & Savings Bank Morgan Stanley Dean Witter Stephens, Inc. ADDRESS Minneapolis, MN Chicago, IL Chicago, IL Chicago, IL Fayatteville, AK $ NIC $ 5,471,154.86 $ 5,481,309.89 $ 5,505,524.40 $ 5,504,429.24 $ 5,537,375.47 (%) TIR 4.6852 % 4.7002 % 4.7171% 4.7185 % 4.7191% WE RECOMMEND AWARD TO: US mmn'p iper affray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Cou~ Avenue, Suite 215 Des Moines, lA 50309 515/282-6138 FAX 515/282-0252 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $2,860,000 General Obligation Bonds, Series 2002 Today, December 3,2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray Morgan Stanley Dean Witter RBC Dain Rauscher, Inc. ADDRESS $ NIC (%) TlR Minneapolis, MN $1,612,104.15 4.7251% Chicago, IL $1,632,379.40 4.7837 % Chicago, IL $1,631,335.42 4.7958 % WE RECOMMEND AWARD TO: US Bancorp Piper Jaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, IA 50309 515/282-6138 FAX 515/282-0252 REPORT OF BIDS City of Dubuque, IA $9,500,000 General Obligation Bonds, Series 2001 and $2,860,000 General Obligation Bonds, Series 2002 December 3, 2001 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $9,500,000 General Obligation Bonds, Series 2001 Today, December 3,2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray RBC Dain Rauscher, Inc. Harris Trust & Savings Bank Morgan Stanley Dean Witter Stephens, Inc. ADDRESS Minneapolis, MN Chicago, IL Chicago, IL Chicago, IL Fayatteville, AK $ NIC $ 5,471,154.86 $ 5,481,309.89 $ 5,505,524.40 $ 5,504,429.24 $ 5,537,375.47 (%) Tm .4.6852 % 4.7002 % 4.7171% 4.7185 % 4.7191% WE RECOMMEND AWARD TO: US Bancorp Piper Jaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, IA 50309 515/282-6138 FAX 515/282-0252 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $2,860,000 General Obligation Bonds, Series 2002 Today, December 3,2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray Morgan Stanley Dean Witter RBC Dain Rauscher, Inc. ADDRESS $ NIC (%) TIR Minneapolis, MN $1,612,104.15 4.7251% Chicago, IL $1,632,379.40 4.7837 % Chicago, IL $1,631,335.42 4.7958 % WE RECOMMEND AWARD TO: US Bancorp Piper Jaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, IA 50309 515/282-6138 FAX 515/282-0252 REPORT OF BIDS City of Dubuque, IA $9,500,000 General Obligation Bonds, Series 2001 and $2,860,000 General Obligation Bonds, Series 2002 December 3, 2001 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $9,500,000 General Obligation Bonds, Series 2001 Today, December 3, 2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray RBC Dain Rauscher, Inc. Harris Trust & Savings Bank Morgan Stanley Dean Witter Stephens, Inc. ADDRESS Minneapolis, MN Chicago, IL Chicago, IL Chicago, IL Fayatteville, AK $ NIC $ 5,471,154.86 $ 5,481,309.89 $ 5,505,524.40 $ 5,504,429.24 $ 5,537,375.47 (%) TIR .4.6852 4.7002 4.7171 4.7185 4.7191 WE RECOMMEND AWARD TO: US Bam: rffPiperJaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, IA 50309 515/282-6138 FAX 515/282-0252 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $2,860,000 General Obligation Bonds, Series 2002 Today, December 3, 2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray Morgan Stanley Dean Witter RBC Dain Rauscher, Inc. ADDRESS $ NIC (%) TIR Minneapolis, MN $1,612,104.15 4.7251% Chicago, IL $1,632,379.40 4.7837 % Chicago, IL $1,631,335.42 4.7958 % WE RECOMMEND AWARD TO: -- US BancorP Piper Jaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, IA 50309 515/282-6138 FAX 515/282-0252 W:~fonnXresul~dirks REPORT OF BIDS City of Dubuque, IA $9,500,000 General Obligation Bonds, Series 2001 and $2,860,000 General Obligation Bonds, Series 2002 December 3, 2001 TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $9,500,000 General Obligation Bonds, Series 2001 Today, December 3,2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray RBC Dain Ranscher, Inc. Harris Trust & Savings Bank Morgan Stanley Dean Witter Stephens, Inc. ADDRESS Minneapolis, MN Chicago, IL Chicago, IL Chicago, IL Fayatteville, AK $ NIC $ 5,471,154.86 $ 5,481,309.89 $ 5,505,524.40 $ 5,504,429.24 $ 5,537,375.47 (%) TIR .4.6852 % 4.7002 % 4.7171% 4.7185 % 4.7191% WE RECOMMEND AWARD TO: US BancorlYPiper Jaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, lA 50309 515/282-6138 FAX 515/282-0252 W:\formL~esults~iirks TO: Dubuque Mayor, City Council Members and Administration City of Dubuque, IA FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $2,860,000 General Obligation Bonds, Series 2002 Today, December 3,2001, the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER US Bancorp Piper Jaffray Morgan Stanley Dean Witter ~BC Dain Rauscher, Inc. ADDRESS $ NIC (%) TIR Minneapolis, MN $1,612,104.15 4.7251% Chicago, IL $1,632,379.40 4.7837 % Chicago, IL $1,631,335.42 4.7958 % WE RECOMMEND AWARD TO: US B ncm;P Piper Jaffray Thank you for the opportunity to be of service to the City of Dubuque, Iowa. We are available to answer any questions you may have on this or any other issue in the future. 100 Court Avenue, Suite 215 Des Moines, IA 50309 515/282-6138 FAX 515/282-0252