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Sale of GO Bonds Series 2011A_Taxable GO Bonds Series 2011BMasterpiece on the Mississippi July 21, 2011 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: $6,330,000 General Obligation Bonds, Series 2011A $1,590,000 Taxable General Obligation, Series 2011B MCVM /jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Jennifer Larson, Budget Director Kenneth TeKippe, Finance Director Michael C. Van Milligen Dubuque All-America City 2007 The sale of $6,330,000 General Obligation Bonds, Series 2011A; and $1,590,000 Taxable General Obligation Bonds, Series 2011B will be held Monday, August 1, 2011 at 10:00 a.m. The results will be brought to the August 1 City Council Meeting. A letter from Attorney William Noth detailing information on the bond sale is attached. WILLIAM J. NOTH wnoth @ahlerslaw.com Mr. Ken TeKippe Finance Director City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 -4864 AHLERS &COONEY, P.C. 100 COURT AVENUE, SUITE 600 DES MOINES, IOWA 50309 -2231 PHONE 515 -243 -7611 FAX: 515-243-2149 WWW.AHLERSLAW.COM July 20, 2011 RE: $6,330,000 General Obligation Bonds, Series 2011A Dear Mr. TeKippe: Direct Dial: (515)246 -0332 With this letter I am enclosing suggested proceedings for the sale date of August 1, 2011, awarding the above Bonds to the best bidder for the same. At the designated time, sealed, facsimile and electronic bids for the Bonds should be received by the Finance Director and listed in a report of sale to be delivered to the City Council. After a final call for sealed bids, the bids should then be opened and the best bid recorded. Only sealed and electronic bids are permitted by the terms of sale. All bids should then be referred to the Council for award of the Bonds. The Terms of Offering set out the restrictions on the type of interest rates which may be bid. Bids must comply with the Terms of Offering. Different interest rates may be bid for each maturity. Each interest rate must be in a multiple of one - eighth or one - twentieth of one percent. July 20, 2011 Page 2 An extra copy of the proceedings is enclosed to be completed as the original and returned to us for our transcript of the action taken. We also would appreciate receiving a copy of the signed bid form of the successful bidder. WJN:dc encl. If any questions arise, please keep me advised. cc: Jenny Larson (w /encl.) Tionna Pooler (w /encl.) 00806647 -1 \10422 -125 Very truly yours, William J. Noth HOOEY'S INVESTORS SERVICE July 25, 2011 Mr. Ken TeKippe Finance Officer City of Dubuque City Hall 50 West 13th Street Dubuque, IA 52001 -4864 Dear Mr. TeKippe: We wish to inform you that on July 21, 2011, Moody's Investors Service reviewed and assigned a rating of Aal to Dubuque (City of) IA's General Obligation Bonds, Series 2011A and General Obligation Bonds, Series 2011B. In order for us to maintain the currency of our ratings, we request that you provide ongoing disclosure, of current financial and statistical information. Moody's will monitor this rating and reserves the right, at its sole discretion, to revise or withdraw this rating at any time in the future. The rating, as well as any revisions or withdrawals thereof, will be pub tc bah eques d by Moody's through normal print and electronic media and in ponse to Moody's Rating Desk. Should you have any questions regarding the above, please do not hesitate to contact me or the analyst assigned to this transaction, Emily Robare at 312 -706 -9971. Sincerely, z( M?4zz: . Edward Damutz cc: Ms. Tionna Pooler Public Financial Management 84 /I/ Edward Damutz Vice President Sr, Credit Officer 100 N. Riverside Plaza Suite 2220 Chicago, IL 60606 312,706.9953 tel 312.706.9999 fax edward.damutz@moodys.com www.moodys.com MOODY'S INVESTORS SERVICE New Issue: MOODY'S ASSIGNS Aal RATING TO CITY OF DUBUQUE'S (IA) $6.3 MILLION GO BONDS, SERIES 2011AAND $1.6 MILLION TAXABLE GO BONDS, SERIES 2011B Global Credit Research - 25 Jul 2011 Aa1 RATING APPLIES TO $66 MILLION OF POST - SALE GOULT DEBT Municipality IA Moody's Rating ISSUE RATING General Obligation Bonds, Series 2011A Pal Sale Amount $6,330,000 Expected Sale Date 08/01/11 Rating Description General Obligation General Obligation Bonds, Series 2011B Aal Sale Amount $1,590,000 Expected Sale Date 08/01/11 Rating Description General Obligation Opinion NEW YORK, Jul25, 2011 -- Mioody's Investors Service has assigned a Pal rating to the City of Dubuque's (IA) $6.3 million General Obligation 'Bonds, Series 2011Aand $1.6 million Taxable General Obligation Bonds, Series 2011B. Concurrently, Moody's has affirmed the Aal rating on the city's $66 million of post -sale general obligation debt. SUMMARY RATINGS RATIONALE The bonds are secured by the city's general obligation unlimited tax pledge. Proceeds of the Series 2011Abonds will be used for various capital improvement projects. Proceeds of the Series 2011 B bonds will be used for road construbtion and parking ramp repairs in two of the city's tax increment financing districts. Assignment and affirmation of the Aa1 rating reflects the city's role as a regional service and retail provider In northeastern Iowa (Aaa/stable outlook) and surrounding states; satisfactory reserves despite an ongoing trend of spending reserves for capital projects; and an above average, though manageable, debt burden. STRENGTHS - Growing regional economy bolstered by its role as a regional economic and service center for northeast Iowa and surrounding states - Revenue - raising flexibility through access to additional property tax levies CHALLENGES - Plans to continue to spend down financial reserves through fiscal 2012 for capital projects - Moderate reliance on volatile gaming revenues for general operations - Depleted reserves In Worker's Compensation Fund leading to unbudgeted mid -year transfers from General Fund DETAILED CREDIT DISCUSSION GROWING AND DIVERSIFYING TAX BASE EXPERIENCING ONGOING RESIDENTIAL CONSTRUCTION as the trade and service centorSfor the large hi -state region. The city als benefits from its role asth Dubuque County seat and home serves to three small colleges with combined enrollment of approximately 4,000 students. We expect the city's tax base, valued at $3.5 billion In levy year 2010, to continue to exhibit a favorable rate of growth due to expansion of the residential sector, spurred by the attraction of new employers to the region. In 2009, IBM (senior unsecured debt rated Aa3 /stable outlook) moved into a previously vacant building downtown, adding a new seeingl25ymulttii- family build nglpermit generated n fiscal 2010 and 89In al 2011 to (compared to 14 in 2007). The city the also has two cas with the inos, nos ands the historic Mfliwork area downtown is ongoing with �plans e 6 for $200 million in plannedpublic private investment, of including additional ret and multi- family residential development. Officials report that the John Deere (senior unsecured debt rated A2/stable outlook) Dubuque Works plant, the city's largest employer with 1,800 employes, has remained stable. Positively, while the city's unemployment rate increased during the recession, it remained around the state's levels, peaking at about 6% in 2009 and 2010. The rate has since fallen to 5.3% in May 2 compared to 5.6% for the state and 8.7% for the nation for the same time period. Population has seen little growth in the last two censuses, remaining around 57,500 between 1990 and 2010. Income Indices were slightly below state and national levels in the 2000 census. SATISFACTORY RESERVES EXPERIENCING ONGOING DECLINES DUE TO USE OF FUNDS FOR CAPITAL PROJECTS; REVENUE RAISING FLEXIBILITY REMAINS The city's financial position is expected to remain satisfactory due to favorable revenue raising flexibility and a commitment to maintain a minimum reserve level, despite a four -year trend of decreasing reserves for spending on capital projects. Following a period when the city built up Its reserves to $22.3 million, or 41.3% of revenues In fiscal 2007, primarily from surpluses driven by gambling revenues and grants for capital projects, the city began spending down its reserves in fiscal 2008. Between fiscal 2007 and fiscal 2010, the city spent approximately $8.5 million In reserves on various capital projects, Including library renovations, riverfront redevelopment, parks and recreation areas, building Improvements and equipment purchases. The city ended fiscal 2010 with a General Fund balance of $13.8 million, or a still solid 24.6% of revenues. In fiscal 2011, preliminary estimates show a $1 million use of fund balance, bringing the estimated ending General Fund balance to $12.8 million, or 21% of revenues. Fund balance was primarily used for capital projects, though the city also needed to transfer an additional $300,000 to its health insurance fund and $200,000 to the worker's compensation fund as claims were higher than expected, and the city Is self - Insured for both items. The fiscal 2012 budget includes a $2 million use of fund balance for capital projects, which would bring the ending balance to $10.8 million, or a sound 19.8% of projected revenues. The city's informal policy is to maintain a minimum of 10% of expenditures (or $4 million) in its reserves, though management expects that reserves will not be reduced below approximately $7 million (a satisfactory 12.4% of 2010 revenues). We note that should the city continue to spend down its reserves close to or below its fund balance goal, this would be lower than many of its peers at the Pal rating category, where the median fund balance for U.S. cities is approximately 29.3% of revenues. Favorably, revenue raising flexibility remains to enhance operations. While the city levies the $8.101$1,000 tax cap for operations, officials report that $5.7 million of items levied under the cap could be moved to the city's employee benefits or trust and agency levy. Additionally, the city is not utilizing its emergency levy, which would generate an estimated $550,000 if fully utilized. Other flexibility comes from the ability to increase the electric franchise fee, which Is currently at 3% and can be raised up to 5 %; however, this would require a special election and council approval as the 3% cap was set by resolution. The majority of the funds that the city has spent from General Fund reserves over the last four years had accumulated over time from gaming revenues. The city owns Mystique Casino, although it is operated by a nonprofit organization, and receives 50% of the casino's profits. The profits are entirely dedicated to capital Improvements and have typically generated between $4 million and $6 million per year, although no profits were received in fiscal years 2009 and 2010 due to expansions at the casino. The city also collects funds from an operating lease with Mystique and other taxes, with 88.5% of these funds dedicated to the city's general operations and the rerainder to capital. These revenues reached a high of $10.2 million in fiscal years 2007 and 2008, though have declined to a budgeted $7 million for fiscal 2012 due to a renegotiation of the lease. The city additionally receives a more modest amount from Diamond Jo Casino, between $500,000 and $1.4 million annually, and dedicates 86.5% of these receipts for operations and the remainder for capital improvements. Property taxes are the city's largest General Fund revenue source at 43% of 2010 revenues, followed by gaming revenues (both those dedicated to capital and operations) at 14.6 %, and charges for services at 14.1%. The city receives very little state aid, primarily in the form of grants. The Worker's Compensation Fund has continued to see declines In recent balance of $B54,000. City officials report that contributions to tthe fund have position een increased in fifiscal 2D 2, though the deficit balance will likely not be fully eliminated. MANAGEABLE DEBT BURDEN WITH ANNUAL BORROWING EXPECTED TO CONTINUE The city's debt burden is above average, with a direct debt burden at 2.6% of full value and an overall debt burden at 3.0 %. The city's debt burden includes $25.2 million in tax increment revenue bonds, which are not general obligation bonds of the city and are supported by revenues from the city's tax increment districts. Net of these bonds, the city's overall debt burden would be reduced to 2.3% of full value. The city typically issues bonds annually to fund a portion of its capital improvement plan. Despite these expected plans, we anticipate the city's debt position will remain manageable due to ongoing tax base expansion. Principal amortization Is average, with 69% of principal repaid within ten years. All of the city's debt Is fixed rate and the city does not have exposure to any Interest rate swap agreements. WHAT COULD MAKE THE RATING GO - UP - Strengthening of tax base and demographic profile - Stabilization of financial operations WHAT COULD MAKE THE RATING GO - DOWN - Continued declines In General Fund balance to levels that are not commensurate with the city's Aa1 rating - Substantial deterioration of tax base KEY STATISTICS: 2010 Population: 57,637 (0,1% decline since 2000) 2010 Full valuation: $3.6 billion (4.1% average annual increase since 2005) 2010 Full value per capita: $61,651 • Dubuque unemployment rate (May 2011): 5.3% 2000 Median family income as % of nation: 90.9% (99.7% of stale) 2000 Per capita income as % of nation: 93% (97% of stale) Fiscal 2010 General Fund Balance: $13.8 million (24.6% of General Fund revenues) Overall debt burden: 3.0% (2.6% direct) Retirement of principal (10 years): 69% Post -sale general obligation unlimited tax debt outstanding: $65.7 million PRINCIPAL METHODOLOGY USED The principal methodology used In this rating was General Obligation Bonds Issued by U.S. Local Governments published In October 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology . REGULATORY DISCLOSURES For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings In accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures In relation to the rating action on the support provider and In Felatlon to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. 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My publication Into Australia of this document is by MOODY'S affiliate, tvioody's Investors Service Pty Limited ABN 61 003 399 657, which holds Australian Financial Services License no. 336969. This document is Intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a'wholesale client" and that neither you nor the entity you represent will directly or Indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761 G of the Corporations Act 2001. Notwithstanding the foregoing, credit ratings assigned on and after October 1, 2010 by Moody's Japan K.K. ( "MJKK") are MJKK's current opinions of the relative future credit risk of entitles, credit commitments, or debt or debt -like securities, In such a case, "MIS" in the foregoing statements shall be deemed to be replaced with "MJKK ". MJKK is a wholly -owned credit rating agency subsidiary of Moody's Group Japan G.K., which Is wholly owned by Moody's Overseas Holdings Inc., a wholly -owned subsidiary of MCO. This credit rating is an opinion as to the creditworthiness or a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retell Investors. It would be dangerous for retail investors to make any Investment decision based on this credit rating. If In doubt you should contact your financial or other professional adviser. NOTICE OF BOND SALE Time and Place of Sealed Bids: Sealed bids for the sale of Bonds of the City of Dubuque, Iowa, will be received at the office of the Finance Director. City Hall, 50 West 13th Street. in the City of Dubuque, Iowa (the "Issuer ") at 11:00 o'clock A.M., on the 1st day of August, 2011. The bids will then be publicly opened and referred for action to the meeting of the City Council In conformity with the terms of offering. Sale and Award: The sale and award of the Bonds will be held at the Historic Federal Building, 350 West 6th Street. Dubuque, Iowa. at a meeting of the City Council on the above date at 6:30 o'clock P.M. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION BONDS, SERIES 2011A, in the amount of $6,330,000, to be dated the date of delivery. TAXABLE GENERAL OBLIGATION BONDS, SERIES 2011B, in the amount of $1,590.000, to be dated the date of delivery. (together, the "Bonds") Adjustment of Prin- dpal Amounts. The Issuer reserves the right to increase or decrease the aggre- gate principal amount of each series of the Bonds at the time of sale, as described in the Terms of Offering. Any such change will be in increments of $5,000, and may be made in any of the maturities. The pur- chase price will be adjusted proportion- ately to reflect any change in issue size. Manner of Bidding: Open bids will not be received. Bids for each series of the Bonds will be received by any of the following methods: Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director, City Hall, Dubuque, Electronic Internet Bidding: Electronic Internet bids will be received at the office of the Finance Director, City Hall, Dubuque, Iowa. The bids must be submitted through the PARITY competi- tive bidding system. Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the Finance Director, Dubuque, Iowa (facsi- mile number: 563/589- 0890 or 563/690- 6689). Electronic facsimile bids will be sealed and treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic Internet bids will be accessed and announced. Official Statement: The Issuer has issued an Official Statement of information pertain- ing to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid Form for each series, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, 50 W. 13th Street, Dubuque, Iowa 52001 (telephone: 563/589 -4100) or the financial advisor to the City, Public Financial Management, Inc., 801 Grand Avenue, Suite 3300, Des Moines, Iowa (telephone: 515 -243- 2600). Terms of Offering: All bids shall be in conformity with and the sale shall be in accord with the Terms of Offering as set forth In the Official Statement. Legal Opinion: Said Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines. Iowa, as to the legality and their opinion will be fur- nished together with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or complete- ness of documents, materials or state- ments made or fur- nished in connection with the sale, issuance or marketing of the Bonds. Rights Reserved: The right is reserved to reject any or all blds, and to waive any irregularities as deem- ed to be in the best interests of the public. By order of the City Council of the City of Dubuque, Iowa. Kevin 5. Firnstahl Acting City Clerk of the City of Dubuque, Iowa 1t 7/22 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: July 22, 2011, and for which the charge is $52.72. Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this qt9 day of , 20 // . h ARY K. WESTERMEI Commission Number 154 c 81 Notary Public in and for Dubuque County, Iowa. C L C 11 NAL (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Dubuque, Iowa. Date of Meeting: August 1 , 2011. Time of Meeting: 6 : 30 o'clock P .M. Place of Meeting: Historic Federal Building, 350 West 6th Street, 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 the meeting is as follows: General Obligation Bonds, Series 2011A. • 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 the governmental body. City lerk, City (Acting) f Dubuque, Iowa August 1, 2011 The Finance Director of the City of Dubuque, Iowa, met in the office of the Finance Director, City Hall, 50 West 13th Street, Dubuque, Iowa, at 11:00 o'clock AM., on the above date, to open sealed bids received, access electronic bids 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: Budget Director Jenny Larson * * * * * * ** 1 This being the time and place for the opening of bids for the sale of General Obligation Bonds, Series 2011A, the meeting was opened for the receipt of bids for the bonds. The following actions were taken: 1. Sealed bids were filed and listed in the minutes while unopened, as follows: None Name & Address of Bidders: 2. The Finance Director then declared the time for filing of sealed bids to be closed and that the sealed bids be opened. The sealed bids were opened and announced. 3. Electronic bids received were accessed and announced as follows: Name & Address of Bidders: Morgan Keegan Co., Inc, Memphis, TN iper Jaffray & Co, Minneapolis, MN Oppenheimer & Co, Inc., Philadelphia, PA First Southwest Company, Dallas, TX Rockfleet, New York, NY D.A. Davidson & Co., Inc. Denver, CO Janney Montgomery Scott, Inc., Melville, NY Raymond Jame_ s & Associates, Inc., New York, NY BMO Markets GKST, Inc., Chicago, IL Robert W. Baird & Co, In c.,- Milwaukee, WI BOSC, Inc., Richardson, TX 4. The best bid was determined to be as follows: Name & Address of Bidder: Morgan Keegan Co. Inc. 50 Front Street, Memphis, TN, 38103 Principal Amount: $6,330,000 Purchase Price: $6,411,248.85 Net Interest Cost: $$2,498,433.34 True Interest Cost: 3,304549% All bids were then referred to the Council for action in accordance with the Notice of Sale. 2 August 1, 2011 The City Council of the City of Dubuque, Iowa, met in regular session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6;30 o'clock P.M., on the above date. There were present Mayor Roy D. Buol in the chair, and the following named Council Members: Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch David Resnick, Lynn Sutton Absent: 3 Council Member Connors introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF GENERAL OBLIGATION BONDS, SERIES 2011A," and moved its adoption. Council Member Jones seconded the motion to adopt. The roll was called and the vote was, AYES: Jones, Lynch, Resnick, Sutton, Braig, Buol, Connors NAYS: None Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION NO. 256 -11 RESOLUTION DIRECTING SALE OF GENERAL OBLIGATION BONDS, SERIES 2011A WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the Bonds described as follows and the best bid received is determined to be the following: GENERAL OBLIGATION BONDS, SERIES 2011A: Bidder: Morgan Keegan Co., Inc. of Memphis, TN the terms of said bid being: Principal Amount: $6,330,000 Purchase Price: $6,411,248.85 Net Interest Cost: $$2,498,433.34 True Interest Cost: 3,304549% 4 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 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 done in furtherance of the sale of said Bonds are hereby ratified and approved. ATTEST: PASSED AND APPROVED this 1s t City Clerk (Acting) 5 , 2011. day of August TABULATION OF BIDS City of Dubuque, Iowa $6,330,000 General Obligation Bonds, Series 2011A AWARD: MORGAN KEEGAN & CO., INC. RATINGS: Moody's Investor Services `Aal' NAME OF BIDDER COUPON NET INTEREST COST RATE YEAR & TRUE INTEREST RATE PRICE MORGAN KEEGAN & CO., INC. Memphis, Tennessee PIPER JAFFRAY & CO. Minneapolis, Minnesota The PFM Group 2.000% 2013 -2015 3.000% 2016 -2024 3.125% 2025 3.500% 2026 3.750% 2027 -2028 4.000% 2029 -2031 $2,498,433.34 SALE DATE: August 1, 2011 3.3045% $6,411,258.85 3.000% 2013 -2023 $2,492,444.05 $6,396,147.20 3.125% 2024 3.250% 2025 3.3101% 3.375% 2026 3.500% 2027 3.600% 2028 3.700% 2029 4.000% 2030 -2031 STIFEL, NICOLAUS & CO., INC. 2.000% 2013 -2018 $2,504,706.97 $6,378,146.15 Denver, Colorado 2.500% 2019 OPPENHEIMER & CO., INC. 2.750% 2020 3.3142% Philadelphia, Pennsylvania 3.000% 2021 -2022 FIRST SOUTHWEST COMPANY 3.250% 2023 -2024 Dallas Texas 3.500% 2025 -2026 ROCKFLEET 3.750% 2027 -2028 New York, New York 4.000% 2029 -2031 FIRST TRUST PROTFOLIO Chicago, Illinois 801 Grand Avenue, Suite 3300 Des Moines, Iowa 50309 (515) 243-2600 $6,330,000 General Obligation Bonds, Series 2011A City of Dubuque, Iowa Monday, August 1, 2011 Page 2 NAME OF BIDDER COUPON NET INTEREST COST RATE YEAR & TRUE INTEREST RATE PRICE D.A. DAVIDSON & CO., INC. Denver, Colorado JANNEY MONTGOMERY SCOTT, INC. Melville, New York RAYMOND JAMES & ASSOCIATES, INC. New York, New York BMO CAPITAL MARKETS GKST, INC. Chicago, Illinois 2.250% 2013 -2019 2.500% 2020 2.700% 2021 2.900% 2022 3.050% 2023 3.200% 2024 1350% 2025 3.450% 2026 3.550% 2027 3.650% 2028 3.750% 2029 3.900% 2030 4.000% 2031 2.000% 2013 -2015 3.000% . 2016 -2023 3.125% 2024 3.250% 2025 3.400% 2026 3.500% 2027 3.600% 2028 3.700% 2029 3.800% 2030 4.000% 2031 2.000% 2013 -2016 2.250% 2017 2.500% 2018 3.000% 2019 -2020 3.500% 2021 -2025 4.000% 2026 -2031 $2,479,982.50 3.3145% $6,322,116.90 $2,521,868.13 $6,329,855.60 3.3685% 2.000% 2013 -2017 $2,526,575.00 $6,324,748.25 3.000% 2018 -2022 3.125% 2023 3.3772% 3.250% 2024 3.375% 2025 3.500% 2026 -2027 3.625% 2028 3.750% 2029 3.875% 2030 4.000% 2031 $2,696,265.63 $6,445,505.25 3.3973% $6,330,000 General Obligation Bonds, Series 2011A City of Dubuque, Iowa Monday, August 1, 2011 Page 3 NAME OF BIDDER COUPON NET INTEREST COST RATE YEAR & TRUE INTEREST RATE PRICE ROBERT W. BAIRD & CO., INC. Milwaukee, Wisconsin C.L. KING & ASSOCIATES, INC. New York, New York KILDARE CAPITAL Philadelphia, Pennsylvania SAMCO CAPITAL MARKETS, INC. Houston, Texas DAVENPORT & CO., LLC Richmond, Virginia DUNCAN - WILLIAMS, INC. Richmond, Virginia CREWS & ASSOCIATES, INC. Little Rock, Arkansas EDWARD D. JONES & CO. Saint Louis, Missouri WEDBUSH SECURITIES, INC. Phoenix, Arizona NW CAPITAL MARKETS, INC Jersey City, New Jersey CRONIN & CO., INC. Minneapolis, Minnesota BOSC, INC. Richardson, TX 2.000% 2013 -2017 3.000% 2018 -2023 3.250% 2024 4.000% 2025 -2031 2.000% 2013 -2017 2.750% 2018 3.000% 2019 -2021 3.050% 2022 3.200% 2023 3.300% 2024 3.450% 2025 3.550% 2026 3.650% 2027 3.750% 2028 3.850% 2029 3.950% 2030 4.050% 2031 4.10% 2029 4.20% 2030 $2,663,800.00 3.4024% $2,570,486.87 $6,338,621.10 3.4095% $6,415,127.50 Maturity Date Amount $ Coupon °/G 06/01/2013 260M 2.0000 06/01/2014 265M 2.0000 06/01/2015 265M 2.0000 06/01/2016 270M 3.0000 06/01/2017 275M 3.0000 06/01/2018 285M 3.0000 06/01/2019 290M 3.0000 06/01/2020 300M 3.0000 06/01/2021 310M 3.0000 06/01/2022 320M 3.0000 06/01/2023 330M 3.0000 06/01/2024 340M 3.0000 06/01/2025 355M 3.1250 06/01/2026 370M 3.5000 06/01/2027 385M 3.7500 06/01/2028 400M 3.7500 06/01/2029 420M 4.0000 06/01/2030 435M 4.0000 06/01/2031 455M 4.0000 PARITY Bid Form Upcoming Calendar Overview Result Excel Page 1 of 2 Morgan Keegan & Co., Inc. - Memphis , TN's Bid .-::: 4i'rr Dubuque $6,330,000 General Obligation Bonds, Series 2011A For the aggregate principal amount of $6,330,000.00, we will pay you $6,411,258.85, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Total Interest Cost: $2,579,692.19 Premium: $81,258.85 Net Interest Cost: $2,498,433.34 TIC: 3.304549 Time Last Bid Received On:08/01/2011 10:57:25 CDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: Morgan Keegan & Co., Inc., Memphis , TN Contact: Chris Spencer Title: FIRST VP Telephone:901- 529 -5477 Fax: 901 - 579 -4429 https: / /www.newis suehome.i- deal.com/Parity /asp /main. asp ?frame= content &page= parityB id... 8/1/2011 PARITY Bid Form Issuer Name: City of Dub que Accepted By: Date: August 1, 2011 Company Name: Accepted By: Date: © 1981 -2002 i -Deal LLC, All rights reserved, Trademarks Page 2 of 2 https:// www .newissuehome.i- deal.com/Parity /asp /main. asp ?frame= content &page = parityBid... 8/1/2011 This being the time and place for the opening of bids for the sale of Taxable General Obligation Bonds, Series 2011B, the meeting was opened for the receipt of bids for the bonds. The following actions were taken: 1. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders: None 2. The Finance Director then declared the time for filing of sealed bids to be closed and that the sealed bids be opened. The sealed bids were opened and announced. 3. Electronic bids received were accessed and announced as follows: Name & Address of Bidders: D.A Davidson & _Co., Inc. Denver, CO Robert W. Baird & Co., Inc., Milwaukee, WI Northland Securities, Inc., Minneapolis, MN 4. The best bid was determined to be as follows: Name & Address of Bidder: D.A. Davidson & Co., Inc., 1600 Broadway, Suite, 960 Denver, CO 80202 Principal Amount: $1,590,000 Purchase Price: $1,585,175.25 Net Interest Cost: $502,956.00 True Interest Cost: $3,586259% All bids were then referred to the Council for action in accordance with the Notice of Sale. 2 August 1, 2011 The City Council of the City of Dubuque, Iowa, met in regular session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor Roy D. Buol in the chair, and the following named Council Members: Joyce Connors, Karla Braig, Ric Jones, Kevin Lynch David Resnick, Lynn Sutton Absent: 3 Council Member Connors introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF TAXABLE GENERAL OBLIGATION BONDS, SERIES 2011B," and moved its adoption. Council Member Jones seconded the motion to adopt. The roll was called and the vote was, AYES: Jones, Lynch, Resnick, Sutton, Braig, Buol, Connors NAYS: None Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION NO. 257-11 RESOLUTION DIRECTING SALE OF TAXABLE GENERAL OBLIGATION BONDS, SERIES 2011B 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: TAXABLE GENERAL OBLIGATION BONDS, SERIES 2011B: Bidder: D.A. Davidson & Co., Inc. of Denver, CO the terms of said bid being: Principal Amount: $1,590,000 Purchase Price: $1,585,175.25 Net Interest Cost: $502,956.00 True Interest Cost: $3,586259% 4 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 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 done in furtherance of the sale of said Bonds are hereby ratified and approved. ATTEST: PASSED AND APPROVED this 1st day of August , 2011. City Clerk acting0 5 1 �L/ Mayor f/ �j D RATINGS: Moody's Investor Services `Aal' NAME OF BIDDER COUPON RATE YEAR NET INTEREST COST & TRUE INTEREST RATE PRICE D.A. DAVIDSON & CO., INC. Denver, Colorado ROBERT W. BAIRD & CO., INC. Milwaukee, Wisconsin C.L. KING & ASSOCIATES, INC. New York, New York DAVENPORT & CO., LLC Richmond, Virginia SAMCO CAPITAL MARKETS, INC. Houston, Texas KILDARE CAPITAL Philadelphia, Pennsylvania LOOP CAPITAL MARKETS, LLC New York, New York CREWS & ASSOCIATES, INC. Little Rock, Arkansas EDWARD D. JONES & CO. Saint Louis, Missouri ROSS, SINCLAIRE & ASSOCIATES, LLC Cincinnati, Ohio WEDBUSH SECURITIES, INC. Phoenix, Arizona CRONIN & CO., INC. Minneapolis, Minnesota ISAAK BOND INVESTMENTS, INC. Denver, Colorado NW CAPITAL MARKETS, INC Jersey City, New Jersey FTN FINANCIAL CAPITAL MARKETS Memphis, Tennessee VINING - SPARKS IBG, LTD PARTNERSHIP Chicago, Illinois UMB BANK, N.A Boston, Massachusetts The PFM Group I'�f.lic i mancial PFM ass. A I.ilanarjern.nl I_LC, pr M Advisors TABULATION OF BIDS City of Dubuque, Iowa $1,590,000 Taxable General Obligation Bonds, Series 2011B AWARD: D.A. DAVIDSON & CO., INC. 2.25% 2.30% 2.65% 3.00% 3.25% 3.50% 3.75% 3.90% 4.05% 4.10% 4.35% 0.80% 1.00% 1.40% 1.85% 2.25% 2.60% 2.90% 3.30% 3.60% 3.80% 4.05% 4.15% 4.25% 4.30% 2013 -2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 $502,946.00 $509,326.25 3.5862% 3.6361% SALE DATE: August 1, 2011 $1,585,175.25 $1,574,100.00 801 Grand Avenue, Suite 3300 Des Moines, Iowa 50309 (515) 243 -2600 $1,590,000 Taxable General Obligation Bonds, Series 2011B City of Dubuque, Iowa Monday, August 1, 2011 Page 2 NAME OF BIDDER COUPON NET INTEREST COST RATE YEAR & TRUE INTEREST RATE PRICE NORTHLAND SECURITIES, INC. Minneapolis, Minnesota 2.00% 2.10% 2.40% 3.00% 3.25% 3.70% 3.90% 4.00% 4.15% 4.25% 4.50% 4.75% 2013 -2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 $545,824.48 3.8930% $1,57 Maturity Date Amount $ Coupon % 06/01/2013 100M 2.2500 06/01/2014 100M 2.2500 06/01/2015 100M 2.2500 06/01/2016 100M 2.2500 06/01/2017 100M 2.3000 06/01/2018 105M 2.6500 06/01/2019 105M 3.0000 06/01/2020 110M 3.2500 06/01/2021 115M 3.5000 06/01/2022 120M 3.7500 06/01/2023 125M 3.9000 06/01/2024 130M 4.0500 06/01/2025 135M 4.1000 06/01/2026 145M 4.3500 PARITY Bid Form Upcoming Calendar I Overview Bidder: D.A. Davidson & Co., Denver , CO Contact: Amy Kohrs Title: Telephone :303- 764 -6013 Fax: 303 - 764 -6003 Result Excel D.A. Davidson & Co. - Denver , CO's Bid :MINTY 1f fT Dubuque $1,590,000 Taxable General Obligation Bonds, Series 2011 B For the aggregate principal amount of $1,590,000.00, we will pay you $1,585,175.25, plus accrued interest from the date of issue to the date of delivery Total Interest Cost: $498,121.25 Discount: $4,824.75 Net Interest Cost: $502,946.00 TIC: 3.586259 Time Last Bid Received On:08/01/2011 10:46:58 CDST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Issuer Name: City of Dubuque Company Name: Page 1 of 2 https:// www .newissuehome.i- deal.com/Parity /asp /main. asp? frame = content &page= parityBid... 8/1/2011 PARITY Bid Form Accepted By: Date: August 1 , 2011 Date: Accepted By: © 1981 -2002 i -Deal LLG, All rights reserved, Trademarks Page 2 of 2 https:// www .newissuehome.i- deal.com/Parity /asp /main. asp? frame = content &page = parityBid... 8/1/2011