Advertisement of Bond Sale Series 2012C and 2012DMasterpiece on the Mississippi
May 15, 2012
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
bierd
All-America City
1
2007
SUBJECT: Proceedings to Direct Advertisement for Sale of $6,965,000 Taxable
General Obligation Bonds, Series 2012C and $7,595,000 General
Obligation Bonds, Series 2012D and Approval of Electronic Bidding
Procedures
Budget Director Jennifer Larson recommends advertisement for the sale of the
$6,965,000 Taxable General Obligation Bonds, Series 2012C and $7,595,000 General
Obligation Bonds, Series 2012D and approval of the electronic bidding procedures.
On May 7, 2012, five public hearings were held on bond issuances not to exceed a total
of $16 million. The not to exceed amount included a contingency for fluctuations in the
bond market for interest rates, bond issuance costs and changes in project costs. Since
the public hearing, departments have reviewed capital project estimates and $1,440,000
in contingency has been eliminated. The Series 2012C and 2012D bonds that will be
advertised for sale total $14,560,000. The actual amount of bonds sold on June 4, 2012
will still differ from the $14,560,000 amount being advertised due to not knowing the
actual interest rate of the bonds or the actual bond issuance cost.
The Series 2012C bonds will provide $3,875,000 to pay costs associated with the
expansion of Dubuque Industrial Center West to farmland known as South Siegert
Farm. The low bid for South Siegert Farm for grading was $900,729 less than
estimated. The City is considering alternates and will use any remaining bond proceeds
to complete the public streets portion of the project; $750,000 is intended to provide
funds to pay costs associated with the Washington Neighborhood Subarea Building
Incentive & Rehabilitation Program; $35,000 is intended to provide funds for the
rehabilitation of Airport corporate hangers and buildings; $57,000 is intended to provide
funds for the Airport Joint Use Facility for HVAC replacement; $1,432,000 is intended to
provide funds for local match for constructing the New Airport Terminal Facility Building;
$614,000 is intended to provide funds for local match for the construction of Airport
Terminal East and West taxiways; and $95,000 is intended to provide funds for local
match for a New Terminal Facility Aircraft Deice Fluid (ADF) Containment /Collection
storage area. The estimated bond issuance cost for Series 2012C is $107,000.
The Series 2012D bonds will provide $992,000 to pay costs of right -of -way acquisition
and design of public sanitary and water utilities extensions from Technology Park South
along the highway to the Airport; $425,000 is intended to pay costs associated with the
expansion of Dubuque Industrial Center West to farmland known as South Siegert
Farm; $243,000 is intended to provide funds to pay costs of moving the 911 radio
equipment and the Police Department radio /MCT equipment from the current location
on the KFXB tower to the Radio Dubuque Tower; $280,000 is intended to provide funds
to purchase a replacement fire pumper; $75,000 is intended to provide funds for
replacing the roof on the main building at Bunker Hill; $10,000 is intended to provide
funds for replacing the pre- fabricated storage sheds at Flora and Sutton Pools; $10,000
is intended to provide funds for replacing five windows and exterior painting of the golf
maintenance building, vinyl siding repairs on the park patrol car garage and hole #5
shelter roof replacement at Bunker Hill Golf Course; $112,500 is intended to provide
funds for the City's 15% cost share of the Federal Emergency Management Agency
(FEMA) Flood Plain Buyout Program for properties sustaining substantial damage in the
July 2011 flood event; $1,569,000 is intended to provide funds for sanitary sewer
improvements; $405,000 is intended to provide funds for stormwater improvements;
$1,850,000 is intended to provide funds for water improvements; $575,000 is intended
to provide funds to pay costs of brick work on the exterior of City Hall; $70,000 is
intended to provide funds to pay costs of repairs needed as part of the original Library
Renovation in 2010 which include repainting the mezzanine and rotunda ceiling;
$175,000 is intended to provide funds to pay costs of equipment and installation of a
comprehensive video surveillance system in the Locust Street Ramp that is compatible
with current systems to enhance the safety of employees and customers; $69,000 is
intended to provide funds to pay costs of interior and exterior improvements to Fire
Station #4; $386,000 is intended to provide funds to pay costs of replacing the entire
roof over the Five Flags arena; $171,000 is intended to provide funds to pay costs of
replacing the thirty -nine light fixtures in the Five Flags arena; and $62,100 is intended to
provide funds to pay costs of replacing and upgrading the outside sign at Fifth and Bell
Streets with a 19MM LED full color sign. The estimated bond issuance cost for Series
2012D is $115,400.
Although the City is selling General Obligation Bonds to support the projects,
repayments of the debt will be from tax increment revenues of the Greater Downtown,
Dubuque Industrial Center and Technology Park South Urban Renewal Areas, as well
as local option sales tax, airport passenger facility charge, DRA lease revenues, parking
revenue and sanitary, stormwater and water user fees.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
2
Michael C. Van Milligen
MCVM /jml
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jennifer Larson, Budget Director
Kenneth TeKippe, Finance Director
3
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
Dubuque
bierd
All-America City
1
2007
SUBJECT: Proceedings to Direct Advertisement for Sale of $6,965,000 Taxable
General Obligation Bonds, Series 2012C and $7,595,000 General
Obligation Bonds, Series 2012D and Approval of Electronic Bidding
Procedures
DATE: May 15, 2012
INTRODUCTION
The purpose of this memorandum is to recommend the advertisement for the sale of the
$6,965,000 Taxable General Obligation Bonds, Series 2012C and $7,595,000 General
Obligation Bonds, Series 2012D and approval of the electronic bidding procedures.
DISCUSSION
On May 7, 2012, five public hearings were held on bond issuances not to exceed a total
of $16 million. The not to exceed amount included a contingency for fluctuations in the
bond market for interest rates, bond issuance costs and changes in project costs. Since
the public hearing, departments have reviewed capital project estimates and $1,440,000
in contingency has been eliminated. The Series 2012C and 2012D bonds that will be
advertised for sale total $14,560,000. The actual amount of bonds sold on June 4, 2012
will still differ from the $14,560,000 amount being advertised due to not knowing the
actual market interest rate of the bonds or the actual bond issuance costs.
The Series 2012C bonds will provide $3,875,000 to pay costs associated with the
expansion of Dubuque Industrial Center West to farmland known as South Siegert
Farm. The project includes temporary and permanent erosion control measures;
grading; deconstruction and demolition of existing structures; storm sewer and sanitary
sewer; and public road construction costs. The low bid for South Siegert Farm for
grading was $900,729 less than estimated. The City is considering alternates and will
use any remaining bond proceeds to complete the public streets portion of the project;
In addition, $750,000 is intended to provide funds to pay costs associated with the
Washington Neighborhood Subarea (Includes BluffNVest Locust) Building Incentive &
Rehabilitation Program. This program provides low- interest loans and grants for
rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal
District Washington Neighborhood Subarea; $35,000 is intended to provide funds for
the rehabilitation of Airport corporate hangers and buildings. The large corporate
hangars, as well as, existing leased T- hangars, need structural repairs such as roofing,
heating, flooring and door repairs /replacement; $57,000 is intended to provide funds for
the Airport Joint Use Facility for HVAC replacement; $1,432,000 is intended to provide
funds for local match for constructing the New Airport Terminal Facility Building;
$614,000 is intended to provide funds for local match for the construction of Airport
Terminal East and West taxiways; and $95,000 is intended to provide funds for local
match for a New Terminal Facility Aircraft Deice Fluid (ADF) Containment /Collection
storage area. The estimated bond issuance cost for Series 2012C is $107,000.
The Series 2012D bonds will provide $992,000 to pay costs of right -of -way acquisition
and design of public sanitary and water utilities extensions from Technology Park South
along the highway to the Airport. In addition, $425,000 is intended to pay costs
associated with the expansion of Dubuque Industrial Center West to farmland known as
South Siegert Farm; $243,000 is intended to provide funds to pay costs of moving the
911 radio equipment and the Police Department radio /MCT equipment from the current
location on the KFXB tower to the Radio Dubuque Tower; $280,000 is intended to
provide funds to purchase a replacement fire pumper which will carry a 1500 GPM
pump, water tank, hose bed and standard complement of ground ladders and
firefighting tools; $75,000 is intended to provide funds for replacing the roof on the main
building at Bunker Hill; $10,000 is intended to provide funds for replacing the pre-
fabricated storage sheds at Flora and Sutton Pools; $10,000 is intended to provide
funds for replacing five windows and exterior painting of the golf maintenance building,
vinyl siding repairs on the park patrol car garage and hole #5 shelter roof replacement
at Bunker Hill Golf Course; $112,500 is intended to provide funds for the City's 15% cost
share of the Federal Emergency Management Agency (FEMA) Flood Plain Buyout
Program for properties sustaining substantial damage in the July 2011 flood event in the
Catfish Creek flood plain along Old Mill Road and Manson Road; $1,569,000 is
intended to provide funds for sanitary sewer improvements including green alley
($50,000); 30" force main relocation around Old Public Works Garage ($850,000);
Cedar Lift Station pump /generator /trailer ($225,000); green alley SEP project (180,000);
Historic Millwork District complete streets ($119,000); Fox - Blackhawk sanitary sewer
reconstruction ($95,000); and King Street sanitary sewer reconstruction ($50,500);
$405,000 is intended to provide funds for stormwater improvements including green
alley ($33,000); 14th Street stormsewer reconstruction ($200,000); Historic Millwork
District complete streets ($91,000); West 32nd detention basin improvement ($41,500);
and Windsor storm extension ($40,000); $1,850,000 is intended to provide funds for
water improvements including water main replacements ($400,000); water main
extensions ($125,000); fire hydrant replacements ($42,000); Asbury tank painting
($592,000); Bunker Hill pump station ($325,000); North plant softening basin renovation
($120,000); McAleece ballfield parking lot improvements ($91,000); Eagle Point
Treatment plant pump room window replacement ($85,000); water audit ($50,000); and
North plant motor control center upgrade ($20,000). Finally, $575,000 is intended to
provide funds to pay costs of brick work on the exterior of City Hall; $70,000 is intended
to provide funds to pay costs of repairs needed as part of the original Library
Renovation in 2010 which include repainting the mezzanine and rotunda ceiling;
$175,000 is intended to provide funds to pay costs of equipment and installation of a
2
comprehensive video surveillance system in the Locust Street Ramp that is compatible
with current systems to enhance the safety of employees and customers; $69,000 is
intended to provide funds to pay costs of interior and exterior improvements to Fire
Station #4; $386,000 is intended to provide funds to pay costs of replacing the entire
roof over the Five Flags arena; $171,000 is intended to provide funds to pay costs of
replacing the thirty -nine light fixtures in the Five Flags arena; and $62,100 is intended to
provide funds to pay costs of replacing and upgrading the outside sign at Fifth and Bell
Streets with a 19MM LED full color sign. The estimated bond issuance cost for Series
2012D is $115,400.
Although the City is selling General Obligation Bonds to support the projects,
repayments of the debt will be from tax increment revenues of the Greater Downtown,
Dubuque Industrial Center and Technology Park South Urban Renewal Areas, as well
as local option sales tax, airport passenger facility charge, DRA lease revenues, parking
revenue and sanitary, stormwater and water user fees.
The bond sale will be held on June 4, 2012. A letter from attorney Mark Cory detailing
information on the bond advertisement is enclosed.
A draft copy of the preliminary Official Statement prepared by Public Financial
Management and City staff is enclosed. Careful review of the draft Official Statement by
appropriate City staff and members of the City Council is an important step in the
offering of the Bonds for sale to the public. The U.S. Securities and Exchange
Commission (the "Commission ") has stated that "issuers are primarily responsible for
the content of their disclosure documents and may be held liable under the federal
securities laws for misleading disclosure." In several recent enforcement proceedings,
the Commission has made clear that it expects public officials to generally review
disclosure documents in light of their unique knowledge and perspectives on the issuer
and its financial circumstances, or else to ensure that appropriate procedures are in
place to provide the necessary review.
Rule 15c2 -12 of the Commission requires prospective purchasers of the Bonds to
obtain and review an official statement that has been "deemed final" by the City prior to
submitting a bid to purchase the Bonds. For this purpose, the Official Statement may
omit certain information that is dependent upon the pricing of the issue (such as interest
rates, bond maturities and redemption features), but should otherwise be accurate and
complete.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution to cover the
advertisement for sale of the above bonds and approve electronic bidding procedures.
JML
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
3
CERTIFICATE
STATE OF IOWA
) SS
COUNTY OF DUBUQUE
NAL
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 the City, I have caused a
NOTICE OF BOND SALE
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 the Notice was published
in all of the issues thereof published and circulated on the following date:
May 25 , , 2012.
WITNESS my official signature at Dubuque, Iowa, this 4th
June , 2012.
(SEAL)
00865382 -1 \10422 -134
Eft a
City Cl, rk, City of Dubuq State of Iowa
day of
NOTICE OF BOND,
SALE'
Time and Plate 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 4th
day, of June, 2012. The ,
bids" ` Will . then be
publicly opened and I
referred for action to.',
the meeting ofithe 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:
TAXABLE GENERAL
OBLIGATION BONDS,
SERIES 2012C, in the
amount of $6,965,000,
to be dated the date of
delivery.
GENERAL OBLIGATION
BONDS, SERIES 2012D,
in the amount of
$7,595,000, to be dated
the date of delivery.
(together, the "Bonds ")
Adjustment of
Principal 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:
- seamen Blaamge
Sealed bids may be
submitted and will be
received at the office
of the Finance' Director,
City " Hall, . Dubuque,
" Electronic Internet
Bidding: Electronicih-
ternet bids will be
received at the office
of the Finance Director,
City .Hall, Dubuque,
Iowa. The bids must be
submitted through the
PARITY competitive
bidding system.
Electronic Facsimile
Bidding:Electronicfac-
simile bids will be
received at the office
of the Finance Director,
Dubuque,, 'Iowa'
(facsimile 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 1
announced. Finally,
electronic internet bids
will be accessed and
announced.
Official Statement:I
The Issuer has issued
an Official Statement
of information per-
taining 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 refer-
ence 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
3304, Des Moines, Iowa
(telephone; (515) 243-
2600).
Terms - of Offering:
All bids shall be in
conformity with and
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
furnished 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
furnished ,jn con-
nection with the sale,
issuance or marketing
of the Bonds.
Rights Reserved:
The right is reserved to
reject any or all bids,
and to waive any
irregularities as
deemed to be in the
best interests of the
public.
By order of the City
Council of the City of
Dubuque, Iowa.
Trish L. Gleason
Assistant City Clerk
of the City of Dubuque,
Iowa
It 5/25 --
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: May 25, 2012, and for which the charge is $53.27.
_c),
Subscribed to before me, Notary Public in and for Dubuque County, Iowa,
,20 AZ,-
this day of
MARY K. WESTERMEYER
Communion Numbsr 154885
INAL
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: May 21 , 2012.
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 said meeting
is as follows:
$6,965,000 Taxable General Obligation Bonds, Series 2012C
$7,595,000 General Obligation Bonds, Series 2012D
Resolution directing the advertisement of Bonds for sale, approving electronic
bidding procedures and authorizing distribution of a Preliminary Official
Statement
Such additional matters as are set forth on the additional 8 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.
City Cl
k, Dubuque, ' owa
May 21, 2012
The City Council 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:
* * * * * * * *
1
Council Member Ric Jones introduced the following Resolution
entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$6,965,000 TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012D AND
$7,595,000 GENERAL OBLIGATION BONDS, SERIES 2012D, APPROVING
ELECTRONIC BIDDING PROCEDURES, AND AUTHORIZING DISTRIBUTION
OF A PRELIMINARY OFFICIAL STATEMENT" and moved its adoption. Council
Member Karla Braig seconded the Resolution to adopt. The roll was called
and the vote was,
AYES:
David Resnick, Lynn Sutton, Karla Braig,
Mayor Roy Buol, Joyce Connors,Ric Jones, Kevin Lynch
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 133 -12
RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$6,965,000 TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012C
AND $7,595,000 GENERAL OBLIGATION BONDS, SERIES 2012D,
APPROVING ELECTRONIC BIDDING PROCEDURES, AND AUTHORIZING
DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT
WHEREAS, the City of Dubuque, Iowa (the "City ") is in need of funds to pay
costs of reconstruction, extension and improvement of the Dubuque Regional Airport;
E911 Tower relocation; equipping the municipal fire department; rehabilitation and
improvement of existing City parks; FEMA land buyouts for the acquisition and
demolition of abandoned, dilapidated or dangerous buildings, structures or properties,
and the remediation of property and buildings damaged by a disaster under Iowa Code
Section 29C.2 which are located in an area declared a disaster emergency by the
President of the United States; acquisition, construction, extension and improvement of
works and facilities useful for the collection, treatment and disposal of sewage and
industrial waste and for the collection and disposal of surface water and streams;
acquisition, construction, improvement, repair and equipping of the municipal water
utility and real and personal property useful for providing potable water, essential
corporate purpose projects, and it is deemed necessary and advisable that the City issue
general obligation bonds for said purpose in the amount of not to exceed $8,650,000 as
authorized by Section 384.25 of the Code of Iowa; and
2
Council Member Ric Jones introduced the following Resolution
entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$6,965,000 TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012D AND
$7,595,000 GENERAL OBLIGATION BONDS, SERIES 2012D, APPROVING
ELECTRONIC BIDDING PROCEDURES, AND AUTHORIZING DISTRIBUTION
OF A PRELIMINARY OFFICIAL STATEMENT" and moved its adoption. Council
Member Karla B r a i q seconded the Resolution to adopt. The roll was called
and the vote was,
AYES: David Resnick, Lynn Sutton, Karla Braig,
Mayor Roy Buol, Joyce Connors /Ric Jones, Kevin Lynch
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$6,965,000 TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012C
AND $7,595,000 GENERAL OBLIGATION BONDS, SERIES 2012D,
APPROVING ELECTRONIC BIDDING PROCEDURES, AND AUTHORIZING
DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT
WHEREAS, the City of Dubuque, Iowa (the "City ") is in need of funds to pay
costs of reconstruction, extension and improvement of the Dubuque Regional Airport;
E911 Tower relocation; equipping the municipal fire department; rehabilitation and
improvement of existing City parks; FEMA land buyouts for the acquisition and
demolition of abandoned, dilapidated or dangerous buildings, structures or properties,
and the remediation of property and buildings damaged by a disaster under Iowa Code
Section 29C.2 which are located in an area declared a disaster emergency by the
President of the United States; acquisition, construction, extension and improvement of
works and facilities useful for the collection, treatment and disposal of sewage and
industrial waste and for the collection and disposal of surface water and streams;
acquisition, construction, improvement, repair and equipping of the municipal water
utility- and - real -and personal- property useful for providing potable water, - essential - -
corporate purpose projects, and it is deemed necessary and advisable that the City issue
general obligation bonds for said purpose in the amount of not to exceed $8,650,000 as
authorized by Section 384.25 of the Code of Iowa; and
2
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
pertaining 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
furnished 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 completeness of documents, materials or statements made or
furnished in connection with the sale, issuance or marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Dubuque, Iowa.
Asst . City Clerk of the City of Dubuque, Iowa
(End of Notice)
7
PASSED AND APPROVED this 21St day of May, 2012.
ATTEST:
Vaie).-5a_a_ A-co---
Assistant City Clerk
Mayor
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
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 true 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 22nd day
of May, 2012.
SEAL
00865377 -1 \10422 -134
Assistant City Clerk, Dubuque, Iowa
9
COMPLETE AND RETURN TO
MR. NOM
(This Notice to be posted)
NOTICE AND CALL. OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: May 21 . , 2012.
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 said meeting
is as follows:
$6,965,000 Taxable General Obligation Bonds, Series 2012C
$7,595,000 General Obligation Bonds, Series 2012D
Resolution directing the advertisement of Bonds for sale, approving electronic
bidding procedures and authorizing distribution of a Preliminary Official
Statement
Such additional matters as are set forth on the additional 8 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.
I • 490),Art47,0
City Cler.. , Dubuque, Iowa
May 21, 2012
The City Council 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:
* * * * * * * *
1
Council Member Ric Jones introduced the following Resolution
entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$6,965,000 TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012D AND
$7,595,000 GENERAL OBLIGATION BONDS, SERIES 2012D, APPROVING
ELECTRONIC BIDDING PROCEDURES, AND AUTHORIZING DISTRIBUTION
OF A PRELIMINARY OFFICIAL STATEMENT" and moved its adoption. Council
Member Karla Braig seconded the Resolution to adopt. The roll was called
and the vote was,
AYES:
David Resnick, Lynn Sutton, Karla Braig,
Mayor Roy Buol, Joyce Connors,Ric Jones, Kevin Lynch
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 133 -12
RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$6,965,000 TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012C
AND $7,595,000 GENERAL OBLIGATION BONDS, SERIES 2012D,
APPROVING ELECTRONIC BIDDING PROCEDURES, AND AUTHORIZING
DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT
WHEREAS, the City of Dubuque, Iowa (the "City ") is in need of funds to pay
costs of reconstruction, extension and improvement of the Dubuque Regional Airport;
E911 Tower relocation; equipping the municipal fire department; rehabilitation and
improvement of existing City parks; FEMA land buyouts for the acquisition and
demolition of abandoned, dilapidated or dangerous buildings, structures or properties,
and the remediation of property and buildings damaged by a disaster under Iowa Code
Section 29C.2 which are located in an area declared a disaster emergency by the
President of the United States; acquisition, construction, extension and improvement of
works and facilities useful for the collection, treatment and disposal of sewage and
industrial waste and for the collection and disposal of surface water and streams;
acquisition, construction, improvement, repair and equipping of the municipal water
utility and real and personal property useful for providing potable water, essential
corporate purpose projects, and it is deemed necessary and advisable that the City issue
general obligation bonds for said purpose in the amount of not to exceed $8,650,000 as
authorized by Section 384.25 of the Code of Iowa; and
2
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
pertaining 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
furnished 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 completeness of documents, materials or statements made or
furnished in connection with the sale, issuance or marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Dubuque, Iowa.
Asst . City Clerk of the City of Dubuque, Iowa
(End of Notice)
7
PASSED AND APPROVED this 21st day of May, 2012.
ATTEST:
Assistant City Clerk
Mayor
CERTIFICATE
STATE OF IOWA
) SS
COUNTY OF DUBUQUE
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 true 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 22nd day
of May, 2012.
SEAL
00865377 -1 \10422 -134
\';
Assistant City Clerk, Dubuque, Iowa
9
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
R. MARK CORY
rcory@ahterslaw.com
May 14, 2012
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: $6,965,000 Taxable General Obligation Bonds, Series 2012C
$7,595,000 General Obligation Bonds, Series 2012D
Dear Ms. Larson:
Direct Dial:
(515)246 -0378
With this letter I am enclosing suggested proceedings to direct the advertisement
of the above Bonds for sale, and to approve the form of Notice of Bond Sale. The Notice
of Bond Sale assumes that the sale will be set for 11:00 A.M. on June 4, 2012. The
Notice also assumes that the Council will meet at 6:30 P.M. on June 4, 2012 to award the
Bonds to the best bidders. If any of those details need to be revised, please let me know
so that the Notice and proceedings can be revised accordingly.
The proceedings assume that your financial consultant has recommended to the
Council that electronic bidding procedures be utilized for this bond sale. Based upon this
recommendation, the Iowa Code requires that the Council make a finding that the
recommended procedure will provide reasonable security and maintain the integrity of
the competitive bidding process and facilitate the delivery of bids by interested parties
under the circumstances of the particular sale. The proceedings enclosed are prepared on
the basis that the Council will agree with the recommendation and make the necessary
findings.
The Notice of Bond Sale must be published at least one time. The sale may be
held at any time, but not less than four days following the date of the last publication. An
extra copy of the notice is enclosed for use by the newspaper.
May 14, 2012
Page 2
The resolution also authorizes a preliminary Official Statement to be completed
and distributed in connection with the offering of the Bonds for sale. A draft copy of the
preliminary Official Statement will be delivered to you separately by Public Financial
Management, and should be forwarded to the City Council with the enclosed
proceedings.
Careful review of the draft Official Statement by appropriate City staff and
members of the City Council is an important step in the offering of the Bonds for sale to
the public. The U.S. Securities and Exchange Commission (the "Commission ") has
stated that "issuers are primarily responsible for the content of their disclosure documents
and may be held liable under the federal securities laws for misleading disclosure." In
several recent enforcement proceedings, the Commission has made clear that it expects
public officials to generally review disclosure documents in light of their unique
knowledge and perspectives on the issuer and its financial circumstances, or else to
ensure that appropriate procedures are in place to provide the necessary review.
As you know, Rule 15c2 -12 of the Commission requires prospective purchasers of
the Bonds to obtain and review an official statement that has been "deemed final" by the
City prior to submitting a bid to purchase the Bonds. For this purpose, the official
statement may omit certain information that is dependent upon the pricing of the issue
(such as interest rates, bond maturities and redemption features), but should otherwise be
accurate and complete. The enclosed resolution authorizes the Finance Director to
complete the draft document, and thereafter authorizes its distribution in connection with
the offering of the Bonds to the public.
As always, an extra copy of the proceedings is enclosed to be completed as the
original and certified back to this office for our transcript of the action taken, together
with publisher's affidavit covering publication of the Notice of Bond Sale.
If any questions arise, please keep me advised.
RMC:dc
encl.
cc: Ken TeKippe (w /encl.)
Tionna Pooler (w /encl.)
00865381 -1 \ 10422 -134
PRELIMINARY OFFICIAL STATEMENT DATED MAY , 2012
New Issues Rating: Application Made
Assummg compliance with certain covenants; an the opinion of Ahlers & Cooney, P C, Bond Counsel, under present law and assuming continued compliance with the requirements
of the Internal Revenue Code of 1986, as amended (the "Code') the interest on the Series 2012C Bonds will be includible m the gross income of the owners thereof for federal
income tax purposes, and the interest on the Series 2012D Bonds will be excluded from gross mcome for federal income tax purposes Interest on the Series 2012D Bonds as not an
item of tax preference for purpose of the federal alternative minimum tax unposed on in davichint s and corporations under the Code However, with respect to corporations (as ckfuaedfor
federal income tax purposes), such interest on the Sens 2012D Bonds is mcluckd an adjusted current earnmgs far the purpose of determining the alternative minimum tax imposed on certain
corporations The Series 2012D Bonds will NOT be designated as "quahfied tax- exempt obligations” See TAXABILITY OF INTEREST and TAX EXEMPTION AND RELATED
CONSIDERATIONS sections herein for a more detailed discussion
CITY OF DUBUQUE, IOWA
$6,965,000* Taxable General Obligation Bonds, Series 2012C
$7,595,000* General Obligation Bonds, Series 2012D
BIDS RECEIVED Monday, June 4, 2012, 11 00 o'clock A M , Central Time
AWARD Monday, June 4, 2012, 6 30 o'clock P M , Central Time
Dated: Date of Delivery (June 28, 2012) Principal Due: June 1 as shown inside front cover
The $6,965,000* Taxable General Obligation Bonds, Series 2012C (the "Series 2012C Bonds ") and the $7,595,000* General
Obligation Bonds, Series 2012D (the "Series 2012D Bonds ") (collectively the "Bonds ") are being issued pursuant to Division III of
Chapter 384 of the Code of Iowa, and resolutions to be adopted by the City Council of the City of Dubuque, Iowa (the "City ")
Proceeds of the Series 2012C Bonds will be used to provide funds to pay the costs of rnstruction, extension and improvement of the
Dubuque Regional Airport, and aiding in the planning, undertaking„ad carrying `iuti of urban renewal project activities for the
Dubuque Industrial Center West Economic Development Districk.<eW ") and thereater Downtown Urban Renewal District,
including those costs associated with grading, road construction, tg` utilities extensions and development of a recreation area on the
South Siegert Farm area of DICW and the funding of developm`centives in the Washington Neighborhood Subarea of the Greater
Downtown Urban Renewal District Proceeds of the Series 2021 Bonds wilLbe used to pay costs of E911 Tower relocation,
equipping the municipal fire department, rehabilitation and improvementof r ity parks, FEMA land buyouts for the acquisition
and demolition of abandoned, dilapidated or dang uus buildings, struerarea or properties, and the remediation of property and
buildings damaged by a disaster under Iowa Code S ..29C 2 which artleeated in an area declared a disaster emergency by the
President of the United States, acquisition, constructs and miprat of works and facilities useful for the collection,
treatment and disposal of sewage and industrial waste for.. .e collection am .posal of surface water and streams, acquisition,
construction, improvement, repair and equipping of the unicipal 4l utility an and personal property useful for providing
potable water, aiding in the plannm ...;aking and ca " " "; g out ar? rene sect activities for the Dubuque Industrial
Center West Economic Developm ent the Greater nto : ri , news strict, including those costs associated with
s and deve, p "f a recr area on the South Siegert Farm area of DICW,
}ck ponit ri - eglnsition and in allation of security cameras in the Locust Ramp,
Vin, repair and rovement of Fire Station #4, the Civic Center and the Grand
eza ations o ;City for which the City will pledge its power to levy direct ad
r
1
grading, road construction, bridge,
City Hall repairs and miprovemen
Library repairs and improvements, a
River Conference Center e Bonds Wig
valorem taxes to the e Bon
ies exte'
udmg brit
constru
The Bonds will
nominee of The
be made in book -e
certificates represents
Minneapolis, Minnesota
and interest to its participari
principal shall be paid to the re
day of the month preceding the
d as fully
tory Trust Co
rm only, in th
it interest in
egistrar ") wil
subsequent
d holder
est paym
d Bon'
( "DT
cipal
onds
thout cour ;'; when issued, will be registered in the name of Cede & Co , as
TC will actissecurities depository for the Bonds Individual purchases may
t of $5,000 and integral multiples thereof Purchasers will not receive
based The City's registrar /paying agent, Wells Fargo Bank, N A ,
principal =and interest on the Bonds to DTC, which will in turn remit such principal
sements to the beneficial owners of the Bonds as described herein Interest and
bond as shown on the records of ownership maintained by the Registrar on the 15th
to (the "Record Date ")
nit
THE BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER
MINIMUM BID:
GOOD FAITH DEPOSIT:
TAX MATTERS:
SERIES 2012C BONDS
$6,888,385
Required of Purchaser Only
Federal Taxable
State Taxable
See "TAXABILITY OF INTEREST" for more
information
SERIES 2012D BONDS
$7,511,455
Required of Purchaser Only
Federal Tax - Exempt
State Taxable
See "TAX EXEMPTION AND RELATED
CONSIDERATIONS" for more information
The Bonds are offered, subject to prior sale, withdrawal or modification, when, as, and if issued subject to the legal opinion of Ahlers
& Cooney, P C , Bond Counsel, of Des Moines, Iowa, to be furnished upon delivery of the Bonds It is expected that the Bonds will be
available for delivery on or about June 28, 2012 This Preliminary Official Statement will be further supplemented by offering prices,
interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery date, and underwriter, together with any
other information required by law, and shall constitute a "Final Official Statement" of the City with respect to the Bonds, as defined in
Rule 15c2 -12
*Preliminary, subject to change
CITY OF DUBUQUE, IOWA
$6,965,000* Taxable General Obligation Bonds, Series 2012C
MATURITY: June 1 as follows:
Year Amount*
2014 $265,000
2015 300,000
2016 310,000
2017 310,000
2018 315,000
2019 325,000
2020 330,000
Year Amount* Year Amount*
2021 $345,000 2028 $415,000
2022 355,000 2029 430,000
2023 350,000 2030 445,000
2024 360,000 2031 465,000
2025 375,000 2032 485,000
2026 385,0,.0
2027
* PRINCIPAL
ADJUSTMENT: Preliminary; subject to change. The City reserves t1 ;::t to increase or decrease the aggregate
principal amount of the Series 2012C , s. Such c ":'`: will be in increments of $5,000 and
may be made in any of the maturi 'e ' e purchase pnill be adjusted proportionately to
reflect any change in issue size.
INTEREST:
December 1, 2012 and semiannually fter.
June 1, 20 e subject to call on id date or on any date
crued inte e + date of call.
$7,595,000* Gen Ob Bond ries 2012D
REDEMPTION: Series 2012C Bonds
thereafter upon terms o
MATURITY: June 1 as
Ye • A ' t*
2014 . $525,000
2015 535,000
2016 .. 535,000 I;
<< > 20...'x......... >. 545,000
2018' <''' `!::::,. 565,000
2019 .360,000.,;:'
2020 `'7.5,000
t* Year Amount*
$375,000 2028 $265,000
21 390,000 2029 270,000
202 370,000 2030 280,000
4 390,000 2031 295,000
390,000 2032 300,000
202+ 410,000
2027 420,000
* PRINCIPAL
ADJUSTMENT: Pre' a.ry; subjearo change. The City reserves the right to increase or decrease the aggregate
princip amount,le Series 2012D Bonds. Such change will be in increments of $5,000 and
may be ri a ;;:i a v of the maturities. The purchase price will be adjusted proportionately to
reflect any e` "in issue size.
INTEREST: December 1, 2012 and semiannually thereafter.
REDEMPTION: Series 2012D Bonds due after June 1, 2019 will be subject to call on said date or on any date
thereafter upon terms of par plus accrued interest to date of call.
COMPLIANCE WITH S.E.C. RULE 15c2 -12
Municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations,
Securities Exchange Act of 1934, Rule 15c2 -12 Municipal Securities Disclosure.
Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to
prospective bidders. Its primary purpose is to disclose information regarding the Bonds to prospective bidders in the
interest of receiving competitive bids in accordance with the NOTICE OF BOND SALE and TERMS OF OFFERING
contained herein. Unless an addendum is received prior to the sale, this document shall be deemed the "Near Final
Official Statement ".
Review Period: This Preliminary Official Statement has been distributed to members of the legislative body and other
public officials of the City as well as to prospective bidders for an objective review of its disclosure. Comments,
omissions or inaccuracies must be submitted to Public Financial Management, Inc. (the "Financial Advisor ") at least
two business days prior to the sale. Requests for additional information or corrections in the Preliminary Official
Statement received on or before this date will not be considered a qualification of a bid received. If there are any
changes, corrections or additions to the Preliminary Offici, t'atement, prospective bidders will be informed by an
addendum at least one business day prior to the sale.
Final Official Statement: Upon award of sale of the B the legislative body will authorize the preparation of a
Final Official Statement that includes the offering prices, in a rates egate principal amount, principal amount
per maturity, anticipated delivery date and o information r- $ , ::i aw and the identity of the underwriter (the
"Syndicate Manager ") and syndicate mem
Syndicate Manager within seven business days
ies of the Official Statement will be delivered to the
e bid acc e.
REPRESENTATIONS
No dealer, broker, salespers a'Ter . "erson has beep tL b 'ty to give any information or to make any
representations, other than t ontamed in the Preli ' icial St ent. This Preliminary Official Statement
does not constitute any offer to i er the solicitation of a i er to buy, nor shall there be any sale of the Bonds by any
person, in any jurisdiction in w ➢x •t i : unla 1 fors ,erson to make such offer, solicitation or sale. The
information, estimat mo pressio ini are ® ct to change without notice and neither the delivery
of this PrelimitalCiffidaMgmen any sa h under, shall, under any circumstances, create any
implication tIgiMere has been change e affairs • & City since the date hereof This Preliminary Official
Statement is s teed in connectijiWith th of the securities referred to herein and may not be reproduced or
used, in whole or MOW, for any othe p*pose.
This Preliminary Offic a tatement andllakk addenda thereto were prepared relying on information from the City and
other sources, which are beId to be rile.
Bond Counsel has not participa n reparation of this Preliminary Official Statement and is not expressing any
opinion as to the completeness or acct' of the information contained therein.
Compensation of the Financial Advisor payable entirely by the City is contingent upon the sale of the issues.
TABLE OF CONTENTS
NOTICE OF BOND SALE i
TERMS OF OFFERING ii
SCHEDULES OF BOND YEARS vii
INTRODUCTION
AUTHORITY AND PURPOSE
OPTIONAL REDEMPTION
INTEREST
PAYMENT OF AND SECURITY FOR THE BONDS
BOOK - ENTRY -ONLY ISSUANCE
FUTURE FINANCING
LITIGATION
DEBT PAYMENT HISTORY
LEGALITY
TAXABILITY OF INTEREST
TAX EXEMPTION AND RELATED CONSIDERATIONS
RELATED TAX MATTERS
CHANGES IN FEDERAL AND STATE TAX LAW
RATING, FINANCIAL ADVISOR
CONTINUING DISCLOSURE
CERTIFICATION
CITY PROPERTY VALUES
IOWA PROPERTY VALUATIONS
1/1 /2011 VALUATIONS (Taxes Payable July 1, 201
2011 GROSS TAXABLE VALUATION BY CLASS'
TREND OF VALUATIONS
LARGER TAXPAYERS
LEGISLATION
CITY INDEBTEDNESS
DEBT LIMIT
DIRECT DEBT
OTHER DEBT
INDIRECT GENERAL OBLIGATION DEBT
DEBT RATIOS
LEVIES AND T
TAX RATES IMITS ..... a,
FUNDS ON r (Cash and Inve as of March 30, 2012)
30 2013)
RTY
THE CITY
CITY GOVERNM
EMPLOYEES AND P °4!NS
OTHER POST EMPLO a BENEFITS, j '!N CONTRACTS
INSURANCE
tH
1
1
2
2
2
2
4
4
5
5
3
5
7
7
8
8
8
9
9
9
9
10
10
10
11
11
11
15
16
16
16
17
17
18
18
18
18
19
GENERAL INFORMATION... 20
LOCATION AND TRANSPORTA ' 20
LARGER EMPLOYERS 20
BUILDING PERMITS 21
U S CENSUS DATA 21
UNEMPLOYMENT RATES 21
EDUCATION 21
EFFECTIVE BUYING INCOME 22
FINANCIAL SERVICES 22
FINANCIAL STATEMENTS 22
APPENDIX A — FORMS OF LEGAL OPINIONS
APPENDIX B — JUNE 30, 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX C — FORMS OF CONTINUING DISCLOSURE CERTIFICATES
OFFICIAL BID FORMS
City of Dubuque, Iowa
Mayor & City Council
Initial Term Current Term Expires
Roy Buol Mayor 19941) 2013
Ric Jones Council Member — At Large 2005 2013
David Resnick Council Member — At Large 2008 2015
Kevin Lynch Council Member — Ward One 2005 2013
Karla Braig Council Member — Ward Two S 2015
Joyce Connors Council Member — Ward Three 1i2 2013
Lynn Sutton Council Member — Ward Four 011 2015
1) Roy Buol served on the City Council as Council Memtgc.,• r — Two from 1994 -2005 prior to
this election as Mayor in 2005.
Administration
Michael Van Milhge ty Monager
Cindy S ;;;';;; „user, Assistan fi Tanager
Teri G. $ ' Assistant CIanager
Ken Dire r;;.
Jenny : >:: son;' ';:: get Directo<; >:;
Kevin.nstahl " "': >aerk
Clt
One
A. "';a.hl
e, Toa
fond Counsel
Ahlers & Cooney, PC
Des Moines, Iowa
Financial Advisor
Public Financial Management, Inc.
Des Moines, Iowa
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 4th day of June, 2012 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
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012C, in the amount of $6,965,000, to be dated the date
of delivery
GENERAL OBLIGATION BONDS, SERIES 2012D, in the amo ` `> ;595,000, to be dated the date of delivery
(together, the "Bonds ")
Adjustment of Principal Amounts The Issuer reserves the t t>r'?3.ease or decrease the aggregate principal
amount of each series of the Bonds at the time of sale, as desc " in the Term tOffering Any such change will be in
increments of $5,000, and may be made in any of the maturrti w - purchase price ;? = +e adjusted proportionately to reflect
any change in issue size
Manner of Bidding Open bids will not be received for each s es of the B will be received by any of the
following methods
Sealed Bidding Sealed bids may be su � and will be
Dubuque, Iowa
Electronic Internet Bidding Electronic mtemet bids will be receivedat the office of the Finance Director, City Hall,
Dubuque, Iowa The bids must be submitted through the PARITY competitive'bidding system
the office of the 11" ante Director, City Hall,
Electronic Facsimile B onic facsimile bids will be received at the office of the Finance Director,
Dubuque, Iowa (facsimile n 563)m :90 or (563) 690 -6689) Electronic facsimile bids will be sealed and treated
as sealed bids �A4
Consideration of Bids AA e ti . * eceipt of bids has passed, the close of sealed bids will be announced
Sealed bids will then.,} „ ly open " .. nally,,electronic Internet bids will be accessed and announced
Official/Statement nigio er ham d an 0 tement of information pertaining to the Bonds to be offered,
Including a statement of the Term Terni§110fferm • d *' an Officia Form for each series, which is incorporated by reference as
a part of this not ikii;;, The Official *went e obtained by request addressed to the City Clerk, 50 W 13th Street,
Dubuque, Iowa 52001 lephone (56 < 9 -4100 e financial advisor to the City, Public Financial Management, Inc ,
801 Grand Avenue, Suit 300, Des Mom ,; pwa (te ne (515) 243 -2600)
Terms of Offerin ' All..bids shall b conformity with and the sale shall be in accord with the Terms of Offering as
set forth in the Official Staten ent. ;.
Legal Opinion Said BorittlAmagPld subject to the opinion of Ahlers & Cooney, P C , Attorneys of Des Moines,
Iowa, as to the legality and their opinion ill be furnished 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 completeness of documents,
materials or statements made or furnished in connection with the sale, issuance or marketing of the Bonds
Rights Reserved The right is reserved to reject any or all bids, and to waive any irregularities as deemed to be in the
best interests of the public
By order of the City Council of the City of Dubuque, Iowa
City Clerk of the City of Dubuque, Iowa
i
TERMS OF OFFERING
CITY OF DUBUQUE, IOWA
Bids for the purchase of the $6,965,000* Taxable General Obligation Bonds, Series 2012C and the $7,595,000*
General Obligation Bonds, Series 2012D (collectively, the "Bonds ") will be received on Monday, June 4, 2012 until
11:00 o'clock A.M. Central Time after which time they will be tabulated. The City Council will consider award of the
Bonds at 6:30 o'clock P.M. Central Time, on the same day. Questions regarding the sale of the Bonds should be
directed to the Finance Director at (563) 589 -4133. In addition to the provisions of the official NOTICE OF BOND
SALE, this section sets forth the description of certain of the terms the Bonds as well as the TERMS OF OFFERING
with which all bidders and bid proposals are required to comply, as follows:
DETAILS OF THE SERIES 2012C; II_
DS
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012C (the "Series 2012C Bonds "), will be in the principal
amount of $6,965,000 *, will be dated the date of delivery (June 28, 2012), will be in the denomination of $5,000 or
multiples thereof, and will mature June 1, as follows:
Year Amount* Year Amount* Year . Amount*
2014 $265,000 2021 ::::::::::::::: $345,000 20 4;;; $415,000
2015 300,000 2022 355,000 2029 =::: 430,000
2016 310,000 2023 350,000 `! € 2030 445,000
2017 310,000 4 360,000 ''' 2031 65,000
2018 315,000 375,000 2032 485,000
2019 325,000 .: 385,000
2020 330,000 2 X10, 000
* Preliminary, subject to change. The City res the rim t3ease or :crease the aggregate principal
amount of the Series 2012C Bonds. Such chan• 1 cr"� ° f $3,y000 and may be made in any of
the maturities The purchase price will be adjuste onately toWct any change in issue size
DETAILS OF THE S L S 2012D BONDS
GENERAL OBLIGATION BONDS, SERIES 201Z1N' `S
$7,595,000 *, will be dated the ` =date ;:of del (June 21
thereof, and will mature June 1, as %lows:
Year Amount* Year9 Amount* Year Amount*
2014 $525,000 2021 $375,000 2028 $265,000
2015 535,000 2022 390,000 2029 270,000
2016 535,000 2023 370,000 2030 280,000
2017 545;000 2024 390,000 2031 295,000
2018 565;000 2025 390,000 2032 300,000
2019 360,000 2026 410,000
2020 375,000 2027 420,000
y:: #a
2012D Bonds "), will be in the principal amount of
2), will be in the denomination of $5,000 or multiples
* Preliminary, subject to change The City reserves the right to increase or decrease the aggregate principal
amount of the Series 2012D Bonds Such change will be in increments of $5,000 and may be made in any of
the maturities The purchase price will be adjusted proportionately to reflect any change in issue size
ii
OPTIONAL REDEMPTION
Bonds due after June 1, 2019 will be subject to call prior to maturity in whole, or from time to time in part, in any
order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon
terms of par plus accrued interest to date of call. Notice of such call shall be given at least thirty (30) days prior to the
date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown on the
registration books.
INTEREST
Interest on the Bonds will be payable on December 1, 2012 and semiannually on the 14 day of June and December
thereafter. Interest and principal shall be paid to the registered holder of a bond as shown on the records of ownership
maintained by the Registrar on the 15th day of the month preceding the rest payment date (the "Record Date ").
..:.............
................
................
..............
Interest will be computed on the basis of a 360 -day year of twelve 31 " i'! months and will be rounded pursuant to
rules of the Municipal Securities Rulemaking Board.
GOOD FAITH DEPOSITS
A good faith deposit in the amount of $69,650 for the Series 2012C Bonds ( "the Series 2012C Deposit ") and $75,950
for the Series 2012D Bonds ( "the Series 2012D Deposit" is required from the lowest bidder only of each series of the
Bonds. The lowest bidder is required to submit such deposit payable to the order of the City in the form of either (i) a
cashier's check provided to the City or its Financial Advisor prior to the opening of bids or (ii) a wire transfer as
instructed by the City's Financial Advisor no than 1:00 P.M. Central Time on the day of sale of the Bonds. If not
so received, the bid of the lowest bidder may ed and the City may direct the second lowest bidder to submit a
deposit and thereafter may award the sale o p to the same. No interest on a deposit will accrue to the
successful bidder (the "Purchaser(s) "). The Seri =< 1 e $ +sit and th!ries 2012D Deposit will be applied to the
purchase price of the respective series of Bonds. A e eves chasers fails to honor its accepted bid proposal,
any deposit will be retained by the City.
FORM OF B � � 1 AWA
All bids shall be unconditional for each series of the Bond or a price not less than $6,888,385 for the Series 2012C
Bonds and $7,511,455 for the Series 2012D Bonds, plus accrued interest, and shall specify the rate or rates of interest
in conformity to the limitations set forth under the "RATES OF INTEREST" section. Bids must be submitted on or in
substantial compliance with the OFFICIAL BID FORMS provided by the City. The Bonds will be awarded to the
bidder offering the lowest interest rate to be determined on a true interest cost (the "TIC ") basis assuming compliance
with the "GOOD FAITH DEPOSITS" section. The TIC shall be determined by the present value method, i.e., by
ascertaining the semiatal rate, compounded semiannually, necessary to discount to present value as of the dated date
of the Bonds, the amount payable on each interest payment date and on each stated maturity date or earlier mandatory
redemption, so that the aggregate of such amounts will equal the aggregate purchase price offered therefore. The TIC
shall be stated in terms of an annual percentage rate and shall be that rate of interest, which is twice the semiannual
rate so ascertained (also knovn as the Canadian Method). The TIC shall be as determined by the Financial Advisor
based on the TERMS OF OFFERING and all amendments, and on the bids as submitted. The Financial Advisor's
computation of the TIC of each bid shall be controlling. In the event of tie bids for the lowest TIC, the Bonds will be
awarded by lot.
The City will reserve the right to: (i) waive non - substantive informalities of any bid or of matters relating to the receipt
of bids and award of the Bonds, (ii) reject all bids without cause and (iii) reject any bid which the City determines to
have failed to comply with the terms herein.
iii
RATES OF INTEREST
Considering each series separately, the rates of interest specified in the bidder's proposal must conform to the
following limitations:
1. For each respective series, each annual maturity must bear the same interest rate. For each respective series,
each annual maturity must bear a single rate of interest from the dated date of the Bonds to the date of
maturity.
2. For each respective series, rates of interest bid must be in multiples of one - eighth or one - twentieth of one
percent.
3. For each respective series, each rate of interest specified for Bonds of any annual maturity shall not be less
than a rate of interest specified for any earlier maturity. Rates mus : - level or in ascending order.
RECEIPT OF BID
Forms of Bids: Bids must be submitted on or in substantial comp iance` :: the NOTICE OF BOND SALE and
OFFICIAL BID FORMS provided by the City or PARITY'® competitive bidd 3' a ::::�ystem (the "Internet Bid System ").
The City shall not be responsible for malfunction or mistake: made by any pe or as a result of the use of an
electronic bid or the means used to deliver or complete a bid. The use of such facil'•i : "; ":..; or means is at the sole risk of
the prospective bidder who shall be bound by the terms of the bid as received.
No bid will be accepted after the time spec]. in the NOTICE OF BOND SALE. The as maintained by the
Internet Bid System shall constitute the o' i - with respect to all bids submitted. A-bid may be withdrawn
before the bid deadline using the same metho s ° rmit the bid. If more than one bid is received from a bidder,
the last bid received shall be considered.
Sealed Bidding: Sealed bids may' be iubnutted and
13th Street, Dubuque, Iowa 52001. I
<-of the City Finance Director, 50 W.
Electronic Internet Bidding: Electronic internet bids mus submitted through the Internet Bid System. Information
about the Electronic Internet Bid System may be obtained balling (212) 404 -8102.
Each bidder shall be solely responsible for making necessary'' arrangements to access the Internet Bid System for
purposes of submitting its internet bid in a timely manner and in compliance with the requirements of the NOTICE OF
BOND SALE and ;;OFFICIAL BID; FORMS. The City is permitting bidders to use the services of the Internet Bid
System solely as a communication mechanism to conduct the Internet bidding and the Internet Bid System is not an
agent of the City. Provisions of the NOTICE OF BOND SALE and OFFICIAL BID FORMS shall control in the event
of conflict with information provided b' the Internet Bid System.
Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the City Finance Director, 50
W. 13th Street, Dubuque, Iowa 52001 (facsimile number: (563) 589 -0890 or (563) 690- 6689). Electronic facsimile bids
will be sealed and treated as sealed bids.
BOOK - ENTRY -ONLY ISSUANCE
The Bonds will be issued by means of a book -entry only system with no physical distribution of bond certificates made
to the public. The Bonds will be issued in fully registered form and one bond certificate, representing the aggregate
principal amount of the Bonds maturing in each year will be registered in the name of Cede & Co. as nominee of The
Depository Trust Company ( "DTC "), New York, New York, which will act as securities depository of the Bonds.
Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants. Principal and interest are
payable by the Registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest
payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to
beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial
iv
owners. The Purchaser(s), as a condition of delivery of the Bonds, will be required to deposit the bond certificates
with DTC.
MUNICIPAL BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of
the bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole
option and expense of the Purchaser(s). Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the Purchaser(s), except that, if the City has requested and received a rating on the Bonds
from a rating agency, the City will pay that initial rating fee. Any other rating agency fees shall be the responsibility of
the Purchaser(s). Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the
Purchaser(s) shall not constitute cause for failure or refusal by the Purchaser(s) to accept delivery on the Bonds. The
City reserves the right in its sole discretion to accept or deny changes tote financing documents requested by the
insurer selected by the Purchaser(s).
DELIVERY:,
The Bonds will be delivered to the Purchaser(s) via Fast Automated Securities Transfer ( "FAST ") delivery with the
Registrar holding the Bonds on behalf of DTC, against full payment in immediately available cash or federal funds.
The Bonds are expected to be delivered within forty-five, days after the sale. Should delivery be delayed beyond sixty
days from the date of sale for any reason except failure of performance by the Pur :a aer(s), the Purchaser(s) may
withdraw their bid and thereafter their interest in and liability for the Bonds will cease. v' ::n: the Bonds are ready for
delivery, the City will give the Purchaser(s) : working days notice of the delivery dat 3 d the City will expect
payment in full on that date, otherwise rese right at its option to determine that the Purchaser(s) failed to
comply with the offer of purchase.
INFORMAT FROG ' CHASE('
The Purchaser(s) will be required to certify to the City immedi> e .the opening of bids: (i) the initial public
offering price of each maturity of the Bonds (not including sales to bo ouses and brokers or similar persons or
organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of the Bonds
(not less than 10% of each maturity) were sold to the public; or (ii) if less than 10% of any maturity has been sold, the
price for that maturity determined as of the time of the sale based Ron the reasonably expected initial offering price to
the public; and;; iii) that the initial public offering price does not exceed their fair market value of the Bonds on the sale
date. The Purer(s) will also be required to provide a certificate at closing confirming the information required by
this paragraph.
OFFICIAL STATEMENT
The City has authorized the preparation of'Preliminary Official Statement containing pertinent information relative to
the Bonds. The Preliminary Official Sta;ent when further supplemented with maturity dates, principal amounts, and
interest rates of the Bonds, and any other information required by law or deemed appropriate by the City, shall
constitute a Final Official Statement of the City with respect to the Bonds, as that term is defined in Rule 15c2 -12 of
the Securities and Exchange Commission (the "Rule "). By awarding the Bonds to any underwriter or underwriting
syndicate submitting an OFFICIAL BID FORM therefore, the City agrees that, no more than seven (7) business days
after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which
each series of the Bonds are awarded up to 30 copies for the Series 2012C Bonds and up to 30 copies for the Series
2012D Bonds of the Final Official Statement to permit each "Participating Underwriter" (as that term is defined in the
Rule) to comply with the provisions of such Rule. The City shall treat the senior managing underwriter of the
syndicate to which the Bonds are awarded as its designated agent for purposes of distributing copies of the Final
Official Statement to the Participating Underwriter. Any underwriter executing and delivering an OFFICIAL BID
FORM with respect to the Bonds agrees thereby that if its bid is accepted by the City, (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for
purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement.
v
CONTINUING DISCLOSURE
In order to assist bidders in complying with paragraph (b)(5) of Rule 15c2 -12 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended, the City will undertake, pursuant to
the resolutions authorizing issuance of the Bonds and the Continuing Disclosure Certificates for the Bonds, to provide
certain annual financial information and notices of the occurrence of certain material events. A description of these
undertakings is set forth in APPENDIX C of this Preliminary Official Statement. The City will deliver the Continuing
Disclosure Certificates at closing, and any failure on the part of the City to deliver the same shall relieve the
Purchaser(s) of its obligation to purchase the Bonds. The City has complied in all material respects with its previous
continuing disclosure undertakings.
CUSIP NUMBERS
It is anticipated that the Committee on Uniform Security Identification Procedures ( "CUSIP ") numbers will be printed
on the Bonds and the Purchaser(s) must agree in the bid proposal to pay the cost thereof In no event will the City,
Bond Counsel or Financial Advisor be responsible for the review or express any opinion that the CUSIP numbers are
correct. Incorrect CUSIP numbers on said Bonds shall not be cause for the Purchaser(s) to refuse to accept delivery of
said Bonds.
BY ORDER OF T I 1 <.. COUNCIL
Kevin Firnstahl, City Cl...........
City of Dubuque
50 W. 13th Street
Dubuque, Iowa 52001
vi
SCHEDULE OF BOND YEARS
$6,965,000*
CITY OF DUBUQUE, IOWA
Taxable General Obligation Bonds, Series 2012C
Bonds Dated: June 28, 2012
Interest Due: December 1, 2012 and each June 1 and December 1 to maturity
Principal Due: June 1, 2014 -2032
Year Principal *
2014 $265,000
2015 300,000
2016 310,000
2017 310,000
2018 3
2019 32
2020 330,
2021 345,00
2022 355,000
2023 350,000
2024 360,000
2025 375,000
2026 385,000
2027 400,000:,
2028 415,000
2029 430,000
2030 445,000
2031 465,000
2032 .: `:::::::':':485,000
Bond Years
510.13
877.50
1,216.75
1,526.75
1,866.38
2,250.63
2,615.25
3,079.13
3,523
.75'
0
4,846.88
5,361.13
5,970.00
6,608.88
7,277.75
7,976.63
8,800.13
9,663.63
Average Maturity (dated date): 11.786 Years
* Prehminary, subject to change
vii
Cumulative
Bond Years
510.13
1,387.63
2,604.38
4,131.13
5,997.50
8,248.13
10,863.38
13,942.50
17,465.88
21,289.63
25,582.63
30,429.50
35,790.63
41,760.63
48,369.50
55,647.25
63,623.88
72,424.00
82,087.63
SCHEDULE OF BOND YEARS
$7,595,000*
CITY OF DUBUQUE, IOWA
General Obligation Bonds, Series 2012D
Bonds Dated: June 28, 2012
Interest Due: December 1, 2012 and each June 1 and December 1 to maturity
Principal Due: June 1, 2014 -2032
Year Principal * Bond Years
2014 $525,000 1,010.63
2015 535,000 1,564.88
2016 535,000 2,099.88
2017 545,000 2,68 .13
2018 56000 3,347.63
2019 360,000 2493.00
2020 375,000 2,971.88
2021 375,000'::; 3,346.88
2022 390,000 3,870.75
2023 370,000 4,04225
2024 390,000 4,650.75
2025 390,000 5,040.75
2026 410,000 5,709.25
2027 420,000 6,268.50
2028 265,000 4,220.13
2029 270,000 4,569.75
2030 280,000 5,019.00
2031 295,000 5,582.88
2032 300,000 5,977.50
Average Maturity (dated date): 9.805 Years
* Prehminary, subject to ch
viii
Cumulative
Bond Years
1,010.63
2,575.50
4,675.38
7,359.50
10,707.13
13,200.13
16,172.00
19,518.88
23,389.63
27,431.88
32,082.63
37,123.38
42,832.63
49,101.13
53,321.25
57,891.00
62,910.00
68,492.88
74,470.38
OFFICIAL STATEMENT
CITY OF DUBUQUE, IOWA
$6,965,000* Taxable General Obligation Bonds, Series 2012C
$7,595,000* General Obligation Bonds, Series 2012D
INTRODUCTION
This Preliminary Official Statement contains information relating to the City of Dubuque, Iowa (the "City ") and its
issuance of $6,965,000* Taxable General Obligation Bonds, Series 2012C (the "Series 2012C Bonds ") and the
$7,595,000* General Obligation Bonds, Series 2012D (the "Series 2012D Bonds ") (collectively the "Bonds ").
This Preliminary Official Statement has been executed on behalf of the
distributed in connection with the sale of the Bonds authorized therein.
Management, Inc., 801 Grand Avenue, Suite 3300, Des Moines, I_
Information can also be obtained from Mr. Ken TeKippe, Fina
Dubuque, Iowa 52001, or by telephoning (563) 589 -4133.
The Bonds are being issued pursuant to Division III of Chapter 384 of the Code of I
by the City Council of the City. Proceeds of the Series 2012C Bonds will be used to p
reconstruction, extension and improvement of the Dubuque Regional Airport; and aiding
and carrying out of urban renewal project activities for the Dubuque Industrial Center Wes
AUTHORITY AND PURPOSE
City by its Finance Director and may be
ries may be directed to Public Financial
309, or by telephoning (515) 243 -2600.
tor, City of Dubuque, 50 W. 13th Street,
nd resolutions to be adopted
funds to pay the costs of
planning, undertaking
onomic Development
District ( "DICW ") and the Greater Downtown Urban Renewal District, including those costs associated with grading,
road construction, bridge, utilities extensions and development of a recreation area on the South Siegert Farm area of
DICW and the funding of development incentives in the Washington ';;;;;;Neighborhood Subarea of the Greater
Downtown Urban Renewal District. Proceeds of the Series 2012D Bonds will:::::be used to pay costs of E911 Tower
relocation; equipping the municipal fire department; rehabilitation and improvement of existing City parks; FEMA
land buyouts for the acquisition and demolition of abandoned, dilapidated or dangerous buildings, structures or
properties, and the remediatf property and buildings damaged by a disaster under Iowa Code Section 29C.2
which are located in an area " +'' +; Oared a disaster emergency by the President of the United States; acquisition,
construction, extension and improvement of works and facilities useful for the collection, treatment and disposal of
sewage and industrial waste and for the collection and disposal of surface water and streams; acquisition,
construction, improvement, repair and equipping of the municipal water utility and real and personal property useful
for providing potable water; aiding in the planning, undertaking and carying out of urban renewal project activities
for the Dubuque Industrial Center West EconoriG Development District and the Greater Downtown Urban Renewal
District, including those costs associated with grading, road construction, bridge, utilities extensions and development
of a recreation area once South Siegert Farm area of DICW; City Hall repairs and improvements, including brick
tuck- pointing; acquisitiorrinstallation of security cameras in the Locust Ramp; Library repairs and improvements;
and reconstruction, repair :improvement of Fire Station #4, the Civic Center and the Grand River Conference
Center.
The estimated Sources and Uses of the 'Bonds are as follows:
Sources of Funds
Par Amount of Bonds
Uses of Funds
Project Fund Deposits
Underwriter's Discount
Cost of Issuance & Contingency
Total Uses
*Preliminary, subject to change
Series 2012C Bonds
1
$6,965,000.00*
$6,855,243.00
76,615.00
33,142.00
$6,965,000.00*
Series 2012D Bonds
$7,595,000.00*
$7,474,553.00
83,545.00
36,902.00
$7,595,000.00*
OPTIONAL REDEMPTION
Bonds due after June 1, 2019 will be subject to call prior to maturity in whole, or from time to time in part, in any
order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon
terms of par plus accrued interest to date of call. Notice of such call shall be given at least thirty (30) days prior to the
date fixed for redemption to the registered owners of the Bonds to be redeemed at the address shown on the
registration books.
INTEREST
Interest on the Bonds will be payable on December 1, 2012 and semiannually on the 14 day of June and December
thereafter. Interest and principal shall be paid to the registered holder of a bond as shown on the records of ownership
maintained by the Registrar on the 15th day of the month preceding th est payment date (the "Record Date ").
Interest will be computed on the basis of a 360 -day year of twelve months and will be rounded pursuant to
rules of the Municipal Securities Rulemaking Board.
PAYMENT OF AND SECURITY FOR THE BONDS
The Bonds are general obligations of the City and the unlimited taxing powers of ity are irrevocably pledged for
their payment. Upon issuance of the Bonds, the City will levy taxes for the years a mounts sufficient to provide
100% of annual principal and interest due on all Bonds. If however, the amount cre +i _ $ . the debt service fund for
payment of the Bonds is insufficient to pay principal and interest, whether from transfer om original levies, the
City must use funds in its treasury and is required to levy ad valorem taxes upon all tax: ® property in the City
without limit as to rate or amount sufficient to pay the debt service deficiency.
BOOK - ENTRY -ONLY ISSUANCE
..............
..............
..............
The information contained in the foll ng paragraphs of this subsection "Book -Entry -Only Issuance" has been
extracted from a schedule prepared Depository Trust Company ('DTC ") entitled "SAMPLE OFFERING
DOCUMENT LANGUAGE DESCRIBING DTC AND BOOk- ENTRY -01Y ISSUANCE." The information in this
section concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be
reliable, but the City des no responsibility for the accuracy thereof.
The Depository Trust Company ( "DTC "), New York, NY, will act as securities depository for the securities (the
"Securities "). The Securities will be issued as fully- registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -
registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of
such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500
million, one certificate will be issued with respect to each $500 million of principal amount, and an additional
certificate will be issued with respect to any remaining principal amount of such issue.
DTC, the world's largest securities depository, is a limited- purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and
municipal debt issues, and money market instruments from over 100 countries that DTC's participants (the "Direct
Participants ") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges
between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing
Corporation ( "DTCC "). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities
2
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants "). DTC has Standard &
Poor's rating: AA +. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security (the
"Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect
Participants acting on behalf of Beneficial Owners. Beneficial Owners st receive certificates representing their
ownership interests in Securities, except in the event that use of book -entry system for the Securities is
discontinued.
To facilitate subsequent transfers, all Securities deposited by Di art. s with DTC are registered in the name
of DTC's partnership nominee, Cede & Co., or such other name as may be ted by an authorized representative
of DTC. The deposit of Securities with DTC and their registration in the na . Cede & Co. or such other DTC
nominee do not affect any change in beneficial ownership. DTC has no knowledg e actual Beneficial Owners of
the Securities; DTC's records reflect only the identity of the Direct Participants to w e ccounts such Securities are
credited, which may or may not be the Beneficial Owns The Direct and Indi articipants will remain
responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of
significant events with respec,. 1:« the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Security documents b' example, Beneficial Owners of Securities may wish to ascertain that the nominee
holding the Securities for th 'irbenefit has agreed to obtain and transmit notices to Beneficial Owners. In the
alternative, Beneficial Owners xn . wish to provide their names and addresses to the Registrar and request that copies
of notices be provided directly to th::::..::
........... ............................... .
Redemption notices shall be sent to DT ` =r'.: less tha'' + ::;;... e ecurities within an issue are being redeemed, DTC's
practice is to determine by lot the amount o' ;::....,.interest of aeh Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co., nor any other e nominee, will consent or vote with respect to Securities unless
authorized by a Direct Participant in accordanceh DTC's MMI Procedures. Under its usual procedures, DTC
mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede &
Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record
date identified in a listing attached to the Omnibus Proxy.
Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or Agent, on
payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities
held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such
Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect
from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC, is the responsibility of the City or Agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
3
A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
Tender /Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer
the Participant's interest in the Securities, on DTC's records, to Tender /Remarketing Agent. The requirement for
physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied
when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a
book -entry credit of tendered Securities to Tender/Remarketing Agent's DTC account.
DTC may discontinue providing its services as depository with respect to the Securities at any time by giving
reasonable notice to the City or Agent. Under such circumstances, in the event that a successor depository is not
obtained, Security certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book - entry -only transfers through DTC (or a successor
securities depository). In that event, Security certificates will be printed a elivered to DTC.
The information in this section concerning DTC and DTC's book -e tern has been obtained from sources that
the City believes to be reliable, but the City takes no responsibility accuracy thereof.
FUTURE FINANCING
The City does not anticipate any additional borrowing
Statement.
LITIGATION
within 90 days o date of this Preliminary Official
The City is a defendant in an action brought in the Iowa District Court for Dubuque County (J. Thomas Zaber v. City
of Dubuque), alleging that the gas, electric and cable television franc fees imposed by the City are illegal because
they constitute unauthorized taxes. This case has been certified as a 'ails ;;;;:action with three subclasses defined as
follows:
(a) All persons or entities who paid a cable television franchise fee imposed by the
City of Dubuque any time after September 5, 2001;
(b) All persons or entities who paid a gas utility franchise fee imposed by the City of
Dubuque any time after September 5, 2001; and
(c) All persons or entities who paid an electric utility franchise fee imposed by the
City of Dubuque any time ;.; rr September 5, 2001.
Plaintiffs seek a refund of all such franchise f'paid since September 5, 2001 through the date of judgment, pre-
judgment interest from the time of the alleged wrongful collection of said franchise fees, post judgment interest as
allowed by law and attorney fees as allowed by law. The claim generally is based on a 2006 decision by the Iowa
Supreme Court (Kragnes v. City of Des Moines, 714 N.W.2d 632 (Iowa 2006)). In that case, the Iowa Supreme Court
concluded that gas and electric franchise fees not reasonably related to the reasonable costs of inspecting, licensing,
supervising, or otherwise regulating the activity that is being franchised constitute a tax which has been assessed in
violation of Iowa Code Section 364.3(4). A number of other Iowa cities with similar gas, electric and/or cable
television franchise fee ordinances in effect are facing similar claims.
The Iowa General Assembly in 2007 adopted legislation which authorized a cable franchise fee not to exceed five per
cent (5 %) of gross revenue without regard to a city's costs of inspecting, licensing, supervising, or otherwise
regulating the utility. The General Assembly also legalized past cable franchise fees that had been collected by cities.
Plaintiffs filed an interlocutory appeal following the District Court's dismissal of their cable franchise fee claims on
the ground that Iowa Code Section 477A.7(5)(Supp. 2007) retroactively authorized the cable franchise fees, rejecting
the plaintiffs' contention that Section 477A.7(5) violated their due process rights. On June 4, 2010, the Iowa Supreme
Court affirmed the District Court's ruling Thus, the Iowa Supreme Court affirmed the District Court's summary
judgment for the City on the plaintiffs' claim for a refund of fees paid on cable television services. The cable
television franchise fee issues have now been resolved in the city's favor.
4
On May 26, 2009 the Governor signed Senate File 478 authorizing (prospectively) gas and electric franchise fees that
do not exceed five percent of a franchisee's gross revenues, without regard to the city's cost of inspecting, supervising,
and otherwise regulating the franchise. The City of Dubuque has ordinances in effect that impose gas and electric
franchise fees on gross sales of natural gas and electricity within the City. That part of the Zaber lawsuit relating to
past gas and electric fees remains pending but has been continued pending the outcome of further proceedings in the
Kragnes case which is on appeal in the Iowa Supreme Court.
The City believes it has substantial defenses to the action and intends to contest the matter vigorously. There can be
no assurance, however, that a future ruling by the Iowa Supreme Court in the litigation will not require the City and
other cities with similar ordinances may be required to reimburse part of previously collected franchise fees. City
staff' would recommend use of current franchise fee revenue as a source for such refunds.
The City is not aware of any other threatened or pending litigation affec the validity of the Bonds or the City's
ability to meet its financial obligations.
DEBT PAYMENT HISTORY
The City knows of no instance in which it has defaulted in then ent of p ;cipal or interest on its debt.
LEGALITY
The Bonds are subject to approval as to certain matters by Ahlers & Cooney, P.C.
Counsel. Bond Counsel has not participated in the preparation of this Preliminary Office
upon its accuracy, completeness or sufficiency. Bond Counsel has not examined, nor atte
es Moines, Iowa as Bond
tement and will not pass
ed to examine or verify,
any of the financial or statistical statements or data contained in this Preliminary Official Statement, and will express no
opinion with respect thereto. The forms of Legal Opinions as set out in APPENDIX A to this Preliminary Official
Statement will be delivered at closing.
TAXABILITY OF INTEREST
In the opinion of Bond Counsel, the interest to be paid
recipient for purposes of United States and the State o
franchise and bank excise taxes measured by net income.
Series 2012C Bonds is includable in the income of the
E wa income taxation and is subject to Iowa corporate
TAX EXEMPTION AND RELATED CONSIDERATIONS
Federal tax law contains a number of requirements and restrictions that apply to the Series 2012D Bonds. These include
investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper
use of bond proceeds and facilities financed with bond proceeds, and certain other matters. The City has covenanted to
comply with all requirements that must be satisfied in order for the interest on the Series 2012D Bonds to be excludable
from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause
interest on the Series 2012D Bonds to become includable in gross income for federal income tax purposes retroactively
to the date of issuance of the Series 2012D Bonds.
Subject to the City's compliance with the above - referenced covenants, under present law, in the opinion of Bond
Counsel: (a) interest on the Series 2012D Bonds is excludable from gross income of the owners thereof for federal
income tax purposes; and (b) interest on the Series 2012D Bonds is not an item of tax preference for purposes of
computing the federal alternative minimum tax imposed on individuals and corporations. Interest on the Series
2012D Bonds WILL be taken into account in determining adjusted current earnings for the purpose of computing the
alternative minimum tax imposed on corporations.
Bond Counsel is further of the opinion that, under existing laws of the State of Iowa and the current rules of the Iowa
Department of Revenue and Finance, the interest on the Series 2012D Bonds will not be subject to the taxes imposed
by Division II, "Personal Net Income Tax" and Division III, "Business Tax on Corporations" of Chapter 422 of the
Iowa Code, but the interest thereon will be subject to the franchise tax imposed by Division V, "Financial Institutions"
of Chapter 422 of the Iowa Code. Interest on the Series 2012D Bonds will be required to be included in "adjusted
5
current earnings" to be used in computing "state alternative minimum taxable income" of corporations and financial
institutions of purposes of Sections 422.23 and 422.60 of the Iowa Code, as amended.
Ownership of the Series 2012D Bonds may result in other state and local tax consequences to certain taxpayers. Bond
Counsel expresses no opinion regarding any such collateral consequences arising with respect to 2012D Bonds.
Prospective purchasers of the Series 2012D Bonds should consult their tax advisors regarding the applicability of any
such state and local taxes.
Prospective purchasers of the Series 2012D Bonds should be aware that ownership of the Series 2012D Bonds may
result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations
subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual
recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or
continued) indebtedness to purchase or carry tax - exempt obligations. Bo Counsel will not express any opinion as
to such collateral tax consequences. Prospective purchasers of the 012D Bonds should consult their tax
advisors as to collateral federal income tax consequences.
Not Qualified Tax - Exempt Obligations: The City will NOT ' Wte eries 2012D Bonds as "qualified tax -
exempt obligations" within the meaning of Section 265(b)(3),gl ode.
Tax Accounting Treatment of Discount and Premium on Certain Bonds: The public offering price of certain
Series 2012D Bonds (the "Discount Bonds ") may be less than the amount payab . such bonds at maturity. An
amount equal to the difference between the initial public offering prices of Dis Bonds (assuming that a
substantial amount of the Discount Bonds of that maturity are`.ld to tlublic at such p nd the amount payable
at maturity constitutes original issue discount to the initial purchaser-0f such Discount s. A portion of such
original issue discount allocable to the holding period of such Discount Bonds by the initial purchaser will, upon the
disposition of such Discount Bonds (including by reason of their payment at maturity), be treated as interest
excludable from gross income, rather than as taxable gain, for federal ineme tax purposes, on the same terms and
conditions as those for other interest on the Series 2012D Bonds described above under "TAX EXEMPTION AND
RELATED CONSIDERATIONS ". Such interest is considered to be accrued actuarially in accordance with the
constant interest method over the life of the Discount Bonds, taking into account the semiannual compounding of
accrued interest, at the yield to maturity on such Discount Bonds kenerally will be allocated to an original
purchaser in a different amount from the amount of the payment denominated as interest actually received by the
original purchaser dunnk the tax yep!;;,
However, such interest may be require
applicable to certain foreign corporation
corresponding cash payment. In addition,
income tax consequences to, among others,
insurance companies, S corporations with "subcha
be taken into account in determining the amount of the branch profits tax
ing business in the United States, even though there will not be a
ccrual of such interest may result in certain other collateral federal
ial institutions, life insurance companies, property and casualty
)3:C" earnings and profits, individual recipients of Social Security
or Railroad Retirement benefits, and taxpayers who may be deemed to have incurred or continued indebtedness to
purchase or carry, or who have paid or incurred certain expenses allocable to, tax - exempt obligations. Moreover, in
the event of the redemption, sale or other taxable disposition of the Discount Bonds by the initial owner prior to
maturity, the amount realized by such owner in excess of the basis of such Discount Bonds in the hands of such owner
(adjusted upward by the portion of the original issue discount allocable to the period for which such Discount Bonds
was held) is includable in gross income.
Owners of Discount Bonds should consult with their own tax advisors with respect to the determination of accrued
original issue discount on Discount Bonds for federal income tax purposes and with respect to the state and local tax
consequences of owning and disposing of Discount Bonds. It is possible that, under applicable provisions governing
determination of state and local income taxes, accrued interest on Discount Bonds may be deemed to be received in
the year of accrual even though there will not be a corresponding cash payment.
The initial public offering price of certain Series 2012D Bonds (the "Premium Bonds ") may be greater than the
amounts payable on such bonds at maturity. An amount equal to the difference between the initial public offering
price of the Premium Bonds (assuming that a substantial amount of the Premium Bonds of that maturity are sold to
the public at such price) and the amount payable at maturity constitutes a premium to the initial purchaser of such
6
Premium Bonds. The basis for federal income tax purposes of the Premium Bonds in the hands of such initial
purchaser must be reduced each year by the amortizable bond premium, although no federal income tax deduction is
allowed as a result of such reduction in basis for amortizable bond premium. Such reduction in basis will increase the
amount of any gain (or decrease the amount of any loss) to be recognized for federal income tax purposes upon a sale
or other taxable disposition of the Premium Bonds. The amount of premium which is amortizable each year by an
initial purchaser is determined by using such purchaser's yield to maturity.
Purchasers of the Premium Bonds should consult with their own tax advisors with respect to the determination of
amortizable bond premium on Premium Bonds for federal income tax purposes and with respect to the state and local
tax consequences of owning and disposing of Premium Bonds.
RELATED TAX MATTERS
The Internal Revenue Service (the "Service ") has an ongoing pr of auditing tax - exempt obligations to
determine whether, in the view of the Service, interest on such t< pt obligations is includable in the gross
income of the owners thereof for federal income tax purposes. I + 'redicted whether or not the Service will
commence an audit of the Bonds. If an audit is commenced un' = urren edures the Service may treat the City
as a taxpayer and the bondholders may have no right to partigbAte in such pr. ® e. The commencement of an audit
could adversely affect the market value and liquidity oth %Bonds until the is concluded, regardless of the
ultimate outcome.
There are or may be pending in the Congress of the UniteE tates, legilative propose cluding some that carry
retroactive effective dates, that, if enacted, could alter or amethe federal tax matters r d to in this section or
affect the market value of the Bonds. It cannot be predicted whither:` or in what form any uch proposal might be
enacted or whether, if enacted, it would apply to Bonds issued prior to enactment. Prospective purchasers of the
Bonds should consult their own tax advisors regarding any str_proposed tax legislation. Bond Counsel
expresses no opinion regarding any pending or proposed federal or state taxiegislation.
Opinions: Bond Counsel's opinion is not a guarantee of a result, or of the transaction on which the opinion is
rendered, or of the future performance of parties to the transaction, but represents its legal judgment based upon its
review of existing statutes, regulations, published rulings and court decisions and the representations and covenants of
the City described in this section. 1';o ruling has been sought from the Service with respect to the matters addressed in
the opinion of Bond Counsel and Bond Counsel's opinion is not binding on the Service. Bond Counsel assumes no
obligation to update its opinion after the issue date to reflect any further action, fact or circumstance, or change in law
or interpretation, ni otherwise
CHANGES Ili EEERAL AND STATE T
From time to time, there are Presidential proposals, proposals of various federal committees, and legislative proposals
in the Congress and in the states that, if enacted, could alter or amend the federal and state tax matters referred to
herein or adversely affect the marketability or market value of the Bonds or otherwise prevent holders of the Bonds
from realizing the full benefit of the tax exemption of interest on the Bonds. Further, such proposals may impact the
marketability or market value of the Bonds simply by being proposed. One such proposal is the American Jobs Act of
2011 (S.1549) (the "Jobs Bill ") which was introduced in the Senate on September 13, 2011 at the request of the
President. If enacted in its current form, the Jobs Bill could adversely impact the marketability and market value of
the Bonds and prevent certain bondholders (depending on the financial and tax circumstances of the particular
bondholder) from realizing the full benefit of the tax exemption of interest on the Bonds. It cannot be predicted
whether or in what form any such proposal might be enacted or whether if enacted it would apply to bonds issued
prior to enactment. In addition, regulatory actions are from time to time announced or proposed and litigation is
threatened or commenced which, if implemented or concluded in a particular manner, could adversely affect the
market value, marketability or tax status of the Bonds. It cannot be predicted whether any such regulatory action will
be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds would be
impacted thereby.
7
Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed legislation, regulatory
initiatives or litigation. The opinions expressed by Bond Counsel are based upon existing legislation and regulations
as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Bonds, and
Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any proposed or pending
legislation, regulatory initiatives or litigation.
RATING
The City has requested a rating on the Bonds from Moody's Investors Service, Inc. ( "Moody's "). Currently, Moody's
rates the City's outstanding uninsured general obligation long -term debt 'Aal'. Such ratings reflect only the view of
the rating agencies and any explanation of the significance of such rating may only be obtained from the respective
rating agency. There is no assurance that such ratings will continue for a period of time or that they will not be
revised or withdrawn. Any revision or withdrawal of the ratings may ha n ffect on the market price of the Bonds.
FINANCIAL ADVISOR
The City has retained Public Financial Management, Inc., Des oines, as financial advisor (the "Financial
Advisor ") in connection with the preparation of the issuance of the Bonds. rreparing the Preliminary Official
Statement, the Financial Advisor has relied on government officials, and L sources to provide accurate
information for disclosure purposes. The Financial Advisor is not obligated to un ' and has not undertaken, an
independent verification of the accuracy, completeness, or fairness of the informatio tained in the Preliminary
Official Statement. Public Financial Management, Inc. is an independent advisory fir g is not engaged in the
business of underwriting, trading or distributing municipal securities or other public securitie
CONTINUING DISCLOSURE
In order to permit bidders for the Bonds and other Participating Underwriters in the primary offering of the Bonds to
comply with paragraph (b)(5) of Rule 15c2 -12 promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, the City will covenant and agree, for the benefit of the registered
holders or beneficial owners from time to time of the outstanding Bonds, in the resolutions authorizing issuance of the
Bonds and the Continuing Disclosure Certificates, to provide annual reports of specified information and notice of the
occurrence of certain material events as hereinafter described (the "Disclosure Covenants "). The information to be
provided on an annual basis, the events as to which no ..ce is to be given, and a summary of other provisions of the
Disclosure Covenants, including termination, amen''': ; d. remedies, are set forth as APPENDIX C to this
Preliminary Official Statement. The City has complied in ail material respects with its previous continuing disclosure
undertakings.
Breach of the Disclosure Covenants will not con Mute a default or an "Event of Default" under the Bonds or the
resolutions for the Bonds. A broker or dealer is to consider a known breach of the Disclosure Covenants, however,
before recommending the purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the
City to observe the Disclosure Covenants may adversely affect the transferability and liquidity of the Bonds and their
market price.
CERTIFICATION
The City has authorized the distribution of this Preliminary Official Statement for use in connection with the initial
sale of the Bonds. I have reviewed the information contained within the Preliminary Official Statement prepared on
behalf of the City by Public Financial Management, Inc., Des Moines, Iowa, and said Preliminary Official Statement
does not contain any material misstatements of fact nor omission of any material fact regarding the issuance of
$6,965,000* Taxable General Obligation Bonds, Series 2012C and $7,595,000* General Obligation Bonds, Series
2012D.
*Preliminary, subject to change
CITY OF DUBUQUE, IOWA
/s/ Ken TeKippe, Finance Director
8
CITY PROPERTY VALUES
IOWA PROPERTY VALUATIONS
In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs the county
auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The 2011
final Actual Values were adjusted by the Dubuque County Auditor. The reduced values, determined after the
application of rollback percentages, are the Taxable Values subject to tax levy. For assessment year 2011, the
Taxable Value rollback rate was 50.7518% of Actual Value for residential property; 57.5411% of Actual Value for
agricultural property; and 100% of Actual Value for commercial, industrial, railroad and utility property.
The Legislature's intent has been to limit the growth of statewide to ® valuations for the specific classes of
property to 4% annually. Political subdivisions whose taxable values a ° reduced or are unusually low in growth
are allowed to appeal the valuations to the State Appeal Board, in or ontinue to fund present services.
1/1/2011 VALUATIONS (Taxes payable July 1, 2012 to June ° °1 '`013
Residential
Commercial
Industrial
Railroads
Other
Utilities w/o Gas & Electric
Gross valuation
Less military exemption
Net valuation
TIF increment (used >to:: compute del''
service levies and conSfitufienal c debt Iimit
Taxed separately
Ag. Land & Buildings
Gas & Electric Utilities
10ctual Value
Taxable Value
ith Rollback)
198,342
4,906
70, ,605
2,368,221
705,130
10,419,285
$230638,673
791;4.90c
70,79205—
2,368;221
705,13;;;
1(1;4.19,285
$3,182,708,820
(6,185,680)
$2,045,268,489
(6,184,133) 1)
$3,176,523,140 `E "` $2,039,084,356
9 , ;1,318 1) 2)
$4,753,159 3)
$152,482,060
1) TIF Increment valuation is reduced by $1,852 of military exemption
2) Excludes $112,829 of TIF Increment Ag Land & Buildings valuation
3) Ag Land & Buildings valuation is reduced by $1,852 of military exemption
2011 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY
Residential
Gas & Electric Utilities
Commercial, Industrial, Utility and Other
Railroads
Total Gross Taxable Valuation 2)
Gross Taxable Valuation
$1,169,198,342
69,676,447
873,701,926
2,368,221
2) Excludes Taxable TIF Increment and Ag Land & Buildings
$2,114,944,936
9
$299,591,318 1) 2)
$2,686,324 3)
$69,676,447
Percent Total
55.28%
3.30%
41.31%
0.11%
100.00%
TREND OF VALUATIONS
Assessment
Year
2007
2008
2009
2010
2011 1)
Payable
Fiscal Year
2008 -09
2009 -10
2010 -11
2011 -12
2012 -13
100% Actual Valuation
$3,272,443,439
3,344,904,153
3,486,704,735
3,553,386,961
3,633,462, 506
Net Taxable Valuation
(With Rollback)
$1,878,770,648
1,935,666,751
1,980,445,335
2,034,470,780
2,108,760, 803
1) The City's 1/1/2011 valuations are now available from the State of Iowa and become effective July 1, 2012
The 100% Actual Valuations, before rollback, and after the reduction of
Buildings, TIF Increment and Gas & Electric Utilities. The Taxabl
reduction of military exemption include Gas & Electric Utilities an
TIF Increment. Iowa cities certify operating levies against Taxa
debt service levies are certified against Taxable Valuation includ
LARGER TAXPAYERS
Taxpayer
Alliant Interstate Energy Power Co.
Peninsula Gaming Company LLC
Black Hills Energy Corp.
Kennedy Mall Inc
Progressive Processing LLC
Medical Associates Realty LP
Nordstrom Inc
The McGraw Hill Companie
Otto A LLC
Walter Development LLC
LEGISLATION
..............
...............
Taxable
TIF Increment
$148,458,171
174,885,331
249,501,324
279,611,679
299,591,318
Italy exemption, include Ag. Land, Ag
tions, with the rollback and after the
de Ag. Land, Ag. Buildings and Taxable
on excluding Taxable TIF Increment and
e TIF Increment.
Type of Propa$usiness ;—,.
Utility
Commercial
t3'
6Tim rctal
e
Indus
mmer
merc
Ind
Comfit
From time to time, legislative proposals a
pending
igress and the Iowa General Assembly that would, if
enacted, alter or amend one or more of the prt;';'; . tax matters described herein. It cannot be predicted whether or in
what forms any of such proposals, either pendi' '` r that may be introduced, may be enacted, and there can be no
assurance that such proposals will not apply to vale 'film, assessment or levy procedures for taxes levied by the City or
have an adverse impact on the future tax collections of the City. Purchasers of the Bonds should consult their tax
advisors regarding any pending or proposed federal or state tax legislation. The opinion expressed by Bond Counsel
is based upon existing legislation as of the date of issuance and delivery of the Bonds and Bond Counsel has
expressed no opinion as of any date subsequent thereto or with respect to any pending federal or state tax legislation.
Iowa Code section 76.2 provides that when an Iowa political subdivision issues general obligation debt: "The
governing authority of these political subdivisions before issuing bonds shall, by resolution, provide for the
assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and
principal of the bonds within a period named not exceeding the applicable period of time specified in section 76.1. A
certified copy of this resolution shall be filed with the county auditor or the auditors of the counties in which the
political subdivision is located; and the filing shall make it a duty of the auditors to enter annually this levy for
collection from the taxable property within the boundaries of the political subdivision until funds are realized to pay
the bonds in full." Iowa Code section 76.1 provides that the annual levy shall be sufficient to pay the interest and
approximately such portion of the principal of the bonds as will retire them in a period not exceeding twenty years
from the date of issue, except for certain bonds issued for disaster purposes and bonds issued to refund or refinance
bonds issued for such disaster purposes which may mature and be retired in a period not exceeding thirty years from
date of issue.
a
1
11
Taxableil,ation
$99,015
56,784,2
47,166,449
27,206,390
21,397,890
19, 559,060
17, 221, 570
14,729,210
14,100,000
13,781,290
10
CITY INDEBTEDNESS
DEBT LIMIT
Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county,
municipality or other political subdivision to no more than 5% of the Actual Value of all taxable property within the
corporate limits, as taken from the last state and county tax list The debt limit for the City, based on its 2010 actual
valuation currently applicable to the fiscal year 2011 -12, is as follows
2010 Actual Valuation of Property $3,559,778,213
Less Military Exemption (6,391,252)
Net Actual Valuation of Property $3,553,386,961
Legal Debt Limit of 5% 0 05
Legal Debt Limit $177,669,348
G 0 Debt Subject to the Debt Limit (88,420,000)*
Urban Renewal Revenue Debt Subject to the De. _ a. (24,250,334)
TIF Rebate Agreements Subject to the Debt L (25,103,270)
Other Debt Subject to the Debt Limit (5,211,271)1)
Net Debt Limit $34,684,473*
Less
Less
Less
Less
1) Includes loan agreement with Iowa DOT, a Bncktown Parking Lot Loan, Iowa Finance Authority loan, ge
DIRECT DEBT
General Obligation Debt (Includes the Bonds)
Date Original
of Issue Amount
12/02C $3,105,000
10/03 2,110,000
04/05A 1,750,000
04/05B 4,270,000
04 /05C 2,995,000
05 /06A 2,900,000
05/06B 910,000
05/06C 3,525,000
11 /07A 1,055,000
11 /07B 2,965,000
10/08A 3,885,000
10 /08B 3,290,000
10 /08C 2,465,000
10 /09A 2,935,000
10 /09B 11,175, 000
10/09C 8,885,000
8/10A 4,470,000
8 /10B 2,675,000
8 /10C 2,825,000
9/11A 6,330,000
9 /11B 1,590,000
3 /12A 4,380,000
3/12B 7,495,000
6/12C 6,965,000*
6/12D 7,595,000*
Purpose
Corporate Purpose & Refunding 1)
Corporate Purpose 3)
Corporate Purpose 3)
DICW 3rd Addition Urban Renewal 4)
DICW 3rd Addition Urban Renewal 4)
Corporate Purpose 3)
General Obligation Urban Renewal 5)
Refunding 4)5)6) !(;;;;;`:
General Obligation Sew6 )
Refunding a) 5) 6)
General Obligation Stormwatei4
General Obligation Urban Renewal 4)
General Obligation Urban Renewal (Taxable) 4)
Corporate Purpose 3) 8) 9)10)
Corporate Purpose a) 5)
Refunding z) a)
Corporate Purpose and Refunding 3) a) 7) s) 9) i i)
General Obligation Urban Renewal (Taxable) 4)
General Obligation Urban Renewal 4)
Corporate Purpose i) 3) s) 7) s) ii)
Corporate Purpose (Taxable) 4)8)5)
General Obligation Urban Renewal 4)
Corporate Purpose 3) a)
Taxable G 0 Urban Renewal a) 6) 8)
Corporate Purpose i) z) 3) a) s) 7) 8)
Total General Obligation Debt Subject to the Debt Limit
1) Paid by water revenues
2) Paid by gaming revenues
3) Paid by stormwater revenues
4) Paid by tax increment revenues
*Preliminary, subject to change
5) Paid by parking revenues
6) Paid by airport revenues /passenger facility charge
7) Paid by sewer revenues
8) Paid by local option sales tax
11
d leases and water line loan
Final
Maturity
6/17
6/23
6/24
6/21
6/16
6/25
6/21
6/20
6/17
6/17
6/28
6/23
6/18
6/29
6/29
6/21
6/30
6/30
6/30
6/31
6/26
6/31
6/31
6/32
6/32
Principal
Outstanding
As of 06/04/12
$950,000
1,325,000
1,250,000
3,465,000
1,305,000
2,235,000
615,000
3,015,000
625,000
1,960,000
3,350,000
2,610,000
2,025,000
2,690,000
10,270,000
6,870,000
4,210,000
2,585,000
2,710,000
6,330,000
1,590,000
4,380,000
7,495,000
6,965,000
7,595,000
$88,420,000
9) Paid by road use tax
10) Paid by property tax
11) Paid by refuse fees
*
*
*
Urban Renewal Revenue Debt
Date Original
of Issue Amount Purpose
2 /00 $3,168,538
12/03 140,000
02/04 500,000
06/04 182,000
11 /06 806,088
10/07 23,025,000
8/09 690,529
10/10 337,000
Eagle Window & Door
Vessel Systems
Adams Co.
Lower Main Development LLC
Theisen Supply, Inc.
Port of Dubuque Parking Ramp
40 Main, LLC
44 Main, LLC
Total Urban Renewal Revenue Debt Subject to Debt Limit
1) Excludes June 30, 2012 payments
12
Final
Maturity
6/12
6/15
6/15
6/16
6/18
6/37
6/21
6/27
Principal
Outstanding
As of 06/04/12
$0 1)
53,953 1)
136,364
89,748 1)
558,450 1)
22,435,000
639,819 1)
337.000
$24,250,334
Annual Fiscal Year General Obligation Debt Service Payments (Includes the Bonds)
Current
Outstanding Debt
Series 2012C Bonds
Fiscal Principal Principal
Year Principal and Interest Principal* and Interest*
2012 -13 $4,235,000
2013 -14 5,030,000
2014 -15 5,185,000
2015 -16 5,350,000
2016 -17 5,550,000
2017 -18 5,405,000
2018 -19 5,150,000
2019 -20 5,365,000
2020 -21 4,810,000
2021 -22 3,275,000
2022 -23 3,390,000
2023 -24 3,070,000
2024 -25 3,050,000
2025 -26 2,950,000
2026 -27 2,920,000
2027 -28 3,025,000
2028 -29 2,865,000
2029 -30 1,945,000
2030-31 1,290,000 >. n'::::.. 46
2031 -32 1485,0
Total $73,860,000 $6, 9000*
$7,065,386
7,664,033
7,652,226
7,638,459
7,641,925
7,291,465
6,832,025
6,855,828
6,096,148
4,378,241
4,369,245
3,919,200
3,781,826
3,562, 503
3,413,62
3,395,334
3,106,141
<3'::::
$0
265,000
300,000
310,000
310,000
315,000
325,000
330,000
345,000
355,000
350,000
360,000
0
$200,321
481,563
513,56
519
51
513,
516,7
514,551
21,499
Series 2012D Bonds
Principal
and Interest*
$163,885
702,173
707,553
701,829
704,981
6,,969
3. 1 5 A:::<90
0 510
000 502,874
00 509,061
479,272
489,097
477,631
0 485,619
421"1:f 482,581
313,931
310,107
310,900
316,184
310,770
525;0:::...:
535,00
545,000
565,000
3
390,
0,00
50
504,
503,7
,801
0,
x_ Preliminary, subject to change
13
265,000
270,000
280,000
295,000
300.000
$7,595,000*
Total
Outstanding Debt
Principal
Principal* and Interest*
$4,235,000 $7,429,592
5,820,000 8,847,769
6,020,000 8,873,348
6,195,000 8,859,896
6,405,000 8,860,996
6,285,000 8,522,162
5,835,000 7,851,381
6,070,000 7,881,165
5,530,000 7,120,520
4,020,000 5,408,555
4,110,000 5,353,658
3,820,000 4,912,168
3,815,000 4,766,124
3,745,000 4,551,626
3,740,000 4,400,812
3,705,000 4,214,111
3,565,000 3,920,033
2,670,000 2,874,461
2,050,000 2,154,046
785,000 815,801
$88,420,000*
Annual Fiscal Year Urban Renewal Revenue Debt Service Payments
Fiscal
Year
2012 -13
2013 -14
2014 -15
2015 -16
2016 -17
2017 -18
2018 -19
2019 -20
2020 -21
2021 -22
2022 -23
2023 -24
2024 -25
2025 -26
2026 -27
2027 -28
2028 -29
2029 -30
2030 -31
2031 -32
2032 -33
2033 -34
2034-35
2035 -36
2036 -37
Total
Outstanding
Principal
$555,835
594,576
634,508
613,951
632,542
681,125
610,301
656,878
703,959
659,504
706,017
757,606
814,329
876,140
943,063
975,000
1,050,000
1,130, 000
1,215,000
1,305,000
1,400,000
1,505,00
1,620,0
1,740,00
1.870.000
Outstanding
Principal &
Interest
$2,360,930
2,359,330
2,355,776
2,289,259
2,261,993
2,263,080
2,143, 368
2,145,118
2,143, 868
2,049, 209
2,046, 584
2,045, 584
2,045,834
2,046,959
2,048, 584
2,010,70
2,012
2,013,
2,014,12
2,013,000
010,125
0,125
, i'12.250
2,010,750
2,010,250
OTHER DEBT
The City has revenue debt payable solely from the net water revenues of the City's water system:
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 06/04/12
10/07 $915,000 Water Improvements (SRF) 6/28 $771,000
10 /08D 1,195,000 Water Improvements 6/23 985,000
2/10 -2 6,394,000 Water Improvements (SRF -2) 6/31 6,116,000
09 /10D 5,700,000 Water Improvements 6/30 5,515,000
$13,387,000
Total
The City has revenue debt payable solely from the net sewery
Date Original
of Issue Amount
Purpose
ues
of t14:1 ::.ty s sewer system:
Principal
Final Outstanding
Maturity" As of 06 /04/12
6/30 $621,371 1)
6/39 it '' 43,907,878 2)
1/10 -2 $912,000 Sewer Improvements (SRF -2
8/10 64,885,000 WPC Plant ction (SRF)
1) Prehnunary, subject to change based final proje
Prehminary Official Statement
2) Preliminary, subject to chan
Prehminary Official Statem
has $2
oject co
$44,529,249
available to draw as of the date of this
77,1 available to draw as of the date of this
The City has revenue debt pay a r L the net stogy ater revenues of the City's storm water system:
Date ': h!°' lna1
;�g
of Issue "" >:::.. Amount P
1 /09A 037,000 Stour ater
1/10 -2 Q00 Storm';er Imp ents (SRF -2)
10 /10 7,860V„,, Storm IMATOT Improvements (SRF)
I
ements (SRF)
Principal
Final Outstanding
Mari As of 06/04/12
6/28 $1,555,000
6/30 741,000
6/41 5,936,168 1)
$8,232,168 2)
') Prehminary, subject to change `5a1 project costs The City has $1,755,832 available to draw as of the date of this
Preliminary Official Statement
2) Pnncipal outstanding does not include "fin intenm SRF planning and design loan in the amount of $617,821 which has been fully
drawn as of the date of this Preliminary Official Statement
15
INDIRECT GENERAL OBLIGATION DEBT
Taxing District
Dubuque County
Dubuque Community
School District
Northeast Iowa
Community College
1/1/2011
Total Taxable
Valuation 1)
$4,209,535,799
3,295,962,208
Portion of
Taxable Valuation Percent
Within the City Applicable
2,411,038,445 57.28%
2,412,620,253 2)
G.O. Debt 3)
$0
73.20% 0
9,846,541,918 2,411,038,445 24.49% 59,950,000
City's total share of overlapping debt
1) Taxable Valuation is less military exemption and includes Ag
2) Includes City- exempt Phase In and Phase In Ag valuations in the amo
Buildings valuations in the amount of $57,515
3) Includes general obligation bonds, PPEL notes, certificates of partici
City's
Proportionate
Share
14,681,755
$14,681,755
Land & Build Taxable TIF Increment and all Utilities
$1,468,979 and TIF Increment Ag Land &
DEBT RATIOS
City Total G.O. Debt
City Total TIF Revenue Debt
City's Share of Overlapping Debt
G.O. Debt
$8 0
24,
14,6
and vv fobs training certificates
Debt/Actual
arket V
3
0.4
City's Net Overall Debt $38,932,
1) Based on the City's 1/1/201 s n include
2) Based on the City's 2010
50%
* Preliminary, subject to change
LEVIES AND:' d� >' >:: >;..:CTI
Fiscal
Year
2007 -08
2008 -09
2009 -10
2010 -11
2011 -12
Lev
,211,000
6,759
19,8
Collecte s curing
ollection Year
ELIA/Taxable
'4ue
L$2,411, 4451
3.67% $1,534.08
1.00% 420.74
0.61% 254.73
5.28% $2,209.55
ble TIF Increment and all Utilities
Debt /57,637
Population
18,127,137
18,667,933
19,088,379
19,755,236
In Process of Collection
Percent
Collected
99.54%
99.63%
99.96%
99.38%
Taxes in Iowa are delinquent each October 1 and April 1 and a late payment penalty of 1% per month of
delinquency is enforced as of those dates. If delinquent taxes are not paid, the property may be offered at the
regular tax sale on the third Monday of June following the delinquency date. Purchasers at the tax sale must pay an
amount equal to the taxes, special assessments, interest and penalties due on the property and funds so received are
applied to taxes. A property owner may redeem from the regular tax sale but, failing redemption within three years,
the tax sale purchaser is entitled to a deed, which in general conveys the title free and clear of all liens except future
tax installments.
16
TAX RATES
Dubuque County
City of Dubuque
Dubuque Community School District
Northeast Iowa Community College
City Assessor
County Ag. Extension
Sunnycrest Manor County Hospital
State of Iowa
Total Tax Rate
LEVY LIMITS
6.42691 6.40844
10.31690 9.96904
16.40925 16.88112
0.61270 0.55714
0.32694 0.32436
0.03841 0.03572
0.26275 0.26744
0.00350 0.00350
34.39736 34.4467
A city's general fund tax levy is limited to $8.10 per $
per $1,000 levy for an emergency fund which can be
Division I). Cities may exceed the $8.10 limitation upon a
limited special purpose levies which may b ertified outs].
FY 2009 -10
$/$1,000
6.40435
9.85777
16.87918
0.99471
0.28030
0.03298
0.26342
.00300
34.71571
FY 2010 -11 FY 2011 -12
$ /$1,000 $/$1,000
6.50193
10.02741
16.88349
1.03532
0.25772
0.03219
0.26409
0.00340
35.00555
6.49167
10.45111
16.87685
1.07379
0.33842
0.07564
0.26040
0.00320
35.57108
of taxable value, with provision for an additional $0.27
r general fund purposes (Code of Iowa, Chapter 384,
zatio $ a special levy election. Further, there are
ve described levy limits (Code of Iowa,
e $8.10 limitation is $8.10 for FY 2011 -12.
se, for the operation and maintenance of
eneral fund limit as authorized by law.
of limited.
Section 384.12). The amount of the City g
The City does levy costs for tort liability
publicly owned transit, and for employee bene
Currently, the City does not levy an emergency 1
nd levy s
'nsur
to the
e levies
FUNDS ON HAND (CA
Agency
i ;,. t Um
Debt Se..
Enterprise'` " " > >:.
General
eemal Service
Trent
Sp:::;:::
FY 2007 -08 FY 2008 -09
$/$1,000 $ /$1,000
Total C
ENTS
ARC ` 2012)
„ d dements
17
$ 1,401,222
24,781,628
9,849,887
1,581,331
17,739,665
9,116,415
459,362
60,295
9,662,238
$74,652,043
THE CITY
CITY GOVERNMENT
The City has been governed by a Council- Manager -Ward 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 Council members hold four year staggered terms. The City Clerk, City
Manager and City Attorney are appointed by the City Council.
EMPLOYEES AND PENSIONS
The City has 542 full and 148 permanent part -time employees and 223 seasonal employees, including a police force
of 105 sworn personnel and a fire department of 81 fire fighters. Of the City's 913 employees, 551 are currently
enrolled in the Iowa Public Employees Retirement System (IPERS) pension plan administered by the State of Iowa.
The City is current in its obligation to IPERS, which has been as follows: $1,314,106 in FY 2008/09, $1,456,384 in
FY 2009/10 and $1,641,811 in FY 2010 /11.
In addition, the City contributes to the Municipal Fire
plan administered by a Board of Trustees. MFPRS
established by State statute to plan members and benefi
their earnable compensation and the City's contribution r
current in its obligation to MFPRSI, their c tions to MF
FY 2008/09, $1,966,345 in FY 2009/10 and 4 in FY 20
lice Retirement System of Iowa ( MFPRSI), a benefit
v ides retirement, disability and death benefits that are
. Plan s < bers are required to contribute 9.4% of
24 a a sf earnable compensation. The City is
e last three years has been: $2,077,554 in
OTHER POST EMPLOYMENT BENEFIT
In addition to providing pe ..,ion benefit , the Ci
purchase health insurance a >"group ost. He
expense, is included withi mCity's o 1 insuran
subsidized by the City and its went employees resul
liability. Based ont::results o :::;City's actuarial stud
was $581,536 /'I o oputtiFutions made were $149,1 esu
ance efits to its retirees. Retirees can
retirees, while at the individual's own
age. The ore, a portion of the coverage is being
n an Other Post Employment Benefit (the "OPEB ")
e City's annual OPEB cost for Fiscal Year 2010 -11
in a Net OPEB Obligation of $2,376,162.
ce
.................
UNION CRACTS
City employees arc" represented by thlowin airing units:
Bargaining Unit
Teamsters Local Union No 41::.
Teamsters Local Union No 421rators
Dubuque Professional Firefightersociation
Dubuque Police Protective Association
International Union of Operating Engineers
18
Contract Expiration Date
June 30, 2014
June 30, 2014
June 30, 2014
June 30, 2014
June 30, 2014
INSURANCE
The City's insurance coverage is as follows:
Type of Insurance Limits
General Liability
Automobile Liability
Public Officials
Police Professional Liability
Boiler & Machinery
Property Blanket
Employees Crime Policy
Airport Commission
Airport Liability
19
$12,000,000
$12,000,000
$12,000,000
$12,000,000
$25,000,000
$336,382,045
$1,000,000
$5,000,000
$20,000,000
GENERAL INFORMATION
LOCATION AND TRANSPORTATION
The City, with a 2010 Census population of 57,637, has a land area of 31.8 square miles. Annexation activity in
recent years has been voluntary with over 760 acres annexed in the past 5 years. The City lies at the intersection of
Highways 61/151 and 20. 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. The Dubuque
Regional Airport is located 6.5 miles south of the City. The airline serving the City is American Eagle, providing
all jet service to Chicago. The City is also served by three railroads, the Burlington Northern, I &M Rail Link and
Chicago, Central and Pacific; and Greyhound provides bus service.
LARGER EMPLOYERS
A representative list of larger employers in the City is as follows:
Employer
John Deere Dubuque Works
Dubuque Community School District
Mercy Medical Center
IBM Corp.
Hy -Vee
The Finley Hospital
City of Dubuque
Eagle Window and Door
Medical Associates Clinic,
Prudential Retirement
Dubuque County
Flexsteel Industries, Inc.
McKesson
Holy Family, 010 ic'Schools
Dubuque Rte;,:: , `Association
Loras College' =;;;;;;;;;;;;,
World Dubuque'' >;;;;:.
Dubuque Bank & T
Cottingham & Butler;``
A.Y. McDonald Mfg. Co
University of Dubuque
Molo Oil Company
Rite -Hite Corporation
Diamond Jo Casino
Clarke College
Woodward Communications, Inc.
Dubuque Internal Medicine, PC
Manufacturi
Education
h Care Servic
Services
s
f Business
Hea
City
Manufa
ealth C
tirement
unty Gove
cturing
sing
es
tration
ent
ices
ducati
ertainmen
ion
Pri ervices
Banki
'';Insurance Services
:::::::Manufacturing
Education
Petroleum Distributor
Fabricated Metal Products
Entertainment
Education
Newspaper Printing
Healthcare
1)Includes fulltime and part-time employees
2) D B A Dubuque Greyhound Park & Casino
Source Greater Dubuque Development Corporation, phone interviews, and the City, January 2012
20
Approximate Number
of Employees
1,800
1,627
[1,324
1,300
1,181
920
913
750
743
550
450
450
425
400
3902)
385
370
365
360
345
327
300
300
300
294
268
260
1)
BUILDING PERMITS')
City officials report the following construction activity as of March 30, 2012.
reported on a fiscal year basis.
Fiscal Year
2007 -08
2008 -09
2009 -10
2010 -11
2011 -12
Single Family
62
39
80
88
156
Commercial/
Multi- Family Industrial
14
7
25
89
7
38
19
18
15
29
Building permits are
Total Permits
1,490
1,740
1,515
3,020
6,265
Total Valuation
$170,518,137
81,460,036
77,302,482
134,246,328
316,475,253
1) Totals include single family, multi - family, commercial /industrial, remodeling, roofing, siding, decks, additions and other
miscellaneous residential and commercial permits
U.S. CENSUS DATA
Population Trend
1980 U.S. Census
1990 U.S. Census
2000 U. S. Censu
2010 U. S. Census
62,374
57,546
86
Source U S Census Bureau website
UNEMPLOYMENT RA
Annual Avery
Source Iowa Workforce Dev
EDUCATION
20
009
X010
2011,
2U1 Jan. -
went Cente,bslte
'qi:1111111111111111ii;„::. ,411111111111111111W
ty of
ue
4. "o
6.2%
6.0%
5.4%
5.1%
Dubuque
County
4.2%
6.4%
6.2%
5.5%
5.8%
State of
Iowa
4.0%
6.2%
6.3%
5.9%
5.3%
Public education to the City is provided by the Dubuque Community School District, with a certified enrollment of
10,468 for the 2011 -12 school year. There are approximately 1,627 full and part-time employees of the district.
The Dubuque Community School District comprises two high schools, an alternative high school, three middle
schools and thirteen elementary schools.
21
EFFECTIVE BUYING INCOME
Effective Buying Income ( "EBI ") and Retails Sales for 2011 are reported as follows:
City of Dubuque
Dubuque County
State of Iowa
Source Clantas, Inc
Total
EBI
$1,056,870,000
1,772,607, 500
57,975,146,250
FINANCIAL SERVICES
Median
Household EBI
$34,027
37,611
38,156
Financial services for residents of the City are provided by
Trust Company, East Dubuque Savings Bank, Fidelity
Liberty Bank, FSB, State Central Bank and U.S. Bank
American Trust & Savings Bank, Dubuque Bank and
& Trust and Premier Bank report the following deposits as
Total Retail
Sales
$1,088,103,960
1,558,810,293
44,620,315,828
Retail Sales
Per Household
$45,974
41,952
36,634
is an T :':': Savings Bank, Dubuque Bank and
Trust, and ��C���,mier Bank; by branch offices of
s well as by sevef4:!eredit unions.
oinpany, :ast Dubuque Savings Bank, Fidelity Bank
st for each year:
Year
2007
2008
2009
2010
2011
American Trust &
Savings Bank
$655,032,000
708,594,000
711,573,000
660,263,00
716,702,00
Dubuq
Trust
$670,219,
749,192,0
864,067,000
809,181,000
93 8,000,000
cem
Eas
Savin
169,022,
683,00
que
k
Fidelity
Bank & Trust
$360,818,000 1)
247, 857,000
321,864,000
370,553,000
452,776,000
00
1) Fidelity Bank & Trust relocated is headquarters from the Ci
deposits are for a includinthe branch office;]; ated
Source FDIC:; hon Diredtbiteftbsite
,0
32,568,
Premier Bank
$166,891,000
186,858,000
213,076,000
196,664,000
200,907,000
Dyersville, Iowa to the City in 2008 December 31, 2007
the City
FINANCIAL °:: >: >x EMENTS
The City's Compre "';';a';t;ye Annual l cial Re rt for the fiscal year ended June 30, 2011 is reproduced in
APPENDIX B. The 401,, certified riltic accountant has not consented to distribution of the audited financial
statements and has not 11144.taken all" review of their presentation. Further information regarding financial
performance and copies of ` "`' "` „ ty/ „iir Comprehensive Annual Financial Reports may be obtained from the
City's Financial Advisor, Publi > ':;;; ; ;`> -al Management, Inc.
22
APPENDIX B
JUNE 30, 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX C
FORMS OF CONTINUING::®ISCLOSURE CERTIFICATES
OFFICIAL BID FORM
TO: City Council of
City of Dubuque, Iowa
RE: $6,965,000* Taxable General Obligation Bonds, Series 2012C (the "Series 2012C Bonds ").
Sale Date: June 4, 2012
11:00 AM Central Time
For all or none of the Series 2012C Bonds, in accordance with the NOTICE OF BOND SALE, we will pay you
$ (not less than $6,888,385) plus accrued interest to date of delivery for fully registered bonds
bearing interest rates and maturing in the stated years as follows:
% due 2014
% due 2015
% due 2016
% due 2017
% due 2018
% due 2019
% due 2020
% due 2021
% due 2022
% due 2023
* Preliminary, subject to change The City rese
of the Series 2012C Bonds Such change wi
maturities The purchase price will,be adjusted pr
....................
% due 2024
% due 2025
Ito
due 2026
% due 2027
due 2028
2029
% due .30
% due 2::::.
% due 2032
increase or decrease the aggregate principal amount
is of $5,000 and may be made in any of the
ect any change in issue size
In making this offer we accept all of the ter >.and con
Preliminary Official Statement dated May , 2012. In th
accordance with the NOTICE OF BOND SALE as printed in t
we reserve the right to withdraw our offer. All blank spaQes of t
omission.
OF BOND SALE published in the
of failur o deliver the Series 2012C Bonds in
eliminary Official Statement and made a part hereof,
fer are intentional and are not to be construed as an
Not as a part of our o er, the above quoted prices being controlling, but only as an aid for the verification of the offer, we
have made the follovvin computations:
NET INTEREST COST:
TRUE INTEREST COST:
Account Manager: _ By:
Account Members:
% (Dated date June 28, 2012)
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Dubuque, Iowa this 4th day of
June, 2012.
Attest: By:
Title: Title:
OFFICIAL BID FORM
TO: City Council of
City of Dubuque, Iowa
RE: $7,595,000* General Obligation Bonds, Series 2012D (the "Series 2012D Bonds ").
Sale Date: June 4, 2012
11:00 AM Central Time
For all or none of the Series 2012D Bonds, in accordance with the NOTICE OF BOND SALE, we will pay you
$ (not less than $7,511,455) plus accrued interest to date of delivery for fully registered bonds
bearing interest rates and maturing in the stated years as follows:
% due 2014
% due 2015
% due 2016
% due 2017
% due 2018
% due 2019
% due 2020
% due 2021
% due 2022
% due 2023
% due 2024
% due 2025
due 2026
% due 2027
due 2028
e A
% d x30
% due 21:::
due 2032
kc 2029
* Preliminary, subject to change The City reserves the ri ? • increase or decrease the aggregate principal amount
of the Series 2012D Bonds Such change will be in - is of $5,000 and may be made in any of the
maturities The purchase price will adjusted proportionate ect any change in issue size
In making this offer we accept all of the tei J.4' and conditions d. �e OF BOND SALE published in the
Preliminary Official Statement dated May 2012. In the eve '' of failures o deliver the Series 2012D Bonds in
accordance with the NOTICE OF BOND SALE as printed in the Preliminary Official Statement and made a part hereof,
we reserve the right to withdraw our offer. All blank spaces of this ''. fer are intentional and are not to be construed as an
omission.
Not as a part of our o er, the above quoted prices being controlling, but only as an aid for the verification of the offer, we
have made the following computations:
NET INTEREST COST: $
TRUE INTEREST COST: % (Dated date June 28, 2012)
Account Manager: _ By:
Account Members:
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Dubuque, Iowa this 4th day of
June, 2012.
Attest: By:
Title: Title: