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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: