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General Obligation Bonds Series 2016ABC Directing Advertisment Copyright 2014 City of Dubuque Action Items # 4. ITEM TITLE: General Obligation Bonds Series 2016ABC Directing Advertisement of Sale SUMMARY: City Manager recommending approval of the suggested proceedings for directing sale of the $2,830,000 General Obligation Settlement Bonds, Series 2016A; $11,505,000 General Obligation Refunding Bonds, Series 201613; $4,155,000 General Obligation Bonds, Series 2016C, and approval of the electronic bidding procedures, and awarding the Bonds to the best bidder. RESOLUTION Directing the advertisement for sale of $2,830,000 (dollar amount subject to change) General Obligation Bonds, Series 2016A, and approving electronic bidding procedures and Official Statement RESOLUTION Directing the advertisement for sale of $11 ,505,000 (dollar amount subject to change) General Obligation Refunding Bonds Series 2016B, and approving the electronic bidding procedures and Official Statement RESOLUTION Directing the advertisement for sale of $4,155,000 (dollar amount subject to change) General Obligation Bonds Series 2016C, and approving the electronic bidding procedures and Official Statement SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Series 2016ABC Preliminary Official Statement Supporting Documentation Series 2016A Directing Advertisement of Sale Resolutions Series 2016B Directing Advertisement of Sale Resolutions Series 2016C Directing Ad�ertisement of Sale Resolutions Combined Notice of Bond Sale Supporting Documentation Bond Counsel Letter Supporting Documentation THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings to Direct Advertisement for Sale of $2,830,000 General Obligation Settlement Bonds, Series 2016A, $11,505,000 General Obligation Refunding Bonds, Series 2016B, and $4,155,000 General Obligation Bonds, Series 2016C and Approval of Electronic Bidding Procedures DATE: February 10, 2016 Budget Director Jennifer Larson recommends City Council approval of the suggested proceedings for directing sale of the $2,830,000 General Obligation Settlement Bonds, Series 2016A, $11,505,000 General Obligation Refunding Bonds, Series 2016B, and $4,155,000 General Obligation Bonds, Series 2016C, approval of the electronic bidding procedures, and awarding the Bonds to the best bidder. On May 4, 2015, one public hearing was held on a bond issuance not to exceed $3 million. On December 21, 2015, two public hearings were held on bond issuances not to exceed a total of$16.1 million. The not to exceed amounts include a contingency for fluctuations in the bond market for interest rates, bond issuance costs and changes in project costs. The Series 2016A bonds will provide $2,830,000 to pay associated costs of the settlement of the franchise fee litigation. The Series 2016B bonds will provide $11,505,000 to refund previously issued General Obligation Bonds. This refunding will provide $1,448,937 in interest savings over the life of the bonds. The Series 2016C bonds will provide $4,155,000 to pay costs of Airport New Terminal Improvements including parking lots and roads with repayment from local option sales tax ($625,329); sanitary sewer improvements with repayment from sanitary sewer user fees ($2,370,000); water system improvements with repayment from water user fees is intended to provide funds to pay ($623,780); ten year coating on the Historic Federal Building roof with repayment from local option sales tax ($264,000); and Ham House tuck-pointing with repayment from local option sales tax ($197,370). The City's debt service levy will be used to pay debt service costs related to the $2,830,000 General Obligation Settlement Bonds, Series 2016A. The debt service is estimated to be $183,590 beginning in Fiscal Year 2017. The repayment of Series 2016B and Series 2016C will be from local option sales tax, sanitary, stormwater and water user fees, as well as Dubuque Industrial Center West and Greater Downtown Tax Increment Financing revenue. The bond sale will be held on March 7, 2016 at 11 :00 a.m. The results will be brought to the March 7th City Council meeting. A letter from attorney Mark Cory detailing information on the bond advertisement is enclosed. I concur with the recommendation and respectfully request Mayor and City Council approval. 114� Michael C. Van Milligen MCVM/jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Larson, Budget Director Jean Nachtman, Finance Director THE CITY OF DubuquE UBE I erica .i Masterpiece on the Mississippi 200,.2012.201, TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director SUBJECT: Proceedings to Direct Advertisement for Sale of $2,830,000 General Obligation Settlement Bonds, Series 2016A, $11,505,000 General Obligation Refunding Bonds, Series 2016B, and $4,155,000 General Obligation Bonds, Series 2016C and Approval of Electronic Bidding Procedures DATE: February 10, 2016 INTRODUCTION The purpose of this memorandum is to recommend the advertisement for the sale of the $2,830,000 General Obligation Settlement Bonds, Series 2016A, $11,505,000 General Obligation Refunding Bonds, Series 2016B, and $4,155,000 General Obligation Bonds, Series 2016C and approval of the electronic bidding procedures. DISCUSSION On May 4, 2015, one public hearing was held on a bond issuance not to exceed $3 million. On December 21, 2015, two public hearings were held on bond issuances not to exceed a total of$16.1 million. The not to exceed amounts include a contingency for fluctuations in the bond market for interest rates, bond issuance costs and changes in project costs. The Series 2016A bonds will provide $2,830,000 to pay associated costs of the settlement of the franchise fee litigation. The Series 2016B bonds will provide $11,505,000 to refund General Obligation Bonds, Series 2003 ($1,025,000); General Obligation Bonds, Series 2005A ($990,000); General Obligation Urban Renewal Bonds, Series 2005B ($3,050,000); General Obligation Bonds, Series 2006A ($1,830,000); General Obligation Bonds, Series 2008A ($2,705,000); and General Obligation Urban Renewal Bonds, Series 2008B ($1,790,000). This refunding will provide $1,448,937 in interest savings over the life of the bonds. The Series 2016C bonds will provide $4,155,000 to pay costs of Airport New Terminal Improvements including parking lots and roads with repayment from local option sales tax ($625,329); sanitary sewer improvements with repayment from sanitary sewer user fees ($2,370,000); water system improvements with repayment from water user fees is intended to provide funds to pay ($623,780); ten year coating on the Historic Federal Building roof with repayment from local option sales tax ($264,000); and Ham House tuck-pointing with repayment from local option sales tax ($197,370). The City's debt service levy will be used to pay debt service costs related to the $2,830,000 General Obligation Settlement Bonds, Series 2016A. The debt service is estimated to be $183,590 beginning in Fiscal Year 2017. The repayment of Series 2016B and Series 2016C will be from local option sales tax, sanitary, stormwater and water user fees, as well as Dubuque Industrial Center West and Greater Downtown Tax Increment Financing revenue. The bond sale will be held on March 7, 2016. A letter from attorney Mark Cory detailing information on the bond advertisement is enclosed. A draft copy of the preliminary Official Statement prepared by Independent Public Advisors 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 Teri Goodmann, Assistant City Manager Jean Nachtman, Finance Director 2 Ahlers &Cooney, P.C. COONEYAttorneys at Law AHLERS 100 Court Avenue, Suite 600 A l `t" 0 R N E Y S Des Moines, Iowa 50309-2231 Phone: 515-243-7611 Fax: 515-243-2149 www.ahlerslaw.com R. Mark Cory 515.246.0378 rcory@ahlerslaw.com February 10, 2016 Via Email and UPS Overnight Deliver Ms. Jenny Larson Budget Director 50 W. 13th Street Dubuque, Iowa 52001 Re: City of Dubuque, Iowa General Obligation Bonds, Series 2016A General Obligation Refunding Bonds, Series 2016B - General Obligation Bonds, Series 2016C Dear Jenny: I am enclosing the following proceedings to cover the advertisement for sale of General Obligation Bonds, as well as approving the Preliminary Official Statement and approving electronic bidding procedures for the sale. The resolution directing the advertisement of Bonds for sale includes the form of notice of sale. We have enclosed a copy of the procedure to be completed as the original and certified back to our office following the Council's action. The Clerk has been authorized to select a date for sale and to publish the Notice of Bond Sale, form of which is enclosed. In choosing a date for the sale, be sure that the Council members will be available to meet and that you have sufficient time to publish the notice. Publication Requirement--Notice of Bond Sale. The Notice of Bond Sale must be published at least one time in a newspaper published in the County where the Bonds are offered for sale. The Bond sale may be held at any time; but not less than four clear days nor more than twenty days following the date of the last publication. An extra copy of the notice is enclosed for use by the newspaper. (The enclosed certificate covering the publication of the notice should be returned promptly together with a copy of the published notice so we can proof the publication.) The Notice of Sale includes language to permit the use of electronic bidding. You should have Independent Public Advisors LLC's recommendation that electronic bidding procedures be utilized for this Bond sale. Based upon this recommendation, the Iowa Code requires that the WISHARD & GAILY - 1888: GUERNSEY & BAILY - 1893; BAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER, AHLERS & COONEY - 1950; AHLERS, COONEY, DORWEILER, ALLBEE, HAYNIE & SMITH - 1974; AHLERS, LOONEY, DORWEILER, HAYNIE. SMITH & ALLBEE, P.C. - 1990 February 10, 2016 Page 2 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. This Resolution also approves the Official Statement and authorizes its distribution with respect to the above-referenced issue. Independent Public Advisors, LLC has prepared a draft of the preliminary Official Statement for the City. You should give this to the Council, and have provided comments to Independent Public Advisors. on behalf of the City for the final POS. If that has not been done prior to the meeting, then the Official Statement should not be approved and the Resolution will need to be modified. You should be aware that the preparation of the Official Statement is subject to Federal Securities Law regulation, and should be certain that any facts and representations contained in the Official Statement are both accounts in all material respects and not omitting any information material to the City's financial conditions, to and including the date of the delivery of the above- referenced Bonds. In the near future, we will send proceedings for the receipt of bids and award of sale. Please let me know if you have any questions. r� Very trly you , x R. Mark Cory FOR THE FIRM RMC:csm Enclosures cc: Ken TeKippe, Finance Director (via e-mail w/enc.) Kevin Firnstahl, City Clerk (via e-mail w/enc.) Tionna Pooler (via e-mail w/enc.) 01212134-1\10422-165 z� � 3 C PRELIMINARY OFFICIAL STATEMENT DATED FEBRUARY 2016 LL o New&Refunding Issues Moody's Investors Service Assuming compliance with certain covenants, in the opinion ofAhlers& Cooney,P.C,Bond Counsel, under present law and assuming continued compliance with the requirements of the Internal Revenue Code of 1956,as amended(the "Code'): (i)interest on the Bonds will be excluded from gross income for federal income tax purposes, 3 .g (ii)interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations under the Internal Om Revenue Code of 19S6, and(iii) interest on the Bonds WILL be taken into account in determining adjusted current earnings for the purpose of computing the alternative q o ,d z minimum tax imposed on corporations. The Bonds will NOT be designated as "qualified tax-exempt obligations". See "TAX EXEMPTION AND RELATED CONSIDERATIONS"herein for a more detailed discussion. THE CITY OF DUB JE CITY OF DUBUQUE, IOWA S a Masterpiece on the Mississippi o A $2,830,000* General Obligation Bonds, Series 2016A $11,505,000* General Obligation Refunding Bonds, Series 2016B K $4,155,000* General Obligation Bonds, Series 2016C BIDS RECEIVED: Monday,March 7, 2016 11:00 o'clock A.M., Central Time a S AWARD: Monday,March 7, 2016, 0 o'clock P.M., Central Time C w Dated: Date of Delivery(April 4, 2016) Principal Due: June s shown on inside front cover o C C The $2,830,000*General Obligation Bonds, Series 2016A(the "Se es 2016A Bonds") ,the $11,505,000*General Obligation Refunding Bonds, Series 2016B (the "Series 2016B Bonds"), and the $4,155,000 Taxable General Obligation Bonds, Series 2016C (the "Series .9 2016C Bonds")(collectively the"Bonds") are being issued pursuant to Division III of Chapter 384 and Chapter 403 of the Code of Iowa, o Ae and resolutions to be adopted by the City Council of the City of Dubuque, Iowa (the "City"). Proceeds of the Bonds will be used for C o . o � 5 various City projects as described fully under"AUTHORITY AND PURPOSE"herein. The Bonds will be general obligations of the City x gm E for which the City will pledge its power to levy direct ad valorem taxes to the repayment of the Bonds. � N 0 o The Bonds will be issued as fully registered Bonds without coupons and, when issued, wihl be registered in the name of Cede & Co., as nominee of The Depository Trust Company("DTC"). DTC will act as securities depositorythe Bonds. Individual purchases may be omade in book-entry form only, in the principal amount of$5,000 and integral multiples ther of Purchasers will not receive certificates o K 2 representing their interest in the Bonds purchased. Principal of the Series 2016A Bonds and the Series 2016C Bonds payable K 9� annually on each June 1, beginning June 1, 2017 and interest thereon, payable initia on December 1, 2016 and thereafter on each m June 1 and December 1, will be paid to DTC by the City's Registrar/Paying Agent, Wells Fargo Bank, N.A., Des Moines, Iowa (the "Registrar"). Principal of the Series 2016B Bonds payable annually on each June 1, beginning June 1, 2016 and interest thereon, o R�payable initially on June 1, 2016 and thereafter on each December 1 and June 1, will be paid to DTC by the City's Registrar/Paying ao Agent, Wells Fargo Bank, N.A., Des Moines, Iowa (the "Registrar").DTC will in turn remit such principal and interest to its o participants for subsequent disbursements to the beneficial owners of the Bonds as described herein. Interest and principal shall be g H I paid to the registered holder of a Bond as shown on the records of ownership maintained by the Registrar on the 15'h day of the month preceding said interest payment date(the"Record Date"). K q a E BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER d4 o 0 Series 2016A Bonds Series 2016B Bonds Series 2016C Bonds MINIMUM BID: $2,801,70 $11,447,475 $4,113,450 2 K .o GOOD FAITH 1% (Required of Purchaser 1% (Required of Purchaser 1% (Required of Purchaser DEPOSIT: Only) Only) Only) TAX Federal: Tax-Exempt Federal: Tax-Exempt Federal: Tax-Exempt b MATTERS: State: Taxable State: Taxable State: Taxable b See"TAX EXEMPTION AND See"TAX EXEMPTION AND See"TAX EXEMPTION AND C RELATED CONSIDERATIONS" RELATED CONSIDERATIONS" RELATED CONSIDERATIONS" 3 section for details. section for details. section for details. b K The Bonds are offered for delivery, when, as and if issued and subject to the legal opinions of Ahlers & Cooney, P.C., Bond Counsel, oof Des Moines, Iowa, to be furnished upon delivery of the Bonds. The Bonds will be available for delivery through DTC in New York, New York, on or about April 4, 2016. 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 w information required by law, and shall constitute a "Final Official Statement" of the City with respect to the Bonds, as defined in Rule A- 0 15c2-12. x H0d *Preliminary;subject to change. CITY OF DUBUQUE, IOWA $2,830,000* General Obliaation Bonds, Series 2016A MATURITY: June 1, Amount* June 1, Amount* 2017 $120,000 2027 $150,000 2018 130,000 2028 150,000 2019 135,000 2029 155,000 2020 135,000 2030 160,000 2021 135,000 2031 165,000 2022 135,000 2032 165,000 2023 140,000 2033 170,000 2024 140,000 20 175,000 2025 145,000 180,000 2026 145,000 SERIES 2016A Preliminary; subject to change. The City reserves the righ PRINCIPAL increase or decrease the aggregate principal amounts of the ADJUSTMENT*: Bonds. Such change will be in increments of$5,000 and maybe made in any of the maturities. The purchase prices will be adjusted proportionately to reflect any changes in issue size. SERIES 2016A December 1, 2016 a d semiannually thereaft INTEREST: SERIES 2016A The Bonds due after June 1, 2024 will be sNbjecttoll prior to REDEMPTION: maturity in whole, or from time to time in part, in any order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon terms of par plus accrued interest to date of call. Written notice of such call shall be given t least thirty (30) days prior to the date fixed for redemption to e registered owners of the Bo s to be redeemed at the address shown on the registration boo . SERIES 2016A In addition to the onal redemption terms set forth above, the EXTRAORDINARY Series 2016A Bon ubject to extraordinary redemption prior REDEMPTION to maturity, in whole from time to time in part within the maturity by lot, on any date or dates, at the option of the City at a demption price of par plus accrued interest to the date of mption, following the occurrence of (i) the effective date of a ended City ordinance that has been passed by the City Con cil, and approved at an election called for that purpose under Iowa Code Section 364.2(4)(f), which imposes a franchise fee on the gross revenues generated from sales of electricity and/or natural gas within the City at a rate above the current rate of five percent (50/o), or (ii) if at any time the City has received and has on hand more than Five Hundred Thousand Dollars ($500,000) in aggregate amount of unclaimed judgment proceeds from the class administrator appointed in the franchise fee litigation generally described in Order No. CVCV054663, dated September 18, 2014 in the Iowa District Court in and for Dubuque County, or as a result of donations to the City of refund claims from class members in said franchise fee litigation. $11,505,000* General Obligation Refunding Bonds, Series 2016B MATURITY: June 1, Amount* June 1, Amount* 2016 $485,000 2023 $950,000 2017 1,425,000 2024 550,000 2018 1,465,000 2025 445,000 2019 1,480,000 2026 245,000 2020 1,500,000 2027 255,000 2021 1,515,000 2028 255,000 2022 935,000 SERIES 2016B Preliminary; subject to change. The City reserves the right to PRINCIPAL increase or decrease the aggregate principal amounts of the ADJUSTMENT*: Bonds. Such change will be in increments of$5,000 and may be made in any of the maturities. The purchase prices will be adjusted proportionately to reflect any changes in issue size. SERIES 2016B June 1, 2016 and semiannually thereafter. INTEREST: .0 SERIES 2016B The Bonds due after June 1, 2024 will be subject to call prior to REDEMPTION: maturity in whole, r from time to time in part, in any order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days prior to the date fixed for redemption to he registered owners of the Bonds to be redeemed at the address shown on the registration books. $4,155,000* General Obliaation Bonds, Series 2016C MATURITY: June 1, Amount* June 1, Amount* 2017 $120,000 2027 $150,000 2018 130,000 2028 150,000 2019 135,000 2029 155,000 2020 135,000 2030 160,000 2021 135,000 2031 165,000 2022 135,000 6changes 32 165,000 2023 140,00033 170,000 2024 140,00034 175,000 2025 145,000180,000 2026 145,000 SERIES 2016C Preliminary; subject to chany reserves the ri PRINCIPAL increase or decrease the aggipal amounts of the ADJUSTMENT*: Bonds. Such change will bets of$5,000 and may made in any of the maturitiehase prices will be adjusted proportionately to rhanges in issue size. SERIES 2016C December 1, 2016 and semiannually thereafter. INTEREST: SERIES 2016C Theonds due after June 1, 2024 wi be subject ll prior to REDEMPTION: aturity in whole, or from time to time in part, in any order of aturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days prior to theate fixed for redemption to he registered owners of the Bonds t e redeemed at the address on the registration books. COMPLIANCE WITH S.E.C. RULE 15c2-12 Municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations, Securities Exchange Act of 1934,Rule 15c2-12 Municipal Securities Disclosure. Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to prospective bidders. Its primary purpose is to disclose information regarding the Bonds to prospective bidders in the interest of receiving competitive bids in accordance with the TERMS OF OFFERING contained herein. Unless an addendum is received prior to the sale, this document shall be deemed the "Near Final Official Statement". Review Period: This Preliminary Official Statement has been distributed tCity staff as well as to prospective bidders for an objective review of its disclosure. Comments, omissions or inaccuracies must be submitted to Independent Public Advisors, LLC 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 itions to the Preliminary Official Statement, prospective bidders will be informed by an addendum at least one _ss day prior to the sale. Final Official Statement: Upon award of sale of the Bonds, the legislative body i authorize the preparation of a Final Official Statement that includes the offering prices, interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery date and other information required by law and the identity of the underwriter (the "Syndicate Manager') and syndicate members. Copies of the Final Official Statement will be delivered to the Syndicate Manager within seven business days following the bid acceptance. REPRESENTATIONS No dealer, broker, salesperson or other person h en authorized by the City to give any information or to make any representations, other than those contained ' the Preliminary Official Statement. This Preliminary Official Statement does not con itute any offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any perso , in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information, estimates and expressions of opinion herein are subject to change without notice and neither the delivery of thisPreliminary Official Statement nor any sale made hereunder, shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. This Preliminary Official Statement is submitted in connection with the sale of the securities referred to herein and may not be reproduced or used, in whole or in part,for any other purpose. This Preliminary Official Statement and an da thereto were prepared relying on information from the City and other sources,which are believed to be rel Bond Counsel has not participated in the preparation of this Preliminary Official Statement and is not expressing any opinion as to the completeness or accuracy of the information contained therein. Compensation of Independent Public Advisors, LLC (the "Financial Advisor") payable entirely by the City, is contingent upon the sale of the issue. TABLE OF CONTENTS TERMSOF OFFERING...................................................................................................................................................i INTRODUCTION.............................................................................................................................................................1 AUTHORITY AND PURPOSE.........................................................................................................................................1 OPTIONAL REDEMPTION OF THE BONDS.................................................................................................................3 EXTRAORDINARY REDEMPTION OF THE SREIES 2016A BONDS...........................................................................3 INTEREST ON THE NOTES............................................................................................................................................3 PAYMENT OF AND SECURITY FOR THE BONDS.....................................................................................................4 BOOK-ENTRY-ONLY ISSUANCE.................................................................................................................................4 FUTUREFINANCING .....................................................................................................................................................6 LITIGATION.....................................................................................................................................................................6 DEBT PAYMENT HISTORY ......................................................................... ...........................................................7 LEGALMATTERS..................................................................................... ...........................................................7 TAXMATTERS ..................................................................................... ...............................................................8 STATE TAXABILITY....................................................................... ............................................................. 10 CHANGES IN FEDERAL AND STATE TAX LAW.................... ...... ........................................................ 10 RATING.................................................................................... ... ............... .................................................... 12 INVESTMENT CONSIDERATIONS.................................. ........................ ............................................... 12 FINANCIAL ADVISOR.................................................. ................................. ........................................... 13 CONTINUING DISCLOSURE...................................... .......................................... ...................................... 13 CERTIFICATION.............................................................. ........................................... .................................. 13 PROPERTY VALUES........................................................... ............. ...................... .............................15 IOWA PROPERTY VALUATIONS......................................... ... ............................. ........................ 15 1/1/2015 VALUATIONS (Taxes payable JAIy 1, 2016 through J )................................. ........................... 15 2015 GROSS TAXABLE VALUATION BY CLAS F PROPER ................................................................... 16 TREND OF VALUATIONS....................................... ................... .............................................................. 16 LARGER TAXPAYERS (000's)........................ ......... ................. .......................................................... 16 LEGISLATION...................................................... ............. .............. ..................................................... 17 INDEBTEDNESS............... ................... ............ ............ ..................................................18 DEBTLIMIT................. ........ ................. ..... ..... ............................................................. 18 DIRECTDEBT............ .................. ................ ................. .......................................................... 19 ANNUAL FISCAL YEA T SERV PAYMEN .......................................................................................20 OTHERDEBT...................... .......... ..................... .....................................................................................23 INDIRECT DEBT.. ................. ............. ..................................................................................24 DEBTRATIOS............. ............. ............ ......... ...............................................................................24 LEVIES AND TAX CO ION 's).............. .......................................................................................24 TAXRATES........................ .............. ..................... ......................................................................................25 LEVYLIMITS............................................. ............................................................................................................25 FUNDS ON HAND (Cash and Investments as nary 31, 2016)..............................................................................25 THECITY............................................................. ....................................................................................................26 CITYGOVERNMENT............................ .......................................................................................................................26 EMPLOYEES,PENS AND OP ......................................................................................................................26 UNIONCONTRACT . .............. ......................................................................................................................27 INSURANCE.................... ...... ........................................................................................................................28 GENERAL INFOR UT 29 LOCATION AND TRANSPO ON........................................................................................................................29 LARGER EMPLO YERS..................................................................................................................................................29 BUILDING PERMITS.....................................................................................................................................................31 USCENSUS DATA ........................................................................................................................................................31 UNEMPLOYMENT RATES...........................................................................................................................................31 EDUCATION...................................................................................................................................................................32 FINANCIAL STATEMENTS..........................................................................................................................................32 APPENDIX A: FORM OF LEGAL OPINIONS APPENDIX B: JUNE 30,2015 INDEPENDENT AUDITOR'S REPORTS APPENDIX C: FORM OF CONTINUING DISCLOSURE CERTIFICATE CITY OF DUBUQUE, IOWA Mayor and City Council Member Term Expiration Roy D. Buol,Mayor 201 Ric W. Jones-At Large 2017 David T. Resnick-At Large 019 Kevin J. Lynch-Ward 1 017 Luis Del Toro-Ward 2 2019 Joyce E. Connors-Ward 3 2017 Jake A. Rios-Ward 4 2019 Adm anon Michael C. Van Millig , City Manager Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jean Nachtman, Finance Director Jenny Larson,Budget Director Kevin Firnstahl, City Clerk City Attorney Barry A. Lindahl Dubuque, Iowa Bond Consel &Cooney,P.C. Moines,Iowa Financial Advisor Independent Public Advisors, LLC Johnston,Iowa TERMS OF OFFERING CITY OF DUBUQUE, IOWA This section sets forth the description of certain terms of the Bonds as well as the Terms of Offering with which all bidders and bid proposals are required to comply, as follows: DETAILS OF THE SERIES 2016A BONDS General Obligation Bonds, Series 2016A(the " Series 2016A Bonds"), in the aggregate principal amount of$2,830,000* to be dated April 4, 2016, in the denomination of$5,000 or any integral uItiples thereof designated by the Purchaser(s) within forty-eight hours of acceptance of the bid,will mature as follow June 1, Amount* June 1. Amount* 2017 $120,000 2027 $150,000 2018 130,00012028 150,000 2019 135,0002029 155,000s� 2020 135,0002030 160,000 2021 135,0002031 165,000 2022 135,000 203 165,000 2023 140,000 2033 170,000 2024 140,000 2034 175,000 2025 145,000 2035 180,000 2026 145,00 DETAILS OF THE SERIESS General Obligation Refunding Bonds, Series 2016B (th " Ser 2016B �, in the aggregate principal amount of $11,505,000* to be dated April 4, 2016, in the denomination of$5,000 or any integral multiples thereof designated by the Purchaser(s)within forty-eight hours Sfacceptance of the bid,will mature as follows: June 1. Amoun June 1. Amount* X0 $485,000 023 $950,000 2 17 1,425,000 024 550,000 2018 1,465,000 2025 445,000 2019 1,480,00 % 2026 245,000 2020 1500,000 2027 255,000 2021 1515,000 2028 255,000 22 935,000 i DETAILS OF THE SERIES 2016C BONDS General Obligation Bonds, Series 2016A(the " Series 2016A Bonds"), in the aggregate principal amount of$4,155,000* to be dated April 4, 2016, in the denomination of$5,000 or any integral multiples thereof designated by the Purchaser(s) within forty-eight hours of acceptance of the bid,will mature as follows: June 1, Amount* June 1, Amount* 2017 $180,000 2027 $220,000 2018 190,000 2028 225,000 2019 195,000 2029 230,000 2020 195,000 2030 30,000 2021 200,000 2031 40,000 2022 200,000 2032 245,000 2023 205,000 203 250,000 2024 205,000 20 k 000 2025 205,0004035 00 2026 215,000 PRINCIPAL ADJUSTMENT OF THE BONDS The City reserves the right to increase or decrease the aggregate principal amodnts of the Bonds. Sch changes will be in increments of $5,000 and may be made in any of the maturities. The purchase prices of each re ective series will be adjusted proportionately to reflect any changes in issues. OPTIONAL REDEMPTION OF THE BONDS The Bonds due after June 1, 2024 will be subjecttiprior to atuNinwor from time to time in part in any order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty (30) days prior to the date fixed for redemption to the registered Owers of the Bonds to be redeemed at the address shown on the registration books. INTEREST ON THE BOND Interest on the Series 2016A Bonds and Series 2016C Bonds ill be payable on December 1, 2016 and semiannually on the lst day of each June and December thereafter until the principal is paid in full. Interest on the Series 2016B Bonds will be payable on Ju e 1, 2016 and semiannually on the lst day of each December and June thereafter until the principal is paid in full. Intere principal shall be paid to the registered holder of a Bond as shown on the records of ownership maintained by the Re as of the 15th day of the month preceding such interest payment date (the "Record Date"). Interest will be compute the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board. *Preliminary; subject to change. ii GOOD FAITH DEPOSITS Good faith deposits in the amount of$28,300 for the Series 2016A Bonds ("Series 2016A Deposit'), $115,050 for the Series 2016B Bonds ("Series 2016B Deposit"), and $41,550 for the Series 2016C Bonds ("Series 2016C Deposit") collectively (the `Deposits") is required from the lowest bidder only. Each lowest bidder is required to submit such respective 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 not later 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 be rejected and the City may direct the second lowest bidder to submit a deposit and thereafter may award the sale of the Bonds to the same. No interest on the Deposits will accrue to the successful bidder(s) (the"Purchaser(s)'). The Deposits will be applied to the respective purchase prices of the Bonds. In the event chaser(s)fails to honor its accepted bid proposal,the Deposits will be retained by the City. FORM OF BIDS AND AWARD All bids shall be unconditional for each series of the Bonds for a price not le ban $2,801,700 for the Series 2016A Bonds, $11,447,475 for the Series 2016B Bonds and $4,113,450 for the Series 201 B Bonds, plus accrued interest, if any, and shall specify the rate or rates of interest in conformitf to the limitations set forth under the "RATES OF INTEREST" section. Bids must be submitted on or in substantial compliance with the OFFICIAL BID FORM provided by the City. The Bonds will be awarded to the bidder offering the lowest interest rate toe determined on a true interest cost (the "TIC") basis assuming compliance with the "GOOD FAITH DEPOSITS" section. The TIC shall e determined by the present value method, i.e., by ascertaining the semiannual rate, compounded semiannually, necessary to discount to present value as of the dated date of the Bonds, the amount payable on each interest payment date and on each stated maturity date or earlier mandatory redemption, so that the aggregate of such amounts will equal the aggregate purchase price offered therefore. The TIC s ll be stated in terms of an annual percentage rate and shall be that rate of interest, which is twice the semiannual rate so ascertained(also known as the Canadian Metld). 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 \b1id RATES OF IN EST The rates of interest ecified inNnproposaust conform to the following limitations: 1. For each respective series, each annual maturity must bear the same interest rate. Each annual maturity must bear a single rate of interest from the dated date of the Bonds to the date of maturity. 2. Rates of interest bid must be in multiples of one-eighth or one-twentieth of one percent. 3. 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 must be level or in ascending order. iii RECEIPT OF BIDS Forms of Bids: Bids must be submitted on or in substantial compliance with the TERMS OF OFFERING and OFFICIAL BID FORM provided by the City or through PARITY® competitive bidding system (the 'Internet Bid System'). The City shall not be responsible for malfunction or mistake made by any person, or as a result of the use of an electronic bid or the means used to deliver or complete a bid. The use of such facilities or means is at the sole risk of the prospective bidder who shall be bound by the terms of the bid as received. No bid will be accepted after the time specified in the Official Bid Forms as published in this Preliminary Official Statement. The time as maintained by the Internet Bid System shall constitute the official time with respect to all bids submitted. A bid may be withdrawn before the bid deadline using the same method used to submit the bid. If more than one bid is received from a bidder, the last bid received shall be considered. Sealed Biddin¢: Sealed bids may be submitted and will be received t the Cit Hall, 50 West 13th Street, Dubuque, Iowa 52001. Electronic Internet Biddine: Electronic internet bids must be submitted throng ntemet Bid System. Information about the Internet Bid System may be obtained by calling(212) 404-8102. Each bidder shall be solely responsible for making necessaarrangements 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 TERMS OF OFFERING and OFFICIAL BID FORM. The City is permitting bidders to use the services of the Internet Bjd 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 TERMS OF OFFERING and OFFI AL BID FORM shall control in the event of conflict with information provided by the Internet Bid System. Electronic Facsimile Biddin¢: Electronic facsimile bids will be received at City Hall, Dubuque, Iowa (facsimile number: (563) 589-0890) or the office of the City'sinancial Advi or (515) 259-8193. Electnic facsimile bids will be sealed and treated as sealed bids. Facsimile Transmissions received after the deadline will be rejected. Bidders electing to submit bids via facsimile transmission bear full responsibility for the transmission of such bid. Neither the City nor its agents shall be responsible for malfunction or mistake made by any person, or as a result of the use of the facsimile facilities or any other means used to deliver or complete a bid. The use of such facilities or means is at the sole risk of the prospective bidder who shall be bound by the terms of the bid as received. Neither the City nor its agents will assume liability for the inability of the bidder to reach the above named facsimile numbers prior to the time of sale specified above. Time of receipt shall be the time recorded by the facsimile operator receiving the bids. iv BOOK-ENTRY-ONLY ISSUANCE The Bonds will be issued by means of a book-entry only system with no physical distribution of note certificates made to the public. The Bonds will be issued in fully registered form and one note certificate, representing the aggregate principal amount of the Bonds maturing in each year will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC'), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the Registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The Purchaser(s), as a condition of delivery of the Bonds,will be required to deposit the bond certificates with DTC. MUNICIPAL BOND INSURANCE AT OPTION OF THE PURCHASER(S) 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 Ken awarded to therchaser(s) shall not constitute cause for failure or refusal by the Purchaser(s) to acceptqdelivery on the Bonds. The Ci reserves the right in its sole discretion to accept or deny changes e mancing docu is requested by the insurer selected by the Purchaser(s). DELIVERY AMP 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 immedi tely available cash or federal funds. The Bonds are expected to be delivered within forty-five days after the sale. Should delivery be delayed beyond sixty days from the date of sale for any reason except failure of performance by the Purchaser(s), the Purchaser(s) may withdraw their bid and thereafter their interest in and liability for the Bonds will cease. When the Bonds are ready for delivery, the City will give the Purchaser(s)five working days notice of the delivery date and the City will expect payment in full on that date, erwise reserving_ fight at ' ption to determine that the Purchaser failed to comply with the offer of purchase. INFORMATIO OM PURCHASER(S) The Purchaser(s)will be required to certify to the City immediately after the opening of bids: (i)the initial public offering price of each maturity of the Bonds (not including sales to bond houses 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 upon 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 Purchaser(s) will also be required to provide a certificate at closing confirming the information required by this paragraph. v PRELIMINARY OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Bonds. The Preliminary Official Statement 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 the Series 2016A Bonds are awarded up to 20 copies of the Final Official Statement, to the senior managing underwriter of the syndicate to which the Series 2016B Bonds are awarded up to 40 copies of the Final Official Statement and to the senior managing underwriter of the syndicate to which the Series 2016C Bonds are awarded up to 20 copies of the Final Official Statement to permit each "Participating Underwriter"(as that term is defined in the Rule) to comply with the provisions of such RuS 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 Pat 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 final Official Statement. CONTINUING DISCLOSURE In order to assist bidders in complying with paragraph (b)(5) of the ule, the City will undertake, pursuant to the resolution for the Bonds and the Continuing Disclosure Certificate for the Bonds, to provide certain annual financial information and notices of the occ ence 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 ontinuing Disclosure Certificate at closing, and any failure on the part of the City to deliver the same shall relieve the Purchaser of its obligation to purchase the Bonds. The City inadvertently failedo comply with previouVon uing disclosure undertakings in accordance with the reporting requirements of paragraph (f) (3) of the Rule. While some of the required tables were provided in accordance to the Rule (within 210 days after the end of the fiscal year), all required tables and the audited financial statements for the years ending June 30, 2009, June 30, 2010 and June 30, 20 re not timely filed. On February 1, 2010, all outstanding required tables and the audited financial statements for the ye ending June 30, 2009 were filed; on February 2, 2011, all outstanding required tables and audited financial statements for the year ending June 30, 2010 were filed; and on January 31, 2012,the City fil the outstanding required tables and audited financial statements for the year ending June 30, 2011, in accordance with rile As part of continued review of policies and procedures regarding the Rule, the City also discovered certain tab financings related to general obligation and water revenue issuances for the years ending June 30, 2012 and 2013 ere not included as part of the City's annual financial information, and made supplemental filings related to these issues on May 6, 2014. In addition, a table regarding retail sales required as part of the City's previous continuing disclosure undertakings was not included as part of the City's annual financial information for the year ending June 30, 2013, and was subsequently filed on May 27, 2014. The City has taken steps internally to assure future compliance with its Disclosure Covenants. vi CUSIP NUMBERS It is anticipated that Committee on Uniform Security Identification Procedures ("CUSIP")numbers will be printed on the Bonds and the Purchaser must agree in the bid proposal to pay the cost thereof. In no event will the City, Bond Counsel 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 to refuse to accept delivery of said Bonds. BY ORDER OF THE CITY COUNCIL City of Dubuque 50 West 13" Street Dubuqu A52001 vii PRELIMINARY OFFICIAL STATEMENT CITY OF DUBUQUE, IOWA $2,830,000* General Obligation Bonds, Series 2016A $11,505,000* General Obligation Refunding Bonds, Series 2016B $4,115,000* General Obligation Bonds, Series 2016C INTRODUCTION This Preliminary Official Statement contains information relating to the City of Dubuque, Iowa (the "City') and its issuance of$2,830,000* General Obligation Bonds, Series 2016A(the "Series 2016A Bonds'), $11,505,000* General Obligation Refunding Bonds, Series 2016B (the "Series 2016B Bonds") and the $4,115,000* General Obligation Bonds, Series 2016C(the "Series 2016C Bonds') (collectively the `Bonds'). This Official Statement has been executed on behalf of the City and its Administrator and may be distributed in connection with the sale of the Bonds authorized therein. Inquiries may be directed to Independent Public Advisors, LLC, 8805 Chambery Blvd, Suite 300, #114, Johnston, Iowa 50131, or by telephoning (515) 259-8193. Information can also be obtained from Ms. Jenny Larson, Budget Director, City of DubuqueA 50 West 13'b Street, Dubuque, Iowa 5 200 1,or by telephoning 563-589-4110. AUTHORITY AND PURPOSE The Bonds are being issued pursuant to Divi ion III of Chapter 384 of the Code of Iowa, and resolutions to be adopted by the City Council of the City. Proceeds of the Series 2016A Bonds will be used for to pay costs of a) settling a judgement as generally described in Order No. CVCV054663, dated Septemb 18, 2014 in the Iowa District Court in and for Dubuque County. Proceeds of the Series 2016B Bonds will be used for pay the costs of a) settl ent, adjustment, renewing, or extension of any part or all of the legal indebtedness of a city, whether evidenced by s, warrants, or judgments, or the funding or refunding of the same, whether or not such indebtedness was created for a purpose for which general obligation bonds might have been issued in the original instance. The following bonds (the "Refunded Bonds") are being refunded by the Series 2016B efunded incipal Interest Call Call Series to be Refunde Maturities Amount Rate Date Price General Obligatio onds, Series 2 06/01/ 016 110,000 4.100% 04/07/2016 100% 06/01/ 7 115,000 4.200% 04/07/2016 100% 06/01/ 18 120,000 4.300% 04/07/2016 100% 06/01/2019 125,000 4.400% 04/07/2016 100% 06/01/2020 130,000 4.500% 04/07/2016 100% 06/01/2021 135,000 4.600% 04/07/2016 100% 06/01/2022 140,000 4.700% 04/07/2016 100% 06/01/2023 150,000 4.750% 04/07/2016 100% General Obligation Bonds, Series 2005A: 06/01/2016 90,000 4.000% 04/07/2016 100% 06/01/2017 95,000 4.100% 04/07/2016 100% 06/01/2018 100,000 4.200% 04/07/2016 100% 06/01/2019 105,000 4.250% 04/07/2016 100% 06/01/2020 110,000 4.300% 04/07/2016 100% 06/01/2021 115,000 4.350% 04/07/2016 100% 06/01/2022 120,000 4.400% 04/07/2016 100% 06/01/2023 125,000 4.450% 04/07/2016 100% 06/01/2024 130,000 4.500% 04/07/2016 100% 1 Refunded_ Principal Interest Call Call Series to be Refunded Maturities Amount Rate Date Price General Obligation Urban Renewal Bonds, Series 200513: 06/01/2016 150,000 3.950% 04/07/2016 100% 06/01/2017 530,000 4.000% 04/07/2016 100% 06/01/2018 555,000 4.100% 04/07/2016 100% 06/01/2019 580,000 4.150% 04/07/2016 100% 06/01/2020 605,000 4.200% 04/07/2016 100% 06/01/2021 630,000 4.250% 04/07/2016 100% General Obligation Corporate Purpose Bonds, Series 2006A: 06/01/2016 150,000 .900% 04/07/2016 100% 06/01/2017 155,000 .950% 04/07/2016 100% 06/01/2018 160,000 4.000% 04/07/2016 100% 06/01/2019 170,000 4.050% 04/07/2016 100% 06/01/2020 175,000 00% 04/07/2016 100% 06/01/2021 85,000 % 04/07/2016 100% 06/01/2022 95,000 4. 04/07/2016 100% 06/01/2023 05,000 4.15 04/07/2016 100% 06/01/2024 210,000 4.20000 4/07/2016 100% 06/01/2025 1000 4.200% 07/2016 100% General Obligation Stormwater Bonds, Series 2008A: 2017 1 000 O4.100% 06/ 016 100% 1/2018 185,000 4.250% 06/01/2016 100% 06 01/2019 j1900,000 4.300% 06/01/2016 100% 06/01/2020 ,000 4N375% 06/01/2016 100% 06/01 21 000 % 06/01/2016 100% 06/01/2 22 215,000 % 06/01/2016 100% 06/01/2023 25,000 % 06/01/2016 100% 06/01/2024 40,000 .500% 06/01/2016 100% 0%1/2025 50,000 4.625% 06/01/2016 100% 01/2026 60,000 4.700% 06/01/2016 100% 06/01/2027 75,000 4.750% 06/01/2016 100% 06/01/2028 %;5'000 5000 4.800% 06/01/2016 100% General Obligation Urban Renewal Bonds, Series 200813: 01/2017 4.000% 06/01/2016 100% 1/2018 230,000 4.000% 06/01/2016 100% 06/ 9 245,000 4.000% 06/01/2016 100% 06/01/ 255,000 4.250% 06/01/2016 100% 06/01/2021 265,000 4.250% 06/01/2016 100% 6/01/2022 280,000 4.250% 06/01/2016 100% 06/01/2023 290,000 4.250% 06/01/2016 100% Proceeds of the Series 2016C B 1 be used for pay the costs of a)the opening, widening, extending, grading, and draining of the right-of-way of str highways, avenues, alleys and public grounds; b) the acquisition, construction, reconstruction, extension, improvement, and equipping of works and facilities useful for the collection, treatment, and disposal of sewage and industrial waste in a sanitary manner and for the collection and disposal of surface waters and streams; c) the reconstruction, extension and improvement of an airport owned or operated by the city; d) the acquisition, construction, reconstruction, improvement, repair, and equipping of waterworks, water mains, and extensions, and real and personal property, useful for providing potable water to residents of a city; and e) improvement and equipping of the Federal Building and Ham House. 2 The Purchaser(s) of the Bonds agrees to enter into a Loan Agreement with the City pursuant to authority contained in Sections 384.24, 384.24A, and 384.25 of the Code of Iowa. The Bonds are issued in evidence of the City's obligations under the Loan Agreement The estimated Sources and Uses of the Bonds are as follows: Sources of Funds Series 2016A Bonds Series 2016B Bonds Series 2016C Bonds Par Amount* $2,830,000.00 $11,505,000.00 $4,155,000 Uses of Funds Project Fund $2,770,000.00 $0.00 $4,080,479.00 Bond Redemption 0.00 11,390,000.00 0.00 Underwriter's Discount 28,300.00 57,525.00 41,550.00 Cost of Issuance&Rounding 31,700.00 57 475.00 32,971.00 Total $2,830,000.00 1 , 05,000.00 $4,155,000.00 *Preliminary; subject to change. OPTIONAL REDEMPTION OF THE BONDS The Bonds due after June 1, 2024 will be subject to call prior to maturity in whole, or from ti time in part, in any order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City, upon terms of par plus accrued interest to date of call. Written notice of such call shall be given at least thirty(30) days prior to the date fixed for redemption to the registered owners of the Bon to be redee d at the address shown on the registration books. EXTRAORDINARY REDE ION OF THE ES 2016A BO In addition to the optional redemption term set forth above, the Series 16A Bonds are subject to extraordinary redemption prior to maturity, in whole or from time to time in part, within the maturity by lot, on any date or dates, at the option of the City at a redemption price of par plus accrued interest to the date of redemption, following the occurrence of (i) the effective date of an amended City ordinatnce that has been passed by the City Council, and approved at an election called for that purpose under Iowa Code Section 364.2(4)(f), which imposes a franchise fee on the gross revenues generated from sales of electricity and/ornatural gas within the City at a rate above the current rate of five percent(5%), or(ii) if at any time the City has received and has on hand more than Five Hundred Thousand Dollars ($500,000) in aggregate amount of unclaimed judgment proceeds from the class administrator appointed in the franchise fee litigation generally described in Order No. CVCV054663, dated September 18, 2014 in the Iowa District Court in and for Dubuque County or as a result of donations to the City of refund claims from class members in said franchise fee litigation. INTEREST ON THE NOT Interest on the Series 2016A B s and the Series 2016C Bonds will be payable on December 1, 2016 and semiannually on the 1st day of June and December thereafter. Interest on the Series 2016B Bonds will be payable on June 1, 2016 and semiannually on the 1st day of December and June thereafter. Interest and principal shall be paid to the registered holder of a note as shown on the records of ownership maintained by the Registrar on the 15th day of the month preceding said interest payment date (the 'Record Date'). Interest will be computed on the basis of a 360- day year of twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board. 3 PAYMENT OF AND SECURITY FOR THE BONDS The Bonds are general obligations of the City and the unlimited taxing powers of the City are irrevocably pledged for their payment. Upon issuance of the Bonds, the City will levy taxes for the years and in amounts sufficient to provide 100% of annual principal and interest due. The City is required to levy ad valorem taxes upon all taxable property in the City without limit as to rate or amount sufficient to pay the debt service except to the extent that other monies are deposited in the debt service fund for such purposes. Nothing in the resolutions authorizing the Bonds prohibits or limits the ability of the City to use legally available moneys other than the proceeds of the general ad valorem property taxes levied as described in the preceding paragraph to pay all or any portion of the principal of or interest bn the Bonds. If and to the extent such other legally available moneys are used to pay the principal of or interest on the Bonds, the City may, but shall not be required to, (a) reduce the amount of taxes levied for such purpose, as described in the preceding paragraph; or (b) use proceeds of taxes levied, as described in the preceding paragraph, to reimburse the fund or account from which such other legally available moneys are withdrawn for the amount withdrawn from such fund or account to pay the principal of or interest on the Bonds. The City's obligation to pay the principal of and interest on the Bonds is on parit th the City's obligation to pay the principal of and interest on any other of its general obligation debt secured by a c vena t to levy taxes within the City, including any such debt issued or incurred after the issuance of the Bonds. The utions authorizing the Bonds do not restrict the City's ability to issue or incur additional general obligation though issuance of additional general obligation debt is subject to the same constitutional and statutory limita that apply to the issuance of the Bonds. For a further description of the City's outstanding general obligation debt upon issuance of the Bonds and the annual debt service on the Bonds, see DIRECT DEBT under INDEBTEDNESS herein. For a description of certain constitutional and statutory limits the issuance f general obligation debt, see DEBT LIMIT under INDEBTEDNESS herein. BOOK-ENTRY-ONLY ISSUANCE The information contained in the follNbyD aragraph is subsection `Book-Entry-Only Issuance" has been extracted from a schedule preparedpository T Company (`DTC') entitled "SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING DTC AND BO TRY-ONLY ISSUANCE." The information in this section concerning DTC a DTC's book-entry system as btained from sources that the City believes to be reliable, but the City take onsibility for the 'ac e f. A The Depository Trust Compan 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 resp2iository, any remaining principal amount of such issue. DTC, the world's largest securiti 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 4 corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust& Clearing Corporation (`DTCC'). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants'). DTC has Standard & Poor's highest 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�,pf Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the ook-entry system for the Securities is discontinued. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be liquested by an authorized representative of DTC. The deposit of Securities with Dd their registration in the name of Cede & r such other DTC nominee do not affect any change in benefi ership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the entity of the Direct Participants to whose accounts such Securities are credited,which may or may not be the Beneficial Owners. The Direct and ISlicipan articipants will remain responsible for keeping account of their holdings on behalf of their customers. Vkh Afinah- Conveyance of notices and other communications by DTC to Direct Par , by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securfities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less tI6 all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co., nor any other DTC nominee, will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures,DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date identified in a listing attached to the-Omnibus Proxy. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co., or such 5 other nominee as may be requested by an authorized representative of DTC, is the responsibility of the City or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to 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. Am- 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-e try-only sfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and deliv red to DTC. The information in this section concerning DTC and DTC's book-entry system has be\btained om sources that the City believes to be reliable,but the City takes no responsibilit for the accuracy thereo FUTURE FINANCING Within the next six months, the City antiitipates financing an estimated $11 million in capital projects. The City regularly evaluates its debt for refunding opportunities. LITIGATION The City has settled a class ac ion aw smt brought in eIowa ric ourt for buque County, J. Thomas Zaber v. City of Dubuque, which alleges that certain gas and electric franchise fees imposed by the City were illegal because they constituted unauthorized taxes. The City Council approved a settlement agreement to pay $2.6 million, plus administrative costs, into a settlement fund. The settlement agreement has been approved by the Iowa district court and is being administered by Rust Consulting. A judgment bond will be issued by the City to finance the settlement fund. The district court has ncluded that refunds will not be automatic; customers must file for a refund. The district court has not yet decided wo.happens to any unclaimed refunds. The plaintiffs have requested that any unclaimed refunds either be paid to the State of Iowa or to some charitable entity. The City has resisted that request and has taken the position that the unclaimed refunds should be returned to the City. If the City receives the unclaimed refunds,they will be used to reduce the principal of the judgment bon hk The City is the defendant in a lawsuit in the Iowa District Court for Dubuque County brought by a subcontractor, Mark Fondell Excavating, Inc., on the City's wastewater treatment plant project. The petition seeks damages in excess of $900,000 for "unjust enrichment" as a result of alleged extra work performed by the subcontractor in connection with the project. The City had no agreement with the subcontractor to perform any work, believes it has substantial defenses to the action, and intends to defend the matter vigorously. The City is a defendant in a lawsuit in the Iowa District Court for Dubuque County, Ainley Kennels & Fabrication, Inc. et al v. City of Dubuque, brought by several local manufacturers seeking to have a portion of franchise fees paid by them over the last five years refunded. An ordinance of the City of Dubuque, since amended, did not impose a franchise fee for gas or electric usage if the usage was exempt from state sales taxes. The total claims for refunds exceeds $500,000. The City has since modified its ordinance to limit claims for refunds to the fiscal year in which the franchise fees were paid. A summary judgment motion by the City was granted by the District Court dismissing the lawsuit. The case is on appeal to the Iowa Supreme Court. The City is a defendant in a lawsuit in the Iowa District Court for Dubuque County brought by W.C. Stewart vs. City of Dubuque regarding a contract relating to construction at the municipal airport. The lawsuit is on hold as the parties 6 have agreed to arbitrate the matter. Stewart contends it is entitled to an additional payment for extra work in an amount in excess of $2,000,000. The City denies liability for any extra work and is vigorously defending in the arbitration proceeding. The City is a defendant in an eminent domain appeal in the Iowa District Court by Robert W. Bradley Trust, et al. The Compensation Commission awarded the property owner $851,000, which has been paid. The property owner is seeking $1,934,277 on appeal. The City would be responsible for 20%of any additional recovery. The City is a defendant in an eminent domain appeal in the Iowa District Court by Jon Luckstead. The Compensation Commission made an award to the property owner which has been paid. The property owner is seeking an additional $500,000 on appeal. The City would be responsible for 20%of any addition1 overy. The City Attorney has estimated that all remaining potential settlements and lawsuits against the City as of February 8, 2016, not covered by insurance would not materially affect the financial position of the City. The City has authority to levy additional taxes (outside the regular limit)to cover uninsured judgments against the City. To the knowledge of the City, no other litigation is pending or threatened which,lin opinion of the City Attorney, if decided adversely to the City would be likely to result, either individually or gregate, in final judgments against the City which would materially adversely affect its ability to make debt servic ents on Bonds when due, or its obligations under the Resolution, or materially adversely ect its fi cial conditio DEBT PAYMENT HISTORY The City knows of no instance in which it has ulted in the payment of principal or interest on its debt. LEGAL MATTERS The Bonds are subject to approva as to certain matters by Ahlers & Cooney, .C. of Des Moines, Iowa as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy, completeness or sufficiency. Bond Counsel has not examined, nor attempted 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 FORM OF LEG ON set out in APPENDIX A to this Preliminary Official Statement, w' be delivered at closing. The legal pinions to be delivered concurrently with the de of the Bonds express the professional judgment of the attorneys rendering the opinions as to legal issues expressly addressed therein. By rendering legal opinions, the opinion giver does not become an insurer or guarantor of the result indicated by that expression of professional judgment, or of the transaction on which the opinions are rendered, or of the future performance of parties to the transaction. Nor does the rendering of opinions guarantee the outcome of any legal dispute that may arise out of the transaction. There is no bond trustee or similar person to monitor or enforce the provisions of the resolutions for the Bonds. The owners of the Bonds should,therefore,be prepared to enforce such provisions themselves if the need to do so arises. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the resolutions for the Bonds) may have to be enforced from year to year. The obligation to pay general ad valorem property taxes is secured by a statutory lien upon the taxed property, but is not an obligation for which a property owner may be held personally liable in the event of a deficiency. The owners of the Bonds cannot foreclose on property within the boundaries of the City or sell such property in order to pay the debt service on the Bonds. See LEVIES AND TAX COLLECTIONS herein,for a description of property tax collection and enforcement. 7 In addition, the enforceability of the rights and remedies of owners of the Bonds may be subject to limitation as set forth in Bond Counsel's opinions. The opinions will state, in part, that the obligations of the City with respect to the Bonds may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, to the exercise of judicial discretion in appropriate cases and to the exercise by the State and its governmental bodies of the police power inherent in the sovereignty of the State and to the exercise by the United States of America of the powers delegated to it by the Constitution of the United States of America. TAX MATTERS Tax Exemptions and Related Considerations: Federal tax law contains a number of requirements and restrictions that apply to the 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 mustI's tisfied in order for the interest on the Series Bonds to be excludable from gross income for federal income tax pes. Failure to comply with certain of such covenants could cause interest on the Bonds to be;ncoedcovenarits, . dable in grme for federal income tax purposes retroactively to the date of issuance of the Bonds. Subject to the City's compliance with the above ref under p , in the opinion of Bond Counsel, interest on the Bonds is excludable from gross income of the ow rs thereof al income tax purposes, and is not included as an item of tax preference in computing the fed 1 alternaum tax imposed on individuals and corporations. However, with respect to corporations (as defined for federal in tax purposes), such interest is included in adjusted current earnings for the purpose of determining the federal alternative minimum tax for such corporations. Prospective purchasers of the Bonds should be re th nership of the 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, incidual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to ha curred (or continued) indebtedness to purchase or carry tax-exempt obligations. Bond Counsel will not express any opinion as to such collateral tax consequences. Prospective purchasers of onds should consult their tax advisors as to collateral federal income tax consequences. Tax Accountin Treatment of Discount and Prcram Bonds. The initial public offering price of certain Bonds (the "Discount Bonds")may be less than the amoun able on such Bonds at maturity. An amount equal to the difference between the initial public offering price of Discount Bonds (assuming that a substantial amount of the Discount Bonds of that maturity are sold to the public at such price) and the amount payable at maturity constitutes original issue discount to the initial purchaser of such Discount Bonds. 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 its payment at maturity), be treated as interest excludable from gross income, rather than as taxable gain, for federal income tax purposes, on the same terms and conditions as those for other interest on the Bonds described above under "FAX MATTERS". Such interest is considered to be accrued actuarially in accordance with the constant interest method over the life of Discount Bonds, taking into account the semi-annual compounding of accrued interest, at the yield to maturity on such Discount Bonds and generally 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 during the tax year. However, such interest may be required to be taken into account in determining the amount of the branch profits tax applicable to certain foreign corporations doing business in the United States, even though there will not be a corresponding cash payment. In addition, the accrual of such interest may result in certain other collateral federal income tax consequences to, among others, financial institutions, life insurance companies, property and casualty insurance companies, S corporations with "subchapter 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 8 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 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 were 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 paym*ma The initial public offering price of certain Bonds (the"Premium Bonds' greater than the amount of such Bonds at maturity. An amount equal to the difference between the initial public o ering price of Premium Bonds (assuming that a substantial amount of the Premium Bonds of that maturity are sold public at such price) and the amount payable at maturity constitutes premium to the initial purchaser of such Pre onds. The basis for federal income tax purposes of Premium Bonds in the hands of such initial purchaser must be duced 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 le or othertaxable disposition of Premium Bonds. The amount of premium which is amortizable each year by an initi chaser is determined by using uch purchaser's yield to maturity. Purchasers of the Premium Bonds should lbsult6with their own to isors with respect to the determination of amortizable bond premium on Premium Bonds for federal income tax p s and with respect to the state and local tax consequences of owning and disposing of Premium Bond Disclaimer Regarding Federal Tax Discussion: The federal income ax iscussion et forth above is included for general information only and may not be applicable depending upon a beneficial owner's particular situation. Beneficial owners should consult their tax advisors with respect to the tax consequences to them of the purchase, ownership, and disposition of the Bonds, including the tax consequences under federal, state, local, foreign, and other tax laws and the possible effects We s in federal or other tax laws. Related Tax Matters: Internal Revenue Service (thee') has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Servic , terest on such tax-exempt obligations is includable in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the Bonds. If an audit is commenced,under current procedures the Service may treat the City as a taxpayer and the bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded,regardless of the ultimate outcome. Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes. Current and future legislative proposals, including some that carry retroactive effective dates, if enacted into law, or clarification of the Code may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation, or otherwise prevent owners of the Bonds from realizing the full current benefit of the tax status of such interest. For example, Representative David Camp, Chair of the House Ways and Means Committee released draft legislation that would subject interest on the Bonds to a federal income tax at an effective rate of 10%or more for individuals, trusts and 9 estates in the highest tax bracket, and the Obama Administration proposed legislations that would limit the exclusion from gross income of interest on obligations like the Bonds to some extent for taxpayers whose income is subject to higher marginal income tax rates. Other proposals have been made that could significantly reduce the benefit of, or otherwise affect, the exclusion from gross income of interest on obligations like the Bonds The introduction or enactment of any such legislative proposals or clarification of the Code may also affect, perhaps significantly, the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed tax legislation, as to which Bond Counsel expresses no opinion. Opinion: 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. No 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 circumsta e, or change in law or interpretation, or otherwise. Not Qualified Tax-Exempt Obligations: The City will NOT designate the Bonds go tax- exempt obligations" under the exception provided in Section 265(b)(3) of the Internal Revenue Code of s amended(the"Code"). STATE TAXABILITY Interest on the Bonds is not exempt from present state oNlowa metaxes. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability of such state and local taxes. CHANGES IN FEDERAL AND STATE TAX LAW From time to time, there are executive, regulatory and legislative proposals in t, 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 impactthe 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 Acf') which was introduced in the Senate on September 13, 2011 at the request of President Obama. If enacted in its current form, the Jobs Act 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. In, addition, on September 29, 2011, President Obama submitted to Congress a legislative proposal entitled the "Debt Reduction Act of 2011" (the "Reduction Act"). If enacted, as proposed, the Reduction Act would require the Office of Management and Budget to establish a steadily declining ratio for debt as a percentage of Gross Domestic Product and would impose a penalty in the event that Congress failed to meet the requirements, including automatic sequestration of spending and the reduction in the value of certain tax incentives, including interest on tax-exempt municipal notes, potentially (in the extreme) eliminating the exemption fro V xation that tax-exempt municipal notes held at the time of issuance. It cannot be predicted whether or in what form any such proposals might be enacted or whether if enacted it would apply to notes 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. It is possible that further legislation will be proposed or introduced that could result in changes in the way that tax exemption is calculated, or whether interest on certain securities are exempt from taxation at all. Prospective purchasers should consult with their own tax advisors regarding the Jobs Act and/or the Reduction Act and any other pending or proposed federal income tax legislation. The likelihood of the Jobs Act or the Reduction Act being enacted or whether the currently proposed terms of the Jobs Act and/or the Reduction Act will be altered or removed during the legislative process cannot be reliably predicted. 10 O P 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 Bonds have an uninsured rating of ` ' by Moody's Investors Service (Moody's), with no outlook. In addition, Moody's currently rates the City's outstanding uninsured General Obligation Debt as ` ' with no outlook. Such ratings reflect only the view of the rating agency and any explanation of the significance of such rating may only be obtained from the respective rating agency. There is no assurance 4BEA ngs will continue for any period of time or that they will not be revised or withdrawn. INVESTMENT CONSIDERATIONS A PROSPECTIVE PURCHASER OF THE NOTES SHOULDE THAT THEREARE CERTAIN INVESTMENT CONSIDERATIONS ASSOCIATED WITH THE NOTES. EACH PROSPECTIVE PURCHASER OF THE NOTES IS ENCOURAGED TO READ THIS ELIMINARY OFFICIAL STATEMENT IN ITS ENTIRETY, AND 10 GIVE PARTICUL TTENTION TO THE CONSIDERATIONS DESCRIBED BELOW WHICH, AMONG OTHERS, ULD AFFECT THE PAYMENT OF DEBT SERVICE AND THE MARKET PRICE O THE NOT HE FOLLOWING STATEMENTS REGARDING CERTAIN INVESTMENT CONSIDERATIONS ULD NOT BE CONSIDERED A COMPLETE DESCRIPTION OF ALL CONSIDERATIONS IN T E DECISION TO PURCHASE THE NOTES. Additional Indebtedness: The City reserves the right to iss additional bonds payable from the same sources and ranking on a parity with each series of the Bonds. Investment Rating: The rating assigned to the Bonds by Moody's nve ors Service, Inc. (the 'Rating Agency') reflects only the Rating Agency's view of the likelihood the noteholders will receive payments of interest when due and principal on the Bonds on their respective maturity dates. There is no assurance that the rating will remain for any given period of time or that the rating will not be lowered, suspended or withdrawn by the Rating Agency if, in the Rating Agency's judgment, circumstances so warrant based upon factors prevailing at the time. The lowering, suspension or withdrawal of the investment rating initially assigned to the Bonds could adversely affect the market price and the market for the Bonds. Secondary Market: Although the ty anticipates that the Underwriter(s) will make a market for the Bonds, such market making may be discontinued at any time. There can be no assurance that there will be a secondary market for the Bonds, and the absencesuch could result in investors not being able to resell their Bonds should they need or wish to do so. Redemption of Bonds: The Bonds due after June 1, 2024 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. The redemption of the Bonds prior to their stated maturity may subject noteholders to the risk of reinvestment at a time when comparable returns are not available. In addition to the optional redemption terms set forth above, the Series 2016A Bonds are subject to extraordinary redemption prior to maturity, in whole or from time to time in part, within the maturity by lot, on any date or dates, at the option of the City at a redemption price of par plus accrued interest to the date of redemption, following the occurrence of (i) the effective date of an amended City ordinance that has been passed by the City Council, and approved at an election called for that purpose under Iowa Code Section 364.2(4)(f), which imposes a franchise fee on the gross revenues generated from sales of electricity and/or natural gas within the City at a rate above the current rate of five percent(5%), or(ii) if at any time the City has received and has on hand more than Five Hundred Thousand Dollars ($500,000) in aggregate amount of unclaimed judgment proceeds from the class administrator appointed in the franchise 12 fee litigation generally described in Order No. CVCV054663, dated September 18, 2014 in the Iowa District Court in and for Dubuque County, or as a result of donations to the City of refund claims from class members in said franchise fee litigation. FINANCIAL ADVISOR The City has retained Independent Public Advisors, LLC, Johnston, Iowa as financial advisor (the "Financial Advisor') in connection with the preparation of the issuance of the Bonds. In preparing the Preliminary Official Statement, the Financial Advisor has relied on government officials, and other sources to provide accurate information for disclosure purposes. The Financial Advisor is not obligated to undertake, and has not undertaken, an independent verification of the accuracy, completeness, or fairness of the informatioft contained in the Preliminary Official Statement Independent Public Advisors, LLC is an independent advisory firm and is not engaged in the business of underwriting,trading or distributing municipal securities or other public securities. CONTINUING DI SCLO SURE In order to permit bidders for the Bonds and other Participa i nderwriters i rimary offering of the Bonds to comply with paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities an ange Commission under the Securities Exchange Act of 1934, as amended, the City will covenant and agree, the benefit of the registered holders or beneficial owners from time to time of the outstanding Bonds, i the resolution authorizing the issuance of the Bonds and the Continuing Disclosure Certificate, to provide annual repows of specified,information and notice of the occurrence of certain material events as hereinafter described(the `Disclosure Covenants").- e information to be provided on an annual basis, the events as to which notice is to be given, and a summary of of er provisions of the Disclosure Covenants, including termination, amend t and remedies, are set forth as APPENDIX C to this Preliminary Official Statement. The City inadvertently failed to comply with previous continuing disclosure ulertakings in accordance with the reporting requirements of paragraph(f) (3) of the Rule. While some of the required tables were provided in accordance to the Rule(within 210 days after the end of the fiscal year), all required tables and the audited financial statements for the years ending June 30, 2009, June 30, 2010 and June 30, 2011 were not timely filed. On February 1, 2010, all outstanding required tables and the audited financial statements for the year ending June 30, 2009 were filed; on February 2, 2011, all outstanding required tables and audited financial statements for the year ending June 30, 2010 were filed; and on January 31, 2012, the City filed the outstanding required tables and audited financial statements for the year ending June 30, 2011, in accordance with the Rule. As part of continued review of policies and procedures regarding the Rule, the City also discovered certain tables for financings related to general obligation and water revenue issuances for the years ending June 30, 2012 and 2013, were not included as part of the Issuer's annual financial information, and made supplemental filings related to these issues on May 6, 2014. In addition, a table regarding retail sales required as part of the Issuer's previous continuing disclosure undertakings was not included as part of the Issuer's annual financial information for the year ending June 30, 2013, and was subsequently filed on May 27, 2014 The City has takNthedisst nte to assure future compliance with its Disclosure Covenants. CERTIFICATION The City has authorized ion 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 of Dubuque, Iowa, by Independent Public Advisors, LLC., Johnston, Iowa, and said Preliminary Official Statement does not contain any material misstatements of fact nor omission of any material fact regarding the issuance of $2,830,000* General Obligation Bonds, Series 2016A, $11,505,000* General Obligation Refunding Bonds, Series 2016B, or $4,155,000* General Obligation Bonds, Series 201C. CITY OF DUBUQUE,IOWA /s/Jenny Larson,Budget Director 13 *Preliminary, subject to change. 14 PROPERTY VALUES IOWA PROPERTY VALUATIONS In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs all County Auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The assessments finalized as of January 1 of each year are applied to the following fiscal year. The 2015 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 2015, the Taxable Value rollback rate was 55.6259% of Actual Value for residential property; 46.1068% of Actual Value for agricultural property; 90% of Actual Value for commercial, industrial, and railroad property, 86.2500% of Actual Value for multiresidential property, and 100%of Actual Value for utility property. The Legislature's intent has been to limit the growth of statewide taxable valuations for most classes of property to 3% annually; utility taxable valuation growth is limited to 8%. P ' 'cal subdivisions whose taxable values are thus reduced or are unusually low in growth are allowed to ap valuations to the State Appeal Board, in order to continue to fund present services. 1/1/2015 VALUATIONS (Taxes payable July 1,2016 t h June 30,2017) 100% Taxa lue Actual Value (With Ro ack) Residential $2,490,140,793 $1,378,810,194 Commercial 790,008,779 681,752,444 Industrial 81,946,985 68,009,250 Multiresidential 4,280,227 149,824,341 Railroad 3,509,694 3,158,724 Utilities w/o Gas &Elect 7,242,383 7,242,383 Other 536,914 483,222 Gross valuation 3,547,665,775 $2,289,280,558 Less milita exem (5,141,152) (5,141,152) Iet valuation $3,542,524,623 $2,284,139,406 F increment(use o compute debt service levies and constitutional debt limit) $368,052,981 $368,036,160 Taxed separately Ag. Land&Buildings $6,383,591' 2,943,154 Utilities— &Elec 226,955,695 $74,189,179 Excludes $216 of TIF ag land. 15 2015 GROSS TAXABLE VALUATION BY CLASS OF PROPERTYz Taxable Percent Valuation Total Residential $1,378,810,194 58.266% Multiresidential 149,824,341 6.331% Ag. Land& Ag. Buildings 2,943,154 0.124% Commercial,Industrial, Other,Railroad&Utility 760,646,023 32.143% Utilities—Gas &Electric 74,189,179 3.135% Total Gross Taxable Valuation $2,4(,911 100.00% TREND OF VALUATIONS The 100% Actual Valuations, before rollback and after reduction ofy exemption, include Ag. Land, Ag. Buildings, TIF Increment, and Gas & Electric Utilities. The Taxable Valuations, with the rollback and after the reduction of military exemption, exclude the Taxable TIF Increment, Ag. Land and Ag Buildings. Iowa cities certify operating levies against Taxable Valuation excluding the Taxable TIF Increment and debt service levies are certified against Taxable Valuations including the Taxable TIF Increment. Taxable Assessment Payable 00% Valuation Taxable Year Fiscal Year ctual Valuation ith Rollback TIF Increment 2010 2011-12 3,553,386,961 2,034,470,780 279,611,679 2011 2012-13 3,633,462,506 2,108,760,803 299,591,318 2012 2013- 31 620,304 2,171, 73,899 300,503,112 2013 2014-1 3,8 6,062 2,250, 1910 346,925,191 2014 2015-16 3,920, 7 2,255,562,993 327,982,095 20153 2016-17 4,143, 2,358,328,585 368,036,160 LARGER TAXPAYERS(000's erty 1/1/2014 T3XPaV Tuve Taxable Valuation Peninsula Gang Company LLC ommercial $61,326 Interstate Pow &Light CO Utility 39,483 nedy Mall Inc Commercial 35,312 Black Hills Energy Corp. Utility 26,726 Progressive Processing LLC Industrial 21,397 Medical Associates Realty LLC Commercial 21,307 Nordstrom,Inc Commercial 18,599 LLC Walter Development Commercial 16,639 McGraw-Hill Global Education LLC Commercial 15,907 Otto A LLC Commercial 14,100 Platinum Holdings LLC Commercial 11,817 Before military exemption, and exclusive of taxable TIF increment. 3 January 1, 2015 valuations will be effective beginning July 1, 2016. 16 LEGISLATION From time to time, legislative proposals are pending in Congress and the Iowa General Assembly that would, if enacted, alter or amend one or more of the property tax matters described herein. It cannot be predicted whether or in what forms any of such proposals, either pending or that may be introduced, may be enacted, and there can be no assurance that such proposals will not apply to valuation, 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 opinions expressed by Bond Counsel are 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 is s 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 yea}.s 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 exceding thirty years from date of issue. 2013 Property Tax Legislation: During its 2013 session the Iowa Legislature enacted, and the Governor signed, Senate File 295 ("SF 295'). Among other things, SF295 limits annual assessed value growth with respect to residential and agricultural property (from 4% to 3%), reduces the taxable value applicable tommercial, industrial and railroad property to 95% for the 2013 assessment year and 90% for the 2014 assessm t year and all years thereafter, and provides a partial exemption on telecommunications property. SF295 also creates a new classification for multiresidential properties (which were previously taxed as commercial properties), and assigns an incremental rollback percentage over several years for such multiresidential properties, such that the rollback determination will match that for residential properties in the 2022 assessment year. As a result of SF 295, local governments expect to experience reductions in property tax revenues over the next several fiscal years. SF 295 includes state-funded replacement for a portion of the expected reduction in property tax revenues to the local governments, but such replacement funding is limited in both amount and duration of availability. The City does not expect the state replacement funding to fully address the property tax reductions resulting from SF 295. 17 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 2014 Actual Valuations applicable to fiscal year 2015-16 is as follows: 1/1/2014 (Fiscal Year 2015-16) Actual Valuation of Property $3,926,100,101 Less Military Exemption (5,478,214) Net Valuation $3,920,621,887 Constitutional Debt Percentage 5.00% Constitutional Debt Limit 96,031,094 Less: Applicable General on Debt (119,165,000) Less: Urban Renewal Debt (22,181,6 Less: Rebate Agreements (22,228,2 Less: Other Obligations 12,0 47 142 Constitutional Debt Margin 20,409,114 18 DIRECT DEBT First Lien General Obligation Debt(Includes the Bonds) Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 03/01/16 10/03 $2,110,000 Corporate Purpose' 06/15 $0 04/05A 1,750,000 Corporate Purpose' 06/15 0 04/05B 4,270,000 Urban Renewal' 06/15 0 05/06A 2,900,000 Corporate Purpose' 06/15 0 11/07A 1,055,000 General Obligation Sewer 06/17 265,000 10/08A 3,885,000 General Obligation Stormw 06/16 170,000 10/08B 3,290,000 Urban Renewals 06/16 215,000 10/08C 2,465,000 Taxable Urban Rene 06/18 1,205,000 11/09A 2,935,000 Corporate Purpose 06/29 2,300,000 11/09B 11,175,000 Corporate Purpgse 06/29 8,845,000 11/09C 8,885,000 Refunding 1 06/21 4,795,000 08/10A 4,470,000 Corporate Purpose&Refunding 06/30 3,555,000 08/10B 2,675,000 Taxable Urban Rene 06/30 2,305,000 08/10C 2,825,000 UrbanRenewal 06/30 1360,000 09/11A 6,330,000 Cororate Purpose 06/31 5,540,000 09/11B 1,590,000 Corporate Purpose 06/26 1,290,000 03/12A 4,380,000 Urban Renewal 06/31 3,970,000 03/12B 7,495,000 Corporate Purpose 06/31 6,725,000 06/12C 6,9 ;MO Taxable Urban Renewa 06/32 6,400,000 06/12D 7 5,000 Corporate Pu e 06/32 6,230,000 12 12E ,640,000 Corporate Pu 06/32 3,245,000 12/12F 1,035,000 Taxable Urban 1 06/22 915,000 11/12G 950,000 Refunding 06/17 385,000 12/12H 2,385,000 Urban Renewal 06/32 2,225,000 12/12I7,285,000 Taxable Refunding 06/21 4,095,000 12/14B" 18,835,000 Corporate Purpose 06/34 18,835,000 12/14C 7,615,000 Taxable Corporate Purpose 06/34 7,615,000 04/16A 2,830,000 Corporate Purpose 06/35 2,830,000 04/16B 11,505,000 Refunding 06/28 11,505,000 04/16 4,155,000 Corporate Purpose 06/35 4,155,000 Total $111,975,000 Second Lien Sales Tax Increment GO& Obligation Debt "N Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 03/01/16 06/14 $7,190,000 Flood Mitigation 06/29 $7,190,000 Total First& Second Lien General Obligation Debt Subject to the Debt Limit $119,165,000 4 2016 and later maturities are being refunded by the Series 2016B Bonds. s 2017 and later maturities are being refunded by the Series 2016B Bonds. 19 ANNUAL FISCAL YEAR DEBT SERVICE PAYMENTS6 First Lien General Obligation Debt(Includes the Bonds, Excludes the Refunded Bond Current Outstanding Total G.O.Debt The Series 2016A Bonds The Serie ends The Series 2016C Bonds G.O.Debt Fiscal Principal and Principal and P nce d Principal and Principal and Year Principal Interest Princinal* Interest Principar Intere Principal* Interest Principal Interest FY 2015-16 $6,515,000 $8,252,624 $485,000 $507,084 $7,000,000 $8,759,708 FY 2016-17 5,960,000 8,858,780 $120,000 $183,590 1,425,000 1,561,569 1000 $273,407 7,685,000 10,877,347 FY 2017-18 6,060,000 8,790,725 130,000 184,022 1,465,000 1 1,167 0 269,326 7,845,000 10,835,239 FY 2018-19 6,005,000 8,556,684 135,000 187,826 1,480, 0 1689 19 272,578 7,815,000 10,609,776 FY 2019-20 6,030,000 8,409,701 135,000 1 49 1,50 , 7,593 195,0 270,589 7,860,000 10,464,331 FY 2020-21 5,600,000 7,798,646 135,000 184,924 1,515,0 1595,643 200,000 273,385 7,450,000 9,852,597 FY 2021-22 5,015,000 7,035,366 135,000 183,25 935,000 96,857 200,000 270,905 6,285,000 8,486,377 FY 2022-23 4,920,000 6,783,494 140,000 186,36 50,000 1767 205,000 273,105 6,215,000 8,241,725 FY 2023-24 5,005,000 6,710,238 140,000 184,1 00 7 205,000 269,907 5,900,000 7,748,267 FY 2024-25 5,165,000 6,704,946 145, 186,74 45,000 4 205,000 266,340 5,960,000 7,627,402 FY 2025-26 5,280,000 6,644,183145,0183,999 245,000 260, 215,000 272,466 5,885,000 7,361,613 FY 2026-27 5,300,000 6,478,44050,000 186,085 55,000 2 042 220,000 273,144 5,925,000 7,203,710 FY 2027-28 5,350,000 6,335,73650,0002,905 55000 2 36 225,000 273,480 5,980,000 7,052,756 FY 2028-29 5,550,000 6,335,00455,00014,590 230,000 273,508 5,935,000 6,793,101 FY 2029-30 4,720,000 5,289,01660,000 186,025 230,000 268,218 5,110,000 5,743,258 FY 2030-31 4,145,000 4 165,000 187,20 240,000 272,721 4,550,000 5,004,070 FY 2031-32 2,960,000 165,000 183,12 245,000 271,793 3,370,000 3,667,933 FY 2032-33 1,920,000 4 70,000 183,918 250,000 270,545 2,340,000 2,520,888 FY 2033-34 1 9850 ,060,256 75,000 184,498 260,000 274,045 2,420,000 2,518,799 FY 2034-35 180,000 184,860 265,000 272,155 445,000 457,015 Total $93,485,000 $2,83 $11,505,000 $4,155,000 $111,975,000 *Preliminary, subject to change. 6 The majority of the City's general obligation debt is supported by the following non-property tax revenues: tax increment, water, sewer, parking, airport rentals, local option sales tax,road use tax, and refuse fees. 20 Second Lien General Obligation Debt' Current Outstanding G.O. Debt Fiscal Principal and Year Principal Interest FY 2015-16 45,522 FY 2016-17 80,543 FY 2017-18 76,343 FY 2018-19 71,993 FY 2019-20 67,493 FY 2020-21 62,618 FY 2021-22 57,193 FY 2022-23 $115, 166,593 FY 2023-24 1,0 1,120,570 FY 2024-25 1 0 1,164,195 FY 2025-26 1, 0 1,344,250 FY 2026-27 1,200, 1,363 00 FY 2027- 8 1,250,0 ,365, 00 FY 202 1.300.000 65,000 Total 0,000 Supported by state sales tax increment. 21 Urban Renewal Revenue Debt Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 03/01/16 06/04 182,000 Lower Main Development 06/16 $24,958 11/06 810,323 Thiesen Supply 06/18 320,163 10/07 23,025,000 Port of Dubuque Parking Ramp 06/37 21,370,000 08/09 690,529 40 Main LLC 06/21 466,487 Total $22,181,608 Current Outstanding Urban Renewal Revenue Debt Fiscal I Principal an Year PAnciyal Interest FY 2015-16 $597,445 2,25 676 FY 2016-17 614,380 22 09 FY 201 8 668,900 22 ,496 FY 201 9 589,827 1108,784 FY2019-20 35,176 1110,534 FY 2020-2 80,880 2,109,284 FY 2021-22 635,000 2,014,625 Y 2022-23 680,000 2,012,000 FY 2023-24 30,000 2,011,000 FY 202425 785,000 2,011,250 FY 2025-26 845,000 2,012,375 FY 2026-27 910,000 2,014,000 FY 2027-28 975,000 2,010,750 FY 2028-29 1,050,000 21012,625 FY 2029-30 , 0 2,013,875 FY2030-31 1,21 , 0 2,014,125 FY 2031-32 1,305,000 2,013,000 FY2032-331,400,000 2,010,125 FY 2033-34 1505,000 2,010,125 FY 2034-35 1,620,000 2,012,250 FY 2035-36 1,740,000 2,010,750 FY 2036-37 1,870,000 2,010,250 Total $22,181,608 22 OTHER DEBT The City has debt payable solely from the net water revenues of the City's water system as follows: Water Revenue Debt Principal Date Original Final Outstanding of Issue Amount Purpose Maturitv As of 03/01/16 10/07 $915,000 Water Improvements (SRF) 06/28 $655,000 11/08D 1,195,000 Water Improvements 06/23 755,000 02/10 7,676,000 Water Improvements (SRF) 12/31 2,689,000 09/10D 5,700,000 Water Improvements 06/30 4,940,000 Total $9,039,000 The City has debt payable solely from the net sewer rev e City's sewer s as follows: Sewer Revenue Debt cipal Date Original Final O tanding of Issue Amount Purpose Maturi As of 03/01/16 01/10 912,000 Sewer Improvements (SRF) 06/30 $736,000 08/10 74,285,000 Sewer Improvements (SRF) 06/29 63,758,158$ 04/13 3,048,000 Sewer Improvements (SRF) 6/33 2,795,000 05/13 3,05 00 Se r Improvements (SRF) /31 2,689,000 Total $69,978,157 The City has debt payable sole the ewer revenues of the City's stormwater system as follows: Stormwater ue Debt Principal a e Original Final Outstanding of Issue Amount ose Maturity As of 03/01/16 01/09 1,847,000 Stormwater I ovements (SRF) 06/28 $1,321,000 O1/10 00,000 Stormwater Improvements (SRF) 06/30 645,000 10/10 850,000 Stormwater Improvements (SRF) 06/41 7,185,000 02/14 1,029,000 Stormwater Improvements (SRF) 06/33 190,720$ 06/15 29,541,000 Stormwater Improvements (SRF) 06/37 2.784.092$' Total W $12,125,812 $ Amount drawn as of June 30, 2015. 9 The loan allows for approximately $5.9 million to be forgiven October 2017. 23 INDIRECT DEBT 1/1/2014 Portion of City's Taxable Taxable Value Percent Indirect Taxing District Valuation In the City Applicable GO Debfo Portion Dubuque CSD $3,591,457,125 $2,583,545,088 71.94% $0 $0 Dubuque County 4,619,280,247 2,583,545,088 55.93% 5,695,500 3,185,471 Northeast Iowa Comm. College 10,943,197,222 2,583,545,088 23.61% 57,245,000 13,514,792 TOTAL $13,894,882 DEBT RATIOS #<ebt/20ctual Market Value Debt/57,532 G.O. $3.862.426.062 100jPo$ pulation Direct General Obligation Debt $119,165,000 3.04% 2,071.28 Indirect General Obligation Debt 16,700,263 % 290.28 Combined Debt $135,865,263 % 1.56 LEVIES AND TAX COLLECTIONS(000 Taxes urrent %of Year Levied flections xes Levied 2011-12 21,313 21,339 0.12% 2012-13 2,789 22,752 99.83% 2013-14 23,993 23,915 99.67% 2014-15 24,866 24,715 99.39% 2015-16 24,916 In process of collection After the assessment of property in a calendar year, taxes are levied'for collection in the following fiscal year. Taxes are certified to the County Auditor in March. The County Treasurer collects taxes for all taxing entities in the County. Statutory dates for payment without penalty are September 30 for the first installment and March 31 for the second installment. Penalty rates are established by State la at 1%per month. \4 ° School district figures exclude Sale and Service Tax Revenue Bonds. 24 TAX RATES Taxing FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16 District $/$1,000 $/$1,000 $/$1,000 $/$1,000 $/$1,000 City of Dubuque 10.45111 10.78477 11.02586 11.02588 11.02590 Dubuque County 6.49167 6.43124 6.43124 6.43124 6.38779 Dubuque CSD 16.87685 15.40388 14.60281 13.99630 14.05629 County Hospital 0.26040 0.26961 0.26975 0.26974 0.26975 City Assessor 0.33842 0.36188 0.39028 0.29320 0.26538 Ag. Extension 0.07564 0.08174 0.08941 0.09731 0.10056 Northeast Iowa CC 1.07379 0.98407 0.90455 0.90807 0.91036 State of Iowa 0.00320 0.00330 .00330 0.00330 0.00330 Consolidated Rate 35.57108 34.3204 3.7 33.02504 33.01933 LEVY LINHTS A city's general fund tax levy is limited to $8.10 per $11000 of taxable value, with pro sion for an additional $0.27 per $1,000 levy for an emergency fund which can be used for general fund pu ses (Code of Iowa, Chapter 384, Division 1). Cities may exceed the $8.10 limitation upon authorization by a special l election. Further,there are limited special purpose levies, which may be certified outside of the above-described levy limits (Code of IowaSection 384.12). The amount of the City's general fund levy subject to the $8.10 limitation is $8.10 for FY 2015-16. In addition, the City has certified special purpose levies outside of the above described levy limits for liability, property and self-insurance costs, as well as debt service. The City will not use the emergency levy in FY 2015-16. Debt service levies are not limited. FUNDS ON HAND(Cash a nts as of ary 31,2016) Agency $ 53 pital 39,057,035 ponent Unit 7,612,408 ebt Service" (2,353,931) Enterprise 23,970,053 General 4,596,133 Internal Service 2,944,056 Permanent 76,408 Special 20,427,238 Total Cash and Ines ents $97,699,353 " Deficit to be eliminated with transfers. 25 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,PENSIONS AND OPEB The City has 567 full and 79.6 full time equivalent part-time employees and 55.8 full time equivalent seasonal employees, including a police force of 109 sworn personnel and a fire department of 89 fire fighters. Of the City's 702 employees, 558 are currently enrolled in the Iowa Public E o ees\benefic (the "IPERS' pension plan administered by the State of Iowa. The City contributes to the Iowa Public Employees' Retirement System s a state-wide multiple- employer cost-sharing defined benefit pension plan administered by theRS provides retirement and death benefits which are established by State statute to an membersll full-time employees of the Issuer are required to participate in IPERS. IPERS memberstribute a percentage of their annual salary, in addition to the Issuer being require ke annum contributions to IPERS. Contribution amounts are set by State statute. The IPERS Comprehensive ual Financial Report for its fiscal year ended June 30, 2014 (the "IPERS CAFR') indicates that as of June 30, 2014, the date of the most recent actuarial valuation for IPERS, the funded ratio of IPERS was 82.7%, and the unfunded actuarial liability was $5.544 billion. The IPERS CAFR is available on the IPERS website, or by contacting IPERS at 7401N35 Drive,Des Moines,IA 50321. See"APPENDIX B INDEPENDENT AUDITOR'S STATEMENTS"fonal information on IPERS. In fiscal year 2014,the Issuer's IPERS contribution totaled approximately , 12, compared to a contribution in fiscal year 2013 of$2,1 55. See note 11 of the audited financial stateme is of the City attached as Appendix B for further information. The following table sets forth certain information about the funding status of IPERS that has been extracted from the IPERS CAFR. According to IPERS, as of the end of fiscal year 2014, there were approximately 346,413 total member articipating in IPERS including Issuer employees. Unfunded UAAL as a Actuarial %of Accrued Covered Liability Funded Payroll Fiscal Year Actuarial Value Actuarial Accrued (UAAL) Ratio Covered Payroll ([b]-[a]) Ended June 30 of Assets [a] ability[b] [b]—[a] [a]/[b] [c] /[c] 2011 22,575,30 , ,257,080,114 5,681,770,915 79.89% 6,574,872,719 86.42% 2012 23,530,094,46 29,446,197,486 5,916,103,025 79.91% 6,786,158,720 87.18% 2013 24,711,096,187 30,498,342,320 5,787,246,133 81.02% 6,880,131,134 84.12% 2014 26,460,428,085 32,004,456,088 5,544,028,003 82.68% 7,099,277,280 78.09% Source: IPERS Comprehensive Annual Financial Report(Fiscal Year 2014) When calculating the funding status of IPERS for fiscal year 2013, the following assumptions were used: (1) the amortization period for the total unfunded actuarial liability is 30 years (which is consistent with the maximum acceptable amortization period set forth by the Governmental Accounting Standards Board ("GASB') in GASB Statement No. 25); (2) the rate of return on investments is assumed to be 7.5%; (3) salaries are projected to increase 4.0-17%for IPERS, depending on years of service; and (4) the rate of inflation is assumed to be 3.25%for prices and 4.0%for wages. Bond Counsel, the City, and the Financial Advisor undertake no responsibility for and make no representations as to the accuracy or completeness of the information available from the IPERS discussed above or included on the IPERS website, including, but not limited to, updates of such information on th to Auditor's website or links to other Internet sites accessed through the IPERS website. Consistent with Iowa Code section 509A.13, the Issuer offers post-retirement health and dental benefits ("OPEB") to all full-time employees of the Issuer who retire before attainin k 65. The group health insurance plan provided to full-time Issuer employees allows retirees to continue medic erage until they reach age 65. Although retirees pay 100% of the "cost of coverage", the pre-age 65 grou irees is grouped with the active employees when determining the cost of coverage. The computation cr implicit rate subsidy that would not exist if the cost of the coverage for this group (pre-age 65 retirees)was co separately and paid 100%by that group. As described in its audited financial statements, as of June 30, 2014, t ity has an ud actuarial accrued liability relating to its OPEB in an amount of$5,720,577. The Issuer's end of year (as of Ju 0, 2014) net OPEB obligation is $3,760,615. See note 10 of the audited financial statements of the City attached as Appendix B for further information on OPEB obligations of the City. In addition, the City contributes to the Municip 1 Fire and Police Retirement System of Iowa (the "N PRSP), a benefit plan administered by a Board of Trustees. MFPRSI provides retirement, disability and death benefits that are established by State statute to plan members and beneficiaries. Plan members are required to contribute 9.40%of their earnable compensation and the City's contribution rate is 30.12% of earnable compensation. The City's contributions to the Plan for the years ended June 30, 2014, 2013, and 2012, were $3,906,483, $3,334,793 and $3,177,159, respectively,which met the required minimur ontribution for each year. UNION CONTRACT S City empl are represente the follo in its: Bargaining Unit Unit Members Contract Expiration Date Teamsters Local Union No 421 115 June 30, 2017 Teamsters Local Union No 421 Bus Operators 60 June 30, 2017 Dubuque Professional Firefighters Association 79 June 30, 2017 Dubuque Police Protective Association 12 85 June 30, 2016 International Union of Operating Engineers 65 June 30, 2017 1 2 Currently under negotiation. 27 INSURANCE The City's insurance coverage is as follows: Tyne of Insurance Limits General Liability $15,000,000 Automobile Liability 15,000,000 Public Officials 15,000,000 Police Professional Liability 15,000,000 Boiler&Machinery 25,000,000 Property Blanket 516,874,738 Employees Crime Policy 1,000,000 Airport Commission 5,000,000 Airport Liability 20,000,00 28 GENERAL INFORMATION LOCATION AND TRANSPORTATION The City is located in northeast Iowa and serves as the county seat for Dubuque County. The City, with a 2010 Census population of 57,532, has a land area of 31.6 square miles. Annexation activity in recent years has been voluntary with over 760 acres annexed in the past five years. The City lies at the intersection of Highways 61/151 and 20. The City is located approximately 22 miles southwest of Platteville, Wisconsin; 92 miles southwest of Madison, Wisconsin; 84 miles northeast of Iowa City, Iowa; 65 miles north of the Quad Cities (Rock Island and Moline,Illinois and Bettendorf and Davenport, Iowa); 175 miles west of Chicago, Illinois and 185 miles northeast of Des Moines. Dubuque Regional Airport provides jet service to Chicago viao�merican Airlines. Railroad service to the City is provided by the Iowa, Chicago & Eastern Railroad Corp, Canadian NationaFIllinois Central, and Burlington Northern Santa Fe Railroad Company (BNSF), as w 1 as bus service being provided by Greyhound and Burlington Trailways. LARGER EMPLOYERS A representative list of larger employers and employees City is as follows: Approximate#of Employer Tvpe of Business Employees John Deere Dubuque Works Man urer, Construction and Forestry Equipment 2,400 Dubuque Community School District Education,Pre-K to 12 1,946 Mercy Medical Center Hospital Services 1,313 University of Wisconsin-Platteville Education 1,105 Medical Associates Clinic,P.C. Health Servi 1,027 UnityPoint Health-Finley Hospital Hospital Servi 859 The City of Dubuque Public Service 702 IBM Corp. Technology Servi es 625 Sedgwick Claims/Benefits Management and Processing 550 Diamond Jo Casino Amusement/Entertainment/Attractions 510 Western Dubuque School District Education 501 Northeast Ioya Community College Education 500 Dubuque CountyNAu blic Service 472 Cottingham &Butlerealth Care,Insurance Agencies,Brokerages, and Third Party 460 dmin tors Prudential Retirementnanci450 Mystique Casinomusem444 Flexsteel Industriesanufacturer,Upholstered Furniture 433 AY McDonald Manufacturing anufacturer,Waterworks and Gas Products 402 Company McKesson Health Care Products&Services 400 Medline Industries,Inc. Health Care Products 400 Loras College Education 394 Hartig Drug Retail Drug Stores,Home Health Care Services,Long Tenn 393 Care Services,Pharmacy Benefit Management Services Holy Family Catholic Schools Education,Pre-K to 12 381 Mi-T-M Corporation Manufacturer,Industrial equipment 380 American Trust&Savings Bank Financial Services 374 Nordstrom Distribution center, fashion specialty retailer 370 University of Dubuque Education 363 McGraw-Hill Higher Education Higher Education Content 350 Dupaco Community Credit Union Financial Services 332 29 Source: Greater Dubuque Development Corporation,the City. 30 BUILDING PERMITS13 City officials report the following construction activity as of January 31, 2016. Permits for the City are reported on a calendar basis. Fiscal Year Singk Multi-Family Commercial Total Total Valuation 2011-12 97 8 14 4,183 224,053,472 2012-13 20 3 2 464 16,898,273 2013-14 65 0 11 1,095 88,105,521 2014-15 77 0 12 1,456 113,132,353 2015-16 45 0 12 830 41,916,163 44 US CENSUS DATA 1980 US Ce 62,374 1990 US Cen 57,546 2000 US Census 57,68 2010 US Census 57 Source:U.S. Census Bureau website. UNEMPLOYMENT RATES dar City Dubuque Sta Aver Dubu u Coun owa15 2011 5.3% 5.4% 8% 2012 4.6% 4.7% 5.2% 1 0 % 4.6% 2014 4. /0 4.4% Source: Io kforce Developme er " Totals include single family, multi-family, commercial/industrial, remodeling, roofmg, siding, decks, additions and other miscellaneous residential and commercial permits. "Not seasonally adjusted. 15 Seasonally adjusted. 31 EDUCATION Public education to the City is provided by the Dubuque Community School District, with certified enrollment for the 2015-2016 school year of 10,588. The Dubuque School District has two high schools, an alternative high school, three middle schools and thirteen elementary schools. The Archdiocese of Dubuque operates four Catholic elementary facilities, one middle school and one high school within the City. Higher education opportunities within the County include Loras College, Clarke University, University of Dubuque, and Northeast Iowa Community College, with local facilities in downtown Dubuque and Peosta(15 minutes west of Dubuque on Highway 20). FINANCIAL STATEMENTS The City's INDEPENDENT AUDITOR'S REPORTS for the fiscal year ended June 30, 2015 is reproduced in APPENDIX B. The City's certified public accountant has not consented to distribution of the audited financial statements and has not undertaken added review of their presentation. Further information regarding financial performance and copies of the City's prior Indepe Auditor's Reports may be obtained from the City's Financial Advisor,Independent Public Advisors, LLC. 32 APPENDIX A: FORM OF LEGAL OPINIONS APPENDIX B: JUNE 30, INDEPEND T AUDITOR'S REPORTS APPENDIX C: FORM O ONT ING DISCLOSURE CERTIFICATE (To be published on or before March 1, 2016) NOTICE OF BOND SALE Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Dubuque, State of Iowa, hereafter described, must be received at the office of the Finance Director, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001; Telephone: 563-589-4100 (the "Issuer")before 11:00 A.M., on the 7th day of March, 2016. 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. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION BONDS, SERIES 2016A, in the amount of $2,830,000*,to be dated April 4, 2016, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016B, In the amount of$11,505,000*, to be dated April 4, 2016, and GENERAL OBLIGATION BONDS, SERIES 2016C, in the amount of$4,155,000*, to be dated April 4, 2016 (the "Bonds") *Subject to principal adjustment pursuant to official Terms of Offering. Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods: • Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001. • Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001. The bids must be submitted through the PARITY® competitive bidding system. • Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001 (facsimile number: 563-589-0890) and/or the City's Municipal Advisor, Independent Public Advisors, LLC, 8805 Chambery Blvd., Suite 300 #114 Johnston, Iowa, 50131 (facsimile number: 515-259-8193). Electronic facsimile bids will be treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed,the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic intemet bids will be accessed and announced. Sale and Award: The sale and award of the Bonds will be held at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001 at a meeting of the City Council on the above date at 6:30 P.M. 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, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001; Telephone: 563-589-4100 orthe Issuer's Municipal Advisor, Independent Public Advisors, LLC, 8805 Chambery Blvd., Suite 300 #114, Johnston, Iowa, 50131; Telephone : 515-259-8193. 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: The 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, State of Iowa. City Clerk, City of Dubuque, State of Iowa 01211036-1\10422-165 CERTIFICATE STATE OF IOWA ) SS COUNTY OF DUBUQUE I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of 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: February 19 , 2016. WITNESS my official signature this 26th day of February , 2016. City Cle City of Dubu Nie; ate of Iowa (SEAL) 01211038-1 \ 10422-165 CITY OF DUBUQUE, passed, the close of IOWA sealed bids will be. NOTICE OF BOND I announced. Sealed SALE bids will then be Time and: Place of publicly opened and Sealed Bids: Bids for _announced ..,;Finally, the sale of Bonds of the electronic Internet bids City of Dubuque, State will be accessed and of Iowa, hereafter announced. described, must be Sale: and Award: The received at the office sale and award of the of the Finance Director, Bonds will be held, at City Hall, 50 'W. 13th the City Hall, 50 W. Street, Dubuque, Iowa, 13th Street, Dubuque, 52001; Telephone: 563-1 Iowa - 52001 at a' 589-4100 (the "Issuer.") meeting of the City before 11:00 A.M., on Council on the above the 7th day of March, date at 6:30 P.M. 2016. The bids will then Official Statement: I be publicly opened and The Issuer has issued referred for action to an Official Statement the meeting of the City of information pertain Council in conformity , ing to the Bonds to be, with, the TERMS OF offered, including a OFFERING. statement of the Terms The Bonds: The of Offering :and an Bonds to be offered are Official Bid Form, the following: which is incorporated GENERAL OBLIGATION by reference as a part BONDS, SERIES 2016A, of this notice. The in the amount of Official Statement may $2,830,000*, to be be obtained by request dated April 4, 2016, , addressed to the City GENERAL OBLIGATION Clerk, City Hall, 50 W. REFUNDING BONDS, 13th" Street, Dubuque, SERIES 2016B, Iowa, 52001; Tele- I In the :amount of phone: 563-589-4100, or $11,505,000*, to be the Issuer's Municipal dated April 4, 2016, Advisor, Independent and " Public Advisors, LLC, GENERAL OBLIGATION 8805 Chambery Blvd., BONDS, SERIES 2016C, Suite 300 #114, in the ' amount of Johnston, Iowa, 50131; $4,155,000*, to be Telephone: - 515 -259 - dated April 4, 2016 8193. (the "Bonds") Terms of Offering: *Subject.. to principal All bids shall be in adjustment pursuant to , conformity with and official Terms ' of the sale shall be in Offering. I accord with the Terms Manner of Bidding: of Offering -as set forth Open bids will not be in the Official State received. Bids will be I meet• received in any of the Legal Opinion: The following methods: Bonds will be sold • Sealed Bidding: subject to the opinion Sealed bids may be of Ahlers & Cooney,' submitted' and will be P.C., Attorneys of Des I received at the office Moines, Iowa, as to the of the Finance Director legality and their at City Hall, 50'W. 13th opinion will be fur Street, Dubuque, Iowa, nished together with 52001. the printed Bonds • Electronic Internet without cost to the Bidding: Electronic purchaser and all bids Internet bids will be will be so conditioned. received at the office Except to the extent of the Finance Director necessary to issue at City Hall, 50 W. 13th their opinion as to the Street, Dubuque, Iowa, legality of the Bonds, 52001. The bids must the attorneys will not be submitted through examine or review or the PARITY() competi- express any opinion tive bidding system. with respect to the • Electronic Fac- accuracy or complete - simile Bidding: Elec- ness of documents, tronic facsimile bidsmaterials or state - will be received at the ,ments made or office of the Finance furnished in connec- Director at City Hall, 50 tion with , the sale, W. 13th Street, issuance or marketing Dubuque, Iowa, 52001 of the Bonds. (facsimile number: 563Rights'Reserved: 589-0890) and/or the The right is reserved to City's Municipal Advi- reject any or all bids, sor, Independent Pub- and to waive any lic Advisors, LLC, 8805 irregularities as deem - Chambery Blvd., Suite ed to interests o in .the e public. 300 #114 Johnston, orderf h the blic.y Iowa, 50131 (facsimile ByConnell the City of number: 515-259-8193). Dubuque, State of Electronic facsimile Iowa. bids will be treated as Kevin S. Firnstahl, sealed bids. City, Clerk, City. of Bids: After theion time for Consideration or Dubuque, State of Iowa receipt of bids has It 2/19 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: February 19, 2016, and for which the charge is $55.68. Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this.=,?ati, day of ! , 20 / otary Public in and for Dubuque County, Iowa. ITEMS TO INCLUDE ON AGENDA FOR FEBRUARY 15, 2016 CITY OF DUBUQUE, IOWA $2,830,000 (Dollar Amount Subject to Change) General Obligation Bonds, Series 2016A. Resolution directing the advertisement for sale and approving electronic bidding procedures and Official Statement. NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY. February 15, 2016 The City Council of the City of Dubuque, State of Iowa, met in r e g u 1 a r session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 P.M., on the above date. There were present Mayor Roy D. B u o l , in the chair, and the following named Council Members: Resnick, Rios Absent: 1 Council Member Connors introduced the following Resolution entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $2,830,000 (DOLLAR AMOUNT SUBJECT TO CHANGE) GENERAL OBLIGATION BONDS, SERIES 2016A, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL STATEMENT" and moved its adoption. Council Member Jones seconded the Resolution to adopt. The roll was called and the vote was, AYES: Del Toro, Lynch, Rios, Jones Connors, Resnick, Buol NAYS: Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 49-16 RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $2,830,000 (DOLLAR AMOUNT SUBJECT TO CHANGE) GENERAL OBLIGATION BONDS, SERIES 2016A, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL STATEMENT WHEREAS, the Issuer is in need of funds to pay costs of settlement of any part or all of the legal indebtedness of a city, whether evidenced by bonds, warrants, or judgments, or the funding or refunding of the same, whether or not such indebtedness was created for a purpose for which general obligation bonds might have been issued in the original instance, an essential corporate purpose, and it is deemed necessary and advisable that General Obligation Bonds, to the amount of not to exceed $3,000,000 be authorized for said purpose; and WHEREAS, pursuant to notice published as required by Section 384.25 of the Code of Iowa, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of the Bonds, and the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose; and WHEREAS, in conjunction with its Municipal Advisor, Independent Public Advisors, LLC, the City has caused a Preliminary Official Statement to be prepared outlining the details of the proposed sale of the Bonds; and WHEREAS, the Council has received information from its Municipal Advisor evaluating and recommending the procedure hereinafter described for electronic, facsimile and internet bidding to maintain the integrity and security of the competitive bidding process and to facilitate the delivery of bids by interested parties; and 2 WHEREAS, the Council deems it in the best interests of the City and the residents thereof to receive bids to purchase such Bonds by means of both sealed and electronic internet communication. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, STATE OF l0WA: Section 1. That the receipt of electronic bids by facsimile machine and through the Parity Competitive Bidding System described in the Notice of Sale and Official Statement are hereby found and determined to provide reasonable security and to maintain the integrity of the competitive bidding process, and to facilitate the delivery of bids by interested parties in connection with the offering at public sale. Section 2. That General Obligation Bonds, Series 2016A, of City of Dubuque, State of Iowa, in the amount of $2,830,000 (Dollar Amount Subject to Change), to be issued as referred to in the preamble of this Resolution, to be dated April 4, 2016, be offered for sale pursuant to the published advertisement. Section 3. That the preliminary Official Statement in the form presented to this meeting be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of the Securities and Exchange Commission, subject to such revisions, corrections or modifications as the Mayor and City Clerk, upon the advice of bond counsel and the City's Financial Advisor, shall determine to be appropriate, and is authorized to be distributed in connection with the. offering of the Bonds for sale. Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at least once, the last one of which shall be not less than four clear days nor more than twenty days before the date of the sale. Publication shall be made in the "Telegraph Herald", a legal newspaper, printed wholly in the English language, published within the county in which the Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter 75 of the Code of Iowa, and shall state that this Council, on the 7th day of March, 2016, at 6:30 P.M., will hold a meeting to receive and act upon bids for said Bonds, which bids were previously received and opened by City Officials at 11:00 A.M. on said date. PASSED AND APPROVED this 15th day of February, 2,P16. Mayor ATTEST: City Cl k CERTIFICATE STATE, OF IOWA ) ) SS COUNTY OF DUBUQUE ) I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the 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 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 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 the 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 the Council hereto affixed this 16th day of February 2016. City Clerk, City of a uue, State of Iowa (SEAL) 01211074-1\10422-165 ROLL CALL ORDER FOR MEETING OF February 15, 2016 Del Toro, Lynch, Rios, Jones, Connors, Resnick, Buol CITY OF DUBUQUE, IOWA CITY COUNCIL MEETING Historic Federal Building 350 W. 6th Street February 15, 2016 Council meetings are video streamed live and archived at www.cityofdubuque.org/media and on Dubuque's CityChannel on the Mediacom cable system at Channel 8 (analog) and 85.2 (digital). WORK SESSION 5:15 PM - Dubuque Convention and Visitors Bureau Staff from the Dubuque Convention and Visitors Bureau will conduct the annual work session with City Council REGULAR SESSION 6:30 PM PLEDGE OF ALLEGIANCE PRESENTATION(S) 1. Circles Award Presentation Dubuque NAACP to present the Dubuque Circles Initiative and the Crescent Community Health Center with the Thom Determan SCOPE (Standout Community Organization Pursuing Equity) Award. PROCLAMATION(S) 1. Rotary of Dubuque 100th Anniversary (February 18, 2016) 2. Rare Disease Day (February 29, 2016) CONSENT ITEMS The consent agenda items are considered to be routine and non -controversial and all consent items will be normally voted upon in a single motion without any separate discussion on a particular item. If you would like to discuss one of the Consent Items, please go to the microphone and be recognized by the Mayor and state the item you would like removed from the Consent Agenda for separate discussion and consideration. 1. Minutes and Reports Submitted City Council Proceedings of 2/1, 2/2, 2/3, 2/4, 2/8; 2/10; Community Development Advisory Commission of 1/20; Five Flags Civic Center Advisory Commission of 1/25; Housing Commission of 1/26; Historic Preservation Commission of 1/21; Investment Oversight Advisory Commission of 1/27; Library Board of Trustees Council Update of 1/28; Zoning Advisory Commission of 2/3; Zoning Board of Adjustment of 1/28; Proof of Publication for City Council Proceedings of 1/19 Pg. 1 Ahlers & Cooney, P.C. COONEY61 AHLERS Attorneys at Law 100 Court Avenue, Suite 600 0 R IN E Y 5 Des Moines, Iowa 50309-2231 Phone: 515-243-7611 Fax: 515-243-2149 www.ahlerslaw.com February 10, 2016 Via Email and UPS Overnight Deliver, Ms. Jenny Larson Budget Director 50 W. 13th Street Dubuque, Iowa 52001 R. Mark Cory 515.246.0378 rcory@ahlerslaw.com Re; City of Dubuque, Iowa - General Obligation Bonds, Series 2016A General Obligation Refunding Bonds, Series 2016B General Obligation Bonds, Series 2016C Dear Jenny: I am enclosing the following proceedings to cover the advertisement for sale of General Obligation Bonds, as well as approving the Preliminary Official Statement and approving electronic bidding procedures for the sale. The resolution directing the advertisement of Bonds for sale includes the form of notice of sale. We have enclosed a copy of the procedure to be completed as the original and certified back to our office following the Council's action. The Cleric has been authorized to select a date for sale and to publish the Notice of Bond Sale, form of which is enclosed. In choosing a date for the sale, be sure that the Council members will be available to meet and that you have sufficient time to publish the notice. Publication Requirement --Notice of Bond Sale, The Notice of Bond Sale must be published at least one time in a newspaper published in the County where the Bonds are offered for sale. The Bond sale may be held at any time; but not less than four clear days nor more than twenty days following the date of the last publication. An extra copy of the notice is enclosed for use by the newspaper. (The enclosed certificate covering the publication of the notice should be returned promptly together with a copy of the LZ published notice so we can proof the publication.) The Notice of Sale includes language to permit the use of electronic bidding. You should have Independent Public Advisors LLC's recommendation that electronic bidding procedures be utilized for this Bond sale. Based upon this recommendation, the Iowa Code requires that the WISHARD & BAILY - 1888; GUERNSEY & BAILY - 1893; GAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER, AHLERS & COONEY - 1950; AHLERS, COONEY, DORWEILER, ALL13FE, HAYNIE & SMITH - 1974; AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEF, P.C. - 1990 February 10, 2016 Page 2 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.. This Resolution also approves the Official Statement and authorizes its distribution with respect to the above -referenced issue. Independent Public Advisors, LLC has prepared a draft of the preliminary Official Statement for the City. You should give this to the Council, and have provided comments to Independent Public Advisors. on behalf of the City for the final POS. If that has not been done prior to the meeting, then the Official Statement should not be approved and the Resolution will need to be modified. You should be aware that the preparation of the Official Statement is subject to Federal Securities Law regulation, and should be certain that any facts and representations contained in the Official Statement are both accounts in all material respects and not omitting any information material to the City's financial conditions, to and including the date of the delivery of the above - referenced Bonds. In the near future, we will send proceedings for the receipt of bids and award of sale. Please let me know if you have any questions. Ve R. FOR THE FIRM RMC:csm Enclosures cc: Ken TeKippe, Finance Director (via e-mail w/enc.) Kevin Firnstahl, City Cleric (via e-mail w/enc.) Tionna Pooler (via e-mail w/enc.) 01212134-1\10422-165 IMPORTANT INFORMATION 1. The attached agenda item(s) must be included in your Agenda for this meeting, and the Agenda must be posted on a bulletin board or other prominent place easily assessable to the public and clearly designated for that purpose at the principal office of the body holding the meeting. If no such office exists, the notice must be posted at the building in which the meeting is to be held. 2. If you do not have a bulletin board designated as above mentioned, so designate one and establish a uniform policy of posting your notices of meeting and tentative agenda. 3. Notice and tentative agenda must be posted at least 24 hours prior to the commencement of the meeting. 4. The notice must be signed by the Clerk or Secretary of the governmental body. NEWSPAPER'S COPY 4 PUBLISH PER LETTER OF INSTRUCTION (To be published on or before March 1, 2016) NOTICE OF BOND SALE Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Dubuque, State of Iowa, hereafter described, must be received at the office of the Finance Director, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001; Telephone: 563-589-4100 (the "Issuer") before 11:00 A.M., on the 7th day of March, 2016. 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. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION BONDS, SERIES 2016A, in the amount of $2,830,000*, to be dated April 4, 2016, GENERAL OBLIGATION REFUNDING BONDS, SERIES 201613, In the amount of $11,505,000*, to be dated April 4, 2016, and GENERAL OBLIGATION BONDS, SERIES 2016C, in the amount of $4,155,000*, to be dated April 4, 2016 (the "Bonds") *Subject to principal adjustment pursuant to official Terms of Offering. Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods: Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001. Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001. The bids must be submitted through the PARITY® competitive bidding system. Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001 (facsimile number: 563-589-0890) and/or the City's Municipal Advisor, Independent Public Advisors, LLC, 8805 Chambery Blvd., Suite 300 #114 Johnston, Iowa, 50131 (facsimile number: 515-259-8193). Electronic facsimile bids will be treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic internet bids will be accessed and announced. Sale and Award: The sale and award of the Bonds will be held at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001 at a meeting of the City Council on the above date at 6:30 P.M. 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, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001; Telephone: 563-589-4100 or the Issuer's Municipal Advisor, Independent Public Advisors, LLC, 8805 Chambery Blvd., Suite 300 #114, Johnston, Iowa, 50131; Telephone: 515-259-8193. 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: The 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, State of Iowa. City Cler c, ity of Dubuque, tate of Iowa 01211036-1\10422-165 CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF DUBUQUE ) I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of 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: February 19 _ 2016. WITNESS my official signature this day of , 2016. City Clerk, City of Dubuque, State of Iowa (SEAL) 01211038-1\10422-165 N b,� t d u.a`mti ITEMS TO INCLUDE ON AGENDA FOR FEBRUARY 15, 2016 CITY OF DUBUQUE, IOWA $4,155,000 (Dollar Amount Subject to Change) General Obligation Bonds, Series 2016C. Resolution directing the advertisement for sale and approving electronic bidding procedures and Official Statement. NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY. February 15, 2016 The City Council of the City of Dubuque, State of Iowa, met in r e q u 1 a r session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 P:M., on the above date. There were present Mayor Roy D. Buol , in the chair, and the following named Council Members: Resnick, Rios Absent: 1 Council Member Connors introduced the following Resolution entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $4,155,000 (DOLLAR AMOUNT SUBJECT TO CHANGE) GENERAL OBLIGATION BONDS, SERIES 2016C, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL STATEMENT" and moved its adoption. Council Member Jones seconded the Resolution to adopt. The roll was called and the vote was, AYES: Del Toro, Lynch Rios, Jones Connors, Resnick, Buol NAYS: Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 51-16 RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $4,155,000 (DOLLAR AMOUNT SUBJECT TO CHANGE) GENERAL OBLIGATION BONDS, SERIES 2016C, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL STATEMENT WHEREAS, the Issuer is in need of funds to pay costs of. a) the opening, widening, extending, grading, and draining of the right-of-way of streets, highways, avenues, alleys and public grounds; b) the acquisition, construction, reconstruction, extension, improvement, and equipping of works and facilities useful for the collection, treatment, and disposal of sewage and industrial waste in a sanitary manner and for the collection and disposal of surface waters and streams; e) the reconstruction, extension and improvement of an airport owned or operated by the city; d) the acquisition, construction, reconstruction, improvement, repair, and equipping of waterworks, water mains, and extensions, and real and personal property, useful for providing potable water to residents of a city, 2 essential corporate purposes, and it is deemed necessary and advisable that General Obligation Bonds, to the amount of Not to Exceed $15,555,000 be authorized for said purposes; and WHEREAS, pursuant to notice published as required by Section 384.25 of the Code of Iowa, this Council has held a public meeting and hearing upon the proposal to. institute proceedings for the issuance of the Bonds, and the Council is therefore now authorized to proceed with the issuance of said Bonds for such purposes; and WHEREAS, the City is in need of funds to pay costs of improvement and equipping of the Federal Building and Ham House, general corporate purposes, and it is deemed necessary and advisable that General Obligation Bonds, to the amount of not to exceed $505,000 be authorized for said purposes; and WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000, and the Bonds for these purposes do not exceed $700,000; and WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute proceedings for the issuance of Bonds for general corporate purposes in the amounts as above set forth, and, no petition for referendum having been received, the Council is therefore now authorized to proceed with the issuance of said Bonds for such purposes; and WHEREAS, in conjunction with its Municipal Advisor, Independent Public. Advisors, LLC, the City has caused a Preliminary Official Statement to be prepared outlining the details of the proposed sale of the Bonds; and WHEREAS, the Council has received information from its Municipal Advisor evaluating and recommending the procedure hereinafter described for electronic, facsimile and internet bidding to maintain the integrity and security of the competitive bidding process and to facilitate the delivery of bids by interested parties; and WHEREAS, the Council deems it in the best interests of the City and the residents thereof to receive bids to purchase such Bonds by means of both sealed and electronic internet communication. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, STATE OF IOWA: Section 1. That the receipt of electronic bids by facsimile machine and through the Parity Competitive Bidding System described in the Notice of Sale and Official Statement are hereby found and determined to provide reasonable security and to maintain the 'integrity of the competitive bidding process, and to facilitate the delivery of bids by interested parties in connection with the offering at public sale. Section 2. That General Obligation Bonds, Series 2016C, of City of Dubuque, State of Iowa, in the amount of $4,155,000 (Dollar Amount Subject to Change), to be issued as referred 3 to in the preamble of this Resolution, to be dated April 4, 2016, be offered for sale pursuant to the published advertisement. Section 3. That the preliminary Official Statement in the form presented to this meeting be and -the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of the Securities and Exchange Commission, subject to such revisions, corrections or modifications as the Mayor and City Clerk, upon the advice of bond counsel and the City's Financial Advisor, shall determine to be appropriate, and is authorized to be distributed in connection with the offering of the Bonds for sale. Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at: least once, the last one of which shall be not less than four clear days nor more than twenty days before the date of the sale. Publication shall be made in the "Telegraph Herald", a legal newspaper, printed wholly in the English language, published within the county in which the Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter 75 of the Code of Iowa, and shall state that this Council, on the 7th day of March, 2016, at 6:30 P.M., will hold a meeting to receive and act upon bids for said Bonds, which bids were previously received and opened by City Officials at 11:00 A.M. on said date. PASSED AND APPROVED this 15th day of February, 20 ATTEST: City 1'er N 4 Mayor CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF DUBUQUE ) I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the 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 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 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 the 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 the Council hereto affixed thi 16 t h day of February 2016. City Clerk, C' „y of Dubuq e, St to of Iowa (SEAL) 01211074-1\1 0422-165 ROLL CALL ORDER FOR MEETING OF February 15, 2016 Del Toro, Lynch, Rios, Jones, Connors, Resnick, Buol CITY OF DUBUQUE, IOWA CITY COUNCIL MEETING Historic Federal Building 350 W. 6th Street February 15, 2016 Council meetings are video streamed live and archived at www.cityofdubuque.org/media and on Dubuque's CityChannel on the Mediacom cable system at Channel 8 (analog) and 85.2 (digital). WORK SESSION 1. 5:15 PM - Dubuque Convention and Visitors Bureau Staff from the Dubuque Convention and Visitors Bureau will conduct the annual work session with City Council. REGULAR SESSION 6:30 PM PLEDGE OF ALLEGIANCE PRESENTATION(S) 1. Circles Award Presentation Dubuque NAACP to present the Dubuque Circles Initiative and the Crescent Community Health Center with the Thom Determan SCOPE (Standout Community Organization Pursuing Equity) Award. PROCLAMATION(S) Rotary of Dubuque 100th Anniversary (February 18, 2016) 2. Rare Disease Day (February 29, 2016) CONSENT ITEMS The consent agenda items are considered to be routine and non -controversial and all consent items will be normally voted upon in a single motion without any separate discussion on a particular item. If you would like to discuss one of the Consent Items, please go to the microphone and be recognized by the Mayor and state the item you would like removed from the Consent Agenda for separate discussion and consideration. 1. Minutes and Reports Submitted City Council Proceedings of 2/1, 2/2, 2/3, 2/4, 2/8; 2/10; Community Development Advisory Commission of 1/20; Five Flags Civic Center Advisory Commission of 1/25; Housing Commission of 1/26; Historic Preservation Commission of 1/21; Investment Oversight Advisory Commission of 1/27; Library Board of Trustees Council Update of 1/28; Zoning Advisory Commission of 2/3; Zoning Board of Adjustment of 1/28; Proof of Publication for City Council Proceedings of 1/19 Pg. 1 Ahlers & Cooney, P.C. Attorneys at Law AHLERS COONEY 100 Court Avenue, Suite 600 A T T 0 R N E Y S Des Moines, Iowa 50309-2231 Phone: 515-243-7611 Fax: 515-243-2149 www.ahlerslaw.com R. Mark Cory 515.246.0378 rcory@ahlerslaw.com February 10, 2016 Via Email and UPS Overnight Deliveix Ms. Jenny Larson Budget Director 50 W. 13th Street Dubuque, Iowa 52001 Re: City of Dubuque, Iowa General Obligation Bonds, Series 2016A General Obligation Refunding Bonds, Series 2016B - General Obligation Bonds, Series 2016C Dear Jenny: I am enclosing the following proceedings to cover the advertisement for sale of General Obligation Bonds, as well as approving the Preliminary Official Statement and approving electronic bidding procedures for the sale. The resolution directing the advertisement of Bonds for sale includes the form of notice of sale. We have enclosed a copy of the procedure to be completed as the original and certified back to our office following the Council's action. The Clerk has been authorized to select a date for sale and to publish the Notice of Bond Sale, form of which is enclosed. In choosing a date for the sale, be sure that the Council members will be available to meet and that you have sufficient time to publish the notice. Publication Requirement --Notice of Bond Sale. The Notice of Bond Sale must be published at least one time in a newspaper published in the County where the Bonds are offered for sale. The Bond sale may be held at any time; but not less than four clear days nor more than twenty days following the date of the last publication. An extra copy of the notice is enclosed for use by the newspaper. (The enclosed certificate covering the publication of the notice should be returned promptly together with a copy of the published notice so we can proof the publication.) The Notice of Sale includes language to permit the use of electronic bidding. You should have Independent Public Advisors LLC's recommendation that electronic bidding procedures be utilized for this Bond sale. Based upon this recommendation, the Iowa Code requires that the wISHARO & BAILY - 1888; GUERNSEY & BAILY - 1893; BAILY & STIPP - 1901; STIPP, PERRY; BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER, AHLERS & COONEY - 1950; AHLERS, GOONEY, DORWEILER, ALLBEE, HAYNIE & SMITH - 1974; AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C. - 1990 February 10, 2016 Page 2 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. This Resolution also approves the Official Statement and authorizes its distribution with respect to the above -referenced issue. Independent Public Advisors, LLC has prepared a draft of the preliminary Official Statement for the City. You should give this to the Council, and have provided comments to Independent Public Advisors. on behalf of the City for the final POS. If that has not been done prior to the meeting, then the Official Statement should not be approved and the Resolution will need to be modified. You should be aware that the preparation of the Official Statement is subject to Federal Securities Law regulation, and should be certain that any facts and representations contained in the Official Statement are both accounts in all material respects and not omitting any information material to the City's financial conditions, to and including the date of the delivery of the above - referenced Bonds. In the near future, we will. send proceedings for the receipt of bids and award of sale. Please let me know if you have any questions. Ve U FOR THE FIRM RMC:csm Enclosures cc: Ken TeKippe, Finance Director (via e-mail w/enc.) Kevin Firnstahl, City Cleric (via e-mail w/enc.) Tionna Pooler (via e-mail w/enc.) 012 (2134-1\10422-165 IMPORTANT INFORMATION 1. The attached agenda item(s) must be included in your Agenda for this meeting, and the Agenda must be posted on a bulletin board or other prominent place easily assessable to the public and clearly designated for that purpose at the principal office of the body holding the meeting. If no such office exists, the notice must be posted at the building in which the meeting is to be held. 2. If you do not have a bulletin board designated as above mentioned, so designate one and establish a uniform policy of posting your notices of meeting and tentative agenda. 3. Notice and tentative agenda must be posted at least 24 hours prior to the commencement of the meeting. 4. The notice must be signed by the Clerk or Secretary of the governmental body. (To be published on or before March 1, 2016) NOTICE OF BOND SALE Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Dubuque, State of Iowa, hereafter described, must be received at the office of the Finance Director, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001; Telephone: 563-589-4100 (the "Issuer") before 11:00 A.M., on the 7th day of March, 2016. 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. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION BONDS, SERIES 2016A, in the amount of $2,830,000*, to be dated April 4, 2016, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016B, In the amount of $11,505,000*, to be dated April 4, 2016, and GENERAL OBLIGATION BONDS, SERIES 2016C, in the amount of $4,155,000*, to be dated April 4, 2016 (the "Bonds") *Subject to principal adjustment pursuant to official Terms of Offering. Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods: Sealed Bidding: Sealed bids may be submitted and'will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001. Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001. The bids must be submitted through the PARITYOO competitive bidding system. Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001 (facsimile number: 563-589-0890) and/or the City's Municipal Advisor, Independent Public Advisors, LLC, 8805 Chambery Blvd., Suite 300 #114 Johnston, Iowa, 50131 (facsimile number: 515-259-8193). Electronic facsimile bids will be treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic internet bids will be accessed and announced. Sale and Award: The sale and award of the Bonds will be held at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001 at a meeting of the City Council on the above date at 6:30 P.M. 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, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001; Telephone: 563-589-4100 or the Issuer's Municipal Advisor, Independent Public Advisors, LLC, 8805 Chambery Blvd., Suite 300 #114, Johnston, Iowa, 50131; Telephone: 515-259-8193. 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: The 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, State of Iowa. City Clerk, ity of Dubuque, tate of Iowa 01211036-1\10422-165 CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF DUBUQUE ) I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of 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: February 19 2016. WITNESS my official signature this day of 52016. City Clerk, City of Dubuque, State of Iowa (SEAL) 0121103 8-1 \10422-165 ITEMS TO INCLUDE ON AGENDA FOR FEBRUARY 15, 2016 CITY OF DUBUQUE, IOWA $11,505,000 (Dollar Amount Subject to Change) General Obligation Refunding fonds, Series 201613. Resolution directing the advertisement for sale and approving electronic bidding procedures and Official Statement. NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE CHAPTER 21 AND THE LOCAL RULES OF THE CITY. February 15, 2016 The City Council of the City of Dubuque, State of Iowa, met in r e g u 1 a r session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 P.M., on the above date. There were present Mayor Roy D. Buol , in the chair, and the following named Council Members: Resnick, Rios Absent: 1 Council Member Connors introduced the following Resolution entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $11,505,000 (DOLLAR AMOUNT SUBJECT TO CHANGE) GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016B, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL STATEMENT" and moved its adoption. Council Member Jones seconded the Resolution to adopt. The roll was called and the vote was, AYES: Del Toro, Lynch, Rios, Jones Connors, Resnick, Buol NAYS: Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 50-16 RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $11,505,000 (DOLLAR AMOUNT SUBJECT TO CHANGE) GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016B, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND OFFICIAL STATEMENT WHEREAS, the Issuer is in need of funds to pay costs of settlement, adjustment, renewing, or extension of any part or all of the legal indebtedness of a city, whether evidenced by bonds, warrants, or judgments, or the funding or refunding of the same, whether or not such. indebtedness was created for a purpose for which general obligation bonds might have been issued in the original instance, an essential corporate purpose, and it is deemed necessary and advisable that General Obligation Refunding Bonds, to the amount of not to exceed $15,555,000 be authorized for said purpose; and WHEREAS, pursuant to notice published as required by Section 384.25 of the Code of Iowa, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of the Bonds, and the Council is therefore now authorized to proceed with the issuance of said Bonds for such purpose; and WHEREAS, in conjunction with its Municipal Advisor, Independent Public Advisors, LLC, the City has caused a Preliminary Official Statement to be prepared outlining the details of the proposed sale of the Bonds; and WHEREAS, the Council has received information from its Municipal Advisor evaluating and recommending the procedure hereinafter described for electronic, facsimile and Internet 2 bidding to maintain the integrity and security of the competitive bidding process and to facilitate the delivery of bids by interested parties; and WHEREAS, the Council deems it in the best interests of the City and the residents thereof to receive bids to purchase such Bonds by means of both sealed and electronic internet communication. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, STATE OF IOWA: Section 1. That the receipt of electronic bids by facsimile machine and through the Parity Competitive Bidding System described in the Notice of Sale and Official Statement are hereby found and determined to provide reasonable security and to maintain the integrity of the competitive bidding process, and to facilitate the delivery of bids by interested parties in connection with the offering at public sale. Section 2. That General Obligation Refunding Bonds, Series 2016B, of City of Dubuque, State of Iowa, in the amount of $11,505,000 (Dollar Amount Subject to Change), to be issued as referred to in the preamble of this Resolution, to be dated April 4, 2016, be offered for sale pursuant to the published advertisement. Section 3. That the preliminary Official Statement in the form presented to this meeting be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of the Securities and Exchange Commission, subject to such revisions, corrections or modifications as the Mayor and City Clerk, upon the advice of bond counsel and the City's Financial Advisor, shall determine to be appropriate, and is authorized to be distributed in connection with the offering of the Bonds for sale. Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at least once, the last one of which shall be not less than four clear days nor more than twenty days before the date of the sale. Publication shall be made in the "Telegraph Herald a legal newspaper, printed wholly in the English language, published within the county in which the Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter 75 of the Code of Iowa, and shall state that this Council, on the.7th day of March, 2016, at 6:30 P.M., will hold a meeting to receive and act upon bids for said Bonds, which bids were previously received and opened by City Officials at 11:00 A.M. on said date. 3 PASSED AND APPROVED this 15th day of February, 2015. ATTEST: rd Mayor pl, CERTIFICATE STATE, OF IOWA ) ) SS COUNTY OF DUBUQUE ) I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the records of the City showing proceedings of the Council, and the same is a true and complete copy of the action taken by the Council with respect to the 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 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 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 the 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 the Council hereto affixed 16th day of February 2016. City Cler 'City of Dubuq ; State of Iowa (SEAL) 01211074-1\10422-165 ROLL CALL ORDER FOR MEETING OF February 15, 2016 Del Toro, Lynch, Rios, Jones, Connors, Resnick, Buol CITY OF DUBUQUE, IOWA CITY COUNCIL MEETING Historic Federal Building 350 W. 6th Street February 15, 2016 Council meetings are video streamed live and archived at www.cityofdubuque.org/media and on Dubuque's CityChannel on the Mediacom cable system at Channel 8 (analog) and 85.2 (digital). WORK SESSION 5:15 PM - Dubuque Convention and Visitors Bureau Staff from the Dubuque Convention and Visitors Bureau will conduct the annual work session with City Council. REGULAR SESSION 6:30 PM PLEDGE OF ALLEGIANCE PRESENTATION(S) 1. Circles Award Presentation Dubuque NAACP to present the Dubuque Circles Initiative and the Crescent Community Health Center with the Thom Determan SCOPE (Standout Community Organization Pursuing Equity) Award, PROCLAMATION(S) 1. Rotary of Dubuque 100th Anniversary (February 18, 2016) 2. Rare Disease Day (February 29, 2016) CONSENT ITEMS The consent agenda items are considered to be routine and non -controversial and all consent items will be normally voted upon in a single motion without any separate discussion on a particular item. If you would like to discuss one of the Consent Items, please go to the microphone and be recognized by the Mayor and state the item you would like removed from the Consent Agenda for separate discussion and consideration. 1. Minutes and Reports Submitted City Council Proceedings of 2/1, 2/2, 2/3, 2/4, 2/8; 2/10; Community Development Advisory Commission of 1/20; Five Flags Civic Center Advisory Commission of 1/25; Housing Commission of 1/26; Historic Preservation Commission of 1/21; Investment Oversight Advisory Commission of 1/27; Library Board of Trustees Council Update of 1/28; Zoning Advisory Commission of 2/3; Zoning Board of Adjustment of 1/28; Proof of Publication for City Council Proceedings of 1/19 Pg. 1 Ahlers & Cooney, P.C. /qnw' AHLERS COONEY Attorneys at Law K. 100 Court Avenue, Suite 600 R T T 0 R N E Y S Des Moines, Iowa 50309-2231 Phone: 515-243-7611 Fax: 515-243-2149 www.ahlerslaw.com R. Mark Cory 515.246.0378 rcory@ahlerslaw.com February 10, 2016 Via Email and UPS Overnight Deliver Ms. Jenny Larson Budget Director 50 W. 13th Street Dubuque, Iowa 52001 Re: City of Dubuque, Iowa General Obligation Bonds, Series 2016A General Obligation Refunding Bonds, Series 2016B General Obligation Bonds, Series 20160 Dear Jenny: I am enclosing the following proceedings to cover the advertisement for sale of General Obligation Bonds, as well as approving the Preliminary Official Statement and approving electronic bidding procedures for the sale. The resolution directing the advertisement of Bonds for sale includes the form of notice of sale. We have enclosed a copy of the procedure to be completed as the original and certified back to our office following the Council's action. The Clerk has been authorized to select a date for sale and to publish the Notice of Bond Sale, form of which is enclosed. In choosing a date for the sale, be sure that the Council members will be available to meet and that you have sufficient time to publish the notice. Publication Requirement --Notice of Bond Sale, The Notice of Bond Sale must be published at least one time in a newspaper published in the County where the Bonds are offered for sale. The Bond sale may be held at any time; but not less than four clear days nor more than twenty days following the date of the last publication. An extra copy of the notice is enclosed for use by the newspaper. (The enclosed certificate covering the publication of the notice should be returned promptly together with a copy of the published notice so we can proof the publication.) The Notice of Sale includes language to permit the use of electronic bidding. You should have Independent Public Advisors LLC's recommendation that electronic bidding procedures be utilized for this Bond sale. Based upon this recommendation, the Iowa Code requires that the wISHARD & BAILY - 1888; GUERNSEY & BAILY -- 1893; BAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINUER - 1914; BANNISTER, CARPENTER, AHLERS & COONEY - 1950; AHLERS, COONEY, DORWEILER, ALLBEE, HAYNIE & SNAITH - 1974; AHLERS, COONEY, DORWEILER; HAYNIE, SMITH & ALLBEE, P.C. - 1990 February 10, 2016 Page 2 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.. This Resolution also approves the Official Statement and authorizes its distribution with respect to the above -referenced issue. Independent Public Advisors, LLC has prepared a draft of the preliminary Official Statement for the City. You should give this to the Council, and have provided comments to Independent Public Advisors. on behalf of the City for the final POS. If that has not been done prior to the meeting, then the Official Statement should not be approved and the Resolution will need to be modified. You should be aware that the preparation of the Official Statement is subject to Federal Securities Law regulation, and should be certain that any facts and representations contained in the Official Statement are both accounts in all material respects and not omitting any information material to the City's financial conditions, to and including the date of the delivery of the above - referenced Bonds. In the near future, we will send proceedings for the receipt of bids and award of sale. Please let me know if you have any questions. Ve R. FOR THE FIRM RMC:csm Enclosures cc: Ken TeKippe, Finance Director (via e-mail w/enc Kevin Firnstahl, City Cleric (via e-mail w/enc.) Tionna Pooler (via e-mail w/enc.) 01212134-1U 0422-165 IMPORTANT INFORMATION 1. The attached agenda item(s) must be included in your Agenda for this meeting, and the Agenda must be posted on a bulletin board or other prominent place easily assessable to the public and clearly designated for that purpose at the principal office of the body holding the meeting. If no such office exists, the notice must be posted at the building in which the meeting is to be held. 2. If you do not have a bulletin board designated as above mentioned, so designate one and establish a uniform policy of posting your notices of meeting and tentative agenda. 3. Notice and tentative agenda must be posted at least 24 hours prior to the commencement of the meeting. 4. The notice must be signed by the Clerk or Secretary of the governmental. body. • (To be published on or before March 1, 2016) NOTICE OF BOND SALE Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Dubuque, State of Iowa, hereafter described, must be received at the office of the Finance Director, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001; Telephone: 563-589-4100 (the "Issuer") before 11:00 A.M., on the 7th day of March, 2016. 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. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION BONDS, SERIES 2016A, in the amount of $2,830,000*, to be dated April 4, 2016, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016B, In the amount of $11,505,000*, to be dated April 4, 2016, .n GENERAL OBLIGATION BONDS, SERIES 2016C, in the amount of $4,155,000*, to be dated April 4, 2016 (the "Bonds") *Subject to principal adjustment pursuant to official Terms of Offering Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods: Sealed Bidding: Sealed bids may be submitted and will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001. Electronic Internet Bidding: Electronic internet bids will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001. The bids must be submitted through the PARITYR competitive bidding system. Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the Finance Director at Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001 (facsimile number: 563-589-0890) and/or the City's Municipal Advisor, Independent Public Advisors, LLC, 8805 Chambery Blvd., Suite 300 #114 Johnston, Iowa, 50131 (facsimile number: 515-259-8193). Electronic facsimile bids will be treated as sealed bids. Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be announced. Sealed bids will then be publicly opened and announced. Finally, electronic internet bids will be accessed and announced. Sale and Award: The sale and award of the Bonds will be held at the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001 at a meeting of the City Council on the above date at 6:30 P.M. 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, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 52001; Telephone: 563-589-4100 or the Issuer's Municipal Advisor, Independent Public Advisors, LLC, 8805 Chambery Blvd., Suite 300 #114, Johnston, Iowa, 50131; Telephone : 515-259-8193. 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: The 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, State of Iowa. City Cler c, ity of Dubuque, tate of Iowa 01211036-1\10422-165 CERTIFICATE STATE OF IOWA ) ) SS COUNTY OF DUBUQUE ) I, the undersigned, do hereby certify that I am now and was at the times hereinafter mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of 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: February 19 , 2016. WITNESS my official signature this day of , 2016. City Clerk, City of Dubuque, State of Iowa (SEAL) 0 1211038-1\10422-165