HomeMy WebLinkAbout2018-04-16-J01K Bond - GO Series 2018A - Advertise SaleAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: April 16, 2018
AGENDA ITEM:Consideration of approval of a resolution directing the advertisement for
sale and approving electronic bidding procedures and Official Statement
[$19,775,000 General Obligation Bonds, Series 2018A]
FORMAT:Consent Agenda
SYNOPSIS INCLUDING PRO & CON: The proposed resolution sets May 21, 2018 as the
date for receipt of bids and consideration of sale.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:$19,775,000
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Preliminary Official Statement, Series 2018A
PREPARED BY:Becky Schuett
REVIEWED BY:
J1K
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RESOLUTION 18-
RESOLUTION DIRECTING THE ADVERTISEMENT FOR
SALE OF $19,775,000 GENERAL OBLIGATION BONDS,
SERIES 2018A, AND APPROVING ELECTRONIC BIDDING
PROCEDURES AND OFFICIAL STATEMENT
WHEREAS, the Issuer is in need of funds to pay costs of aiding in the planning,
undertaking and carrying out of urban renewal projects under the authority of Iowa Code chapter
403 and the Urban Renewal Plan for the Gateway Economic Development Urban Renewal Area,
including street, streetscape, lighting, traffic signals, street signage, and trail improvements for
the Alice's Road extension and developer incentives and improvements within the Kettlestone
Master Plan, with related site improvements, essential corporate urban renewal purpose
project(s), and it is deemed necessary and advisable that the City issue General Obligation Urban
Renewal Bonds, for such purpose(s) to the amount of not to exceed $13,200,000 as authorized by
Sections 384.25 and 403.12 of the Code of Iowa; and
WHEREAS, pursuant to notice published as required by Sections 384.25 and 403.12 this
Council has held a public meeting and hearing upon the proposal to institute proceedings for the
issuance of said Bonds, and all objections, if any, to such Council action made by any resident or
property owner of the City were received and considered by the Council; and no petition having
been filed, it is the decision of the Council that additional action be taken for the issuance of said
Bonds for such purpose(s), and that such action is considered to be in the best interests of the
City and the residents thereof; and
WHEREAS, the Issuer is in need of funds to pay costs of rehabilitation and improvement
of city parks already owned, including facilities, equipment and improvements commonly found
in parks for Fox Creek phase II, and the dog park; trails and sidewalk paving improvements; and
equipping the fire department, essential corporate purpose(s), and it is deemed necessary and
advisable that General Obligation Bonds, to the amount of not to exceed $4,500,000 be
authorized for said purpose(s); 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(s); and
WHEREAS, the City is in need of funds to pay costs of acquisition, construction,
improvement and equipping recreation grounds, and new parks, including acquisition of real
estate therefor, related to the new Westown Meadows park, general corporate purpose(s), and it
is deemed necessary and advisable that General Obligation Bonds, to the amount of not to
exceed $700,000 be authorized for said purpose(s); 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
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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 purpose(s) 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 purpose(s); and
WHEREAS, the City is in need of funds to pay costs of acquisition, construction,
improvement and equipping recreation grounds, and new parks, including acquisition of real
estate therefor, related to the new Alice’s Historic park, general corporate purpose(s), and it is
deemed necessary and advisable that General Obligation Bonds, to the amount of not to exceed
$700,000 be authorized for said purpose(s); 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 purpose(s) 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 purpose(s); and
WHEREAS, the City is in need of funds to pay costs of acquisition, construction,
improvement and equipping recreation grounds, and new parks, including acquisition of real
estate therefor, related to the new Glynn Village park, general corporate purpose(s), and it is
deemed necessary and advisable that General Obligation Bonds, to the amount of not to exceed
$700,000 be authorized for said purpose(s); 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 purpose(s) 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 purpose(s); and
WHEREAS, the City is in need of funds to pay costs of acquisition, construction,
improvement and equipping city golf course, including expanding water source for irrigation,
general corporate purpose(s), and it is deemed necessary and advisable that General Obligation
Bonds, to the amount of not to exceed $200,000 be authorized for said purpose(s); 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 purpose(s) in the amounts as above
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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 purpose(s); and
WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is hereby found and
determined that the various general obligation bonds authorized as hereinabove described shall
be combined for the purpose of issuance in a single issue of $19,775,000 General Obligation
Bonds as hereinafter set forth; and
WHEREAS, in conjunction with its Municipal Advisor, PFM Financial 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 WAUKEE, 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 2018A, of City of Waukee, State of
Iowa, in the amount of $19,775,000, to be issued as referred to in the preamble of this
Resolution, to be dated June 19, 2018, 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 Municipal 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 a legal newspaper, printed wholly in the
English language, published within the city in which the Bonds are to be offered for sale or an
adjacent city. The notice is given pursuant to Chapter 75 of the Code of Iowa, and shall state
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that this Council, on the 21st day of May, 2018, at 5:30 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 10:00 A.M. on said date. The notice shall be in substantially the following form:
(To be published between May 1-May 15, 2018 (dates inclusive))
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Waukee, State
of Iowa, hereafter described, must be received at the office of the City Clerk, Council Chambers,
City Hall, 230 West Hickman Road, Waukee, Iowa 50263; Telephone: 515-978-7904 (the
"Issuer") before 10:00 A.M., on the 21st day of May, 2018. 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 2018A, in the
amount of $19,775,000*, to be dated June 19, 2018
WATER REVENUE BONDS, SERIES 2018B, in the amount of
$3,410,000*, to be dated June 19, 2018
SEWER REVENUE BONDS, SERIES 2018C, in the amount of
$3,565,000*, to be dated June 19, 2018
(collectively 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 City Clerk at City Hall, 230 West Hickman Road, Waukee, Iowa 50263.
Electronic Internet Bidding: Electronic internet bids will be received at the office
of the City Clerk at City Hall, 230 West Hickman Road, Waukee, Iowa 50263.
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 City Clerk at City Hall, 230 West Hickman Road, Waukee, Iowa
50263 (facsimile number: 515-987-1845) or the City's Municipal Advisor, PFM
Financial Advisors LLC, Des Moines, Iowa (facsimile number: 515-243-6994).
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 Council Chambers,
City Hall, 230 West Hickman Road, Waukee, Iowa at a meeting of the City Council on the above
date at 5:30 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, Council Chambers, City Hall, 230 West
Hickman Road, Waukee, Iowa 50263; Telephone: 515-978-7904 or the Issuer's
Municipal Advisor, PFM Financial Advisors LLC, 801 Grand Avenue, Suite 3300, Des Moines,
Iowa, 50309, Telephone: 515-243-2600.
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accordance 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 Waukee, State of Iowa.
Rebecca D. Schuett
City Clerk, City of Waukee, State of Iowa
(End of Notice)
PASSED AND APPROVED this 16th day of April, 2018.
__________________________________
Mayor
ATTEST:
__________________________________
City Clerk
This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without notice. The Bonds may not be sold nor may offers to buy be accepted prior to the time the Preliminary Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction. PRELIMINARY OFFICIAL STATEMENT DATED APRIL 16, 2018
New Issue Rating: Application made to Moody’s Investors Service
Assuming compliance with certain covenants, in the opinion of Ahlers & Cooney, P.C., Bond Counsel, under present law and
assuming continued compliance with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), interest on
the Bonds is excludable from gross income for federal income tax purposes. Interest on the Bonds is not an item of tax preference
for federal alternative minimum tax purposes, but is included in the adjusted current earnings of corporations for purposes of the
federal alternative minimum tax applicable to taxable years beginning before January 1, 2018. Interest on the Bonds is NOT
exempt from present Iowa income taxes. The Bonds will NOT be designated as “qualified tax-exempt obligations”. See “TAX
MATTERS” herein for a more detailed discussion.
CITY OF WAUKEE, IOWA
$19,775,000* General Obligation Bonds, Series 2018A
BIDS RECEIVED: Monday, May 21, 2018, 10:00 A.M., Central Time
AWARD: Monday, May 21, 2018, 5:30 P.M., Central Time
Dated: Date of Delivery (June 19, 2018) Principal Due: June 1, as shown inside front cover
The $19,775,000* General Obligation Bonds, Series 2018A (the “Bonds”) are being issued pursuant to Division III of
Chapter 384 and 403 of the Code of Iowa and a resolution to be adopted by the City Council of the City of Waukee,
Iowa (the “City”). The Bonds are being issued for various new money capital project and equipment purposes. See
“AUTHORITY AND PURPOSE” section herein for more detail regarding the Bonds project descriptions. The Bonds
are general obligations of the City for which the City will pledge its power of levy direct ad valorem taxes against all
taxable property within the City without limitation as to rate or amount to the repayment of the Bonds.
The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of
Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the
Bonds. Individual purchases may be made in book-entry-only form, in the principal amount of $5,000 and integral
multiples thereof. The Purchaser will not receive certificates representing their interest in the Bonds purchased.
Principal of the Bonds, payable annually on each June 1, beginning June 1, 2019, and interest on the Bonds, payable
initially on December 1, 2018 and thereafter on each June 1 and December 1, will be paid to DTC by the City’s
Registrar/Paying Agent, Bankers Trust Company, Des Moines, Iowa (the “Registrar”). DTC will in turn remit such
principal and interest to its participants for subsequent disbursements to the beneficial owners of the Bonds as described
herein. Interest and principal shall be paid to the registered holder of a bond as shown on the records of ownership
maintained by the Registrar as of the 15th day of the month preceding the interest payment date (the “Record Date”).
THE BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER
MINIMUM BID:
$19,549,480
GOOD FAITH DEPOSIT: Required of Purchaser Only
TAX MATTERS: Federal: Tax-Exempt
State: Taxable
See “TAX MATTERS” for more details
The Bonds are offered, subject to prior sale, withdrawal or modification, when, as, and if issued subject to the legal
opinion of Ahlers & Cooney, P.C., Bond Counsel, Des Moines Iowa, to be furnished upon delivery of the Bonds. It is
expected the Bonds will be available for delivery on or about June 19, 2018. This Preliminary Official Statement will
be further supplemented by offering prices, interest rates, selling compensation, aggregate principal amount, principal
amount per maturity, anticipated delivery date, and underwriter, together with any other information required by law,
and shall constitute a final Official Statement of the City with respect to the Bonds, as defined in Rule 15c2-12.
*Preliminary; subject to change.
CITY OF WAUKEE, IOWA
$19,775,000* General Obligation Bonds, Series 2018A
MATURITY: The Bonds will mature June 1 in the years and amounts as follows:
Year Amount* Year Amount*
2019 $845,000 2029 $1,110,000
2020 850,000 2030 1,150,000
2021 875,000 2031 1,190,000
2022 900,000 2032 1,230,000
2023 920,000 2033 1,280,000
2024 945,000 2034 815,000
2025 975,000 2035 845,000
2026 1,005,000 2036 880,000
2027 1,035,000 2037 910,000
2028 1,070,000 2038 945,000
* PRINCIPAL
ADJUSTMENT: Preliminary; subject to change. The City reserves the right to increase or decrease the
aggregate principal amount of the Bonds and to increase or decrease each scheduled maturity
thereof after the determination of the successful bidder. The City may increase or decrease
each maturity in increments of $5,000 but the total amount to be issued will not exceed
$20,000,000. Interest rates specified by the successful bidder for each maturity will not
change. Final adjustments shall be in the sole discretion of the City.
The dollar amount of the purchase price proposed by the successful bidder will be changed if
the aggregate principal amount of the Bonds is adjusted as described above. Any change in
the principal amount of any maturity of the Bonds will be made while maintaining, as closely
as possible, the successful bidder's net compensation, calculated as a percentage of bond
principal. The successful bidder may not withdraw or modify its bid as a result of any post-
bid adjustment. Any adjustment shall be conclusive, and shall be binding upon the successful
bidder.
INTEREST: Interest on the Bonds will be payable on December 1, 2018 and semiannually thereafter.
REDEMPTION: The Bonds due after June 1, 2026 will be subject to call for prior redemption on said date or
on any date thereafter 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 Bonds to be redeemed at the address shown 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 NOTICE OF BOND SALE and 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 to City staff as well as to prospective
bidders for an objective review of its disclosure. Comments, omissions or inaccuracies must be submitted to PFM
Financial Advisors LLC (the “Municipal Advisor”) at least two business days prior to the sale. Requests for
additional information or corrections in the Preliminary Official Statement received on or before this date will not be
considered a qualification of a bid received. If there are any changes, corrections or additions to the Preliminary
Official Statement, prospective bidders will be informed by an addendum at least one business day prior to the sale.
Final Official Statement: Upon award of sale of the Bonds, the legislative body will 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 syndicate
manager (the “Syndicate Manager”) and syndicate members. Copies of the final Official Statement will be delivered
to the Syndicate Manager(s) within seven business days following the bid acceptance.
REPRESENTATIONS
No dealer, broker, salesman or other person has been authorized by the City, the Municipal Advisor or the underwriter
to give any information or to make any representations other than those contained in this Preliminary Official
Statement or the final Official Statement and, if given or made, such information and representations must not be
relied upon as having been authorized by the City, the Municipal Advisor or the underwriter. This Preliminary
Official Statement or the final Official Statement does not constitute an offer to sell or solicitation of an offer to buy,
nor shall there by any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to
make such offer, solicitation or sale. The information set forth herein has been obtained from the City and other
sources which are believed to be reliable, but it is not to be construed as a representation by the Municipal Advisor or
underwriter. The information and expressions of opinion herein are subject to change without notice, and neither the
delivery of this Preliminary Official Statement or the final Official Statement, nor any sale made thereafter shall,
under any circumstances, create any implication there has been no change in the affairs of the City or in any other
information contained herein, since the date hereof.
This Preliminary Official Statement and any addenda thereto were prepared relying on information from the City and
other sources, which are believed to be reliable.
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 the Municipal Advisor, payable entirely by the City, is contingent upon the sale of the issues.
CITY OF WAUKEE, IOWA
City Council
William Peard Mayor
Charlie Bottenberg Council Member/Mayor Pro Tem
Anna Bergman Council Member
Courtney Clarke Council Member
Shelly Hughes Council Member
Larry Lyon Council Member
Administration
Tim Moerman, City Administrator
Rebecca Schuett, City Clerk
Linda Burkhart, Finance Director
City Attorney
Brick, Gentry, Bowers, Swartz, Stoltze, Schuling & Levis, P.C.
Steven P. Brick
Des Moines, Iowa
Bond Counsel
Ahlers & Cooney, P.C.
Des Moines, Iowa
Municipal Advisor
PFM Financial Advisors LLC
Des Moines, Iowa
TABLE OF CONTENTS
NOTICE OF BOND SALE ................................................................................................................................. i
TERMS OF OFFERING .................................................................................................................................... ii
SCHEDULE OF BOND YEARS ...................................................................................................................... ix
EXHIBIT 1 - FORM OF ISSUE PRICE CERTIFICATE
INTRODUCTION ............................................................................................................................................... 1
Authority and Purpose ...................................................................................................................................... 1
Interest .............................................................................................................................................................. 1
Optional Redemption ........................................................................................................................................ 2
Payment Of and Security For The Bonds ......................................................................................................... 2
Book-Entry-Only Issuance ................................................................................................................................ 2
Future Financing ............................................................................................................................................... 4
Litigation ........................................................................................................................................................... 4
Debt Payment History ....................................................................................................................................... 4
Legality ............................................................................................................................................................. 4
Tax Matters ....................................................................................................................................................... 5
Bondholder's Risks ........................................................................................................................................... 7
Rating ................................................................................................................................................................ 9
Municipal Advisor ............................................................................................................................................ 9
Continuing Disclosure .................................................................................................................................... 10
Certification .................................................................................................................................................... 10
CITY PROPERTY VALUES ........................................................................................................................... 11
Iowa Property Valuations................................................................................................................................ 11
Property Valuations (1/1/2017 Valuations for Taxes Payable July 1, 2018 to June 30, 2019) ....................... 11
2017 Gross Taxable Valuation by Class Of Property ..................................................................................... 11
Trend Of Valuations ....................................................................................................................................... 12
Larger Taxpayers ............................................................................................................................................ 12
Property Tax Legislation ................................................................................................................................. 13
CITY INDEBTEDNESS ................................................................................................................................... 14
Debt Limit ....................................................................................................................................................... 14
Direct Debt ...................................................................................................................................................... 14
Revenue Debt .................................................................................................................................................. 17
Overlapping Debt ............................................................................................................................................ 19
Debt Ratios ..................................................................................................................................................... 20
Levies and Tax Collections ............................................................................................................................. 20
Tax Rates ........................................................................................................................................................ 20
Levy Limits ..................................................................................................................................................... 21
Funds On Hand (Cash and Investments as of February 28, 2018) .................................................................. 21
THE CITY ......................................................................................................................................................... 22
City Government ............................................................................................................................................. 22
Employees and Pensions ................................................................................................................................. 22
Other Post-Employment Benefits (OPEB) ...................................................................................................... 23
Union Contracts .............................................................................................................................................. 24
Insurance ......................................................................................................................................................... 24
GENERAL INFORMATION .......................................................................................................................... 25
Location and Transportation ........................................................................................................................... 25
Larger Employers ............................................................................................................................................ 25
Building Permits ............................................................................................................................................. 26
U.S. Census Data ............................................................................................................................................ 26
Unemployment Rates ...................................................................................................................................... 26
Education ........................................................................................................................................................ 26
Financial Services ........................................................................................................................................... 27
Financial Statements ....................................................................................................................................... 27
APPENDIX A - FORM OF LEGAL OPINION
APPENDIX B - JUNE 30, 2017 INDEPENDENT AUDITOR’S REPORTS
APPENDIX C - FORM OF CONTINUING DISCLOSURE CERTIFICATE
OFFICIAL BID FORM
i
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Waukee, State of Iowa, hereafter
described, must be received at the office of the City Clerk, Council Chambers, City Hall, 230 West Hickman Road,
Waukee, Iowa 50263; Telephone: 515-978-7904 (the "City") before 10:00 A.M., on the 21st day of May, 2018. 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 2018A, in the amount of
$19,775,000*, to be dated June 19, 2018 (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 City Clerk at
City Hall, 230 West Hickman Road, Waukee, Iowa 50263.
Electronic Internet Bidding: Electronic internet bids will be received at the office of the City Clerk at
City Hall, 230 West Hickman Road, Waukee, Iowa 50263. 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 City
Clerk at City Hall, 230 West Hickman Road, Waukee, Iowa 50263 (facsimile number: 515-987-1845)
or the City's Municipal Advisor, PFM Financial Advisors LLC, Des Moines, Iowa (facsimile number:
515-243-6994). 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 Council Chambers, City Hall, 230 West
Hickman Road, Waukee, Iowa at a meeting of the City Council on the above date at 5:30 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, Council
Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa 50263; Telephone: 515-978-7904 or the City’s
Municipal Advisor, PFM Financial Advisors LLC, 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309,
Telephone: 515-243-2600.
Terms of Offering: All bids shall be in conformity with and the sale shall be in accordance 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 Waukee, State of Iowa.
City Clerk, City of Waukee, State of Iowa
ii
TERMS OF OFFERING
CITY OF WAUKEE, IOWA
Bids for the purchase of the City of Waukee, Iowa’s (the “City”) $19,775,000* General Obligation Bonds, Series
2018A (the “Bonds”) will be received on Monday, May 21, 2018, before 10:00 A.M., Central Time, after which time
they will be tabulated. The City Council will consider award of the Bonds at 5:30 P.M., Central Time, on the same
day. Questions regarding the sale of the Bonds should be directed to the City’s Municipal Advisor at 515-243-2600.
Information can also be obtained from Ms. Linda Burkhart, Finance Director, City of Waukee, 230 West Hickman
Road, Waukee, Iowa 50263, or by telephoning 515-978-7919. In addition to the provisions of the official NOTICE
OF BOND SALE, 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 BONDS
GENERAL OBLIGATION BONDS, SERIES 2018A in the principal amount of $19,775,000*, will be dated the date
of delivery date (anticipated to be June 19, 2018) in the denomination of $5,000 or multiples thereof, and will mature
June 1 as follows:
Year Amount* Year Amount*
2019 $845,000 2029 $1,110,000
2020 850,000 2030 1,150,000
2021 875,000 2031 1,190,000
2022 900,000 2032 1,230,000
2023 920,000 2033 1,280,000
2024 945,000 2034 815,000
2025 975,000 2035 845,000
2026 1,005,000 2036 880,000
2027 1,035,000 2037 910,000
2028 1,070,000 2038 945,000
* Preliminary; subject to change.
ADJUSTMENT TO BOND MATURITY AMOUNTS
The City reserves the right to increase or decrease the aggregate principal amount of the Bonds and to increase or
decrease each scheduled maturity thereof after the determination of the successful bidder. The City may increase or
decrease each maturity in increments of $5,000 but the total amount to be issued will not exceed $20,000,000.
Interest rates specified by the successful bidder for each maturity will not change. Final adjustments shall be in the
sole discretion of the City.
The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal
amount of the Bonds is adjusted as described above. Any change in the principal amount of any maturity of the
Bonds will be made while maintaining, as closely as possible, the successful bidder's net compensation, calculated as
a percentage of bond principal. The successful bidder may not withdraw or modify its bid as a result of any post-bid
adjustment. Any adjustment shall be conclusive, and shall be binding upon the successful bidder.
INTEREST
Interest on the Bonds will be payable on December 1, 2018 and semiannually on the 1st day of June and December
thereafter. Interest and principal shall be paid to the registered holder of a bond as shown on the records of ownership
maintained by the Registrar as of the 15th day of the month preceding such 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.
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OPTIONAL REDEMPTION
Bonds due after June 1, 2026 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. 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 Bonds to be redeemed at the address shown on
the registration books.
TERM BOND OPTION
Bidders shall have the option of designating the Bonds as serial bonds or term bonds, or both. The bid must designate
whether each of the principal amounts shown above represent a serial maturity or a mandatory redemption
requirement for a term bond maturity. (See the OFFICIAL BID FORM for more information.) In any event, the
above principal amounts scheduled shall be represented by either serial bond maturities or mandatory redemption
requirements, or a combination of both.
GOOD FAITH DEPOSIT
A good faith deposit in the amount of $197,750 for the Bonds (the “Deposit”) is required from the lowest bidder only.
The lowest bidder is required to submit such Deposit payable to the order of the City in the form of either (i) a
cashier’s check provided to the City or its Municipal Advisor or (ii) a wire transfer as instructed by the City’s
Municipal Advisor no later than 12:00 P.M., Central Time, on the day of the 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 Deposit will accrue to the successful
bidder (the “Purchaser”). The Deposit will be applied to the purchase price of the Bonds. In the event a Purchaser
fails to honor its accepted bid proposal, the Deposit will be retained by the City.
FORM OF BIDS AND AWARD
All bids shall be unconditional for a price not less than $19,549,480 for the Bonds; plus accrued interest, and shall
specify the rate or rates of interest in conformity to the limitations set forth under the “BIDDING PARAMETERS”
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 to be determined on a true interest cost
(the “TIC”) basis assuming compliance with the “ESTABLISHMENT OF ISSUE PRICE” and “GOOD FAITH
DEPOSIT” sections. The TIC shall be 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 the
aggregate of such amounts will equal the aggregate purchase price offered therefore. The TIC shall be stated in terms
of an annual percentage rate and shall be that rate of interest, which is twice the semiannual rate so ascertained (also
known as the Canadian Method). The TIC shall be as determined by the Municipal Advisor based on the TERMS OF
OFFERING and all amendments, and on the bids as submitted. The Municipal Advisor’s computation of the TIC of
each bid shall be controlling. In the event of tie bids for the lowest TIC, the Bonds will be awarded by lot.
The City will reserve the right to (i) waive non-substantive informalities of any bid or of matters relating to the receipt
of bids and award of the Bonds, (ii) reject all bids without cause, and (iii) reject any bid which the City determines to
have failed to comply with the terms herein.
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BIDDING PARAMETERS
The bidder’s proposal must conform to the following limitations:
1. Each annual maturity shall 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. The initial price to the public for each maturity must be 98% or greater.
RECEIPT OF BIDS
Forms of Bids: Bids must be submitted on or in substantial compliance with the NOTICE OF BOND SALE and
OFFICIAL BID FORM provided by the City or through PARITY® competitive bidding system (the “Internet Bid
System”). 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 electronic bid or any other means used to deliver or complete a bid. The use of such
means is at the sole risk of the prospective bidder(s) who shall be bound by the terms of the bid as received
No bid will be accepted after the time specified in the NOTICE OF BOND SALE. 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 Bidding: Sealed bids may be submitted and will be received at the office of the City Clerk at City Hall, 230
West Hickman Road, Waukee, Iowa 50263.
Electronic Internet Bidding: Electronic internet bids will be received at the office of the City Clerk at City Hall, or the
office of PFM Financial Advisors LLC. The electronic internet bids must be submitted through the Internet Bid
System. Information about the Internet Bid System may be obtained by calling 212-849-5021.
Each bidder shall be solely responsible for making necessary arrangements to access the Internet Bid System for
purposes of submitting its electronic internet bid in a timely manner and in compliance with the requirements of the
NOTICE OF BOND SALE, TERMS OF OFFERING and OFFICIAL BID FORM. The City is permitting bidders to
use the services of the Internet Bid System solely as a communication mechanism to conduct the electronic internet
bidding and the Internet Bid System is not an agent of the City. Provisions of the NOTICE OF BOND SALE, TERMS
OF OFFERING and OFFICIAL BID FORM shall control in the event of conflict with information provided by the
Internet Bid System.
Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the City Clerk at City Hall,
(facsimile number: 515-987-1845) or at the office of PFM Financial Advisors LLC (facsimile number:
515-243-6994). Electronic facsimile bids will be sealed and treated as sealed bids.
Electronic facsimile bids received after the deadline will be rejected. Bidders electing to submit bids via electronic
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 electronic 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(s) 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(s) 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.
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BOOK-ENTRY-ONLY ISSUANCE
The Bonds will be issued by means of a book-entry-only system with no physical distribution of bond certificates
made to the public. The Bonds will be issued in fully registered form and one bond certificate, representing the
aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as
nominee of The Depository Trust Company (“DTC”), New York, New York, which will act as securities depository
of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple
thereof of a single maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the Registrar to DTC or its nominee as registered owner of the Bonds. Transfer
of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and
interest payments to beneficial owners by participants will be the responsibility of such participants and other
nominees of beneficial owners. The Purchaser, as a condition of delivery of the Bonds, will be required to deposit the
bond certificates with DTC.
MUNICIPAL BOND INSURANCE AT PURCHASER’S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of
the bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole
option and expense of the Purchaser. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the Purchaser, 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. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the
Purchaser shall not constitute cause for failure or refusal by the Purchaser to accept delivery on the Bonds. The City
reserves the right in its sole discretion to accept or deny changes to the financing documents requested by the insurer
selected by the Purchaser.
DELIVERY
The Bonds will be delivered to the Purchaser via Fast Automated Securities Transfer (“FAST”) delivery with the
Registrar holding the Bonds on behalf of DTC, against full payment in immediately available cash or federal funds.
The Bonds are expected to be delivered within forty-five days after the sale. Should delivery be delayed beyond sixty
days from the date of sale for any reason except failure of performance by the Purchaser, the Purchaser 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 five working days’ notice of the delivery date and the City will expect payment in full
on that date; otherwise, reserving the right at its option to determine that the Purchaser failed to comply with the offer
of purchase.
ESTABLISHMENT OF ISSUE PRICE
The Purchaser shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the
City at closing an “issue price” or similar certificate setting forth the reasonably expected initial offering price to the
public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent
communications. In the event lesser than three bids are received, an “issue price” or similar certificate, substantially
in the form attached hereto as EXHIBIT 1 to the TERMS OF OFFERING, with such modifications as may be
appropriate or necessary in the reasonable judgment of the Purchaser, the City and Bond Counsel, will need to be
signed by the Purchaser. If more than three bids are received, an alternative “issue price” or similar certificate will be
provided to the Purchaser. All actions to be taken by the City under the TERMS OF OFFERING to establish the issue
price of the Bonds may be taken on behalf of the City by the Municipal Advisor identified herein and any notice or
report to be provided to the City may be provided to the Municipal Advisor.
The City intends the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining “competitive sale” for
purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the “competitive sale
requirements”) because: (i) the City shall disseminate this TERMS OF OFFERING to potential underwriters in a
manner that is reasonably designed to reach potential underwriters; (ii) all bidders shall have an equal opportunity to
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bid; (iii) the City may receive bids from at least three underwriters of municipal bonds who have established industry
reputations for underwriting new issuances of municipal bonds; and (iv) the City anticipates awarding the sale of the
Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest interest cost), as set
forth in the TERMS OF OFFERING.
Any bid submitted pursuant to the NOTICE OF BOND SALE and TERMS OF OFFERING shall be considered a firm
offer for the purchase of the Bonds, as specified in the bid.
In the event the competitive sale requirements are not satisfied, the City shall so advise the Purchaser. The City may
determine to treat (i) the first price at which 10% of a maturity of the Bonds (the “10% test” is sold to the public as the
issue price of that maturity and/or (ii) the initial offering price to the public as of the sale date of any maturity of the
Bonds as the issue price of that maturity (the “hold-the-offering-price rule”), in each case applied on a maturity-by-
maturity basis. The Purchaser shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date
and time of the award of the Bonds. The City shall promptly advise the Purchaser, at or before the time of award of
the Bonds, which maturities of the Bonds shall be subject to the 10% test or shall be subject to the hold-the-offering-
price rule. Bids will not be subject to cancellation in the event the City determines to apply the hold-the-offering-
price rule to any maturity of the Bonds. Prospective bidders should prepare their bids on the assumption that
some or all of the maturities of the Bonds will be subject to the hold-the-offering-price rule in order to establish
the issue price of the Bonds.
By submitting a bid, the Purchaser shall (i) confirm the underwriters have offered or will offer the Bonds to the public
on or before the date of award at the offering price or prices (the “initial offering price”), or at the corresponding yield
or yields, set forth in the bid submitted by the Purchaser and (ii) agree, on behalf of the underwriters participating in
the purchase of the Bonds, that the underwriters will neither offer nor sell unsold Bonds of any maturity to which the
hold-the-offering-price rule shall apply to any person at a price that is higher than the initial offering price to the
public during the period starting on the sale date and ending on the earlier of the following: (i) the close of the fifth
(5th) business day after the sale date; or (ii) the date on which the underwriters have sold at least 10% of that maturity
of the Bonds to the public at a price that is no higher than the initial offering price to the public.
The Purchaser shall promptly advise the City when the underwriters have sold 10% of that maturity of the Bonds to
the public at a price that is no higher than the initial offering price to the public, if that occurs prior to the close of the
fifth (5th) business day after the sale date.
The City acknowledges that, in making the representation set forth above, the Purchaser will rely on (i) the agreement
of each underwriter to comply with the hold-the-offering-price rule, as set forth in an agreement among underwriters
and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the
Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the hold-the-
offering-price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event, an
underwriter is a party to a retail distribution agreement that was employed in connection with the initial sale of the
Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the hold-
the-offering-price rule, as set forth in the retail distribution agreement and the related pricing wires. The City further
acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the
hold-the-offering-price rule and that no underwriter shall be liable for the failure of any other underwriter, or of any
dealer who is a member of a selling group, or of any broker-dealer that is a party to a retail distribution agreement to
comply with its corresponding agreement regarding the hold-the-offering-price rule as applicable to the Bonds.
By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement
and each retail distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the
public, together with the related pricing wires, contains or will contain language obligating each underwriter, each
dealer who is a member of the selling group, and each broker-dealer that is a party to such retail distribution
agreement, as applicable, to (A) report the prices at which it sells to the public the unsold Bonds of each maturity
allotted to it until it is notified by the Purchaser that either the 10% test has been satisfied as to the Bonds of that
maturity or all Bonds of that maturity have been sold to the public and (B) comply with the hold-the-offering-price
rule, if applicable, in each case if and for so long as directed by the Purchaser and as set forth in the related pricing
wires, and (ii) any agreement among underwriters relating to the initial sale of the Bonds to the public, together with
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the related pricing wires, contains or will contain language obligating each underwriter that is a party to a retail
distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each
broker-dealer that is a party to such retail distribution agreement to (A) report the prices at which it sells to the public
the unsold Bonds of each maturity allotted to it until it is notified by the Purchaser or such underwriter that either the
10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public
and (B) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed by the
Purchaser or such underwriter and as set forth in the related pricing wires.
Sales of any Bonds to any person that is a related party to an underwriter shall not constitute sales to the public for
purposes of this TERMS OF OFFERING. Further, for purposes of this TERMS OF OFFERING: (i) “public” means
any person other than an underwriter or a related party, (ii) “underwriter” means (A) any person that agrees pursuant
to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the
initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or
indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a
member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to
the public), (iii) a Purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the
Purchaser are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total
value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii)
more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships
(including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of
the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if
one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or
interests by one entity of the other), and (iv) “sale date” means the date that the Bonds are awarded by the City to the
Purchaser.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative
to the Bonds. The Preliminary Official Statement will be further supplemented by offering prices, interest rates,
selling compensation, aggregate principal amount, principal amount per maturity, anticipated delivery date and the
identity of the underwriter, together with 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
promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended,
(the “Rule”). By awarding the Bonds to any underwriter or underwriting syndicate submitting an OFFICIAL BID
FORM, 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 Bonds are awarded up to 25 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 Rule. The City shall treat the senior managing underwriter of the syndicate to which the
Bonds are awarded as its designated agent for purposes of distributing copies of the final Official Statement to the
Participating Underwriter. Any underwriter executing and delivering an OFFICIAL BID FORM with respect to the
Bonds agrees thereby that if its bid is accepted by the City, (i) it shall accept such designation, and (ii) it shall enter
into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by
each such Participating Underwriter of the final Official Statement.
CONTINUING DISCLOSURE
In order to permit bidders for the Bonds and other Participating Underwriters in the primary offering of the Bonds to
comply with paragraph (b)(5) of Rule, the City will covenant and agree, for the benefit of the registered holders or
beneficial owners from time to time of the outstanding Bonds, in the resolution for the Bonds and the Continuing
Disclosure Certificate, to provide certain annual financial information and notices of the occurrence of certain
material events as hereinafter described (the “Undertakings”). The information to be provided on an annual basis, the
events as to which notice is to be given, and a summary of other provisions of the Undertakings, including
termination, amendment and remedies, are set forth as APPENDIX C to this Preliminary Official Statement. The City
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will deliver the Continuing Disclosure Certificate at closing, and any failure on the part of the City to deliver the same
shall relieve the Purchaser of its obligations to purchase the Bonds.
Within the past five years, while the bond call notice for the June 1, 2014 redemption of the City’s General Obligation
Bonds, Series 2006B was timely filed in 2013, the corresponding notice of defeasance was not posted. Additionally,
the refunding trust agreement was not timely posted by the underwriter for the General Obligation Urban Renewal
Refunding Bonds, Series 2013C.
Breach of the Undertakings will not constitute a default or an “Event of Default” under the Bonds or the resolution for
the Bonds. A broker or dealer is to consider a known breach of the Undertakings, however, before recommending the
purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the
Undertakings may adversely affect the transferability and liquidity of the Bonds and their market price.
CUSIP NUMBERS
It is anticipated the 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 Municipal 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 Waukee, Iowa
/s/ Linda Burkhart, Finance Director
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$19,775,000*
CITY OF WAUKEE, IOWA
General Obligation Bonds, Series 2018A
Bonds Dated:
Interest Due: December 1, 2018 and each June 1 and December 1 to maturity
Principal Due: June 1, 2019-2038
Cumulative
Year Bond Years Bond Years
2019 $845,000 802.75 802.75
2020 850,000 1,657.50 2,460.25
2021 875,000 2,581.25 5,041.50
2022 900,000 3,555.00 8,596.50
2023 920,000 4,554.00 13,150.50
2024 945,000 5,622.75 18,773.25
2025 975,000 6,776.25 25,549.50
2026 1,005,000 7,989.75 33,539.25
2027 1,035,000 9,263.25 42,802.50
2028 1,070,000 10,646.50 53,449.00
2029 1,110,000 12,154.50 65,603.50
2030 1,150,000 13,742.50 79,346.00
2031 1,190,000 15,410.50 94,756.50
2032 1,230,000 17,158.50 111,915.00
2033 1,280,000 19,136.00 131,051.00
2034 815,000 12,999.25 144,050.25
2035 845,000 14,322.75 158,373.00
2036 880,000 15,796.00 174,169.00
2037 910,000 17,244.50 191,413.50
2038 945,000 18,852.75 210,266.25
Average Maturity (dated date): 10.633 Years
* Preliminary; subject to change
SCHEDULE OF BOND YEARS
June 19, 2018
Principal*
EXHIBIT 1
FORM OF ISSUE PRICE CERTIFICATE
(This page has been left blank intentionally.)
Exhibit 1 to Terms of Offering
ISSUE PRICE CERTIFICATE - COMPETITIVE SALES WITH FEWER THAN THREE BIDS FROM
ESTABLISHED UNDERWRITERS - HOLD OFFERING PRICE
ISSUE PRICE CERTIFICATE
For
$___________ General Obligation Bonds, Series 2018A
City of Waukee, Iowa
The undersigned, on behalf of [NAME OF UNDERWRITER/REPRESENTATIVE] ([“Purchaser”)][the
“Representative”)],[on behalf of itself and [NAMES OF OTHER UNDERWRITERS] (together, the “Underwriting
Group”),] hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations
(the “Bonds”).
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule
Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price
listed in Schedule A.
2. Initial Offering Price of the Hold-the-Offering-Price Maturities.
(a) [Purchaser][The Underwriting Group] offered the Hold-the-Offering-Price Maturities to the Public for
purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the
Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as
Schedule B.
(b) As set forth in the Terms of Offering and bid award, [Purchaser][the members of the Underwriting Group]
[has][have] agreed in writing that, (i) for each Maturity of the Hold-the-Offering-Price Maturities, [it][they] would
neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering
Price for such Maturity during the Holding Period for such Maturity (the “hold-the-offering-price rule”), and (ii) any
selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail
distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail distribution
agreement, to comply with the hold-the-offering-price rule. Pursuant to such agreement, no Underwriter (as defined
below) has offered or sold any Maturity of the Hold-the-Offering-Price Maturities at a price that is higher than the
respective Initial Offering Price for that Maturity of the Bonds during the Holding Period.
3. Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General
Rule Maturities.”
(b) Hold-the-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the
“Hold-the-Offering-Price Maturities.”
(c) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the Sale
Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date (May 21, 2018), or (ii) the
date on which [Purchaser][the Underwriters] [has][have] sold at least 10% of such Hold-the-Offering-Price Maturity to
the Public at prices that are no higher than the Initial Offering Price for such Hold-the-Offering-Price Maturity.
(d) Issuer means Waukee, Iowa.
(e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or
Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(f) Public means any person (including an individual, trust, estate, partnership, association, company, or
corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of
this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly
or indirectly.
Exhibit 1 to Terms of Offering
(g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the
Bonds. The Sale Date of the Bonds is May 21, 2018.
(h) Underwriter means (i) the Purchaser or any person that agrees pursuant to a written contract with the Issuer
(or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the
Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in
clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling
group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate
represents [the Purchaser][the Representative’s] interpretation of any laws, including specifically Sections 103 and 148
of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned
understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations
set forth in the Tax Exemption Certificate and with respect to compliance with the federal income tax rules affecting the
Bonds, and by Ahlers & Cooney, P.C., Bond Counsel, in connection with rendering its opinion that the interest on the
Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service
Form 8038G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.
[UNDERWRITER][REPRESENTATIVE]
By:____________________________________
Name:__________________________________
Dated: June 19, 2018
Exhibit 1 to Terms of Offering
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES AND
INITIAL OFFERING PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITIES
$___________ General Obligation Bonds, Series 2018A
City of Waukee, Iowa
(Attached)
Exhibit 1 to Terms of Offering
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
$___________ General Obligation Bonds, Series 2018A
City of Waukee, Iowa
(Attached)
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PRELIMINARY OFFICIAL STATEMENT
CITY OF WAUKEE, IOWA
$19,775,000* General Obligation Bonds, Series 2018A
INTRODUCTION
This Preliminary Official Statement contains information relating to the City of Waukee, Iowa (the “City”) and its
issuance of $19,775,000* General Obligation Bonds, Series 2018A (the “Bonds”). This Preliminary Official Statement
has been executed on behalf of the City by its Finance Director and may be distributed in connection with the sale of the
Bonds authorized therein. Inquiries regarding the Bonds may be made to the City’s Municipal Advisor, PFM Financial
Advisors LLC, 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309 or by telephoning 515-243-2600. Information
can also be obtained from Ms. Linda Burkhart, Finance Director, City of Waukee, 230 West Hickman Road, Waukee,
Iowa, 50263, or by telephoning 515-978-7919.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Division III of Chapter 384 and 403 of the Code of Iowa and a resolution to be
adopted by the City Council of the City. The Bonds are being issued to pay the costs of general corporate purposes,
essential corporate purposes, and essential corporate urban renewal purposes of the City. General corporate purposes
shall include the acquisition, construction, improvement and equipping of new recreation grounds and new parks,
including acquisition of real estate therefore, related to the new Westown Meadows Park, the new Alice’s Historic Park,
the new Glynn Village Park; and the acquisition, construction, improvements and equipping of the City golf course,
including expanding the water source for irrigation. Essential corporate purposes shall include the rehabilitation and
improvement of City parks already owned, including facilities, equipment and parks for Fox Creek Phase II and the dog
park; trails and sidewalk paving improvements; and equipping the fire department. Essential corporate urban renewal
purposes shall include aiding in the planning, undertaking and carrying out of urban renewal projects under the Urban
Renewal Plan for the Gateway Economic Development Urban Renewal Area, including street, streetscape, lighting,
traffic signals, street signage and trail improvements for the Alice’s Road extension and developer incentives, and
improvements within the Kettlestone Master Plan, with related site improvements.
The estimated sources and uses of the Bonds are as follows:
Sources of Funds
Par Amount of Bonds $19,775,000.00 *
Uses of Funds
Deposit to Project Fund 19,450,000.00
Underwriter’s Discount 225,520.00 *
Cost of Issuance and Contingency 99,480.00 *
Total Uses $19,775,000.00 *
* Preliminary; subject to change.
INTEREST
Interest on the Bonds will be payable on December 1, 2018 and semiannually on the 1st day of June and December
thereafter. Interest and principal shall be paid to the registered holder of a Bond as shown on the records of ownership
maintained by the Registrar as of the 15th day of the month preceding such 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.
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OPTIONAL REDEMPTION
The Bonds due after June 1, 2026 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. 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 Bonds to be redeemed at the address shown on the registration
books.
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 on the Bonds. If, however, the amount credited to the debt service fund for
payment of the Bonds is insufficient to pay principal and interest, whether from transfers or from original levies, the
City must use funds in its treasury and 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 deficiency.
Nothing in the resolution 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 on 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 resolution authorizing the Bonds doesn’t restrict the City’s ability to issue or incur additional general obligation
debt, although issuance of additional general obligation debt is subject to the same constitutional and statutory
limitations 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 “CITY
INDEBTEDNESS” herein. For a description of certain constitutional and statutory limits on the issuance of general
obligation debt, see “DEBT LIMIT” under “CITY INDEBTEDNESS” herein.
BOOK-ENTRY-ONLY ISSUANCE
The information contained in the following paragraphs of this subsection “Book-Entry-Only Issuance” has been
extracted from a schedule prepared by Depository Trust Company (“DTC”) entitled “SAMPLE OFFERING
DOCUMENT LANGUAGE DESCRIBING DTC AND BOOK-ENTRY-ONLY ISSUANCE.” The information in this
section concerning DTC and DTC’s book-entry-only system has been obtained from sources the City believes to be
reliable, but the City takes no responsibility for the accuracy thereof.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the
“Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-
registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of
such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500
million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate
will be issued with respect to any remaining principal amount of such issue.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments from over 100 countries that DTC’s participants (the “Direct
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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-only transfers and
pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust &
Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation
and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of
its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S.
securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a
custodial relationship with a Direct Participant, either directly or indirectly (the “Indirect Participants”). DTC has
Standard & Poor’s rating: AA+. The DTC Rules applicable to its Participants are on file with the Securities and
Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (the
“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in
Securities, except in the event that use of the book-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 requested by an authorized representative of
DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee
do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the
Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible
for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time. 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 Securities 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 than 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
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customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of
DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time.
Payment of redemption proceeds, distributions, and dividend payments to Cede & Co., or such other nominee as may be
requested by an authorized representative of DTC, is the responsibility of the City or Agent, disbursement of such
payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial
Owners will be the responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the
Participant’s interest in the Securities, on DTC’s records, to Tender/Remarketing Agent. The requirement for physical
delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the
ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry
credit of tendered Securities to Tender/Remarketing Agent’s DTC account.
DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable
notice to the City or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security
certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor
securities depository). In that event, Security certificates will be printed and delivered to DTC.
FUTURE FINANCING
The City will be issuing approximately $3,410,000 Water Revenue Bonds, Series 2018B and approximately $3,565,000
Sewer Revenue Bonds, Series 2018C simultaneously with the issuance of the Bonds. In addition, the City will issue
approximately $3,040,000 Sewer Revenue Capital Loan Notes through the Iowa Finance Authority’s Clean Water State
Revolving Fund Program in July 2018.
LITIGATION
The City is not aware of any threatened or pending litigation that may have a material adverse effect on the validity of
the Bonds or the City’s ability to meet its financial obligations.
DEBT PAYMENT HISTORY
The City knows of no instance in which it has defaulted in the payment of principal or interest on its debt.
LEGALITY
The Bonds are subject to approval as to certain matters by Ahlers & Cooney, P.C. of Des Moines, Iowa as Bond
Counsel. Bond Counsel has not participated in the preparation of this Preliminary 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 LEGAL OPINION” as set out in APPENDIX A to this Preliminary
Official Statement, will be delivered at closing.
The legal opinion to be delivered concurrently with the delivery of the Bonds expresses the professional judgment of
the attorneys rendering the opinion as to legal issues expressly addressed therein. By rendering a legal opinion, 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 opinion is rendered, or of the future performance of parties to the
transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the
transaction.
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There is no bond trustee or similar person to monitor or enforce the provisions of the resolution 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 resolution) 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.
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 opinion. The opinion will state, in part, that the obligation 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.
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 must be satisfied in order for the interest on the
Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such
covenants could cause interest on the Bonds to become includable in gross income for federal income tax purposes
retroactively to the date of issuance of the Bonds.
Subject to the City’s compliance with the above referenced covenants, under present law, in the opinion of Bond
Counsel, interest on the Bonds is excludable from gross income for federal income tax purposes. Interest on the Bonds
is not an item of tax preference for federal alternative minimum tax purposes, but is included in the adjusted current
earnings of corporations for purposes of the federal alternative minimum tax applicable to taxable years beginning
before January 1, 2018.
The prospective purchaser of the Bonds should be aware that ownership 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, individual recipients of Social Security or
Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to
purchase or carry tax-exempt obligations. Bond Counsel will not express any opinion as to such collateral tax
consequences. The prospective purchaser of the Bonds should consult their tax advisors as to collateral federal income
tax consequences.
The interest on the Bonds is NOT exempt from present Iowa income taxes.
Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel
expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. The prospective
purchaser of the Bonds should consult their tax advisors regarding the applicability of any such state and local taxes.
NOT-Qualified Tax-Exempt Obligations: The City will NOT designate the Bonds as “qualified tax-exempt obligations”
under the exception provided in Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”).
Discount and Premium Bonds: The initial public offering price of certain Bonds may be less than the amount payable
on such Bonds at maturity (the “Discount Bonds”). 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 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
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Discount Bonds may be deemed to be received in the year of accrual even though there will not be a corresponding cash
payment.
The initial public offering price of certain Bonds may be greater than the amount of such Bonds at maturity (the
"Premium Bonds"). Owners of the Premium Bonds should consult with their own tax advisors with respect to the
determination of amortizable premium on Premium Bonds for income tax purposes and with respect to the state and
local tax consequences of owning and disposing of Premium Bonds.
Other Tax Advice: In addition to the income tax consequences described above, potential investors should consider
the additional tax consequences of the acquisition, ownership, and disposition of the Bonds. For instance, state
income tax law may differ substantially from state to state, and the foregoing is not intended to describe any
aspect of the income tax laws of any state. Therefore, potential investors should consult their own tax advisors with
respect to federal tax issues and with respect to the various state tax consequences of an investment in Bonds.
Audits: The Internal Revenue Service (the “Service”) has an ongoing program of auditing tax-exempt obligations to
determine whether, in the view of the Service, interest 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.
Withholdings: 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.
Tax Legislation: Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and
may be considered by the Iowa legislature. Court proceedings may also be filed, the outcome of which could modify
the tax treatment. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of
issuance of the Bonds will not have an adverse effect on the tax status of interest or other income on the Bonds or the
market value or marketability of the Bonds. These adverse effects could result, for example, from changes to federal or
state income tax rates, changes in the structure of federal or state income taxes (including replacement with another type
of tax), or repeal (or reduction in the benefit) of the exclusion of interest on the Bonds from gross income for federal or
state income tax purposes for all or certain taxpayers.
Current and future legislative proposals, including some that carry retroactive effective dates, if enacted into law, court
decisions, 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, on December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. For tax
years beginning after December 31, 2017, the TCJA, among other things, significantly changes the income tax rates on
individuals and corporations, modifies the current provisions relative to the federal alternative minimum tax on
individuals, and eliminates the federal alternative minimum tax for corporations. The TCJA, or the introduction or
enactment of any other legislative proposals, clarification of the Code or court decisions 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 the TCJA, as well as any pending or proposed tax legislation, as to which Bond
Counsel expresses no opinion other than as set forth in its legal opinion.
The Opinion: The FORM OF LEGAL OPINION, in substantially the form set out in APPENDIX A to this
Preliminary Official Statement, will be delivered at closing.
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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, nor does the rendering of the
opinion guarantee the outcome of any legal dispute that may arise out of the transaction. Bond Counsel assumes no
obligation to update its opinion after the issue date to reflect any further action, fact or circumstance, or change in law
or interpretation, or otherwise.
Enforcement: Holders of the Bonds shall have and possess all the rights of action and remedies afforded by the
common law, the Constitution and statutes of the State of Iowa and of the United States of America for the enforcement
of payment of the Bonds, including, but not limited to, the right to a proceeding in law or in equity by suit, action or
mandamus to enforce and compel performance of the duties required by Iowa law and the resolution authorizing
issuance of the Bonds (the “Resolution”). There is no bond trustee or similar person to monitor or enforce the terms of
the Resolution. 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 Resolution) may have to be enforced from year to year. The enforceability of the rights and
remedies of owners of the Bonds may be subject to limitation as set forth in Bond Counsel’s opinion.
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. 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 opinion. The opinion to be delivered concurrently with the delivery of
the Bonds will be qualified as to the enforceability of the various legal instruments by limitations imposed by
general principles of equity and public policy and by bankruptcy, reorganization, insolvency or other similar laws
affecting the rights of creditors generally, and to the exercise of judicial discretion in appropriate cases.
ALL POTENTIAL PURCHASERS OF THE BONDS SHOULD CONSULT WITH THEIR TAX ADVISORS WITH
REPSECT TO FEDERAL, STATE AND LOCAL TAX CONSEQUENCES OF OWNERSHIP OF THE BONDS
INCLUDING BUT NOT LIMITED TO THOSE LISTED ABOVE.
BONDHOLDER’S RISKS
An investment in the Bonds is subject to certain risks. No person should purchase the Bonds unless such person
understands the risks described below and is willing to bear those risks. There may be other risks not listed below
which may adversely affect the value of the Bonds. In order to identify risk factors and make an informed investment
decision, potential investors should be thoroughly familiar with this entire Preliminary Official Statement (including the
Appendices hereto) in order to make a judgment as to whether the Bonds are an appropriate investment.
Secondary Market Not Established: There is no established secondary market for the Bonds, and there is no assurance
that a secondary market will develop for the purchase and sale of the Bonds. Prices of municipal bonds traded in the
secondary market, if any, are subject to adjustment upward and downward in response to changes in the credit markets
and changes in the operating performance of the entities operating the facilities subject to bonded indebtedness. From
time to time it may be necessary to suspend indefinitely secondary market trading in selected issues of municipal bonds
as a result of the financial condition or market position, prevailing market conditions, lack of adequate current financial
information about the entity, operating the subject facilities, or a material adverse change in the operations of that entity,
whether or not the subject bonds are in default as to principal and interest payments, and other factors which, may give
rise to uncertainty concerning prudent secondary market practices.
Municipal bonds are generally viewed as long-term investments, subject to material unforeseen changes in the
investor’s circumstances, and may require commitment of the investor’s funds for an indefinite period of time, perhaps
until maturity.
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Ratings Loss: Moody’s Investors Service, Inc. (“Moody’s”) has assigned a rating of ‘____’ to the Bonds. Generally, a
rating agency bases its rating on the information and materials furnished to it and on investigations, studies and
assumptions of its own. There is no assurance the ratings will continue for any given period of time, or that such ratings
will not be revised, suspended or withdrawn, if, in the judgment of Moody’s, circumstances so warrant. A revision,
suspension or withdrawal of a rating may have an adverse effect on the market price of the Bonds.
Rating agencies are currently not regulated by any regulatory body. Future regulation of rating agencies could materially
alter the methodology, rating levels, and types of ratings available, for example, and these changes, if ever, could
materially affect the market value of the Bonds.
Matters Relating to Enforceability: Holders of the Bonds shall have and possess all the rights of action and remedies
afforded by the common law, the Constitution and statutes of the State of Iowa and of the United States of America for
the enforcement of payment of the Bonds, including but not limited to, the right to a proceeding in the law or in equity by
suit, action or mandamus to enforce and compel performance of the duties required by Iowa law and the resolution for the
Bonds.
The opinion, to be delivered concurrently with the delivery of the Bonds, will be qualified as to the enforceability of the
various legal instruments by limitations imposed by general principals of equity and public policy and by bankruptcy,
reorganization, insolvency or other similar laws affecting the rights of creditors generally.
No representation is made and no assurance is given that the enforcement of any remedies with respect to such assets will
result in sufficient funds to pay all amounts due under the resolution, including principal of and interest on the Bonds.
Forward-Looking Statements: This Preliminary Official Statement contains statements relating to future results that are
“forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. When used in this
Preliminary Official Statement, the words “estimate,” “forecast,” “intend,” “expect” and similar expressions identify
forward-looking statements. Any forward-looking statement is subject to uncertainty. Accordingly, such statements are
subject to risks that could cause actual results to differ, possibly materially, from those contemplated in such forward-
looking statements. Inevitably, some assumptions used to develop forward-looking statements will not be realized or
unanticipated events and circumstances may occur. Therefore, investors should be aware there are likely to be
differences between forward-looking statements and the actual results. These differences could be material and could
impact the availability of funds of the City to pay debt service when due on the Bonds.
Tax Matters and Loss of Tax Exemption: As discussed under the heading “TAX MATTERS” herein, the interest on the
Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of
delivery of the Bonds, as a result of acts or omissions of the City in violation of its covenants in the resolution for the
Bonds. Should such an event of taxability occur, the Bonds would not be subject to a special prepayment and would
remain outstanding until maturity or until prepaid under the prepayment provisions contained in the Bonds, and there is
no provision for an adjustment of the interest rates on the Bonds.
It is possible further legislation will be proposed or introduced that could result in changes in the way that tax exemptions
are calculated, or whether interest on certain securities are exempt from taxation at all. Prospective purchasers should
consult with their own tax advisors regarding any pending or proposed federal income tax legislation.
It is also possible actions of the City, after the closings of the Bonds, will alter the tax status of the Bonds, and in the
extreme, remove the tax-exempt status from the Bonds. In that instance, the Bonds are not subject to mandatory
prepayment and the interest rates on the Bonds don’t increase or otherwise reset. A determination of taxability on the
Bonds after closing could materially adversely affect the value and marketability of the Bonds.
Pending Federal Tax Legislation: From time to time, there are Presidential proposals, proposals of various federal
committees, and legislative proposals pending in Congress that could, if enacted, alter or amend one or more of the
federal (or state) tax matters described herein in certain respects or would adversely affect the market value of the Bonds
or otherwise prevent holders of the Bonds from realizing the full benefit of the tax exemption of interest on the Bonds.
Further, such proposals may impact the marketability or market value of the Bonds simply by being proposed. It cannot
be predicted whether, or in what forms, any of such proposals, either pending or that may be introduced, may be enacted
9
and there can be no assurance that such proposals will not apply to the Bonds. In addition, regulatory actions are from
time to time announced or proposed and litigation 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.
Tax Levy Procedures: The Bonds are general obligations of the City, payable from and secured by a continuing ad
valorem tax levied against all of the property valuation within the City. As part of the budgetary process each fiscal year,
the City will have an obligation to request a debt service levy to be applied against all of the taxable property within the
City. A failure on the part of the City to make a timely levy request or a levy request by the City that is inaccurate or is
insufficient to make full payments of the debt service of the Bonds for a particular fiscal year may cause bondholders to
experience a delay in the receipt of distributions of principal of and/or interest on the Bonds. 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 resolution for the Bonds) may
have to be enforced from year to year.
DTC-Beneficial Owners: Beneficial Owners of the Bonds may experience some delay in the receipt of distributions of
principal of and interest on the Bonds since such distributions will be forwarded by the Registrar to DTC and DTC will
credit such distributions to the accounts of the Participants which will, thereafter, credit them to the accounts of the
Beneficial Owner either directly or indirectly through indirect Participants. Neither the City nor the Registrar will have
any responsibility or obligation to assure any such notice or payment is forwarded by DTC to any Participants or by any
Participant to any Beneficial Owner.
In addition, since transactions in the Bonds can be effected only through DTC Participants, indirect participants and
certain banks, the ability of a Beneficial Owner to pledge the Bonds to persons or entities that do not participate in the
DTC system, or otherwise to take actions in respect of such Bonds, may be limited due to lack of a physical certificate.
Beneficial Owners will be permitted to exercise the rights of registered Owners only indirectly through DTC and the
Participants. See “BOOK-ENTRY ONLY ISSUANCE.”
Summary: The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Bonds.
In order for potential investors to identify risk factors and make an informed investment decision, potential investors
should become thoroughly familiar with this entire Preliminary Official Statement and the Appendices hereto to make a
judgment as to whether the Bonds are an appropriate investment.
RATING
The City has requested a rating on the Bonds from Moody’s. In addition, Moody’s currently maintains a rating of ‘Aa2’
on the City’s long-term general obligation debt. The existing rating on long-term debt reflects only the view of the
rating agency and any explanation of the significance of such rating may only be obtained from Moody’s. There is no
assurance such rating will continue for any period of time or that they will not be revised or withdrawn. Any revision or
withdrawal of the rating may have an effect on the market price of the Bonds.
MUNICIPAL ADVISOR
The City has retained PFM Financial Advisors LLC, Des Moines, Iowa as Municipal Advisor in connection with the
preparation of the issuance of the Bonds. In preparing the Preliminary Official Statement, the Municipal Advisor has
relied on government officials, and other sources to provide accurate information for disclosure purposes. The
Municipal Advisor is not obligated to undertake, and has not undertaken, an independent verification of the accuracy,
completeness, or fairness of the information contained in the Preliminary Official Statement. PFM Financial 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.
10
CONTINUING DISCLOSURE
In order to permit bidders for the Bonds and other Participating Underwriters in the primary offering of the Bonds to
comply with paragraph (b)(5) of the Rule 15c2-12 promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, the City will covenant and agree, for the benefit of the registered holders
or beneficial owners from time to time of the outstanding Bonds, in the resolution for the Bonds and the Continuing
Disclosure Certificate, to provide annual financial information filings of specified information and notice of the
occurrence of certain material events as hereinafter described (the “Undertakings”). The information to be provided on
an annual basis, the events as to which notice is to be given, and a summary of other provisions of the Undertakings,
including termination, amendment and remedies, are set forth as APPENDIX C to this Preliminary Official Statement.
The City will deliver the Continuing Disclosure Certificate at closing, and any failure on the part of the City to deliver
the same shall relieve the Purchaser of its obligations to purchase the Bonds.
Within the past five years, while the bond call notice for the June 1, 2014 redemption of the City’s General Obligation
Bonds, Series 2006B was timely filed in 2013, the corresponding notice of defeasance was not posted. Additionally, the
refunding trust agreement was not timely posted by the underwriter for the General Obligation Urban Renewal
Refunding Bonds, Series 2013C.
Breach of the Undertakings will not constitute a default or an “Event of Default” under the Bonds or the resolution for
the Bonds. A broker or dealer is to consider a known breach of the Undertakings, however, before recommending the
purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the
Undertakings may adversely affect the transferability and liquidity of the Bonds and their market price.
CERTIFICATION
The City has authorized the distribution of this Preliminary Official Statement for use in connection with the initial sale
of the Bonds. I have reviewed the information contained within the Preliminary Official Statement prepared on behalf
of the City by PFM Financial Advisors LLC, Des Moines, Iowa, and to the best of my knowledge, information and
belief, said Preliminary Official Statement does not contain any material misstatements of fact nor omission of any
material fact regarding the issuance of $19,775,000* General Obligation Bonds, Series 2018A.
CITY OF WAUKEE, IOWA
/s/ Linda Burkhart, Finance Director
* Preliminary; subject to change.
11
CITY PROPERTY VALUATIONS
IOWA PROPERTY VALUATIONS
In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs the county
auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The 2017
final Actual Values were adjusted by the Dallas County Auditor. The reduced values, determined after the application
of rollback percentages, are the Taxable Values subject to tax levy. For assessment year 2017, the taxable value
rollback rate was 55.6209% of actual value for residential property; 54.4480% of actual value for agricultural property;
78.7500% of the actual value for multiresidential property; and 90% of actual value for commercial, industrial and
railroad property. No adjustment was ordered for utility property because its assessed value did not increase enough to
qualify for reduction. Utility property is limited to an 8% annual growth.
The Legislature’s intent has been to limit the growth of statewide taxable valuations for the specific classes of property
to 3% annually. Political subdivisions whose taxable values are thus reduced or are unusually low in growth are
allowed to appeal the valuations to the State Appeal Board, in order to continue to fund present services.
PROPERTY VALUATIONS (1/1/2017 Valuations for Taxes payable July 1, 2018 to June 30, 2019)
100% Actual Value
Taxable Value
(With Rollback)
Residential $1,550,629,293 $859,219,972
Commercial 67,652,670 51,459,187
Industrial 2,980,750 2,073,470
Multiresidential 41,867,070 28,645,542
Railroad 682,256 614,030
Utilities w/o Gas & Electric 3,328,592 3,328,592
Gross valuation $1,667,140,631 $945,340,793
Less military exemption (892,664) (892,664)
Net valuation $1,666,247,967 $944,448,129
TIF Increment (used to compute debt
service levies and constitutional debt
limit)
$164,602,427
$158,103,252
Taxed separately:
Ag. Land
$7,164,960
$3,901,172
Ag. Buildings 138,210 75,251
Gas & Electric Utilities 6,181,373 3,671,889
2017 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY 1)
Taxable Valuation Percent Total
Residential $859,219,972 90.54%
Multiresidential 28,645,542 3.02%
Commercial, Industrial, Railroad and Utilities w/o Gas & Electric 57,475,279 6.05%
Gas & Electric Utilities 3,671,889 0.39%
Total Gross Taxable Valuation $949,012,682 100.00%
1) Excludes Ag. Land, Ag. Buildings and Taxable TIF Increment.
12
TREND OF VALUATIONS
Assessment
Year
Payable
Fiscal Year
100% Actual Valuation
Taxable Valuation
(With Rollback)
Taxable TIF
Increment
2013 2014-15 $1,171,177,915 $575,087,827 $129,504,284
2014 2015-16 1,287,907,585 645,867,003 131,329,471
2015 2016-17 1,387,405,421 704,992,568 131,350,231
2016 2017-18 1,610,592,237 848,093,768 136,044,958
2017 2018-19 1,844,334,937 948,120,018 158,103,252
The 100% Actual Valuation, before rollback and after reduction of military exemption, includes Ag. Land, Ag.
Buildings, TIF Increment and Gas & Electric Utilities. The Taxable Valuation, with the rollback and after the reduction
of military exemption, includes Gas & Electric Utilities and excludes Ag. Land, Ag. Buildings and Taxable TIF
Increment. 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.
LARGER TAXPAYERS
Set forth in the following table are the persons or entities which represent larger taxpayers within the boundaries of the
City, as provided by the Dallas County Auditor’s office. No independent investigation has been made of and no
representation is made herein as to the financial condition of any of the taxpayers listed below or that such taxpayers
will continue to maintain their status as major taxpayers in the City. With the exception of the electric and natural gas
providers (which is subject to an excise tax in accordance with Iowa Code chapter 437A), the City’s mill levy is
applicable to all of the properties included in the table, and thus taxes expected to be received by the City from such
taxpayers will be in proportion to the assessed valuations of the properties. The total tax bill for each of the properties is
dependent upon the mill levies of the other taxing entities which overlap the properties.
Taxpayer 1)
Type of Property/Business
1/1/2017
Taxable Valuation 2)
Health Care REIT 3) Multiresidential $22,320,721
Prairiegrass Equity LLC Multiresidential 19,718,764
Hy-Vee, Inc. Commercial 14,260,338
Winhall at Williams Pointe LLC Residential 11,085,801
Autumn Ridge Apartments LC Residential 8,128,759
Stivers Iowa Real Estate LLC Commercial 7,358,040
Shottenkirk Partnership, LP Commercial 5,932,494
Atlantic Bottling Company Commercial 5,250,339
Gilcrest/Jewett Lumber Company Commercial 4,864,077
Hale Development Co. LLC Residential 4,475,085
1) This list represents some of the larger taxpayers in the City, not necessarily the 10 largest taxpayers.
2) The Taxable Valuation listed represents only those valuations associated with the title holder and may not necessarily
represent the entire taxable valuation.
3) Represents both Waukee Senior Housing LLC & Waukee Senior Housing II LLC.
Source: Dallas County Auditor’s Office.
13
PROPERTY TAX LEGISLATION
During the 2013 legislative session, the Iowa General Assembly enacted Senate File 295 (the “Act”), which the
Governor signed into law on June 12, 2013. Among other things, the Act (i) reduced the maximum annual taxable
value growth percent, due to revaluation of existing residential and agricultural property to 3%, (ii) assigned a
“rollback” (the percentage of a property’s value that is subject to tax) to commercial, industrial and railroad property of
90%, (iii) created a new property tax classification for multi-residential properties (mobile home parks, manufactured
home communities, land-lease communities, assisted living facilities and property primarily used or intended for human
habitation containing three or more separate dwelling units) (“Multiresidential Property”), and assigned a declining
rollback percentage of 3.75% to such properties for each year until the 2021 assessment year (the rollback percentage
for Multiresidential Properties is equal to the residential rollback percentage in the 2022 assessment year and thereafter)
and (iv) exempted a specified portion of the assessed value of telecommunication properties.
The Act included a standing appropriation to replace some of the tax revenues lost by local governments, including tax
increment districts, resulting from the new rollback for commercial and industrial property. Beginning in Fiscal Year
2017-18 the standing appropriation cannot exceed the actual Fiscal Year 2016-17 appropriation amount. The
appropriation does not replace losses to local governments resulting from the Act’s provisions that reduce the annual
revaluation growth limit for residential and agricultural properties to 3%, the gradual transition for Multiresidential
Property to the residential rollback percentage, or the reduction in the percentage of telecommunications property that is
subject to taxation.
Given the wide scope of the statutory changes, and the State of Iowa’s discretion in establishing the annual replacement
amount that is appropriated each year commencing in Fiscal Year 2017-18, the impact of the Act on the City’s future
property tax collections is uncertain and the City is unable to accurately assess the financial impact of the Act’s
provisions on the City’s future operations.
Notwithstanding any decrease in property tax revenues that may result from the Act, Iowa Code section 76.2 provides
that when an Iowa political subdivision issues general obligation bonds, “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 twenty years. 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.”
From time to time, other legislative proposals may be considered by the Iowa General Assembly that would, if enacted,
alter or amend one or more of the property tax matters described in this Preliminary Official Statement. It cannot be
predicted whether or in what forms any of such proposals may be enacted, and there can be no assurance that such
proposals will not apply to valuation, assessment or levy procedures for the levy of taxes by the City.
14
CITY INDEBTEDNESS
DEBT LIMIT
Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county,
municipality or other political subdivision to no more than 5% of the actual value of all taxable property within the
corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2016 actual
valuation currently applicable to the Fiscal Year 2017-18, is as follows:
2016 Actual Valuation of Property $1,610,592,237
Legal Debt Limit of 5% 0.05
Legal Debt Limit $80,529,612
Less: G.O. Debt Subject to Limit (71,572,931) *
Less: Urban Renewal Revenue Debt Subject to Limit (505,000)
Less: G.O. Equipment Leases (68,041)
Less: Rebate Agreements (350,000) 1)
Net Debt Limit $8,033,640 *
1) As reported by the City pursuant to development agreements for urban renewal projects under the authority of Iowa Code
Chapter 403. The Iowa Supreme Court has not formally ruled on the question of whether contracts to rebate the tax increment
generated by a particular development constitutes indebtedness of a City for constitutional debt limit purposes. The amount
above includes rebate agreements that may not be debt.
DIRECT DEBT
General Obligation Debt Paid by Taxes, Tax Increment and LOST Revenues (Includes the Bonds)
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 6/19/18
6/10A $1,435,000 Corporate Purpose 6/22 $530,000
6/12A 2,013,000 Refunding 6/20 205,000
6/12B 4,220,000 Refunding 6/21 1,705,000
12/12D 3,745,000 Urban Renewal 6/21 1,305,000
5/13B 3,280,000 Corporate Purpose 6/28 1,760,000
5/13C 2,265,000 Urban Renewal Refunding 6/20 565,000
12/13D 6,190,000 Urban Renewal 6/21 2,415,000
12/14 21,560,000 Urban Renewal 6/34 19,580,000
11/15 7,340,000 Corporate Purpose & Refunding 6/30 5,105,000
9/16B 1,720,000 Refunding 6/22 1,135,000
5/17A 13,940,000 Corporate Purpose & Urban Renewal 6/36 13,460,000
6/18A 19,775,000* Corporate Purpose & Urban Renewal 6/38 19,775,000*
Subtotal $67,540,000*
* Preliminary; subject to change.
General Obligation Bonds Paid by Sewer, Water, and Storm Water Revenues
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 6/19/18
6/10B $1,745,000 Water & Sewer Projects 6/21 $535,000
12/13D 2,550,000 Stormwater Projects 6/33 2,010,000
12/14 1,735,000 Water Projects 6/30 1,360,000
Subtotal $3,905,000
15
General Obligation Bonds Paid by Golf Course Revenues
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 6/19/18
2/16 $279,990 Golf Course 6/20 $127,931
Total G.O. Debt Subject to Limit $71,572,931*
Urban Renewal Revenue Bonds
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 6/19/18
6/10C $1,590,000 Urban Renewal Project 6/21 $505,000
Annual Fiscal Year G.O. Debt Service Payments Paid by Taxes, Tax Increment and LOST Revenues (Includes
the Bonds)
Current Outstanding Bonds Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
Principal*
Principal &
Interest*
Principal*
Principal &
Interest*
2018-19 $5,260,000 $6,622,935 $845,000 $1,470,955 $6,105,000 $8,093,890
2019-20 5,125,000 6,356,559 850,000 1,489,043 5,975,000 7,845,602
2020-21 5,060,000 6,160,976 875,000 1,492,368 5,935,000 7,653,344
2021-22 2,250,000 3,222,290 900,000 1,494,180 3,150,000 4,716,470
2022-23 2,075,000 2,993,790 920,000 1,489,430 2,995,000 4,483,220
2023-24 2,080,000 2,940,015 945,000 1,487,750 3,025,000 4,427,765
2024-25 2,075,000 2,877,190 975,000 1,489,400 3,050,000 4,366,590
2025-26 2,130,000 2,877,165 1,005,000 1,489,175 3,135,000 4,366,340
2026-27 2,190,000 2,873,265 1,035,000 1,486,513 3,225,000 4,359,778
2027-28 2,150,000 2,767,565 1,070,000 1,486,840 3,220,000 4,254,405
2028-29 2,110,000 2,663,065 1,110,000 1,490,460 3,220,000 4,153,525
2029-30 2,745,000 3,233,225 1,150,000 1,492,165 3,895,000 4,725,390
2030-31 2,075,000 2,478,881 1,190,000 1,491,340 3,265,000 3,970,221
2031-32 2,150,000 2,490,356 1,230,000 1,488,500 3,380,000 3,978,856
2032-33 2,235,000 2,507,506 1,280,000 1,493,605 3,515,000 4,001,111
2033-34 2,330,000 2,530,600 815,000 981,245 3,145,000 3,511,845
2034-35 1,825,000 1,948,438 845,000 981,090 2,670,000 2,929,528
2035-36 1,900,000 1,964,125 880,000 984,403 2,780,000 2,948,528
2036-37 910,000 980,963 910,000 980,963
2037-38 945,000 981,383 945,000 981,383
Total $47,765,000 $19,775,000* $67,540,000*
* Preliminary; subject to change.
16
Annual Fiscal Year G.O. Debt Service Payments Paid by Sewer, Water, and Storm Water Revenues
Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
2018-19 $370,000 $502,139
2019-20 385,000 504,699
2020-21 395,000 501,329
2021-22 215,000 307,319
2022-23 225,000 310,819
2023-24 230,000 308,744
2024-25 240,000 312,394
2025-26 245,000 310,613
2026-27 255,000 312,938
2027-28 265,000 314,613
2028-29 275,000 315,788
2029-30 285,000 316,288
2030-31 165,000 186,025
2031-32 175,000 189,425
2032-33 180,000 187,425
Total $3,905,000
Annual Fiscal Year G.O. Debt Service Payments Paid by Golf Course Revenues
Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
2018-19 $63,092 $66,179
2019-20 64,839 66,179
Total $127,931
Annual Fiscal Year Urban Renewal Revenue Debt Service Payments Paid by TIF Revenues
Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
2018-19 $160,000 $179,045
2019-20 170,000 183,285
2020-21 175,000 181,825
Total $505,000
17
REVENUE DEBT
The City has outstanding revenue debt payable from the gas utilities, special assessments and golf course revenues as
follows:
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 6/19/18
5/09C 362,000 Special Assess. Sewer Improvement 12/18 $46,000
3/15 2,632,000 Gas Revenue (Private Placement) 6/22 1,572,000
6/16A 640,000 Storm Water Improv. (Private Placement) 6/26 520,000
2/16 572,339 Golf Course Purchase Refunding 12/20 436,190
Total $2,574,190
Water Utility Revenue Debt
City Issued Water Revenue Debt Paid by Water Utility (Includes the 2018B Bonds):
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 6/19/18
9/12C $2,625,000 Water Improvements 6/32 $2,005,000
7/15B 1,450,000 Water Improvements 6/27 1,120,000
6/18B 3,410,000 * Water Improvements 6/38 3,410,000 *
Subtotal $6,535,000
Sewer Utility Revenue Debt
City Issued Revenue Debt Supported by Sewer Utility Revenues (Includes the 2018C Bonds)
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 6/19/18
03/13A $1,185,000 Sewer Improvements 6/24 $685,000
12/16C 2,685,000 Sewer Improvements 6/36 2,685,000
9/17 12,537,000 Sewer Imp. (SRF Loan) 6/38 12,537,000 1)
6/18C 3,565,000* Sewer Improvements 6/38 3,565,000*
7/18 3,040,000* Sewer Imp. (SRF Loan) 6/39 3,040,000*2)
Total: $22,512,000*
1) Based on preliminary debt service schedule established prior to final project draws. The City has drawn $4,950,333 as of the date
of this Preliminary Official Statement.
2) As of the date of the Preliminary Official Statement the City is in the process of issuing the Sewer Revenue Capital Loan Notes
(“2018 SRF Notes”). Closing is anticipated in July 2018 and subject to change. The information for this loan is based on
preliminary debt service schedule established prior to final project draws. The City has drawn $0 as of the date of this
Preliminary Official Statement.
18
Other Sewer Utility Revenue Debt
Des Moines Metropolitan Wastewater Reclamation Authority (“WRA”) Existing Payment Obligations:
The City is a member of the Des Moines Metropolitan Wastewater Reclamation Authority (WRA) and has entered into
a financing agreement with the WRA to provide for the City’s share of capital contribution for the construction and
ongoing expansion of a metropolitan wastewater system. The City is responsible for a portion of the WRA sewer
revenue debt payable from the revenues of their Sewer Enterprise System; its responsibilities pursuant to the WRA
Financing Agreement stand as nearly as practicable on a parity and equality of rank with the City’s direct sewer revenue
notes and parity obligations, if any. The City’s share of the WRA debt is as follows:
Date
of Issue
Allocated/
Original
Amount Purpose
Final
Maturity
Principal
Outstanding
As of 6/19/18
06/08A $477,428 Sewer Improvements (SRF Loan) 6/39 $433,198 1)
06/08B 312,970 Sewer Improvements (SRF Loan) 6/39 279,470 2)
06/08D 126,140 Sewer Improvements (SRF Loan) 6/38 108,507 3)
3/09B 388,920 Sewer Improvements (SRF Loan) 6/39 359,765 4)
7/09C 425,960 Sewer Improvements (SRF Loan) 6/39 393,958 5)
4/10A 233,750 Sewer Improvements (SRF Loan) 6/40 231,842 6)
4/10B 324,100 Sewer Improvements (SRF Loan) 6/40 309,588 7)
6/10C-1 37,200 Sewer Improvements (SRF Loan) 6/32 44,865 8)
6/10C-2 389,150 Sewer Improvements (SRF Loan) 6/32 359,010 9)
3/11B 739,461 Sewer Improvements (SRF Loan) 6/41 729,587 10)
5/11A 1,046,925 Sewer Improvements (SRF Loan) 6/42 1,196,820 11)
5/11C 259,564 Sewer Improvements (SRF Loan) 6/41 269,933 12)
12/11D 378,144 Sewer Improvements (SRF Loan) 6/43 457,515 13)
5/12B 130,229 Sewer Improvements (SRF Loan) 6/42 129,996 14)
5/12C 303,660 Sewer Improvements (SRF Loan) 6/43 368,820 15)
5/12D 118,090 Sewer Improvements (SRF Loan) 6/42 139,590 16)
11/12E 577,854 Sewer Improvements (SRF Loan) 6/43 590,752 17)
11/12F 67,087 Sewer Improvements (SRF Loan) 6/43 68,544 18)
11/12G 592,020 Sewer Improvements (SRF Loan) 6/44 730,026 19)
4/13A 141,680 Sewer Improvements (SRF Loan) 6/43 158,670 20)
6/13B 1,717,863 Sewer Revenue Refunding Bonds 6/34 1,700,025 21)
1/14A 35,820 Sewer Improvements (SRF Loan) 6/34 33,638 22)
2/14C 268,488 Sewer Improvements (SRF Loan) 6/34 247,501 23)
2/14D 179,040 Sewer Improvements (SRF Loan) 6/34 169,565 24)
1/15A 307,768 Sewer Improvements (SRF Loan) 6/35 262,980 25)
1/15B 8,105 Sewer Improvements (SRF Loan) 6/34 6,908 26)
1/15C 85,792 Sewer Improvements (SRF Loan) 6/35 80,507 27)
5/15E 1,178,866 Sewer Revenue Refunding Bonds 6/36 1,077,496 28)
2/16A 178,858 Sewer Improvements (SRF Loan) 6/35 155,160 29)
12/16E 34,886 Sewer Improvements (SRF Loan) 6/36 30,752 30)
12/16F 706,400 Sewer Improvements (SRF Loan) 6/48 706,400 31)
12/17A 855,380 Sewer Improvements (SRF Loan) 6/49 855,380 32)
5/18A 179,088 Sewer Improvements (SRF Loan) 6/49 179,088 33)
Total $12,865,856
The amounts above represent the City’s share of the par amount for various issues. Other participating communities
within the WRA pay the remaining amounts. Flow-based allocations are subject to change on an annual basis; as such
the amount outstanding may be greater than the amount issued due to fluctuations in flow.
(Continued on next page)
19
1) The City’s flow-based share of the WRA’s Series 2008A SRF Loan outstanding in the amount of $13,272,000.
2) The City’s flow-based share of the WRA’s Series 2008B SRF Loan outstanding in the amount of $5,280,000.
3) The City’s flow-based share of the WRA’s Series 2008D SRF Loan outstanding in the amount of $2,050,000.
4) The City’s flow-based share of the WRA’s Series 2009B SRF loan outstanding in the amount of $6,797,000.
5) The City’s flow based share of the WRA’s Series 2009C SRF loan outstanding in the amount of $7,443,000.
6) The City’s flow based share of the WRA’s Series 2010A SRF loan outstanding in the amount of $7,103,000.
7) The City’s flow based share of the WRA’s Series 2010B SRF loan outstanding in the amount of $5,849,000.
8) The City’s flow based share of the WRA’s Series 2010C-1 SRF loan outstanding in the amount of $1,994,000.
9) The City’s flow based share of the WRA’s Series 2010C-2 SRF loan outstanding in the amount of $15,956,000.
10) The City’s flow based share of the WRA’s Series 2011B SRF loan outstanding in the amount of $13,784,000.
11) The City’s flow based share of the WRA’s Series 2011A SRF loan outstanding in the amount of $53,192,000.
12) The City’s flow based share of the WRA’s Series 2011C SRF loan outstanding in the amount of $8,270,000.
13) The City’s flow based share of the WRA’s Series 2011D SRF loan outstanding in the amount of $14,017,000.
14) The City’s flow based share of the WRA’s Series 2012B SRF loan outstanding in the amount of $2,456,000.
15) The City’s flow based share of the WRA’s Series 2012C SRF loan outstanding in the amount of $16,392,000.
16) The City’s flow based share of the WRA’s Series 2012D SRF loan outstanding in the amount of $6,204,000.
17) The City’s flow based share of the WRA’s Series 2012E SRF loan outstanding in the amount of $11,161,000.
18) The City’s flow based share of the WRA’s Series 2012F SRF loan outstanding in the amount of $1,295,000.
19) The City’s flow based share of the WRA’s Series 2012G SRF loan outstanding in the amount of $22,366,000.
20) The City’s flow based share of the WRA’s Series 2013A SRF loan outstanding in the amount of $7,052,000.
21) The City’s flow based share of the WRA’s Series 2013B outstanding in the amount of $48,730,000.
22) The City’s flow based share of the WRA’s Series 2014A SRF loan outstanding in the amount of $1,495,000.
23) The City’s flow based share of the WRA’s Series 2014C SRF loan outstanding in the amount of $4,676,000.
24) The City’s flow based share of the WRA’s Series 2014D SRF loan outstanding in the amount of $5,195,000.
25) The City’s flow based share of the WRA’s Series 2015A SRF loan outstanding in the amount of $8,057,000.
26) The City’s flow based share of the WRA’s Series 2015B SRF loan outstanding in the amount of $307,000.
27) The City’s flow based share of the WRA’s Series 2015C SRF loan outstanding in the amount of $1,521,000.
28) The City’s flow based share of the WRA’s Series 2015E outstanding in the amount of $29,665,000.
29) The City’s flow based share of the WRA’s Series 2016A SRF loan outstanding in the amount of $6,896,000.
30) The City’s flow based share of the WRA’s Series 2016E SRF loan outstanding in the amount of $581,000.
31) The City’s flow based share of the WRA’s Series 2016F SRF loan outstanding in the amount of $40,000,000.
32) The City’s flow based share of the WRA’s Series 2017A SRF loan outstanding in the amount of $38,000,000.
33) The City’s flow based share of the WRA’s Series 2018A SRF loan outstanding in the amount of $4,200,000.
OVERLAPPING DEBT
Taxing District
1/1/2017
Taxable
Valuation 1)
Portion of Taxable
Valuation in City
Percent
In City
G.O. Debt 2)
City’s
Proportionate
Share
Dallas County $6,156,360,236 $1,110,524,388 3) 18.04% $17,190,000 $3,101,076
Waukee CSD 4,433,251,199 1,106,821,964 4) 24.97% 75,825,000 18,933,503
Van Meter CSD 243,517,470 3,702,424 5) 1.52% 7,815,000 118,788
Des Moines Area
Community College 47,685,435,379 1,110,524,388 3) 2.33% 74,205,000 1,728,977
City’s Share of Total Overlapping Debt $23,882,344
1) Taxable Valuation is less military exemption and includes Ag. Land & Ag. Buildings, Taxable TIF Increment and all Utilities.
2) Includes general obligation bonds, PPEL notes, certificates of participation and new jobs training certificates.
3) Includes City-exempt Phase In and Phase In Ag valuations in the amount of $324,695.
4) Includes City-exempt Phase In and Phase In Ag valuations in the amount of $268,283.
5) Includes City-exempt Phase In and Phase In Ag valuations in the amount of $56,412.
20
DEBT RATIOS
G.O. Debt
Debt/Actual
Market Value
($1,844,334,937) 1)
Debt/17,945 2)
Population
Total General Obligation Debt $71,572,931* 3.88%* $3,988.46*
Less: General Obligation Debt paid by
Water, Sewer and Stormwater (3,905,000)
Net General Obligation Debt $67,667,931* 3.67%* $3,770.85*
Total Urban Renewal Revenue Debt $505,000 0.03% $28.14
City’s Share of Total Overlapping Debt $23,882,344 1.29% $1,330.86
1) Based on 1/1/2017 Actual Value. Includes Ag. Land, Ag. Buildings, TIF Increment and all Utilities.
2) Population based on the U.S. Census Bureau’s 2015 Special Census.
* Preliminary; subject to change.
LEVIES AND TAX COLLECTIONS
Fiscal Year
Levy 1)
Collected During
Collection Year 1)
Percent
Collected
2013-14 $10,789,629 $10,734,914 99.5%
2014-15 11,494,859 11,538,128 100.4%
2015-16 12,462,647 12,792,344 102.6%
2016-17 13,326,239 13,625,050 102.2%
2017-18 15,401,347 ----------- In process of collection -----------
1) Totals include TIF, utility replacement and mobile home taxes.
Collections include delinquent taxes from all prior years. Taxes in Iowa are delinquent each October 1 and April 1 and
a late payment penalty of 1% per month of delinquency is enforced as of those dates. If delinquent taxes are not paid,
the property may be offered at the regular tax sale on the third Monday of June following the delinquency date.
Purchasers at the tax sale must pay an amount equal to the taxes, special assessments, interest and penalties due on the
property and funds so received are applied to taxes. A property owner may redeem from the regular tax sale but, failing
redemption within three years, the tax sale purchaser is entitled to a deed, which in general conveys the title free and
clear of all liens except future tax installments.
Source: Dallas County Auditor’s Office and the Iowa Department of Management
TAX RATES
FY 2013-14
$/$1,000
FY 2014-15
$/$1,000
FY 2015-16
$/$1,000
FY 2016-17
$/$1,000
FY 2017-18
$/$1,000
Dallas County 3.87452 3.82607 3.86494 3.98887 3.90713
City of Waukee 13.50000 13.50000 13.50000 13.50000 13.50000
Waukee Comm. School District 16.57669 16.57427 16.69522 17.64874 17.85545
State of Iowa 0.00330 0.00330 0.00330 0.00330 0.00310
County Assessor 0.31134 0.31423 0.31371 0.32072 0.27309
County Ag. Extension 0.08087 0.08002 0.07934 0.07569 0.06979
Dallas County Hospital 0.54517 0.57912 0.54042 0.54055 0.54001
Des Moines Area Community
College 0.69120 0.65724 0.67574 0.72334 0.67458
Walnut Cemetery 0.00000 0.04446 0.03000 0.01000 0.00000
Total Tax Rate City Resident 35.58309 35.57871 35.70267 36.81121 36.82315
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LEVY LIMITS
A city’s general fund tax levy is limited to $8.10 per $1,000 of taxable value, with provision for an additional $0.27 per
$1,000 levy for an emergency fund which can be used for general fund purposes (Code of Iowa, Chapter 384,
Division I). Cities may exceed the $8.10 limitation upon authorization by a special levy election. Further, there are
limited special purpose levies, which may be certified outside of the above-described levy limits (Code of Iowa, Section
384.12). The amount of the City’s general fund levy subject to the $8.10 limitation is $8.10 for Fiscal Year 2017-18.
The City does levy a portion of costs for employee benefits in addition to the $8.10 general fund limit as authorized by
law. Currently, the City does not levy for an emergency fund. Debt service levies are not limited.
FUNDS ON HAND (Cash and Investments as of February 28, 2018)
General Checking $10,658,405.36
Park Land Fees 592,576.55
Sewer Fund 4,592,439.78
Sewer Sinking Funds 242,771.63
Water Fund 5,921,781.81
Water Sinking Funds 193,577.64
GO Debt Sinking Funds 4,388,823.57
Capital Projects 12,350,114.21
Water/Sewer Bond & Note Reserve 807,132.97
Gas Fund 2,972,201.20
Gas Fund Sinking Funds 291,866.89
Storm Water Fund 1,133,623.72
Storm Water Sinking Funds 49,480.00
Golf Course Fund (859,324.86)1)
Golf Course Sinking Funds 55,201.44
Golf Course Bond Reserve Fund 57,341.72
Equipment Reserve Fund 211,609.50
Total Cash and Investments $43,659,623.13
1) Deficit will be eliminated by $164,585 FEMA Grant receivable and future course revenues.
22
THE CITY
CITY GOVERNMENT
The City of Waukee, Iowa (the “City”) was incorporated in 1878 and comprises approximately 13,000 land acres, or 21
square miles. The City operates under a Mayor-Council-Clerk/Administrator form of government consisting of a five
member City Council and a Mayor who is a non-voting member. The full-time City Administrator is responsible for
administrative details and financial records.
EMPLOYEES AND PENSIONS
The City currently has 100 full-time and an estimated 80 part-time employees (including seasonal employees). In
addition, the City has approximately 25 paid on call/volunteer fire/EMS employees. The City participates in a statewide
employee retirement system, the Iowa Public Employees Retirement System (“IPERS”). Membership is mandatory for
employees for the City, except for those covered by another retirement system.
Iowa Public Employees Retirement System: The City contributes to IPERS, which is a cost-sharing, multiple-employer,
contributory defined benefit public employee retirement system administered by IPERS. IPERS provides retirement
and death benefits, which are established by state statute, to plan members and beneficiaries. IPERS is authorized to
adjust the total contribution rate up or down each year, by no more than 1 percentage point, based upon the actuarially
required contribution rate. The City’s contributions to IPERS for the Fiscal Years ended June 30, 2015, 2016 and 2017,
as shown below, equal the required contributions for each year.
FY 2014-15 FY 2015-16 FY 2016-17
IPERS Contributions $549,925 $577,811 $641,309
On March 24, 2017, IPERS Investment Board voted to approve changes to economic assumptions used in calculating
IPERS’ liabilities. This action followed an economic assumption study presentation by the consulting actuarial firm of
Cavanaugh Macdonald of Bellevue, NE.
The new assumptions are:
Inflation drops from 3 percent to 2.6 percent
Interest on member accounts drops from 3.75 percent to 3.5 percent
Investment return drops from 7.5 percent to 7 percent
Wage growth drops from 4 percent to 3.25 percent
Payroll growth drops from 4 percent to 3.25 percent
The study applied these assumptions to the 2016 data to illustrate their impact on key funding measurements. The
funded ratio is a “snapshot in time” and indicates the financial health of a pension system. Using the new assumptions,
with the 2016 data, IPERS’ funded ratio dropped from 84 percent to 80 percent. These assumptions were first applied
in the June 30, 2017 valuation, which will be used to determine the contribution rates effective July 1, 2018.
The net result of these changes will be a lower funded ratio and an increase in liabilities of $1.4 billion. Even though
these changes will have a negative impact on IPERS’ funded ratio, the Investment Board believes that these
modifications will provide a more accurate valuation of future liabilities. Each year an investment return is less than the
assumed return adds to the liability and increases the needed return in future years which can lead to even higher
contribution rates.
The IPERS Comprehensive Annual Financial Report (“CAFR”) is available on the IPERS website,
https://www.ipers.org/financial-and-investment, or by contacting IPERS at 7401 Register Drive P.O. Box 9117, Des
Moines, IA 50321.
Bond Counsel, the City and the Municipal 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 the State Auditor’s website or links to other
Internet sites accessed through the IPERS website.
23
Pursuant to Governmental Accounting Standards Board (“GASB”) Statement No. 68, the City reported a liability of
$3,810,332 within its Independent Auditor’s Reports as of June 30, 2017 for its proportionate share of the net pension
liability. The net pension liability is the amount by which the total actuarial liability exceeds the pension plan’s net
assets or fiduciary net position (essentially the market value) available for paying benefits. The net pension liability was
measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined
by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s share
of contributions to the pension plan relative to the contributions of all IPERS participating employers. At June 30,
2016, the City’s proportion was 0.060546% which was an increase of 0.007159% from its proportion measured as of
June 30, 2015.
For additional information on the City’s Pension Plan, refer to Note 7 – PENSION PLAN, beginning on page 41 of the
City’s June 30, 2017 Independent Auditor’s Reports included as Appendix B of this Preliminary Official Statement.
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
The City operates a single-employer retiree benefit plan which provides healthcare benefits for retirees and their spouses
and dependents. There are both active and retired members in the plan. Participants must be age 55 or older at
retirement.
The healthcare benefit plans are self-insured and are administered by a third party. The benefits are provided in the
form of an implicit rate subsidy where retirees under the age of 65 receive health insurance coverage by paying a
combined retiree/active rate which results in an implicit rate subsidy and other OPEB liability. The City currently
finances the retiree benefit plan on a pay-as-you-go basis.
The City’s annual OPEB cost is calculated based on the annual required contribution (the “ARC”) of the City, an
amount actuarially determined in accordance with GASB Statement No. 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities over a period not to exceed 30 years. The following table shows the components of the City’s annual OPEB
cost for the Fiscal Year ended June 30, 2017, the amount actually contributed to the plan and changes in the City’s net
OPEB obligation:
Annual required contribution, ARC $56,000
Interest on net OPEB obligation 18,976
Adjustment to annual required contribution (17,251)
Annual OPEB cost $57,725
Contributions made 0
Increase in net OPEB obligation $57,725
Net OPEB obligation, beginning of year 474,397
Net OPEB obligation, end of year $532,122
For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end of year net
OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially determined funding
requirements and the actual contributions for the Fiscal Year ended June 30, 2017.
For the Fiscal Year ended June 30, 2017, the City made no contributions to the plan. The City’s annual OPEB cost, the
percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation are summarized as follows:
Fiscal Year Ended
Annual
OPEB Cost
Percentage of
Annual OPEB
Cost Contribution
Net OPEB
Obligation
June 30, 2015 $57,308 0.0% $416,881
June 30, 2016 57,516 0.0% 474,397
June 30, 2017 57,725 0.0% 532,122
24
As of July 1, 2014, the most recent actuarial valuation date for the period July 1, 2016 through June 30, 2017, the
actuarial accrued liability was $275,000 with no actuarial value of assets, resulting in an unfunded actuarial accrued
liability (UAAL) of $275,000. The covered payroll (annual payroll of active employees covered by the plan) was
approximately $6,900,000, and the ratio of the UAAL to the covered payroll was 4.0%. As of June 30, 2017, there were
no trust fund assets.
For additional information on the City’s OPEB, refer to Note 15 – OTHER POSTEMPLOYMENT BENEFITS
(OPEB), beginning on page 49 of the City’s June 30, 2017 Independent Auditor’s Reports included as Appendix B of
this Preliminary Official Statement.
UNION CONTRACTS
The City currently has one negotiated contract with the Communications Workers of America, which expires on
June 30, 2021.
INSURANCE
The City’s insurance coverage is as follows:
Type of Insurance Coverage
Municipal Property Coverage Replacement
Buildings $41,297,265
Contents $3,005,450
Book Collection $1,575,000
Miscellaneous Property $2,800,118
EDP Hardware $684,562
EDP Software $104,329
Vehicles $6,715,536
Municipal Automobile Physical Damage
Comprehensive Coverage Actual Cash Value
Collision Coverage Actual Cash Value
Municipal General Liability $8,000,000
Wrongful Acts Liability $8,000,000
Law Enforcement Liability $8,000,000
Municipal Automobile Liability $8,000,000
Boiler and Machinery $1,500,000
Public Employee Dishonesty $2,000,000
Standard Workers’ Compensation (Includes Volunteer Firemen) Statutory
25
GENERAL INFORMATION
LOCATION AND TRANSPORTATION
The City is located in central Iowa, approximately 16 miles northwest of Des Moines. The City is located near U.S.
Interstate Highways No. 35 and 80. U.S. Highway No. 6 passes directly through the community. Commercial airline
service is available at the Des Moines International Airport.
LARGER EMPLOYERS
A representative list of larger employers in the City is as follows:
Employer
Type of Business
Approximate
Number of Employees 1)
Waukee Community School District Education 1,182 2)
Ultimate Nursing Services Healthcare 675
Hy-Vee Grocery Store 446
Waukee Family YMCA Family Recreation & Health Center 365
Holmes Murphy & Assoc. Insurance 344
Quad Graphics Waukee Printing 220
City of Waukee City Government 205
Gilcrest/Jewett Lumber Company Lumber, Windows, Doors 145
Stivers Ford Automobile Sales and Service 105
1) Includes full time, part time, and seasonal employees.
2) Does not include approximately 500 part-time teacher substitutes and associates.
Source: The City of Waukee, Greater Dallas County Development Alliance, Waukee Community School District, and company
inquiries.
Some additional major employers in the Des Moines metropolitan area include, but are not limited to the following:
Employer
Type of Business
Approximate
Number of Employees
Wells Fargo Financial Services 14,500
1)
State of Iowa State Government 7,700
2)
Mercy Hospital Medical Center Healthcare (Hospitals and Clinics)7,055
UnityPoint Health Healthcare 7,797
Hy-Vee, Inc. Grocery and drugstore chain 6,400
Principal Financial Group Insurance 6,182
Des Moines Public Schools Education 5,287 3)
Nationwide/Allied Insurance Insurance 4,442
DuPont Pioneer Agribusiness 2,495
John Deere Companies Agricultural Machinery & Consumer Financial Services 3,089 4)
Kum & Go Convenience Store Chain 2,043
1) Includes both Wells Fargo Banks and Wells Fargo Financial.
2) Total is for the Greater Des Moines metropolitan statistical area which includes Dallas, Guthrie, Madison, Polk and Warren
counties.
3) Total does not include substitute teachers.
4) Includes both John Deere Des Moines Works and John Deere Credit Company.
Source: The Greater Des Moines Partnership. The list is updated frequently as changes are identified and is not to be construed as
a complete profile.
26
BUILDING PERMITS
City officials report the following construction activity as of February 28, 2018. Building permits are reported on a
calendar year basis. The figures below include both new construction and remodeling.
2014 2015 2016 2017 2018
Single Family Homes:
No. of new homes: 294 461 549 366 22
Valuation: $83,714,389 $130,620,802 $134,959,212 $95,872,698 $6,330,325
No. of Multi-Family: 14 4 14 21 0
Valuation: $30,234,990 $18,213,385 $41,470,718 $83,287,282 $0
Commercial/Industrial/Other:
No. of new buildings: 41 39 39 51 2
Valuation: $6,426,386 $3,142,605 $28,434,455 $21,502,390 $16,247,883
Other: 298 296 522 567 65
Valuation: $1,859,337 $2,486,646 $4,298,013 $2,775,034 $956,746
Total Permits 647 800 1,124 1,005 89
Total Valuations $122,235,102 $154,463,438 $209,162,398 $203,437,404 $23,534,954
U.S. CENSUS DATA
Population Trend: 1990 U.S. Census 2,512
2000 U.S. Census 5,126
2010 U.S. Census 13,790
2015 U.S. Special Census 17,945
Source: U.S. Census Bureau website.
UNEMPLOYMENT RATES
Dallas
County
State
of Iowa
Annual Averages: 2014 3.3% 4.2%
2015 2.9% 3.8%
2016 2.6% 3.6%
2017 2.1% 3.1%
2018 January 2.3% 3.6%
Source: Iowa Workforce Development Center
EDUCATION
The Waukee Community School District (the “District”) provides public education with an October 2017 certified
enrollment for the 2018-19 school year of 10,599.7. The District currently has 1,182 full-time and part-time employees
and approximately 500 additional part-time teacher substitutes and associates. The District owns and operates eight
elementary schools, one fifth grade school, two middle schools, two eighth-ninth grade schools, and one high school
which includes the Innovation and Learning Center.
27
FINANCIAL SERVICES
Financial services for residents of the City are provided by branch offices of Charter Bank, Community State Bank,
N.A., First American Bank, People’s Trust & Savings Bank, Wells Fargo Bank, N.A. and West Bank. The branch
offices of Charter Bank, First American Bank, and Wells Fargo Bank, N.A. report the following deposits as of June 30th
for each year:
Year
Charter Bank
First
American Bank
Wells Fargo
Bank, N.A.
2013 $24,685,000 $30,500,000 $34,717,000
2014 26,103,000 28,227,000 38,209,000
2015 26,748,000 26,202,000 41,399,000
2016 26,436,000 28,114,000 44,730,000
2017 27,380,000 32,839,000 51,488,000
Source: FDIC
FINANCIAL STATEMENTS
The City’s Independent Auditor’s Reports for the Fiscal Year ended June 30, 2017 are 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 Independent Auditor’s Reports may be obtained from the City’s Municipal Advisor, PFM Financial
Advisors LLC.
APPENDIX A
FORM OF LEGAL OPINION
Ahlers & Cooney, P.C.
Attorneys at Law
100 Court Avenue, Suite 600
Des Moines, Iowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
Wishard & Baily – 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, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C. – 1990
DRAFT
We hereby certify that we have examined a certified transcript of the proceedings of the
City Council and acts of administrative officers of the City of Waukee, State of Iowa (the "Issuer"),
relating to the issuance of General Obligation Bonds, Series 2018A, by said City, dated June 19,
2018, in the denomination of $5,000 or multiples thereof, in the aggregate amount of $19,775,000
(the "Bonds").
We have examined the law and such certified proceedings and other papers as we deem
necessary to render this opinion as bond counsel.
As to questions of fact material to our opinion, we have relied upon representations of the
Issuer contained in the resolution authorizing issuance of the Bonds (the "Resolution") and in the
certified proceedings and other certifications of public officials furnished to us, without
undertaking to verify the same by independent investigation.
Based on our examination and in reliance upon the certified proceedings and other
certifications described above, we are of the opinion, under existing law, as follows:
1. The Issuer is duly created and validly existing as a body corporate and politic and
political subdivision of the State of Iowa with the corporate power to adopt and perform the
Resolution and issue the Bonds.
2. The Bonds are valid and binding general obligations of the Issuer.
3. All taxable property in the territory of the Issuer is subject to ad valorem taxation
without limitation as to rate or amount to pay the Bonds. Taxes have been levied by the Resolution
for the payment of the Bonds and the Issuer is required by law to include in its annual tax levy the
principal and interest coming due on the Bonds to the extent the necessary funds are not provided
from other sources.
4. Interest on the Bonds is excludable from gross income for federal income tax
purposes and is not an item of tax preference for purposes of the federal alternative minimum tax;
however, such interest is taken into account in determining adjusted current earnings for the
purpose of computing the alternative minimum tax imposed on certain corporations for taxable
years beginning before January 1, 2018. The opinion set forth in the preceding sentence is subject
to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986,
as amended, that must be satisfied subsequent to the issuance of the Bonds in order that the interest
thereon be, and continue to be, excludable from gross income for federal income tax purposes.
The Issuer has covenanted to comply with all such requirements. Failure to comply with certain
of such requirements may cause interest on the Bonds to be included in gross income for federal
income tax purposes retroactively to the date of issuance of the Bonds.
DRAFT
City of Waukee, State of Iowa
$19,775,000 General Obligation Bonds, Series 2018A
Page 2
We express no opinion regarding the accuracy, adequacy, or completeness of the Official
Statement or other offering material relating to the Bonds. Further, we express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth
herein.
The rights of the owners of the Bonds and the enforceability of the Bonds are limited by
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors'
rights generally, and by equitable principles, whether considered at law or in equity.
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention, or any changes in law that may hereafter occur.
Respectfully submitted,
01469191-1\21938-157
APPENDIX B
JUNE 30, 2017 INDEPENDENT AUDITOR’S REPORTS
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APPENDIX C
FORM OF CONTINUING DISCLOSURE CERTIFICATE
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CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the City of Waukee, State of Iowa (the "Issuer"), in connection with the issuance of
$19,775,000 General Obligation Bonds, Series 2018A (the "Bonds") dated June 19, 2018. The
Bonds are being issued pursuant to a Resolution of the Issuer approved on June 4, 2018 (the
"Resolution"). The Issuer covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being
executed and delivered by the Issuer for the benefit of the Holders and Beneficial Owners of the
Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-
12(b)(5).
Section 2. Definitions. In addition to the definitions set forth in the Resolution, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Financial Information" shall mean financial information or operating data of the
type included in the final Official Statement, provided at least annually by the Issuer pursuant to,
and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly,
to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons
holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the
owner of any Bonds for federal income tax purposes.
"Business Day" shall mean a day other than a Saturday or a Sunday or a day on which
banks in Iowa are authorized or required by law to close.
"Dissemination Agent" shall mean the Issuer or any Dissemination Agent designated in
writing by the Issuer and which has filed with the Issuer a written acceptance of such designation.
"Holders" shall mean the registered holders of the Bonds, as recorded in the registration
books of the Registrar.
"Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure
Certificate.
"Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal Securities
Rulemaking Board, 1300 I Street NW, Suite 1000, Washington, DC 20005.
"National Repository" shall mean the MSRB's Electronic Municipal Market Access
website, a/k/a "EMMA" (emma.msrb.org).
"Official Statement" shall mean the Issuer's Official Statement for the Bonds, dated
_______________, 2018.
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"Participating Underwriter" shall mean any of the original underwriters of the Bonds
required to comply with the Rule in connection with offering of the Bonds.
"Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as the same may be amended from time
to time.
"State" shall mean the State of Iowa.
Section 3. Provision of Annual Financial Information.
a) The Issuer shall, or shall cause the Dissemination Agent to, not later than two
hundred seventy (270) days after the end of the Issuer's fiscal year (presently June 30th),
commencing with information for the 2017/2018 fiscal year, provide to the National
Repository an Annual Financial Information filing consistent with the requirements of
Section 4 of this Disclosure Certificate. The Annual Financial Information filing must be
submitted in such format as is required by the MSRB (currently in "searchable PDF"
format). The Annual Financial Information filing may be submitted as a single document
or as separate documents comprising a package. The Annual Financial Information filing
may cross-reference other information as provided in Section 4 of this Disclosure
Certificate; provided that the audited financial statements of the Issuer may be submitted
separately from the balance of the Annual Financial Information filing and later than the
date required above for the filing of the Annual Financial Information if they are not
available by that date. If the Issuer's fiscal year changes, it shall give notice of such change
in the same manner as for a Listed Event under Section 5(c).
b) If the Issuer is unable to provide to the National Repository the Annual Financial
Information by the date required in subsection (a), the Issuer shall send a notice to the
Municipal Securities Rulemaking Board, if any, in substantially the form attached as
Exhibit A.
c) The Dissemination Agent shall:
i. each year file Annual Financial Information with the National Repository;
and
ii. (if the Dissemination Agent is other than the Issuer), file a report with
the Issuer certifying that the Annual Financial Information has been filed pursuant
to this Disclosure Certificate, stating the date it was filed.
Section 4. Content of Annual Financial Information. The Issuer's Annual Financial
Information filing shall contain or incorporate by reference the following:
a) The last available audited financial statements of the Issuer for the prior fiscal
year, prepared in accordance with generally accepted accounting principles promulgated
by the Financial Accounting Standards Board as modified in accordance with the
governmental accounting standards promulgated by the Governmental Accounting
3
Standards Board or as otherwise provided under State law, as in effect from time to time,
or, if and to the extent such financial statements have not been prepared in accordance with
generally accepted accounting principles, noting the discrepancies therefrom and the effect
thereof. If the Issuer's audited financial statements for the preceding years are not available
by the time Annual Financial Information is required to be filed pursuant to Section 3(a),
the Annual Financial Information filing shall contain unaudited financial statements of the
type included in the final Official Statement, and the audited financial statements shall be
filed in the same manner as the Annual Financial Information when they become available.
b) A table, schedule or other information prepared as of the end of the preceding
fiscal year, of the type contained in the final Official Statement under the caption "City
Property Valuations," "Trend of Valuations," "Larger Taxpayers," "Direct Debt,"
"Overlapping Debt," "Debt Ratios," "Levies and Tax Collections," and "Tax Rates."
Any or all of the items listed above may be included by specific reference to other documents,
including official statements of debt issues of the Issuer or related public entities, which have been
filed with the National Repository. The Issuer shall clearly identify each such other document so
included by reference.
Section 5. Reporting of Significant Events.
a) Pursuant to the provisions of this Section, the Issuer shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Bonds in
a timely manner not later than 10 Business Days after the day of the occurrence of the
event:
i. Principal and interest payment delinquencies;
ii. Non-payment related defaults, if material;
iii. Unscheduled draws on debt service reserves reflecting financial
difficulties;
iv. Unscheduled draws on credit enhancements relating to the Bonds
reflecting financial difficulties;
v. Substitution of credit or liquidity providers, or their failure to perform;
vi. Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form
5701-TEB) or other material notices or determinations with respect to the tax-
exempt status of the Series Bonds, or material events affecting the tax-exempt status
of the Bonds;
vii. Modifications to rights of Holders of the Bonds, if material;
4
viii. Bond calls (excluding sinking fund mandatory redemptions), if
material, and tender offers;
ix. Defeasances of the Bonds;
x. Release, substitution, or sale of property securing repayment of the
Bonds, if material;
xi. Rating changes on the Bonds;
xii. Bankruptcy, insolvency, receivership or similar event of the Issuer;
xiii. The consummation of a merger, consolidation, or acquisition involving
the Issuer or the sale of all or substantially all of the assets of the Issuer, other than
in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material; and
xiv. Appointment of a successor or additional trustee or the change of name
of a trustee, if material.
b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed Event,
the Issuer shall determine if the occurrence is subject to notice only if material, and if so
shall as soon as possible determine if such event would be material under applicable federal
securities laws.
c) If the Issuer determines that knowledge of the occurrence of a Listed Event is
not subject to materiality, or determines such occurrence is subject to materiality and would
be material under applicable federal securities laws, the Issuer shall promptly, but not later
than 10 Business Days after the occurrence of the event, file a notice of such occurrence
with the Municipal Securities Rulemaking Board through the filing with the National
Repository.
Section 6. Termination of Reporting Obligation. The Issuer's obligations under this
Disclosure Certificate with respect to each Series of Bonds shall terminate upon the legal
defeasance, prior redemption or payment in full of all of the Bonds of that Series or upon the
Issuer's receipt of an opinion of nationally recognized bond counsel to the effect that, because of
legislative action or final judicial action or administrative actions or proceedings, the failure of the
Issuer to comply with the terms hereof will not cause Participating Underwriters to be in violation
of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended.
Section 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate,
and may discharge any such Agent, with or without appointing a successor Dissemination Agent.
The Dissemination Agent shall not be responsible in any manner for the content of any notice or
report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination
Agent shall be the Issuer.
5
Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure
Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure
Certificate may be waived, provided that the following conditions are satisfied:
a) If the amendment or waiver relates to the provisions of Section 3(a), 4, or 5(a),
it may only be made in connection with a change in circumstances that arises from a change
in legal requirements, change in law, or change in the identity, nature or status of an
obligated person with respect to the Bonds, or the type of business conducted;
b) The undertaking, as amended or taking into account such waiver, would, in the
opinion of nationally recognized bond counsel, have complied with the requirements of the
Rule at the time of the original issuance of the Bonds, after taking into account any
amendments or interpretations of the Rule, as well as any change in circumstances; and
c) The amendment or waiver either (i) is approved by the Holders of the Bonds in
the same manner as provided in the Resolution for amendments to the Resolution with the
consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel,
materially impair the interests of the Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer
shall describe such amendment in the next Annual Financial Information filing, and shall include,
as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on
the type (or in the case of a change of accounting principles, on the presentation) of financial
information or operating data being presented by the Issuer. In addition, if the amendment relates
to the accounting principles to be followed in preparing financial statements, (i) notice of such
change shall be given in the same manner as for a Listed Event under Section 5(c), and (ii) the
Annual Financial Information filing for the year in which the change is made will present a
comparison or other discussion in narrative form (and also, if feasible, in quantitative form)
describing or illustrating the material differences between the financial statements as prepared on
the basis of the new accounting principles and those prepared on the basis of the former accounting
principles.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed
to prevent the Issuer from disseminating any other information, using the means of dissemination
set forth in this Disclosure Certificate or any other means of communication, or including any
other information in any Annual Financial Information filing or notice of occurrence of a Listed
Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to
include any information in any Annual Financial Information filing or notice of occurrence of a
Listed Event in addition to that which is specifically required by this Disclosure Certificate, the
Issuer shall have no obligation under this Certificate to update such information or include it in
any future Annual Financial Information filing or notice of occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the Issuer to comply with any provision of
this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds may take such actions as
may be necessary and appropriate, including seeking mandate or specific performance by court
order, to cause the Issuer to comply with its obligations under this Disclosure Certificate. Direct,
6
indirect, consequential and punitive damages shall not be recoverable by any person for any default
hereunder and are hereby waived to the extent permitted by law. A default under this Disclosure
Certificate shall not be deemed an event of default under the Resolution, and the sole remedy under
this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure
Certificate shall be an action to compel performance.
Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure
Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers,
directors, employees and agents, harmless against any loss, expense and liabilities which it may
incur arising out of or in the exercise or performance of its powers and duties hereunder, including
the costs and expenses (including attorneys' fees) of defending against any claim of liability, but
excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The
obligations of the Issuer under this Section shall survive resignation or removal of the
Dissemination Agent and payment of the Bonds.
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the Issuer, the Dissemination Agent, the Participating Underwriters and Holders and Beneficial
Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Date: 19th day of June, 2018.
CITY OF WAUKEE, STATE OF IOWA
By:
Mayor
ATTEST:
By:
City Clerk
EXHIBIT A
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL FINANCIAL
INFORMATION
Name of Issuer: City of Waukee, Iowa.
Name of Bond Issue: $19,775,000 General Obligation Bonds, Series 2018A
Dated Date of Issue: June 19, 2018
NOTICE IS HEREBY GIVEN that the Issuer has not provided Annual Financial
Information with respect to the above-named Bonds as required by Section 3 of the Continuing
Disclosure Certificate delivered by the Issuer in connection with the Bonds. The Issuer anticipates
that the Annual Financial Information will be filed by ____________________.
Dated: __________ day of _______________, 20___.
CITY OF WAUKEE, STATE OF IOWA
By:
Its:
01469190-1\21938-157
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OFFICIAL BID FORM
To: City Council of Sale Date: May 21, 2018
City of Waukee, Iowa 10:00 A.M. Central Time
RE: $19,775,000* General Obligation Bonds, Series 2018A (the “Bonds”)
This bid is a firm offer for the purchase of the Bonds identified in the NOTICE OF BOND SALE and TERMS OF OFFERING and on the
terms set forth in this bid form, and is not subject to any conditions, except as permitted by the NOTICE OF BOND SALE and TERMS
OF OFFERING. By submitting this bid, we confirm we have an established industry reputation for underwriting new issuance of
municipal bonds.
For all or none of the Bonds, in accordance with the NOTICE OF BOND SALE and TERMS OF OFFERING, we will pay you
$____________________________ (not less than $19,549,480) plus accrued interest to date of delivery for fully registered Bonds bearing
interest rates and maturing in the stated years as follows:
Coupon Maturity Yield Coupon Maturity Yield Coupon Maturity Yield
________ 2019 ________ ________ 2026 ________ ________ 2033 ________
________ 2020 ________ ________ 2027 ________ ________ 2034 ________
________ 2021 ________ ________ 2028 ________ ________ 2035 ________
________ 2022 ________ ________2029 ________ ________ 2036 ________
________ 2023 ________ ________2030 ________ ________ 2037 ________
________ 2024 ________ ________2031 ________ ________ 2038 ________
________ 2025 ________ ________2032 ________
* Preliminary; subject to change. The City reserves the right to increase or decrease the aggregate principal amount of the Bonds and to
increase or decrease each scheduled maturity thereof after the determination of the successful bidder. The City may increase or decrease
each maturity in increments of $5,000 but the total amount to be issued will not exceed $20,000,000. Interest rates specified by the
successful bidder for each maturity will not change. Final adjustments shall be in the sole discretion of the City.
The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal amount of the Bonds
is adjusted as described above. Any change in the principal amount of any maturity of the Bonds will be made while maintaining, as
closely as possible, the successful bidder's net compensation, calculated as a percentage of bond principal. The successful bidder may not
withdraw or modify its bid as a result of any post-bid adjustment. Any adjustment shall be conclusive, and shall be binding upon the
successful bidder.
We hereby designate that the following Bonds to be aggregated into term bonds maturing on June 1 of the following years and in
the following amounts (leave blank if no term bond specified):
Years Aggregated Maturity Year Aggregate Amount
_______ through _______ _____________ _____________
_______ through _______ _____________ _____________
_______ through _______ _____________ _____________
_______ through _______ _____________ _____________
In making this offer we accept all of the terms and conditions of the NOTICE OF BOND SALE and TERMS OF OFFERING
published in the Preliminary Official Statement dated April 16, 2018 and represent we are a bidder with established industry
reputation for underwriting new issuances of municipal bonds. In the event of failure to deliver these Bonds in accordance with the
NOTICE OF BOND SALE and TERMS OF OFFERING as printed in the Preliminary Official Statement and made a part hereof,
we reserve the right to withdraw our offer. All blank spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have
made the following computations:
NET INTEREST COST: $_________________________
TRUE INTEREST COST: _________________________% (Dated date June 19, 2018)
Account Manager: ___________________________________ By: ___________________________________
Account Members:_________________________________________________________________________________________
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Waukee, Iowa this 21st day of May, 2018.
Attest: _________________________________ By: ________________________________________
Title: __________________________________ Title: _______________________________________