HomeMy WebLinkAbout2018-04-16-J01L Bond - GO Series 2018B - 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
[$3,410,000 Water Revenue Bonds, Series 2018B]
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:$3,410,000
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Preliminary Official Statement, Series 2018B and 2018C
PREPARED BY:Becky Schuett
REVIEWED BY:
J1L
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RESOLUTION 18-
RESOLUTION DIRECTING THE ADVERTISEMENT FOR
SALE OF $3,410,000 WATER REVENUE BONDS, SERIES
2018B, AND APPROVING ELECTRONIC BIDDING
PROCEDURES AND OFFICIAL STATEMENT
WHEREAS, the Issuer is in need of funds to pay costs of improvements and extension to
the City’s municipal water utility, and it is deemed necessary and advisable that Water Revenue
Bonds, to the amount of not to exceed $4,000,000 be issued for said purpose(s); and
WHEREAS, pursuant to notice published as required by Section 384.83 of Iowa Code,
this Council has held a public meeting and hearing upon the proposal to institute proceedings for
the issuance of said Bonds, and the Council is therefore now authorized to proceed with the
issuance of said Bonds for such purpose(s); 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 Water Revenue Bonds, Series 2018B, of City of Waukee, State of Iowa,
in the amount of $3,410,000, 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,
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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
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 Issues Rating: Applications 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
$3,410,000* Water Revenue Bonds, Series 2018B
$3,565,000* Sewer Revenue Bonds, Series 2018C
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 $3,410,000* Water Revenue Bonds, Series 2018B (the “Series 2018B Bonds”), and the $3,565,000* Sewer
Revenue Bonds, Series 2018C (the “Series 2018C Bonds”) (collectively, “the Bonds”) are being issued pursuant to
Division V of Chapter 384 of the Code of Iowa and resolutions to be adopted by the City Council of the City of
Waukee, Iowa (the “City”). The Series 2018B Bonds are being issued for the purpose of paying costs of improvements
and extension to the City’s municipal water utility (“the Water Utility”). The Series 2018C Bonds are being issued for
the purpose of paying costs of improvements and extension to the City’s municipal sewer utility (the “Sewer Utility”).
THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY, but are payable solely and only from Net
Revenues of the Water Utility and the Sewer Utility (as defined in the resolutions authorizing issuance of the Bonds),
respectively.
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. Purchaser(s) 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 for the Series 2018B Bonds and June 1, 2020 for
the Series 2018C Bonds, 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
SERIES 2018B BONDS SERIES 2018C BONDS
MINIMUM BID: $3,369,080 $3,522,220
GOOD FAITH DEPOSIT: Required of Purchaser Only Required of Purchaser Only
TAX MATTERS: Federal: Tax-Exempt
State: Taxable
See “TAX MATTERS” for more details
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 that 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
$3,410,000* Water Revenue Bonds, Series 2018B
MATURITY: The Series 2018B Bonds will mature June 1 in the years and amounts as follows:
Year Amount* Year Amount*
2019 $100,000 2029 $195,000
2020 100,000 2030 200,000
2021 100,000 2031 210,000
2022 100,000 2032 215,000
2023 100,000 2033 225,000
2024 100,000 2034 235,000
2025 100,000 2035 245,000
2026 100,000 2036 255,000
2027 100,000 2037 265,000
2028 190,000 2038 275,000
* PRINCIPAL
ADJUSTMENT: Preliminary; subject to change. The City reserves the right to increase or decrease the
aggregate principal amount of the Series 2018B 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 $4,000,000. 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 Series 2018B Bonds is adjusted as described above.
Any change in the principal amount of any maturity of the Series 2018B 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 Series 2018B Bonds will be payable on December 1, 2018 and semiannually
thereafter.
REDEMPTION: The Series 2018B 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 Series 2018B Bonds to be redeemed at the address
shown on the registration books.
CITY OF WAUKEE, IOWA
$3,565,000* Sewer Revenue Bonds, Series 2018C
MATURITY: The Series 2018C Bonds will mature June 1 in the years and amounts as follows:
Year Amount* Year Amount*
2020 $130,000 2030 $190,000
2021 140,000 2031 195,000
2022 145,000 2032 205,000
2023 145,000 2033 210,000
2024 155,000 2034 220,000
2025 160,000 2035 230,000
2026 165,000 2036 240,000
2027 170,000 2037 245,000
2028 175,000 2038 260,000
2029 185,000
* PRINCIPAL
ADJUSTMENT: Preliminary; subject to change. The City reserves the right to increase or decrease the
aggregate principal amount of the Series 2018C 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 $4,000,000. 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 Series 2018C Bonds is adjusted as described above.
Any change in the principal amount of any maturity of the Series 2018C 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 Series 2018C Bonds will be payable on December 1, 2018 and semiannually
thereafter.
REDEMPTION: The Series 2018C 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 Series 2018C 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(s) (the “Syndicate Manager(s)”) 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
(This page has been left blank intentionally.)
TABLE OF CONTENTS
NOTICE OF BOND SALE ....................................................................................................................................... i
TERMS OF OFFERING .......................................................................................................................................... ii
SCHEDULE OF BOND YEARS - SERIES 2018B BONDS .................................................................................. xi
SCHEDULE OF BOND YEARS - SERIES 2018C BONDS ................................................................................. xii
EXHIBIT 1 - FORM OF ISSUE PRICE CERTIFICATES
INTRODUCTION ...................................................................................................................................................... 1
Authority and Purpose - Series 2018B Bonds ....................................................................................................... 1
Interest - Series 2018B Bonds ............................................................................................................................... 1
Optional Redemption - Series 2018B Bonds ......................................................................................................... 2
Payment Of and Security For The Series 2018B Bonds ....................................................................................... 2
Authority and Purpose - Series 2018C Bonds ....................................................................................................... 3
Interest - Series 2018C Bonds ............................................................................................................................... 3
Optional Redemption - Series 2018C Bonds ......................................................................................................... 3
Payment Of and Security For The Series 2018C Bonds ....................................................................................... 4
Book-Entry-Only Issuance .................................................................................................................................... 5
Future Financing ................................................................................................................................................... 7
Litigation ............................................................................................................................................................... 7
Debt Payment History ........................................................................................................................................... 7
Legality ................................................................................................................................................................. 7
Tax Matters ........................................................................................................................................................... 8
Bondholder's Risks .............................................................................................................................................. 10
Ratings ................................................................................................................................................................. 13
Municipal Advisor ............................................................................................................................................... 13
Continuing Disclosure ......................................................................................................................................... 13
Financial Statements ........................................................................................................................................... 13
Certification ......................................................................................................................................................... 14
DESCRIPTION OF THE MUNICIPAL WATER UTILITY .............................................................................. 15
Water Utility Service Area .................................................................................................................................. 15
Des Moines Water Works System Facilities ....................................................................................................... 15
Water Utility Rates and Charges ......................................................................................................................... 15
Number of Water Utility Meters ......................................................................................................................... 16
Larger Water Utility Customers (FY 2016-17) ................................................................................................... 16
Sales History and Water Utility Charges ............................................................................................................. 16
Water Utility Funds-On-Hand (Cash and Investments by Fund as of February 28, 2018) ................................. 16
Water Utility Revenue Debt ................................................................................................................................ 17
Water Utility Historical Cashflow and Anticipated Debt Coverage ................................................................... 18
DESCRIPTION OF THE MUNICIPAL SEWER UTILITY .............................................................................. 19
The Sewer Utility ................................................................................................................................................ 19
The Des Moines Metropolitan Wastewater Reclamation Authority ................................................................... 19
Sewer Utility Rates and Charges ......................................................................................................................... 19
Sewer Utility Sales History and Total Charges (Residential and Commercial Customers) ................................ 19
Number of Sewer Utility Customers (Residential and Commerical Customers) ................................................ 20
Larger Sewer Utility Customers (FY 2016-17) ................................................................................................... 20
Sewer Utility Funds on Hand (Cash and Investments by Fund as of February 28, 2018) ................................... 20
Sewer Utility Revenue Debt ................................................................................................................................ 20
Other Sewer Utility Revenue Debt ...................................................................................................................... 22
Sewer Utility Historial Cashflow and Anticipated Debt Coverage ..................................................................... 25
APPENDIX A - GENERAL INFORMATION ABOUT THE CITY OF WAUKEE, IOWA
APPENDIX B - FORM OF LEGAL OPINIONS
APPENDIX C - JUNE 30, 2017 INDEPENDENT AUDITOR’S REPORTS
APPENDIX D - FORM OF CONTINUING DISCLOSURE CERTIFICATES
OFFICIAL BID FORM – SERIES 2018B BONDS
OFFICIAL BID FORM – SERIES 2018C BONDS
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:
WATER REVENUE BONDS, SERIES 2018B, in the amount of $3,410,000* to be
dated June 19, 2018; and
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 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, Iowa
ii
TERMS OF OFFERING
CITY OF WAUKEE, IOWA
Bids for the purchase of the City of Waukee, Iowa’s (the “City”) $3,410,000 Water Revenue Bonds, Series 2018B
(the “Series 2018B Bonds”) and the $3,565,000* Sewer Revenue Bonds (the “Series 2018C Bonds”) (collectively, 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 SERIES 2018B BONDS
WATER REVENUE BONDS, SERIES 2018B in the principal amount of $3,410,000*, 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 $100,000 2029 $195,000
2020 100,000 2030 200,000
2021 100,000 2031 210,000
2022 100,000 2032 215,000
2023 100,000 2033 225,000
2024 100,000 2034 235,000
2025 100,000 2035 245,000
2026 100,000 2036 255,000
2027 100,000 2037 265,000
2028 190,000 2038 275,000
* Preliminary; subject to change.
ADJUSTMENT TO SERIES 2018B BOND MATURITY AMOUNTS
The City reserves the right to increase or decrease the aggregate principal amount of the Series 2018B 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
$4,000,000. 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 Series 2018B Bonds is adjusted as described above. Any change in the principal amount of any
maturity of the Series 2018B 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.
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INTEREST ON THE SERIES 2018B BONDS
Interest on the Series 2018B 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.
OPTIONAL REDEMPTION FOR THE SERIES 2018B BONDS
The Series 2018B 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 Series 2018B Bonds to be redeemed at
the address shown on the registration books.
LIEN – SERIES 2018B BONDS
The 2018B Bonds will be issued on parity with the $2,625,000 Water Revenue Capital Loan Notes, Taxable Series
2012C, dated September 5, 2012, of which $2,005,000 is currently outstanding; and the $1,450,000 Water Revenue
Capital Loan Notes, Series 2015B, dated July 21, 2015, of which $1,120,000 is currently outstanding (collectively, the
“Outstanding Water Obligations”). The Series 2018B Bonds and Outstanding Water Obligations are payable from a
pledge of the net revenues of the City’s municipal water utility (the “Water Utility”).
ADDITIONAL BONDS TEST – SERIES 2018B BONDS
The City reserves the right and privilege to issue additional bonds from time to time payable from the net revenues of
the Water Utility and ranking on parity with the Series 2018B Bonds, the Outstanding Water Obligations and any
future bonds payable from the Net Revenues of the Water Utility (the “Water Parity Obligations”), in order to pay the
cost of improvements and extensions to the Water Utility or for refunding any outstanding bonds or obligations
payable from the net revenues of the Water Utility. Before any such additional bonds ranking on a parity are issued,
there will have been procured and filed with the City Clerk, a statement of an independent auditor, independent
municipal advisor or consulting engineer, not a regular employee of the City, reciting the opinion based upon
necessary investigations that the net revenues of the Water Utility for the preceding fiscal year, with adjustments as
provided for in the resolution for the Series 2018B Bonds (the “Resolution”), were equal to at least 1.25 times the
maximum annual debt service that will be required in any fiscal year prior to the longest maturity of any of the Water
Parity Obligations for both principal of and interest on all Water Parity Obligations then outstanding which are
payable from the net revenues of the Water Utility and the additional obligations then proposed to be issued.
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DETAILS OF THE SERIES 2018C BONDS
SEWER REVENUE BONDS, SERIES 2018C in the principal amount of $3,565,000*, 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*
2020 $130,000 2030 $190,000
2021 140,000 2031 195,000
2022 145,000 2032 205,000
2023 145,000 2033 210,000
2024 155,000 2034 220,000
2025 160,000 2035 230,000
2026 165,000 2036 240,000
2027 170,000 2037 245,000
2028 175,000 2038 260,000
2029 185,000
* Preliminary; subject to change.
ADJUSTMENT TO SERIES 2018C BOND MATURITY AMOUNTS
The City reserves the right to increase or decrease the aggregate principal amount of the Series 2018C 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
$4,000,000. 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 Series 2018C Bonds is adjusted as described above. Any change in the principal amount of any
maturity of the Series 2018C 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 ON THE SERIES 2018C BONDS
Interest on the Series 2018C 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.
OPTIONAL REDEMPTION FOR THE SERIES 2018C BONDS
The Series 2018C 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 Series 2018C Bonds to be redeemed at
the address shown on the registration books.
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LIEN – SERIES 2018C BONDS
The Series 2018C Bonds are being issued on parity with the $1,185,000 Sewer Revenue Capital Loan Notes, Series
2013A dated March 1, 2013, of which $685,000 is currently outstanding; the $2,685,000 Sewer Revenue Capital Loan
Notes, Series 2016C, dated December 20, 2016, of which $2,685,000 is currently outstanding; and the $12,537,000
Sewer Revenue Capital Loan Notes issued through the Iowa Finance Authority’s State Revolving Fund (“SRF”) dated
September 1, 2017, of which $12,537,000 is currently outstanding; $3,040,000 Sewer Revenue Capital Loan Notes
issued through the SRF to be dated July 2018 of which $3,040,000 will be outstanding (collectively the “Outstanding
Sewer Obligations”). The Series 2018C and Outstanding Sewer Obligations are payable from the net revenues of the
municipal sewer utility (the “Sewer Utility”).
In addition, the City has the Des Moines Metropolitan Wastewater Reclamation Authority (“WRA”) payment
obligations for the City’s proportionate allocated share of debt obligations issued by the WRA as highlighted under
“OTHER SEWER UTILITY REVENUE DEBT (“WRA Payment Obligations”). The WRA Payment Obligations are
on parity with the Series 2018C Bonds and Outstanding Sewer Obligations and constitute a lien on the net revenues of
the Sewer Utility.
PARITY BONDS – SERIES 2018C BONDS
The City reserves the right and privilege to issue additional bonds from time to time payable from the net revenues of
the Sewer Utility and ranking on parity with the Series 2018C Bonds, the Outstanding Sewer Obligations and any
future bonds payable from the net revenues of the Sewer Utility (the “Sewer Parity Obligations”), in order to pay the
cost of improvements and extensions to the Sewer Utility or for refunding any outstanding bonds or obligations
payable from the net revenues of the Sewer Utility. Before any such additional bonds ranking on a parity are issued,
there will have been procured and filed with the City Clerk, a statement of an independent auditor, independent
municipal advisor or consulting engineer, not a regular employee of the City, reciting the opinion based upon
necessary investigations that the net revenues of the Sewer Utility for the preceding fiscal year, with adjustments as
provided for in the resolution for the Series 2018C Bonds (the “Resolution”), were equal to at least 1.25 times the
maximum annual debt service that will be required in any fiscal year prior to the longest maturity of any of the Sewer
Parity Obligations for both principal of and interest on all Sewer Parity Obligations then outstanding which are
payable from the net revenues of the Sewer Utility and the additional obligations then proposed to be issued.
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 FORMS 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 DEPOSITS
A good faith deposit in the amount of $34,100 for the Series 2018B Bonds (the “2018B Deposit), and $35,650 for the
Series 2018C Bonds (the “Series 2018C Deposit) (collectively, the “Deposits”) is required from the lowest bidder(s)
only for each respective series of Bonds. The lowest bidder(s) is required to submit such Deposits 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(s) may be rejected and the City may direct the second
lowest bidder(s) to submit a deposit and thereafter may award the sale of each respective series of the Bonds to the
same. No interest on the Deposits will accrue to the successful bidder(s) (the “Purchaser(s)”). The Deposits will be
applied to the purchase prices of each respective series of Bonds. In the event a Purchaser(s) fails to honor its
accepted bid proposal, the applicable deposit will be retained by the City.
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FORM OF BIDS AND AWARD
All bids shall be unconditional for each series of Bonds for a price not less than $3,369,080 for the Series 2018B
Bonds, and $3,522,220 for the Series 2018C 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 FORMS provided by the City. The Bonds will be awarded to
the bidder(s) offering the lowest interest rate to be determined on a true interest cost (the “TIC”) basis assuming
compliance with the “GOOD FAITH DEPOSITS” section. The TIC shall be determined by the present value method,
i.e., by ascertaining the semiannual rate, compounded semiannually, necessary to discount to present value as of the
dated date of each respective series of 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.
BIDDING PARAMETERS
For each respective series, 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 FORMS 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 FORMS. The City is permitting bidders to
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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 FORMS 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.
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(s), as a condition of delivery of the Bonds, will be required to deposit
the bond certificates with DTC.
MUNICIPAL BOND INSURANCE AT PURCHASER’S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of
the bidder(s), the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole
option and expense of the Purchaser(s). Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the Purchaser(s), except that, if the City has requested and received a rating on the Bonds
from a rating agency, the City will pay that initial rating fee. Any other rating agency fees shall be the responsibility
of the Purchaser(s). Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to
the Purchaser(s) shall not constitute cause for failure or refusal by the Purchaser(s) to accept delivery on the Bonds.
The City reserves the right in its sole discretion to accept or deny changes to the financing documents requested by the
insurer selected by the Purchaser(s).
DELIVERY
The Bonds will be delivered to the Purchaser(s) via Fast Automated Securities Transfer (“FAST”) delivery with the
Registrar holding the Bonds on behalf of DTC, against full payment in immediately available cash or federal funds.
The Bonds are expected to be delivered within forty-five days after the sale. Should delivery be delayed beyond sixty
days from the date of sale for any reason except failure of performance by the Purchaser(s), the Purchaser(s) may
withdraw their bid and thereafter their interest in and liability for the Bonds will cease. When the Bonds are ready for
delivery, the City will give the Purchaser(s) five working days’ notice of the delivery date and the City will expect
payment in full on that date; otherwise, reserving the right at its option to determine that the Purchaser(s) failed to
comply with the offer of purchase.
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ESTABLISHMENT OF ISSUE PRICE
The Purchaser(s) shall assist the City in establishing the issue prices 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(s), the City and Bond Counsel, will need to be
signed by the Purchaser(s). If more than three bids are received, an alternative “issue price” or similar certificate will
be provided to the Purchaser(s). 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
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(s). 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(s) 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(s), 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(s) 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(s) 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(s) 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(s) 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
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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(s) 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(s) 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
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(s) 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(s) 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(s) of any of the Bonds is a “related party” to an underwriter if the underwriter and the
Purchaser(s) 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(s).
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 underwriters, 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
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without cost to the senior managing underwriter of the syndicate to which each respective series of 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 Resolutions for the Bonds and the Continuing
Disclosure Certificates, 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 D to this Preliminary Official Statement. The City
will deliver the Continuing Disclosure Certificates at closing, and any failure on the part of the City to deliver the
same shall relieve the Purchaser(s) of its 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 Resolutions
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(s) 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(s) to refuse to accept delivery
of said Bonds.
BY ORDER OF THE CITY COUNCIL
City of Waukee, Iowa
/s/ Linda Burkhart, Finance Director
xi
$3,410,000*
CITY OF WAUKEE, IOWA
Water Revenue Bonds, Series 2018B
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 $100,000 95.00 95.00
2020 100,000 195.00 290.00
2021 100,000 295.00 585.00
2022 100,000 395.00 980.00
2023 100,000 495.00 1,475.00
2024 100,000 595.00 2,070.00
2025 100,000 695.00 2,765.00
2026 100,000 795.00 3,560.00
2027 100,000 895.00 4,455.00
2028 190,000 1,890.50 6,345.50
2029 195,000 2,135.25 8,480.75
2030 200,000 2,390.00 10,870.75
2031 210,000 2,719.50 13,590.25
2032 215,000 2,999.25 16,589.50
2033 225,000 3,363.75 19,953.25
2034 235,000 3,748.25 23,701.50
2035 245,000 4,152.75 27,854.25
2036 255,000 4,577.25 32,431.50
2037 265,000 5,021.75 37,453.25
2038 275,000 5,486.25 42,939.50
Average Maturity (dated date): 12.592 Years
SCHEDULE OF BOND YEARS
June 19, 2018
Principal*
xii
$3,565,000*
CITY OF WAUKEE, IOWA
Sewer Revenue Bonds, Series 2018C
Bonds Dated:
Interest Due: December 1, 2018 and each June 1 and December 1 to maturity
Principal Due: June 1, 2020-2038
Cumulative
Year Bond Years Bond Years
2020 $130,000 253.50 253.50
2021 140,000 413.00 666.50
2022 145,000 572.75 1,239.25
2023 145,000 717.75 1,957.00
2024 155,000 922.25 2,879.25
2025 160,000 1,112.00 3,991.25
2026 165,000 1,311.75 5,303.00
2027 170,000 1,521.50 6,824.50
2028 175,000 1,741.25 8,565.75
2029 185,000 2,025.75 10,591.50
2030 190,000 2,270.50 12,862.00
2031 195,000 2,525.25 15,387.25
2032 205,000 2,859.75 18,247.00
2033 210,000 3,139.50 21,386.50
2034 220,000 3,509.00 24,895.50
2035 230,000 3,898.50 28,794.00
2036 240,000 4,308.00 33,102.00
2037 245,000 4,642.75 37,744.75
2038 260,000 5,187.00 42,931.75
2039 42,931.75
Average Maturity (dated date): 12.043 Years
SCHEDULE OF BOND YEARS
June 19, 2018
Principal*
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EXHIBIT 1
FORM OF ISSUE PRICE CERTIFICATES
(This page has been left blank intentionally.)
Exhibit 1 to Terms of Offering
COMPETITIVE SALES WITH FEWER THAN THREE BIDS FROM ESTABLISHED UNDERWRITERS
HOLD OFFERING PRICE
ISSUE PRICE CERTIFICATE
For
$___________ Water Revenue Bonds, Series 2018B
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.
(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.
Exhibit 1 to Terms of Offering
(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
$___________ Water Revenue Bonds, Series 2018B
City of Waukee, Iowa
(Attached)
Exhibit 1 to Terms of Offering
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
$___________ Water Revenue Bonds, Series 2018B
City of Waukee, Iowa
(Attached)
Exhibit 1 to Terms of Offering
COMPETITIVE SALES WITH FEWER THAN THREE BIDS FROM ESTABLISHED UNDERWRITERS
HOLD OFFERING PRICE
ISSUE PRICE CERTIFICATE
For
$___________ Sewer Revenue Bonds, Series 2018C
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
$___________ Sewer Revenue Bonds, Series 2018C
City of Waukee, Iowa
(Attached)
Exhibit 1 to Terms of Offering
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
$___________ Sewer Revenue Bonds, Series 2018C
City of Waukee, Iowa
(Attached)
1
PRELIMINARY OFFICIAL STATEMENT
CITY OF WAUKEE, IOWA
$3,410,000* Water Revenue Bonds, Series 2018B
$3,565,000* Sewer Revenue Bonds, Series 2018C
INTRODUCTION
This Preliminary Official Statement contains information relating to the City of Waukee, Iowa (the “City”) and its
issuance of $3,410,000* Water Revenue Bonds, Series 2018B (the “Series 2018B Bonds”), and the $3,565,000 Sewer
Revenue Bonds, Series 2018C (the “Series 2018C Bonds”) (collectively, 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 – SERIES 2018B BONDS
The Series 2018B Bonds are being issued pursuant to Division V of Chapter 384 of the Code of Iowa and a resolution
to be adopted by the City Council of the City (the “Resolution”). The Series 2018B Bonds are being issued for the
purpose of paying costs of improvements and extension to the City’s municipal water utility (the “Water Utility”).
The estimated sources and uses of the Series 2018B Bonds are as follows:
Sources of Funds
Par Amount of Series 2018B Bonds $3,410,000.00 *
Existing Water Reserve Fund 332,635.00
Total Sources $3,742,635.00 *
Uses of Funds
Deposit to Project Fund 3,100,000.00
Deposit to Water Reserve Fund 544,072.50 *
Underwriter’s Discount 40,920.00 *
Cost of Issuance and Contingency 57,642.50 *
Total Uses $3,742,635.00 *
* Preliminary; subject to change.
INTEREST – SERIES 2018B BONDS
Interest on the Series 2018B 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.
2
OPTIONAL REDEMPTION – SERIES 2018B BONDS
The Series 2018B 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 Series 2018B Bonds to be redeemed at
the address shown on the registration books.
PAYMENT OF AND SECURITY FOR THE SERIES 2018B BONDS
This section contains a summary of the security provisions for the Series 2018B Bonds. A detailed statement of the
security provisions is contained in the Resolution authorizing the issuance of the Series 2018B Bonds, which is
available upon request of the City’s Municipal Advisor.
Water Source of Payment: THE SERIES 2018B BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY,
but are payable solely and only from net revenues of the Water Utility. The 2018B Bonds will be issued on parity
with the $2,625,000 Water Revenue Capital Loan Notes, Taxable Series 2012C, dated September 5, 2012, of which
$2,005,000 is currently outstanding; and the $1,450,000 Water Revenue Capital Loan Notes, Series 2015B, dated
July 21, 2015, of which $1,120,000 is currently outstanding; (collectively, the “Outstanding Water Obligations”).
The Series 2018B Bonds and Outstanding Water Obligations are payable from a pledge of the net revenues of the
Water Utility.
Water Unpaid Water Charges: As provided by Section 384.84(4), Code of Iowa, unpaid water charges constitute a
lien upon the premises served by the Water Utility upon certification by the City to the County Treasurer that the rates
or charges are past due. The lien has equal precedence with ordinary taxes, may be certified to the County Treasurer
and collected in the same manner as taxes, and is not divested by a judicial sale.
Water Rate Covenant: On or before the beginning of each fiscal year, the City will adopt or continue in effect rates
for all services rendered by the Water Utility determined to be sufficient to produce net revenues for the next
succeeding fiscal year adequate to pay principal and interest requirements and create reserves as provided in the
resolution for the Series 2018B Bonds and Outstanding Water Obligations but not less than 125 percent of the
principal and interest requirements of the fiscal year.
Water Reserve Fund: The City covenants to establish and maintain a debt service reserve fund (the “Reserve Fund”)
in an amount equal to at least the lesser of 1) the maximum amount of principal and interest coming due on the Series
2018B Bonds, and parity obligations, 2) 125% of the average annual principal and interest coming due on the Series
2018B Bonds and parity obligations; or 3) 10% of the stated principal amount of the Series 2018B Bonds and parity
obligations. Currently, the Water Reserve Fund requirement (the “Requirement”) is $332,635. Upon the issuance of
the Series 2018B Bonds, the Requirement will be approximately $544,073, which represents maximum amount of
principal and interest coming due on the Series 2018B Bonds, Outstanding Water Obligations and any other parity
obligations on a fiscal year basis.
Water Additional Bonds Test: The City reserves the right and privilege to issue additional obligations on a parity and
equality of rank with the Series 2018B Bonds, Outstanding Water Obligations and any future parity obligations with
respect to the lien and claim of such additional obligations to the net revenues of the Water Utility and the money on
deposit in the funds adopted by the Resolution for the Series 2018B Bonds, for the purpose of refunding any of the
Series 2018B Bonds, Outstanding Water Obligations, parity obligations or general obligation notes outstanding, or
making extensions, additions, improvements or replacements to the Water Utility. Before any such additional
obligations ranking on a parity are issued, there will have been procured and filed with the City, a statement of an
independent auditor or an independent municipal advisor, not a regular employee of the City, reciting the opinion,
based upon necessary investigations, that the net revenues of the Water Utility for the preceding fiscal year (with
adjustments as provided in the resolution for the Series 2018B Bonds) were equal to at least 1.25 times the maximum
amount that will be required in any fiscal year prior to the longest maturity of any of the Series 2018B Bonds,
Outstanding Water Obligations or parity obligations for both the principal and interest on all Series 2018B Bonds
3
Outstanding Water Obligations, or parity obligations then outstanding which are payable from the net revenues of the
Water Utility and the additional obligations then proposed to be issued.
For the purpose of determining the net revenues of the Water Utility for the preceding fiscal year as aforesaid, the
amount of the gross revenues for such year may be adjusted by an independent auditor or independent municipal
advisor, not a regular employee of the City, so as to reflect any changes in the amount of such revenues which would
have resulted had any revision of the schedule of rates or charges imposed at or prior to the time of the issuance of
any such additional obligations been in effect during all of such preceding fiscal year.
The “preceding fiscal year” shall be the most recently completed fiscal year for which audited financial statements
prepared by a certified public accountant are issued and available, but in no event a fiscal year which ended more than
eighteen months prior to the date of issuance of additional obligations.
AUTHORITY AND PURPOSE – SERIES 2018C BONDS
The Series 2018C Bonds are being issued pursuant to Division V of Chapter 384 of the Code of Iowa and a resolution
to be adopted by the City Council of the City (the “Resolution”). The Series 2018C Bonds are being issued to
provide funds for improvements and extension to the City’s municipal sewer utility (the “Sewer Utility”).
The estimated sources and uses of the Series 2018C Bonds are as follows:
Sources of Funds
Par Amount of Series 2018C Bonds $3,565,000.00 *
Existing Sewer Reserve Fund 295,772.00
Total Sources $3,860,772.00
Uses of Funds
Deposit to Project Fund $3,200,000.00 *
Deposit to Sewer Reserve Fund 560,597.50
Underwriter’s Discount 42,780.00 *
Cost of Issuance and Contingency 57,394.50 *
Total Uses $3,860,772.00 *
* Preliminary; subject to change.
INTEREST – SERIES 2018C BONDS
Interest on the Series 2018C 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.
OPTIONAL REDEMPTION – SERIES 2018C BONDS
The Series 2018C 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 Series 2018C Bonds to be redeemed at
the address shown on the registration books.
4
PAYMENT OF AND SECURITY FOR THE SERIES 2018C BONDS
This section contains a summary of the security provisions for the Series 2018C Bonds. A detailed statement of
security provisions is contained in the Resolution authorizing the issuance of the Series 2018C Bonds, which is
available upon request of the City’s Municipal Advisor.
Sewer Source of Payment: THE SERIES 2018C BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY,
but are payable solely and only from a pledge of net revenues of the Sewer Utility. The Series 2018C Bonds are
being issued on parity with the $1,185,000 Sewer Revenue Capital Loan Notes, Series 2013A dated March 1, 2013
(the Series 2013A Bonds”), of which $685,000 is currently outstanding; the $2,685,000 Sewer Revenue Capital Loan
Notes, Series 2016C, dated December 20, 2016 (the Series 2016C Bonds”), of which $2,685,000 is currently
outstanding; and the $12,537,000 Sewer Revenue Capital Loan Notes issued through the Iowa Finance Authority’s
State Revolving Fund (“SRF”) dated September 1, 2017, of which $12,537,000 is currently outstanding; $3,040,000
Sewer Revenue Capital Loan Notes to be issued through the SRF and dated July 2018 of which $3,040,000 will be
outstanding (collectively the “Outstanding Sewer Obligations”). The Series 2018C and Outstanding Sewer
Obligations are payable from the net revenues of the municipal sewer utility.
In addition, the City has the Des Moines Metropolitan Wastewater Reclamation Authority (“WRA”) payment
obligations for the City’s proportionate allocated share of debt obligations issued by the WRA as highlighted under
“OTHER SEWER UTILITY REVENUE DEBT (“WRA Payment Obligations”). The WRA Payment Obligations are
on parity with the Series 2018C Bonds and Outstanding Sewer Obligations and constitute a lien on the net revenues of
the Sewer Utility.
Unpaid Sewer Charges: As provided by Section 384.84, Subsection 1, City Code of Iowa, unpaid sewer charges
constitute a lien upon the premises served by the sewer utility upon certification by the City to the county treasurer
that the rates or charges are past due. The lien has equal precedence with ordinary taxes, may be certified to the
county treasurer and collected in the same manner as taxes, and is not divested by a judicial sale.
Sewer Rate Covenant: On or before the beginning of each fiscal year, the City will adopt or continue in effect rates
for all services rendered by the Sewer Utility determined to be sufficient to produce net revenues for the next
succeeding fiscal year adequate to pay principal and interest requirements and create reserves as provided in the
Resolution for the Series 2018C Bonds and Outstanding Sewer Obligations but not less than 125 percent of the
principal and interest requirements of the fiscal year.
Sewer Reserve Fund: The City covenants to establish and maintain a debt service reserve fund (the “Reserve Fund”)
in an amount equal to at least the lesser of 1) the maximum amount of principal and interest coming due on the Series
2018C Bonds and parity obligations requiring a reserve, 2) 125% of the average annual principal and interest coming
due on the Series 2018C Bonds and parity obligations requiring a reserve; or 3) 10% of the stated principal amount of
the Series 2018C Bonds and parity obligations requiring a reserve. The Sewer Revenue Capital Loan Notes issued
through the SRF in 2017 and 2018 and the WRA payment obligations do not require a reserve. Notwithstanding the
foregoing, there shall be no deposit into the Reserve Fund with respect to the outstanding SRF or WRA Payment
Obligations, nor shall the Reserve Fund secure the outstanding SRF or WRA Payment Obligations. Currently, the
Sewer Reserve Fund requirement (the “Requirement”) is $297,032. Upon the issuance of the Series 2018C Bonds,
the Requirement will be approximately $560,598, which represents maximum amount of principal and interest
coming due on the Series 2013A Bonds, Series 2016C Bonds and Series 2018C Bonds on a fiscal year basis.
Sewer Additional Bonds Test: The City reserves the right and privilege to issue additional obligations on a parity and
equality of rank with the Series 2018C Bonds, Outstanding Sewer Obligations and any future parity obligations with
respect to the lien and claim of such additional obligations to the net revenues of the Sewer Utility and the money on
deposit in the funds adopted by the Resolution for the Series 2018C Bonds, for the purpose of refunding any of the
Series 2018C Bonds, Outstanding Sewer Obligations, parity obligations or general obligation notes outstanding, or
making extensions, additions, improvements or replacements to the Sewer Utility. Before any such additional
obligations ranking on a parity are issued, there will have been procured and filed with the City, a statement of an
independent auditor or an independent municipal advisor, not a regular employee of the City, reciting the opinion,
5
based upon necessary investigations, that the net revenues of the Sewer Utility for the preceding fiscal year (with
adjustments as provided in the Resolution for the Series 2018C Bonds) were equal to at least 1.25 times the maximum
amount that will be required in any fiscal year prior to the longest maturity of any of the Series 2018C Bonds,
Outstanding Sewer Obligations or parity obligations for both the principal and interest on all Series 2018C Bonds
Outstanding Sewer Obligations or parity obligations then outstanding which are payable from the net revenues of the
Sewer Utility and the additional obligations then proposed to be issued.
For the purpose of determining the net revenues of the Sewer Utility for the preceding fiscal year as aforesaid, the
amount of the gross revenues for such year may be adjusted by an independent auditor or independent municipal
advisor, not a regular employee of the City, so as to reflect any changes in the amount of such revenues which would
have resulted had any revision of the schedule of rates or charges imposed at or prior to the time of the issuance of
any such additional obligations been in effect during all of such preceding fiscal year.
The “preceding fiscal year” shall be the most recently completed fiscal year for which audited financial statements
prepared by a certified public accountant are issued and available, but in no event a fiscal year which ended more than
eighteen months prior to the date of issuance of additional obligations.
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
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
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“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 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.
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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 $19,775,000 General Obligation Bonds, Series 2018A 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 B 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.
There is no bond trustee or similar person to monitor or enforce the provisions of the Resolutions for the Bonds.
The owners of the Bonds should, therefore, be prepared to enforce such provisions themselves if the need to do so
arises. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for
acceleration of maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds
(consisting primarily of an action in the nature of mandamus requiring the City and certain other public officials to
perform the terms of the Resolutions) may have to be enforced from year to year. 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. Each 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.
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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 purchasers 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 purchasers of the Bonds should consult their tax advisors as to collateral federal
income tax consequences.
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. Prospective
purchasers 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
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.
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Audit: 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 B to this
Preliminary Official Statement, will be delivered at closing.
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: There is no bond trustee or similar person to monitor or enforce the terms of the Resolutions for
issuance of 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 Resolutions for the Bonds) may have to be enforced from year to year.
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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 will state, in part, that the
obligations of the City with respect to the Bonds may be subject to bankruptcy, insolvency, reorganization,
moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent
constitutionally applicable, to the exercise of judicial discretion in appropriate cases.
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.
Ratings Loss: Moody’s Investor Service (“Moody’) has assigned a rating of ‘____’ to the Series 2018B Bonds and a
rating of ‘____’ to the Series 2018C 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 Resolutions
for the Bonds.
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The practical realization of any rights upon any default will depend upon the exercise of various remedies specified in
the Resolutions for the Bonds. The remedies available to the owners of the Bonds upon an event of default under the
Resolutions for the Bonds, in certain respects, may require judicial action, which is often subject to discretion and
delay. Under existing law, including specifically the federal bankruptcy code, certain of the remedies specified in the
Resolutions for the Bonds may not be readily available or may be limited. A court may decide not to order the specific
performance of the covenants contained in these documents. The legal 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 Resolutions for the Bonds, 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 Resolutions 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 Series 2018B
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 doesn’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 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.
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Nature of Obligation: The Bonds are not general obligations of the City but are payable solely from the net revenues
of the Water Utility and Sewer Utility, respectively. The Bonds are not payable by, and have no recourse to, the
power of taxation. The bondholders have no lien on or security interest in any of the physical assets of the City,
including the Water Utility and Sewer Utility.
Future revenues and expenses of the City, with respect to the Water Utility and Sewer Utility, are subject to
conditions which may change in the future to an extent that cannot be determined at this time. Future events may
occur that upset the assumptions upon which projections of revenues and expenses are based on those assumptions
may fail to materialize. Because no assurance can be made that actual events will correspond to such assumptions, no
assurances can be made that the net revenues will be realized in amounts sufficient to pay the debt service on the
Bonds.
Revenues and Expenses: Several factors not within the control of the City could affect the City’s ability to generate
sufficient net revenues to pay the debt service on the Bonds. These factors include, but are not limited to, inflation
and adverse economic conditions, increases in operation and maintenance costs, unexpected repairs, replacements or
improvements to the Water Utility and Sewer Utility and the ability of the City to supply the services demanded and
to maintain necessary rates for those services. Any one of the above factors, among others, individually or combined
may cause the City to be unable to generate sufficient net revenues to pay debt service on the Bonds.
Additional Debt of the Utility: Upon the satisfaction of certain conditions set forth in the Resolutions, respectively,
the City may issue obligations for the purpose of financing improvements or modifications to each utility,
respectively, which obligations could be equally and ratably secured with the Bonds by the net revenues of the utility,
respectively. The City may also issue subordinate obligations.
Natural Disaster: Each utility is subject to interruption and loss of business in the event of a disaster, such as a
windstorm, fire, explosion, sabotage and other events not now foreseen.
Environmental Protection Cost and Regulations: The City believes it meets all environmental requirements. In the
future, however, environmental protection agencies could adopt more stringent and costly pollution control measures,
which would require additional capital and cause added operation and fuel expenses. The City is subject to state and
federal environmental laws and regulations. The laws and regulations governing entities such as each utility,
respectively, may be required to expend substantial funds to meet the requirements of such changings laws and
regulations in the future. Failure to comply with these laws and regulations may result in the imposition of
administrative, civil and criminal penalties, or an injunction requiring the City to take or refrain from taking certain
actions. In addition, environmental laws and regulations are complex and change frequently and it is possible that
new on stricter standards could be imposed that will require additional capital expenditures or raise operating costs.
In addition, failure to comply with regulatory changes, or the inability to comply with regulatory changes, in a timely
manner could cause portions of each utility, respectively, to become unavailable resulting in a loss of or disruption of
services negatively impacting net revenues.
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.”
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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.
RATINGS
The City has requested ratings on the Bonds from Moody’s. In addition, Moody’s currently maintains a rating of
‘Aa3’ on the long-term water revenue debt, and a rating of ‘Aa3’ on the City’s long-term sewer revenue debt. The
existing ratings on long-term debt reflects only the view of the rating agency and any explanation of the significance
of such ratings may only be obtained from Moody’s. There is no assurance such ratings will continue for any period
of time or that they will not be revised or withdrawn. Any revision or withdrawal of the ratings 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.
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 Resolutions for the Bonds and the
Continuing Disclosure Certificates, 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 D to this Preliminary
Official Statement. The City will deliver the Continuing Disclosure Certificates at closing, and any failure on the part
of the City to deliver the same shall relieve the Purchaser(s) of its 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 Resolutions
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.
FINANCIAL STATEMENTS
The City’s Independent Auditor’s Reports for the Fiscal Year ended June 30, 2017 are reproduced in APPENDIX C.
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.
14
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 $3,410,000* Water Revenue Bonds, Series 2018B; and $3,565,000* Sewer
Revenue Bonds, Series 2018C.
CITY OF WAUKEE, IOWA
/s/ Linda Burkhart, Finance Director
* Preliminary; subject to change.
15
DESCRIPTION OF THE MUNICIPAL WATER UTILITY
WATER UTILITY SERVICE AREA
The municipal water utility (the “Water Utility”) is a City utility that accounts for the administration, operation, debt
management, and maintenance of the City’s water infrastructure, processing, and delivery system. The Water Utility
does not produce its own water, but instead purchases the water from the Des Moines Water Works (“DMWW”).
The treated water is supplied by DMWW through a network of pumping stations, storage tanks and feeder mains.
The City handles the billing, collection, and meter reading for the City’s accounts. DMWW is managed by four
Board Members appointed by the Des Moines City Council. The Water Utility is managed on a daily basis by a
utility director under the direction and oversight of the Waukee City Administrator and City Council.
The Water Utility currently has approximately 7,248 water meters with an average aggregate daily usage of 1.65
MGD. The peak day usage by the Water Utility was 3.636 million gallons in the summer of 2017. The current above
ground storage capacity for the utility is one million gallons through two separate storage facilities which includes a
shared storage facility. The shared storage facility has a total capacity of 2.5 million gallons all of which the City has
access. The Water Utility has approximately 84 miles of water main and 1197 fire hydrants. Water is received from
DMWW through two separate connections having a total daily deliverable capacity of 5.5 million gallons.
The Water Utility entered into an agreement with DMWW in 2005 for an increase in its purchase capacity by 2
million gallon per day to assure adequate supplies of water for the future growth of the community. Recent
expansions of the Water Utility’s capacity and facilities include water main extensions and replacement. In 2012 the
Water Utility purchased an additional 1 million gallons.
DES MOINES WATER WORKS SYSTEM FACILITIES
The water sources for the DMWW are the Raccoon River and, since 1981, the Des Moines River. An intake and
pumping station was constructed in 1949 for direct withdrawal of water from the Raccoon River, to supplement the
underground infiltration gallery, which relies on seepage from the Raccoon River. In 1981, the DMWW constructed
facilities to tap the Des Moines River as an additional source of water supply. Wells along the Raccoon River near
Maffitt Reservoir just west of Des Moines were added as a water source in 2000 to supply the newly constructed
treatment plant at Maffitt Reservoir. A new water treatment plant built along the Des Moines River south of Ankeny
and was completed in 2015. These five sources are or will be able to provide adequate supply in the most cost-
effective combination.
The DMWW withdraws raw water from both the Raccoon and Des Moines Rivers under the authority of a permit
issued by the State of Iowa Department of Natural Resources (the “IDNR”). The present permit was issued for a ten-
year period and expires in June 2020. Under the terms of the permit, the DMWW is limited by IDNR to no more than
120 million gallons per day or 28.87 billion gallons per year from the combined water sources. DMWW pumpage
record of 96.2 million gallons a day was set in 2012.
WATER UTILITY RATES AND CHARGES
The following Water Utility rates and charges were adopted by the City Council on April 16, 2018 and will become
effective on July 1, 2018.
Metered Water Usage Per Month
Minimum Monthly Bill
Current Rates
Rates Effective
July 1, 2018
0 to 1,000 gallons $11.22 $11.61
1,001 gallons and over 7.62 7.89
Irrigation rate per 1,000 gallons 8.62 8.62
16
NUMBER OF WATER UTILITY METERS
Fiscal Year
Number of Water
Utility Meters
2012-13 5,227
2013-14 5,400
2014-15 5,866
2015-16 6,269
2016-17 6,898
LARGER WATER UTILITY CUSTOMERS (FY 2016-17)
Customer Name
Water Utility
Charges
% of Total Water
Utility Charges
Midwest Country Estates $116,766.36 2.84%
Prairie Grass Apartments 86,582.10 2.10%
The Village at Legacy Pointe 46,097.78 1.12%
HyVee Car Wash 42,905.70 1.04%
HyVee Store 34,883.37 0.85%
Vision Soccer Academy 30,657.03 0.75%
Windfield West 28,614.99 0.70%
YMCA 23,188.70 0.56%
Autumn Ridge Apartments 22,523.91 0.55%
QG Printing II LLC 17,310.12 0.42%
Total Larger Customer Charges: $449,530.06 10.93%
Total Water Utility Charges: $4,114,841.00
SALES HISTORY AND WATER UTILITY CHARGES
Fiscal Year Total Gallons Water Charges1)
2012-13 390,401,000 $3,254,288
2013-14 408,388,000 3,422,117
2014-15 402,950,485 3,119,466
2015-16 423,496,260 3,610,853
2016-17 473,883,236 4,114,841
1) Includes sales to customers, penalties and miscellaneous revenues.
WATER UTILITY FUNDS ON HAND (Cash and Investments by Fund as of February 28, 2018)
Water Operating Fund $5,921,781.81
Water Reserve Fund 504,000.59
Water Construction Fund 0.00
Water Sinking Fund 193,577.64
Total $6,619,360.04
17
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
Annual Fiscal Year Water Utility Revenue Debt Service Payments (Includes the 2018B Bonds)
Current Outstanding Series 2018B Bonds Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
Principal*
Principal &
Interest*
Principal*
Principal &
Interest*
2018-19 $225,000 $323,295 $100,000 $217,589 $325,000 $540,884
2019-20 230,000 322,645 100,000 221,428 330,000 544,073
2020-21 235,000 321,723 100,000 218,878 335,000 540,601
2021-22 245,000 325,453 100,000 216,228 345,000 541,681
2022-23 250,000 323,728 100,000 213,478 350,000 537,206
2023-24 255,000 321,665 100,000 210,578 355,000 532,243
2024-25 265,000 324,275 100,000 207,578 365,000 531,853
2025-26 280,000 331,325 100,000 204,478 380,000 535,803
2026-27 290,000 332,635 100,000 201,228 390,000 533,863
2027-28 155,000 188,335 190,000 287,878 345,000 476,213
2028-29 160,000 187,755 195,000 286,418 355,000 474,173
2029-30 170,000 191,675 200,000 284,690 370,000 476,365
2030-31 180,000 194,875 210,000 287,190 390,000 482,065
2031-32 185,000 192,585 215,000 284,210 400,000 476,795
2032-33 225,000 285,825 225,000 285,825
2033-34 235,000 286,938 235,000 286,938
2034-35 245,000 287,655 245,000 287,655
2035-36 255,000 287,733 255,000 287,733
2036-37 265,000 287,278 265,000 287,278
2037-38 275,000 286,413 275,000 286,413
Total $3,125,000 $3,410,000* $6,535,000*
* Preliminary, subject to change.
18
WATER UTILITY HISTORICAL CASHFLOW AND ANTICIPATED DEBT COVERAGE
The following table represents the financial performance of the Water Utility for Fiscal Year 2012-13 through Fiscal
Year 2016-17 using information from the City’s Independent Auditor Reports as well as the City’s estimate for Fiscal
Year 2017-18 and Fiscal Year 2018-19. Based on the Fiscal Year 2016-17 Independent Auditor Reports, the
$2,298,894 net revenue available for debt service would provide 4.23 times coverage of the $544,073 projected
maximum annual debt service. The projected financial performance cannot be guaranteed.
YTD Budget
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
OPERATING REVENUES
Sales to Customers $3,209,128 $2,616,888 $2,631,291 $2,909,664 $3,105,959 $3,197,404 $3,408,593
Irrigation Sales 0 805,229 468,510 684,557 985,686 914,695 628,645
Penalties 7,693 5,038 3,137 3,488 3,844 7,000 3,500
Miscellaneous Revenues 37,467 21,073 20,695 14,331 22,164 42,400 18,200
Total Operating Revenues $3,254,288 $3,448,228 $3,123,633 $3,612,040 $4,117,654 $4,161,499 $4,058,938
OPERATING EXPENSES
Personal Services $542,027 $586,074 $558,115 $615,113 $700,897 $816,765 $838,550
Contractual 142,806 342,587 500,967 343,421 406,374 535,394 528,043
Meters 146,288 167,360 205,877 300,702 371,314 400,000 450,000
DMWW Water Purchases 613,510 629,568 596,850 746,084 953,049 1,164,692 1,190,330
DMWW Other O & M Costs 64,031 64,964 53,830 72,839 64,987 70,000 70,000
Series 2001A DMWW Bonds 174,315 0 0 0 0 0 0
Series 2006 DMWW Bonds 497,301 0 0 0 0 0 0
Series 2012B DMWW Bonds 0 497,737 516,052 498,165 107,950 0 0
Depreciation 526,621 515,953 516,349 551,772 606,651 608,168 609,688
Total Operating Expense $2,706,899 $2,804,243 $2,948,040 $3,128,098 $3,211,222 $3,595,019 $3,686,611
NET OPERATING REVENUE $547,389 $643,985 $175,593 $483,942 $906,432 $566,480 $372,326
Depreciation 526,621 515,953 516,349 551,772 606,651 608,168 609,688
Capacity Fees 98,676 172,497 222,627 242,844 341,758 120,000 120,000
Connection fees 114,735 168,524 208,686 218,435 342,839 300,000 300,000
Rental Income 56,028 37,008 37,848 38,713 67,605 37,000 37,000
Interest on Reserves 19,732 8,239 12,400 11,052 33,610 9,570 9,570
Net Revenues for Debt Service $1,363,181 $1,546,206 $1,173,503 $1,546,759 $2,298,894 $1,641,218 $1,448,584
Water Debt Service
Series 2012C Rev Notes $156,965 $175,095 $173,595 $176,095 $173,995 $176,895 $174,695
Series 2015B Rev Notes 0 0 0 147,458 150,200 146,900 148,600
Series 2018B Rev Bonds 0 0 0 0 0 0 217,589
Subtotal Revenue Debt $156,965 $175,095 $173,595 $323,553 $324,195 $323,795 $540,884
Subordinated Debt Serivce
2004/2012A G.O. Debt Abatements $93,257 $94,380 $96,425 $94,075 $95,890 $97,050 $0
Series 2010B G.O.- Public Works 91,998 94,250 92,338 93,263 93,975 94,235 94,260
2014 G.O. Abatements 0 0 110,205 135,738 133,988 132,088 135,188
Total Water Debt $342,219 $363,725 $472,563 $646,628 $648,048 $647,168 $770,331
Debt Service Coverage
Net Revenues / Revenue Debt8.688.836.764.787.095.072.68
Net Revenues / All Debt 3.98 4.25 2.48 2.39 3.55 2.54 1.88
Audited Financial Statements
19
DESCRIPTION OF THE MUNICIPAL SEWER UTILITY
THE SEWER UTILITY
The municipal sewer utility (the “Sewer Utility”) is a City utility that accounts for the administration, operation, debt
management, and maintenance of the City’s sewer infrastructure and delivery system. The Sewer Utility does not
treat its own sewage, but instead conveys its wastewater to the Des Moines Wastewater Reclamation Authority (the
“WRA”).
The management and operation of the Sewer Utility is directed by the City Council. The City Council has complete
authority to establish rates and charges for utility services and is not subject to rate regulation by any state agency.
The Public Works Director is responsible for implementation of City Council policies and daily operations of the
Sewer Utility. Through its agreement with the WRA which started in 2006, the City will have sufficient sanitary
sewer capacity to meet the needs of its growing community.
THE DES MOINES METROPOLITAN WASTERWATER RECLAMATION AUTHORITY
The WRA, which includes the City, eleven surrounding communities, two counties and three sanitary sewer districts,
was formed to implement wastewater conveyance and treatment facilities improvements mandated by federal law.
Each WRA participant institutes user charges to cover the cost of operation of WRA facilities as well as debt
payments related to the construction of improvements.
To facilitate the implementation of capital improvements to expand the treatment and conveyance capacity of the
existing facility, the constituent communities have accomplished a reorganization of the WRA to provide for a
financing structure that allows all participants to share in debt liability, as well as establish a mechanism for new
communities to acquire ownership rights to the facility.
The WRA is a separate legal entity created on July 1, 2004, governed by an intergovernmental agreement under
Chapters 28E (Joint Exercise of Governmental Powers) and 28F (Joint Financing of Public Works and Facilities) of
the Code of Iowa. The original agreement was amended and restated in 2014.
SEWER UTILITY RATES AND CHARGES
The following Sewer Utility rates and charges were adopted by the City Council on April 16, 2018 and will become
effective on July 1, 2018.
Metered Sanitary Sewer
Usage Per Month
Minimum Monthly Bill
Current Rates
Rates Effective
July 1, 2018
First 1,000 gallons $13.19 $13.95
1,001 gallons and over 9.97 10.54
SEWER UTILITY SALES HISTORY AND TOTAL CHARGES (Residential and Commercial Customers)
Fiscal Year
Sewer Operating
Revenues
Total Sewer Usage
(1K Gallons)
2012-13 $2,451,486 287,299
2013-14 2,696,807 301,445
2014-15 2,853,205 300,838
2015-16 3,147,845 327,660
2016-17 3,566,663 348,905
20
NUMBER OF SEWER UTILITY CUSTOMERS (Residential and Commercial Customers)
Fiscal Year Total
2012-13 5,025
2013-14 5,302
2014-15 5,586
2015-16 5,968
2016-17 6,445
LARGER SEWER UTILITY CUSTOMERS (FY 2016-17)
Customer Name
Sewer Utility
Charges
% of Total Sewer
Utility Charges
Midwest Country Estates $144,791.70 4.06%
Prairie Grass Apartments 67,420.17 1.89%
HyVee Car Wash 53,192.85 1.49%
The Village at Legacy Pointe 40,979.85 1.15%
HyVee Store 37,039.04 1.04%
Windfield West 35,402.32 0.99%
QG Printing II LLC 28,065.30 0.79%
YMCA 27,063.60 0.76%
Autumn Ridge Apartments 19,523.96 0.55%
JNB Hometown Harbor 17,339.55 0.49%
Total Larger Customer Charges $470,818.34 13.21%
Total Sewer Utility Charges $3,566,663.00
SEWER UTILITY FUNDS ON HAND (Cash and Investments by Fund as of February 28, 2018)
Sewer Operating Fund $4,592,439.77
Sewer Reserve Fund 303,132.38
Sewer Construction Fund 0.00
Sewer Sinking Fund 242,771.63
Total $5,138,343.78
SEWER UTILITY REVENUE DEBT
City Issued Sewer Revenue Debt Paid 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.
21
Annual Fiscal Year Debt Service Payments of Sewer Revenue Debt (Includes the 2018C Bonds)
Current Outstanding 2018C Bonds 2018 SRF Notes Total Outstanding
Fiscal
Year Principal
Principal &
Interest Principal*
Principal &
Interest* Principal*
Principal &
Interest* Principal*
Principal
& Interest*
2018-19 $555,000 $894,972 $121,336 $23,349 $555,000 $1,039,657
2019-20 565,000 899,340 $130,000 257,723 $60,000 113,200 755,000 1,270,263
2020-21 655,000 977,040 140,000 264,408 130,000 189,600 925,000 1,431,048
2021-22 675,000 982,940 145,000 265,698 135,000 192,000 955,000 1,440,638
2022-23 689,000 982,296 145,000 261,710 135,000 189,300 969,000 1,433,306
2023-24 704,000 982,216 155,000 267,505 140,000 191,600 999,000 1,441,321
2024-25 770,000 1,032,536 160,000 267,855 140,000 188,800 1,070,000 1,489,191
2025-26 788,000 1,033,686 165,000 267,895 145,000 191,000 1,098,000 1,492,581
2026-27 806,000 1,034,426 170,000 267,533 145,000 188,100 1,121,000 1,490,059
2027-28 824,000 1,034,756 175,000 266,838 150,000 190,200 1,149,000 1,491,794
2028-29 837,000 1,029,676 185,000 270,888 155,000 192,200 1,177,000 1,492,764
2029-30 860,000 1,034,336 190,000 269,505 155,000 189,100 1,205,000 1,492,941
2030-31 879,000 1,034,436 195,000 267,380 160,000 191,000 1,234,000 1,492,816
2031-32 898,000 1,034,106 205,000 269,970 160,000 187,800 1,263,000 1,491,876
2032-33 918,000 1,034,346 210,000 266,975 165,000 189,600 1,293,000 1,490,921
2033-34 937,000 1,033,136 220,000 268,680 170,000 191,300 1,327,000 1,493,116
2034-35 962,000 1,037,496 230,000 269,990 170,000 187,900 1,362,000 1,495,386
2035-36 983,000 1,037,006 240,000 270,675 175,000 189,500 1,398,000 1,497,181
2036-37 793,000 825,040 245,000 265,835 180,000 191,000 1,218,000 1,281,875
2037-38 809,000 825,180 260,000 270,790 185,000 192,400 1,254,000 1,288,370
2038-39 185,000 188,700 185,000 188,700
Total $15,907,000 $3,565,000* $3,040,000* $22,512,000*
* Preliminary; subject to change.
(The remainder of this page has been left blank intentionally.)
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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)
23
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.
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24
Annual Fiscal Year Debt Service Payments for City Issued Revenue Debt, WRA Existing Payment Obligations
and WRA Proposed Payment Obligations (Includes the 2018C Bonds)
City Issued Debt WRA Debt Total Parity Debt
Fiscal
Year
Annual
Payments*
Annual
Payments*
Annual
Payments*
2018-19 $1,039,657 $780,346 $1,820,003
2019-20 1,270,263 819,227 2,089,490
2020-21 1,431,048 846,227 2,277,275
2021-22 1,440,638 845,785 2,286,423
2022-23 1,433,306 845,926 2,279,233
2023-24 1,441,321 845,764 2,287,085
2024-25 1,489,191 846,047 2,335,239
2025-26 1,492,581 845,503 2,338,085
2026-27 1,490,059 844,720 2,334,779
2027-28 1,491,794 844,252 2,336,046
2028-29 1,492,764 843,377 2,336,141
2029-30 1,492,941 843,267 2,336,208
2030-31 1,492,816 842,285 2,335,101
2031-32 1,491,876 842,000 2,333,876
2032-33 1,490,921 804,721 2,295,642
2033-34 1,493,116 803,883 2,296,998
2034-35 1,495,386 628,250 2,123,636
2035-36 1,497,181 595,200 2,092,381
2036-37 1,281,875 512,527 1,794,402
2037-38 1,288,370 512,478 1,800,848
2038-39 188,700 504,902 693,602
2039-40 408,506 408,507
2040-41 362,783 362,783
2041-42 300,341 300,341
2042-43 211,414 211,414
2043-44 117,450 117,450
2044-45 79,901 79,901
2045-46 79,902 79,902
2046-47 79,903 79,903
2047-48 79,879 79,879
2048-49 43,843 43,843
* Preliminary; subject to change.
25
SEWER UTILITY HISTORICAL CASHFLOW AND ANTICIPATED DEBT COVERAGE
The following table represents the financial performance of the Sewer Utility for Fiscal Year 2012-13 through Fiscal
Year 2016-17 using information from the City’s Independent Auditor Reports as well as the City’s estimate for Fiscal
Year 2017-18 and Fiscal Year 2018-19. Based on the Fiscal Year 2016-17 Independent Auditor Reports, the
$3,728,023 net revenue available for debt service would provide 1.59 times coverage of the $2,338,085 projected
maximum annual debt service. The projected financial performance cannot be guaranteed.
CITY OF WAUKEE, IOWA
Sewer Enterprise Fund
YTD Budget
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Operating Revenues
Sales to Customers $2,444,961 $2,688,588 $2,838,823 $3,137,689 $3,540,858 $3,922,976 $4,355,974
Miscellaneous Revenues 6,525 8,219 14,382 10,156 25,805 26,800 7,500
Total Operating Revenues $2,451,486 $2,696,807 $2,853,205 $3,147,845 $3,566,663 $3,949,776 $4,363,474
Operating Expenses
Personal Services $530,695 565,339 581,993
$589,831 $705,258 $839,610 $864,800
Contractual 517,443 506,967 660,784 562,052 614,391 805,394 718,608
WRA O&M Exp 1,005 5,641 12,891 27,207 31,786 34,515 423,799
Surcharge - Received (398) (460) (8,601) 0 0 0 0
Depreciation 564,637 564,753 614,434 607,532 652,522 654,480 656,443
Total Operating Expense $1,613,382 $1,642,240 $1,861,501 $1,786,622 $2,003,958 $2,333,999 $2,663,650
Net Operating Income $838,104 $1,054,567 $991,704 $1,361,223 $1,562,705 $1,615,777 $1,699,824
Add: Depreciation 564,637 564,753 614,434 607,532 652,522 654,480 656,443
Capacity Fees 576,970 847,439 421,032 582,996 920,275 318,089 400,000
Connections Fees 105,454 288,372 162,679 672,994 553,656 1,075,629 1,070,000
Interest on Reserves 5,727 4,129 7,393 7,720 38,865 20,000 10,000
Net Revenue for Debt Service $2,090,892 $2,759,260 $2,197,242 $3,232,465 $3,728,023 $3,683,975 $3,836,267
Sewer Debt Service
Series 1998A SRF Bonds $32,340 $30,643 $31,153 $31,645 $32,120 $33,578 $0
Series 1998B SRF Bonds 66,070 62,495 64,498 66,448 68,345 69,190 0
Series 1998C SRF Bonds 80,409 76,650 78,425 80,148 81,818 83,435 0
Series 2013A Revenue Notes 0 130,930 122,744 120,744 118,744 116,744 124,744
Series 2016C Revenue Notes 0 0 0 0 36,250 81,056 191,056
Series 2017 SRF Loan 0 0 0 0 0 108,291 579,171
Series 2018 SRF Loan 00000023,349
Series 2018C Revenue Bonds 0 0 0 0 0 0 121,336
Total City Debt Service $178,819 $300,717 $296,819 $298,984 $337,276 $492,294 $1,039,657
Total WRA Debt $445,068 $512,262 $576,092 $720,057 $706,059 $736,511 $772,041 1)
Subtotal Sewer Revenue Debt $623,887 $812,979 $872,911 $1,019,041 $1,043,335 $1,228,805 $1,811,698
Subordinated Debt Service
Series 2004C/2012A GO Bonds 67,008 $66,225 $0 $0 $0 $0 $0
Series 2010C G.O.-Public Works 92,165 93,650 92,587 93,513 94,075 94,335 94,360
Total Sewer Debt $783,059 $972,854 $965,498 $1,112,553 $1,137,410 $1,323,140 $1,906,058
Debt Service Coverage
Net Revenues/ Revenue Debt 3.35 3.39 2.52 3.17 3.57 3.00 2.12
Net Revenues / All Debt 2.67 2.84 2.28 2.91 3.28 2.78 2.01
1) Includes the offset of the City’s portion of interest earnings on the WRA debt of $2,669 and the WRA prior year adjustment of
$5,636.
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APPENDIX A
GENERAL INFORMATION ABOUT THE CITY OF WAUKEE, IOWA
This section is included for informational purposes only. THE $3,410,000* WATER REVENUE BONDS, SERIES
2018B (THE “SERIES 2018B BONDS”) AND THE $3,565,000* SEWER REVENUE BONDS, SERIES 2018C (THE
“SERIES 2018C BONDS”) (COLLECTIVELY, THE “BONDS”) ARE NOT GENERAL OBLIGATIONS OF THE CITY
OF WAUKEE, IOWA but are payable solely and only from net revenues of the municipal water utility (the “Water
Utility”) and the municipal sewer utility (the “Sewer Utility”), respectively. The Bonds are not a debt of nor a charge
against the City of Waukee, Iowa within the meaning of any constitutional or statutory limitation or provision and are
not payable in any manner by taxation, and the City shall not be liable by reason of the failure of the net revenues to be
sufficient for the payment of the Bonds.
* Preliminary; subject to change.
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A-1
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.
A-2
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.
A-3
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.
A-4
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
A-5
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.
A-6
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
A-7
OTHER 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
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.
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.
A-8
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
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.
A-9
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.
A-10
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 will first be 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 (the “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.
A-11
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.
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 C 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.
A-12
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
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 C 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
A-13
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.
A-14
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.
A-15
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 website.
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APPENDIX B
FORM OF LEGAL OPINIONS
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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 Water Revenue Bonds, Series 2018B, by said City, dated June 19, 2018,
in the denomination of $5,000 or multiples thereof, in the aggregate amount of $3,410,000 (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 Resolution has been duly adopted by the Issuer and constitutes a valid and
binding obligation of the Issuer enforceable upon the Issuer. The Resolution creates a valid lien
on the Net Revenues of the Municipal Water Utility pledged by the Resolution for the security of
the Bonds.
The lien of the Bonds ranks on a parity as to the pledge of Net Revenues with respect to
other Outstanding Obligations and Additional Obligations. The right to issue Additional
Obligations is reserved upon conditions set forth in the Resolution.
3. The Bonds have been duly authorized, issued and delivered by the Issuer and are
valid and binding special obligations of the Issuer, payable solely from the sources provided
therefor in the Resolution.
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
DRAFT
City of Waukee, State of Iowa
$3,410,000 Water Revenue Bonds, Series 2018B
Page 2
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.
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,
01469284-2\21938-163
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 Sewer Revenue Bonds, Series 2018C, by said City, dated June 19, 2018,
in the denomination of $5,000 or multiples thereof, in the aggregate amount of $3,565,000 (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 Resolution has been duly adopted by the Issuer and constitutes a valid and
binding obligation of the Issuer enforceable upon the Issuer. The Resolution creates a valid lien
on the Net Revenues of the Municipal Sewer Utility pledged by the Resolution for the security of
the Bonds.
The lien of the Bonds ranks on a parity as to the pledge of Net Revenues with respect to
other Outstanding Obligations and Additional Obligations. The right to issue Additional
Obligations is reserved upon conditions set forth in the Resolution.
3. The Bonds have been duly authorized, issued and delivered by the Issuer and are
valid and binding special obligations of the Issuer, payable solely from the sources provided
therefor in the Resolution.
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
DRAFT
City of Waukee, State of Iowa
$3,565,000 Sewer Revenue Bonds, Series 2018C
Page 2
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.
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,
01469306-2\21938-164
APPENDIX C
JUNE 30, 2017 INDEPENDENT AUDITOR’S REPORTS
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APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATES
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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
$3,410,000 Water Revenue Bonds, Series 2018B (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.
2
"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.
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 captions "Water Utility Rates and
Charges," "Number of Water Utility Meters", "Larger Water Utility Customers," "Sales History
and Water Utility Charges," and "Water Utility Revenue Debt."
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: $3,410,000 Water Revenue Bonds, Series 2018B
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:
01469282-3\21938-163
(This page has been left blank intentionally.)
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
$3,565,000 Sewer Revenue Bonds, Series 2018C (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.
2
"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.
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 "Sewer Utility Rates and Charges,"
"Sewer Utility Sales History and Total Charges," "Number of Sewer Customers," "Larger Sewer
Utility Customers," "Sewer Utility Revenue Debt," and "Other Sewer Utility Revenue Debt."
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: $3,565,000 Sewer Revenue Bonds, Series 2018C
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:
01469292-3\21938-164
(This page has been left blank intentionally.)
OFFICIAL BID FORM – SERIES 2018B BONDS
To: City Council of Sale Date: May 21, 2018
City of Waukee, Iowa 10:00 A.M. Central Time
RE: 3,410,000* Water Revenue Bonds, Series 2018B (the “Series 2018B Bonds”)
This bid is a firm offer for the purchase of the Series 2018B 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 Series 2018B Bonds, in accordance with the NOTICE OF BOND SALE and TERMS OF OFFERING, we will pay
you $____________________________ (not less than $3,369,080) plus accrued interest to date of delivery for fully registered Series
2018B 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 Series 2018B
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 $4,000,000. 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 Series
2018B Bonds is adjusted as described above. Any change in the principal amount of any maturity of the Series 2018B 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 Series 2018B 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 Series 2018B 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: _______________________________________
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OFFICIAL BID FORM – SERIES 2018C BONDS
To: City Council of Sale Date: May 21, 2018
City of Waukee, Iowa 10:00 A.M. Central Time
RE: $3,565,000* Sewer Revenue Bonds, Series 2018C (the “Series 2018C Bonds”)
This bid is a firm offer for the purchase of the Series 2018C 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 Series 2018C Bonds, in accordance with the NOTICE OF BOND SALE and TERMS OF OFFERING, we will pay
you $____________________________ (not less than $3,522,220) plus accrued interest to date of delivery for fully registered Series
2018C Bonds bearing interest rates and maturing in the stated years as follows:
Coupon Maturity Yield Coupon Maturity Yield Coupon Maturity Yield
________ 2020 ________ ________ 2027 ________ ________ 2033 ________
________ 2021 ________ ________ 2028 ________ ________ 2034 ________
________ 2022 ________ ________ 2029 ________ ________ 2035 ________
________ 2023 ________ ________2030 ________ ________ 2036 ________
________ 2024 ________ ________2031 ________ ________ 2037 ________
________ 2025 ________ ________2032 ________ ________ 2038 ________
________ 2026 ________
* Preliminary; subject to change. The City reserves the right to increase or decrease the aggregate principal amount of the Series 2018C
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 $4,000,000. 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 Series
2018C Bonds is adjusted as described above. Any change in the principal amount of any maturity of the Series 2018C 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 Series 2018C 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 Series 2018C 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: _______________________________________