HomeMy WebLinkAbout2016-08-01-I08 GO Refunding Bond Series 2016B - Advertise Sale AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: August 1, 2016
AGENDA ITEM: Consideration of approval of a resolution directing the advertisement for
sale of not to exceed $1,720,000 General Obligation Refunding Bonds,
Series 2016B, and approving electronic bidding procedures and official
statement
FORMAT: Resolution
SYNOPSIS INCLUDING PRO & CON: The proposed resolution sets August 15, 2016 as the
date for receipt of bids and consideration of sale.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $1,720,000
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Preliminary Official Statement
PREPARED BY: Becky Schuett
REVIEWED BY:
- 1 -
RESOLUTION 16-
RESOLUTION DIRECTING THE ADVERTISEMENT FOR
SALE OF NOT TO EXCEED $1,720,000 GENERAL
OBLIGATION REFUNDING BONDS, SERIES 2016B, AND
APPROVING ELECTRONIC BIDDING PROCEDURES AND
OFFICIAL STATEMENT
WHEREAS, the Issuer is in need of funds to pay costs of refunding or refinancing
outstanding debt, including General Obligation Bonds, Series 2008B and General Obligation
Bonds, Series 2008C, essential corporate purpose(s), and it is deemed necessary and advisable
that General Obligation Refunding Bonds, to the amount of not to exceed $1,720,000 be
authorized for said purpose(s); and
WHEREAS, pursuant to notice published as required by Section 384.25 of the Code of
Iowa, this Council has held a public meeting and hearing upon the proposal to institute
proceedings for the issuance of the Bonds, and the Council is therefore now authorized to
proceed with the issuance of said Bonds for such purpose(s); and
WHEREAS, in conjunction with its Municipal Advisor, PFM Financial Advisors LLC.,
the City has caused a Preliminary Official Statement to be prepared outlining the details of the
proposed sale of the Bonds; and
WHEREAS, the Council has received information from its Municipal Advisor evaluating
and recommending the procedure hereinafter described for electronic, facsimile and internet
bidding to maintain the integrity and security of the competitive bidding process and to facilitate
the delivery of bids by interested parties; and
WHEREAS, the Council deems it in the best interests of the City and the residents
thereof to receive bids to purchase such Bonds by means of both sealed and electronic internet
communication.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WAUKEE, STATE OF IOWA:
Section 1. That the receipt of electronic bids by facsimile machine and through the Parity
Competitive Bidding System described in the Notice of Sale and Official Statement are hereby
found and determined to provide reasonable security and to maintain the integrity of the
competitive bidding process, and to facilitate the delivery of bids by interested parties in
connection with the offering at public sale.
Section 2. That General Obligation Refunding Bonds, Series 2016B, of City of Waukee,
State of Iowa, in the amount of $1,720,000, to be issued as referred to in the preamble of this
Resolution, to be dated September 20, 2016, be offered for sale pursuant to the published
advertisement.
- 2 -
Section 3. That the preliminary Official Statement in the form presented to this meeting
be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of
the Securities and Exchange Commission, subject to such revisions, corrections or modifications
as the Mayor and City Clerk, upon the advice of bond counsel and the City's Financial Advisor,
shall determine to be appropriate, and is authorized to be distributed in connection with the
offering of the Bonds for sale.
Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at least
once, the last one of which shall be not less than four clear days nor more than twenty days
before the date of the sale. Publication shall be made in the "The Dallas County News", a legal
newspaper, printed wholly in the English language, published within the county in which the
Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter
75 of the Code of Iowa, and shall state that this Council, on the 15th day of August, 2016, 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 on or before August 9, 2016)
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: 515-987-4522 (the
"Issuer") before 10:00 o'clock A.M., on the 15th day of August, 2016. The bids will then be
publicly opened and referred for action to the meeting of the City Council in conformity with the
TERMS OF OFFERING.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION REFUNDING BONDS, SERIES
2016b, in the amount of $1,720,000*, to be dated the date of
delivery (anticipated September 20, 2016) (the "Bonds")
*Subject to principal adjustment pursuant to official Terms of Offering.
Manner of Bidding: Open bids will not be received. Bids will be received in any of the
following methods:
Sealed Bidding: Sealed bids may be submitted and will be received at the office
of the 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 at the office of the City's Municipal
Advisor, PFM Municipal Advisors LLC, 801 Grand Avenue, Suite 3300,
Des Moines, Iowa, 50309 (facsimile number: 515-243-6994). Electronic
facsimile bids will be sealed and treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of sealed
bids will be announced. Sealed bids will then be publicly opened and 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, City Hall, 230 West Hickman Road, Waukee,
Iowa 50263; Telephone: 515-987-4522 or the Issuer's Municipal Advisor, PFM Municipal
Advisors LLC, 801 Grand Ave, 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 accord
with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C.,
Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together
with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except
to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not
examine or review or express any opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in connection with the sale, issuance or
marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Waukee, State of Iowa.
Rebecca D. Schuett
City Clerk, City of Waukee, State of Iowa
(End of Notice)
PASSED AND APPROVED this 1st day of August, 2016.
__________________________________
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 AUGUST 1, 2016
Refunding Issue Rating: Non Rated
Subject to the City’s compliance with certain covenants, under present law, in the opinion of Ahlers & Cooney, P.C., Bond Counsel, interest on the Bonds is
excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal
alternative minimum tax imposed on individuals and corporations. However, with respect to corporations (as defined for federal income tax purposes), such interest
is included in adjusted current earnings for the purpose of determining the federal alternative minimum tax for such corporations. Interest on the Bonds is not exempt
from present Iowa income taxes. The Bonds will be designated as “qualified tax-exempt obligations.” See “TAX MATTERS” herein.
.
CITY OF WAUKEE, IOWA
$1,720,000* General Obligation Refunding Bonds, Series 2016B
BIDS RECEIVED: Monday, August 15, 2016, 10:00 o’clock A.M., Central Time
AWARD: Monday, August 15, 2016, 5:30 o’clock P.M., Central Time
Dated: Date of Delivery (September 20, 2016) Principal Due: June 1, as shown inside front cover
The $1,720,000* General Obligation Refunding Bonds, Series 2016B (the “Bonds”) are being issued pursuant to
Division III of Chapter 384 of the Code of Iowa and resolutions to be adopted by the City Council of the City of Waukee,
Iowa (the “City”). The Bonds are being issued to current refund on September 21, 2016, $565,000 of the City’s
outstanding General Obligation Bonds, Series 2008B, originally dated April 8, 2008, maturing June 1, 2017 through 2021
(the “Series 2008B Bonds”) and $1,155,000 of the City’s outstanding General Obligation Bonds, Series 2008C (Urban
Renewal), originally dated December 15, 2008, maturing June 1, 2017 through 2022 (the “Series 2008C Bonds”)
collectively (the “Refunded Bonds”). The Bonds are general obligations of the City, for which the City will pledge to
levy ad valorem taxes against all taxable property within the City without limitation as to rate or amount.
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-form only, in the principal amount of $5,000 and integral
multiples thereof. Purchaser will not receive certificates representing their interest in the Bonds purchased. Principal of
the Bonds, payable annually on each June 1, beginning June 1, 2017 and interest on the Bonds, payable initially on June
1, 2017 and thereafter on each December 1 and June 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 note as shown on the records of ownership maintained by the
Registrar as of the 15th day of the month preceding the interest payment date (the “Record Date”).
THE BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER
MINIMUM BID: $1,711,400
GOOD FAITH DEPOSIT: Required of Purchaser Only
TAX MATTERS: Federal: Tax-Exempt
State: Taxable
See “TAX MATTERS” for more
information.
The Bonds are offered, subject to prior sale, withdrawal or modification, when, as, and if issued subject to the legal
opinion of Ahlers & Cooney, P.C., Bond Counsel, 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 September 20, 2016. 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
$1,720,000* General Obligation Refunding Bonds, Series 2016B
MATURITY: The Bonds will mature June 1 in the years and amounts as follows:
Year Amount*
2017 $280,000
2018 305,000
2019 310,000
2020 310,000
2021 315,000
2022 200,000
* PRINCIPAL
ADJUSTMENT: Preliminary; subject to change. The aggregate principal amount of the Bonds, and each
scheduled maturity thereof, are subject to reduction by the City or its designee 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 $1,720,000. Interest
rates specified by the successful bidder for each maturity will not change. Final
adjustments shall be in the sole discretion of the City.
The dollar amount of the purchase price proposed by the successful bidder will be changed
if the aggregate principal amount of the Bonds is adjusted as described above. Any change
in the principal amount of any maturity of the Bonds will be made while maintaining, as
closely as possible, the successful bidder's net compensation, calculated as a percentage of
bond principal. The successful bidder may not withdraw or modify its bid as a result of any
post-bid adjustment. Any adjustment shall be conclusive, and shall be binding upon the
successful bidder.
INTEREST: Interest on the Bonds will be payable on June 1, 2017 and semiannually thereafter.
REDEMPTION: The Bonds will NOT be subject to redemption prior to their scheduled maturity.
COMPLIANCE WITH S.E.C. RULE 15c2-12
Municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations,
Securities Exchange Act of 1934, Rule 15c2-12 Municipal Securities Disclosure.
Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to
prospective bidders. Its primary purpose is to disclose information regarding the Bonds to prospective bidders in the
interest of receiving competitive bids in accordance with the TERMS OF OFFERING contained herein. Unless an
addendum is received prior to the sale, this document shall be deemed the “Near Final Official Statement”.
Review Period: This Preliminary Official Statement has been distributed to City staff as well as to prospective
bidders for an objective review of its disclosure. Comments, omissions or inaccuracies must be submitted to PFM
Financial Advisors LLC (the “Municipal Advisor”) at least two business days prior to the sale. Requests for
additional information or corrections in the Preliminary Official Statement received on or before this date will not be
considered a qualification of a bid received. If there are any changes, corrections or additions to the Preliminary
Official Statement, prospective bidders will be informed by an addendum at least one business day prior to the sale.
Final Official Statement: Upon award of sale of the Bonds, the legislative body will authorize the preparation of a
final Official Statement that includes the offering prices, interest rates, aggregate principal amount, principal amount
per maturity, anticipated delivery date and other information required by law and the identity of the syndicate
manager (the “Syndicate Manager”) and syndicate members. Copies of the final Official Statement will be delivered
to the Syndicate Manager within seven business days following the bid acceptance.
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any
representations, other than those contained in the Preliminary Official Statement. This Preliminary Official Statement
does not constitute any offer to sell or the solicitation of an offer to buy, nor shall there be 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, estimates and expressions of opinion herein are subject to change without notice and neither the delivery
of this Preliminary Official Statement nor any sale made hereunder, shall, under any circumstances, create any
implication that there has been no change in the affairs of the City since the date hereof. This Preliminary Official
Statement is submitted in connection with the sale of the securities referred to herein and may not be reproduced or
used, in whole or in part, for any other purpose.
This Preliminary Official Statement and 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 issue.
(This page has been left blank intentionally.)
TABLE OF CONTENTS
NOTICE OF BOND SALE .......................................................................................................................................... i
TERMS OF OFFERING ............................................................................................................................................ ii
SCHEDULE OF BOND YEARS ............................................................................................................................. vii
INTRODUCTION ....................................................................................................................................................... 1
AUTHORITY AND PURPOSE ................................................................................................................................ 1
OPTIONAL REDEMPTION .................................................................................................................................... 2
INTEREST ................................................................................................................................................................ 2
PAYMENT OF AND SECURITY FOR THE BONDS ............................................................................................ 2
BOOK-ENTRY-ONLY ISSUANCE ........................................................................................................................ 3
FUTURE FINANCING; LITIGATION .................................................................................................................... 4
DEBT PAYMENT HISTORY; LEGALITY ............................................................................................................ 5
TAX MATTERS ....................................................................................................................................................... 5
RATING; MUNICIPAL ADVISOR ......................................................................................................................... 7
CONTINUING DISCLOSURE ................................................................................................................................ 8
CERTIFICATION ..................................................................................................................................................... 8
CITY PROPERTY VALUES ..................................................................................................................................... 9
IOWA PROPERTY VALUATIONS ........................................................................................................................ 9
PROPERTY VALUATIONS (1/1/20154 Valuations for Taxes Payable July 1, 2016 to June 30, 2017) ................. 9
2015 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY .................................................................. 9
TREND OF VALUATIONS ................................................................................................................................... 10
LARGER TAXPAYERS......................................................................................................................................... 10
UTILITY PROPERTY TAX REPLACEMENT ..................................................................................................... 11
PROPERTY TAX LEGISLATION ........................................................................................................................ 11
CITY INDEBTEDNESS............................................................................................................................................ 13
DEBT LIMIT .......................................................................................................................................................... 13
DIRECT DEBT ....................................................................................................................................................... 13
REVENUE DEBT ................................................................................................................................................... 17
OVERLAPPING DEBT .......................................................................................................................................... 20
DEBT RATIOS ....................................................................................................................................................... 20
LEVIES AND TAX COLLECTIONS .................................................................................................................... 21
TAX RATES ........................................................................................................................................................... 21
LEVY LIMITS ........................................................................................................................................................ 21
FUNDS ON HAND (CASH AND INVESTMENTS AS OF JUNE 30, 2016) ...................................................... 22
THE CITY .................................................................................................................................................................. 23
CITY GOVERNMENT ........................................................................................................................................... 23
EMPLOYEES AND PENSIONS ............................................................................................................................ 23
UNION CONTRACTS; INSURANCE ................................................................................................................... 24
OTHER POST-EMPLOYMENT BENEFITS ........................................................................................................ 25
GENERAL INFORMATION ................................................................................................................................... 26
LOCATION AND TRANSPORTATION .............................................................................................................. 26
LARGER EMPLOYERS ........................................................................................................................................ 26
BUILDING PERMITS ............................................................................................................................................ 27
U.S. CENSUS DATA; UNEMPLOYMENT RATES............................................................................................. 27
EDUCATION .......................................................................................................................................................... 27
FINANCIAL SERVICES ........................................................................................................................................ 28
FINANCIAL STATEMENTS ................................................................................................................................. 28
APPENDIX A - FORM OF LEGAL OPINION
APPENDIX B - JUNE 30, 2015 INDEPENDENT AUDITOR’S REPORTS
APPENDIX C - FORM OF CONTINUING DISCLOSURE CERTIFICATE
OFFICIAL BID FORM
CITY OF WAUKEE, IOWA
City Council
William Peard Mayor
Rick Peterson Council Member/Mayor Pro Tem
Brian Harrison Council Member
Shelly Hughes Council Member
Larry Lyon Council Member
Anna Bergman Council Member
Administration
Tim Moerman, City Administrator
Rebecca Schuett, City Clerk
Linda Burkhart, Director of Finance
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
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: 515-987-4522 (the "Issuer") before 10:00 o'clock A.M., on the 15th day of August, 2016.
The bids will then be publicly opened and referred for action to the meeting of the City Council in conformity with
the TERMS OF OFFERING.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016b, in the amount
of $1,720,000*, to be dated the date of delivery (anticipated September 20, 2016) (the
"Bonds")
*Subject to principal adjustment pursuant to official Terms of Offering.
Manner of Bidding: Open bids will not be received. Bids will be received in any of the following methods:
Sealed Bidding: Sealed bids may be submitted and will be received at the office of the 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 at
the office of the City's Municipal Advisor, PFM Municipal Advisors LLC, 801 Grand Avenue, Suite
3300, Des Moines, Iowa, 50309 (facsimile number: 515-243-6994). Electronic facsimile bids will be
sealed and treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of sealed bids will be
announced. Sealed bids will then be publicly opened and 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, City Hall, 230
West Hickman Road, Waukee, Iowa 50263; Telephone: 515-987-4522 or the Issuer's Municipal Advisor, PFM
Municipal Advisors LLC, 801 Grand Ave, 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 accord with the Terms of
Offering as set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C., Attorneys of Des
Moines, Iowa, as to the legality and their opinion will be furnished together with the printed Bonds without cost to the
purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of
the Bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or
completeness of documents, materials or statements made or furnished in connection with the sale, issuance or
marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any irregularities as deemed to
be in the best interests of the public.
By order of the City Council of the City of 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”) $1,720,000* General Obligation Refunding Bonds,
Series 2016B (the “Bonds”) will be received on Monday, August 15, 2016 before 10:00 o’clock A.M. Central Time
after which time they will be tabulated. The City Council will consider award of the Bonds at 5:30 o’clock 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, Director of Finance, City of
Waukee, 230 West Hickman Road, Waukee, Iowa 50263, or by telephoning 515-987-4522. This section sets forth the
description of certain terms of the Bonds as well as the TERMS OF OFFERING with which all bidders and bid
proposals are required to comply, as follows:
DETAILS OF THE BONDS
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016B in the principal amount of $1,720,000*, will be
dated the date of delivery date (anticipated to be September 20, 2016) in the denomination of $5,000 or multiples
thereof, and will mature June 1 as follows:
Year Amount*
2017 $280,000
2018 305,000
2019 310,000
2020 310,000
2021 315,000
2022 200,000
ADJUSTMENT TO NOTE MATURITY AMOUNTS
The aggregate principal amount of the Bonds, and each scheduled maturity thereof, are subject to reduction by the
City or its designee 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 $1,720,000. Interest rates specified by the
successful bidder for each maturity will not change. Final adjustments shall be in the sole discretion of the City.
The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal
amount of the Bonds is adjusted as described above. Any change in the principal amount of any maturity of the
Bonds will be made while maintaining, as closely as possible, the successful bidder's net compensation, calculated as
a percentage of bond principal. The successful bidder may not withdraw or modify its bid as a result of any post-bid
adjustment. Any adjustment shall be conclusive, and shall be binding upon the successful bidder.
TERM-BOND OPTION
Bidders shall have the option of designating the Bonds as serial bonds or term bonds, or both. The bid must designate
whether each of the principal amounts shown above represent a serial maturity or a mandatory redemption
requirement for a term bond maturity. (See the OFFICIAL BID FORM for more information.) In any event, the
above principal amount scheduled shall be represented by either serial bond maturities or mandatory redemption
requirements, or a combination of both.
* Preliminary; subject to change.
iii
OPTIONAL REDEMPTION
The Bonds will NOT be subject to redemption prior to their scheduled maturity
INTEREST
Interest on the Bonds will be payable on June 1, 2017 and semiannually on the 1st day of December and June
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.
GOOD FAITH DEPOSIT
A good faith deposit in the amount of $17,200 (the “Deposit”) is required from the lowest bidder only. The lowest
bidder is required to submit such Deposit payable to the order of the City, not later than 12:00 o’clock P.M. Central
Time on the day of the sale of the Bonds and 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. If not so received, the bid of
the lowest bidder may be rejected and the City may direct the second lowest bidder to submit a deposit and thereafter
may award the sale of the Bonds to the same. No interest on a deposit will accrue to the successful bidder (the
“Purchaser”). The Deposit will be applied to the purchase price of the Bonds. In the event a Purchaser fails to honor
its accepted bid proposal, any deposit will be retained by the City.
FORM OF BIDS AND AWARD
All bids shall be unconditional for the Bonds for a price not less than $1,711,400, plus accrued interest, and shall
specify the rate or rates of interest in conformity to the limitations set forth under the “BIDDING PARAMETERS”
section. Bids must be submitted on or in substantial compliance with the OFFICIAL BID FORM provided by the
City. The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true interest cost
(the “TIC”) basis assuming compliance with the “GOOD FAITH DEPOSIT” 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 the Bonds, the amount payable on each interest payment date and on each
stated maturity date or earlier mandatory redemption, so that the aggregate of such amounts will equal the aggregate
purchase price offered therefore. The TIC shall be stated in terms of an annual percentage rate and shall be that rate
of interest, which is twice the semiannual rate so ascertained (also 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
Each 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.
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RECEIPT OF BIDS
Forms of Bids: Bids must be submitted on or in substantial compliance with the TERMS OF OFFERING and
OFFICIAL BID FORM provided by the City or through PARITY® competitive bidding system (the “Internet Bid
System”). The City shall not be responsible for malfunction or mistake made by any person, or as a result of the use
of an electronic bid or the means used to deliver or complete a bid. The use of such facilities or means is at the sole
risk of the prospective bidder who shall be bound by the terms of the bid as received.
No bid will be accepted after the time specified in the OFFICIAL BID FORM. 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, 230
West Hickman Road, Waukee, Iowa, 50263. Electronic internet bids must be submitted through the PARITY®
competitive bidding system (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 internet bid in a timely manner and in compliance with the requirements of the TERMS OF
OFFERING and OFFICIAL BID FORM. The City is permitting bidders to use the services of the Internet Bid System
solely as a communication mechanism to conduct the Internet bidding and the Internet Bid System is not an agent of
the City. Provisions of the TERMS OF OFFERING and OFFICIAL BID FORM shall control in the event of conflict
with information provided by the Internet Bid System.
Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the City Clerk at City Hall,
230 West Hickman Road, Waukee, Iowa, 50263 (facsimile number: 515-987-1845) or at the office of the City’s
Municipal Advisor, PFM Financial Advisors LLC, 801 Grand Avenue, Suite 3300, Des Moines, Iowa, 50309
(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 facsimile
transmission bear full responsibility for the transmission of such bid. Neither the City nor its agents shall be
responsible for malfunction or mistake made by any person, or as a result of the use of the facsimile facilities or any
other means used to deliver or complete a bid. The use of such facilities or means is at the sole risk of the prospective
bidder who shall be bound by the terms of the bid as received. Neither the City nor its agents will assume liability for
the inability of the bidder to reach the above named facsimile numbers prior to the time of sale specified above. Time
of receipt shall be the time recorded by the facsimile operator receiving the bids.
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
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interest payments to beneficial owners by participants will be the responsibility of such participants and other
nominees of beneficial owners.
MUNICIPAL BOND INSURANCE AT PURCHASER’S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of
the bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole
option and expense of the Purchaser. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the Purchaser, except that, if the City has requested and received a rating on the Bonds
from a rating agency, the City will pay that initial rating fee. Any other rating agency fees shall be the responsibility
of the Purchaser. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the
Purchaser shall not constitute cause for failure or refusal by the Purchaser to accept delivery on the Bonds. The City
reserves the right in its sole discretion to accept or deny changes to the financing documents requested by the insurer
selected by the Purchaser.
DELIVERY
The Bonds will be delivered to the Purchaser via Fast Automated Securities Transfer (“FAST”) delivery with the
Registrar holding the Bonds on behalf of DTC, against full payment in immediately available cash or federal funds.
The Bonds are expected to be delivered within forty-five days after the sale. Should delivery be delayed beyond sixty
days from the date of sale for any reason except failure of performance by the Purchaser, the Purchaser may withdraw
their bid and thereafter their interest in and liability for the Bonds will cease. When the Bonds are ready for delivery,
the City will give the Purchaser five working days notice of the delivery date and the City will expect payment in full
on that date, otherwise reserving the right at its option to determine that the Purchaser failed to comply with the offer
of purchase.
INFORMATION FROM PURCHASER
The Purchaser will be required to certify to the City immediately after the opening of bids: (i) the initial public
offering price of each maturity of the Bonds (not including sales to bond houses and brokers or similar persons or
organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of the Bonds
(not less than 10% of each maturity) were sold to the public; or (ii) if less than 10% of any maturity has been sold, the
price for that maturity determined as of the time of the sale based upon the reasonably expected initial offering price
to the public at which Purchaser reasonably expected to sell at least 10% of each maturity to the Public; and (iii) that
the initial public offering price does not exceed the fair market value of the Bonds on the sale date. The Purchaser
will also be required to provide a certificate at closing confirming the information required by this paragraph.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative
to the Bonds. The Preliminary Official Statement when further supplemented with maturity dates, principal amounts,
and interest rates of the Bonds, and any other information required by law or deemed appropriate by the City, shall
constitute a final Official Statement of the City with respect to the Bonds, as that term is defined in Rule 15c2-12 of
the Securities and Exchange Commission (the “Rule”). By awarding the Bonds to any underwriter or underwriting
syndicate submitting an OFFICIAL BID FORM therefore, the City agrees that, no more than seven (7) business days
after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which
each series of the Bonds are awarded up to 25 copies for the Bonds of the final Official Statement to permit each
“Participating Underwriter” (as that term is defined in the Rule) to comply with the provisions of such Rule. The City
shall treat the senior managing underwriter of the syndicate or syndicates 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
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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 15c2-12 promulgated by the Securities and Exchange Commission (the “SEC”)
under the Securities Exchange Act of 1934, as amended, the City will covenant and agree, for the benefit of the
registered holders or beneficial owners from time to time of the outstanding Bonds, in the resolution authorizing the
issuance of the Bonds and the Continuing Disclosure Certificate, to provide Annual Financial Information filings of
specified information and notice of the occurrence of certain material events as hereinafter described (the
“Undertakings”). The information to be provided on an annual basis, the events as to which notice is to be given, and
a summary of other provisions of the Undertakings, including termination, amendment and remedies, are set forth as
APPENDIX C to this Preliminary Official Statement.
Within the past five years while the Bond Call Notice for the redemption of the City’s general obligation Series
2006B was timely filed in 2013, the corresponding Notice of Defeasance in 2013 was not posted as required. The
2006B Bonds were redeemed in 2014. As it relates to the City’s Gas Revenue Debt, the Series 2007 Bonds were
insured by Radian Insurance. The City failed to file material event notices for bond insurance rating changes.
On December 3, 2012, the City Council adopted Resolution 12-267 approving the “Tax Compliance and Record
Retention for Tax Exempt Governmental Bonds” pursuant to which a Compliance officer was formally appointed to
ensure that the Issuer successfully carries out its tax compliance requirements under applicable provisions related to
its bond issues, including continuing disclosure requirements.
Breach of the Undertakings will not constitute a default or an “Event of Default” under the Bonds or the resolution for
the Bonds. A broker or dealer is to consider a known breach of the Undertakings, however, before recommending the
purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the
Undertakings may adversely affect the transferability and liquidity of the Bonds and their market price.
CUSIP NUMBERS
It is anticipated that the Committee on Uniform Security Identification Procedures (“CUSIP”) numbers will be printed
on the Bonds and the Purchaser must agree in the bid proposal to pay the cost thereof. In no event will the City, Bond
Counsel or Municipal Advisor be responsible for the review or express any opinion that the CUSIP numbers are
correct. Incorrect CUSIP numbers on said Bonds shall not be cause for the Purchaser to refuse to accept delivery of
said Bonds.
BY ORDER OF THE CITY COUNCIL
Linda Burkhart, Director of Finance
City of Waukee
230 West Hickman Road
Waukee, IA 50263
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$1,720,000*
CITY OF WAUKEE, IOWA
General Obligation Refunding Bonds, Series 2016B
Bonds Dated:
Interest Due: June 1, 2017 and each December 1 and June 1 to maturity
Principal Due: June 1, 2017-2022
Cumulative
Year Bond Years Bond Years
2017 $280,000 195.22 195.22
2018 305,000 517.65 712.88
2019 310,000 836.14 1,549.01
2020 310,000 1,146.14 2,695.15
2021 315,000 1,479.63 4,174.78
2022 200,000 1,139.44 5,314.22
Average Maturity (dated date): 3.090 Years
* Preliminary; subject to change
SCHEDULE OF BOND YEARS
September 20, 2016
Principal*
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PRELIMINARY OFFICIAL STATEMENT
CITY OF WAUKEE, IOWA
$1,720,000* General Obligation Refunding Bonds, Series 2016B
INTRODUCTION
This Preliminary Official Statement contains information relating to the City of Waukee, Iowa (the “City”) and its
issuance of $1,720,000* General Obligation Refunding Bonds, Series 2016B (the “Bonds”). This Preliminary Official
Statement has been executed on behalf of the City by its Director of Finance 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, Director of Finance, City of Waukee, 230 West
Hickman Road, Waukee, Iowa, 50263, or by telephoning 515-987-4522.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Division III of Chapter 384 of the Code of Iowa and resolutions to be adopted
by the City Council of the City of Waukee, Iowa. The Bonds are being issued to current refund on September 21, 2016,
$565,000 of the City’s outstanding General Obligation Bonds, Series 2008B, originally dated April 8, 2008, maturing
June 1, 2017 through 2021 (the “Series 2008B Bonds”) and $1,155,000 of the City’s outstanding General Obligation
Bonds, Series 2008C (Urban Renewal), originally dated December 15, 2008, maturing June 1, 2017 through 2022 (the
“Series 2008C Bonds”) collectively (the “Refunded Bonds”).
Name of Issue
to be Refunded
Call Date
Call Price
Maturities to
be Refunded
Principal
Amount
Coupon
Series 2008B Bonds September 21, 2016 100% June 1, 2017 $105,000 3.90%
June 1, 2018 110,000 4.00%
June 1, 2019 115,000 4.05%
June 1, 2020 115,000 4.10%
June 1, 2021 120,000 4.20%
$565,000
Name of Issue
to be Refunded
Call Date
Call Price
Maturities to
be Refunded
Principal
Amount
Coupon
Series 2008C Bonds September 21, 2016 100% June 1, 2017 $170,000 3.90%
June 1, 2018 180,000 4.00%
June 1, 2019 190,000 4.15%
June 1, 2020 195,000 4.25%
June 1, 2021 205,000 4.40%
June 1, 2022 215,000 4.50%
$1,155,000
*Preliminary; subject to change.
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The estimated Sources and Uses of the Bonds are as follows:
Sources of Funds
Par Amount of Bonds $1,720,000.00 *
Cash on Hand 37,100.00
Total Sources $1,757,100.00
Uses of Funds
Redemption of Series 2008B and 2008C Bonds 1,720,000.00 *
Underwriter’s Discount 8,600.00 *
Cost of Issuance 28,500.00 *
Total Uses $1,757,100.00 *
* Preliminary; subject to change.
OPTIONAL REDEMPTION
The Bonds will NOT be subject to redemption prior to their scheduled maturity.
INTEREST
Interest on the Bonds will be payable on June 1, 2017 and semiannually on the 1st day of December and June thereafter.
Interest and principal shall be paid to the registered holder of a note as shown on the records of ownership maintained
by the Registrar 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.
PAYMENT OF AND SECURITY FOR THE BONDS
The Bonds are general obligations of the City and the unlimited taxing powers of the City are irrevocably pledged for
their payment. Upon issuance of the Bonds, the City will levy taxes for the years and in amounts sufficient to provide
100% of annual principal and interest due on the Bonds. If, however, the amount credited to the debt service fund for
payment of the Bonds is insufficient to pay principal and interest, whether from transfers or from original levies, the
City must use funds in its treasury and is required to levy ad valorem taxes upon all taxable property in the City without
limit as to rate or amount sufficient to pay the debt service deficiency.
Nothing in the resolution authorizing the Bonds prohibits or limits the ability of the City to use legally available moneys
other than the proceeds of the general ad valorem property taxes levied as described in the preceding paragraph to pay
all or any portion of the principal of or interest on the Bonds. If and to the extent such other legally available moneys
are used to pay the principal of or interest on the Bonds, the City may, but shall not be required to, (a) reduce the
amount of taxes levied for such purpose, as described in the preceding paragraph; or (b) use proceeds of taxes levied, as
described in the preceding paragraph, to reimburse the fund or account from which such other legally available moneys
are withdrawn for the amount withdrawn from such fund or account to pay the principal of or interest on the Bonds.
The resolution authorizing the Bonds does not restrict the City’s ability to issue or incur additional general obligation
debt, although issuance of additional general obligation debt is subject to the same constitutional and statutory
limitations that apply to the issuance of the Bonds. For a further description of the City’s outstanding general obligation
debt upon issuance of the Bonds and the annual debt service on the Bonds, see “DIRECT DEBT” under “CITY
INDEBTEDNESS” herein. For a description of certain constitutional and statutory limits on the issuance of general
obligation debt, see “DEBT LIMIT” under “CITY INDEBTEDNESS” herein.
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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 system has been obtained from sources that 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 transfers and pledges
between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct
Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (the “Indirect Participants”). DTC has Standard &
Poor’s rating: AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (the
“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in
Securities, except in the event that use of the book-entry system for the Securities is discontinued.
To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of
DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of
DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee
do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the
Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible
for keeping account of their holdings on behalf of their customers.
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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.
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 anticipates no additional borrowings within 90 days of the date of this Preliminary Official Statement.
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.
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DEBT PAYMENT HISTORY
The City knows of no instance in which it has defaulted in the payment of principal or interest on its debt.
LEGALITY
The Bonds are subject to approval as to certain matters by Ahlers & Cooney, P.C. of Des Moines, Iowa as Bond
Counsel. Bond Counsel has not participated in the preparation of this Preliminary Official Statement and will not pass
upon its accuracy, completeness or sufficiency. Bond Counsel has not examined, nor attempted to examine or verify,
any of the financial or statistical statements or data contained in this Preliminary Official Statement, and will express no
opinion with respect thereto. The FORM OF LEGAL OPINION as set out in APPENDIX A to this Preliminary Official
Statement will be delivered at closing.
The legal opinion to be delivered concurrently with the delivery of the Bonds expresses the professional judgment of the
attorneys rendering the opinions 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 resolution for the Bonds. The
owners of the Bonds should, therefore, be prepared to enforce such provisions themselves if the need to do so arises. In
the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of
maturity of the principal of the Bonds. Consequently, the remedies of the owners of the Bonds (consisting primarily of
an action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the
resolutions for the Bonds) may have to be enforced from year to year.
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, and to the exercise of judicial discretion in
appropriate cases.
TAX MATTERS
Tax Exemptions and Related Considerations: Federal tax law contains a number of requirements and restrictions that
apply to the Bonds. These include investment restrictions, periodic payments of arbitrage profits to the United States,
requirements regarding the proper use of note proceeds and facilities financed with note 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 of the owners thereof for federal income tax purposes,
and is not included as an item of tax preference in computing the federal alternative minimum tax imposed on
individuals and corporations. However, with respect to corporations (as defined for federal income tax purposes), such
interest is included in adjusted current earnings for the purpose of determining the federal alternative minimum tax for
such corporations
Interest on the Bonds is not exempt from present Iowa income taxes.
6
Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel
expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. The prospective
purchaser of the Bonds should consult their tax advisors regarding the applicability of any such state and local taxes.
The prospective purchaser of the Bonds should be aware that ownership of the Bonds may result in collateral federal
income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits
tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or
Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to
purchase or carry tax-exempt obligations. Bond Counsel will not express any opinion as to such collateral tax
consequences. The prospective purchaser of the Bonds should consult their tax advisors as to collateral federal income
tax consequences.
Qualified Tax-Exempt Obligations: The City intends to 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”),
which affords banks and certain other financial institutions more favorable treatment of their deduction for interest
expense than would otherwise be allowed under Section 265(b)(2) of the Code.
Tax Accounting Treatment of Discount and Premium on Certain Bonds: The initial public offering price of certain
Bonds (the “Discount Bonds”) may be less than the amount payable on such Bonds at maturity. An amount equal to the
difference between the initial public offering price of Discount Bonds (assuming that a substantial amount of the
Discount Bonds of that maturity are sold to the public at such price) and the amount payable at maturity constitutes
original issue discount to the initial purchaser of such Discount Bonds. Owners of Discount Bonds should consult with
their own tax advisors with respect to the determination of accrued original issue discount on Discount Bonds for
federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of
Discount Bonds. It is possible that, under applicable provisions governing determination of state and local income
taxes, accrued interest on Discount Bonds may be deemed to be received in the year of accrual even though there will
not be a corresponding cash payment.
The initial public offering price of certain Bonds (“Premium Bonds”) may be greater than the amount of such Bonds at
maturity. An amount equal to the difference between the initial public offering price of Premium Bonds (assuming that
a substantial amount of the Premium Bonds of that maturity are sold to the public at such price) and the amount payable
at maturity constitutes a premium to the initial purchaser of such Premium Bonds. Purchaser of the Premium Bonds
should consult with their own tax advisors with respect to the determination of amortizable note premium on Premium
Bonds for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing
of Premium Bonds.
Related Tax Matters: The Internal Revenue Service (the “Service”) has an ongoing 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 noteholders may have no right to participate in such procedure. The commencement of an
audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the
ultimate outcome.
Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the
Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any
such payments to any Note 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 Note owner who is notified by the Service of a
failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup
withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes.
Current and future legislative proposals, including some that carry retroactive effective dates, if enacted into law, or
clarification of the Code may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation,
7
or otherwise prevent owners of the Bonds from realizing the full current benefit of the tax status of such interest. For
example, Representative David Camp, the then Chair of the House Ways and Means Committee released draft
legislation that would subject interest on the Bonds to a federal income tax at an effective rate of 10% or more for
individuals, trusts and estates in the highest tax bracket, and the Obama Administration proposed legislation that would
limit the exclusion from gross income of interest on obligations like the Bonds to some extent for taxpayers whose
income is subject to higher marginal income tax rates. Other proposals have been made that could significantly reduce
the benefit of, or otherwise affect, the exclusion from gross income of interest on obligations like the Bonds. The
introduction or enactment of any such legislative proposals or clarification of the Code may also affect, perhaps
significantly, the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult
their own tax advisors regarding any pending or proposed tax legislation, as to which Bond Counsel expresses no
opinion.
The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant
judicial and regulatory authorities as of the date of issuance and delivery of the Bonds, and Bond Counsel has expressed
no opinion as of any date subsequent thereto or with respect to any proposed or pending legislation, regulatory
initiatives or litigation.
Enforcement: There is no note trustee or similar person to monitor or enforce the terms of the resolution 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 resolution for the Bonds) 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. 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, and to
the exercise of judicial discretion in appropriate cases.
Opinion: Bond Counsel’s opinion is not a guarantee of a result, or of the transaction on which the opinion is rendered,
or of the future performance of parties to the transaction, but represents its legal judgment based upon its review of
existing statutes, regulations, published rulings and court decisions and the representations and covenants of the City
described in this section. No ruling has been sought from the Service with respect to the matters addressed in the
opinion of Bond Counsel and Bond Counsel’s opinion is not binding on the Service. Bond Counsel assumes no
obligation to update its opinion after the issue date to reflect any further action, fact or circumstance, or change in law or
interpretation, or otherwise.
ALL POTENTIAL PURCHASERS OF THE BONDS SHOULD CONSULT WITH THEIR TAX ADVISORS WITH
RESPECT TO FEDERAL, STATE AND LOCAL TAX CONSEQUENCES OF OWNERSHIP OF THE BONDS
(INCLUDING BUT NOT LIMITED TO THOSE LISTED ABOVE).
RATING
The City has not requested a rating on the Bonds.
MUNICIPAL ADVISOR
The City has retained PFM Financial Advisors LLC, Des Moines, Iowa (the “Municipal Advisor”) in connection with
the preparation of the City’s issuance of the Bonds. 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.
8
CONTINUING DISCLOSURE
In order to permit bidders for the Bonds and other Participating Underwriters in the primary offering of the Bonds to
comply with paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission (the “SEC”)
under the Securities Exchange Act of 1934, as amended, the City will covenant and agree, for the benefit of the
registered holders or beneficial owners from time to time of the outstanding Bonds, in the resolution authorizing the
issuance of the Bonds and the Continuing Disclosure Certificate, to provide Annual Financial Information filings of
specified information and notice of the occurrence of certain material events as hereinafter described (the
“Undertakings”). The information to be provided on an annual basis, the events as to which notice is to be given, and a
summary of other provisions of the Undertakings, including termination, amendment and remedies, are set forth as
APPENDIX C to this Preliminary Official Statement.
Within the past five years while the Bond Call Notice for the redemption of the City’s general obligation Series 2006B
was timely filed in 2013, the corresponding Notice of Defeasance in 2013 was not posted as required. The Series
2006B Bonds were redeemed in 2014. As it relates to the City’s Gas Revenue Debt, the Series 2007 Bonds were
insured by Radian Insurance. The City failed to file material event notices for bond insurance rating changes.
On December 3, 2012, the City Council adopted Resolution 12-267 approving the “Tax Compliance and Record
Retention for Tax Exempt Governmental Bonds” pursuant to which a Compliance officer was formally appointed to
ensure that the Issuer successfully carries out its tax compliance requirements under applicable provisions related to its
bond issues, including continuing disclosure requirements.
Breach of the Undertakings will not constitute a default or an “Event of Default” under the Bonds or the resolution for
the Bonds. A broker or dealer is to consider a known breach of the Undertakings, however, before recommending the
purchase or sale of the Bonds in the secondary market. Thus, a failure on the part of the City to observe the
Undertakings may adversely affect the transferability and liquidity of the Bonds and their market price.
CERTIFICATION
The City has authorized the distribution of this Preliminary Official Statement for use in connection with the initial sale
of the Bonds. I have reviewed the information contained within the Preliminary Official Statement prepared on behalf
of the City of Waukee, Iowa, 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 $1,720,000* General Obligation Refunding Bonds, Series
2016B.
BY ORDER OF THE CITY COUNCIL
Linda Burkhart, Director of Finance
City of Waukee
230 West Hickman Road
Waukee, IA 50263
* Preliminary; subject to change.
9
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 2015
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 2015, the taxable value
rollback rate was 55.6259% of actual value for residential property; 46.1068% of actual value for agricultural property;
86.2500% 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 (1/1/2015 Valuations for Taxes payable July 1, 2016 to June 30, 2017)
100% Actual Value
Taxable Value
(With Rollback)
Residential $1,168,765,640 $650,135,644
Commercial 55,860,438 40,373,969
Industrial 1,813,738 1,001,915
Multiresidential 11,987,573 6,758,577
Railroad 565,370 508,833
Utilities w/o Gas & Electric 3,108,454 3,108,454
Gross valuation $1,242,101,213 $701,887,392
Less military exemption (861,180) (861,180)
Net valuation $1,241,240,033 $701,026,212
TIF Increment (used to compute debt
service levies and constitutional debt limit)
$131,350,231
$131,350,231
Taxed separately:
Ag. Land
$8,372,620
$3,860,341
Ag. Buildings $202,850 $93,527
Gas & Electric Utilities 1) $6,239,687 $3,966,356
1) See “Utility Property Replacement Tax” herein.
2015 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY 1)
Taxable Valuation Percent Total
Residential $650,135,644 92.11%
Multiresidential 6,758,577 0.96%
Commercial, Industrial, Railroad and Utilities w/o Gas & Electric 44,993,171 6.37%
Gas & Electric Utilities 2) 3,966,356 0.56%
Total Gross Taxable Valuation $705,853,748 100.00%
1) Excludes Ag. Land, Ag. Buildings and Taxable TIF Increment.
2) See “Utility Property Replacement Tax” herein.
10
TREND OF VALUATIONS
Assessment
Year
Payable
Fiscal Year
100% Actual Valuation
Taxable Valuation
(With Rollback)
Taxable TIF
Increment
2011 2012-13 $1,071,249,014 $498,187,117 $121,506,240
2012 2013-14 1,106,538,383 540,750,146 117,323,335
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
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
1/1/2015
Taxable Valuation 2)
Health Care REIT 3) Commercial $20,432,377
Hy-Vee, Inc. Commercial 12,977,433
Winhall at William Pointe LLC Residential 10,387,785
Continental 296 Fund LLC Commercial 7,724,119
Stivers Iowa Real Estate, LLC Commercial 6,932,034
Shottenkirk Partnership, LP Commercial 5,425,587
Gilcrest/Jewett Lumber Company Commercial 4,873,689
Atlantic Bottling Company Commercial 4,126,266
MidAmerican Energy Co. 4) Utility 3,966,356
Downey Development, LTD Commercial 3,719,259
Downey Printing/Waukee, Inc. Industrial 3,682,863
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.
4) See “Utility Property Replacement Tax” herein.
Source: Dallas County Auditor’s Office.
11
UTILITY PROPERTY TAX REPLACEMENT
Property owned by entities involved primarily in the production, delivery, service and sale of electricity and natural gas
(“Utilities”) pay a replacement tax based upon the delivery of energy by Utilities in lieu of property taxes. All
replacement taxes are allocated among local taxing bodies by the State Department of Revenue and Finance and the
Department of Management. This allocation is made in accordance with a general allocation formula developed by the
Department of Management on the basis of general property tax equivalents. Utility properties paying the replacement
tax are exempt from the levy of property tax by political subdivisions. In addition to the replacement tax, Utility
property will continue to be valued by a special method as provided in the statute and taxed at the rate of three cents per
one thousand dollars for the general fund of the State.
By statute, the replacement tax collected by the State and allocated among local taxing bodies (including the City) shall
be treated as property tax when received and shall be disposed of by the county treasurer as taxes on real estate. It is
possible that the general obligation debt capacity of the City could be adjudicated to be proportionately reduced in
future years if Utility property were determined to be other than “taxable property” for purposes of computing the City’s
debt limit under Article XI of the Constitution of the State of Iowa. There can be no assurance that future legislation
will not (i) operate to reduce the amount of debt the City can issue or (ii) adversely affect the City’s ability to levy taxes
in the future for the payment of the principal of and interest on its outstanding debt obligations, including the Notes.
Approximately 0.6% of the City’s tax base currently is Utility property.
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, from 4% 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
95% for the 2013 assessment year and 90% for the 2014 assessment year and all years thereafter, (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”) that began in the 2015 assessment year, and
assigned a declining rollback percentage of 3.75% to such properties for each subsequent 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. Prior to Fiscal Year 2017-
18, the appropriation is a standing unlimited appropriation, but 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 from 4% to 3%, the gradual transition for Multiresidential Property from the
commercial rollback percentage (100% of Actual Valuation) to the residential rollback percentage (currently 55.6259%
of Actual Valuation), 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.
12
In Moody’s Investor Service US Public Finance Weekly Credit Outlook, dated May 30, 2013, Moody’s Investor Service
(“Moody’s”) projected that local governments in the State of Iowa are likely to experience modest reductions in
property tax revenues starting in Fiscal Year 2014-15 as a result of the Act, with sizeable reductions possible starting in
Fiscal Year 2017-18. According to Moody’s, local governments that may experience disproportionately higher revenue
losses include regions that have a substantial commercial base, a large share of Multiresidential Property (such as
college towns), or significant amounts of telecommunications property.
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 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.
13
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 2015 actual
valuation currently applicable to the fiscal year 2016-17, is as follows:
2015 Actual Valuation of Property $1,387,405,421
Legal Debt Limit of 5% 0.05
Legal Debt Limit $69,370,271
Less: G.O. Debt Subject to Limit (48,459,060) *
Less: Urban Renewal Revenue Debt Subject to Limit (805,000)
Less: Rebate Agreements (160,300) 1)
Net Debt Limit $19,945,911 *
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 and Tax Increment (Includes the Bonds)
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 9/20/16
4/08B $1,275,000 Corporate Purpose 6/16 $0 1)
12/08C 2,200,000 Urban Renewal 6/16 0 2)
4/09A 1,055,000 Corporate Purpose 6/17 130,000
6/10A 1,435,000 Corporate Purpose 6/22 775,000
6/12A 2,013,000 Refunding 6/20 668,000
6/12B 4,220,000 Refunding 6/21 2,990,000
12/12D 3,745,000 Urban Renewal 6/21 2,140,000
5/13B 3,280,000 Corporate Purpose 6/28 2,420,000
5/13C 2,265,000 Urban Renewal Refunding 6/20 1,320,000
12/13D 6,190,000 Urban Renewal 6/21 3,930,000
12/14 21,560,000 Urban Renewal 6/34 20,710,000
11/15 7,340,000 Corporate Purpose & Refunding 6/30 6,600,000
9/16B 1,720,000* Refunding 6/22 1,720,000*
Subtotal $43,403,000*
1) The 2017 through 2021 maturities will be current refunded by the Bonds on September 21, 2016.
2) The 2017 through 2022 maturities will be current refunded by the Bonds on September 21, 2016.
* Preliminary; subject to change.
14
General Obligation Bonds Paid by Sewer, Water, and Storm Water Revenues
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 9/20/16
6/10B $1,745,000 Water & Sewer Projects 6/21 $860,000
6/12 667,000 Refunding 6/18 187,000
12/13D 2,550,000 Stormwater Projects 6/33 2,210,000
12/14 1,735,000 Water Projects 6/30 1,550,000
Subtotal $4,807,000
General Obligation Bonds Paid by Golf Course Revenues
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 9/20/16
6/16 $279,990 Golf Course 6/20 $249,060
Total G.O. Debt Subject to Limit $48,459,060*
* Preliminary; subject to change.
Urban Renewal Revenue Bonds
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 9/20/16
6/10C $1,590,000 Urban Renewal Project 6/21 $805,000
Total Urban Renewal Revenue Debt Subject to Limit $805,000
15
Annual Fiscal Year G.O. Debt Service Payments Paid by Tax and Tax Increment (Includes the Bonds)
Current Outstanding Bonds Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
Principal*
Principal &
Interest*
Principal*
Principal &
Interest*
2016-17 $4,633,000 $5,781,579 $280,000 $296,870 $4,913,000 $6,078,449
2017-18 3,880,000 4,888,239 305,000 325,809 4,185,000 5,214,048
2018-19 4,335,000 5,259,439 310,000 326,874 4,645,000 5,586,313
2019-20 4,715,000 5,523,463 310,000 322,658 5,025,000 5,846,121
2020-21 4,625,000 5,308,290 315,000 323,194 4,940,000 5,631,484
2021-22 1,850,000 2,410,784 200,000 203,280 2,050,000 2,614,064
2022-23 1,760,000 2,277,884 1,760,000 2,277,884
2023-24 1,810,000 2,281,709 1,810,000 2,281,709
2024-25 1,865,000 2,289,684 1,865,000 2,289,684
2025-26 1,920,000 2,298,059 1,920,000 2,298,059
2026-27 1,985,000 2,305,459 1,985,000 2,305,459
2027-28 2,050,000 2,310,909 2,050,000 2,310,909
2028-29 2,010,000 2,209,409 2,010,000 2,209,409
2029-30 2,080,000 2,217,569 2,080,000 2,217,569
2030-31 510,000 583,175 510,000 583,175
2031-32 530,000 586,600 530,000 586,600
2032-33 550,000 589,375 550,000 589,375
2033-34 575,000 595,125 575,000 595,125
Total $41,683,000 $1,720,000* $43,403,000*
* Preliminary; subject to change.
16
Annual Fiscal Year G.O. Debt Service Payments Paid by Sewer, Water, and Storm Water Revenues
Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
2016-17 $447,000 $602,109
2017-18 455,000 598,889
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 $4,807,000
Annual Fiscal Year G.O. Debt Service Payments Paid by Golf Course Revenues
Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
2016-17 $59,737 $66,179
2017-18 61,392 66,179
2018-19 63,092 66,179
2019-20 64,839 66,179
Total $249,060
17
Annual Fiscal Year Urban Renewal Revenue Debt Service Payments Paid by TIF Revenues
Total Outstanding
Fiscal
Year
Principal
Principal &
Interest
2016-17 $145,000 $173,955
2017-18 155,000 179,315
2018-19 160,000 179,045
2019-20 170,000 183,285
2020-21 175,000 181,825
Total $805,000
REVENUE DEBT 1)
The City has outstanding revenue debt payable from the water, sewer, storm water and gas utilities, and special
assessments and golf course revenues as follows:
Date
of Issue
Original
Amount
Purpose
Final
Maturity
Principal
Outstanding
As of 9/20/16
10/98A $455,748 Sewer Improvements (SRF) 6/18 $64,000
10/98B 945,252 Sewer Improvements (SRF) 6/18 134,000
10/98C 1,178,000 Sewer Improvements (SRF) 6/18 161,000
5/09 362,000 Special Assess. Sewer Improvements 12/18 131,000
6/10 598,790 Golf Course Purchase 6/20 552,500
9/12C 2,625,000 Water Improvements 6/32 2,220,000
3/13A 1,185,000 Sewer Improvements 6/24 885,000
3/15 2,632,000 Gas Revenue (Private Placement) 6/22 2,298,000
7/15B 1,450,000 Water Improvements 6/27 1,340,000
6/16 640,000 Storm Water Improvements (Private Placement) 6/26 640,000
Total $8,425,500
1) Table excludes payments made by the City pursuant to an agreement with Des Moines Water Works for its proportionate share
of the bond payments on the Des Moines Water Works’ 2012B Bonds.
18
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
bonds 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 9/20/16
06/08A $477,428 Sewer Improvements (SRF Loan) 6/39 $456,280 1)
06/08B 312,970 Sewer Improvements (SRF Loan) 6/39 293,029 2)
06/08D 126,140 Sewer Improvements (SRF Loan) 6/38 114,028 3)
3/09B 388,920 Sewer Improvements (SRF Loan) 6/39 376,417 4)
7/09C 425,960 Sewer Improvements (SRF Loan) 6/39 412,259 5)
4/10A 233,750 Sewer Improvements (SRF Loan) 6/40 242,821 6)
4/10B 324,100 Sewer Improvements (SRF Loan) 6/40 322,732 7)
6/10C-1 37,200 Sewer Improvements (SRF Loan) 6/32 44,571 8)
6/10C-2 389,150 Sewer Improvements (SRF Loan) 6/32 400,221 9)
3/11B 739,461 Sewer Improvements (SRF Loan) 6/41 757,931 10)
5/11A 1,046,925 Sewer Improvements (SRF Loan) 6/42 1,251,507 11)
5/11C 259,564 Sewer Improvements (SRF Loan) 6/41 281,722 12)
12/11D 378,144 Sewer Improvements (SRF Loan) 6/43 476,714 13)
5/12B 130,229 Sewer Improvements (SRF Loan) 6/42 134,628 14)
5/12C 303,660 Sewer Improvements (SRF Loan) 6/43 384,545 15)
5/12D 118,090 Sewer Improvements (SRF Loan) 6/42 145,971 16)
11/12E 577,854 Sewer Improvements (SRF Loan) 6/43 611,079 17)
11/12F 67,087 Sewer Improvements (SRF Loan) 6/43 70,851 18)
11/12G 592,020 Sewer Improvements (SRF Loan) 6/44 760,692 19)
4/13A 141,680 Sewer Improvements (SRF Loan) 6/43 165,733 20)
6/13B 1,717,863 Sewer Revenue Refunding Bonds 6/43 1,797,517 21)
1/14A 35,820 Sewer Improvements (SRF Loan) 6/34 36,867 22)
2/14C 268,488 Sewer Improvements (SRF Loan) 6/34 268,579 23)
2/14D 179,040 Sewer Improvements (SRF Loan) 6/34 184,871 24)
1/15A 307,768 Sewer Improvements (SRF Loan) 6/35 287,395 25)
1/15B 8,105 Sewer Improvements (SRF Loan) 6/34 7,570 26)
1/15C 85,792 Sewer Improvements (SRF Loan) 6/35 79,799 27)
5/15E 1,178,866 Sewer Revenue Refunding Bonds 6/36 1,141,351 28)
1/16A 178,858 Sewer Revenue Refunding Bonds 6/35 168,926 29)
Total $11,676,606
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.
1) The City’s flow-based share of the WRA’s Series 2008A SRF Loan outstanding in the amount of $14,157,000.
2) The City’s flow-based share of the WRA’s Series 2008B SRF Loan outstanding in the amount of $5,633,000.
3) The City’s flow-based share of the WRA’s Series 2008D SRF Loan outstanding in the amount of $2,192,000.
4) The City’s flow-based share of the WRA’s Series 2009B SRF loan outstanding in the amount of $7,236,000.
5) The City’s flow based share of the WRA’s Series 2009C SRF loan outstanding in the amount of $7,925,000.
6) The City’s flow based share of the WRA’s Series 2010A SRF loan outstanding in the amount of $7,534,000.
19
7) The City’s flow based share of the WRA’s Series 2010B SRF loan outstanding in the amount of $6,204,000.
8) The City’s flow based share of the WRA’s Series 2010C-1 SRF loan outstanding in the amount of $1,996,000.
9) The City’s flow based share of the WRA’s Series 2010C-2 SRF loan outstanding in the amount of $17,923,000.
10) The City’s flow based share of the WRA’s Series 2011B SRF loan outstanding in the amount of $14,570,000.
11) The City’s flow based share of the WRA’s Series 2011A SRF loan outstanding in the amount of $56,046,000.
12) The City’s flow based share of the WRA’s Series 2011C SRF loan outstanding in the amount of $8,741,000.
13) The City’s flow based share of the WRA’s Series 2011D SRF loan outstanding in the amount of $14,791,000.
14) The City’s flow based share of the WRA’s Series 2012B SRF loan outstanding in the amount of $2,588,000.
15) The City’s flow based share of the WRA’s Series 2012C SRF loan outstanding in the amount of $17,221,000.
16) The City’s flow based share of the WRA’s Series 2012D SRF loan outstanding in the amount of $6,537,000.
17) The City’s flow based share of the WRA’s Series 2012E SRF loan outstanding in the amount of $11,747,000.
18) The City’s flow based share of the WRA’s Series 2012F SRF loan outstanding in the amount of $1,362,000.
19) The City’s flow based share of the WRA’s Series 2012G SRF loan outstanding in the amount of $23,602,000.
20) The City’s flow based share of the WRA’s Series 2013A SRF loan outstanding in the amount of $7,422,000.
21) The City’s flow based share of the WRA’s Series 2013B outstanding in the amount of $52,405,000.
22) The City’s flow based share of the WRA’s Series 2014A SRF loan outstanding in the amount of $1,651,000.
23) The City’s flow based share of the WRA’s Series 2014C SRF loan outstanding in the amount of $5,163,000.
24) The City’s flow based share of the WRA’s Series 2014D SRF loan outstanding in the amount of $5,736,000.
25) The City’s flow based share of the WRA’s Series 2015A SRF loan outstanding in the amount of $8,917,000.
26) The City’s flow based share of the WRA’s Series 2015B SRF loan outstanding in the amount of $339,000.
27) The City’s flow based share of the WRA’s Series 2015C SRF loan outstanding in the amount of $1,534,000.
28) The City’s flow based share of the WRA’s Series 2015E outstanding in the amount of $31,865,000.
29) The City’s flow based share of the WRA’s Series 2016A SRF loan outstanding in the amount of $7,565,000.
Des Moines Metropolitan Wastewater Reclamation Authority Proposed Payment Obligations
WRA has authorized and is planning to issue the following State Revolving Fund Loans in the current calendar year.
The amounts below represent the City’s share of the debt service payments of the proposed issues. Other participating
communities of the WRA pay the remaining amount. 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.
Date
of Issue
Original
Amount*
Purpose
Final
Maturity
Principal
Proposed*
As of 9/20/16
TBD $267,960 Sewer Improvements (SRF) 6/32 $267,960 1)
TBD 194,800 Sewer Improvements (SRF) 6/48 194,800 2)
TBD 584,400 Sewer Improvements (SRF) 6/48 584,400 3)
TBD 46,818 Sewer Improvements (SRF) 6/36 46,818 4)
Total $1,093,978
1) The City’s flow-based share of the WRA’s proposed SRF Loan in the amount of $12,000,000*.
2) The City’s flow-based share of the WRA’s proposed SRF Loan in the amount of $30,000,000*.
3) The City’s flow-based share of the WRA’s proposed SRF Loan in the amount of $10,000,000*.
4) The City’s flow-based share of the WRA’s proposed SRF Loan in the amount of $900,000*.
* Preliminary; subject to change.
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OVERLAPPING DEBT
Taxing District
1/1/2015
Taxable
Valuation 1)
Portion of Taxable
Valuation in City
Percent
In City
G.O. Debt 2)
City’s
Proportionate
Share
Dallas County $5,259,759,471 $841,445,658 3) 16.00% $13,375,000 $2,140,000
Waukee CSD 3,697,362,634 838,584,863 4) 22.68% 106,070,000 5) 24,056,676
Van Meter CSD 208,617,771 2,860,795 6) 1.37% 9,040,000 123,848
Des Moines Area
Community College 42,301,482,075 841,445,658 3) 1.99% 82,960,000 1,650,904
City’s Share of Total Overlapping Debt $27,971,428
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 $1,148,991.
4) Includes City-exempt Phase In and Phase In Ag valuations in the amount of $1,060,184.
5) Waukee CSD G.O. Debt is preliminary based on the pending refunding Series 2016B.
6) Includes City-exempt Phase In and Phase In Ag valuations in the amount of $88,807.
DEBT RATIOS
G.O. Debt
Debt/Actual
Market Value
($1,387,405,421) 1)
Debt/17,945 2)
Population
Total General Obligation Debt $48,459,060* 3.49%* $2,700.42*
Less: General Obligation Debt paid by
Water, Sewer, Stormwater, and Golf (5,056,060)
Net General Obligation Debt $43,403,000* 3.13%* $2,418.67*
Total Urban Renewal Revenue Debt $805,000 0.06% $44.86
City’s Share of Total Overlapping Debt $27,566,590 1.99% $1,536.17
1) Based on 1/1/2015 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.
21
LEVIES AND TAX COLLECTIONS
Fiscal Year
Levy 1)
Collected During
Collection Year 1)
Percent
Collected
2012-13 $10,633,373 $10,570,270 99.4%
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 13,329,871 2) ----------- In process of collection -----------
1) Totals include TIF, utility replacement and mobile home taxes.
2) Estimated amount. The Auditor’s Office is still in the process of preparing the final Abstract of 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 website.
TAX RATES
FY 2012-13
$/$1,000
FY 2013-14
$/$1,000
FY 2014-15
$/$1,000
FY 2015-16
$/$1,000
FY 2016-17
$/$1,000
Dallas County 4.26780 3.87452 3.82607 3.86494 3.98887
City of Waukee 13.50000 13.50000 13.50000 13.50000 13.50000
Waukee Comm. School District 17.61083 16.57669 16.57427 16.69522 17.64874
State of Iowa 0.00330 0.00330 0.00330 0.00330 0.00330
County Assessor 0.31173 0.31134 0.31423 0.31371 0.32072
County Ag. Extension 0.06806 0.08087 0.08002 0.07934 0.07569
Dallas County Hospital 0.60683 0.54517 0.57912 0.54042 0.54055
Des Moines Area Community College 0.58466 0.69120 0.65724 0.67574 0.72334
Walnut Cemetery 0.00000 0.00000 0.04446 0.03000 0.01000
Total Tax Rate City Resident 36.95321 35.58309 35.57871 35.70267 36.81121
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 2016-17.
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.
22
FUNDS ON HAND (Cash and Investments as of June 30, 2016)
General Checking $7,019,185.12
Park Land Fees 396,514.95
Sewer Fund 5,403,139.33
Sewer Sinking Funds 72,614.34
Water Fund 3,915,749.58
Water Sinking Funds 33,254.50
GO Debt Sinking Funds 643,354.25
Capital Projects 17,403,311.75
Water/Sewer Bond & Note Reserve 691,315.44
Gas Fund 2,640,753.94
Gas Fund Sinking Funds 39,998.68
Storm Water Fund 981,777.40
Golf Course Fund (735,250.11) 1)
Golf Course Sinking Funds 133,968.60
Golf Course Bond Reserve Fund 51,464.69
Equipment Reserve Fund 163,310.47
Total Cash and Investments $38,854,462.93
1) Deficit will be eliminated by future golf course seasonal revenues.
23
THE CITY
CITY GOVERNMENT
The City of Waukee, Iowa (the “City”) was incorporated in 1878 and comprises approximately 8,000 land acres. The
City operates under a Mayor-Council-Clerk/Administrator form of government consisting of a 5 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 has 86 full-time and 105 part-time employees (including seasonal employees). In addition, the City has
approximately 30 paid on call/volunteer fire/EMS employees. The City participates in a statewide employee retirement
system, 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 years ended June 30, 2014, 2015 and 2016 as
shown below equal the required contributions for each year.
FY 2013-14 FY 2014-15 FY 2015-16 1)
IPERS Contributions $496,800 $549,900 $577,400
The IPERS CAFR is available on the IPERS website, https://www.ipers.org/financial-and-investment, or by contacting
IPERS at 7401 Register Drive P.O. Box 9117, Des Moines, IA 50321.
Bond Counsel, the City and the Municipal Advisor undertake no responsibility for and make no representations as to
the accuracy or completeness of the information available from the IPERS discussed above or included on the IPERS
website, including, but not limited to, updates of such information on the State Auditor’s website or links to other
Internet sites accessed through the IPERS website.
Pursuant to Governmental Accounting Standards Board (“GASB”) Statement No. 68, the City reported a liability of
$1,828,957 within its CAFR as of June 30, 2015 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, 2014,
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, 2014, the City’s proportion was
0.046117% which was a decrease of 0.004958% from its proportion measured as of June 30, 2013.
For additional information refer to Note 7 beginning on page 44 of the City’s FY15 Independent Auditor’s Reports.
1) Unaudited Fiscal Year 2015-16 information provided by the City.
24
UNION CONTRACTS
The City currently has a negotiated contract with one employee group. The Communications Workers of America has
negotiated a contract that expires on June 30, 2021.
INSURANCE
The City’s insurance coverage is as follows:
Type of Insurance Coverage
Municipal Property Coverage Replacement
Buildings $40,487,514
Contents $3,005,450
Book Collection $1,575,000
Miscellaneous Property $2,585,897
EDP Hardware $684,562
EDP Software $104,329
Vehicles $6,260,366
Municipal Automobile Physical Damage
Comprehensive Coverage Actual Cash Value
Collision Coverage Actual Cash Value
Municipal General Liability $8,000,000
Wrongful Acts Liability $8,000,000
Law Enforcement Liability $8,000,000
Municipal Automobile Liability $8,000,000
Boiler and Machinery $1,500,000
Public Employee Dishonesty $2,000,000
Standard Workers’ Compensation (Includes Volunteer Firemen) Statutory
25
OTHER POST-EMPLOYMENT BENEFITS
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 partially self-insured and are administered by a third party. The benefits are provided
in the form of an implicit rate subsidy where pre 65 retirees receive health insurance coverage by paying a combined
retiree/active rate which results in an implicit rate subsidy and other post-employment benefits (the “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
June 30, 2015, 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 14,000
Adjustment to annual required contribution (13,075)
Annual OPEB cost $57,308
Contributions made (0)
Increase in net OPEB obligation $57,308
Net OPEB obligation, beginning of year 359,573
Net OPEB obligation, end of year $416,881
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 year ended June 30, 2015.
For the year ended June 30, 2015, 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 as of June 30, 2015 are
summarized as follows:
Fiscal Year Ended
Annual
OPEB Cost
Percentage of
Annual OPEB
Cost Contribution
Net OPEB
Obligation
June 30, 2013 $71,089 0.0% $289,433
June 30, 2014 70,140 0.0% 359,573
June 30, 2015 57,308 0.0% 416,881
As of July 1, 2014, the most recent actuarial valuation date for the period July 1, 2014 through June 30, 2015, 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 $5,902,000, and the ratio of the UAAL to the covered payroll was 6.7%. As of June 30, 2015, there were
no trust fund assets.
For additional information refer to Note 13 beginning on page 50 of the City’s FY15 Independent Auditor’s Reports.
26
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 690
Hy-Vee Grocery Store 435
Waukee Family YMCA Family Recreation & Health Center 370
City of Waukee City Government 221
Quad Graphics Waukee Printing 220
Gilcrest/Jewett Lumber Company Lumber, Windows, Doors 142
Atlantic Bottling Coca Cola Bottling 100
Stivers Ford Automobile Sales and Service 110
Monarch Manufacturing Egress Window Systems 95
1) Includes full time, part time, and seasonal employees.
2) Includes several part time employees, most of whom are teacher and associate substitutes.
Source: The City of Waukee, the Waukee Community School District and a telephone survey conducted July 2016.
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 7,800
2)
Mercy Hospital Medical Center Healthcare (Hospitals and Clinics)7,055
UnityPoint Health 3) Healthcare 6,435
Principal Financial Group Insurance 6,184
Des Moines Public Schools Education 4,642
Nationwide/Allied Insurance Insurance 4,282
DuPont Pioneer Seed Manufacturing 3,000
John Deere Agriculture 2,789 4)
1) Includes Wells Fargo banking and mortgage divisions in multiple locations.
2) Total is for the Greater Des Moines metropolitan statistical area which includes Dallas, Guthrie, Madison, Polk and Warren
counties.
3) Formerly Iowa Health System.
4) Total reflects John Deere’s announcement that they will be laying off 300 workers at the Des Moines Works factory in Ankeny.
Source: The Greater Des Moines Partnership as of September 2015. The list is updated frequently as changes are identified and is
not to be construed as a complete profile.
27
BUILDING PERMITS
City officials report the following construction activity as of June 30, 2016. Building permits are reported on a calendar
year basis. The figures below include both new construction and remodeling.
2012 2013 2014 2015 2016
Single Family Homes:
No. of new homes: 129 208 294 461 296
Valuation: $35,313,506 $57,369,889 $83,714,389 $130,620,802 $70,951,407
No. of Multi-Family: 9 1 14 4 4
Valuation: $29,055,437 $7,908,394 $30,234,990 $18,213,385 $23,756,760
Commercial/Industrial/Other:
No. of new buildings: 31 22 41 39 15
Valuation: $14,523,992 $36,876,356 $6,426,386 $3,142,605 $6,600,668
Other: 218 311 298 296 257
Valuation: $2,092,714 $3,040,431 $1,859,337 $2,486,646 $2,061,102
Total Permits 387 542 647 800 572
Total Valuations $80,985,649 $105,195,070 $122,235,102 $154,463,438 $103,369,937
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: 2012 3.9% 5.1%
2013 3.6% 4.7%
2014 3.3% 4.2%
2015 2.8% 3.7%
2016 (though May) 3.0% 3.8%
Source: Iowa Workforce Development Center website.
EDUCATION
The Waukee Community School District (the “District”) provides public education with an October 2015 certified
enrollment for the 2016-17 school year of 9,448.4. The District has approximately 1,182 1) employees and owns and
operates eight elementary schools, one fifth grade school, two middle schools, one ninth grade school, and one high
school.
1) Includes several part time employees, most of whom are teacher and associate substitutes.
28
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.
2011 $19,752,000 $36,552,000 $26,106,000
2012 23,266,000 34,684,000 30,853,000
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
Source: FDIC website.
FINANCIAL STATEMENTS
The City’s Independent Auditor’s Reports for the fiscal year ended June 30, 2015 are reproduced in APPENDIX B.
The City’s certified public accountant has not consented to distribution of the audited financial statements and has not
undertaken added review of their presentation. Further information regarding financial performance and copies of the
City’s prior Independent Auditor’s Reports may be obtained from the City’s Municipal Advisor, PFM Financial
Advisors LLC
(This page has been left blank intentionally.)
APPENDIX A
FORM OF LEGAL OPINION
(This page has been left blank intentionally.)
Ahlers & Cooney, P.C.
Attorneys at Law
100 Court Avenue, Suite 600
Des Moines, Iowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
Wishard & Baily – 1888, Guernsey & Baily – 1893, Baily & Stipp – 1901, Stipp, Perry, Bannister & Starzinger – 1914, Bannister, Carpenter,
Ahlers & Cooney – 1950, Ahlers, Cooney, Dorweiler, Allbee, Haynie & Smith – 1974, Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C. – 1990
DRAFT
We hereby certify that we have examined a certified transcript of the proceedings of the
City Council and acts of administrative officers of the City of Waukee, State of Iowa (the
"Issuer"), relating to the issuance of General Obligation Refunding Bonds, Series 2016, by said
City, dated September 20, 2016, in the denomination of $5,000 or multiples thereof, in the
aggregate amount of $___________________ (the "Bonds").
We have examined the law and such certified proceedings and other papers as we deem
necessary to render this opinion as bond counsel.
As to questions of fact material to our opinion, we have relied upon representations of the
Issuer contained in the resolution authorizing issuance of the Bonds (the "Resolution") and in the
certified proceedings and other certifications of public officials furnished to us, without
undertaking to verify the same by independent investigation.
Based on our examination and in reliance upon the certified proceedings and other
certifications described above, we are of the opinion, under existing law, as follows:
1. The Issuer is duly created and validly existing as a body corporate and politic and
political subdivision of the State of Iowa with the corporate power to adopt and perform the
Resolution and issue the Bonds.
2. The Bonds are valid and binding general obligations of the Issuer.
3. All taxable property in the territory of the Issuer is subject to ad valorem taxation
without limitation as to rate or amount to pay the Bonds. Taxes have been levied by the
Resolution for the payment of the Bonds and the Issuer is required by law to include in its annual
tax levy the principal and interest coming due on the Bonds to the extent the necessary funds are
not provided from other sources.
4. Interest on the Bonds is excludable from gross income for federal income tax
purposes and is not an item of tax preference for purposes of the federal alternative minimum tax
imposed on individuals and corporations; 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. The opinion set forth in the preceding sentence is subject to the
condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as
amended, that must be satisfied subsequent to the issuance of the Bonds in order that the interest
thereon be, and continue to be, excludable from gross income for federal income tax purposes.
The Issuer has covenanted to comply with all such requirements. Failure to comply with certain
of such requirements may cause interest on the Bonds to be included in gross income for federal
income tax purposes retroactively to the date of issuance of the Bonds.
DRAFT
City of Waukee, State of Iowa
$___________________ General Obligation Refunding Bonds, Series 2016
Page 2
We express no opinion regarding the accuracy, adequacy, or completeness of the Official
Statement or other offering material relating to the Bonds. Further, we express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth
herein.
The rights of the owners of the Bonds and the enforceability of the Bonds are limited by
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors'
rights generally, and by equitable principles, whether considered at law or in equity.
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention, or any changes in law that may hereafter occur.
Respectfully submitted,
01260488-1\21938-120
APPENDIX B
JUNE 30, 2015 INDEPENDENT AUDITOR’S REPORTS
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APPENDIX C
FORM OF CONTINUING DISCLOSURE CERTIFICATE
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CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the City of Waukee, State of Iowa (the "Issuer"), in connection with the issuance of
$_________ General Obligation Refunding Bonds, Series 2016B (the "Notes") dated September
20, 2016. The Notes are being issued pursuant to a Resolution of the Issuer approved on
September 6, 2016 (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
Notes 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 Notes (including persons
holding Notes through nominees, depositories or other intermediaries), or (b) is treated as the
owner of any Notes 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 Notes, 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, 1900 Duke Street, Suite 600, Alexandria, VA 22314.
"National Repository" shall mean the MSRB's Electronic Municipal Market Access
website, a/k/a "EMMA" (emma.msrb.org).
2
"Official Statement" shall mean the Issuer's Official Statement for the Notes, dated
October 22, 2015.
"Participating Underwriter" shall mean any of the original underwriters of the Notes
required to comply with the Rule in connection with offering of the Notes.
"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 2015/2016 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:
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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
Standards Board or as otherwise provided under State law, as in effect from time to time,
or, if and to the extent such financial statements have not been prepared in accordance
with generally accepted accounting principles, noting the discrepancies therefrom and the
effect thereof. If the Issuer's audited financial statements for the preceding years are not
available by the time Annual Financial Information is required to be filed pursuant to
Section 3(a), the Annual Financial Information filing shall contain unaudited financial
statements of the type included in the final Official Statement, and the audited financial
statements shall be filed in the same manner as the Annual Financial Information when
they become available.
b) A table, schedule or other information prepared as of the end of the preceding
fiscal year, of the type contained in the final Official Statement under the caption "City
Property Valuations," "Trend of Valuations," "Larger Taxpayers," "Direct Debt,"
"Overlapping Debt," "Debt Ratios," "Levies and Tax Collections," and "Tax Rates."
Any or all of the items listed above may be included by specific reference to other documents,
including official statements of debt issues of the Issuer or related public entities, which have
been filed with the National Repository. The Issuer shall clearly identify each such other
document so included by reference.
Section 5. Reporting of Significant Events.
a) Pursuant to the provisions of this Section, the Issuer shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Notes 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 Notes
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
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tax-exempt status of the Series Notes, or material events affecting the tax-exempt
status of the Notes;
vii. Modifications to rights of Holders of the Notes, if material;
viii. Note calls (excluding sinking fund mandatory redemptions), if
material, and tender offers;
ix. Defeasances of the Notes;
x. Release, substitution, or sale of property securing repayment of the
Notes, if material;
xi. Rating changes on the Notes;
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 shall terminate upon the legal defeasance, prior redemption or payment in
full of all of the Notes 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.
5
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.
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 Notes, 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 Notes, 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 Notes 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 Notes.
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
6
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 Notes 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, 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 Notes.
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 Notes, and shall create no rights in any other person or entity.
Date: __________ day of _______________, 2016.
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 Note Issue: $______________ General Obligation Refunding Bonds, Series 2016B
Dated Date of Issue: September 20, 2016
NOTICE IS HEREBY GIVEN that the Issuer has not provided Annual Financial
Information with respect to the above-named Notes as required by Section 3 of the Continuing
Disclosure Certificate delivered by the Issuer in connection with the Notes. The Issuer
anticipates that the Annual Financial Information will be filed by ____________________.
Dated: __________ day of _______________, 20___.
CITY OF WAUKEE, STATE OF IOWA
By:
Its:
01260465-1\21938-120
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OFFICIAL BID FORM
To: City Council of Sale Date: August 15, 2016
City of Waukee, Iowa 10:00 A.M. Central Time
RE: $1,720,000* General Obligation Refunding Bonds, Series 2016B (the “Bonds”)
For all or none of the above Bonds, in accordance with the TERMS OF OFFERING, we will pay you
$_____________________________ (not less than $1,711,400) plus accrued interest to date of delivery for fully registered Bonds
bearing interest rates and maturing in the stated years as follows:
Coupon Maturity Reoffering Coupon Maturity Reoffering
________ 2017 ________ ________ 2020 ________
________ 2018 ________ ________ 2021 ________
________ 2019 ________ ________ 2022 ________
* Preliminary; subject to change. The aggregate principal amount of the Bonds, and each scheduled maturity thereof, are subject to reduction
by the City or its designee 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 $1,720,000. Interest rates specified by the successful bidder for each maturity will
not change. Final adjustments shall be in the sole discretion of the City.
The dollar amount of the purchase price proposed by the successful bidder will be changed if the aggregate principal amount of the Bonds is
adjusted as described above. Any change in the principal amount of any maturity of the Bonds will be made while maintaining, as closely as
possible, the successful bidder's net compensation, calculated as a percentage of bond principal. The successful bidder may not withdraw or
modify its bid as a result of any post-bid adjustment. Any adjustment shall be conclusive, and shall be binding upon the successful bidder.
We hereby designate that the following Bonds to be aggregated into term Bonds maturing on June 1 of the following years and in
the following amounts (leave blank if no term note 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 TERMS OF OFFERING published in the Preliminary Official
Statement dated August 1, 2016. In the event of failure to deliver these Bonds in accordance with the 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 September 20, 2016)
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 15th day of August,
2016.
Attest: _________________________________ By: ________________________________________
Title: __________________________________ Title: _______________________________________