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06/04/2014
AGENDA OF THE SPECIAL SESSION OF THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, TO BE HELD IN THE HAROLD E. GETTY COUNCIL CHAMBERS IN CITY HALL, 4:30 P.M. WEDNESDAY, TUNE 4, 2014 ROLL CALL: 0_,5\c_\ ,,L7, a C‘ 34-jc- Motion to approve Agenda, as proposed or amended. Motion to receive and file copies of Calls. NEW BUSINESS 1. $10, tt659 X00 General bligation Bonds, Series 2014A Motion to receive and file proof of publication of Notice oI Jo,. oma Sale. ` X . Resolution directing sale of $10,065,10 ? General Obligation Bonds, Series 2014A to 9,6\pe A- � . 202,58, Co . ) N 1\tv at a rate of a Aiq V': CLC . $4,970,000 General ?ligation Bonds, Taxable Series 2014B Motion to receive and file proof of publication :•off Notice of Y�` All Sale. f V - Resolution directing sale of $4,97 },000 Gencrai Obligation r,S Bonds, Taxable Series 2014 to ?). \OCc,..€,-r- i s i CiVx(-o s s ' 1�- at a rate of 3. 3 613'51 0. 4. $ ,750, 00 General bligation Refu;►=ding :'ones, Series 2014C _Motion to receive and file proof of publication of Notice of Sale. (% sC •d. ,5151000 Resolution directing sale of $8,Y50,000 (estimated) General ObligatioRefunding Bonds, Series 2014C to SMO i c. 'As C ,,co-ct) at a rate of 0 4-4161 94A a G ` 5,,c.. Resoluti©n authorizing redemption of outstanding General Obligation r=onnds, Series 2006: , of the City of Waterloo, Iowa, dated June 1, 2006; and Cpital Loan `rotes, Taxable Series 1998, dated April 1, 1998 and directing the Notices of Redemption for the above-named issues. c_t. ADJOURNMENT Motion to adjourn. 5' 0 ' e ''~1 Suzy Schares City Clerk ,� �c�n c.� C�..7� AGENDA OF THE SPECIAL SESSION OF THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, TO BE HELD IN THE HAROLD E. GETTY COUNCIL CHAMBERS IN CITY HALL, 4:30 P.M. WEDNESDAY, JUNE 4, 2014 ROLL CALL: Motion to approve Agenda, as proposed or amended. Motion to receive and file copies of Calls. NEW BUSINESS 1. $10,065,000 General Obligation Bonds, Series 2014A Motion to receive and file proof of publication of Notice of Sale. Resolution directing sale of $10,065,000 General Obligation Bonds, Series 2014A to at a rate of 2. $4,970,000 General Obligation Bonds, Taxable Series 2014B Motion to receive and file proof of publication of Notice of Sale. Resolution directing sale of $4,970,000 General Obligation Bonds, Taxable Series 2014B to at a rate of 3. $8,750,000 General Obligation Refunding Bonds, Series 2014C Motion to receive and file proof of publication of Notice of Sale. Resolution directing sale of $8,750,000 (estimated) General Obligation Refunding Bonds, Series 2014C to at a rate of 4. Resolution authorizing redemption of outstanding General Obligation Bonds, Series 2006A, of the City of Waterloo, Iowa, dated June 1, 2006; and Capital Loan Notes, Taxable Series 1998, dated April 1, 1998 and directing the Notices of Redemption for the above-named issues. ADJOURNMENT Motion to adjourn. Suzy Schares City Clerk (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Waterloo, State of Iowa. Date of Meeting: June 4, 2014. Time of Meeting: 10:30 A.M. (City Officials) 4:30 P.M. (City Council) Place of Meeting: Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: $10,065,000 (Subject to Adjustment per Terms of Offering) General Obligation Bonds, Series 2014A. • Receipt of bids. (City Officials) • Resolution directing sale. (City Council) Such additional matters as are set forth on the additional 6 page(s) attached hereto. This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of the governmental body. Suzy Schares City Clerk CMC June 4, 2014 The City Clerk of the City of Waterloo, State of Iowa, met at City Hall, 715 Mulberry Street, Waterloo, Iowa, at 10:30 A.M., on the above date, to open sealed bids received, access electronic bids and to refer the sale of the bonds to the best and most favorable bidder for cash, subject to approval by the City Council at 4:30 P.M. on the above date. The following persons were present: Larry Burger, Michelle Weidner, Suzy Schares * * * * * * * * This being the time and place for the opening of bids for the sale of $10,065,000 (Subject to Adjustment per Terms of Offering) General Obligation Bonds, Series 2014A, the meeting was opened for the receipt of bids for the bonds. The following actions were taken: 1. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders: none 2. The City Clerk then declared the time for filing of sealed bids to be closed and that the sealed bids be opened. The sealed bids were opened and announced. 3. Electronic bids received were accessed and announced as follows: Name & Address of Bidders: 1. Robert W. Baird & Co., Milwaukee, Wisconsin 2. FTN Financial Capital Markets, Shelby, Tennessee 3. Hutchinson, Shockey, Erley & Co., Chicago, Illinois 4. J.P. Morgan, New York, New York 4. The best bid was determined to be as follows: Name & Address of Bidder: Robert W. Baird & Co., Milwaukee, Wisconsin True Interest Rate (as -bid): 2.4896% Net Interest Cost (as -bid): $1,715,711.72 In consultation with its Financial Advisor, the City considered adjustment of the aggregate principal amount, and each scheduled maturity thereof, in accordance with the Terms of Offering, and the following actions were taken: Final Par Amount (as adjusted): $10,065,000.00 Final Purchase Price (as adjusted): $10,213,666.45 All bids were then referred to the Council for action in accordance with the Notice of Sale. 2 June 4, 2014 The City Council of the City of Waterloo, State of Iowa, met in special session, in the Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 4:30 P.M., on the above date. There were present Mayor Ernest G. Clark, in the chair, and the following named Council Members: Cole, Jones, Lind, Morrissey, Welper, Hart Absent: Schmitt -3 Council Member Hart introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF $10,065,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) GENERAL OBLIGATION BONDS, SERIES 2014A," and moved its adoption. Council Member Welper seconded the motion to adopt. The roll was called and the vote was, AYES: Cole, Jones, Lind, Morrissey, Welper, Hart NAYS: none Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION NO. 2014-435 RESOLUTION DIRECTING SALE OF $10,065,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) GENERAL OBLIGATION BONDS, SERIES 2014A WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the bonds described as follows and the best bid received is determined to be the following: $10,065,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) GENERAL OBLIGATION BONDS, SERIES 2014A: Bidder: Robert W. Baird & Co. of Milwaukee, Wisconsin the terms of said bid being: Final Par Amount (as adjusted): $10,065,000.00 Purchase Price (as adjusted): $10,213,666.45 True Interest Rate: 2.4896% Net Interest Cost: $1,715,711.72 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, STATE OF IOWA: Section 1. That the bid for the bonds as above set out is hereby determined to be the best and most favorable bid received and, said bonds are hereby awarded based on said bid. 4 Section 2. That the statement of information for bond bidders and the form of contract for the sale of said bonds are hereby approved and the Mayor and Clerk are authorized to execute the same on behalf of the City. Section 3. That the notice of the sale of the bonds heretofore given and all acts of the Clerk done in furtherance of the sale of said bonds are hereby ratified and approved. PASSED AND ADOPTED this 4th day of June, 2014. ATTEST: Suzy Scharep, CMC City Clerk 5 rnest G. Clark, Mayor STATE OF IOWA COUNTY OF BLACK HAWK CERTIFICATE ) SS I, the undersigned City Clerk of the City of Waterloo, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of public hearing and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this 4th day of June, 2014. Suzy Schares CMC City Clerk (SEAL) 01022928-1\11310-101 (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Waterloo, State of Iowa. Date of Meeting: June 4, 2014. Time of Meeting: 11:00 o'clock A.M. (City Officials) 4:30 P.M. (City Council) Place of Meeting: Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: $4,970,000 (Subject to Adjustment per Terms of Offering) Taxable General Obligation Bonds, Series 2014B. • Receipt of bids. (City Officials) • Resolution directing sale. (City Council) Such additional matters as are set forth on the additional 6 page(s) attached hereto. This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of the governmental body. Suzy Scha es, CMC City Clerk June 4, 2014 The City Clerk of the City of Waterloo, State of Iowa, met at City Hall, 715 Mulberry Street, Waterloo, Iowa, at 11:00 o'clock A.M., on the above date, to open sealed bids received, access electronic bids and to refer the sale of the bonds to the best and most favorable bidder for cash, subject to approval by the City Council at 4:30 P.M. on the above date. The following persons were present: Larry Burger, Michelle Weidner, Suzy Schares ******** 1 This being the time and place for the opening of bids for the sale of $4,970,000 (Subject to Adjustment per Terms of Offering) Taxable General Obligation Bonds, Series 2014B, the meeting was opened for the receipt of bids for the bonds. The following actions were taken: 1. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders: none 2. The City Clerk then declared the time for filing of sealed bids to be closed and that the sealed bids be opened. The sealed bids were opened and announced. 3. Electronic bids received were accessed and announced as follows: Name & Address of Bidders: 1. BMO Capital Markets, Chicago, Illinois 2. Robert W. Baird & Co., Milwaukee,Wisconsin 3. Hutchinson, Shockey, Erley & Co., Chicago, Illinois 4. The best bid was determined to be as follows: Name & Address of Bidder: BMO Capital Markets, Chicago, Illinois True Interest Rate (as -bid): 3.3673% Net Interest Cost (as -bid): $1,502,015.20 In consultation with its Financial Advisor, the City considered adjustment of the aggregate principal amount, and each scheduled maturity thereof, in accordance with the Terms of Offering, and the following actions were taken: Sale. Final Par Amount (as adjusted): $4,970,000.00 Final Purchase Price (as adjusted): $4,940,749.70 All bids were then referred to the Council for action in accordance with the Notice of -2 June 4, 2014 The City Council of the City of Waterloo, State of Iowa, met in special session, in the Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 4:30 P.M., on the above date. There were present Mayor Ernest G. Clark, in the chair, and the following named Council Members: Cole, Jones, Lind, Morrissey, Welper, Hart Absent: Schmitt -3 Council Member Hart introduced the following Resolution entitled 'RESOLUTION DIRECTING SALE OF $4,970,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) TAXABLE GENERAL OBLIGATION BONDS, SERIES 2014B," and moved its adoption. Council Member Welper seconded the motion to adopt. The roll was called and the vote was, AYES: Cole, Jones, Lind, Morrissey, Welper, Hart NAYS: none Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION NO. 2014-43 6 RESOLUTION DIRECTING SALE OF $4,970,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) TAXABLE GENERAL OBLIGATION BONDS, SERIES 2014B WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the bonds described as follows and the best bid received is determined to be the following: $4,970,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) TAXABLE GENERAL OBLIGATION BONDS, SERIES 2014B: Bidder: BMO Capital Markets of Chicago, Illinois the terms of said bid being: Final Par Amount (as adjusted): $4,970,000.00 Purchase Price (as adjusted): $4,940,749.70 True Interest Rate: 3.3673% Net Interest Cost: $1,502,015.20 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, STATE OF IOWA: Section 1. That the bid for the bonds as above set out is hereby determined to be the best and most favorable bid received and, said bonds are hereby awarded based on said bid. 4 Section 2. That the statement of information for bond bidders and the form of contract for the sale of said bonds are hereby approved and the Mayor and Clerk are authorized to execute the same on behalf of the City. Section 3. That the notice of the sale of the bonds heretofore given and all acts of the Clerk done in furtherance of the sale of said bonds are hereby ratified and approved. PASSED AND ADOPTED this 4th day of June, 20 4. ATTEST: Suzy Schares, City Clerk MC -5 rnest G. Clark, Mayor STATE OF IOWA COUNTY OF BLACK HAWK CERTIFICATE ) SS I, the undersigned City Clerk of the City of Waterloo, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of public hearing and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this 4th day of June, 2014. Suzy Schar City Clerk (SEAL) 01022942-1\11310-103 s, CMC (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Waterloo, State of Iowa. Date of Meeting: June 4, 2014. Time of Meeting: 11:30 A.M. (City Officials) 4:30 P.M. (City Council) Place of Meeting: Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: $8,750,000 (Subject to Adjustment per Terms of Offering) General Obligation Refunding Bonds, Series 2014C. • Receipt of bids. (City Officials) • Resolution directing sale. (City Council) Such additional matters as are set forth on the additional 6 page(s) attached hereto. This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of the governmental body. Suzy Sches, CMC City Clerk June 4, 2014 The City Clerk of the City of Waterloo, State of Iowa, met at City Hall, 715 Mulberry Street, Waterloo, Iowa, at 11:30 A.M., on the above date, to open sealed bids received, access electronic bids and to refer the sale of the bonds to the best and most favorable bidder for cash, subject to approval by the City Council at 4:30 P.M. on the above date. The following persons were present: Larry Burger, Michelle Weidner, Suzy Schares * * * * * * * * This being the time and place for the opening of bids for the sale of $8,750,000 (Subject to Adjustment per Terms of Offering) General Obligation Refunding Bonds, Series 2014C, the meeting was opened for the receipt of bids for the bonds. The following actions were taken: 1. Sealed bids were filed and listed in the minutes while unopened, as follows: Name & Address of Bidders: none 2. The City Clerk then declared the time for filing of sealed bids to be closed and that the sealed bids be opened. The sealed bids were opened and announced. 3. Electronic bids received were accessed and announced as follows: Name & Address of Bidders: 1. BMO Capital Markets, Chicago, Illinois 2. FTN Financial Capital Markets, Shelby, Tennessee 3. Robert W. Baird & Co., Milwaukee, Wisconsin 4. Hutchinson, Shockey, Erley & Co., Chicago, Illinois 5. Bank of America, Merrill Lynch, New York, New York 6. J.P. Morgan, New York, New York 4. The best bid was determined to be as follows: Name & Address of Bidder: BMO Capital Markets, Chicago, Illinois True Interest Rate (as -bid): 1.4792% Net Interest Cost (as -bid): $478,774.04 In consultation with its Financial Advisor, the City considered adjustment of the aggregate principal amount, and each scheduled maturity thereof, in accordance with the Terms of Offering, and the following actions were taken: Sale. Final Par Amount (as adjusted): $8,515,000.00 Final Purchase Price (as adjusted): $8,674,926.52 All bids were then referred to the Council for action in accordance with the Notice of 2 June 4, 2014 The City Council of the City of Waterloo, State of Iowa, met in special session, in the Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 4:30 P.M., on the above date. There were present Mayor Ernest G. Clark, in the chair, and the following named Council Members: Cole, Jones, Lind, Morrissey, Welper, Hart Absent: Schmitt -3 Council Member Hart introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF $8,750,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014C," and moved its adoption. Council Member Cole seconded the motion to adopt. The roll was called and the vote was, AYES: Cole, Jones, Lind, Morrissey, Welper, Hart NAYS: none Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION NO. 2014-437 RESOLUTION DIRECTING SALE OF $8,750,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014C WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the bonds described as follows and the best bid received is determined to be the following: $8,750,000 (SUBJECT TO ADJUSTMENT PER TERMS OF OFFERING) GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014C: Bidder: BMO Capital Markets of Chicago, Illinois the terms of said bid being: Final Par Amount (as adjusted): $8,515,000.00 Purchase Price (as adjusted): $8,674,926.52 True Interest Rate: 1.4792% Net Interest Cost: $478,774.04 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, STATE OF IOWA: Section 1. That the bid for the bonds as above set out is hereby determined to be the best and most favorable bid received and, said bonds are hereby awarded based on said bid. -4 Section 2. That the statement of information for bond bidders and the form of contract for the sale of said bonds are hereby approved and the Mayor and Clerk are authorized to execute the same on behalf of the City. Section 3. That the notice of the sale of the bonds heretofore given and all acts of the Clerk done in furtherance of the sale of said bonds are hereby ratified and approved. PASSED AND ADOPTED this 4th day of June, 2014. ATTEST: Suzy Schare City Clerk CMC -5 / - .- 4/ rnest G. Clark, ayor STATE OF IOWA COUNTY OF BLACK HAWK CERTIFICATE ) SS I, the undersigned City Clerk of the City of Waterloo, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of public hearing and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this 4th day of June, 2014. Suzy Scharej, CMC City Clerk (SEAL) 01022950-1\11310-104 (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Waterloo, State of Iowa. Date of Meeting: June 4, 2014. Time of Meeting: 4:30 P.M. Place of Meeting: Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: • Resolution Authorizing the Redemption of Outstanding General Obligation Bonds, Series 2006A, dated June 1, 2006. Such additional matters as are set forth on the additional 6 page(s) attached hereto. This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of the governmental body. Suzy Schais, CMC City Clerk June 4, 2014 The City Council of the City of Waterloo, State of Iowa, met in special session, in the Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 4:30 P.M., on the above date. There were present Mayor Ernest G. Clark, in the chair, and the following named Council Members: Cole, Jones, Lind, Morrissey, Welper, Hart Absent: Schmitt -1- the ng Resolution itled "A Council Member Cole introducedOUTST1ANDING GENERAL OBLIGATION ION AUTHORIZING THE REDEMPTION OF BONDS, SERIES 2006A, OF THE CITY OF WATERLOO, STATE OF IOWA, DATED JUNE 1, 2006, AND DIRECTING NOTICE Broll EGIVE called and and moved itsthe adoption. was, Council Member Hart seconded the motion to adopt. The AYES: Cole, Jones, Lind, Morrissey, Welper, Hart NAYS: none Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 2014-438 RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2006A, OF THE CITY OF WATERLOO, STATE OF IOWA, DATED JUNE 1, 2006, AND DIRECTING NOTICE BE GIVEN WHEREAS, the City did by resolution dated June 12, 2006, authorize the issuance of $8,200,000 General Obligation Bonds, Series 2006A, (the "Bonds") dated June 1, 2006; and WHEREAS, the Bonds are redeemable in any order of their numbering on June 1, 2014 or any date thereafter upon giving notice in the manner provided in the resolution authorizing the issuance of the Bonds; and WHEREAS, it is deemed necessary and advisable that $3,310,000 be so redeemed on July 9, 2014 and notice of redemption be given according to the terms of the resolution authorizing issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, STATE OF IOWA: Section 1. That outstanding General Obligation Bonds, dated June 1, 2006, in the principal amount of $3,310,000, be and the same are hereby redeemed as of July 9, 2014. Wells Fargo Bank, National Association, in their capacity as Registrar and Paying Agent of the Bonds, is hereby authorized and directed to cause notice of such redemption be given not less than thirty (30) days prior to the redemption date and to cause notice of redemption to be mailed to the registered owners and insurer of the Bonds by first class mail, and to notify DTC and EMMA (via searchable PDF electronic filing). -2- Section 2. The Finance Officer is hereby authorized and directed to cause to be deposited in a separate fund sum sufficient to pay all principal and interest on the redeemed Bonds to the date of redemption. Section 3. That the form of such notice be substantially as follows: -3- NOTICE OF THE CALL OF BONDS FOR REDEMPTION TO THE HOLDERS OF THE FOLLOWING DESCRIBED BONDS: Please take notice that the Bonds described below have been called for redemption. Owners of the Bonds should present their Bonds for payment on the redemption date. Issuer: City of Waterloo, State of Iowa Original Issue Amount: $8,200,000 Bond Issue: General Obligation Bonds, Series 2006A Dated Date: June 1, 2006 Redemption Date: July 9, 2014 Redemption Price: par, plus accrued interest Bonds Called for Redemption CUSIP Bond Principal Interest Maturity Numbers Numbers Amount Rate Date 941647 CW7 9 $765,000 3.800% 2015 941647 CX5 10 $380,000 3.875% 2016 941647 CY3 11 $405,000 3.900% 2017 941647 CZO 12 $420,000 3.950% 2018 941647 DA4 13 $425,000 4.000% 2019 941647 DB2 14 $445,000 4.000% 2020 941647 DCO 15 $470,000 4.000% 2021 No representation is made as to the accuracy of the CUSIP numbers printed herein or on the Bonds. The above Bonds should be presented to Wells Fargo Bank, National Association, Minneapolis, Minnesota. This represents a full call of the outstanding obligations. All interest will cease to accrue on the Redemption Date. WELLS FARGO BANK, NATIONAL ASSOCIATION, Minneapolis, Minnesota (End of Notice) -4- PASSED AND ADOPTED this 4th day of June, 2014. 744.6(_2. ATTEST: Suzy Schares, City Clerk -5- Ernest G. Clark, Mayor STATE OF IOWA COUNTY OF BLACK HAWK CERTIFICATE ) SS I, the undersigned City Clerk of the City of Waterloo, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of public hearing and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this 4th day of June, 2014. -oz A \V C,2t17 Suzy Scharis, CMC City Clerk (SEAL) 01023017-1\11310-101 (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Waterloo, State of Iowa. Date of Meeting: June 4, 2014. Time of Meeting: 4:30 o'clock P.M. Place of Meeting: Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: ® Resolution Authorizing the Redemption of Outstanding General Obligation Capital Loan Notes, Series 1998, dated April 1, 1998. Such additional matters as are set forth on the additional 6 page(s) attached hereto. This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of the governmental body. Suzy Scha City Clerk s, CMC June 4, 2014 The City Council of the City of Waterloo, State of Iowa, met in special session, in the Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 4:30 F.M., on the above date. There were present Mayor Ernest G. Clark, in the chair, and the following named Council Members: Cole, Jones, Lind, Morrissey, Welper, Hart Absent: Schmitt -1- Council Member Cole introduced the following Resolution entitled "A RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL OBLIGATION CAPITAL LOAN NOTES, SERIES 1998, OF THE CITY OF WAIERLOO, STATE OF IOWA, DATED APRIL 1, 1998, AND DIRECTING NOTICE BE GIVEN" and moved its adoption. Council Member Hart seconded the motion to adopt. The roll was called and the vote was, AYES: Cole, Jones, Lind, Morrissey, Welper, Hart NAYS: none Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 2014-438A RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL OBLIGATION CAPITAL LOAN NOTES, SERIES 1998, OF THE CITY OF WATERLOO, STATE OF IOWA, DATED APRIL 1, 1998, AND DIRECTING NOTICE BE GIVEN WHEREAS, the City did by resolution dated April 6, 1998, authorize the issuance of $665,000 General Obligation Capital Loan Notes, Series 1998, (the "Notes") dated April 1, 1998; and WHEREAS, the Notes are redeemable in any order of their numbering on June 1, 2006 or any date thereafter upon giving notice in the manner provided in the resolution authorizing the issuance of the Notes; and WHEREAS, it is deemed necessary and advisable that $195,000 be so redeemed on July 9, 2014 and notice of redemption be given according to the teinus of the resolution authorizing issuance of the Notes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, STATE OF IOWA: Section 1. That outstanding General Obligation Capital Loan Notes, dated April 1, 1998, in the principal amount of $195,000, be and the same are hereby redeemed as of July 9, 2014. Wells Fargo Bank, National Association, in their capacity as Registrar and Paying Agent of the Notes, is hereby authorized and directed to cause notice of such redemption be given not -2- less than thirty (30) days prior to the redemption date and to cause notice of redemption to be mailed to the registered owners of the Notes by registered mail, and to notify DTC and EMMA (via searchable PDF electronic filing). Section 2. The Finance Officer is hereby authorized and directed to cause to be deposited in a separate fund sum sufficient to pay all principal and interest on the redeemed Notes to the date of redemption. Section 3. That the foiiu of such notice be substantially as follows: -3- NOTICE OF THE CALL OF NOTES FOR REDEMPTION TO THE HOLDERS OF THE FOLLOWING DESCRIBED NOTES: Please take notice that the Notes described below have been called for redemption. Owners of the Notes should present their Notes for payment on the redemption date. Issuer: City of Waterloo, State of Iowa Original Issue Amount: $665,000 Note Issue: General Obligation Capital Loan Notes, Series 1998 Dated Date: April 1, 1998 Redemption Date: July 9, 2014 Redemption Price: par, plus accrued interest Notes Called for Redemption Note CUSIP Numbers Principal Interest Maturity Numbers Amount Rate Date 941638 Z68 16 $45,000 5.75% June 1, 2015 941638 Z76 17 $45,000 5.75% June 1, 2016 941638 Z84 18 $50,000 5.75% June 1, 2017 941638 Z92 19 $55,000 5.75% June 1, 2018 No representation is made as to the accuracy of the CUSIP numbers printed herein or on the Notes. The above Notes should be presented to Wells Fargo Bank, National Association, Minneapolis, Minnesota. This represents a full call of the outstanding obligations. All interest will cease to accrue on the Redemption Date. WELLS FARGO BANK, NATIONAL ASSOCIATIONN, Minneapolis, Minnesota r A (End of Notice) -4- PASSED AND ADOP 1 ED this 4th day of June, 2014. ATTEST: Suzy Schares CMC City Clerk -5- CERTIFICATE STATE OF IOWA ) SS COUNTY OF BLACK HAWK I, the undersigned City Clerk of the City of Waterloo, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of public hearing and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by law and with members of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective City offices as indicated therein, that no Council vacancy existed except as may be stated in the proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of the City hereto affixed this 4th day of June, 2014. (SEAL) 01023484-1 \11310-103 Suzy Schar4s, CMC City Clerk STATE OF IOWA, } Black Hawk County, SS NOTICE OF BOND SALE Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Waterloo, State of Iowa, hereafter described must be received at the office of the City Clerk, City Hall, 715 Mulberry Street, Waterloo, Iowa (the "Issuer") before 10:30 A.M. (for Series 2014A), 11:00 A.M. (for Series 2014B), and 11:30 A.M. (for Series 2014C), on the 4th day of June, 2014. The bids will then be publicly opened and referred for action to the meeting of the City Council in conformity with the TERMS OF OFFERING. The Bonds: The Bonds to be offered are the following: GENERAL OBLIGATION BONDS, SER- IES 2014A, in the amount of $10,080,000 TAXABLE GENERAL OBLIGATION BONDS, SERIES 2014B, in the amount of $5,015,000", GENERAL OBLIGATION REFUNDING BONDS, SERIES 2014C, in the amount of $8,760,000*, to be dated June 27, 2014 (collectively, the "Bonds") 'Subject to principal adjustment per the 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, 715 Mulberry Street, Waterloo, Iowa. ? Electronic Internet Bidding: Electronic internet bids will be received at the office of the City Clerk at City Hall, 715 Mulberry Street, Waterloo, Iowa. The bids must be submitted through the SPEERAUCTION competitive bidding system. ? Electronic Facsimile Bidding: Electronic facsimile bids will be received at the office of the City Clerk at City Hall, 715 Mulberry Street, Waterloo, Iowa (facsimile number: 319-291-4571) or at the office of the Issuer's Financial Advisor, Speer Finan- cial, 531 Commercial Street, Waterloo, Iowa, 50703, Telephone: 319-291-2077 (facsimile number: 319-291-8628). Elec- tronic 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, 715 Mulberry Street, Waterloo, Iowa at a meeting of the City Council on the above date at 4:30 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, 715 Mulberry Street, Waterloo, Iowa or the Issuer's Financial Advisor, Speer Financial, 531 Commer- cial Street, Waterloo, Iowa 50703, Telephone: 319-219-2077. 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 connec- tion 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 Waterloo, State of Iowa. Suzy Schares, CMC City Clerk I do solemnly swear that the annexed copy of legal City of Waterloo Notice of Bond Sale Notice was published in the Waterloo -Cedar Falls Courier, a daily newspaper printed in Waterloo, Black Hawk County, Iowa, once commencing on the 29th day of May, 2014 in the name of said newspaper, and that the annexed rate of advertised is the regular legal rate of said newspaper, and that the following is a correct bill for publishing said notice. Printer's Bill $48.11 Signed Subscribed and sworn to before me this ON Day of A.D., 20 I 4 Received of Notary Public the sum of Dollars. In full for publication of the above notice. *Atikl"'"". 14": it, M" JODI E MCKINSTRY COMMISSION NO.782413 MY cO97 IQI1 }IBES! NOTICE OF SPECIAL MEETING OF CITY COUNCIL, CITY OF WATERLOO, IOWA TO CITY COUNCIL MEMBERS OF THE CITY OF WATERLOO, IOWA: You are hereby notified that a Special Session of the City Council will be held at 4:30 p.m. on Wednesday, June 4, 2014, in the City Hall Council Chambers, 715 Mulberry Street, on the sale of $10,065,000 General Obligation Bonds, Series 2014A; sale of $4,970,000 General Obligation Bonds, Taxable Series 2014B; sale of $8,750,000 General Obligation Refunding Bonds, Series 2014C; redemption of outstanding General Obligation Bonds, Series 2006A, of the City of Waterloo, Iowa, dated June 1, 2006; and Capital Loan Notes, Taxable Series 1998, dated April 1, 1998 and directing the Notices of Redemption for the above-named issues. No other official business will be conducted at said meeting. Ernest G. Clark, Mayor Due, timely and legal service of the above notice is hereby accepted the 4th day of June, 2014 by me a dully elected, qualified and acting Councilperson of Waterloo, Iowa. ( /4„.9 Tom Lind I, Suzy Schares, hereby certify that I have served the above notice of Councilperson Tom Lind distributing same to him personally. Suzy Scha#es, CMC City Cler NOTICE OF SPECIAL MEETING OF CITY COUNCIL, CITY OF WATERLOO, IOWA TO CITY COUNCIL MEMBERS OF THE CITY OF WATERLOO, IOWA: You are hereby notified that a Special Session of the City Council will be held at 4:30 p.m. on Wednesday, June 4, 2014, in the City Hall Council Chambers, 715 Mulberry Street, on the sale of $10,065,000 General Obligation Bonds, Series 2014A; sale of $4,970,000 General Obligation Bonds, Taxable Series 2014B; sale of $8,750,000 General Obligation Refunding Bonds, Series 2014C; redemption of outstanding General Obligation Bonds, Series 2006A, of the City of Waterloo, Iowa, dated June 1, 2006; and Capital Loan Notes, Taxable Series 1998, dated April 1, 1998 and directing the Notices of Redemption for the above-named issues. No other official business will be conducted at said meeting. rnest G. Clark, Mayor Due, timely and legal service of the above notice is hereby accepted the 4th day of June, 2014 by me a dully elected, qualified and acting Councilperson of Waterloo, Iowa. I, Suzy Schares, hereby certify that I have served the above notice of Councilperson David Jones distributing same to him personally. Suzy Scha4s City Clerk NOTICE OF SPECIAL MEETING OF CITY COUNCIL, CITY OF WATERLOO, IOWA TO CITY COUNCIL MEMBERS OF THE CITY OF WATERLOO, IOWA: You are hereby notified that a Special Session of the City Council will be held at 4:30 p.m. on Wednesday, June 4, 2014, in the City Hall Council Chambers, 715 Mulberry Street, on the sale of $10,065,000 General Obligation Bonds, Series 2014A; sale of $4,970,000 General Obligation Bonds, Taxable Series 2014B; sale of $8,750,000 General Obligation Refunding Bonds, Series 2014C; redemption of outstanding General Obligation Bonds, Series 2006A, of the City of Waterloo, Iowa, dated June 1, 2006; and Capital Loan Notes, Taxable Series 1998, dated April 1, 1998 and directing the Notices of Redemption for the above-named issues. No other official business will be conducted at said meeting. Ernest G. Clark, Mayor Due, timely and legal service of the above notice is hereby accepted the 4th day of June, 2014 by me a dully elected, qualified and acting Councilperson of Waterloo, Iowa. rak_x_vvJGLA... Quentin Hart I, Suzy Schares, hereby certify that I have served the above notice of Councilperson Quentin Hart distributing same to him personally. u y S hates, CMC City Clerk oJZ--<:3 NOTICE OF SPECIAL MEETING OF CITY COUNCIL, CITY OF WATERLOO, IOWA TO CITY COUNCIL MEMBERS OF THE CITY OF WATERLOO, IOWA: You are hereby notified that a Special Session of the City Council will be held at 4:30 p.m. on Wednesday, June 4, 2014, in the City Hall Council Chambers, 715 Mulberry Street, on the sale of $10,065,000 General Obligation Bonds, Series 2014A; sale of $4,970,000 General Obligation Bonds, Taxable Series 2014B; sale of $8,750,000 General Obligation Refunding Bonds, Series 2014C; redemption of outstanding General Obligation Bonds, Series 2006A, of the City of Waterloo, Iowa, dated June 1, 2006; and Capital Loan Notes, Taxable Series 1998, dated April 1, 1998 and directing the Notices of Redemption for the above-named issues. No other official business will be conducted at said meeting. rnest G. Clark, Mayor Due, timely and legal service of the above notice is hereby accepted the 4th day of June, 2014 by me a dully elected, qualified and acting Councilperson of Waterloo, Iowa. Pat Morrissey I, Suzy Schares, hereby certify that I have served the above notice of Councilperson Pat Morrissey distributing same to him personally. Suzy Schar: s, City Clerk NOTICE OF SPECIAL MEETING OF CITY COUNCIL, CITY OF WATERLOO, IOWA TO CITY COUNCIL MEMBERS OF THE CITY OF WATERLOO, IOWA: You are hereby notified that a Special Session of the City Council will be held at 4:30 p.m. on Wednesday, June 4, 2014, in the City Hall Council Chambers, 715 Mulberry Street, on the sale of $10,065,000 General Obligation Bonds, Series 2014A; sale of $4,970,000 General Obligation Bonds, Taxable Series 2014B; sale of $8,750,000 General Obligation Refunding Bonds, Series 2014C; redemption of outstanding General Obligation Bonds, Series 2006A, of the City of Waterloo, Iowa, dated June 1, 2006; and Capital Loan Notes, Taxable Series 1998, dated April 1, 1998 and directing the Notices of Redemption for the above-named issues. No other official business will be conducted at said meeting. Ernest G. Clark, Mayor Due, timely and legal service of the above notice is hereby accepted the 4th day of June, 2014 by me a dully elected, qualified and acting Councilperson of Waterloo, Iowa. I, Suzy Schares, hereby certify that I have served the above notice of Councilperson Carolyn Cole distributing same to her personally. Suzy Schare s, CMC City Clerk NOTICE OF SPECIAL MEETING OF CITY COUNCIL, CITY OF WATERLOO, IOWA TO CITY COUNCIL MEMBERS OF THE CITY OF WATERLOO, IOWA: You are hereby notified that a Special Session of the City Council will be held at 4:30 p.m. on Wednesday, June 4, 2014, in the City Hall Council Chambers, 715 Mulberry Street, on the sale of $10,065,000 General Obligation Bonds, Series 2014A; sale of $4,970,000 General Obligation Bonds, Taxable Series 2014B; sale of $8,750,000 General Obligation Refunding Bonds, Series 2014C; redemption of outstanding General Obligation Bonds, Series 2006A, of the City of Waterloo, Iowa, dated June 1, 2006; and Capital Loan Notes, Taxable Series 1998, dated April 1, 1998 and directing the Notices of Redemption for the above-named issues. No other official business will be conducted at said meeting. 7 Ernest G. Clark, Mayor Due, timely and legal service of the above notice is hereby accepted the 4th day of June, 2014 by me a dully elected, qualified and acting Councilperson of Waterloo, Iowa. We, j----)fC- c-) Ron Welper r I, Suzy Schares, hereby certify that I have served the above notice of Councilperson Ron Welper distributing same to him personally. Suzy Schares CMC City Clerk Bid Opening June 4, 2014 Auction - 10:00 a.m. — 10:30 a.m. Sealed Bid Opening — 10:30 a.m. City Hall First Floor Clerk/Finance Office 1. $10,065,000 General Obligation Bonds, Series 2014A Receive and file sealed bids, BUT NOT OPENED. City Clerk declared time for filing sealed bids be closed and sealed bids be opened. City Clerk announced electronic bids received. Refer to Speer Financial, Inc. Adjourn to 4:30 p.m. Suzy Schares City Clerk Bid Opening June 4, 2014 Auction - 10:30 a.m. — 11:00 a.m. Sealed Bid Opening — 11:00 a.m. City Hall First Floor Clerk/Finance Office 1. $4,970,000 General Obligation Bonds, Taxable Series 2014B Receive and file sealed bids, BUT NOT OPENED. City Clerk declared time for filing sealed bids be closed and sealed bids be opened. City Clerk announced electronic bids received. Refer to Speer Financial, Inc. Adjourn to 4:30 p.m. Suzy Schares City Clerk Bid Opening June 4, 2014 Auction - 11:00 a.m. — 11:30 a.m. Sealed Bid Opening 11:30 a.m. City Hall First Floor Clerk/Finance Office 2. $8,750,000 General Obligation Refunding Bonds, Series 2014C Receive and file sealed bids, BUT NOT OPENED. City Clerk declared time for filing sealed bids be closed and sealed bids be opened. City Clerk announced electronic bids received. Refer to Speer Financial, Inc. Adjourn to 4:30 p.m. Suzy Schares City Clerk IN' SPEER FINANCIAL, INC. PUBLIC FINANCE CONSULANTS SINCE 1954 KEVIN W. McCANNA DAVID F. PHILLIPS LARRY P. BURGER DANIEL D. FORBES BARBARA L. CHEVALIER RAPHALIATA McKENZIE PRESIDENT SR. VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT June 4, 2014 The Honorable Ernest G. Clark, Mayor And Members of the City Council City of Waterloo 715 Mulberry Street Waterloo, IA 50703 Dear Mayor Clark and Council Members: Bids werg jeceived today for the $10,065,000* General Obligation Bonds, Series 2014A. There were T bids received, which are listed at the bottom of this letter in accordance with the attached bids. Account Managers Bank of America/Merrill Lynch, Chicago, Illinois D.A. Davidson and Co., Denver, Colorado FTN Financial Capital Markets, Memphis, Tennessee _ „• J.P. Morgan Securities, Inc., New York, New York Hutchinson, Shockey, Erley & Co., Chicago, Illinois D,S78104 % Piper Jaffray, Leawood, Kansas Robert W. Baird & Co., Milwaukee, Wisconsin ygyG,39% True Interest Rate LB/cn Respectfully submitted, SPEER FINANCIAL, INC. SUITE 4100 • ONE NORTH LASALLE STREET • CHICAGO, ILLINOIS 60602 • (312) 346-3700 • FAX (312) 346-8833 SUITE 608 531 COMMERCIAL STREET • WATERLOO, IOWA 50701 • (319) 291-2077 FAX (319) 291-8628 raSPEER FINANCIAL, INC. PUBLIC FINANCE CONSULANTS SINCE 1954 KEVIN W A PRESIDENTDENT DAVID F. PHILLIPS LARRY P. BURGER DANIEL D. FORBES BARBARA L. CHEVALIER RAPHALIATA McKENZIE SR. VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT June 4, 2014 The Honorable Ernest G. Clark, Mayor And Members of the City Council City of Waterloo 715 Mulberry Street Waterloo, IA 50703 Dear Mayor Clark and Council Members: Bids were received today for the $4,970,000* Taxable General Obligation Bonds, Series 2014B. There were bids received, which are listed at the bottom of this letter in accordance with the attached bids. True Account Managers Interest Rate BMO Capital Markets, Chicago, Illinois 3. &,7398' % BOSC, Inc., Menomonee Falls, Wisconsin % D.A. Davidson and Co., Denver, Colorado Hutchinson, Shockey, Erley & Co., Chicago, Illinois 3.481o$3 % Piper Jaffray, Leawood, Kansas Robert W. Baird & Co., Milwaukee, Wisconsin 3.9t tt 5 % UMB Bank, n.a., Kansas City, Missouri LB/cn Respectfully submitted, SPEER FINANCIAL, INC. 1,0 Larry Bu r, Vice Presi nt SUITE 4100 ONE NORTH LASALLE STREET • CHICAGO, ILLINOIS 60602 • (312) 346-3700 • FAX (312) 346-8833 SUITE 608 531 COMMERCIAL STREET • WATERLOO, IOWA 50701 • (319) 291-2077 FAX (319) 291-8628 SPEER FINANCIAL, INC. PUBLIC FINANCE CONSULANTS SINCE 1954 KEVIN W. McCANNA DAVID F. PHILLIPS LARRY P. BURGER DANIEL D. FORBES BARBARA L. CHEVALIER RAPHALIATA McKENZIE PRESIDENT SR. VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT June 4, 2014 The Honorable Ernest G. Clark, Mayor And Members of the City Council City of Waterloo 715 Mulberry Street Waterloo, IA 50703 Dear Mayor Clark and Council Members: Bids were received today for the $8,750,000* General Obligation Refunding Bonds, Series 2014C. There were bids received, which are listed at the bottom of this letter in accordance with the attached bids. True Account Managers Interest Rate Bank of America/Merrill Lynch, Chicago, Illinois \ BMO Capital Markets, Chicago, Illinois 1.43'1118% D.A. Davidson and Co., Denver, Colorado FTN Financial Capital Markets, Memphis, Tennessee t ,4975(07% J.P. Morgan Securities, Inc., New York, New York n55% Hutchinson, Shockey, Erley & Co., Chicago, Illinois \ ,54795(, % Robert W. Baird & Co., Milwaukee, Wisconsin i ,54716 LB/cn Respectfully submitted, SPEER FINANCIAL, INC. Larry B r, Vice Pre SUITE 4100 ONE NORTH LASALLE STREET • CHICAGO, ILLINOIS 60602 • (312) 346-3700 • FAX (312) 346-8833 SUITE 608 531 COMMERCIAL STREET • WATERLOO, IOWA 50701 • (319) 291-2077 FAX (319) 291-8628 TO: CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 Mayor Clark City Council Members DATE: May 30, 2014 FROM: Michelle Weidner, Chief Financial Officer -NP RE: Moody's Bond Rating Dear Mayor Clark & City Council Members, We received notification that Moody's has maintained the City's bond rating at Aa2 for the general obligation bond issue that is being sold this fiscal year, as well all other outstanding general obligation bonds. This designation maintains the City's bonds in the medium range of the high quality category. As you know, the bond rating helps potential investors to determine the risk they take if they choose to invest in City bonds. At Speer's recommendation, we again chose not to purchase bond insurance for this issue, which makes the underlying rating on the bonds more important. Bidders will be able to purchase insurance directly if they choose and then incorporate that cost into their bid. Attached is a copy of the rating letter from Moody's. Moody's report states that the rating was based on several factors: the city's large and modestly growing tax base, sound financial operations supported by healthy reserves and strong fiscal management. They also noted that the debt burden is above average but manageable supported by rapid principal repayment. Moody's focuses particularly on the improvement in the assigned general fund balance, identifying it again as a healthy reserve. As you know, we have worked hard to grow and maintain the City's unassigned general fund balance from 5% in 2000 to 19.4% or revenues as of June 30, 2013. All the City departments have worked hard to manage their budgets responsibly. While this is an improvement over prior years, Moody's has informed us in prior years that the national median for cities in our population range and for other Iowa cities in the next higher ranking is 25% of general fund revenues. It will be important to continue to monitor and protect the unassigned fund balance during the coming years in order to protect our current Aa2 rating and to facilitate the possibility of a further rating increase. I have included documents that describe the ratings classifications for your reference, as well as a schedule of the city's bond ratings history. If you have any questions about the information presented, please contact me. CITY WEBSITE: www.cityofwaterlooiowa.corn WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer MOODY'S INVESTORS SERVICE New Issue: Moody's assigns Aa2 to Waterloo, IA's GO Bonds Ser. 2014A -C Global Credit Research - 30 May 2014 Aa2 rating applies to $91M of GOULT debt WATERLOO (CITY OF) IA Cities (including Towns, Villages and Townships) IA Moody's Rating ISSUE RATING General Obligation Bonds, Series 2014A Aa2 Sale Amount $10,065,000 Expected Sale Date 06/04/14 Rating Description General Obligation General Obligation Refunding Bonds, Series 2014C Aa2 Sale Amount $8,750,000 Expected Sale Date 06/04/14 Rating Description General Obligation Taxable General Obligation Bonds, Series 2014B Aa2 Sale Amount $4,970,000 Expected Sale Date 06/04/14 Rating Description General Obligation Moody's Outlook NOO Opinion NEW YORK, May 30, 2014 --Moody's Investors Service has assigned a Aa2 rating to the City of Waterloo's (IA) $10.1 million General Obligation Bonds Series 2014A, $5.0 million Taxable General Obligation Bonds Series 2014B, and $8.8 million General Obligation Refunding Bonds Series 2014C. Debt service repayment on all three series of bonds is secured by the city's general obligation unlimited tax (GOULT) pledge. Proceeds of the Series 2014A and Series 2014B bonds will be used to finance various capital improvements as well as currently refund a portion of the city's Series 1998 General Obligation Capital Loan notes and Series 2006A General Obligation Bonds for estimated savings. Proceeds of the Series 2014C bonds will be used to advance refund the city's Series 2007A General Obligation bonds for estimated savings. Concurrently, Moody's affirmed the Aa2 rating on the city's outstanding GOULT debt of which $91 million will be outstanding post -sale. SUMMARY RATINGS RATIONALE The Aa2 rating reflects the city's large tax base that has realized steady, moderate growth; weak demographic profile relative to similarly rated entities; sound financial operations supported by healthy reserves and strong fiscal management; above average but manageable debt burden supported by rapid repayment of principal; and moderate exposure to unfunded pension liabilities. STRENGTHS - Large and modestly growing tax base with favorable unemployment metrics - Solid financial management that has resulted in a multi-year trend of positive General Fund operations and maintenance of healthy reserves CHALLENGES - Below average socioeconomic profile - Somewhat limited flexibility to raise revenues to support general operations - Above average debt burden DETAILED CREDIT DISCUSSION REGIONAL ECONOMIC CENTER IN EASTERN IOWA The City of Waterloo is located in eastern Iowa's Black Hawk County (Aa2), approximately 50 miles northwest of the City of Cedar Rapids (Aal stable). We expect the tax base will likely remain stable or realize modest growth over the long term given the city's role as a regional commercial and industrial hub. The city's full valuation experienced moderate growth through 2012 at a five-year average annual rate of 1.9%. In 2013, the city's full value declined by 0.3% to its current $3.8 billion. The decline was due to a substantial number of tax appeals that had been filed in 2011 after the creation of the state's Property Assessment Appeals Board. City officials report that most of the appeals have been settled, but two larger appeals will be decided in court later this year. One of those appeals is by the city's largest tax payer, the Isle of Capri Casino, who is seeking approximately a $20 million reduction in assessed value. Despite the recent tax appeals, the city's tax base has been relatively stable and continues to experience commercial and residential development. Deere and Company (A2 stable) is the city's largest employer and second largest tax payer, with employment of about 6,000 in three separate facilities within the city. The company has continued to make significant investments in its tractor manufacturing, foundry, and drive train operations facilities over the past few years. The city is also home to a stable health care and education presence that includes Wheaton Franciscan Healthcare and Allen Memorial Hospital, as well as the main campus of Hawkeye Community College (Aal). The city's economy is also tied closely to that of its adjacent neighbor, the city of Cedar Falls (Aal), which is home to the University of Northern Iowa (Al negative). The city continues to promote urban renewal projects, concentrating on a number of large-scale developments to enhance its downtown. A $50 million project at the Tech Works Campus, located downtown, will begin this summer. The project will include a new hotel, Deere Museum, and industrial and office space. The city also continues efforts to redevelop the Rath meatpacking plant campus that lies along the Cedar River. The redevelopment includes the creation of a human services campus, which includes a new correctional facility, human services office, and food bank. Income statistics for the city remain below average, with median family income estimated at 78% of the national figures. The city's unemployment rate in March 2014 was a moderate 5.7%, exceeding the statewide rate of 5.0% but falling below the nation's 6.8% rate. SOUND FINANCIAL OPERATIONS CHARACTERIZED BY HEALTHY CASH RESERVES AND PRUDENT FISCAL MANAGEMENT The city's financial operations are expected to remain sound due to prudent fiscal management and the existence of healthy reserves. The city has closed every fiscal year since 2001 with positive operations in the General Fund. The city has a formal policy of maintaining General Fund cash reserves equivalent to at least 5% of revenues. Officials also report an informal target of achieving an unassigned General Fund balance of 25% of revenues, and the city continues to work to achieve that goal. In fiscal 2013, the city's total General Fund balance increased by $1.8 million to $20 million or 43% of General Fund revenues. The increase was primarily due to growth in funds restricted for the city's self-funded insurance and $1 million designated for use in the 2014 fiscal year. The city's unassigned General Fund balance declined by $737,000 to $8.9 million, or 19.1% of General Fund revenues. The city had budgeted a use of reserves in order to accommodate a decrease the city's overall tax rate in that year. In fiscal 2014, the city plans to use the $1 million of reserves that was designated in fiscal 2013 for operations. Year to date, expenditures are tracking better than budget, and management now expects to use approximately $700,000 of reserves. Management expects the total General Fund balance to decrease by approximately $700,000 to $19.3 million while the unassigned balance would increase by $300,000 to $9.2 million. For fiscal 2015, the city has adopted a balanced budget and does not expect any use of reserves. Inclusive of transfers from the city's Trust and Agency Fund for employee benefits, property taxes comprised 60% of fiscal 2013 General Fund revenues. The city taxes at its General Fund levy limit of $8.10 per $1,000 of taxable valuation and continues to fully utilize the $0.27 emergency levy, leaving it with somewhat limited financial flexibility going forward. The city implemented a 2% franchise fee on electric and gas utilities in fiscal 2014 and will increase the fee to 3% in fiscal 2015. The city could raise the fee up to 5% if necessary, which would generate an additional $1.7 million in revenue. The city also has some flexibility to increase its employee benefits levy as it is not currently levying the full amount. In fiscal 2015, the city had approximately $2.3 million of room under the employee benefits levy. Voters also recently renewed the city's 1% Local Option Sales Tax (LOST) that generates approximately $10 million annually and is designated for street construction and improvements, which reduces the city's need to borrow for capital improvements going forward. The city has some enterprise risk associated with its new Sportsplex, a 125,000 square foot recreational facility that opened in January 2014. The facility includes indoor soccer fields, gyms, leisure pool, fitness facility, and a running track. The $25 million project was privately -financed but is operated by the city. The city is under a lease - purchase agreement for the facility with the Waterloo Development Corporation. The annual budget for Sportsplex operations is estimated to be approximately $1.3 million or less than 3% of fiscal 2013 General Fund expenditures. Officials report the facility is on track to record a $90,000 loss in fiscal 2014 due to initial startup costs, but expect the facility to break-even going forward. MANAGEABLE DEBT BURDEN WITH RAPID PRINCIPAL AMORTIZATION Inclusive of the new debt being issued, the city's net direct debt burden is 1.9% of full valuation. While above average, the debt burden is expected to remain manageable given the rapid amortization rate with 88.9% of principal repaid within 10 years. Management expects the total amount of debt to increase from the current $94 million (inclusive of sewer revenue debt rated Aa3) to $110 million by the close of fiscal 2018. Future debt will continue to finance general improvements throughout the city, and a considerable portion of future bonds are expected to finance sewer system improvements and to be repaid with sewer revenues. Net of the prospective debt that would be supported by utility revenue, the city's direct debt burden would increase only modestly to 2.0% of current full valuation. Debt service comprised an above average 19.5% of total operating expenditures in fiscal 2013. The city has no variable rate debt outstanding and is not a party to any interest rate swap agreements. MODERATE EXPOSURE TO UNFUNDED PENSION LIABILITIES The city's fiscal 2013 adjusted net pension liability (ANPL) is $128.6 million, equivalent to 3.46% of full valuation and 2.26 times operating revenue. The ANPL is based upon our allocation of the reported unfunded liabilities of two multi-employer cost-sharing pension plans to which the city contributes as well as our methodology of adjusting reported pension information. City employees are members of the Iowa Public Employees Retirement System (IPERS) and the Municipal Fire and Police Retirement System of Iowa (MFPRSI). The city's fiscal 2013 contribution to the two plans was $5.6 million, or 10% of operating expenditures. We allocated the reported unfunded liabilities of the plans to the city based on its share of total public employer contributions (less contributions of self-supporting enterprises). The city's share of reported unfunded pension liabilities allocated by Moody's is an estimated $49.1 million in fiscal 2013. WHAT COULD CHANGE THE RATING - UP - Growth in the city's tax base and significant improvement in socioeconomic indicators - Continued maintenance of positive financial operations and healthy financial reserves in the General Fund - Moderation of the city's debt burden WHAT COULD CHANGE THE RATING - DOWN - Deterioration of the tax base to a level inconsistent with similarly -rated entities - Material declines in the city's financial reserves - Substantial increase in the city's debt burden KEY STATISTICS Tax Base Size - 2013 Full Value: $3.8 billion Full Value Per Capita: $55,173 Socioeconomic Indices - MFI: 77.6% of the US Fiscal 2013 Available Operating Funds Balance: 25.0% of revenues 5 -Year Dollar Change in Available Operating Fund Balance as % of Revenues: 3.9% Fiscal 2013 Operating Funds Cash Balance: 29.4% of revenues 5 -Year Dollar Change in Cash Balance as % of Revenues: 1.4% Institutional Framework: Aa Operating History: 5 -Year Average of Operating Revenues / Operating Expenditures: 1.02x Net Direct Debt / Full Value: 1.9% Net Direct Debt / Operating Revenues: 1.25x 3 -Year Average of Moody's Adjusted Net Pension Liability / Full Value: 3.25% 3 -Year Average of Moody's Adjusted Net Pension Liability / Operating Revenues: 2.12x PRINCIPAL METHODOLOGY The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. 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Page 1 of 3 Municipal Bond Ratings What is a Bond Rating A bond rating performs the isolated function of credit risk evaluation. A bond rating does not constitute a recommendation to invest in a bond and does not take into consideration the risk preference of the invest While many factors go into the investment decision making process, the bond rating is often the single mi important factor affecting the interest cost on bonds. There are three major rating agencies for municipal bonds: Moody's Investors Service, Standard & Poor; and Fitch Ratings. Of the three rating agencies, Standard & Poor's and Moody's rate over 80% of all mun and corporate bonds. Rating Criteria In assigning a rating for general obligation bonds the rating agencies assess the following factors: It Economy Debt Structure • Financial Condition • Demographic Factors * Management practices of the governing body and administration The above criteria are also used to analyze revenue bonds and lease obligations although additional crec criteria is considered (e.g. users and user charges for utilities) and the covenants and protections offered the bond documents are highly important. Rating agencies use mathematical ratios to compare an issuer to others; however, a rating is not a scienl evaluation and subjective evaluation appears to also play a role in the final rating assigned. Moody's Ratings Moody's "investment grade" ratings (ratings higher than Baa in contrast to those rated lower that are considered speculative) are described below. "Aaa" - Bonds rated Aaa are judged to be of the best quality. They carry the smallest degree of invest risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualizes http://www.munibondadvisor.com/rating.htm 5/25/2007 Municipal bond ratings. Page 2 of 3 most unlikely to impair the fundamentally strong position of such issues. "Aa" - Bonds which are rated Aa are judged to be of high quality by all standards. Together with the A group they comprise what are generally known as high grade bonds. They are rated lower than the b€ bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protect elements may be of greater amplitude or there may be other elements present which make the long -t( risks appear somewhat larger than in Aaa securities. "A" - Bonds which are rated A possess many favorable investment attributes and are to be considerec upper medium grade obligations. Factors giving security to principal and interest are considered adeq but elements may be present which suggest a susceptibility to impairment sometime in the future. "Baa" - Bonds which are rated Baa are considered as medium grade obligations; i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over an great length of time. Such bonds lack outstanding investment characteristics and in fact have specula characteristics as well. Bonds in the Aa, A, and Baa are also assigned "1", "2" or' 3" based on the strength of the issue within ea category. Accordingly, "Al" would be the strongest group of A securities and "A3" would be the weakest securities. The following table shows the comparable investment grade ratings of the three major rating agencies: Standard & Moody's Poor's Fitch Best Quality Aaa AAA AAA High Quality Aal AA+ AA+ Aa2 AA AA Aa3 AA- AA - Upper Medium Grade Al A+ A+ A2 A A A3 A- A - Medium Grade Baal BBB+ BBB+ Baa2 BBB BBB Baa3 BBB- BBB - Rating Links The following are external links to websites for the major bond rating agencies and links to sites relating t bond ratings: http://www.munibondadvisor.com/rating.htm 5/25/2007 Fitch Ratings Moody's Investors Service Standard & Poor's - - Details regarding NRSROs is available at the SEC's http://www.munibondadvisor.com/rating.htm 5/25/2007 Cu1 N I I �I 1 Cu Q Q 1 N N Q al Cu MCu 0 O O CD a O) co ti But;eb puo8 O CO O N O O CD N CO N N O N CD N 2007 2009 2004 2005 N O O N a) a) CO O 6) O 6) O CO O N- O U, 00 a) CO CO 0)