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Council Packet - 5/22/2019 4:45pm
THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, SPECIAL MEETING TO BE HELD AT Harold E. Getty Council Chambers Wednesday, May 22, 2019 4:45 PM CITY OF WATERLOO GOALS 1. Support the creation of new, livable wage jobs through a balanced economic development approach of assisting existing businesses, fostering start-ups, attracting new employers and cultivating an adequate workforce. 2. Implement a Community Policing strategy that creates a safe environment in Waterloo. 3. Reduce the City's property tax levies through a responsible balance of cost reduction in City operations and increases in taxable property valuations to ensure that Waterloo is a competitive, affordable, and livable city. 4. Enhance the image of Waterloo and the City to residents and businesses inside and outside of the community. General Rules for Public Participation 1. At the chair/presider's discretion, you may address an item on the current agenda by stepping to the podium, and after recognition by the chair/presider, state your name, address and group affiliation (if appropriate) and speak clearly into the microphone. 2. You may speak one (1) time per item for a maximum of five (5) minutes as long as you have registered with the City Clerk's office no later than 4:00 p.m. on the day of the Council Meeting. If not registered with the City Clerk's office you may speak one (1) time per item for a maximum of three (3) minutes. 3. If there is a hearing scheduled as part of an agenda item, the chair/presider will allow everyone who wishes to address the council, using the same participation guidelines found in these "general rules". 4. Although not required by city code of ordinances, oral presentations may be allowed at the chair/presider's (usually the Mayor or Mayor Pro Tem) discretion. The "oral presentations" section of the agenda is your opportunity to address items not on the agenda. You may speak one (1) time per item for a maximum of five (5) minutes as long as you have registered with the City Clerk's office no later than 4:00 p.m. on the day of the Council Meeting. If not registered with the City Clerk's office a speaker may speak to one (1) issue per meeting for a maximum of three (3) minutes. Official action cannot be taken by the Council at that time, but may be placed on a future agenda or referred to the appropriate department. 5. Keep comments germane and refrain from personal, impertinent or slanderous remarks. 6. Questions concerning these rules or any agenda item may be directed to the Clerk's Office at 291-4323. 7. Citizens are encouraged to register with the Clerk's Office by 4:00 p.m. on Monday of the day of the City Council meeting to appear before the City Council (may also register by phone). Registered speakers will be given first priority. Page 1 of 20 Roll Call. Agenda, as proposed or amended. Presentation by Speer Financial, Inc. OTHER COUNCIL BUSINESS 1. $6,790,000 General Obligation Bonds, Series 2019A. Motion to receive and file proof of publication of Notice of Sale. Resolution directing sale of $6,790,000 General Obligation Bonds, Series 2019A to Raymond James Associates, Inc., at a rate of 2.2756%. Submitted By: Michelle Weidner, Chief Financial Officer 2. $3,210,000 Taxable General Obligation Bonds, Series 2019B. Motion to receive and file proof of publication of Notice of Sale. Resolution directing sale of $3,210,000 Taxable General Obligation Bonds, Taxable Series 2019B to U MB Bank of Kansas City, Missouri at a rate of 2.7620%. Submitted By: Michelle Weidner, Chief Financial Officer 3. Motion to receive and file copies of Calls. Motion to receive and file copies of Calls. Submitted By: Michelle Weidner, Chief Financial Officer ADJOURNMENT Motion to adjourn. Kelley Felchle City Clerk Page 2 of 20 CITY OF WATERLOO Council Communication Presentation by Speer Financial, Inc. City Council Meeting: 5/22/2019 Prepared: 5/19/2019 REVIEWERS: Department Reviewer Action v Finance m a�ii.m� y Approve 121/2( ,. 19 AM Date SUBJECT: Presentation by Speer Financial, Inc. Submitted by: Submitted By: Michelle Weidner, Chief Financial Officer Page 3 of 20 CITY OF WATERLOO Council Communication $6,790,000 General Obligation Bonds, Series 2019A. City Council Meeting: 5/22/2019 Prepared: 5/19/2019 REVIEWERS: Department Reviewer Action Date 9 Finance 'Weidner, M O.e le Approve w 44 P WI Clerk ffice 1 elch.k, :Kelley Approved „ovee 5/21 /2 . l 9 ,,,,, 5:46 i:. ATTACHMENTS: Description ody's .Rating Cover P , , tter y �. CI Moody's News Release May CI Moody's Credit ()pinion May 2049 CI C ity o.,... Waterloo Bon t Ratin g _ list( µy M: oodyRating Scale CI Moody' R...ati g Scale item) 1 :; on s SUBJECT: Type C over , o giver ct,.o ( overm,.a:: Cover ....�:�..�.� (-over (,.over Me Ito Motion to receive and file proof of publication of Notice of S ale. Resolution directing sale of $6,790,000 General Obligation Bonds, Series 2019A to Raymond James Associates, Inc., at a rate of 2.2756%. Submitted by: Submitted By: Michelle Weidner, Chief Financial Officer Page 4of20 Mayor QUENTIN HART CO CIL MEMBERS MARGARET KLEIN Ward 1 BRUCE JACOBS Ward 2 PATRICK MORRISSEY Ward 3 JEROME AMOS, JR. Ward 4 FEUSS Ward 5 SHARON JUON At -Large STEVE SCHMITT At -Large CITY OF WATERLOO, IOWA City Clerk and Finance Department 715 Mulberry St. • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 KELLEY FELCHLE • City Clerk MICHELLE WEIDNER, CPA • Chief Financial officer TO: Mayor Hart City Council Members DATE: May 21, 2019 FROM: Michelle Weidner, Chief Financial Officer RE: Moody's Bond Rating We received notification that Moody's has maintained the City's bond rating at Aa2 for the general obligation bond issues that are being sold this fiscal year, as well as for all other outstanding general obligation bonds. This designation maintains the City's bonds in the medium range of the high quality category. The City's bond rating can be described as the City's credit score. It is used by potential investors to determine the risk they take if they choose to invest in City bonds. The City can expect lower interest rates for bonds sold because we are in the high quality category. 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 and credit opinion from Moody's. The Moody's report states that "the Aa2 rating reflects the city's role as an employment and population hub in eastern Iowa that supports its stable tax base and sound financial profile. The rating also reflects the city's above average debt and pension burden." Our credit strengths are "regional economic center in eastern Iowa with a diverse tax base, and sound financial management that has resulted in stable operating history and maintenance of healthy reserves." Our credit challenges are "above average debt and pension burden and per capita income below average compared to like rated peers." Moody's stated that "the city's management team has a history of positive budget to actual variances for both operating revenues and expenditures." Moody's focuses particularly on the unassigned 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 19.11% of revenues as of June 30, 2018. All the City departments have worked hard to manage their budgets responsibly. 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. WE'RE WO ' `'ING FOR YOU! An Equal Opportunity/Affirmative Action Employer Page 5 of 20 MOODY'S INVESTORS SERVICE Rating Action: Moody's assigns Aa2 t 1 Waterloo, IA's G'' bonds New York, May 20, 2019 -- Moody's Investors Service assigns a Aa2 to the City of Waterloo, IA's $6.8 million General Obligation Bonds, Series 2019A and $3.2 million Taxable General Obligation Bonds, Series 2019B. Moody's maintains a Aa2 rating on the city's outstanding general obligation unlimited tax (GOULT) debt. Following the sales, the city will have $110 million on GOULT debt outstanding. RATINGS RATIONALE The Aa2 rating reflects the city's role as an employment and population hub in eastern Iowa (Aaa stable) that supports its stable tax base and sound financial profile. The rating also reflects the city's above average debt and pension burden. RATING OUTLOOK Moody's does not typically assign outlooks to local governments with this amount of debt. FACTORS THAT COULD LEAD TO AN UPGRADE - Reduction in city's debt and pension burdens - Significant and sustained improvement in financial reserves - Expansion of the city's tax base and strengthening in resident income levels FACTORS THAT COULD LEAD TO A DOWNGRADE - Growth in the city's debt or pension burden - Declines in financial reserves - Contraction of the city's tax base or weakening of resident income levels LEGAL SECURITY The city's outstanding GOULT debt, including the Series 2019A and Series 2019B bonds, is secured by a dedicated property tax levy that is unlimited as to rate or amount to pay debt service. USE OF PROCEEDS The Series 2019A and Series 2019B bond proceeds will finance various capital improvements, equipment and vehicle purchase, and urban renewal projects. PROFILE The City of Waterloo is located in northeastern Iowa, approximately 50 miles northwest of Cedar Rapids. The city provides municipal services to a population of approximately 68,000 residents and is the county seat of Black Hawk County (Aa2). METHODOLOGY The principal methodology used in these ratings was US Local Government General Obligation Debt published in December 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology. REGULATORY DISCLOSURES For ratings issued on a program, series or category/class of debt, this announcement provides certain Page 6 of 20 regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com. Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review. Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Daniel Simpson Lead Analyst Regional PFG Chicago Moody's Investors Service, Inc. 100 N Riverside Plaza Suite 2220 Chicago 60606 US JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Coley Anderson Additional Contact Regional PFG Chicago JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 MOODY'S INVESTORS SERVICE © 2019 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES ("MIS") ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT -LIKE SECURITIES, AND MOODY'S PUBLICATIONS MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT -LIKE SECURITIES. MOODY'S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF Page 7 of 20 CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY'S OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL - BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. CREDIT RATINGS AND MOODY'S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY'S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY'S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE. MOODY'S CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS OR MOODY'S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. CREDIT RATINGS AND MOODY'S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third -party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody's publications. To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S. To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER Page 8 of 20 WHATSOEVER. Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody's Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations Corporate Governance Director and Shareholder Affiliation Policy." Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761 G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761 G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively. MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000. MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements. Page 9 of 20 iiU FINANCE 1I,; Illle11 MOODY IiE S TO R S S IwY1�m, iui��i lh i�uiiiil,li'�li uu 1u� I 'IVII4po'IIII011111111tn,ir I�IN Iid mmww 20 May 2019 Contacts P 0 „uu 11:1 1\mto IIII„kry Illy°° iili l '�'II Ilil Illr°Illn Illi on ::III Ilr.m � iii Ioro"t..1I l) c:� llr..°o "' a llr""or.nl co)c") `° ''^ ::w ; : Ilr..l.m I.,t!° A.on„„ 000nos col fol„E!0000.o s'o?"„)l nl ) Cli...1IE1N Ir SERVICES IIne !lees s As lil ml 111111 dill°° iiii c 1 pa on IIII IIII1 111IIII .312 .70 .996 312.7116 .996"1 Waterloo (City of) IA Update to credit analysis Summary The City ...:f Watedoo. (Aa2), Iowa is part of the Cedar lf: af_ts (Aal)-Waterloo metropolitan area and is an employment hub and population center for the region. The city's tax base is stable, though full value per capita and resident incomes are slightly below the national medians. The city's well-managed finances have resulted in a stable operating history and maintenance of healthy reserves. The city's primary credit challenges are its above average debt and pension burdens and associated fixed costs. Credit strengths » Diverse tax base that is a regional economic center in eastern Iowa » Sound financial management has resulted in stable operating history and maintenance of healthy reserves Core«< it challenges » Above average debt and pension burden » Full value per capita and resident incomes are below average compared to like rated peers ting outlook Moody's does not typically assign outlooks to local governments with this amount of debt. Factors that c u ld lead to an a pgllr „ti e • » Reduction in city's debt and pension burdens » Significant and sustained improvement in reserves » Expansion of city's the tax base and strengthening in resident and incomes that �, a ld lea �iiiii to a viii ,,,fir wllll�gllr C° o IIrS c Ae » Growth in the city's debt and pension burden » Declines in financial reserves » Contraction of the city's tax base or weakening of resident incomes w w w w m ww w w w w w ww w ▪ w w w mw w w w mw w w M w . w. W iur no m. w. w w n0 ou. W iU mr w i. w . m w . u4 w w. w i0 . w. w “II w w m . w w . w i0 . mw M w . m M m w pili . w w i. w M Au . . w m w M ap m M1a .li w m M m no 00 ,u . w . w mr w w mw IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ��/oo� / /i/ O 'O 'G / r / / r f r / / � r r / f �/ III / J / r / r / f r III / r r 11.1 i,, r uuuuuuuuuuuuuuuuuuuuui uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu ����r� ii �_� I ��� ' 'u�, I�III� 1 �JJ�,�,/� �I���i��l��l� 1111111111111111111111111111111111111111111111111111111111 Key in Exhibit 1 Ill Iii ca"to 1i7s Waterloo (City of) IA 2014 21115 216 2017 2018 Economy/Tax Base Total Full Value ($000) $3,706,644 $3,806,814 $3,834,111 $3,891,239 $3,976,923 Population 68,392 68,432 68,357 68,146 68,406 Full Value Per Capita $54,197 $55,629 $56,090 $57,102 $58,137 Median Family Income (% of US Median) 80.4% 79.3% 81.4% 79.5% 79.5% Finances Operating Revenue ($000) Fund Balance ($000) $61,967 $18,224 $62,739 $18,193 $64,467 $17,679 $65,853 $18,009 $67,190 $17,633 Cash Balance ($000) $22,710 $20,512 $24,084 $23,894 $23,671 Fund Balance as a % of Revenues 29.4% 29.0% 27.4% 27.3% 26.2% Cash Balance as a % of Revenues 36.6% 32.7% 37.4% 36.3% 35.2% Debt/Pensions Net Direct Debt ($000) $70,787 $69,128 $77,051 $84,322 $89,070 3 -Year Average of Moody's ANPL ($000) Net Direct Debt / Full Value (%) $132,351 1.9% $126,045 1.8% $131,232 2.0% $137,677 2.2% $151,946 2.2% Net Direct Debt / Operating Revenues (x) 1.1x 1.1x 1.2x 1.3x 1.3x Moody's - adjusted Net Pension Liability (3 -yr average) to Full Value (%) 3.6% 3.3% 3.4% 3.6% 3.8% Moody's - adjusted Net Pension Liability (3 -yr average) to Revenues (x) 2.1x 2.0x 2.0x 2.2x 2.3x Tax base data is displayed on a tax year basis, while financial data is displayed on a fiscal year basis. Source: City's audited financial statements, Moody's Investors Service, Inc., U.S. Census Bureau Profile The City of Waterloo is located in northeastern Iowa, approximately 50 miles northwest of Cedar .Ep..ids (Aa1 stable). The city provides municipal services to a population of approximately 68,000 residents and is the county seat of .I c Hawk.County (Aa2) Pet iiia led ciir d hilt coiirnds ilii 11 eiiratiiiioiii VIII ser ei pit yi antm rid Ip p ti Illlri IIID° IIIb in mmm° m a,Illlrllln VIII w Waterloo's tax base and economy will likely remain stable due to its role as a regional commercial and industrial hub. Waterloo is located in eastern Iowa's IBlack...[Hawk .._ _ County (Aa2), approximately 50 miles northwest of the : y of Cedar (Rapids (Aa1 stable). The city's tax base is stable and has grown at an average annual rate of 1.6% over the last five years and is currently valued at nearly $4 billion. While tax base growth is relatively modest, there is a considerable amount commercial and industrial development taking place within the city that should facilitate faster near-term growth. Taxpayer concentration is modest with the top ten taxpayers comprising a modest 6% of the city's taxable value. The city's economy is dominated by manufacturing, with additional employment opportunities in the government, health care, and higher education sectors. The city's largest employer is Deer ....and Company (A2 stable), which employs approximately 5,600 people representing 17% of the city's workforce. While Deere has layed off employees over the last five years, operations have stabilized and the company has continued to invest in its local operations. The city's labor market continues to lag the nation as a whole with total employment remaining around 6% below its prerecession peak. The unemployment rate as of March 2019 was 3.6%, above the state rate of 2.8% and national rate of 3.9%. Arland r f ti ins Illln a r serve 110011 f i„„ "11y Illi) . by Ku Illln t. inn lin gement The city's financial position is currently sound and operations remain stable. The city closed fiscal 2018 with an available general fund balance of $15 million, or 30% of annual revenues. Across the city's major operating funds (which include the general, debt service, and trust and agency funds), available fund balance ended fiscal 2018 at $18 million, or 26% of operating revenues. For fiscal 2019, the city expects a modest improvement in unassigned general fund balance to $9.6 million from $9.4 million in fiscal 2018. ...his pubL6lcat'lion 105 not allmll1 unce d credit orating c1II0'olr ally credit ratings (belt renced in this puulbLica www.um dysoc®irn roue the most updated credit rating action dui1r rm doh and rating hist urym u please see tIh ldungs la m our Il e issuer day If�ge sir IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 00'1,1 2,1319 SAtateriooVit odateli ur.,,Fjae 0 rr S� i// / f/,i ,o / 1111 i ui% uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu/ II r r'G f f 1111111111111111111111111111111111111111111111111111111111 The city is exposed to some enterprise risk due to its operation of the Cedar Valley SportsPlex. The 125,000 square foot facility was financed through a combination of private donations and grants from the Black Hawk County Gaming Association. The city acquired the property and signed a lease purchase agreement to operate the facility for $100 per year from the Waterloo Development Corporation in 2014. The annual budget for the SportsPlex is approximately $1.1 million or less than 2% of total operating revenues and has generated operating surpluses each year. LIQUIDITY Liquidity across the city's operating funds is sound. At the close of fiscal 2018, available cash totaled $24 million, equal to a healthy 35% of operating revenue. ID °t p pilotiiiii �� .ve IIIIV °t n cl p nal iiiii s The city's above average debt burden will likely moderate given future plans to finance capital projects on a pay-as-you-go basis. Inclusive of the Series 2019A and 2019B, the city's debt burden will total $110 million which is 2.5% of full value and 1.5x fiscal 2018 operating revenues. The city plans to issue approximately $10 million of GO debt annually to fund its capital improvement program. A significant portion of the city's GO debt is supported by TIF and hotel revenues. The net direct debt figure above is net of $18 million of GO debt that is self-supporting from sewer system revenues. Debt service expense has historically consumed 20% of the city's operating revenues. The city's pension burden is also elevated. The city's three-year average Moody's adjusted net pension liability (ANPL) totaled $152 million, or an additional 3.8% of full value and 2.3x fiscal 2018 operating revenues. In comparison, the city's reported net pension liability, which is based on higher discount rates, was $49 million. Fixed costs, consisting of debt service and pension funding, have historically consumed around 30% of annual operating revenues. The city's above average fixed costs are driven debt service and are somewhat mitigated by unlimited property tax levies that can be utilized for debt service and pension contributions. DEBT STRUCTURE All of the city's debt is fixed rate and long-term. Amortization is rapid with 86% of principal scheduled to mature within ten years. DEBT -RELATED DERIVATIVES The city is not a party to any derivative agreements. PENSIONS AND OPEB Waterloo participates in two defined benefit multiple -employer cost-sharing plans, the Iowa Public Employees' Retirement System (IPERS) and Municipal Fire and Police Retirement System of Iowa (MFPRSI). On an annual basis, each plan establishes local government retirement contributions as a share of annual payroll based on actuarial requirements. The city has routinely made its full statutory contributions. The city contributed $5.5 million to both plans in 2018, an amount equal to 8% of operating revenue. Statewide contributions to the plans in fiscal 2018 were equivalent to 103% and 84% of plans' respective "tread water" indicators. This measures annual employer contributions required to prevent reported net pension liabilities from growing, assuming other plan assumptions hold. After accounting for employee contributions, annual government contributions that tread water equal the sum of employer service cost and interest on the reported net pension liability at the start of the fiscal year. The city operates a single -employer health benefit plan which provides medical/prescription drug benefits for employees, retirees and their spouses. Retirees are required to pay the current premium equivalent amounts less a contribution subsidy provided by the City for those employees hired prior to July 1, 1990. For fiscal 2018, the city contributed $1.8 million or 2% of operating revenues to the plan. As of June 30, 2018, the most recent actuarial valuation date, the city's total OPEB liability was $20 million. .. a .... .� � �� .. ��, � � ,� �, � �. � �u � .� m� Pity a , � � �� .. �� , �� �, VIII iiiin iii ant t ion �� iiiir iiiir ion tor on hili iiia tiiiii t t iiiii n f for dm iallllll for d t iiiii fiiiii t t pu t iiii� iiiir m on Leap iol a Pen iiiir µ.. Iowa cities have an Institutional Framework score of Aaa, which is high. Institutional Framework scores measure a sector's legal ability to increase revenues and decrease expenditures. Even with property tax caps on general and emergency levies, cities have strong revenue -raising flexibility due to various additional levies, including an unlimited levy for employee benefits. Waterloo levies at the full state -imposed property tax cap of $8.10 along the with emergency levy of $0.27 per $1,000 of assessed valuation. The city also utilizes separate levies for debt service and employee benefits; however, the city has approximately $1.6 million in revenue raising flexility under the Employee Benefits and Insurance levies. In addition to the city's moderate property tax revenue raising flexibility, City Council I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 3 2 0 00,1 2 01 Page , .oil 2 VSiS �� /i/ O ��,, / r / / r f r / / � r r / NA �/ III / J / r / r / f r III / r r f i,, r uuuuuuuuuuuuuuuuuuuuui uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu �'a���i�i�i � ��_� I I I �� 'ER IIIII�� I ������ �����1�1� 1111111111111 may elect to increase its franchise fee, which currently stands at 4% for electric and gas utilities. Voters 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 LOST currently sunsets in 2025. The city's management team has a history of positive budget to actual variances for both operating revenues and expenditures. 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, compared to the 19% of revenue it closed with in fiscal 2018. Unpredictable revenue fluctuations tend to be minor for Iowa cities. Across the sector, fixed and mandated costs are generally moderate. However, Iowa has public sector unions, which can limit the ability to cut expenditures. Expenditures mostly consist of personnel costs, which are highly predictable. Waterloo's management team has a history of positive budget to actual variances for both operating revenues and expenditures. Management maintains sufficient revenue raising flexibility Imet hmo ()logy an scoiirec iiia °' c°toirs The US Local Government General Obligation Rating Methodology includes a scorecard, a tool providing a composite score of a local government's credit profile based on the weighted factors we consider most important, universal and measurable, as well as possible notching factors dependent on individual credit strengths and weaknesses. Its purpose is not to determine the final rating, but rather to provide a standard platform from which to analyze and compare local government credits. Exhibit 3 Waterloo (City of) IA Rating Factors Measure Score Economy/Tax Base (30%) [1] Tax Base Size: Full Value (in 000s) $3,976,923 Aa Full Value Per Capita $58,137 A Median Family Income (% of US Median) 79.5% A Finances (30%) Fund Balance as a % of Revenues 26.2% Aa 5 -Year Dollar Change in Fund Balance as % of Revenues -0.2% Baa Cash Balance as a % of Revenues 35.2% Aaa 5 -Year Dollar Change in Cash Balance as % of Revenues 5.3% A Management (20%) Institutional Framework Aaa Aaa Operating History: 5 -Year Average of Operating Revenues / Operating Expenditures 1.0x A Debt and Pensions (20%) Net Direct Debt / Full Value (%) 2.5% A Net Direct Debt / Operating Revenues (x) 1.5x A 3 -Year Average of Moody's Adjusted Net Pension Liability / Full Value (%) 3.8% A 3 -Year Average of Moody's Adjusted Net Pension Liability / Operating Revenues (x) 2.3x A Scorecard -Indicated Outcome Aa3 Assigned Rating Aa2 [1] Economy measures are based on data from the most recent year available. [2] Notching Factors are specifically defined in the US Local Government General Obligation Debt methodology dated December 16, 2016. [3] Standardized adjustments are outlined in the GO Methodology Scorecard Inputs Updated for 2018 publication Source: US Bureau of Economic Analysis, Moody's Investors Service I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 41 I111'1, y 2 Waite 1„o o ity of) al el .oil z VSiS „„ O „„ DY!illiSo 1111111.1 itS1111111 i111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111101111154 11110"1BLIIC NANIC 0209 M dys C rporici n, Mo dy's ivesi,rs Service, ic Moody's Anallytics, inc. 7 rid/ r their licensors and affili tes(c,lleclveLy°'111,1001111)YS). 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FPO NANCIIIA11„„„ ADVICE:111, AN II1B C113111111111,111111)11131- 113A111311INGS AND MOODY'S 11,1,J1111311„.111CA111-111ONS AIR111111111, NO-111AN111111) 111111)0 NO -113 11,11301111D111111111, 1113111111111,COMI11311111111111N IDA-11111110NS 31130 IPLAIR.CIREAS1111111111, S11111111111„„„31„„„,„ 01113 11-11011„„„„111111) 11,A113311-1110„..J11„„„,A111 S1111111111CLJR11131131111111111111D. N111111111,111311311-111111111111113 CIR111111111,111)1113113 113A-13111INGS IN0113 IM00111111)YIS 1113U11111311„„„111CA11131110NS COM111311111111111N-113 OIN 31131131111111111, SL111113111A111111311111„„„„111313Y OF AN IIINV111111111153131M1111111111N-113 111"01113 ANY 11,A113311-111CUll„„„„A111"3 IIIIINV111111111S-11301111. MOODY'S IIISSUI111111111S 1113113S 61311111111111111111111313 11"13A1111311INGS ANED PU11111311„„„„111S11-11111111115 M00111111)Y'S 111111U111131113,111CA-11-1110NS 111311311-11 311311-111111111111 111111111X1P111111111,011A-1-1110N ANIID UND111111111113S-11ANIIDOING 31311-111A-113 111111111,ACII-11 ENVIE:ES-130113 WIIIII„„„„1„„„„ V3/111311311131 1111)13E111111111, CAIR111111111, MAIKI11111111, 11131113 OWN S-1131UODY ANI111111) 111111111,VAIII„„„,UA111-1110IN 0111"' 1111111111A011 S111111111,CUIR1113113Y 311-11-11A1113 IIIS IAN II1D1111111111113 CON S 11111)111111111, 113A1113111 0 N 0 IR IP Ai IR C III --II AS 111111111, III --II 0 11„„„, N 0 113 A 111„„„,11111113 MOO II1DY'S 0113111111111.1111)111-1113 IIRAT-IIINGS AN ID MOO IDY'S 1111U1111113111.......111CA-1-111ONS A1E3111111111 NO13 III N -11-111111111N DE11111111111) 11":0 USI11111111. III3Y II31111111111TAIII III NV111111111,S1-011:6 AINIID 11113 VL/OU111.......111) 11131111111111 1131111111111CK111.311111111,SS AIN ID IIIINAIIP1131113011P13111A11111111111 11E0113 113111111111TAIII III NV111111111.51-011116 '130 USI111111111 111,100111DY'S C11311111111111111)1131- IRATE NGS 01113 M001111DY'S IPU1113111.......111CA-1111ONS V3/111.... -111111111111K MAKE NG AN III NV1111111111S-1-13111111111111N-13 11111)11111111131111SIIION. 11111 ION IDOUI1131- YOU SII -....-10U111.......11111) COIN-FAC13 YOU1113 01113 01-11.--111111111111113 11P111301:111111111SSIIIONAIL. AIDVIIIS111111111.11B, A111......111..... IIINIEFOIIBMA-1-1110N CON-1A.1111N111111111.1111) III 111111111111E3111111111.111 IIIS 11)1130-13111111111101-1111111111111) II13Y IINC11.......UDIONG 1113U-1- NO13 11.......111M1131-11111111111111) '130, COIPY113.111G11-....-113 II.......AW„ AND) NO IN 111111111. 0 113 S N II": 0 113 M A-13 III 0 N MAY 1111113111111111. C 0 111) III 1111111111 IID 0113 013 11-....-11 1111111111113W S 1111111111 113111111111111P 11130 111111)U C111111111.111111,1, 1113.111111111. IPA C KA G 111111111111111), II": U 11313 11-....-11 1111111111113 31-1E3.A N S IM 1131-313 111111111. ID, "1-1113ANSIEF111111111111131113111111111111111)„, ID III S S 111111111. M III NA II 'OLE 111111), 113 111111111111D S-1-113 III 111113 U-1-111111111111111) 0113 1131,1111111111S011.......1111)„ S-101113111111111.1111) 11E0E3 SUII3S111111111.QUI11111111.N3E- USI11111111. 11101113 ANY IPUORIPOSI11111111, W11...-10111.......111111111. 0113 ION 1113/311131-1 III IN ANY IFORM 01113. MAN NI11111111.1113 0E3 IIBY ANY MI111111111ANS W11...-1A1-S011111111V111111111.1113„ 111111Y ANY IP1111111111113SOON W111 -1-111....-110U-113 MOOIDY'S IIPIR11101113 W11311313:1 -111111111N CONS1111111111N-E3. (0111111111,111111)111- 111"(VIIIINGS ANID M001111111)YS P10111„„„,111CA"f111OIN0A(111111111 NOT" IIINT"1111111110\1111111)111111111111111) 11"""l0II(1L.JS111111111, 11113Y A.9Y IP111111111,IRSON AS A 111131111111111NC11-1111\1AIROK A.S 1 -11 -11A"1.1 -11111111111"0M 111S 1111111)11111111111"""IIIIIIN111111111111111) 111":011"(01111111111CUll„„„„VORY IIPUli(11,0511111111115 AI1N111111) M01S-1" INO"T" 1113111111111, 10111111111,1111111,) II1N AWWAY "1".11-1AT COU11„„„„111) li(1111111115011111„„„1"1". IIIN ""1-111111111111111M 113111111111,11111NC CO11NSIII11.)111111111111"Z111111111,1111111) A 111113111111111,11`�C11111151AIR11C All infori-n°„ti n cant lined Illerein is•Obtained y100 )YS from SOUITCCS believed by it to be ° ccurolte and reliable3ecause 1 Inc p•ssibility of human inecin Cd error as welt dS thefact rs, 111) wever„ all iionf rmation contain d Onierein is provided AS °IS" with ut warranty of °•iriy kind. M001111)Y'5 ad pts • II necess- iy measures so that the iolformation it uses in assigning a cre it ratio -mg is of sufficient qur lity id Irrorn s•urces M0011111)Y°5 c nsiders to be reliable including when ppropriate, independent third -party sources, However, M0011111.)Y°S is 1.01 id 10 „ nd canon t in every instance independently verify or voilid te information received in the rating pr cess or in preparing the OM dy's °public tions, "To Inc x1c nt0°. en itted °by 14w, '100 )YS aild its direct rs, officers, employe ,s, agents, representoitives„ licensors and sui)pliers disctiim bility to aily pcs,n or entity for ny ind ec1,sc c nsequenti I, or incident:1 sses or amiges whatsoever arising from or nc. r-mection with the inf rm ti n contiined herein r the us nan tylo irse any sucIlli information, even if 100 )YS r fits direct rs, officers, empl.yees, agents, represent.tives„ licensors or suppliers is advised in advionce of Inc p such •sses or damagesHncluding but not° limited to: (a) any ss f present or igospective profits •r (16) any loss r Cmage arising wh nnl°,11-ie relevant firm. nci;o1 instrurnent is not the subject of particular credit rooting assigned by 100 YS .1°. the extent perr itted by MOODY'S and its direct rs, officers, empl yees, agents, representatives,. licensors and suppliers disct 111m bility r any direct r c nmbens-tory -se r darnages caused 1. ny nem.n r entityjnctuding 1°.)ut not liomited t by any negligence (but excludio-ig fraud, willfu°1 rnisconduct or 7° ny thetype f liability that, .1 r 10 avoid nce d ubt, by bow c,,,,nnot be excluded) n the part of, r °;ouly contingency within or beyond the control of, M001111111)Y'S or T, ny of its directors, officers„ empl yees, agents, represent°,tives, ticens rs r suppliers, arising °for m 1 c imbection witlIn the inf rmati n contained 111ereion•r the use f r in- 111)1111ty ..to use any such inform.4i n„ 1190 WAII"ZIIIIZA.N"T"Y, 111111111,XPII1Z111111111,55 01111 111115111P11„„„,111111111111111D, AS "1".0 1-11-1111111111 ACCIL.1111"ZACY, -1111119111111111111„„„,1119111111111,SS„ C(.)11\111,11„„„„11111111111-111111111119111111111,55, I9111111111,11"101RIIAI9-1A111311111„„„,11"1"Y 011"Z 11"""l111 -1.111I9111111111,55 11"""IOR A1NY PAIR-1111C0JI1111„„,A11"Z I01I005111111111, 011"""I A19Y Cli(1111111111111)1111- 0IIING 0113 0111 1111 113 0111311191110I9011Z 9 000 IIION GIIIVI1 N 011Z IMA11)11 11\100111 )Y'S IIIN ANY III 011111M 011Z MAINNIII 11Z W 0 S011 VII 11Z Mo dy's °Invest rs Service, inc„,, a wh Illy -owned credit noiting agency subsidiary f M dys Corporation ("MCO"), hereby disc°. ses th t most issuers of debt s curities oncluding c rpor te and municipal bonds, de ienlu es nsles and c innncrc al paper) and preferred slsc ted by M dy's nvest rs Service nc have, 1101 10 assignmto 1.1 any rating„ agreed to pay 10 Mo dy's °Investors Service, 1C 1s 4ings opini s and services r ndered by it fees ranging °from $i 001 to aipr S2,70 ,000. MCO rid KOS Is maintain policies and pr cedures to address the independence f MOIS's ritings and rating pr c sses. inform4ti n regarding certain affiliati ns thit may exist between direct rs of MCO and ted entities, and between entities wn. 1 Id rodftngs fr m MOIS nd IllTave also publicly cn.rted to the S111111111.0 an wnership interest ion 111,1C0 1 ornore tIrmi;on 5%, s p sted annually at ww.mood s.com under the heading "invest or 1;: lations C rr)LC G vernance 1111)irect r aol-md Shareholder n licy" Additi nal terms for Australia nly: Army publication into Austr. of this d cument is pursuant to the Australian 11"""inancial Services 111„„iicense 1 M0011111)Y'S affiliwte, dy's °Invest rs Service 111„„„imited A.111131N 6 10.3 .399 657AF5111„„„, 336 69 and/or Mo dy's Analytics Australia Pty 11„„„„Id ABN 94 1 In 136 972 AFISIL„, 1,3°111369 (s "This d cument is intended to 11)e i)dr vided only to "wh dents" within Inc iineionihg of section 7610 f Inc Corporations Act 2001. 11113y conl nn ng t. 7 ccess this d cument “fr rid within Australia„ you -epresent M001111)Y°5 that y u are, or are 7 ccessing the document . s a represei-rtative of, "wholes,. le client" and that neither you n•r Inc eo-tity you o-epo-esent will dio-ectly r indirectly disseminate this d cument or its c ntents t "o -et clients" within Inc me- ning 1 section 761G of the C rp rations Act, 2001. 11\10010)Y°5 credit 111ngis an opihion it., to• the creditworthiness of a debt bligation of the issuer, not on the equity securities of Inc issuer or ny form of security that sava aol,cIainvestors. Additional terms for jap n only: Mo dys japan IK,11K„ ("MilKIK") is a wholly-owned credit r ting agency subsidiary of Mo dys Gr up japan G,K,, which is wh Hy- wiled by Moody's Overseas 111 wh.1y ,wned subsidi ry of 1MCO, Moody's SF Japan 11K.K. (M511"1”) is wholly- wned credit rating acncy subsidiy of MS11"""Iii is not N tionally Recognized Statistic °Rating Organization CNIRSIR Tiberef re, credit ratings assigned lby MS11"""1 are Non-NRSIRO Credit IR tings, Non-NRSRO Credit Ratings are assigned by entity that is NIRSIRO and, consequently, the r7 ted will not quali.fy r certiin types f treatment under U.S.U 5 aws. 1J (1 ind 0115(1 ire credit rating agencies registered with the Japan III"""in ncioil Services Agency and the.oir registr ton numbers are IHSA C rnrnissi ner (Illatings) No. 2 - nd 3 respectively, KKK or MSH (as ioppiic Me) hereby disclose that most issuers of debt securities (includin c rporite and municipal bonds, debentures,. notes and commerco Riper ind preferred stock rated III)y 0\4i 1KK r M5111"""li (as °°ippl,icioble) have, IS r ssignment of iony rating, agreed to pay to MJ1KK or 111\1511"""1 (as applicible) for natings 00 -lions and services rendered by it fees ranging ofrom 00)1(125, .., 00 to pproximitely ilion(25 Itt„ 0 „ Milla and MS11"""1] als maintain i)olicies and n ocedu o t address 5 2 „„1 II1,1 ay 2 '19 J -o .oe o-egulao. ry requirements, REPOR"r NUMBER 1176, 55 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Waite or lo o ,(1,C [toy of) JWIL.: Dd a to e e re, d i4loo Page OT ySiS „„ O „„ DY'S 11111111111.1 itS111111 UiF4PUBIFJJ4ANEIC cLuE NT SERVICES ” INVESTORS SERVICE 6 20 Ohl ay 2 0 'I 9 111,3 1 212 553 1 11'52 3551 3(177 1100 1 5,11114 /1'100 /11 312 7772 51 S MI to rico, o aty at) 00 A.: D11„„J pd ate to cored it a on a tys Page 15 of 20 0 atm :si City of Waterloo GO Bond Rating History Aa2 Aa2 Aa2Aa2Aa2 Aa2a Aa2Aa 1983 1984 1985 1987 1989 1991 1993 1995 1997 1999 2000 2002 2004 2005 2007 2009 2010 2012 2613 2014 2015 2016 2017 2018 2019 Year Page 16 of 20 Moody's Rating Chart 11J11111111111 IHHHlii 'l «noimil iooi«11➢ �,toJro���1i1J�f 111 10111111 i1i1 g 1i J1111i1�i llIll li 1111iJ i1 111111 r 11 A� 1111111111111111111111111111111 10,10001000000000000000000010100101011 jai a ,1 rrJJJ�f/jfJJ�� dl� I�I�9IHHH H HH $Cit P ) Atiti%%t lli1��11�i1;�ri �rr1 E\ ;,„))11LiiiiHm 11111 1111111111111111 1 IHHHH 1HHH ll, 1><��a�rt11I�,11rt111 'Ifl Yk'Ifl Yq'ufllubu'Ifl Yk'Ifl YMfll YWIfgpYkflfll bu'Ifl Yk'ufllu b'uflf(IJYk'Ifl pq'rtf'I Yrt'ufa Yk'ufl pq'ufllubuflflApYWrtf'uJYlJrtf'I pYP'Iflq Yrtaf'n bk'Ifu h pp II II I^I I)IIf' � tt� �l GF l�1y.9➢ir1��IYF¢Ir�y PI �I ISI � � �I nI � �1 1 I? I,I J1f 1 ;,, JJJi ," 111111111111111111111 flm1HEImmEIHIEHHHIN el II �rgrrll(�,r rr�° �1'1000 e'r'r?lel I�rrt «f;l';IgI 11 11111111111111 ii1111111'11 I I1 11 1 11 ��m11�1��� 11111 V1100100'00,000NNNN'NN1'NNNN00011, 11,1 1o1o'Do1omm omomm'Dom1111 11�Il01�0(0111� �I11�191mil 1�11o1 i1 �� id �I�I��1661661�t 1I111HoIt, I1It, It, I1 1111 .1 II OPOI OI II II OPOI III II 1f1 I1111111111111111111111111111111111 1,11,11111 11 1 1 111111 1 111111 1 1 0,111x lli1111111 •i rill r u,i{itiii 11111111111111.111111111111111114111111111. 11111111 ( III III I I� ��i1t �Ylh/ 1'11117 11��1 10101 ( 000 ,, 111111111111 III I II I 1 Page 17 of 20 Rating Scale and Defi CITY OF WATERLOO Council Communication $3,210,000 Taxable General Obligation Bonds, Series 2019B. City Council Meeting: 5/22/2019 Prepared: 5/19/2019 REVIEWERS: Department Reviewer Action Date Finance in.ance 'Weidner,, Michelle Approved. � Y' Y 45 P'11/1 a. : Clerk .c c •iF el hl , :Kelley .Approved over /21/2O19 ,,,,, 5:45 P.M.' SUBJECT: Motion to receive and file proof of publication of Notice of S ale. Resolution directing sale of $3,210,000 Taxable General Obligation Bonds, Taxable Series 2019B to UMB Bank of Kansas City, Missouri at a rate of 2.7620%. Submitted by: Submitted By: Michelle Weidner, Chief Financial Officer Page 19 of 20 CITY OF WATERLOO Council Communication Motion to receive and file copies of Calls. City Council Meeting: 5/22/2019 Prepared: 5/19/2019 REVIEWERS: Department Reviewer Action Date F in.arce Weidner, Mich 1.1.e .A.pp_rov e 5/19/ Clerk .ce :Rigby, N , ricy Approved :'5/21/2 SUBJECT: Submitted by: Motion to receive and file copies of Calls. Submitted By: Michelle Weidner, Chief Financial Officer PM AM Page 20 of 20 $6,790,000 City of Waterloo, Black Hawk County, Iowa General Obligation Bonds, Series 2019A Best AON Bidder: Best AON TIC: Raymond James 2.275662 % Serial/ Principal Sinker/ Due Amount * Term Coupon Jun 1, 2020 $560,000 Serial 3.000% Jun 1, 2021 $610,000 Serial 3.000% Jun 1, 2022 $625,000 Serial 3.000% Jun 1, 2023 $645,000 Serial 3.000% Jun 1, 2024 $660,000 Serial 3.000% Jun 1, 2025 $670,000 Serial 3.000% Jun 1, 2026 $695,000 Serial 3.000% Jun 1, 2027 $445,000 Serial 3.000% Jun 1, 2028 $455,000 Serial 3.000% Jun 1, 2029 $460,000 Serial 3.000% Jun 1, 2030 $475,000 Serial 3.000% Jun 1, 2031 $490,000 Serial 3.000% Purchase Price: $7,063,579.50 Spread: None Entered Time Submitted: May 22, 2019 at 11:29:40 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes only) Issue Size $6,790,000 Gross Interest $1,243,780.83 Plus Discount/(Less Premium) (273,579.50) Total Interest Cost $970,201.33 True Interest Rate 2.275662% Total Bond Years 41,459.36 Average Life 6.106 Years Firm: Raymond James *Preliminary, subject to change The foregoing bid as submitted or as revised post sale, if appropriate, was accepted and the Securities sold by action of this Board, and receipt is hereby acknowledged of the good faith Deposit, if any, which is being held in accordance with the terms of the annexed Official Notice of Sale. Signature: Title: L� IQ( Attest: Signature: Title: $3,210,000 * City of Waterloo, Black Hawk County, Iowa General Obligation Bonds, Series 2019B Best AON Bidder: Best AON TIC: UMB Bank 2.762044 % Serial/ Principal Sinker/ Due Amount * Term Coupon Jun 1, 2020 $285,000 Serial 2.600% Jun 1, 2021 $285,000 Serial 2.600% Jun 1, 2022 $295,000 Serial 2.600% Jun 1, 2023 $305,000 Serial 2.600% Jun 1, 2024 $315,000 Serial 2.600% Jun 1, 2025 $320,000 Serial 2.600% Jun 1, 2026 $335,000 Serial 2.600% Jun 1, 2027 $345,000 Serial 2.700% Jun 1, 2028 $355,000 Serial 2.800% Jun 1, 2029 $370,000 Serial 3.000% Purchase Price: $3,204,106.70 Spread: $4.74 Time Submitted: May 22, 2019 at 11:54:57 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes only) Issue Size $3,210,000 Gross Interest $499,719.13 Plus Discount/(Less Premium) 5,893.30 Total Interest Cost $505,612.43 True Interest Rate 2.762044% Total Bond Years 18,303.42 Average Life 5.702 Years Firm: UMB Bank *Preliminary, subject to change The foregoing bid as submitted or as revised post sale, if appropriate, was accepted and the Securities sold by action of this Board, and receipt is hereby acknowledged of the good faith Deposit, if any, which is being held in accordance with the terms of the annexed Official Notice of Sale. Signature: Title: Attest: Signature Title: i(Y1 coil