SPEER FINANCIAL, INC.

Transcription

1 SPEER FINANCIAL, INC. INDEPENDENT PUBLIC FINANCE CONSULTANTS SINCE 1954 Suite Commercial Street Waterloo, Iowa (319) FAX (319) Suite 4100 One North LaSalle Street Chicago, Illinois, (312) FAX (312) FINAL TERM SHEET CITY OF LIME SPRINGS HOWARD COUNTY, IOWA $385,000 GENERAL OBLIGATION LOAN AGREEMENT ANTICIPATION PROJECT NOTE, SERIES 2015B Dated Date: December 7, 2015 Sale Date: November 19, Date of Closing: December 7, 2015 Issuance Amount: $385,000 Purchaser: Bankers Bank, Madison, Wisconsin Purchase Price: $381, Interest Due: The Note is to bear interest in a multiple of 1/8 or 1/100 of 1%. Interest is payable semi-annually on December 1 and June 1, commencing June 1, 2016.

2 Final Term Sheet CITY OF LIME SPRINGS, HOWARD COUNTY, IOWA $385,000 General Obligation Loan Agreement Anticipation Project Note, Series 2015B Page 2 of 4 Principal Amounts, Maturities, Interest Rates and Yields: Principal amounts, maturity, interest rate and yield for the Note are set forth below. Principal Due Interest Amount June 1 Rate Yield $385, % 1.450% Purpose: The Note proceeds will be used to finance the construction of street related improvements and pay the cost of issuance of the Note. Optional Redemption: The City reserves the right to prepay the Note on or after June 1, 2016, at a price of par plus accrued interest. Loan Agreement: The City and the purchaser will enter into a Loan Agreement providing for a loan to the City in a principal amount equal to the principal amount of the Note, and the Note will be issued in evidence of the City s obligation to repay the amounts payable under the Loan Agreement. Security: The Note will constitute valid and legally binding general obligations of the City, payable both as to principal and interest from unlimited ad valorem taxes levied against all taxable property in the City. Future Financing: The City does not intend to issue debt in the foreseeable future. Legal Opinion: The opinion of Dorsey & Whitney LLP, Des Moines, Iowa, as to the legality of the Note will be provided by the City.

3 Final Term Sheet CITY OF LIME SPRINGS, HOWARD COUNTY, IOWA $385,000 General Obligation Loan Agreement Anticipation Project Note, Series 2015B Page 3 of 4 Federal and State Tax Considerations: The opinion of Bond Counsel will state that under present laws and rulings, interest on the Note will be excluded from gross income for federal income tax purposes and will not be an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations under the Internal Revenue Code of 1986 (the "Code"), and, for the purpose of computing the alternative minimum tax imposed on corporations, such interest will be taken into account in determining adjusted current earnings. There may be certain other federal tax consequences to the ownership of the Note by certain taxpayers, including without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax exempt obligations. Bond Counsel will express no opinion with respect to such other federal tax consequences to owners of the Note. Prospective purchasers of the Note should consult with their tax advisers as to such matters. Bank Qualification: The Note will be designated as qualified tax exempt obligations. Paying Agent/Registrar: Banker s Trust Company, Des Moines, Iowa Denominations: $5,000 and integral multiples of $5,000 in excess thereof. Authorization: The Note is being issued pursuant to authority established in the Code of Iowa, Chapter 384 and all laws amendatory thereof and supplementary thereto, and in conformity with a resolution of the City Council duly passed and approved. Financial Information: Most recent financial statements for the fiscal year ending June 30, Financial statements of the City for prior years are available upon request of the Purchaser. Official Statement: The City will not produce an Official Statement for the Note.

4 Final Term Sheet CITY OF LIME SPRINGS, HOWARD COUNTY, IOWA $385,000 General Obligation Loan Agreement Anticipation Project Note, Series 2015B Page 4 of 4 Litigation: There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of the Note, or in any way contesting or affecting the validity of the Note or any proceedings of the City taken with respect to the issuance or sale thereof. Expenses: The City will pay for the legal opinion and the financial advisor's fee. CUSIP numbers are at the cost of the purchaser if necessary. No Credit Rating: A separate credit rating will not be provided for the Note. Secondary Market Disclosure: Participating underwriters in the primary offering of the Note need not comply with paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, because the aggregate principal amount of the Note and any other securities required to be integrated with the Note is less than $1,000,000. Upon request, the City will provide its annual financial statements. The City: City of Lime Springs, Howard County, Iowa. Contact: Ms. Rhonda Klapperich, City Clerk 201 Center Street PO Box 296 Lime Springs, IA (563) Financial Advisor: Speer Financial, Inc., Waterloo, Iowa/Chicago, Illinois. Contacts: Larry Burger, Vice President Maggie Burger, Vice President (319) telephone (319) facsimile

5 City of Lime Springs, Howard County, Iowa $385,000 General Obligation Loan Agreement Anticipation Project Note, Series 2015 EXHIBIT A Population Comparison(1) City Percent The Percent The Percent Year Population Change County Change State Change n/a 11,114 n/a 2,913,808 n/a (7.98%) 9,809 (11.74%) 2,776,785 (4.70%) % 9, % 2,926, % % 9,566 (3.69%) 3,046, % Note: (1) Source: U.S. Bureau of the Census. Annual Average Unemployment Rates(1) Calendar Howard State of United Year County Iowa States % 6.3% 9.6% % 5.9% 8.9% % 5.2% 8.1% % 4.7% 7.4% % 4.3% 6.2% 2015(2) % 3.8% 5.4% Notes (1) Source: Iowa Department of Management (2) As of September 2015 Actual Valuations for the City Levy Year Fiscal Year Amount Percent /12 $18,634,598 n/a /13 17,681,524 (5.11%) /14 17,721, % /15 18,370, % /16 18,418, % Taxable Valuations for the City Levy Year Fiscal Year Amount Percent /12 $11,218,194 n/a /13 11,022,213 (1.75%) /14 11,306, % /15 11,745, % /16 11,636,315 (0.92%) A-1

6 City of Lime Springs, Howard County, Iowa $385,000 General Obligation Loan Agreement Anticipation Project Note, Series 2015 Principal Taxpayers(1) January 1, 2014 Taxpayer Name Business/Service Taxable Valuation(2) MLJ Properties, LLC... Utility... $1,049,830 Dale and Jeanine Schwade Trust... Industrial Property ,920 A & K Feed & Grain Co. Inc.... Agriculture Exchange ,120 Interstate Power and Light Co.... Utility ,532 Casey s Marketing Company... Convenience Store ,850 Lime Springs Partners, LP... Commercial Property ,380 Cresco Union Savings Bank... Financial Institute ,390 Individual... Residential Property ,120 Individual... Residential Property ,030 Hawkeye Tri-Co Electric Cooperative... Utility ,868 Total... $4,696,040 Ten Largest Taxpayers as Percent of County s 2014 Taxable Valuation ($11,636,315) % Notes: (1) Source: The County. (2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. Debt Limit 2014 Actual Valuation of Property $18,483,176 Less: Military Exemption (64,820) Subtotal $18,418,356 Legal Debt Limit of 5%.05 Legal Debt Limit $ 920,917 Less: Outstanding G.O. Debt (500,000) Net Debt Limit $ 420,917 Statement of Bonded Indebtedness(1) (As of October 28, 2015) City Actual Valuation, January 1, $18,418,356 City Taxable Valuation, January 1, $11,636,315 Ratio Ratio Per Capita Applicable to City to City (2010 Pop. Total Percent Amount Actual Taxable 505) Direct Debt... $ 500, % $ 500, % 4.30% $ Total Direct Debt... $ 500, % $ 500, % 4.30% $ Overlapping Debt: Howard-Winneshiek Community School District... $ % $18,247, % 2.36% $ 0.00 Northeast Iowa Community College... 27,495, % 5,248, % 0.68% Howard County... 2,855, % 1,545, % 0.20% Total Net Direct and Overlapping Debt $50,131, % 6.49% $1, Per Capita Actual Value... $11, Per Capita Taxable Value... $ 7, Note: (1) Source: the City, Howard County, Howard-Winneshiek School District and Northeast Iowa Community College. A-2