Suite 608
531 Commercial Street
Waterloo, Iowa 50701
(319) 291-2077
FAX (319) 291-8628
Suite 4100
One North LaSalle Street
Chicago, Illinois, 60602
(312) 346-3700
FAX (312) 346-8833
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, 2015.
Date of Closing:
December 7, 2015
Issuance Amount:
$385,000
Purchaser:
Bankers’ Bank, Madison, Wisconsin
Purchase Price:
$381,150.00.
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
$385,000 ... 2018
1.450% 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.
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, 2014.
Financial statements of the City for prior years are available upon request of
the Purchaser.
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 52155-0296
(563) 566-4405
Financial Advisor:
Speer Financial, Inc., Waterloo, Iowa/Chicago, Illinois.
Contacts:
Larry Burger, Vice President
Maggie Burger, Vice President
A-1
Population Comparison(1)
City Percent The Percent The Percent
Year Population Change County Change State Change
1980 ... 476 n/a 11,114 n/a 2,913,808 n/a
1990 ... 438 (7.98%) 9,809 (11.74%) 2,776,785 (4.70%)
2000 ... 496 13.24% 9,932 1.25% 2,926,324 5.39%
2010 ... 505 1.81% 9,566 (3.69%) 3,046,355 4.10%
Note: (1) Source: U.S. Bureau of the Census.
Annual Average Unemployment Rates(1)
Calendar Howard State of United
Year County Iowa States
2010 ... 6.3% 6.3% 9.6% 2011 ... 5.4% 5.9% 8.9% 2012 ... 4.7% 5.2% 8.1% 2013 ... 4.7% 4.7% 7.4% 2014 ... 4.3% 4.3% 6.2% 2015(2)... 3.7% 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
2010 2011/12 $18,634,598 n/a
2011 2012/13 17,681,524 (5.11%)
2012 2013/14 17,721,081 0.22%
2013 2014/15 18,370,499 3.66%
2014 2015/16 18,418,356 0.26%
Taxable Valuations for the City
Levy Year Fiscal Year Amount Percent
2010 2011/12 $11,218,194 n/a
2011 2012/13 11,022,213 (1.75%)
2012 2013/14 11,306,309 2.58%
2013 2014/15 11,745,110 3.88%
City of Lime Springs, Howard County, Iowa
$385,000 General Obligation Loan Agreement Anticipation Project Note, Series 2015
A-2
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 ... 892,920 A & K Feed & Grain Co. Inc. ... Agriculture Exchange ... 822,120 Interstate Power and Light Co. ... Utility ... 527,532 Casey’s Marketing Company ... Convenience Store ... 349,850 Lime Springs Partners, LP ... Commercial Property ... 296,380 Cresco Union Savings Bank... Financial Institute ... 203,390 Individual ... Residential Property ... 191,120 Individual ... Residential Property ... 183,030 Hawkeye Tri-Co Electric Cooperative ... Utility ... 179,868 Total ... $4,696,040 Ten Largest Taxpayers as Percent of County’s 2014 Taxable Valuation ($11,636,315) .. ... 40.36%
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, 2014 ... $18,418,356 City Taxable Valuation, January 1, 2014... $11,636,315 Ratio Ratio Per Capita
Applicable to City to City (2010 Pop.
Total Percent Amount Actual Taxable 505)
Direct Debt ... $ 500,000 100.00% $ 500,000 2.71% 4.30% $ 990.10 Total Direct Debt ... $ 500,000 100.00% $ 500,000 2.71% 4.30% $ 990.10 Overlapping Debt:
