HomeMy Public PortalAboutResolutions-2018-005
PRELIMINARYOFFICIAL STATEMENTDATED JANUARY __, 2018
NIBEO
EW SSUEOOKNTRY NLY
BQN-R
ANK UALIFIEDONATED
In the opinion of Dorsey &Whitney LLP, Bond Counsel, according to present laws, rulings and decisions, and assuming compliance with certain covenants,
the interest on the Bonds isexcluded from gross income for federal income tax purposes. Interest on the Bonds is not 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, provided, however, such interest
is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on corporations (as
defined for federal income tax purposes). TheCitywill designate the Bonds as “qualified tax exempt obligations.” See “Tax Exemption” herein for
additional information.
CITY OF TIFFIN, IOWA
$1,000,000
General Obligation Annual Appropriation Fire Truck Acquisition Bonds,
Series 2018A
Dated Date:Date of Delivery (Estimated to be April 4, 2018) Interest Due: EachJune 1and December 1
CommencingDecember 1, 2018
AmountRateMaturityYieldPriceAmountRateMaturityYieldPrice
_____
$30,000_____%6/1/2019_____$50,000_____%_____%_____
6/1/2029
_____6/1/2020_________________________
40,00050,0006/1/2030
_____6/1/2021_________________________
40,00055,0006/1/2031
_____6/1/2022_________________________
40,00055,0006/1/2032
_____6/1/2023_________________________
40,00055,0006/1/2033
_____6/1/2024_________________________
40,00060,0006/1/2034
______________________________
45,0006/1/202560,0006/1/2035
______________________________
45,0006/1/202665,0006/1/2036
______________________________
45,0006/1/202770,0006/1/2037
______________________________
45,0006/1/202870,0006/1/2038
The Bonds maturing on June 1, 2026and thereafter are subject to redemption, in whole or in part, on June 1, 2025and on any date thereafter at a price of par
plus accrued interest.
TheGeneral Obligation Annual Appropriation Fire Truck Acquisition Bonds, Series 2018A(the “Bonds” or the “Issue”) are being issued bytheCity of
Tiffin,Iowa(the “City”or the “Issuer”) pursuant to Code of Iowa,Section 384.24A and Chapter 76, as amended, as well as all other laws amendatory
thereof and supplemental thereto, and in conformity with a resolution of the Cityauthorizing and approving the Loan Agreement and providing for the
issuance and securingthe payment of the Bonds. Proceeds of the Bonds will be used to purchase a fire truck and topay costs associated with issuance of the
Authority and Purpose
Bonds. See herein for additional information.
Interest is exempt only for federal income tax purposes.
The Bonds represent a general obligation of the City, subject to non-appropriation, payable from amounts on deposit in the City’s Debt Service Fund and the
Bond Fund created in the Issuance Resolution, and other revenues and funds, to the extent lawfully available for such purpose, all to the extent appropriated
by the City Council for the payment thereof. The Bonds do not constitute a continuing obligation of the City in any fiscal year beyond the fiscal year for
which funds have been appropriated for thepayment of this Bond. The Bonds shall not directly or indirectly obligate the City to make any payments thereon
during a fiscal year beyond that for which funds have been appropriated by the City Council for such fiscal year. In the event that the City Council of the
City does not budget and appropriate funds for any fiscal year in an amount sufficient to meet the payments of interest and principal due under the Bonds
during such fiscal year (a “non-appropriation”), the City’s obligation under the Bonds shall terminate and become null and void on the last day of the fiscal
year for which the necessary funds were appropriated. The City shall give notice to the Lender (as defined in the Issuance Resolution) of any non-
appropriation. Upon the occurrence ofany such non-appropriation, the City shall not be obligated to make payment from any source (including funds on
deposit in any funds created under the Issuance Resolution) of any amounts in respect of principal and interest on the Bonds beyond those amounts for which
an appropriation has previously been made, and the City shall not be liable to the holders of the Bonds for any other amountsdue under the Bonds or for any
costs, damages (including but not limited to consequential damages) or expenses incurred by the holders of the Bonds as a result of the exercise by the City
Security/Sources and Uses of Funds
of the foregoing right of non-appropriation. See herein for additional information.
Bondholders’ Risks
TheBonds involve certain investment risks. See herein for additional information.
Principal due with respect to theBonds is payable annually on June 1, commencing June 1, 2019. Interest due with respect to the Bonds is payable
semiannually onJune 1and December 1, commencing December 1, 2018. The Bonds will be registered in the name of Cede & Co., as nominee of The
Depository Trust Company, New York, NewYork. Individual purchases will be made in book-entry form only, in the principal amount of $5,000 or any
Description of the Bonds
whole multiple thereof. Purchasers will not receive physical delivery of Bonds. See “Book-Entry System” in herein for additional
information. The Paying Agent/Registrarwill be Bankers Trust Company, Des Moines, Iowa.
TABLE OF CONTENTS
Page
SUMMARY OF OFFERING .....................................................................................................................................2
PRINCIPAL CITY OFFICIALS ................................................................................................................................3
AUTHORITY AND PURPOSE .................................................................................................................................4
SECURITY/SOURCES ANDUSES OF FUNDS .....................................................................................................4
BONDHOLDERS’ RISKS .........................................................................................................................................5
DESCRIPTION OF THE BONDS .............................................................................................................................6
FULL CONTINUING DISCLOSURE ......................................................................................................................8
UNDERWRITING .....................................................................................................................................................9
FUTURE FINANCING..............................................................................................................................................9
BOND RATING .........................................................................................................................................................9
LITIGATION .............................................................................................................................................................9
CERTIFICATION ......................................................................................................................................................9
LEGALITY ................................................................................................................................................................9
TAX EXEMPTION ..................................................................................................................................................10
2013 PROPERTY TAX LEGISLATION ................................................................................................................11
GENERAL INFORMATION ..................................................................................................................................12
IOWA PROPERTY VALUATIONS; DEBT LIMITATIONS ................................................................................17
ECONOMIC AND FINANCIAL INFORMATION ................................................................................................19
SUMMARY OF DEBT AND DEBT STATISTICS ................................................................................................21
APPENDIX A – FORM OF BOND COUNSEL OPINION
APPENDIX B –CONTINUING DISCLOSURE CERTIFICATE
APPENDIX C – CITY’SFINANCIALSTATEMENT
THE BONDS ARE OFFERED, SUBJECT TO PRIOR SALE, WHEN, AS AND IF ACCEPTED BY THE UNDERWRITER(S) NAMED ON THE FRONT
COVER OF THIS OFFICIAL STATEMENT AND SUBJECT TO AN OPINION AS TOVALIDITY OF THE BONDS BY BOND COUNSEL. SUBJECT
TO APPLICABLE SECURITIES LAWS AND PREVAILING MARKET CONDITIONS, THE UNDERWRITER(S) INTENDS BUT IS NOT
OBLIGATED, TO AFFECTSECONDARY MARKET TRADING FOR THE BONDS. CLOSING DATE IS ESTIMATED TO BEAPRIL 4, 2018.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE
CONTAINED IN THIS OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERS MADE HEREBY, AND IF GIVEN OR MADE, SUCH
INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE CITYOR THE
UNDERWRITER(S). NEITHER THE DELIVERY OF THIS OFFICIAL STATEMENT NOR ANY SALE HEREUNDER SHALL UNDER ANY
CIRCUMSTANCES CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITYSINCE THE DATE
HEREOF. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION IN WHICH SUCH
OFFER OR SOLICITATION IS NOT AUTHORIZED, OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT
QUALIFIED TO DO SO, OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION. THE INFORMATION
SET FORTH HEREIN HAS BEEN OBTAINED FROMTHE CITY AND OTHER SOURCES WHICH ARE BELIEVED TO BE RELIABLE, BUT IT IS
NOT GUARANTEED AS TO ACCURACY OR COMPLETENESS BY, AND IS NOT TO BE CONSTRUED AS A REPRESENTATION BY, THE
UNDERWRITER(S).
WITHIN THE MEANING OF SECURITIES AND EXCHANGE COMMISSION RULE 15C2-12, THE INFORMATION INCLUDED IN THE
PRELIMINARY OFFICIAL STATEMENT IS DEEMED FINAL BY THE ISSUER AS OF ITS DATE AND IS ACCURATE AND COMPLETE IN ALL
MATERIAL RESPECTS, EXCEPT FOR THE OMISSION OF THE OFFERING PRICE(S), INTEREST RATE(S), SELLING COMPENSATION,
AGGREGATE PRINCIPAL AMOUNT, PRINCIPAL AMOUNT PERMATURITY, DELIVERY DATE, RATING(S), AND OTHER TERMS OF THE
ISSUE DEPENDING ON SUCH MATTERS, AND THE IDENTITY OF THE UNDERWRITER(S).
SUMMARY OF OFFERING
City of Tiffin,Iowa
$1,000,000
General Obligation Annual Appropriation Fire Truck Acquisition Bonds,Series 2018A
(Book-Entry Only)
AMOUNT -
$1,000,000
ISSUER -
City of Tiffin,Iowa(the “City” or the “Issuer”)
AWARD DATE -
March 6, 2018
-
UNDERWRITERNorthland Securities, Inc. (the “Underwriter”), 45 South 7th Street, Suite 2000, Minneapolis, Minnesota 55402, telephone: 612- 851-
5900 or 800-851-2920 and 6903 Vista Drive, West Des Moines, IA 50266, Telephone: 515-657-4675
TYPE OF ISSUE -
General Obligation Annual Appropriation Fire Truck Acquisition Bonds,Series 2018A(the “Bonds” or the “Issue”)
AUTHORITY, PURPOSE
& SECURITY -
TheGeneral Obligation Annual Appropriation Fire Truck Acquisition Bonds, Series 2018A(the “Bonds”)are being issued by theCity
of Tiffin,Iowa(the “City”) pursuant to Code of Iowa, Sections Section 384.24A and Chapter 76, as amended, as well as all other laws
amendatory thereof and supplemental thereto, and in conformity with a resolution of the Cityauthorizing and approving the Loan
Agreement(defined below)and providing for the issuance and securing the payment of the Bonds. Proceeds of the Bonds will be used
topurchase a fire truck and topay costs associated with issuance of the Bonds.The Bonds represent a general obligation of the City,
subject to non-appropriation, payable from amounts on deposit in the City’s Debt Service Fund and the Bond Fund created in the
Issuance Resolution, and other revenues and funds, to the extent lawfully available for such purpose, all to the extent appropriated by
the City Council for the payment thereof. The Bonds do not constitute a continuing obligation of the City in any fiscal year beyond
the fiscal year for which funds have been appropriated for the payment of this Bond. The Bonds shall not directly or indirectly
obligate the City to make any payments thereon during a fiscal year beyond that for which funds have been appropriated by theCity
Council for such fiscal year. In the event that the City Council of the City does not budget and appropriate funds for any fiscal year in
an amount sufficient to meet the payments of interest and principal due under the Bonds during such fiscal year (a “non-
appropriation”), the City’s obligation under the Bonds shall terminate and become null and void on the last day of the fiscal yearfor
which the necessary funds were appropriated. The City shall give notice to the Lender (as defined in the Issuance Resolution)of any
non-appropriation. Upon the occurrence of any such non-appropriation, the City shall not be obligated to make payment from any
source (including funds on deposit in any funds created under the Issuance Resolution) of any amounts in respect of principal and
interest on the Bonds beyond those amounts for which an appropriation has previously been made, and the City shall not be liable to
the holders of the Bonds for any other amounts due under the Bonds or for any costs, damages (including but not limited to
consequential damages) or expenses incurred by the holders of the Bonds as a result of the exercise by the City of the foregoing right
Authority and PurposeSecurity/Sources and Uses of Funds
of non-appropriation. See as well as herein for additional information.
LOAN AGREEMENT -
The Cityand Underwriter will enter into a Loan Agreement (the “Loan Agreement”) providing for a loan to the Cityin a principal
amount equal to the principal amount of the Bonds, and the Bonds will be issued in evidence of the City’s obligation to repay the
amounts payable under the Loan Agreement.
DATE OF ISSUE -
Date of Delivery (Estimated to be April 4, 2018)
INTEREST PAID -
Semiannually on each June 1and December 1, commencing December 1, 2018, to registered owners of the Bonds appearing of record
in the bond register as of the close of business on the fifteenthday (whether or not a business day) of the calendar month next
precedingsuch interest payment date (the “Record Date”).
MATURITIES -
6/1/2019$30,0006/1/2024$40,0006/1/2029$50,0006/1/2034$60,000
6/1/202040,0006/1/202545,0006/1/203050,0006/1/203560,000
6/1/202140,0006/1/202645,0006/1/203155,0006/1/203665,000
6/1/202240,0006/1/202745,0006/1/203255,0006/1/203770,000
6/1/202340,0006/1/202845,0006/1/203355,0006/1/203870,000
REDEMPTION -
The Bonds maturing on June 1, 2026and thereafterare subject to redemption, in whole or in part, on June 1, 2025and on any date
Description of the Bonds
thereafter at a price of par plus accrued interest.See herein for additional information.
BOOK-ENTRY -
The Bonds will be issued as fully registered and, when issued, will be registered in the name of Cede & Co., as nominee of The
Depository Trust Company, New York, New York, to which principal and interest payments will be made. Individual purchases will
be made in book-entry form only, in the principal amount of $5,000 or any whole multiple thereof. Purchasers will not receive
physical delivery of the Bonds.
PAYING AGENT/REGISTRAR -
Bankers Trust Company, Des Moines, Iowa
TAX DESIGNATIONS -
NOT Private Activity Bonds - The Bonds are not “private activity bonds” as defined in Section 141 of the Internal Revenue Code of
1986, as amended (the “Code”).
BankQualified Tax-Exempt Obligations - The Citywill designate the Bonds as “qualified tax-exempt obligations” for purposes of
Section 265(b)(3) of the Code.
LEGAL OPINION -
Dorsey & Whitney LLP, Des Moines, Iowa ("Bond Counsel")
BONDRATING -
The Citydid not apply for an underlying rating.
CLOSING -
Estimated to be April 4, 2018.
PRIMARY CONTACTS -
Doug Boldt,City Administrator,City of Tiffin, Iowa,319-545-2572
Jeff Heil, Vice President,Northland Securities, Inc., 641-750-5720
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CITY OF TIFFIN,IOWA
PRINCIPAL CITYOFFICIALS
Elected OfficialsCity Council
NamePositionTerm Expires
Steve BernerMayor12/31/2019
Jim BartelsCouncil Member 12/31/2021
Al HavensCouncil Member 12/31/2021
Eric Schnedler Council Member 12/31/2021
Mike RyanCouncil Member 12/31/2019
Peggy Upton Council Member 12/31/2019
Primary Contacts
Douglas Boldt City Administrator
Ashley Jay-PlatzCity Clerk
Bob Michael City Attorney
BOND COUNSEL
Dorsey & Whitney LLP
Des Moines,Iowa
UNDERWRITER
Northland Securities, Inc.
Minneapolis, Minnesota
and
West Des Moines, Iowa
– 3 –
AUTHORITY AND PURPOSE
The General Obligation Annual Appropriation Fire Truck Acquisition,Series 2018A(the “Bonds” or the
Bonds
“Issue”) are being issued by the City of Tiffin, Iowa (the “City” or the “Issuer”) pursuant to Code of Iowa,
Sections Section 384.24A and Chapter 76, as amended,as well as all other laws amendatory thereof and
supplemental thereto, and in conformity with a resolution of the Cityauthorizing and approving the Loan
Agreement and providing for the issuance and securing the payment of the Bonds. Proceeds of the Bonds will be
used to purchase a fire truck and to pay costs associated with issuance of the Bonds.
SECURITY/SOURCES ANDUSES OF FUNDS
Security
The Bonds are payable from the City’s Debt Service Fund and the Bond Fund established in the Issuance
Resolution, and other revenues and funds, to the extent lawfully available for such purpose, all of the foregoing
subject to the annual right of non-appropriation reserved by the City in any fiscal year. The Debt Service Fund is
solely funded from unlimited ad valorem taxes but the City may elect to abate the levy of unlimited taxes and the
amount of any such abatement may be funded with other sources of City revenues lawfully applied for the
payment of principal and interest on the Bonds.
The Issuance Resolution will authorize an ad valorem tax levy for each future fiscal year for which an
appropriation is made by the City Council in amounts necessary to retire the Bonds, when and as due, subject to
the foregoing annual right of non-appropriation. A certified copy of the Issuance Resolution will be filed with the
County Auditor of Johnson County, and upon appropriation by the City Council each year and certification by the
City Administrator as provided in the Issuance Resolution, the County Auditor shall levy and assess the direct ad
valorem tax in an amount equal to the amount so appropriated by the City Council and certified by the City
Administrator.
The Bonds do not constitute an obligation payable from a continuing annual levy of ad valorem taxes or a
multiple fiscal year direct or indirect debt or other financial obligation of the City.
The Bonds do not directly
or indirectly obligate the City to make any payments thereon during a fiscal year beyond those for which funds
have been appropriated by the City for such fiscal year for which the appropriation is made. The City has no
payment obligations under the Bonds other than amounts appropriated for payments due in the current fiscal year.
In the event that the City Council of the City does not budget and appropriate funds for any fiscal year in an
amount sufficient to pay the principal of and interest due on the Bonds during such fiscal year, the City’s
obligation under the Bonds shall terminate and become null and void on the last day of the fiscal year for which
the necessary funds were appropriated.
The principal of and interest on the Bonds are payable from funds on deposit in the Bond Fund to the extent
appropriated therefore by the City Council and from other funds appropriated from time to time by the City
Council for such purpose, all of which are pledged by the City to the payment of such principal and interest. The
City Council is authorized, without further notice, hearing or other proceedings, to budget and appropriate Debt
Service Tax Revenues and such other revenues of the City as may be lawfully applied for the payment of
principal and interest on the Bonds to annually make the payments of the principal of and interest on the Bonds.
The City presently intends to appropriate sufficient funds for each fiscal year to pay the principal of and interest
due on the Bonds during such fiscal year; provided however, that this expression of current intent does not create
and shall not be construed as creating a general, legal or enforceable obligation of the City to appropriate such
funds for any fiscal year, andthe decision to appropriate such funds for a fiscal year shall be made in accordance
with the City Council’s normal procedures for making decisions, and the then current City Council shall have the
final responsibility for making such decisions.
– 4 –
Sources and Uses of Funds
Following are the sources and uses of funds in connection with the issuance of the Bonds.
Sources of Funds
Par Amount of Bonds$1,000,000
Total Sources of Funds:$1,000,000
Uses of Funds
Deposit to Project Fund$975,000
Costs of Issuance/Underwriter’s Discount24,750
Rounding Amount250
Total Uses of Funds:$1,000,000
BONDHOLDERS’ RISKS
Purchase of the Bonds involves risks to the purchaser which should be considered prior to any purchaseof the
Bonds. This section discusses some of these risks, but it is not intended to be a comprehensive listing of all risks
associated with purchasing and owning the Bonds.
Right of Nonappropriation: Although the City has represented its present intention to appropriate funds sufficient
to pay principal of and interest on the Bonds in future fiscal years, the City has no continuing obligation to
appropriate money for the payment of interest on and principal of the Bonds. In the event that funds are not
budgeted and appropriated by the City in any fiscal year in an amount sufficient to meet the payments of interest
and principal due on the Bonds, the City's obligation to make payments of interest and principal thereon
terminates without penalty, and becomesnull and void on the last day of the fiscal year for which the necessary
funds were appropriated. Upon the occurrence of any such nonappropriation event, the City is not obligated to
make payment of any additional amounts in respect of principal of and interest on the Bonds beyond those funds
which have been so appropriated.
Limited Obligations: The obligations of the Issuer to pay principal of and interest on the Bonds are general
obligations of the Issuer payable from debt service tax revenues and other amounts lawfully available all to the
extent appropriated by the City Council in a fiscal year and subject to the right of the City Council not to
appropriate any debt service tax revenues or other amounts lawfully available in any fiscal year.
In the event of non-appropriation by the Issuer, the Issuer’s obligations under the Bonds shall terminate and
become null and void on the last day of the fiscal year for which necessary funds were appropriated and in no
event shall such obligations be payable from or be recourse against any properties, assets or revenues of the
Issuer, the state of Iowa or any other political subdivision of the state of Iowa and the bondholders shall not have
any recourse or right of action against the Issuer, the state of Iowa or any other political subdivision thereof on
account of such obligations or any liabilities, of whatsoever nature, arising in connection therewith.
Changes in Composition of City Council: All of the members of the City Council are elected to staggered four-
.
year terms of office. It is possible that, over time, the composition of the City Council could change. Such a
change could impact the City’s willingness to appropriate funds to pay the principal of andinterest on the Bonds,
particularly if the newly elected council individuals are less supportive of the purpose for which the Bonds are
being issued.
Bonds are NOT a Continuing Obligation of the City: The Bonds do not constitute a continuing obligation of the
City in any fiscal year beyond the fiscal year for which funds have been appropriated for the payment of the
– 5 –
Bonds. The Bonds shall not directly or indirectly obligate the City to make any payments thereon during a fiscal
year beyond those for which funds have been appropriated by the City Council for such fiscal year.
Lack of Rating: The Bonds are unrated. If an investor attempts to resell the Bonds, this absence of a rating could
adversely affect the market price and marketability thereof. No assurance can be given concerning the existence
of a secondary market for the Bonds.
Inability of Market/Lack of Secondary Market: No assurance can be given for the future marketability of the
Bonds.
Issuance of Additional Obligations for Repayment of Other Debt: In the future, the Citywill continue to have the
authority to issue additionalgeneral obligation debtsecured by the City’s pledge of its full faith and credit andits
unlimited ad valorem property taxing authority. To the extentthe City issues suchadditional general obligation
debt, future funding and tax rate pressures could impactCity Council determinations to appropriate, or not
appropriate, funds for thepayment of principal of and interest on the Bonds.
DESCRIPTION OF THE BONDS
Details of Certain Terms
The Bonds will be dated, as originally issued, as ofthe date of delivery (estimated to beApril 4, 2018), and will
be issued as fully registered Bondsin the denominations of $5,000 or any integral multiple thereof. Principal,
including mandatory redemptions on the Bonds, if applicable, will be payable annuallyJune 1, commencing June
1, 2019. Interest on the Bond will be payable semiannually on each June 1 and December 1, commencing
December 1, 2018. The Bonds when issued, will be registered in the name of Cede & Co. (the “Registered
Holder”), as nominee of The Depository Trust Company, New York, New York (“DTC”), the initial custodian for
the Bonds, to which principal and interest payments on the Bonds will be made so long as Cede & Co. is the
Registered Holder of the Bonds. See “Book-Entry System” in Description of the Bondsherein for additional
information. So long as the Book-Entry Only System is used, individual purchases of the Bonds will be made in
book-entry form only, in the principal amount of $5,000 or any integral multiple thereof (“Authorized
Denominations”). Individual purchasers (“Beneficial Owners”) of the Bonds will not receive physical delivery of
bond certificates, and registration, exchange, transfer, tender and redemption of the Bonds with respect to
Beneficial Owners shall be governed by the Book-Entry Only System.
So long as the Book-Entry Only System is used, payments from Cede & Co., as the RegisteredHolder, to the
Beneficial Owners shall be governed by the Book-Entry Only System. If the Book-Entry Only System is
discontinued, the principal of and premium, if any, on the Bonds will be payable upon presentation and surrender
at the offices of the Paying Agent and Bond Registrar or a duly appointed successor. Interest on the Bonds will be
paid by check or draft mailed by the Bond Registrar to the registered holders thereof as such appear on the
registration books maintained by the Bond Registrar as of the close of business on the fifteenthday (whether or
not a business day) of the calendar month next precedingsuch interest payment date (the “Record Date”).
Registration, Transfer and Exchange
So long as the Book-Entry Only System is used, payments from Cede & Co., as the RegisteredHolder, to the
Beneficial Owners shall be governed by the Book-Entry Only System. If the Book-Entry Only System is
discontinued, the Bonds may be transferred upon surrender of the Bonds at the principal office of the Bond
Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner or
his or her attorney duly authorized in writing. The Bonds, upon surrender thereof at the principal office of the
Bond Registrar may also be exchanged for other Bonds of the same series, of any authorized denominations
having the same form, terms, interest rates and maturities as the Bonds being exchanged. The Bond Registrar will
require the payment by the Bond holder requesting such exchange or transfer of any tax or governmental charge
required to be paid with respect to such exchange or transfer. The Bond Registrar is not required to (i) issue,
transfer or exchange any Bond during a period beginning at the opening of business fifteen days before any
selection of Bonds of a particular stated maturity for redemption in accordance with the provisions of the Bond
– 6 –
resolution and ending on the day of the first mailing of the relevant notice of redemption or (ii) to transfer any
Bonds or portion thereof selected for redemption.
Optional Redemption
The Bonds maturing onJune 1, 2026and thereafterare subject to redemption, in whole or in part, onJune 1, 2025
and on any date thereafter at a price of par plus accrued interest.If redemption is in part, the selection of the
amounts and maturities of the Bonds to be prepaid shall be at the discretion of the City.Notice of redemption
shall be given by written noticeto the registered owner of the Bonds not less than 30 days prior to such
redemption date.
Book-Entry System
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds
(the “Bonds”). The Bonds will be issued as fully-registered securities registered in the name of Cede & Co.
(DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC.
One fully-registered certificate will be issued for the Bonds, in the aggregate principal amount of such issue, and
will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized underthe New York
Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial
Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange
Act of 1934. DTC holds and provides asset servicing for over 3.6million issues of U.S. and non-U.S. equity
issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s
participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct
Participants of sales and other securities transactions in deposited securities, through electronic computerized
book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical
movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and
dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned
subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC,
National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered
clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also
available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and
clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules
applicable to its Participants are on file with the Securities and Exchange Commission. More information about
DTC can be found at www.dtcc.com and www.dtcc.org.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bonds
(“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners
will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to
receive written confirmations providing details of the transaction, as well as periodic statements of their holdings,
from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers
of ownership interests in the Bondsare to be accomplished by entries made on the books of Direct and Indirect
Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing
their ownership interests in Bonds, except in the event that use of the book-entry system for theBonds is
discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name
of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such
other DTC nominee do not affectany change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose
– 7 –
accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed
by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to
time.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless
authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC
mails an Omnibus Proxy to the Cityas soon as possible after the record date. The Omnibus Proxy assigns Cede &
Co.’s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct
Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Cityor Agent,
on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants
to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with Bonds
held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of
such Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be
in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co.
(or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the
Cityor Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect
Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at anytime by giving
reasonable notice to the Cityor Agent. Under such circumstances, in the event that a successor depository is not
obtained, certificates forthe Bonds are required to be printed and delivered.
The Citymay decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor
securities depository). In that event, certificates for the Bonds will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources
that the Citybelieves to be reliable, but the City of Tiffintakes no responsibility for the accuracy thereof.
FULL CONTINUING DISCLOSURE
In order to assist the Underwriter(s) in complying with SEC Rule 15c2-12 (the “Rule”), pursuant to a resolution
awarding the Issue and a Continuing Disclosure Certificate (the “Certificate”) to be executed by the Cityon or
before Bond closing, the Cityhas and will covenant for the benefit of holders of the Bonds to annually provide
certain financial and operating data, relating to the Cityto the Municipal Securities Rulemaking Board (“MSRB”)
in an electronic format prescribed by the MSRB, and to provide notices of the occurrence of certain events
enumerated in the Rule to the MSRB. The specific nature of the Certificate, as well as the information to be
contained in the annual report or the notices of material events is set forth in the Continuing Disclosure Certificate
in substantially the form attached hereto as Appendix B. The Cityhas previously entered into a continuing
disclosure undertaking in connection with its General Obligation Corporate Purpose and Refunding Bonds, Series
2012A. Although the City’s Annual Report containing financial information and operating data has been timely
th
filed by the June 30deadline for the past five years, the filing of the City’s audited financial statements due in
2014 and 2016 were eight days late. A failure by the Cityto comply with the Certificate will not constitute an
event of default on the Bonds (although holders will have an enforceable right to specific performance).
Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker,
– 8 –
dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary
market. Consequently, such a failure may adversely affectthe transferability and liquidity of the Bonds and their
market price. Please see Appendix B – Continuing Disclosure Certificate herein for additional information.
UNDERWRITING
The Bonds are being purchased from the Cityby Northland Securities, Inc.(the “Underwriter”).The Underwriter
willreceive total compensation of $ in connection with the purchase of the Bonds assuming all Bonds are
sold at the rates and yields set forthon the cover page of this Official Statement, which compensation is %
of the par value. The obligation to make such purchase is subject to certain terms and conditions, the approval of
certain legal matters by counsel and certain other conditions.
FUTURE FINANCING
The Citydoes not anticipate the need to finance any additional general obligation debt within the next three
months.
BONDRATING
The City did not apply for an underlying rating.
LITIGATION
As of the date of this Official Statement, the Cityis not aware of any threatened or pending litigation that
questions the organization or boundaries of theCityor the right of any of its officers to their respective offices or
in any manner questioning their rights and power to execute and deliver the Bonds or otherwise questioning the
validity of the Bonds.
CERTIFICATION
The Citywill furnish a statement to the effect that this Official Statement to the best of their knowledge and
belief, as of the date of sale and the date of delivery, is true and correct in all material respects, and does not
contain any untrue statements of a material fact or omit to state a material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not misleading.
The Cityhas always promptly met all payments of principal and interest on its indebtedness when due.
LEGALITY
Legal matters incident to the authorization, issuance and sale of the Bonds and with regard to the taxability of
interest thereon (see “Tax Exemption” herein) are subject tothe approving legal opinion of Dorsey & Whitney
LLP, Des Moines, Iowa ("Bond Counsel"). Signed copies of the opinion, dated and premised on law in effect as
of the date of original delivery of the Bonds, will be delivered to the Underwriter at the time of such original
delivery. The Bonds are offered subject to prior sale and to the approval of legality of the Bonds by Bond
Counsel. See Appendix A – Form of Bond Counsel Opinion.
The legal opinion to be delivered will express the professional judgment of Bond Counsel as of the date of closing
and by rendering a legal opinion Bond Counsel does not become an insurer or guarantor of the result indicated by
that expression of professional judgment or of the transaction or the future performance of the parties to the
transaction.
Bond Counsel has not been engaged, nor has it undertaken, to prepare or to independently verify the accuracy of
the Official Statement, including but not limited to financial or statistical information of the Cityand risks
associated with the purchase of the Bonds, except Bond Counsel has reviewed the information and statements
contained in the Official Statement under the “Security”portion of the “Security/Sources and Uses of Funds”
section, and “Tax Exemption”insofar as such statements contained under such captions purport to summarize
– 9 –
certain provisions of the Internal Revenue Code of 1986, the Bonds and any opinions rendered by Bond Counsel.
Bond Counsel has prepared the documents contained in Appendices A and B.
TAX EXEMPTION
Federal Income Tax Exemption
The opinion of Bond Counsel will state that under present laws and rulings, interest on the Bonds is excluded
from gross income for federal income tax purposes and is not an item of tax preference forpurposes of the federal
alternative minimum tax imposed on individuals and corporations under the Internal Revenue Code of 1986 (the
“Code”), provided, however that such interest must be taken into account in determining adjusted current earnings
for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income
tax purposes).
The opinions set forth in the preceding sentence will be subject to the condition that the Citycomply with all
requirements of the Codethat must be satisfied subsequent to the issuance of the Bonds in order that interest
thereon be, or continue to be, excluded from gross income for federal income tax purposes. Failure to comply
with certain such requirements may cause the inclusion of interest on the Bonds in gross income for federal
income tax purposes to be retroactive to the date of issuance of the Bonds. In the resolution authorizing the
issuance of the Bonds, the City will covenant to comply with all such requirements.
Bond
There may be certain other federal taxconsequences to the ownership of the s 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
BondBond
of the s. Prospective purchasers of the s should consult with their tax advisers as to such matters.
Proposed Changes in Federal Tax Law
From time to time, there are Presidential proposals, proposals of various federal committees, and legislative
proposals in the Congress that, if enacted, couldalter or amend the federal tax matters referred to herein or
adversely affect the marketability or market value of the Bonds or otherwise prevent holders of the Bonds from
realizing the full benefit of the tax exemption of interest on the Bonds. Further, such proposals may impact the
marketability or market value of the Bonds simply by being proposed. No prediction is made whether such
provisions will be enacted as proposed or concerning other future legislation affecting the tax treatment of interest
on the Bonds. In addition, regulatory actions are from time to time announced or proposed and litigation is
threatened or commenced which, if implemented or concluded in a particular manner, could adversely affect the
market value, marketability or tax status of the Bonds. It cannot be predicted whether any such regulatory action
will be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds would
be impacted thereby.
Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed legislation,
regulatory initiatives or litigation. The opinions expressed by Bond Counsel are based upon existing legislation
and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery
of the Bonds, and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any
proposed or pending legislation, regulatory initiatives or litigation.
Bank Qualification
BondCityBond
In the resolution authorizing the issuanceof the s, the will designate the s as “qualified tax
exempt obligations” within the meaning of Section 265(b)(3) of the Code relating to the ability of financial
institutions to deduct from income for federal income tax purposes a portion of the interest expense that is
allocable to tax-exempt obligations.
– 10 –
2013 PROPERTY TAX LEGISLATION
During the 2013 session the Iowa Legislature enacted, and the Governor signed, Senate File 295 (“SF 295”).
Among other things, SF 295 limits annual assessed value growth with respect to residential and agricultural
property from 4% to 3%, reduces as a rollback the taxable value applicable to commercial, industrial and railroad
property to 95% for the 2013 assessment year and 90% for the 2014 assessment year and all years thereafter, and
provides a partial exemption on telecommunications property. SF 295 also creates a new separate classification
for multi-residential properties which were previously taxed as commercial properties, and assigns an incremental
rollback percentage over several years for multi-residential properties such that the multi-residential rollback
determination will match that for residential properties in the 2022 assessment year.As a result of SF 295, local
governments expect to experience reductions in property tax revenues over the next several fiscal years. SF 295
includes state-funded replacement moneys for a portion of the expected reduction in property tax revenues to the
local governments, but such replacement funding is limited in both amount and duration of availability. There can
be no assurance the state-funded replacement moneys will be provided by the state, if at all, during the term the
Bonds remain outstanding.The Issuer does not expect the state replacement funding to fully address the property
tax reductions resulting from SF 295 during the term the Bonds remain outstanding.
– 11 –
CITY OF TIFFIN,IOWA
GENERAL INFORMATION
Location/Access/Transportation
The City of Tiffin, located in Johnson County, is situated in east central Iowa.The City lies approximately 8 miles
northwest of Iowa City, 23 miles south of Cedar Rapids, and 63 miles west of Davenport. Access is available via
Interstate Highways 80 and 380 and U.S. Highway 6.
Area
2,650 Acres
(4.14 Square Miles)
Population
1990 Census4602010 Census1,947
2000 Census975*3,150
2017 Estimate
Labor Force Data 1
Comparative average labor force and unemployment rate figures for 2017 (through November) and year-end
2016 are listed below. Figures are not seasonally adjusted and numbers of people are estimated by place of
residence.
November20172016
CivilianUnemploymentCivilianUnemployment
Labor ForceRateLabor ForceRate
Johnson County85,9552.5%84,5002.6%
Iowa1,688,1363.11,700,7003.7
2
Income Data
Comparative income levels are listed below for the City, the State of Iowa and the United States.
Tiffin, IowaState of IowaUnited States
Median Family Income$84,638$69,419$67,871
Per Capita Income29,36028,87229,829
City Government
Tiffin, incorporated in 1906, operates with a mayor-council form of government. It has a mayor elected for a two-
year term and five council members elected at large. Council members serve four-year overlapping terms. The
professional staff includes an administrator/clerk, deputy clerk, utility billing clerk, building official, public works
director, contracted city engineer, and contracted city attorney.
The City also operates the following business-type activities: water utility and sewer utility.
*
Source: City of Tiffin.
1
Iowa Workforce Development.
2
Source: 2012-2016American Community Survey, U.S. Census Bureau (www.factfinder.census.gov).
– 12 –
Bargaining Units/Labor Contracts
The labor unions representing certain City employee groups are shown below.
Employee GroupContract Expiration Date
AFSCMEJune 30, 2020
Employee Pension Programs
The City contributes to the Iowa Public Employees Retirement System (IPERS), which is a cost-sharing, multiple
employer defined benefit pension plan administered by the State of Iowa. IPERS provides retirement and death
benefits which are established by state statute to plan members and beneficiaries. IPERS issues a publicly
available financial report that includes financial statements and required supplementary information. The report
may be obtained by writing to IPERS, P.O. Box 9117, Des Moines, Iowa 50306-9117.
Most regular plan members are required to contribute 5.95% of their annual covered salary and the City is
required to contribute 8.93% of covered salary. Certain employees in special risk occupations and the City
contribute an actuarially determined contribution rate. Contribution requirements are established by state statute.
The City contributions to IPERS for the fiscal years 2009 through 2016 are as follows:
YearAmountYearAmount
2016$38,3742012$31,345
201534,237201130,212
201439,436201027,199
201335,942200918,339
Other Postemployment Benefits (OPEB)
In August 2004, the Governmental Accounting Standards Board (GASB) issued Statement No. 45, Accounting
and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, effective for the City’s
fiscal year 2010. Statement No. 45 requires accrual-based measurement, recognition and disclosure of other
postemployment benefits (OPEB) expense, such as retiree medical and dental costs, over the employees’ years of
service, along with the related liability, net of any plan assets. The City has no plans that would result in an OPEB
liability and, therefore, the City anticipates it will not incur any future explicit or implicit OPEB costs for its
employees and, therefore, no liability will be recorded.
Estimated Cash/Investment Balances as of January 2, 2018 (unaudited)
Fund
General Fund $ 918,847
Special Revenue Funds 600,804
Debt Service Fund 425,781
Tax Increment Financing Fund 541,098
Enterprise Funds 998,424
Total Estimated Cash/Investment Balances$3,484,954
– 13 –
Budget Summary
2017/182016/172015/16
Adopted BudgetRe-EstimatedActual
Revenues
Net Property Taxes$1,424,280$1,179,835$983,491
TIF879,683855,783791,612
Other CityTaxes57,69200
License/Permits327,500325,400324,524
Use of Money & Property33,39121,07444,220
Intergovernmental2,179,1501,560,152492,969
Charges for Fees & Services1,502,1001,443,9001,079,508
Special Assessments000
Miscellaneous181,00063,000879,655
Other Financing Sources8,784,108736,5645,589,386
Total Revenues$15,368,904$6,185,708$10,185,365
2017/182016/172015/16
Adopted BudgetRe-EstimatedActual
Expenditures:
Public Safety$ 319,034$ 313,235$ 306,408
Public Works294,086208,715406,739
Health & Social Services000
Culture & Recreation230,395227,882179,693
Community & Economic Development217,26167,60055,665
General Government319,991291,776401,911
Debt Service1,012,710942,760893,964
Capital Projects7,593,3713,205,0003,529,810
Enterprise3,052,557751,3701,652,296
Transfers Out1,484,108736,5641,059,190
Total Expenditures & Transfers Out$14,523,513$6,744,902$8,485,676
Revenue & Other Sources Over 845,391(559,194)1,699,689
(Under) Expenditures/Transfers Out
Beginning Fund Balance July 1$3,405,295$3,964,489$2,264,800
Ending Fund Balance
June 30$4,250,686$3,405,295$3,964,489
Residential Development
There were 165 single-family dwellings and no multi-family dwellings constructed in 2017.
The status of residential subdivisions under construction, constructed or planned within the past three years is as
follows:
TotalNumber ofRemaining
Subdivision Number of Lots/UnitsLots/Units
NameLots/UnitsSold/CompletedAvailable
Tiffin Heights East1183583
Tiffin Heights 16812840
Woodfield Ridge Parts 5, 6,7712546
Prairie West Development968610
Willow Ridge Development40040
– 14 –
In addition, construction has begun on the 250-acre Park Place Development, located directly off the new I-380
interchange leading into the City.This commercial, mixed use and residential subdivision is expected to consist
of approximately 117 acres or commercial use, 26 acres of mixed use, and 107 acres of residential development.
Industrial Park
The City currently has a 35-acre industrial park, located within the City.
Commercial/Industrial Development
Building construction and commercial/industrial development completed within the past twelve months have been
as follows:
Description
NameProduct/Serviceof Construction
Prairie West CommercialMedical/Day Care/VetOne and two-story wood frame construction
Willow Ridge Commercial Two Mixed Use BuildingsCommercial on ground floor with two floors
of residential above
Building Permits 1
Building permits issued for the past ten calendar years are as follows:
New Commercial/NewTotal
Industrial ResidentialNumber of Total
Number Number BuildingPermit
Yearof Permitsof PermitsPermitsValuation
2017
(as of 12/31/17)1165217$28,208,541
2016214622438,513,192
2015416021932,309,572
20145768143,279,063
2013477819,290,133
20121272076,036,270
201148513010,754,930
201028911195,522,230
20094899314,917,963
20081713615313,771,820
2
Banking/Financial Institutions
Banking/financial services in the City are provided by Solon State Bank.
Education
City residents are served by the Clear Creek Amana Community School District, which is comprised of the
communities of Amanda, Cosgrove, Oxford, North Liberty, and Tiffin.
1
Building permits do not include sign, plumbing and electrical, or mechanical permits.
2
Source: Federal Deposit Insurance Corporation (FDIC).
– 15 –
Major/Leading Employers 1
Major employers in the City are generally smaller, service-related business, and many City residents are
employed within the Iowa City metropolitan area. Following are selective major/leading employers in the nearby
City of Iowa City:
Number of
2
NameProduct/ServiceEmployees
University of IowaPublic University18,650
University of Iowa HospitalsHealthcare8,374
Iowa City Community School DistrictPublic Education2,346
ACT, Inc.Educational Programs1,632
Veteran’s Affairs Medical CenterHealthcare1,562
Mercy HospitalHealthcare1,559
Hy-VeeGrocery1,166
City of Iowa CityCity Government1,108
Pearson Educational MeasurementBusiness Consulting1,100
International Automotive Components Group Manufacturing750
Largest Taxpayers
Following are 10 of thelargest taxpayers within the City as provided by Johnson County:
Percent
2017/2018
Taxable Total Taxable
Valuation
Assessed
3
NameBusinessValue($120,190,545)
Mid-American EnergyUtility$3,787,6623.15%
Willow Ridge Development LLCResidential3,133,9442.61
Tiffin Affordable Housing LCResidential2,674,7682.23
Tiffin Affordable Housing II LCResidential1,845,5081.54
KGTFN LLCCommercial1,758,5101.46
Big Country Properties LLCCommercial1,606,6131.34
Brookside at Prairie West LLCMulti-residential1,604,7611.33
Rogue Development Company Inc.Commercial1,514,0701.26
Cowhorse Properties LLCCommercial1,340,2801.11
Clear Creek Mobile Home Park LLCMulti-residential1,330,3961.11
$20,596,51217.14%
1
Source: City of Iowa City.
2
Includes full-time, part-time and seasonal employees.
3
This value is after military exemption adjustment as well as before tax increment value adjustment and is used to compute all tax rates.
– 16 –
IOWA PROPERTY VALUATIONS; DEBT LIMITATIONS
Actual Value
The Codeof Iowa uses the terms “actual value,” “assessed value,” “market value” and “actual assessed value”
interchangeably. The actual value of all taxable property of a local jurisdiction, except utility property, is
determined by the local county or city assessor, who must be certified by the State Department of Revenue.
Utility property is assessed by the State Department of Revenue. The actual value of all property, with the
exception of agricultural property, is determined by establishing the fair and reasonable market value of the
property. The actual value of agricultural property is determined by its productivity and net earning capacity
pursuant to the Code of Iowa, Section 441.21 (1)(e). The State Departmentof Revenue and Finance periodically
adjusts inequities among the 99 county and 10 city assessing jurisdictions by issuing equalization orders pursuant
to the Code of Iowa, Sections 441.47 to 441.49. The actual value of a jurisdiction is the value utilized for
computing debt limitations of counties, municipalities, school districts, and other political subdivisions.
Taxable Value
The taxable value of counties, municipalities, school districts, or other political subdivisions is determined by
adjusting or “rolling back” the assessed value of residential property, agricultural property, commercial property,
industrial property, and other classes of property by applying percentages certified to the county auditors of each
county by the Director of Revenue no later than November 1 of each fiscal yearpursuant to the Code of Iowa,
Section 441.21(10). These adjustments colloquially referred to as “rollbacks” are meant to provide an appropriate
balance of market value fluctuation that might disproportionately impact the property tax burden placed on classes
of property affected by those fluctuations. Following are classes of property that were adjusted by the
corresponding percentages for 2017assessed valuations collected in 2018/2019:
Rollback
Agricultural (excluding agricultural dwellings)54.4480%
Residential (rural and urban including agricultural dwellings)55.6209
Multi-Residential78.7500
Commercial (excluding machinery and equipment)90.0000
Industrial (excluding machinery and equipment)90.0000
Railroad90.0000
UtilityN/A
Tax Levies and Collections
Property is assessed on a calendar year basis and valued as of January 1 of each year. Property owners are notified
by the following April 15 if there has been any increase or decrease in valuation of the property. Assessments as
of January 1, 2017are used to determine tax levies and tax rates for collection in the fiscal year beginning July l,
2018.
Taxes are collected on a fiscal year running July 1 through June 30. A county collects all tax levies within its
jurisdiction and remits, by the 10th of each month, the amount collected through the last day of the preceding
month to underlying units of government. Property tax payments are made at the office of each county treasurer in
full or one-half by September 30 and March 31, pursuant to the Code of Iowa, Sections 445.36 and 445.37. Where
the first half of any property tax has not been paid by October 1, such installment becomes delinquent. If the
second installment is not paid, it becomes delinquent on April 1. Delinquent taxes are subject to a penalty rate of
1.5% per month.
If taxes are not paid when due, the property may be offered at the regular tax sale on the third Monday of June
following the delinquency date. Purchasers at the tax sale must pay an amount equal to the taxes, special
assessments, interest and penalties due on the property, and funds so received are applied to the payment of taxes.
A property owner may redeem from the regular tax sale, but failing redemption within two years the tax sale
– 17 –
purchaser is entitled to a deed which in general conveys the title free and clear of all liens except future
installment of taxes and assessments.
For properties that have previously been advertised, offered for one year or more, and remain unsold for want of
bidders, a public sale is held which results in the county acquiring a tax sale certificate on such properties. After
twelve months’ time, and after proper notification of any interested parties, the county is issued the deed. The
county may then resell the property for whatever price the market will bear and the proceeds of the sale are
credited to the county general fund. The sale eliminates liens of past due installments of taxes and assessments but
the property remains subject to future installments.
DEBT LIMITATIONS
Article XI, Section 3 of the Constitution of the State of Iowa limits the amount of debt outstanding at any time of
any county, municipality, school district or other political subdivision to no more than 5% of the actual value, as
shown by the last certified state or county tax list, of all taxable property within such county, municipality, school
district or other political subdivision. For the purpose of computing the debt limitation, the term “actual value” is
the actual value of taxable property without application of any percentage reduction or rollback, and after
deduction of the military exemption on taxable property.
(Remainder of page intentionally left blank)
– 18 –
CITY OF TIFFIN,IOWA
1
ECONOMIC AND FINANCIAL INFORMATION
Valuations 2
2017for FY2017for FY
2018/2019 2018/2019
100% Actual Taxable Value
(As of January 1, 2017)Value(With Rollback)
Residential$224,770,704$112,947,480
Agricultural Land & Building1,553,307845,699
Commercial20,565,06817,144,398
Railroad361,187325,068
Multi-residential8,250,8306,497,534
Utilities (with Gas & Electric)15,971,0335,461,106
Gross Valuation$271,472,129$143,221,285
Less Military Exemption(127,788)(127,788)
Total Valuation$271,344,341 3
$143,093,497
Add Captured Tax Increment Value$40,843,532$40,843,532
Net Valuation$312,187,873$183,937,029
Valuation Trends
Valuation Trends over the past tenyears have been as follows:
100%TaxableCapturedTotal
ActualValuation
AssessmentFiscal YearTax IncrementTaxable
45
YearTax LeviesValue(With Rollback)ValueValue
20172018/2019$312,187,873$143,093,497$40,843,532$183,937,029
20162017/2018254,585,107120,190,54531,598,598151,789,143
20152016/2017214,116,22294,736,11930,513,120125,249,239
20142015/2016182,147,17778,922,55028,344,505107,267,055
20132014/2015172,091,92570,936,04830,382,128101,318,176
20122013/2014159,158,99062,058,80030,515,84792,574,647
20112012/2013153,054,52761,072,83726,570,27887,643,115
20102011/2012142,166,99333,986,44144,595,47778,581,918
20092010/2011134,284,44729,753,38543,188,37672,941,761
20082009/2010124,248,92226,647,43740,736,33967,383,776
1
Property valuations, tax rates and tax levies and collections are provided by the Iowa Department of Management unless otherwise
noted.
2
January 1, 2017valuations for taxes payable July 1, 2018to June 30, 2019. Valuations are estimates and are expected to be certified on
or about July 1, 2018.
3
The $143,093,497Taxable Value after rollback and less military exemption is used to computeall tax rates with the exception of debt
service and excludes $40,843,532 of captured tax increment value. The Taxable Value of $183,937,029 is used to compute the tax rate
for debt service.
4
100% Actual Valuations, before rollback, are after military exemption and captured tax increment value adjustments.
5
Taxable Valuations, with rollback, are after the military exemption and before captured tax increment value adjustments.
– 19 –
Breakdown of Valuations
2018/2019 100% Actual Value (before military exemption and tax increment adjustments):
Residential$ 224,770,704 82.80%
Agricultural Land & Buildings 1,553,307 0.57
Commercial 20,565,068 7.58
Multi-residential 8,250,830 3.04
Utilities (with Gas & Electric) 15,971,033 5.88
Railroad 361,187 0.13
Totals:$ 271,472,129 100.00%
2018/2019 Taxable Value with Rollback (before military exemption and tax increment adjustments):
Residential$ 112,947,480 78.86%
Agricultural Land & Buildings 845,699 0.59
Commercial 17,144,398 11.97
Multi-residential 6,497,534 4.54
Utilities (with Gas & Electric) 5,461,106 3.81
Railroad 325,068 0.23
Totals:$ 143,221,285 100.00%
1
Tax Rates
Following are tax rates per thousand dollar valuations for the past five-assessable/collection years:
Levy Year/2012 for FY2013 for FY2014 for FY2015 for FY2016for FY
Collection Year2013/142014/152015/162016/172017/18
Johnson County (county-wide)6.737126.741686.903376.771406.85143
City of Tiffin10.6235911.9717711.8030911.8026511.80227
Clear Creek Amana CSD15.3105515.2651615.8208416.9541916.75949
Kirkwood Community College (MEA X)1.064731.057541.061251.080481.13174
County Assessor.26472.30944.35488.29377.31448
Ag Extension.08160.08119.08129.07781.07585
State.00330.00330.00330.00330.00310
Totals:34.0856135.4300836.0280236.9836036.93836
Tax Levies and Collections
TotalTotalCollections as
Tax LevyTaxPercent of
Levy YearCollection Year(in Dollars)CollectionsCurrent Levy
20162017/2018$2,364,844(In Process of Collection)
20152016/20172,035,6182,031,25399.79%
20142015/20161,730,7881,755,579101.43
20132014/20151,670,1461,678,188100.48
20122013/20141,522,8851,488,07897.71
1
The 2017 for FY 2018/2019 Tax Rates are not available until approximately July1, 2018, six months after the 2018/2019valuations are
available from the State of Iowa Department of Valuations.
– 20 –
SUMMARY OF DEBT AND DEBTSTATISTICS
Statutory Debt Limit
Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any
county, municipality or other political subdivision to no more than five percent (5%) of the actual value of all
taxable property within the corporate limits, as taken from the last certified state and county tax list. The debt
limit for the County, based on its most recent certified (2016) valuation, is as follows:
Computation of Legal Debt Limit as of March 2, 2018:
2016\[2017/2018\] Gross Valuation of 100% Actual Value of Property$ 223,105,037
Less Military Exemption( 118,528)
Add Captured Tax Increment Value 31,598,598
Actual Value for Debt Limit Calculation$ 254,585,107
Times 5% of Actual Value for Debt Limit Calculation x .05
Legal Debt Limit$ 12,729,255
Outstanding bonds applicable to debt limit:
$6,100,000 G.O. Corporate Purpose and Refunding Bonds, Series 2012A $ 3,900,000
(1)
$4,430,000 G.O. Annual Appropriation Corporate Purpose Bonds, Series 2015A 310,000
$5,140,000 G.O. Corporate Purpose Bonds, Series 2017A 5,140,000
(1)
$1,000,000 G.O. Annual App. Fire Truck Acquisition Bonds, Series 2018A (This Issue) 0
(2)
TIF Rebate Agreements 95,189
Totaldebt applicable to debt limit$ 9,445,189
Legal Debt Margin$ 3,284,066
(Remainder of page left intentionally blank)
(1)
Only the annual appropriation debt coming due in the current year applies to the City’s statutory debt limit.
(2)
These rebate agreementscount against the City’s statutory debt limit to the extent of the current fiscal year rebateamount.
– 21 –
CITY OF TIFFIN, IOWA
GENERAL OBLIGATION DEBT PAYABLE FROM TAXES
(As of March 2, 2018)
Purpose:G.O.G.O.
CorporateCorporate
Purpose andPurpose
RefundingBonds,
Bonds,Series
Series 2012A2017A
Dated:
09/01/12 12/20/17
Original Amount:
$6,100,000$5,140,000
Maturity:TOTALTOTAL
1-Jun 1-Jun
Interest Rates:PRINCIPAL:PRIN & INT:
1.00-2.50% 3.00-3.15%
2018$450,000$0$450,000$667,3632018
2019460,000275,000735,000950,6052019
2020390,000285,000675,000876,0782020
2021395,000295,000690,000875,8992021
2022405,000300,000705,000874,4682022
2023410,000310,000720,000872,1682023
2024335,000320,000655,000790,0162024
2025345,000330,000675,000792,6982025
2026350,000340,000690,000789,4802026
2027360,000350,000710,000790,4302027
20280360,000360,000425,2802028
20290370,000370,000424,3302029
20300385,000385,000428,0052030
20310395,000395,000426,3052031
20320405,000405,000424,3052032
20330420,000420,000426,6152033
$3,900,000$5,140,000$9,040,000$10,834,043
(1)(2)
NOTE: 74% OF GENERAL OBLIGATION DEBT PAYABLE FROM TAXES WILL BE RETIRED WITHIN TEN YEARS.
(1)These bonds current refunded $219,834.83 of the $488,685 General Obligation Sewer Improvement Bond, Series 1999A, dated September
30, 1999. Maturities 2013 through 2019, inclusive, were called for redemption on September 12, 2012, at a price of par plus accrued interest.
The bonds also current refunded $245,045.25 of the $590,000 General Obligation Sewer Improvement Bond, Series 1999B, dated September
30, 1999. Maturities 2013 through 2019, inclusive, were called for redemption on September 12, 2012, at a price of par plus accrued interest.
In addition, the bonds current refunded $820,851 of the $1,310,000 General Obligation Water Improvement Bond, Series 2003A, dated December
1, 2003. Maturities 2013 through 2023, inclusive, were called for redemption on September 12, 2012, at a price of par plus accrued interest.
(2)Payments reflect mandatory sinking fund payments
– 22 –
CITY OF TIFFIN, IOWA
GENERAL OBLIGATION DEBT PAYABLE FROM ANNUAL APPROPRIATIONS
(As of March 2, 2018, Plus This Issue)
This Issue
Purpose:G.O.G.O.
AnnualAnnual
AppropriationAppropriation
Corporate Fire Truck
PurposeAcquisition
Bonds,Bonds,
Series Series
2015A2018A
Dated:04/01/15 04/04/18
Original Amount:$4,430,000$1,000,000
Maturity:1-Jun 1-Jun TOTALTOTAL
Interest Rates:2.00-3.55% PRINCIPAL:PRIN & INT:
2018$310,000$0$310,000$438,7792018
2019315,00030,000345,000479,5282019
2020325,00040,000365,000491,6652020
2021330,00040,000370,000487,8132021
2022340,00040,000380,000488,2182022
2023345,00040,000385,000482,8582023
2024355,00040,000395,000481,5332024
2025365,00045,000410,000484,2412025
2026380,00045,000425,000486,0532026
2027390,00045,000435,000482,0302027
2028405,00045,000450,000482,1462028
2029050,00050,00073,5382029
2030050,00050,00071,6502030
2031055,00055,00074,6012031
2032055,00055,00072,4152032
2033055,00055,00070,1882033
2034060,00060,00072,8002034
2035060,00060,00070,2652035
2036065,00065,00072,5932036
2037070,00070,00074,6552037
2038070,00070,00071,5582038
$3,860,000$1,000,000$4,860,000$6,009,122
(1)(1)
NOTE: 79% OF GENERAL OBLIGATION ANNUAL APPROPRIATION DEBT PAYABLE FROM
TAXES WILL BE RETIRED WITHIN TEN YEARS.
(1)These bonds are subject to an annual determination by the City Council and are a general obligation of the City only
in the current fiscal year for which an annual appropriation has been made. The bonds count against the City's
statutory debt limit to the extent of the current fiscal year principal amount.
– 23 –
CITY OF TIFFIN, IOWA
REVENUE/SPECIAL OBLIGATION DEBT
(As of March 2, 2018)
Pupose:SewerWater
RevenueRevenue
Bond,Bond,
SeriesSeries
1999C2003B
Dated:09/30/99 07/09/03
Original Amount:$521,315$340,000
Maturity:1-Jun 1-Jun TOTALTOTAL
Interest Rates:1.75% 1.75% PRINCIPAL:PRIN & INT:
2018$36,000$19,000$55,000$58,3132018
201937,00020,00057,00059,2672019
2020020,00020,00021,5252020
2021021,00021,00022,1162021
2022022,00022,00022,6882022
2023022,00022,00022,2482023
$73,000$124,000$197,000$206,156
(1) (2) (4)(2) (3) (4)
NOTE: 100% OF REVENUE/SPECIAL OBLIGATION DEBT WILL BE RETIRED WITHIN TEN YEARS.
(1)This bond is payable from net revenues of the municipal sewer utility system and shall be a first lien on the future revenues of the sewer
utility system after payment of expenses including the necessary cost of operating, maintaining, repairing and insuring the sewer utility.
The full faith and credit of the City of Tiffin is not pledged to the payment of principal and/or interest on the bond.
(2)These bonds were purchased through a private placement agreement with the State Revolving Fund (SRF). The bonds are excluded for
computation against net debt limitations for continuing disclosure (Rule 15c2-12) purposes.
(3)This bond is payable from net revenues of the municipal water utility system and shall be a first lien on the future revenues of the water
utility system after payment of expenses including the necessary cost of operating, maintaining, repairing and insuring the water utility.
The full faith and credit of the City of Tiffin is not pledged to the payment of principal and/or interest on the bond.
(4)Effective September 28, 2012, the Iowa State Revolving Fund reduced the interest rate on 20-year loans from 3% to 1.75%.
– 24 –
*
Indirect Debt
2018/2019
2018/2019 Taxable PercentageUnderlying
Taxable Value
Applicable Outstanding Share
(1) (1)
IssuerValuein Cityin CityDebtof Debt
Johnson County $8,113,469,216$143,093,4971.76%$5,670,000$99,792
Clear Creek Amana CSD916,212,332143,093,49715.6268,790,00010,744,998
24,872,909,955143,093,497(2)
Kirkwood CC (MEA X)0.5837,755,000218,979
Total Underlying Debt:$11,063,769
*
Only those taxing jurisdictions with general obligation debt outstanding are included. Debt figures do not include non-general
obligation debt, short-term general obligation debt, or general obligation tax/aid anticipation certificates of indebtedness. General
obligation debt figures are as of March 2, 2018and were obtained from information provided on the EMMA website and from the
StateTreasurerof Iowa website, unless otherwise noted.
(1)
Taxable Value includes military as well as gas and electric utility adjustments but excludes any tax increment adjustment.
(2)
Kirkwood Community College (MEA X) has bond indebtedness of $110,057,559. Job training certificates in the amount of
$33,665,000, General Fund Lease Certificates in the amount of $22,010,000, and other capital loan notes are excluded from above
since the bonds are payable from revenues to be derived from the new jobs credit program and lease payments, respectively.
– 25 –
Direct Debt
Bonds secured primarily by tax levies $ 9,040,000
Bonds secured primarily by annual appropriations (Includes This Issue) 4,860,000
Total Direct Debt 13,900,000
Add taxpayers’ share of indirect debt 11,063,769
Direct and Indirect Debt$ 24,963,769
Revenue/Lease Debt
$521,315 Sewer Revenue Bond, Series 1999C $ 73,000
$340,000 Water Revenue Bond, Series 2003B $ 124,000
Facts for Ratio Computations
1
2018/2019100% Actual Value$312,187,873
1
2018/2019Taxable Value with Rollback183,937,029
Population (2017 Estimate)3,150
Debt Ratios
DirectIndirectDirect and
DebtDebtIndirect Debt
To Actual Value4.45%3.54%7.99%
To Taxable Value7.76%6.01%13.77%
Per Capita$4,412$3,512$7,924
1
After tax increment and military exemption adjustments.
– 26 –
APPENDIX A
Form of Bond Counsel Opinion
– 27 –
*(Form of Bond Counsel Opinion)
We hereby certify that we have examined certified copies of the proceedings (the
“Proceedings”) of the City Council of the City of Tiffin (the “Issuer”), in Johnson County, State
of Iowa, passed preliminary to the issue by the Issuer of its General Obligation Annual
Appropriation Fire Truck Acquisition Bonds, Series 2018A (the “Bonds”) in the amount of
$1,000,000, dated April 4, 2018, in the denomination of $5,000 each, or any integral multiple
thereof, in evidence of the Issuer’s obligation under a certain loan agreement (the “Loan
Agreement”), dated as of April 4, 2018, and pursuant to a resolution (the “Resolution”) of the
Issuer adopted on March 20, 2018. The Bonds mature on June 1 in each of the respective years
and in the principal amounts and bear interest payable semiannually, commencing December 1,
2018, at the respective rates as follows:
DatePrincipalInterest RateDatePrincipalInterest Rate
2019$30,000____%2029$50,000____%
2020$40,000____%2030$50,000____%
2021$40,000____%2031$55,000____%
2022$40,000____%2032$55,000____%
2023$40,000____%2033$55,000____%
2024$40,000____%2034$60,000____%
2025$45,000____%2035$60,000____%
2026$45,000____%2036$65,000____%
2027$45,000____%2037$70,000____%
2028$45,000____%2038$70,000____%
Principal of the Bonds maturing in the years 2026 to 2038, inclusive, are subject to optional
redemption prior to maturity on June 1, 2025, or on any date thereafter on terms ofpar plus
accrued interest, and principal of the Bonds is subject to mandatory redemption at the times and
on the terms as set forth in the Resolution.
Based upon our examination, we are of the opinion, as of the date hereof, that:
1.The Proceedings show lawful authority for such issue under the laws of the State
of Iowa.
2.The Bonds are general obligations of the Issuer, payable from amounts on deposit
in the Issuer’s Debt Service Fund and the Bond Fund created in the Resolution, and other
revenues and funds, to the extent lawfully available for such purpose, all of the foregoing subject
to non-appropriation by the Issuer in any fiscal year. The Bonds do not constitute a continuing
obligation of the Issuer in any fiscal year beyond those fiscal years forwhich funds have been
Page 2
appropriated for the payment of the Bonds by the City Council and do not constitute debt within
the meaning of any constitutional or statutory debt limitation.
3.FUNDS FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON THE
BONDS ARE SUBJECT TO NON-APPROPRIATION BY THE ISSUER ANNUALLY AS
DESCRIBED IN THE RESOLUTION, AND THERE IS NO CONTINUING OBLIGATION
ON THE PART OF THE ISSUER TO APPROPRIATE FUNDS SUFFICIENT TO MAKE
PAYMENTS OF PRINCIPAL AND INTEREST ON THE BONDS BEYOND ANY FISCAL
YEAR FOR WHICH FUNDS HAVE BEEN APPROPRIATED.
4.The interest on the Bonds is excluded from gross income for federal income tax
purposes and is not an item of tax preference for purposes and is not treated as a preference item
in calculating the federal alternative minimum tax imposed under the Internal Revenue Code of
1986 (the “Code”); it should be noted, however, that for the purpose of computing the alternative
minimum tax imposed on corporations for taxable years beginning before January 1, 2018, such
interestis taken into account in determining adjusted current earnings. The opinions set forth in
the preceding sentence are subject to the condition that the Issuer comply with all requirements
of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest
thereon be, or continue to be, excluded from gross income for federal income tax purposes. The
Issuer has covenanted to comply with each such requirement. Failure to comply with certain of
such requirements may cause the inclusion of interest on the Bonds in gross income for federal
income tax purposes to be retroactive to the date of issuance of the Bonds.
5.The Bonds are “qualified tax-exempt obligations” within the meaning of
Section265(b)(3) of the Code. The opinion set forth in the preceding sentence is subject to the
condition that the Issuer comply with all requirements of the Code that must be satisfied
subsequent to the issuance of the Bonds in order that the Bonds be, or continue to be, qualified
tax-exempt obligations. The Issuer has covenanted to comply with each such requirement.
We express no opinion regarding other federal tax consequences arising with respect to
the Bonds.
The rights of the owners of the Bonds and the enforceability thereof may be subject to
bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’
rights heretofore or hereafter enacted to the extent constitutionally applicable, and their
enforcement may also be subject to the exercise of judicial discretion in appropriate cases.
DORSEY& WHITNEY LLP
*This form of bond counsel opinion is subject to change pending the results of the sale of the Bonds
contemplated herein.
APPENDIX B
Continuing Disclosure Certificate
– 28 –
Tiffin/436989-24/CDC
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and
delivered by the City of Tiffin, Iowa (the “Issuer”), in connection with the issuance of
$1,000,000 General Obligation Annual Appropriation Fire Truck Acquisition Bonds, Series
2018A (the “Bonds”), dated April 4, 2018. The Bonds are being issued pursuant to a resolution
of the Issuer approved on March 20, 2018 (the “Resolution”). The Issuer covenants and agrees
as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being
executed and delivered by the Issuer for the benefit of the Holders and Beneficial Owners of the
Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-
12.
Section 2. Definitions. In addition to the definitions set forth in the Resolution,
which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined
in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the Issuer
pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.
“Beneficial Owner” shall mean any person which (a) has the power, directly or
indirectly, to vote or consent with respect to, or to dispose of ownership of, any
Bonds (including persons holding Bonds through nominees, depositories or other
intermediaries), or (b) is treated as the owner of any Bonds for federal income tax
purposes.
“Dissemination Agent” shall mean the Dissemination Agent, if any, designated
in writing by the Issuer and which has filed with the Issuer a written acceptance of
such designation.
“EMMA” shall mean the MSRB’s Electronic Municipal Market Access system
available at http://emma.msrb.org.
“Holders” shall mean the registered holders of the Bonds, as recorded in the
registration books of the Registrar.
“Listed Events” shall mean any of the events listed in Section 5(a) of this
Disclosure Certificate.
“Municipal Securities Rulemaking Board” or “MSRB” shall mean the Municipal
Securities Rulemaking Board, 1300 I Street NW, Suite 1000, Washington, DC 20005.
“Participating Underwriter” shall mean any of the original underwriters of the
Bonds required to comply with the Rule in connection with offering of the Bonds.
-1-
Tiffin/436989-24/CDC
“Rule” shall mean Rule 15c2-12 adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as the same may be amended
from time to time.
“State” shall mean the State of Iowa.
Section 3.Provision of Annual Reports.
(a)Not later than June 30 (the “Submission Deadline”) of each year following the
end of the 2017-2018fiscal year, the Issuer shall, or shall cause the Dissemination Agent (if
any) to, file on EMMA an electronic copy of its Annual Report which is consistent with the
requirements of Section 4 of this Disclosure Certificate in a format and accompanied by such
identifying information as prescribed by the MSRB. The Annual Report may be submitted as a
single document or as separate documents comprising a package, and may cross-reference
other information as provided in Section 4 of this Disclosure Certificate; provided that the
audited financial statements of the Issuer may be submittedseparately from the balance of the
Annual Report and later than the Submission Deadline if they are not available by that date. If
the Issuer’s fiscal year changes, it shall give notice of such change in the same manner as for a
Listed Event under Section5(c), and the Submission Deadline beginning with the subsequent
fiscal year will become one year following the end of the changed fiscal year.
(b)If the Issuer has designated a Dissemination Agent, then not later than fifteen
(15) business days prior to the Submission Deadline, the Issuer shall provide the Annual
Report to the Dissemination Agent.
(c)If the Issuer is unable to provide an Annual Report by the Submission Deadline,
in a timely manner thereafter, the Issuer shall, or shall cause the Dissemination Agent (if any)
to, file a notice on EMMA stating that there has been a failure to provide an Annual Report on
or before the Submission Deadline.
Section 4.Content of Annual Reports. The Issuer’s Annual Report shall contain or
include by referencethe following:
The Audited Financial Statements
(a)of the Issuer for the prior fiscal
year, prepared in accordance with generally accepted accounting principles
promulgated by the Financial Accounting Standards Board as modified in accordance
with the governmental accounting standards promulgated by the Governmental
Accounting Standards Board or as otherwise provided under State law, as in effect from
time to time, or, if and to the extent such audited financial statements have not been
prepared in accordance with generally accepted accounting principles, noting the
discrepancies therefrom and the effect thereof. If the Issuer’s audited financial
statements are not available by the Submission Deadline, the Annual Report shall
contain unaudited financial information (which may include any annual filing
information required by State law) accompanied by a notice that the audited financial
statements are not yet available, and the audited financial statements shall be filed on
EMMA when they become available.
-2-
Tiffin/436989-24/CDC
(b)Tables, schedules or other information contained in the official statement
for the Bonds, under the following captions:
Economic and Financial Information:
Valuations
Tax Rates
Tax Levies and Collections
Summary of Debt and Debt Statistics
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Issuer or related public entities,
which are available on EMMA or are filed with the Securities and Exchange Commission. If
the document included by reference is a final official statement, it must be available on
EMMA. The Issuer shall clearly identify each such other document so included by
reference.
Section 5.Reporting of Significant Events
(a)Pursuant to the provisions of this Section 5, the Issuer shall give, or
cause to be given, notice of the occurrence of any of the following events with respect
to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3)Unscheduled draws on debt service reserves reflecting financial
difficulties.
(4) Unscheduled draws on credit enhancements reflecting financial
difficulties.
(5) Substitution of credit or liquidity providers, or their failure to perform.
(6) Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue (IRS
Form 5701-TEB) or other material notices or determinations with respect to the
tax status of the security, or other material events affecting the tax status of the
security.
(7) Modifications to rights of security holders, if material.
(8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the
securities, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the obligated
person.
-3-
Tiffin/436989-24/CDC
Note to paragraph (12): For the purposes of the event identified in subparagraph
(12), the event is considered to occur when any of the following occur: the
appointment of a receiver, fiscal agent or similar officer for an obligated person in
a proceeding under the U.S. Bankruptcy Code or in any other proceeding under
state or federal law in which a court or governmental authority has assumed
jurisdiction over substantially all of the assets or business of the obligated person,
or if such jurisdiction has been assumed by leaving the existing governing body
and officials or officers in possession but subject to the supervision andorders of
a court or governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement or liquidation by a court or governmental authority
having supervision or jurisdiction over substantially all of the assets or business of
the obligated person.
(13) The consummation of a merger, consolidation, or acquisition
involving an obligated person or the sale of all or substantially all of the assets of
the obligated person, other than in the ordinary course of business, the entryinto a
definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if
material.
(14) Appointment of a successor or additional trustee or the change of
name of a trustee, if material.
(b)If a Listed Event described in Section 5(a) paragraph (2), (7), (8) (but only
with respect to bond calls under (8)), (10), (13) or (14) has occurred and the Issuer has
determined that such Listed Event is material under applicable federal securities laws, the
Issuer shall, in a timely manner but not later than ten business days after the occurrence
of such Listed Event, promptly file, or cause to be filed, a notice of such occurrence on
EMMA, with such notice in a format and accompanied by such identifying information
as prescribed by the MSRB.
(c)If a Listed Event described in Section 5(a) paragraph (1), (3), (4), (5), (6),
(8) (but only with respect to tender offers under (8)), (9), (11) or (12) above has occurred
the Issuer shall, in a timely manner but not later than ten business days after the
occurrence of such Listed Event, promptly file, or cause to be filed, a notice of such
occurrence on EMMA, with such notice in a format and accompanied by such
identifying information as prescribed by the MSRB. Notwithstanding the foregoing,
notice of Listed Events described in Section (5)(a) paragraphs (8) and (9) need not be
given under this subsection any earlier than the notice (if any) of the underlying event is
given to Holders of affected Bonds pursuant to the Resolution.
Section 6. Termination of Reporting Obligation. The Issuer’s obligations under this
Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in
full of all of the Bonds or upon the Issuer’s receipt of an opinion of nationally recognized bond
counsel to the effect that, because of legislative action or final judicial action or administrative
actions or proceedings, the failure of the Issuer to comply with the terms hereof will not cause
Participating Underwriters to be in violation of the Rule or other applicable requirements of the
Securities Exchange Act of 1934, as amended.
-4-
Tiffin/436989-24/CDC
Section 7. Dissemination Agent. The Issuer may, from time to time, appoint or
engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure
Certificate, and may discharge any such Agent, with or without appointing a successor
Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the
content of any notice or Annual Report prepared by the Issuer pursuant to this Disclosure
Certificate. The initial Dissemination Agent shall be Northland Securities, Inc.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of
this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a)(i) the amendment or waiver is made in connection with a change in
circumstances that arises from a change in legal requirements, change in law, or change
in the identity, nature or status of an obligated person with respect to the Bonds, or the
type of business conducted; (ii) the undertaking, as amended or taking into account such
waiver, would, in the opinion of nationally recognized bond counsel, have complied with
the requirements of the Rule at the time of the original issuance of the Bonds, after taking
into account any amendments or interpretations of the Rule, as well as any change in
circumstances; and (iii) the amendment or waiver either (1) is approved by a majority of
the Holders, or (2) does not, in the opinion of nationally recognized bond counsel,
materially impair the interests of the Holders or Beneficial Owners; or
(b)the amendment or waiver is necessary to comply with modifications to or
interpretations of the provisions of the Rule as announced by the Securities and Exchange
Commission.
In the event of any amendment or waiver of a provision of this Disclosure Certificate,
the Issuer shall describe such amendment in the next Annual Report, and shall include, as
applicable, a narrative explanation of the reason for the amendment or waiver and its impact on
the type (or in the case of a change of accounting principles, on the presentation) of financial
information or operating data being presented by the Issuer. In addition, if the amendment
relates to the accounting principles to be followed in preparing audited financial statements, (i)
notice of such change shall be given in the same manner as for a Listed Event under Section
5(c), and (ii) the Annual Report for the year in which the change is made will present a
comparison or other discussion in narrative form (and also, if feasible, in quantitative form)
describing or illustrating the material differences between the audited financial statements as
prepared on the basis of the new accounting principles and those prepared on the basis of the
former accounting principles.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be
deemed to prevent the Issuer from disseminating any other information, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in any Annual Report or notice of occurrence of a Listed Event,
in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to
include any information in any Annual Report or notice of occurrence of a Listed Event in
addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have
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Tiffin/436989-24/CDC
no obligation under this Certificate to update such information or include it in any future Annual
Report or notice of occurrence of a Listed Event.
Section 10.Default. In the event of a failure of the Issuer to comply with any
provision of this Disclosure Certificate, any Holder or Beneficial Owner may take such
actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the Issuer to comply with its obligations under this
Disclosure Certificate. Direct, indirect, consequential and punitive damages shall not be
recoverable by any person for any default hereunder and are hereby waived to the extent
permitted by law. A default under this Disclosure Certificate shall not be deemed an event of
default under the Resolution, and the sole remedy under this Disclosure Certificate in the
event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action
to compel performance.
Section 11.Duties, Immunities and Liabilities of Dissemination Agent. The
Dissemination Agent, if any, shall have only such duties as are specifically set forth in this
Disclosure Certificate, andthe Issuer agrees to indemnify and save the Dissemination Agent,
its officers, directors, employees and agents, harmless against any loss, expense and
liabilities which it may incur arising out of or in the exercise or performance of its powers
and dutieshereunder, including the costs and expenses (including attorneys’ fees) of
defending against any claim of liability, but excluding liabilities due to the Dissemination
Agent’s negligence or willful misconduct. The obligations of the Issuer under this Section
shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
Section 12.Beneficiaries. This Disclosure Certificate shall inure solely to the
benefit of the Issuer, the Dissemination Agent, the Participating Underwriters and Holders
and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other
person or entity.
Dated: April 4, 2018
CITY OF TIFFIN, IOWA
By____________________________________
Mayor
Attest:
By____________________________________
City Clerk
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APPENDIX C
City’s Financial Statement
The following are unaudited financial reports for the fiscal years ended June 30, 2014, 2015, and 2016.The City
is only required to prepareaudited financial statements every four years and thelast audit was completed for the
fiscal year ended June 30, 2013.The reader of this Official Statement should be aware that the complete financial
report may have further data relating to the excerpts presented in the appendix which may provide additional
explanation, interpretation or modification of the excerpts.
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