SUPPLEMENT TO NOTICE OF BOND SALE

Transcription

1 SUPPLEMENT TO NOTICE OF BOND SALE $3,345,000 * CITY OF ROELAND PARK, KANSAS GENERAL OBLIGATION BONDS SERIES DATE: AUGUST 3, 2010 The Notice of Bond Sale dated June 21, 2010 for the above-referenced bond issue incorrectly stated the principal and interest payment dates. The section entitled Terms of the Bonds should read as follows: Terms of the Bonds. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (the Authorized Denomination ). The Bonds will be dated August 19, 2010 (the Dated Date ), and will become due in principal installments on September 1 in the years as follows: Year Principal Amount * Year Principal Amount * 2011 $110, $295, , , , , , , , , , , , , ,000 The Bonds will bear interest from the Dated Date at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, 2011 (the Interest Payment Dates ). Additional Information. Additional information regarding the Bonds may be obtained from the undersigned, at the address set forth below: CITY OF ROELAND PARK, KANSAS By Debra L. Mootz, Clerk 4600 W. 51st Street Roeland Park, Kansas Phone No. (913) Fax No. (913) dlmootz@roelandpark.org * Preliminary; subject to change. See Adjustment of Issue Size, in the Notice of Bond Sale dated June 21, 2010.

2 REVISED OFFICIAL BID FORM PROPOSAL FOR THE PURCHASE OF CITY OF ROELAND PARK, KANSAS GENERAL OBLIGATION BONDS TO: Debra L. Mootz, Clerk August 9, 2010 City of Roeland Park, Kansas For $3,345,000 * principal amount of General Obligation Bonds, Series , of the City of Roeland Park, Kansas, to be dated August 19, 2010, as described in your Notice of Bond Sale dated June 21, 2010 as supplemented on August 3, 2010, said Bonds to bear interest as follows: Stated Maturity September 1 Principal Amount * Annual Rate of Interest Stated Maturity September 1 Principal Amount * Annual Rate of Interest 2011 $110,000 % 2019 $295,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % the undersigned will pay the purchase price for the Bonds set forth below, plus accrued interest to the date of delivery. Principal Amount... $3,345, * Less Discount (not to exceed 0.05%)...- Plus Premium (if any)... Total Purchase Price...$ Total interest cost to maturity at the rates specified...$ Net interest cost (adjusted for Discount and/or Premium)...$ Average annual net interest rate... % True Interest Cost... % The Bidder elects to have the following Term Bonds: Maturity Date Years Amount* December 1, to $ December 1, to $ *subject to mandatory redemption requirements in the amounts and at the times shown above. This proposal is subject to all terms and conditions contained in said Notice of Bond Sale, and if the undersigned is the Successful Bidder, the undersigned will comply with all of the provisions contained in said Notice. A cashier s or certified check, a wire transfer or a qualified financial surety bond in the amount of $66,900 payable to the order of the Issuer, accompanies this proposal as an evidence of good faith. The acceptance of this proposal by the Issuer shall constitute a contract between the Issuer and the Successful Bidder for purposes of complying with Rule 15c2-12 of the Securities and Exchange Commission and a bond purchase agreement for purposes of the laws of Kansas. Submitted by: [LIST ACCOUNT MEMBERS ON REVERSE] By: Telephone No.( ) * Preliminary; subject to change as provided in Notice of Bond Sale. 1

3 ACCEPTANCE Pursuant to action duly taken by the Governing Body of the City of Roeland Park, Kansas, the above proposal is hereby accepted on August 9, Attest: Clerk Mayor NOTE: No additions or alterations in the above proposal form shall be made, and any erasures may cause rejection of any bid. Sealed bids may be filed with the Debra L. Mootz, Clerk, 4600 W. 51st Street Roeland Park, Kansas 66205, facsimile bids may be filed with the Clerk, Fax No. (913) or electronic bids may be submitted via PARITY, at or prior to 11:00 a.m., Central Time, on August 9, Any bid received after such time will be returned to the bidder. 2

4 NOTICE OF BOND SALE $3,345,000 * CITY OF ROELAND PARK, KANSAS GENERAL OBLIGATION BONDS SERIES (GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES) Bids. Written and electronic (as explained below) bids for the purchase of the above-referenced bonds (the Bonds ), of the City of Roeland Park, Kansas (the Issuer ) herein described will be received on behalf of the undersigned Clerk of the Issuer, in the case of written bids, at the address hereinafter set forth, and in the case of electronic bids, via PARITY until 11:00 a.m., Central Time (the Submittal Hour ), on AUGUST 9, 2010 (the Sale Date ). All bids will be publicly evaluated at said time and place and the award of the Bonds to the successful bidder (the Successful Bidder ) will be acted upon by the governing body at its meeting to be held at 7:00 p.m. on the Sale Date. No oral or auction bids will be considered. Capitalized terms not otherwise defined herein shall have the meanings set forth in the hereinafter referenced Preliminary Official Statement relating to the Bonds. Terms of the Bonds. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (the Authorized Denomination ). The Bonds will be dated August 19, 2010 (the Dated Date ), and will become due in principal installments on December 1 in the years as follows: Year Principal Amount * Year Principal Amount * 2011 $110, $295, , , , , , , , , , , , , ,000 The Bonds will bear interest from the Dated Date at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on June 1 and December 1 in each year, beginning on June 1, 2011 (the Interest Payment Dates ). Adjustment of Issue Size. The Issuer reserves the right to increase or decrease the total principal amount of the Bonds, depending on the purchase price and interest rates bid and the offering prices specified by the Successful Bidder. The principal amount of any maturity may be adjusted by the Issuer * Preliminary; subject to change. See Adjustment of Issue Size, herein.

5 in order to properly size the Bond issue based on the discount and interest rates bid on the Bonds. The Successful Bidder may not withdraw its bid or change the interest rates bid as a result of any changes made to the principal amount of the Bonds or principal of any maturity as described herein. If there is an increase or decrease in the final aggregate principal amount of the Bonds or the schedule of principal payments as described above, the Issuer will notify the Successful Bidder by means of telephone or facsimile transmission, subsequently confirmed in writing, no later than 2:00 p.m., central time, on the Sale Date. The actual purchase price for the Bonds shall be calculated by applying the percentage of par value bid by the Successful Bidder against the final aggregate principal amount of the Bonds, as adjusted, plus accrued interest from the date of the Bonds to the date of delivery. Place of Payment. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the Paying Agent and Bond Registrar ). The principal of each Bond will be payable at maturity or earlier redemption to the owners thereof whose names are on the registration books (the Bond Register ) of the Bond Registrar (the Registered Owner ) upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the Registered Owner of such Bond as of the fifteenth day (whether or not a business day) of the calendar month next preceding each Interest Payment Date (the Record Date ): (a) mailed by the Paying Agent to the address of such Registered Owner as shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address to which such Registered Owner wishes to have such wire directed. Bond Registration. The Bonds will be registered pursuant to a plan of registration approved by the Issuer and the Attorney General of the State of Kansas. The Issuer will pay for the fees of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, will be the responsibility of the Owners. Book-Entry-Only System. The Depository Trust Company, New York, New York ( DTC ), will act as securities depository for the Bonds. The Bonds will initially be issued exclusively in book entry form and shall be initially registered in the name of Cede & Co., as the nominee of DTC and no beneficial owner will receive certificates representing their interests in the Bonds. During the term of the Bonds, so long as the book-entry-only system is continued, the Issuer will make payments of principal of, premium, if any, and interest on the Bonds to DTC or its nominee as the Registered Owner of the Bonds, DTC will make book-entry-only transfers among its participants and receive and transmit payment of principal of, premium, if any, and interest on the Bonds to its participants who shall be responsible for transmitting payments to beneficial owners of the Bonds in accordance with agreements between such participants and the beneficial owners. The Issuer will not be responsible for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In the event that: (a) DTC determines not to continue to act as securities depository for the Bonds, or (b) the Issuer determines that continuation of the book-entry-only form of evidence and transfer of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds, the Issuer will discontinue the book-entry-only form of registration with DTC. If the Issuer fails to identify another qualified securities depository to replace DTC, the Issuer will cause to be authenticated and delivered to the beneficial owners replacement Bonds in the form of fully registered certificates. Reference is made to 2

6 the Official Statement for further information regarding the book-entry-only system of registration of the Bonds and DTC. Redemption of Bonds Prior to Maturity. General. Whenever the Issuer is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than the minimum Authorized Denomination, if less than all of the Bonds then outstanding are to be called for redemption, treat each minimum Authorized Denomination of face value of each such fully registered Bond as though it were a separate Bond in the minimum Authorized Denomination. Optional Redemption. At the option of the Issuer, Bonds maturing on December 1 in the years 2020, and thereafter, will be subject to redemption and payment prior to maturity on December 1, 2019, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. Mandatory Redemption. A bidder may elect to have all or a portion of the Bonds scheduled to mature in consecutive years issued as term bonds (the Term Bonds ) scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions: (a) not less than all Bonds of the same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or completing the applicable information on PARITY. Notice and Effect of Call for Redemption. Unless waived by any owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar and the original purchaser of the Bonds. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the registered owners of said Bonds. Each of said written notices shall be deposited in United States first class mail not less than 30 days prior to the date fixed for redemption. All notices of redemption shall state the date of redemption, the redemption price, the Bonds to be redeemed, the place of surrender of Bonds so called for redemption and a statement of the effect of the redemption. The Issuer shall also give such additional notice as may be required by Kansas law or regulation of the Securities and Exchange Commission in effect as of the date of such notice. If any Bond be called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the date for which such call is made, provided funds are available for its payment at the price hereinbefore specified. Authority, Purpose and Security. The Bonds are being issued pursuant to K.S.A r and s, K.S.A et seq., and K.S.A. 12-6a01 et seq., as amended, and an ordinance and resolution adopted by the governing body of the Issuer (collectively, the Bond Resolution ) for the purpose of paying a portion of the cost of certain street and stormwater improvements (the Improvements ). The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of said Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due. 3

7 Submission of Bids. Written bids must be made on forms which may be procured from the Clerk and shall be addressed to the undersigned, and marked Proposal for General Obligation Bonds, Series Written bids submitted by facsimile should not be preceded by a cover sheet and should be sent only once to (913) Confirmation of receipt of facsimile bids may be made by contacting the undersigned at the number listed below. Electronic bids via PARITY must be submitted in accordance with its Rules of Participation, as well as the provisions of this Notice of Bond Sale. If provisions of this Notice of Bond Sale conflict with those of PARITY, this Notice of Bond Sale shall control. Bids must be received prior to the Submittal Hour on the Sale Date accompanied by the Deposit (as hereinafter defined), which may be submitted separately, provided such Deposit is received by the Issuer prior to the Submittal Hour on the Sale Date. The Issuer shall not be responsible for any failure, misdirection or error in the means of transmission selected by any bidder. PARITY. Information about the electronic bidding services of PARITY may be obtained from i-deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018, Phone No. (212) Conditions of Bids. Proposals will be received on the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: (a) the same rate shall apply to all Bonds of the same maturity year; (b) no interest rate may exceed a rate equal to the daily yield for the 10- year Treasury Bond published by THE BOND BUYER, in New York, New York, on the Monday next preceding the day on which the Bonds are sold, plus 6%; and (c) no supplemental interest payments will be considered. No bid shall be for less than 99.5% of the principal amount of the Bonds and accrued interest thereon to the date of delivery will be considered. Each bid shall specify the total interest cost (expressed in dollars) during the term of the Bonds on the basis of such bid, the discount, if any, the premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid, the average annual net interest rate (expressed as a percentage) and an estimate of the TIC (as hereinafter defined) on the basis of such bid. Each bidder shall certify to the Issuer the correctness of the information contained on the Official Bid Form; the Issuer will be entitled to rely on such certification. Each bidder agrees that, if it is awarded the Bonds, it will provide the certification as to initial offering prices described under the caption Certification as to Offering Price in this Notice. Good Faith Deposit. Each bid shall be accompanied by a good faith deposit (the Deposit ) in the amount of $66, payable to the order of the Issuer to secure the Issuer from any loss resulting from the failure of the bidder to comply with the terms of its bid. The Deposit, which must be received by the Issuer prior to the Submittal Hour, may be submitted in any of the following forms: (a) (b) (c) certified or cashier s check drawn on a bank located in the United States of America; financial surety bond as hereinafter described (the Surety Bond ); or wire transfer in Federal Reserve funds, immediately available for use by the Issuer (wire transfer information may be obtained from the Issuer at the addresses set forth below.) Contemporaneously with the submission of a wire transfer Deposit, such bidder shall send an to the Issuer at the address set forth below, including the following information: (a) notification that a wire transfer has been made; (b) the amount of the wire transfer; and (c) return wire transfer instructions in the event such bid is unsuccessful. All Surety Bonds must be from an insurance or surety company rated AA by Standard and Poor s Ratings Services, a division of The McGraw Hill Companies, Inc., or Aa by Moody s Investors Service and licensed to issue such a surety bond in the State of Kansas. The 4

8 Surety Bond must identify each bidder whose deposit is guaranteed by such Surety Bond. Good Faith checks submitted by unsuccessful bidders will be returned; wire transfer Deposits submitted by unsuccessful bidders will not be accepted or shall be returned in the same manner received, as soon as possible, but generally no later than the next business day following the Sale Date. The Issuer reserves the right to withhold reasonable charges for any fees or expenses incurred in returning a wire transfer Deposit. If the sale of the Bonds is awarded to a bidder utilizing a Surety Bond, the Successful Bidder is required to submit to the Issuer a cashier s or certified check or wire transfer of immediately available federal funds to such financial institution requested by the Issuer, not later than 2:00 p.m., Central Time on the next business day following the Sale Date. If such funds are not received by such time, the Surety Bond may be drawn on by the Issuer to satisfy the Deposit requirement. No interest on the Deposit will be paid by the Issuer. If a bid is accepted, the Deposit, or the proceeds thereof, will be held by the Issuer until the Successful Bidder has complied with all of the terms and conditions of this Notice at which time the amount of said Deposit shall be returned to the Successful Bidder or deducted from the purchase price at the option of the Issuer. If a bid is accepted but the Issuer fails to deliver the Bonds to the Successful Bidder in accordance with the terms and conditions of this Notice, said Deposit, or the proceeds thereof, will be returned to the Successful Bidder. If a bid is accepted but the bidder defaults in the performance of any of the terms and conditions of this Notice, the proceeds of such Deposit will be retained by the Issuer as and for liquidated damages. Basis of Award. Subject to the timely receipt of the Deposit set forth above, the award of the Bonds will be made on the basis of the lowest true interest cost ( TIC ), which will be determined as follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including any adjustments for premium or discount, if any. Present value will be computed on the basis of semiannual compounding and a 360-day year of twelve 30-day months. Bidders are requested to provide a calculation of the TIC for the Bonds on the Official Bid Form, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the Issuer or the bidder. The Issuer will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid price and interest rates specified, the specified bid price and interest rates shall govern and the TIC specified in the bid shall be adjusted accordingly. If two or more proper bids providing for identical amounts for the lowest TIC are received, the governing body of the Issuer will determine which bid, if any, will be accepted, and its determination is final. The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any bid received after the Submittal Hour on the Sale Date will be returned to the bidder. Any disputes arising hereunder shall be governed by the laws of Kansas, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within Kansas with regard to such dispute. The Issuer s acceptance, including electronic acceptance through PARITY, of the Successful Bidder s proposal for the purchase of the Bonds in accordance with this Notice of Bond Sale shall constitute a bond purchase agreement between the Issuer and the Successful Bidder for purposes of the laws of Kansas. Bond Ratings. The Issuer has not applied for a rating on the Bonds herein offered for sale. Optional Bond Insurance. The Issuer has not applied for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance, and any bidder 5

9 desires to purchase such policy, such indication and the name of the desired insurer must be set forth on the bidder s Official Bid Form. The Issuer specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the Issuer. All costs associated with the issuance of such policy and associated ratings and expenses (other than any independent rating requested by the Issuer) shall be paid by the Successful Bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the Successful Bidder to accept delivery of the Bonds. CUSIP Numbers. CUSIP identification numbers will be assigned and printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of this Notice. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the Issuer. Delivery and Payment. The Issuer will pay for printing the Bonds and will deliver the Bonds properly prepared, executed and registered without cost on or about AUGUST 19, 2010 (the Closing Date ), to DTC for the account of the Successful Bidder. The Successful Bidder will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds shall be made in federal reserve funds, immediately available for use by the Issuer. The Issuer will deliver one Bond of each maturity registered in the nominee name of DTC. Reoffering Prices. To provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended (the Code ), the Successful Bidder will be required to complete, execute and deliver to the Issuer prior to the delivery of the Bonds, a written certification (the Issue Price Certificate ) containing the following: (a) the initial offering price and interest rate for each maturity of the Bonds; (b) that all of the Bonds were offered to the public in a bona fide public offering at the initial offering prices on the Sale Date; and (c) on the Sale Date the Successful Bidder reasonably expected that at least 10% of each maturity of the Bonds would be sold to the public at prices not higher than the initial offering prices. For purposes of the preceding sentence public means persons other than bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters or wholesalers. However, such Issue Price Certificate may indicate that the Successful Bidder has purchased the Bonds for its own account in a capacity other than as an underwriter or wholesaler, and currently has no intent to reoffer the Bonds for sale the public. Subsequent to the Submittal Hour, such initial offering prices to the public shall be provided to the Issuer not more than 20 minutes after requested by the Issuer. At the request of the Issuer, the Successful Bidder will provide information explaining the factual basis for the Purchaser s Issue Price Certificate. This agreement by the Purchaser to provide such information will continue to apply after the Closing Time if: (a) the Issuer requests the information in connection with an audit or inquiry by the Internal Revenue Service (the IRS ) or the Securities and Exchange Commission (the SEC ) or (b) the information is required to be retained by the Issuer pursuant to future regulation or similar guidance from the IRS, the SEC or other federal or state regulatory authority. Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary Official Statement dated June 21, 2010, deemed final by the Issuer except for the omission of certain 6

10 information as provided in Securities and Exchange Commission Rule 15c2-12, copies of which may be obtained from the Clerk. Upon the sale of the Bonds, the Issuer will adopt the final Official Statement and will furnish the Successful Bidder, without cost, within seven business days of the acceptance of the Successful Bidder s proposal, with a sufficient number of copies thereof, which may be in electronic format, in order for the Successful Bidder to comply with the requirements of Rule 15c2-12(b)(3) and (4) of the Securities and Exchange Commission and Rule G-32 of the Municipal Securities Rulemaking Board (collectively, the Rules ). Additional copies may be ordered by the Successful Bidder at its expense. The Issuer s acceptance, including electronic acceptance through PARITY, of the Successful Bidder s proposal for the purchase of the Bonds in accordance with this Notice of Bond Sale shall constitute a contract between the Issuer and the Successful Bidder for purposes of the Rules. Assessed Valuation and Indebtedness. The total assessed valuation of the taxable tangible property within the Issuer for the year 2009, is as follows: Equalized Assessed Valuation of Taxable Tangible Property... $65,889,739 Tangible Valuation of Motor Vehicles... 7,621,093 Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations... $73,510,832 The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $10,455,000. Temporary notes in the principal amount of $3,675,000 will be retired out of proceeds of the Bonds and other available funds, which will reduce the outstanding general obligation indebtedness of the Issuer to $6,780,000. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel, which opinion will be furnished and paid for by the Issuer, will be printed on the Bonds, if the Bonds are printed, and will be delivered to the Successful Bidder when the Bonds are delivered. Said opinion will also include the opinion of Bond Counsel relating to the exclusion of the interest on the Bonds from gross income for federal income tax purposes and from computation of Kansas adjusted gross income. Reference is made to the Preliminary Official Statement for further discussion of federal and Kansas income tax matters relating to the interest on the Bonds. Additional Information. Additional information regarding the Bonds may be obtained from the undersigned, at the address set forth below: DATED: June 21, CITY OF ROELAND PARK, KANSAS By Debra L. Mootz, Clerk Written and Facsimile Bid and Good Faith Deposit Delivery Address: 4600 W. 51st Street Roeland Park, Kansas Phone No. (913) Fax No. (913) dlmootz@roelandpark.org 7

11 OFFICIAL BID FORM PROPOSAL FOR THE PURCHASE OF CITY OF ROELAND PARK, KANSAS GENERAL OBLIGATION BONDS TO: Debra L. Mootz, Clerk August 9, 2010 City of Roeland Park, Kansas For $3,345,000 * principal amount of General Obligation Bonds, Series , of the City of Roeland Park, Kansas, to be dated August 19, 2010, as described in your Notice of Bond Sale dated June 21, 2010, said Bonds to bear interest as follows: Stated Maturity December 1 Principal Amount * Annual Rate of Interest Stated Maturity December 1 Principal Amount * Annual Rate of Interest 2011 $110,000 % 2019 $295,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % the undersigned will pay the purchase price for the Bonds set forth below, plus accrued interest to the date of delivery. Principal Amount... $3,345, * Less Discount (not to exceed 0.05%)...- Plus Premium (if any)... Total Purchase Price...$ Total interest cost to maturity at the rates specified...$ Net interest cost (adjusted for Discount and/or Premium)...$ Average annual net interest rate... % True Interest Cost... % The Bidder elects to have the following Term Bonds: Maturity Date Years Amount* December 1, to $ December 1, to $ *subject to mandatory redemption requirements in the amounts and at the times shown above. This proposal is subject to all terms and conditions contained in said Notice of Bond Sale, and if the undersigned is the Successful Bidder, the undersigned will comply with all of the provisions contained in said Notice. A cashier s or certified check, a wire transfer or a qualified financial surety bond in the amount of $66,900 payable to the order of the Issuer, accompanies this proposal as an evidence of good faith. The acceptance of this proposal by the Issuer shall constitute a contract between the Issuer and the Successful Bidder for purposes of complying with Rule 15c2-12 of the Securities and Exchange Commission and a bond purchase agreement for purposes of the laws of Kansas. Submitted by: [LIST ACCOUNT MEMBERS ON REVERSE] By: Telephone No.( ) * Preliminary; subject to change as provided in Notice of Bond Sale. 1

12 ACCEPTANCE Pursuant to action duly taken by the Governing Body of the City of Roeland Park, Kansas, the above proposal is hereby accepted on August 9, Attest: Clerk Mayor NOTE: No additions or alterations in the above proposal form shall be made, and any erasures may cause rejection of any bid. Sealed bids may be filed with the Debra L. Mootz, Clerk, 4600 W. 51st Street Roeland Park, Kansas 66205, facsimile bids may be filed with the Clerk, Fax No. (913) or electronic bids may be submitted via PARITY, at or prior to 11:00 a.m., Central Time, on August 9, Any bid received after such time will be returned to the bidder. 2

13 This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. NEW ISSUE BANK QUALIFIED BOOK-ENTRY ONLY PRELIMINARY OFFICIAL STATEMENT DATED JULY 29, 2010 Ratings: See Ratings Herein In the opinion of Bond Counsel, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended, the interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes, is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and is not taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The interest on the Bonds is excluded from computation of Kansas adjusted gross income. The Bonds are qualified tax-exempt obligations within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See TAX MATTERS herein. $3,345,000 * CITY OF ROELAND PARK, KANSAS GENERAL OBLIGATION IMPROVEMENT BONDS SERIES Dated: August 19, 2010 Due: As shown below The General Obligation Improvement Bonds, Series (the Bonds ) will be issued by the City of Roeland Park, Kansas (the Issuer ), as fully registered bonds, without coupons, in the denominations of $5,000 or any integral multiple thereof. Principal of the Bonds will be payable on each September 1, beginning in 2011, and semiannual interest will be payable on March 1 and September 1, beginning on March 1, The Bonds maturing on September 1, 2020 and thereafter will be subject to redemption prior to maturity, at the option of the Issuer, in whole or in part at any time, on September 1, 2019, or thereafter as described herein. (1) Stated Maturity September 1 MATURITY SCHEDULE SERIAL BONDS CUSIP (1) Base: Stated Maturity September 1 Principal Amount* Interest Rate Yield or Price Principal Amount* 2011 $110, $295, , , , , , , , , , , , , ,000 Interest Rate Yield or Price CUSIP (1) Base: CUSIP numbers have been assigned to this issue by Standard & Poor s CUSIP Service Bureau, a division of the McGraw-Hill Companies, Inc., and are included solely for the convenience of the Owners of the Bonds. Neither the Issuer nor the Underwriter shall be responsible for the selection or correctness of the CUSIP numbers set forth above. The Bonds and the interest thereon will constitute general obligations of the Issuer, payable in part from special assessments levied upon the property benefited by the construction of certain public improvements (as hereinafter described in the section entitled: The Projects ), and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, with the balance payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Bonds are offered when, as and if issued by the Issuer, subject to the approval of legality by Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel. It is expected that the Bonds will be available for delivery through the facilities of DTC in New York, New York on or about August 19, THE COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. THE COVER PAGE IS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT, INCLUDING ALL APPENDICES ATTACHED HERETO TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. * Preliminary; subject to change. The date of this Official Statement is August, 2010.

14 IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE SECURITIES HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE BONDS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON OR UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE FORWARD-LOOKING STATEMENTS AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS ESTIMATE, INTEND, EXPECT AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED.

15 CITY OF ROELAND PARK, KANSAS City Hall 4600 W. 51 st Street, Roeland Park, Kansas (913) ELECTED OFFICIALS Adrienne Foster, Mayor Bill Art, City Council Member Megan England, City Council Member Marek Gliniecki, City Council Member Scott Gregory, City Council Member Toni Hull, City Council Member Mark Kohles, City Council Member Robert Meyers, Jr., City Council Member Betsy Mellor, City Council Member ADMINISTRATIVE OFFICERS CITY ADMINISTRATOR John E. Carter CLERK Debra L. Mootz ISSUER S COUNSEL Stinson Morrison Hecker LLP BOND COUNSEL Gilmore & Bell, P.C., Kansas City, Missouri CERTIFIED PUBLIC ACCOUNTANTS McGladrey & Pullen, LLP (i)

16 No dealer, broker, salesman or other person has been authorized by the Issuer or the Underwriter to give any information or to make any representations with respect to the Bonds other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein concerning the Issuer has been furnished by the Issuer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the date hereof. This Official Statement does not constitute a contract between the Issuer or the Underwriter and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. TABLE OF CONTENTS INTRODUCTION... 1 THE BONDS... 1 BOOK-ENTRY ONLY SYSTEM... 7 THE PROJECTS... 8 THE REFUNDING PLAN... 9 SOURCES AND USES OF FUNDS... 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS RATINGS ABSENCE OF LITIGATION LEGAL MATTERS TAX MATTERS UNDERWRITING AUTHORIZATION OF OFFICIAL STATEMENT APPENDIX A INFORMATION CONCERNING THE ISSUER...1 APPENDIX B FINANCIAL STATMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS (FOR THE FISCAL YEAR ENDED 12/31/09)...1 APPENDIX C CONTINUING DISCLOSURE INSTRUCTIONS...1 Page (ii)

17 OFFICIAL STATEMENT $3,345,000 CITY OF ROELAND PARK, KANSAS GENERAL OBLIGATION IMPROVEMENT BONDS SERIES INTRODUCTION General Matters The purpose of this Official Statement is to furnish information relating to the City of Roeland Park, Kansas (the Issuer or the City ), and the issuance of its $3,345,000 General Obligation Improvement Bonds, Series (the Bonds ), dated as of August 19, The Appendices to this Official Statement are integral parts of this document, to be read in their entirety. The Issuer is a municipal corporation duly organized and existing under the laws of the State of Kansas. Additional information regarding the Issuer is contained in APPENDIX A to this Official Statement. The materials contained on the cover page, in the body and in the Appendices to this Official Statement are to be read in their entirety. All financial and other information presented herein has been compiled by the Issuer. The presentation of information herein, including tables of receipts from various taxes, is intended to show recent historic information, and is not intended to indicate future or continuing trends in the financial position or other affairs of the Issuer. No representation is made that past experience, as might be shown by such financial or other information, will necessarily continue or be repeated in the future. Except to the extent described under the section captioned LEGAL MATTERS Bond Counsel expresses no opinion as to the accuracy or sufficiency of any other information contained herein. Continuing Disclosure The Securities and Exchange Commission (the SEC ) has promulgated amendments to Rule 15c2-12 (the Rule ), requiring continuous secondary market disclosure. In the Note and Bond Resolutions, hereinafter defined, the Issuer has covenanted to provide annually certain financial information and operating data and other information necessary to comply with the Rule, and to transmit the same to certain repositories and the Municipal Securities Rulemaking Board, as applicable. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds. The Issuer has complied with all previous undertakings under the Rule. For more information regarding the Issuer s continuing disclosure undertaking, see APPENDIX C CONTINUING DISCLOSURE INSTRUCTIONS. Additional Information Additional information regarding the City or the Bonds may be obtained from the City Clerk at the address set forth in the preface to this Official Statement or from Gilmore & Bell, P.C., 2405 Grand Boulevard, Suite 1100, Kansas City, Missouri ( ). Authority for the Bonds THE BONDS The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the State of Kansas (the State ), including to K.S.A to , inclusive, K.S.A r and s, K.S.A et seq., and K.S.A. 12-6a01 et seq., all as amended and supplemented from time to time (the Act ), an ordinance 1

18 passed by the governing body of the Issuer and a resolution adopted by the governing body of the Issuer on August, 2010 (jointly, the Bond Resolution ). Security for the Bonds The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements (as hereinafter described in the section entitled, The Projects ), and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Description of the Bonds The Bonds shall consist of fully registered book-entry-only bonds in the denomination of $5,000 or any integral multiples thereof (the Authorized Denomination ) and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds shall be dated the Dated Date, shall become due in the amounts, on the Stated Maturities, and subject to redemption and payment, prior to their Stated Maturities, and shall bear interest at the rates per annum set forth on the inside cover page of this Official Statement. The Bonds shall bear interest (computed on the basis of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid on the Interest Payment Dates in the manner hereinafter set forth. Designation of Paying Agent and Registrar The Issuer will at all times maintain a paying agent, note registrar and bond registrar meeting the qualifications set forth in the Bond Resolution. The Issuer reserves the right to appoint a successor paying agent, note registrar or bond registrar. No resignation or removal of the paying agent or bond registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or bond registrar. Every paying agent or bond registrar appointed by the Issuer shall at all times meet the requirements of Kansas law. The Treasurer of the State of Kansas, Topeka, Kansas (the Registrar and Paying Agent ) has been designated by the Issuer as paying agent for the payment of principal of and interest on the Bonds and note and bond registrar with respect to the registration, transfer and exchange of Bonds. Method and Place of Payment of the Bonds The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Note and Bond and the interest thereon shall be paid at Maturity to the Person in whose name such Note or Bond is registered on the Note or Bond Register at the Maturity thereof, upon presentation and surrender of such Note or Bond at the principal office of the Paying Agent. The interest payable on each Note and Bond on any Interest Payment Date shall be paid to the Owner of such Note or Bond as shown on the Note or Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Note or Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. Notwithstanding the foregoing, any Defaulted Interest with respect to any Note or Bond shall cease to be payable to the Owner of such Note or Bond on the relevant Record Date and shall be payable to the Owner in whose name such Note or Bond is registered at the close of business on the Special Record Date for the payment of such 2

19 Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The Issuer shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Note or Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall notify the Issuer of such Special Record Date and shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Note or Bond entitled to such notice not less than 10 days prior to such Special Record Date. SO LONG AS CEDE & CO. REMAINS THE REGISTERED OWNER OF THE BONDS, THE PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See THE BONDS Book-Entry Bonds; Securities Depository. Payments Due on Saturdays, Sundays and Holidays In any case where a Note or Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Note or Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Note or Bond Payment Date, and no interest shall accrue for the period after such Note or Bond Payment Date. Book-Entry Bonds; Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs. The Issuer may decide, subject to the requirements of the Operational Arrangements of DTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC (or a successor Securities Depository): (a) If the Issuer determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(1) or (a)(2) of this paragraph, the Issuer, with the consent of the Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Note or Bond. Upon the issuance of Replacement Bonds, all references 3

20 herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the Issuer, the Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the Issuer. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the Issuer may appoint a successor Securities Depository provided the Registrar receives written evidence satisfactory to the Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Registrar upon its receipt of a Note, Bond, Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Note or Bond Resolution. Registration, Transfer and Exchange of Bonds As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner s duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Bond Resolution. The Issuer shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. The Issuer and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. Mutilated, Lost, Stolen or Destroyed Bonds If (a) any mutilated Note or Bond is surrendered to the Registrar or the Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Note or Bond, and (b) there is delivered to the Issuer and the Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Registrar that such Note or Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer s request, the Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note or Bond, a new Note or Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Note or Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Note or Bond instead of issuing a new Note or Bond. Upon the issuance of any new Note or Bond, the Issuer may require the payment by the Owner of a sum sufficient to cover any 4

21 tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Nonpresentment of Bonds If any Note or Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Note or Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Note or Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Note or Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under the Note or Bond Resolution or on, or with respect to, said Note or Bond. If any Note or Bond is not presented for payment within four (4) years following the date when such Note or Bond becomes due at Maturity, the Paying Agent shall repay to the Issuer the funds theretofore held by it for payment of such Note or Bond, and such Note or Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Redemption Provisions Optional Redemption. At the option of the Issuer, Bonds or portions thereof maturing in the years 2020 and thereafter may be called for redemption and payment prior to their Stated Maturity on December 1, 2019, and thereafter as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest thereon to the Redemption Date. [Mandatory Redemption. (a) Term Bonds. The Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on December 1 in each year, the following principal amounts of such Term Bonds: *Final Maturity Principal Amount $ Year (b) Term Bonds. The Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on December 1 in each year, the following principal amounts of such Term Bonds: *Final Maturity] Principal Amount $ Year Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in 5

22 such manner as the Issuer shall determine. Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in minimum Authorized Denomination in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If it is determined that one or more, but not all, of the minimum Authorized Denomination value represented by any Bond is selected for redemption, then upon notice of intention to redeem such minimum Authorized Denomination, the Owner or the Owner s duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized Denomination value called for redemption (and to that extent only). Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar, and the Purchaser. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the Issuer defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified to the Securities Depository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. In addition to the foregoing notice, the Issuer shall provide such notices of redemption as are required by the Disclosure Instructions. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. 6

23 THE DEPOSITORY TRUST COMPANY General. The Bonds are available in book-entry only form. Purchasers of the Bonds will not receive certificates representing their interests in the Bonds. Ownership interests in the Bonds will be available to purchasers only through a book-entry system (the Book-Entry System ) maintained by The Depository Trust Company DTC ), New York, New York. The following information concerning DTC and DTC s book-entry system has been obtained from DTC. The City takes no responsibility as to the accuracy or completeness thereof and neither the Indirect Participants nor the Beneficial Owners should rely on the following information with respect to such matters, but should instead confirm the same with DTC or the Direct Participants, as the case may be. There can be no assurance that DTC will abide by its procedures or that such procedures will not be changed from time to time. DTC will act as securities depository for 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 Note or Bond certificate will be issued for each series of the Bonds and will be deposited with DTC. DTC and its Participants. DTC, the world s largest securities depository, is a limited-purpose trust company organized under the 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 DTC holds and provides asset servicing for over 3.5 million 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 Standard & Poor s highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at and Purchases of Ownership Interests. 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 Bond ( 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 Bonds are 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 Securities, except in the event that use of the book-entry system for the Bonds is discontinued. Transfers. 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 effect any 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 accounts 7

24 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. Notices. 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. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices will 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. Voting. 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 City as 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 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments of Principal, Redemption Price and Interest. 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 City or the Bond Trustee, on the 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 securities 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, the Bond Trustee 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 Bond Trustee, 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. Discontinuation of Book-Entry System. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the City or the Bond Trustee. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book-entry transfer through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed, 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), and delivered to DTC (or a successor securities depository), to be held by it as securities depository for Direct Participants. If, however, the system of book-entry-only transfers has been discontinued and a Direct Participant has elected to withdraw its Bonds from DTC (or such successor securities depository), Bond certificates may be delivered to Beneficial Owners in the manner described in the Bond Indenture. THE PROJECTS The Bonds are being issued for the purpose of permanently financing the costs of certain public improvements (the Bond Improvements ), more specifically described as follows: 8

25 Estimated Cost to be Description Authorizing Resolution No. Authority Financed with the Bonds* RC Streets Res. No. 538 KSA et seq. $1,689, RC Storm Water Res. No. 562 and 566 KSA 12-6a01 et seq. 1,364, Roe Lane Res. No. 574 KSA et seq. 255, Clark Drive Storm Drainage Ord. No. 835 KSA r and s 35, TOTAL = $3,345, *Includes costs of interest on any temporary financing and costs of issuing the Bonds. Series 2009-B Notes Refunding THE REFUNDING PLAN Certain Bond Improvements were previously financed with the Issuer s $5,800,000 General Obligation Temporary Notes, Series 2009-B, dated November 15, 2009, which will be redeemed prior to their maturity at the option of the City and paid in part with prepaid special assessments related to the RC Storm Water project, in part with proceeds of the Bonds, and in part with certain unspent proceeds of the Series 2009-B Notes, all in accordance with the following schedule: Amount to be Maturity Interest Redemption Redemption Redeemed Date Rate Date Price $3,675,000 September 1, % August 20, % SOURCES AND USES OF FUNDS The following table itemizes the sources and uses of funds available for the Bond Improvements, including the proceeds from the sale of the Bonds, exclusive of accrued interest, if any. Sources of Funds: Principal Amount of the Bonds $3,345, City Funds. Prepayment of RC Special Assessments. Original Issue Premium. Total Uses of Funds: Redemption of Series 2009-B Notes Cost of Issuance, including Underwriter s Discount Total $. $.. $. 9

26 RISK FACTORS AND INVESTMENT CONSIDERATIONS A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS ASSOCIATED WITH THE OFFERING SHOULD NOT BE CONSIDERED AS A COMPLETE DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED FROM THE ISSUER OR THE UNDERWRITER. Taxation of Interest on the Bonds An opinion of Bond Counsel will be obtained to the effect that interest earned on the Bonds is excludable from gross income for federal income tax purposes under current provisions of the Internal Revenue Code of 1986, as amended (the Code ), and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the Code, or the rules and regulations thereunder, will not be adversely amended or modified, thereby rendering the interest earned on the Bonds includable in gross income for federal income tax purposes. The Issuer has covenanted in the Bond Resolution and in other documents and certificates to be delivered in connection with the issuance of the Bonds to comply with the provisions of the Code, including those which require the Issuer to take or omit to take certain actions after the issuance of the Bonds. Because the existence and continuation of the excludability of the interest on the Bonds depends upon events occurring after the date of issuance of the Bonds, the opinion of Bond Counsel described under LEGAL MATTERS assumes the compliance by the Issuer with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Bonds in the event of noncompliance with such provisions. The failure of the Issuer to comply with the provisions described above may cause the interest on the Bonds to become includable in gross income as of the date of issuance. Premium on Bonds [The initial offering prices of certain maturities of the Bonds that are subject to optional redemption are in excess of the respective principal amounts thereof.] Any person who purchases a Bond in excess of its principal amount, whether during the initial offering or in a secondary market transaction, should consider that the Bonds are subject to redemption at par under the various circumstances described under THE BONDS - Redemption of Bonds. No Additional Interest or Mandatory Redemption upon Event of Taxability The Bond Resolution does not provide for the payment of additional interest or penalty on the Bonds or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Bond Resolution does not provide for the payment of any additional interest or penalty on the Bonds if the interest thereon becomes includable in gross income for Kansas income tax purposes. Market for the Bonds Lack of Bond Rating. The Bonds are not rated and no application has been made for a rating. Secondary Market. There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices of bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Bonds as a result of financial condition or market position of broker-dealers, prevailing market conditions, lack of adequate current financial information about the Issuer, or a material adverse change in the financial 10

27 condition of the Issuer, whether or not the Bonds are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices. Legal Matters Various state and federal laws, regulations and constitutional provisions apply to the obligations created by the Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the Issuer or the taxing authority of the Issuer. Limitations on Remedies Available to Owners of Bonds The enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the Issuer in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights. Suitability of Investment The tax exempt feature of the Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment. RATINGS The Issuer has not applied for a rating on the Bonds herein offered for sale. ABSENCE OF LITIGATION The Issuer, in the ordinary course of business, is a party to various legal proceedings. In the opinion of management of the Issuer, any judgment rendered against the Issuer in such proceedings would not materially adversely effect the financial position of the Issuer. The Issuer certifies that there is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way the legal organization of the Issuer or its boundaries, or the right or title of any of its officers to their respective offices, or the legality of any official act or the constitutionality or validity of the indebtedness represented by the Bonds or the validity of said Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof, or the levy and collection of a tax to pay the principal and interest thereof. 11

28 LEGAL MATTERS Approval of Bonds All matters incident to the authorization and issuance of the Bonds are subject to the approval of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the Issuer and its certified public accountants, as referred to herein. Bond Counsel has participated in the preparation of the Official Statement but expresses no opinion as to the accuracy or sufficiency thereof, except for the matters appearing in the sections of this Official Statement captioned THE BONDS, LEGAL MATTERS, and TAX MATTERS. Payment of the legal fee of Bond Counsel is contingent upon the delivery of the Bonds. General TAX MATTERS The following is a summary of the material federal and state income tax consequences of holding and disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Bonds in the secondary market at a premium or a discount. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Bonds. Tax Matters Applicable to All Bonds Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Bond, an owner of the Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Bond (other than in respect of accrued and unpaid interest) and such owner s adjusted tax basis in the Bond. To the extent the Bonds are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Bond has been held for more than 12 months at the time of sale, exchange or retirement. Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on Bonds, and to the proceeds paid on the sale of Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner s federal income tax liability. Opinion of Bond Counsel Federal Tax Exemption. In the opinion of Bond Counsel, under existing law, the interest on the Bonds is excluded 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 and is not taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinions set forth in this paragraph are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended (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 all such requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income for federal income tax purposes 12

29 retroactive to the date of issuance of the Bonds. The Bonds are qualified tax-exempt obligations for purposes of Code 265(b)(3), and, in the case of certain financial institutions (within the meaning of Code 265(b)(5)), a deduction is allowed for 80% of that portion of such financial institutions' interest expense allocable to interest on the Bonds. [Bonds Purchased at a Discount. In the opinion of Bond Counsel, subject to the conditions set forth above, the original issue discount for each Bond, to the extent properly allocable to each owner of such Bond, is excluded from gross income for federal income tax purposes with respect to such owner. Original issue discount on each Bond is the excess of the stated redemption price at maturity of such Bond, over the initial offering price to the public (excluding underwriters and intermediaries) at which price a substantial amount of such Bonds were sold. For each Bond, the stated redemption price at maturity includes all payments on the Bond, except interest payable at least annually over the term of the Bond ( qualified stated interest ). For the Bonds, the original issue discount is the selling price of each Bond originally sold at a price of less than 100% as set forth on the cover hereof. The Bonds originally sold at a price of less than 100% as set forth on the inside cover hereof are the OID Bonds. Under Code 1272 and 1288, original issue discount on tax-exempt bonds accrues on a compound basis. The amount of original issue discount that accrues during any accrual period generally equals (a) the issue price of such OID Bond plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (b) the yield to maturity of such OID Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), less (c) any interest payable on such OID Bond during such accrual period. The amount of original issue discount so accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excluded from gross income for federal income tax purposes, and will increase the owner's tax basis in such OID Bond. Owners of OID Bonds should consult with their individual tax advisors to determine whether they are required to include, for State and local income tax purposes, an amount of interest on the OID Bonds as income even though no corresponding cash interest payment is actually received during the tax year.] [Bonds Purchased at a Premium. Certain maturities of the Bonds have an initial offering price which exceeds the stated redemption price at maturity as set forth on the cover hereof. The excess of the purchase price of a Bond over its stated redemption price at maturity constitutes premium on such Bond. A purchaser of a Bond must amortize any premium over such Bond s term using constant yield principles, based on the purchaser s yield to maturity. As premium is amortized, the amount of tax-exempt interest deemed received by the purchaser and the purchaser s basis in such Bond are reduced by a corresponding amount. The adjustment to a purchaser s tax basis will result in an increase in the gain (or decrease in the loss) to be recognized for federal income purposes upon a sale or disposition of such Bond prior to its maturity. Even though the purchaser s basis is reduced, no federal income tax deduction is allowed. Purchasers of any Bonds at a premium, whether at the time of initial issuance or afterward, should consult with their own tax advisors as to the determination and treatment of premium for federal income tax purposes and state and local tax consequences of owning such Bonds.] Other Tax Consequences. Bond Counsel expresses no opinion regarding other federal or state tax consequences arising with respect to the Bonds. However, prospective purchasers of the Bonds should be aware that there may be tax consequences of purchasing the Bonds other than those discussed under the caption Opinion of Bond Counsel, including the following: (a) Code 265 denies a deduction for interest on indebtedness incurred or continued to purchase or carry the Bonds, except with respect to certain financial institutions (within the meaning of Code 265(b)(5)); (b) with respect to insurance companies subject to the tax imposed by Code 831, Code 832(b)(5)(B)(i) reduces the deduction for loss reserves by 15 percent of the sum of certain items, including interest on the Bonds; (c) interest on the Bonds earned by certain foreign corporations doing business in the United States could be subject to a branch profits tax imposed by Code 884; (d) passive investment income, including interest on the Bonds, may be subject to federal income taxation under Code 1375 for Subchapter S corporations that have Subchapter C earnings and profits at the close of the taxable year, if greater than 25% of the gross receipts of such Subchapter S corporation is passive investment income; and (e) Code 86 of the Code requires recipients of certain Social Security and certain Railroad Retirement benefits to take into account, in determining gross income, receipts or accruals of interest on the Bonds. Purchasers of the Bonds should consult their own tax advisors as to the applicability of these tax consequences. 13

30 UNDERWRITING The Bonds have been sold at public sale by the Issuer to,, (the Underwriter ) on the basis of lowest true interest cost. Three ( ) bids were received by the Issuer. The Underwriter has agreed, subject to certain conditions, to purchase the Bonds at a price equal to 100% of the principal amount of the Bonds, [plus a bid premium of $ ][less a bid discount of $ ]. The Bonds will be offered to the public initially at the prices set forth on the inside cover page of this Official Statement. The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) at prices other than the price stated on the inside cover page hereof and may change the initial offering price from time to time subsequent to the date hereof. In connection with the offering, the Underwriter may overallot or effect transactions which stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 14

31 AUTHORIZATION OF OFFICIAL STATEMENT The preparation of this Official Statement and its distribution has been authorized by the governing body of the Issuer as of the date on the cover page hereof. This Official Statement is submitted in connection with the issuance of the Bonds and may not be reproduced or used as a whole or in part for any other purpose. This Official Statement does not constitute a contract between the Issuer or the Underwriter and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. CITY OF ROELAND PARK, KANSAS By /s/ Adrienne Foster, Mayor [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] 15

32 APPENDIX A INFORMATION CONCERNING THE ISSUER A-1

33 APPENDIX A INFORMATION CONCERNING THE ISSUER FINANCIAL OVERVIEW 2009 Assessed Valuation (1) $73,510, Outstanding General Obligation Bonds (Direct Debt) $3,995,000 Outstanding General Obligation Temporary Notes (Direct Debt) (2) $2,785,000 Total Outstanding General Obligation Debt (Total Direct Debt) $6,780,000 Population (3) 6,960 General Obligation Debt Per Capita $974,14 Ratio of General Obligation Debt to Assessed Valuation 9.223% Outstanding Revenue Bonds $0 Outstanding Certificates of Participation $0 Outstanding Special Obligation Bonds $10,424,058 Lease Obligations $1,575,000 Overlapping General Obligation Indebtedness (4) $7,493,955 Direct Debt and Overlapping General Obligation Indebtedness $14,273,955 Ratio of Direct Debt and Overlapping Debt to Assessed Valuation % (1) Real property, personal property, state assessed and motor vehicle are actual figures released November (2) Includes the Notes, but excludes the notes to be currently refunded with proceeds of the Notes. (3) Johnson County Department of Records and Tax Administration, 2009 estimate. (4) Source: Johnson County Department of Records and Tax Administration; debt as of June 30, Size and Location GENERAL The City of Roeland Park is located in northeast Kansas approximately two miles west of Kansas City, Missouri. The City is one of twenty-one incorporated cities in Johnson County and currently has an estimated population of 6,951 within its 1.64 square mile city limits. The City is surrounded by several other incorporated A-1

34 cities in Johnson County and by the City of Kansas City, Kansas. The City is located in the Kansas City Metropolitan Statistical Area. Government and Organization of the Issuer The City of Roeland Park was incorporated in 1951 and became a City of the second class. Roeland Park has a Mayor-Council-City Administrator form of government. The Mayor is elected on an at-large basis for a term of four years. The Council is comprised of eight members elected from four wards. Each ward elects two councilmembers to four-year terms. The City Administrator is appointed by the Mayor, with approval from the City Council, and acts as its primary agent in accordance with adopted policies. The present elected officials of the City, along with the expiration of their current terms of office, are as follows: Employee Relations Term Name Title Expires Adrienne Foster Mayor 2013 Bill Art Councilmember 2013 Megan England Councilmember 2011 Marek Gliniecki Councilmember 2011 Scott Gregory Councilmember 2011 Toni Hull Councilmember 2011 Mark Kohles Councilmember 2013 Betsy Mellor Councilmember 2013 Robert Meyers, Jr. Councilmember 2013 The City currently has 30 full-time and four part-time employees. There are no organized City employee unions. Employees of the City have never participated in a strike against the City. Pension and Employee Retirement Plans The City participates in the Kansas Public Employees Retirement System (KPERS) which was established by the 1961 Kansas Legislature. There are approximately 235,800 current and former public employees in Kansas who are members of the Kansas Public Retirement System. These members represent over 1,200 state and local agencies and include the state, all counties, all unified school districts, community junior colleges, area vocational technical schools, various cities, and other instrumentalities. All of the City s full-time non-commissioned employees are covered by the KPERS program. The purpose of the KPERS program is to provide an orderly means of financing the pension benefits of retiring public employees and to extend life insurance coverage, long-term disability and service connected death and disability benefits to members and their beneficiaries. KPERS is governed by a nine-member Board of Trustees. The Governor appoints four members to the Board, the Speaker of the House of Representatives and the President of the Senate appoint one member each, two members are elected by the Board members themselves, and the State Treasurer is a member. City employees annually contribute 4% of their gross salary to the System. The City s contribution varies from year to year based upon the annual actuarial valuation and appraisal made by the actuary of the KPERS program. For the 2009 calendar year, the City s contribution will be 6.54% of each employee s gross salary. Kansas Police and Fire Retirement The City has established membership in the Kansas Police and Fire Retirement System (KP&F) for its police and fire personnel. Benefits are determined by total years of service and final average salary. The State of Kansas administers the plan. An actuarial study is made annually and the City s annual contribution is adjusted to meet current fund requirements. Payment of employee retirement benefits is the sole responsibility of KP&F. A-2

35 Police and fire personnel may contribute up to 7.0% of their gross salary. For the 2009 calendar year, the City s contribution will be 13.51% of each employee s gross salary. Population The following table shows the population for the City, Johnson County, and the State of Kansas for selected years from 1970 to All populations shown are U.S. Census figures. Johnson State of Year City (1) County (2) Kansas (3) , ,737 2,818, , ,093 2,802, , ,319 2,775, , ,493 2,755, , ,562 2,744, , ,086 2,688, , ,054 2,477, , ,269 2,364, n/a 220,073 2,249,071 (1) Source: Johnson County Department of Records and Tax Administration for figures; U.S. Census Bureau for figures. (2) Source: U.S. Census Bureau. (3) Source: U.S. Census Bureau. Police and Fire Protection The City provides police protection to its residents. There are currently 18 full-time officers employed by the City. The department utilizes 5 fully equipped police vehicles with 24-hour dispatching service. Johnson County Consolidated Fire District No. 2 provides fire protection to residents of the City and the majority of northeastern Johnson County. Fire District No. 2 is a separate and distinct governmental entity not under the direct control of the governing bodies of the municipalities it serves. The Fire District operates three stations. Equipment used by the Fire District includes five pumper trucks, two ladder trucks, and one hazard truck. The Fire District employs approximately 68 full-time uniformed fire personnel. History and Demographic Characteristics The City of Roeland Park is located in the northeastern portion of rapidly growing Johnson County, Kansas. The County has benefited greatly from its location adjacent to Kansas City, Missouri, growing from a primarily residential community into a diverse economic unit with significant commercial and retail establishments. From a 1960 population of 143,792 to the 2009 U.S. Census Bureau estimate of 542,737, few counties in the country have experienced such a rapid rate of growth. Between 1988 and 1998, U.S. Census Bureau data reports that the number of business establishments located in Johnson County increased more than 37% from 10,944 firms to 14,971. Correspondingly, the total employment in the County increased over 52% from 223,689 to 339,393. The main types of industries in the County are retail trade, financial, professional services, and health related, in descending order of employment. According to the U.S. Department of Commerce, Johnson County residents had per capita personal income of $53,472 in The Kansas average per capita income was $36,525 in Roeland Park was one of the first communities to develop in Johnson County. Even though the majority of new developments in Johnson County is located in the western and southern areas, demand for housing in the City has remained very strong due to affordable home prices and proximity to downtown Kansas City, Missouri and the Country Club Plaza shopping district. In recent years the City has been particularly popular among young homebuyers who seek the location, cost, and educational opportunities available in the City. A-3

36 Business Business within the City consists primarily of retail trade and professional services. The City is also home to small to medium size office buildings that serve as home to professional service providers. Financial services such as insurance companies, banks, and accountants are also well represented among the City s businesses. In addition, the City is adjacent to major transportation corridors, Roe Boulevard, Nall Avenue and Interstate 35. Economic Development The City is land-locked within its present boundaries and is almost fully developed. Therefore, the governing body has a strong focus on ensuring that the City s economic environment remains healthy through redevelopment of older areas and by retaining businesses. The City works closely with the Northeast Johnson County Chamber of Commerce and the Northeast Johnson County Economic Development Council to attract new businesses that mesh well with and enhance the community. In 2005, the City used tax increment financing to spur redevelopment of an approximately 230,000 square foot integrated commercial shopping center known as the Bella Roe Plaza. Bella Roe Plaza is located at the intersection of 50 th Place and Roe Boulevard within the City, and is anchored by a Price Chopper grocery store and a Lowe s Home Improvement Center. The City also created two transportation development districts to finance street and other transportation-related expenses associated with the Bella Roe Plaza project. Unemployment Rate The following table shows the annual unemployment rate trend for Johnson County and the State of Kansas since Johnson County State of Kansas Year % Rate Force % Rate Force , ,496, , ,478, , ,470, , ,475, , ,463, , ,447, , ,425, , ,408, , ,408,600 Source: Kansas Department of Labor and U.S. Bureau of Labor Statistics Education The City of Roeland Park lies within Unified School District #512 (Shawnee Mission Schools), with a total districtwide enrollment of 27,749 for the school year. U.S.D. #512 provides public education to residents of the City through its 35 elementary schools, seven middle schools, and five senior high schools. Bishop Miege High School and St. Agnes Catholic School, both private schools, are also located in the City. Johnson County Community College is located near the City and provides a two-year curriculum and vocation and technical courses of study. The University of Missouri-Kansas, located within minutes of city limits, and the main campus of the University of Kansas, located in Lawrence, Kansas which is approximately 35 miles west of the City, both offer a variety of bachelors to doctorate degrees. A number of smaller private colleges are also located in nearby cities. Transportation As a result of the City s proximity to Kansas City, Missouri and Kansas City, Kansas, all transportation facilities of the metropolitan Kansas City area are available to the residents of Roeland Park. Kansas City s central A-4

37 location is advantageous for commuting to all parts of the United States and has enhanced its development and posture as a major transportation center. A complete range of transportation facilities provides transport-related services. A major highway network serves the metropolitan area. Roeland Park lies adjacent to Interstate 35 and minutes from U.S. Highway 169. The City has an excellent system of well-maintained thoroughfares and streets. Over 200 motor freight carriers offer delivery from the Kansas City area to most locations in the country. Additionally, Kansas City ranks as the second largest rail center in the United States with eleven railroad trunk lines accommodating passenger trains (including five Amtrak) and nearly 300 freight trains daily. The Missouri River provides water transport for the Greater Metropolitan Area. In addition to private and contract carriers, twelve common carriers operate barges on the Missouri River from terminals in Greater Kansas City. The Kansas City International Airport, classified by the Civil Aeronautics Board as a large air traffic hub serves the City. Jet service is available to every part of the United States and overseas, with flight times to either United States coast of approximately three hours. Utilities Kansas City Power & Light supplies electricity to the City. Kansas Gas Service provides natural gas to the City. Telephone service is provided by various telecommunications service providers. Water services are provided by Johnson County Water District No. 1. Sewer services are provided by the Johnson County Unified Wastewater District. Solid waste disposal is contracted by the City for individual property owners, and is handled by private companies on a contractual basis with retail businesses. Medical and Health Facilities The City has access to a wide variety of healthcare services throughout the Kansas City Metropolitan area. Shawnee Mission Medical Center, the University of Kansas Medical Center, and St. Luke s Hospital are all large full-service hospitals located within approximately four miles of the City. Emergency medical services are provided by Johnson County Med-Act, a program administered by the Johnson County Commissioners. Med-Act responds to all types of medical emergencies and has fully equipped medical vehicles based at the two fire stations within the City. Financial Institutions Sixty-two financial institutions are located within Johnson County, Kansas with reported deposits of $14,547 million as of December 31, Recreational, Cultural and Religious Facilities The City offers a variety of recreational opportunities to its residents. There are five public parks maintained by the City encompassing a total of 30 acres. The City entered into an interlocal agreement with the Johnson County Parks and Recreation Commission (the Commission ) for the construction of a new municipal swimming pool. The Commission issued revenue bonds in 1996 to finance such construction and the City s Water Aquatics Center opened in August The Commission leases the Water Aquatics Center to the City. The City also owns and operates a community center located on a ten-acre site adjacent to a municipal park. Numerous activities and sporting clubs are available through the Johnson County Parks and Recreation Commission. The Kansas City metropolitan area is home to many nationally recognized attractions, including the American Royal, the Country Club Plaza shopping area, the Kansas City Zoo, the Nelson-Atkins Museum of Art, Starlight Theater, Union Station-Science City Museum, Worlds of Fun amusement park, and Oceans of Fun water park. Professional sports teams include the Kansas City Chiefs football team, the Royals baseball team, and the Wizards major league soccer team. The Kansas City Symphony, Lyric Opera, and State Ballet of Missouri present A-5

38 annual seasons in Kansas City. Johnson County Community College, located southwest of the City, has an active performing arts center that hosts various larger cultural events. Johnson County Library operates a full-service branch within the City which includes book lending, photocopying, browsing room with current periodicals, study rooms, reference room, children s section, exhibits and many other amenities. Three religious institutions are located in the City, including two protestant churches and one Catholic church. Current Indebtedness DEBT SUMMARY The following is an overview of the City s outstanding indebtedness by classification as of the issue date of the Notes. Outstanding General Obligation Bonds Date Issued Purpose Amount of Issue Final Maturity Amount Outstanding 03/15/2003 Refunding and Improvements $1,625,000 12/01/2012 $535,000 01/01/2004 Refunding 2,080,000 12/01/ ,000 8/19/2008 Improvements $4,185,000 12/01/2023 3,345,000 Total General Obligation Bonds Outstanding as of August 19, 2010 = $3,995,000 Outstanding Temporary Notes Date Issued Purpose Amount of Issue Final Maturity Amount Outstanding* 11/24/2009 Temporary Notes, Series 2009-B 5,800,000 09/01/2011 $5,800,000 05/19/2010 Temporary Notes, Series 2010-A 660,000 05/01/ ,000 Total General Obligation Temporary Notes Outstanding as of August 19, 2010 = $2,785,000* * $3,675,000 principal amount of the City s General Obligation Temporary Notes, Series 2009-B will be redeemed on August 21, 2010 with proceeds of the Bonds and other funds of the City. Outstanding Utility Revenue Bonds None. Outstanding Lease Purchase Obligations Date Issued Purpose Final Maturity Amount Outstanding 01/01/2010 City Pool 2018 $1,575,000 Total Lease Purchase Obligations Outstanding as of August 19, 2010 = $1,575,000 Outstanding Certificates of Participation None. A-6

39 Outstanding Special Obligation Bonds Date Amount of Final Amount Issued Purpose Issue Maturity Outstanding 02/01/2000 Tax Increment Revenue Bonds (Valley State Bank $ 695,000 02/01/2020 $451,340 Project), Series /01/2000 Tax Increment Revenue Bonds (The Boulevard Apartments Project), Series ,887 12/01/ ,718 02/03/2005 Tax Increment Revenue Bonds (Roeland Park 4,495,000 08/01/2024 4,180,000 Redevelopment L.L.C. Project) 11/09/2005 Transportation Development District Sales Tax 3,555,000 12/01/2025 3,070,000 Revenue Bonds (TDD #1 Project), Series /05/2006 Transportation Development District Sales Tax 1,090,000 12/01/ ,000 Revenue Bonds (TDD #1 Project), Series 2006-A 01/05/2006 Transportation Development District Sales Tax Revenue Bonds (TDD #2 Project), Series 2006-B 1,690,000 12/01/2025 1,565,000 Total Special Obligation Bonds Outstanding as of August 19, 2010 = $10,424,058 Overlapping Debt The following table shows the outstanding general obligation bonded debt for jurisdictions whose boundaries overlap those of the City and the amount of such debt that is applicable to the City. The percentage of debt applicable to the City is determined by the Johnson County Clerk s Office and is calculated by dividing the total assessed valuation of the City by the total assessed valuation of such overlapping jurisdictions. Outstanding General Obligation Bonded Indebtedness Of Overlapping Jurisdictions Estimated Share of the City Jurisdiction Amount Outstanding Amount Percentage Johnson County $266,070,000 $2,234, % Johnson County Parks and Recreation 3,625,000 30, % Johnson County Consolidated Fire District No. 2 1,375, , % Unified School District No ,370,000 5,105, % Total = $507,440,000 $7,493,955 Source: Johnson County Department of Records and Tax Administration. All debt as of June 30, A-7

40 Historical Debt Information years. The following table shows historical outstanding general obligation bonds for the City during the following Bonds Debt to Debt Outstanding Assessed Per Year December 31 Valuation Capita 2009 $4,630, % $ ,065, ,175, ,780, ,370, ,940, ,460, ,785, ,330, Source: City Legal Debt Limits Cities within Kansas are permitted to issue bonds in an aggregate amount not to exceed 30% of the total assessed valuation of the city. Bonds issued for the purpose of improving, acquiring, enlarging, or extending municipal utilities, including storm sewers; bonds issued to pay the cost of improvements to intersections and streets in front of city or school district property; bonds for bridges as authorized by a vote of the electors of a city; bonds issued to refund outstanding bonds; and bonds payable from revenue sources other than the general taxing authority of the city are not included in total aggregate debt for purposes of computing a city s debt limitation. Annual Debt Payments Outstanding Bonds Series 2010 Bonds Year Principal Interest Principal Interest Total , , , , , , , , , , , , , , , , , , , , , , , , , , , , Total = $5,360, $1,396, Future Indebtedness The City plans to issue additional general obligation bonds in 2012 to provide permanent financing for the projects financed with the Series 2009-B Notes. A-8

41 Debt Payment Record The City has always met the principal and interest requirement on all outstanding bonds and notes when due and payable. Assessed Valuation FINANCIAL INFORMATION The following table gives the assessed valuation of the City in the years indicated. State Equalized Real Personal Assessed Motor Tangible Year Estate Property Utilities Vehicle Valuation 2010* $60,760,636 $1,222,051 $1,807,307 $7,385,353 $71,175, ,484,827 1,568,815 1,836,097 7,621,093 73,510, ,110,547 2,156,645 1,909,976 7,929,985 78,107, ,233,496 2,564,167 1,939,678 8,024,671 78,762, ,896,223 3,021,150 1,814,140 8,213,547 76,945, ,887,259 2,632,802 1,854,129 8,260,636 71,634, ,328,144 1,495,671 1,770,132 8,144,158 67,738, ,502,678 1,547,944 1,707,216 8,144,158 65,901, ,247,556 1,671,454 1,698,026 8,058,458 62,675, ,101,582 1,918,636 1,649,352 7,844,945 60,514, ,459,710 1,897,395 1,707,975 7,622,759 55,687,839 Source: City; Johnson County Department of Records and Tax Administration. * Estimated as of June 30, Estimated Actual Valuation Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by the Kansas Department of Revenue (see FINANCIAL INFORMATION - Property Assessment Rates ), and estimated actual valuation figures provided by the Johnson County Appraiser s Office, the following table provides estimated actual valuations for the City in the years indicated. Appraised Year Taxable Value 2009 $509,263, ,031, ,416, ,573, ,420, ,522, ,003, ,872, ,443, ,753,401 A-9

42 Largest Taxpayers The following table lists the ten largest taxpayers in the City, their 2009 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the City Assessed Valuation % of Total City Valuation Company Type of Business TMM Roeland Park LLC Property Developer $2,457, % Bella Roe 2/3/6 Retail Stores $2,146, % Bella Roe 1 and 4 Retail Stores $2,097, % Boulevard Apartments Apartment $1,569, % Walgreens Retail Sales & Prescription Drugs $574, % Meredith Properties Inc. Convenience Store $451, % Mission Bank Commercial and Personal Banking $366, % Aldi, Inc. Grocery Store $351, % Kansas Petroleum, LLC Convenience Store $327, % JL Group Holdings I, LLC Fast Food Restaurant $321, % Source: City Tax Collections Real estate property tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before June 20 of the following year. Taxes that are unpaid on the due dates are penalized at the rate of 12% per annum (1% pro-rated monthly) until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold to the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold to the County and not redeemed by the delinquent taxpayer within two years after the tax sale are subject to foreclosure sale, except properties defined as homesteads under the Kansas Constitution, which are subject to sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle s annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the years shown: Tax Taxes Current Tax Collections Tax Collections Year Levied Amount % Amount % 2009 $1,112,550 $1,092, % $1,108, % ,221,217 1,204, ,211, ,196,212 1,176, ,193, ,222,863 1,205, ,225, ,170,003 1,150, ,187, ,137,585 1,117, ,143, , , , , , , , , , , , , Source: City A-10

43 Tax Levies The City may levy taxes in accordance with the requirements of its adopted budget. The County Clerk determines property tax levies based upon the assessed valuations provided by the Appraiser and spreads the levies on the tax rolls. The following table gives the total tax levy for all taxing jurisdictions per $1, assessed valuation of the City for the last five years. Jurisdiction State of Kansas $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 $1.500 Johnson County Johnson County Library Johnson County Parks Wastewater Fire District City of Roeland Park U.S.D Johnson County Community College Total = Source: City Sales Tax Collections The following table shows receipts for citywide sales tax and the City s portion of the countywide local option sales tax in recent years. Source: City Citywide Sales and Use City s Portion of Countywide Year Tax Receipts Sales and Use Tax Receipts 2009 $1,697,927 $498, ,727, , ,683, , ,643, , ,414, , ,262, , ,240, , ,085, , ,121, , ,124, ,859 A-11

44 Building Permits The following table shows the total number of permits and valuation of building permits authorized by the City for construction projects during the years indicated. Budgeting Procedures Total Number Total Dollar Year of Permits Value (in millions) $1,703, ,219, ,328, ,059, ,642, ,341, ,494, ,154, ,789, ,704,900 Applicable Kansas statutes require that budgets be legally adopted for all funds (including debt service and enterprise funds) unless exempted by a specific statute. All budgets are prepared utilizing the modified accrual basis further modified by the encumbrance method of accounting. For example, commitments such as purchase orders and contracts, in addition to disbursements and accounts payable, are recorded as expenditures. The statutes provide that the budget for the succeeding calendar year must be prepared on or before August 1 and published on or before August 5 of each year. A public hearing is required to be held on or before August 15, with the final budget being adopted on or before August 25 of each year. Original appropriations may be modified by supplemental appropriations and transfers among budget categories. The City Council must approve all significant changes. Kansas law prohibits cities and other governmental units from creating indebtedness unless there is money on hand in the proper fund and unencumbered by previous commitments with which to pay the indebtedness. The execution of a contract, or the issuing of a purchase order, automatically encumbers the money in the fund for the payment of the amount represented by the commitment. It makes no difference that the amount may not have to be paid until more moneys are in the fund or until the following year. An exception to this cash basis law is the issuance of debt, in the form of bonds, notes, or warrants, pursuant to statutory authority, referendum or by the State Board of Tax Appeals. In the event debt is issued, funds need not be on hand for future payments. Property Valuations The determination of assessed valuation and the collection of property taxes for all political subdivisions in the state of Kansas is the responsibility of the various counties under the direction of state statutes. The Johnson County Appraiser's office determines the assessed valuation that is to be used as a basis for the mill levy on property located in the City. All property in the state of Kansas has been reevaluated as a result of a bill passed by the 1985 session of the Kansas Legislature requiring county appraisers to reassess property for tax purposes, with an effective date of January 1, In conjunction with the November 1986 general election, Kansas voters approved a proposition to modify the state constitution with respect to classification of property for ad valorem taxation. For taxable years 1989 through 1992, real and personal property was divided into classes and assessed at different percentages of fair market value. Land devoted to agricultural use was valued on the basis of its agricultural income or productivity and assessed at 30% of the value so obtained; commercial and industrial machinery and equipment was assessed at 20% of its fair market value; residential property and vacant lots were assessed at 12% of fair market value; and all A-12

45 other property was assessed at 30% of fair market value. Farm machinery and equipment, merchants' and manufacturers' inventories, and livestock were exempt from property taxation. In conjunction with the November, 1992 general election, Kansas voters approved a proposition to further modify the state constitution with respect to classification of property for ad valorem taxation. The modified classification provisions shall be effective for assessment and taxation of property on and after January 1, 1993 and each year thereafter. Property is divided into two classes, real property and personal property. Real property is divided into seven subclasses; there are six subclasses of personal property. The real property (Class 1) subclasses are: (i) real property used for residential purposes including multi-family mobile or manufactured homes and the real property on which such homes are located, assessed at 11.5%, (ii) agricultural land, valued on the basis of agricultural income or productivity, assessed at 30%, (iii) vacant lots, assessed at 12%, (iv) real property, owned and operated by a not-for-profit organization not subject to federal income taxation, pursuant to Section 501 of the Internal Revenue Code, assessed at 12%, (v) public utility real property, except railroad real property, assessed at the average rate that all other commercial and industrial property is assessed, assessed at 33%, (vi) real property used for commercial and industrial purposes and buildings and other improvements located on land devoted to agricultural use, assessed at 25%, and (vii) all other urban and real property not otherwise specifically classified, assessed at 30%. Tangible personal property (Class 2) subclasses are: (i) mobile homes used for residential purposes, assessed at 11.5%, (ii) mineral leasehold interests, except oil leasehold interests, the average daily production from which is 5 barrels or less, and natural gas leasehold interests, the average daily production from which is 100 mcf or less, which shall be assessed at 25%, assessed at 30%, (iii) public utility tangible personal property, including inventories thereof, except railroad personal property, including inventories thereof, which shall be assessed at the average rate all other commercial and industrial property is assessed, assessed at 33%, (iv) all categories of motor vehicles not defined and specifically valued and taxed pursuant to law enacted prior to January 1, 1985, assessed at 30%, (v) commercial and industrial machinery and equipment which if its economic life is 7 years or more, shall be valued at its retail cost, when new, less seven-year straight-line depreciation, or which, if its economic life is less than 7 years, shall be valued at its retail cost when new, less straight-line depreciation over its economic life, except that, the value so obtained for such property, notwithstanding its economic life and as long as such property is being used, shall not be less than 20% of the retail cost when new of such property, assessed at 25%, and (vi) all other tangible personal property not otherwise specifically classified, assessed at 30%. All property used exclusively for state, county, municipal, literary, educational, scientific, religious, benevolent and charitable purposes, farm machinery and equipment, merchants' and manufacturers' inventories, other than public utility inventories included in subclass (3) of class 2, livestock, and all household goods and personal effects not used for the production of income, shall be exempted from property taxation. The 2006 Kansas Legislature exempted from all property or ad valorem property taxes levied under the laws of the State all commercial, industrial, telecommunications and railroad machinery and equipment acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30, 2006 for the purpose of expanding an existing business or creation of a new business. A-13

46 APPENDIX B FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS (FOR THE FISCAL YEAR ENDED 12/31/09) McGladrey & Pullen, LLP, our independent auditor, has not been engaged to perform, and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. McGladrey & Pullen, LLP, also has not performed any procedures relating to this official statement. B-1

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