THURSDAY, JUNE 17, 2010

Transcription

1 NOTICE OF SALE $975,000 (subject to change) GENERAL OBLIGATION BONDS SERIES 2010-A OF CITY OF LANSING, KANSAS (PAYABLE FROM UNLIMITED AD VALOREM TAXES) Bids. Written bids will be received by the City Finance Director of City of Lansing, Kansas (the City ), on behalf of the governing body at the address set forth below, until 11:00 a.m., Central Standard Daylight Savings Time on: THURSDAY, JUNE 17, 2010 for the purchase of $975,000 principal amount General Obligation Bonds, Series 2010-A (the Bonds ) of the City. All bids will be publicly opened and read at that time and place and will be presented to the City s governing body during its regularly scheduled meeting that same day at 7:00 PM, or as soon thereafter as the agenda allows, whereupon the governing body will take action upon the bids received at that time. No oral or auction bids will be considered. THE BONDS Terms of the Series 2010-A Bonds. The Bonds will be dated July 1, 2010, (the Dated Date ) and will mature serially on September 1 in the years and in the amounts set forth below. Principal Principal Due Amount Due Amount 2011 $45, $65, , , , , , , , , , , , , ,000 The Bonds will bear interest from the date thereof at rates to be determined when the Bonds are sold as provided herein, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, 2011 (the Interest Payment Dates ). The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. Place of Payment and Bond Registration. 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 upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the owners thereof whose names are on the registration books of the Bond Registrar as of the fifteenth day (whether or not a business day) next preceding each Interest Payment Date or in the case of an interest payment to any owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such owner upon written notice given to the Bond Registrar by such owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address (which shall be in the continental United States). The Bonds will be registered pursuant to a plan of registration approved by the City and the Attorney General of the State of Kansas. Book-Entry Only System. The Bonds will initially be registered in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York, to which payments of principal of and interest on the Bonds will be made. Individual purchases of Bonds will be made in book-entry form only. Purchasers will not receive certificates representing their interest in Bonds purchased. It is anticipated that during the terms of the Bonds, Depository Trust Company will make book-entry transfers among its participants and receive payments on the Bonds from the City and 1

2 transmit payment of principal of, and interest on, the Bonds to its Participants for subsequent distribution to beneficial owners of the Bonds. Please refer to the Preliminary Official Statement for the Bonds and the section titled Book- Entry Only System for Bonds for a description of DTC practices with respect to book-entry securities. Optional Redemption. At the option of the City, the Bonds maturing in the years 2019 and thereafter may be called for redemption and payment prior to maturity on September 1, 2018, or thereafter, in whole, or in part (selection of such bonds to be designated by the City 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 2019 to 2030 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 maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make an election by completing the applicable paragraph on the Bond Form. Redemption Procedures. Whenever the City is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than $5,000, if less than all of the Bonds then outstanding are to be called for redemption, treat each $5,000 of face value of each such fully registered Bond as though it were a separate Bond in the denomination of $5,000. As long as the book-entry system applies to the Bonds, notice of redemption is to be mailed solely to the Depository Trust Company not less than 30 days prior to the date set for redemption in accordance with the procedures set forth in the letter of representations among the City and Depository Trust Company. See Book-Entry Only System for Bonds in the Preliminary Official Statement for a description of Depository Trust Company s practices with respect to redemption notices. If the book-entry only system is discontinued, the following notice of redemption procedures will apply: unless waived by any owner of the Bonds to be redeemed, if the City elects to call any of the Bonds for redemption and payment prior to the maturity thereof, the City shall cause the Bond Registrar to give written notice of its intention to call and pay said Bonds on a specified date, the same being described by maturity, said notice to be mailed by United States first class mail addressed to the owners of said Bonds, to be mailed not less than 30 days prior to the date fixed for redemption. The City 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 is called for redemption and payment, 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 specified redemption price. Authority, Purpose and Security. The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the state of Kansas, including particularly K.S.A a, K.S.A et seq., K.S.A & 12-6a01 et seq. inclusive, all as amended and supplemented, for the purpose of paying a portion of the cost of certain sanitary sewer improvements, all located within the City. The Bonds shall be general obligations of the City payable as to both principal and interest in part from special assessments levied upon property benefited by the sanitary sewer improvements and in part from lawfully available funds of the City, and if not so paid then from ad valorem taxes which may be levied without limitation as to rate or amount upon all the tangible taxable property, real and personal, with the City. The full faith, credit and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due. ADDITIONAL SALE PARTICULARS Conditions of Bids-Bonds. 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: The same rate shall apply to all Bonds of the same maturity year. Each interest rate specified shall be a multiple of 1/8 or 1/20 of 1%. No interest rate may exceed a rate equal to the index of the 10-year Treasury Bond published by THE BOND BUYER, in New York, New York, on the Monday preceding the day on which the Bonds are sold, plus 5%. The difference between the highest rate specified and the lowest rate specified cannot exceed 2.500%. No bid of less than the entire par value of the Bonds and accrued interest thereon to the date of delivery will be considered and no supplemental interest payments 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 premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid and 2

3 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. Submission of Bids. Bids may be submitted in sealed envelopes addressed to the City Finance Director, and marked Proposal for General Obligation Bonds, Series 2010-A or by telefacsimile, as described below, or, via the Parity electronic bid system. Bids may be submitted by mail or delivered in person to the City Finance Director and all bids must be received no later than 11:00 a.m. C.S.D.S.T., on Thursday, June 17, Telefacsimile bids must be submitted to (913) , Attn: Jaslyn Frett, City Finance Director. Bidders who wish to confirm receipt by the City of a telefacsimile bid may telephone the City Finance Director at (913) The City will not accept responsibility for inaccurate bids submitted by telefacsimile transmission, nor for the inability to access the facsimile number before the indicated sale time. The City s telefacsimile facilities are limited and bidders using them should plan to allow time to compensate for this limitation. The deadline for telefacsimile bids is based on the time the transmission is printed through the City s telefacsimile facilities as opposed to the time the transmission is sent by the bidder. Bidders are advised to allow time for the transmission to be received. Bids received after the deadlines shown above or which fail to comply with the other requirements of this paragraph may not be considered by the City. Electronic bids via PARITY must be submitted in accordance with its Rules of Participation, as well as the provisions of this Notice of Note Sale. If provisions of this Notice of Note Sale conflict with those of PARITY, this Notice of Note Sale shall control; this includes the deadline for submission of Bids. (Information about the electronic bidding services of PARITY may be obtained from i-deal LLC at 1359 Broadway, 2 nd Floor, New York, New York ( ) and from the following website: Good Faith Deposit for the Bonds. Each bid for the Bonds shall be accompanied by a cashier s or certified check drawn on a bank located in the United States of America, or a financial surety bond (the Surety Bond ) in the amount of 2% of the principal amount of the Bonds, payable to the order of the City to secure the City from any loss resulting from the failure of the bidder to comply with the terms of its bid. If a Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Kansas, and such bond must be submitted to the City before the bid opening or accompany the bid. The Surety Bond should identify each bidder whose good faith deposit is guaranteed by the Surety Bond. If the Bonds are awarded to a bidder using a Surety Bond then the successful bidder will be required to submit its good faith deposit to the City by wire transfer of such amount as instructed by the City or delivered in the form of a cashier s check, in either case, not later than 1:00 p.m. C.S.D.S.T. on the business day following the sale. If the good faith deposit is not received by that time, the Surety Bond will be drawn on by the City to satisfy the good faith deposit requirement. Good faith checks submitted by unsuccessful bidders will be returned by regular mail, unless the bidder makes other arrangements. If a bid is accepted, the good faith deposit will be held by the City until the bidder has complied with all of the terms and conditions of this Notice at which time the good faith deposit will be returned to the successful bidder or deducted from the purchase price of the Bonds, at the option of the City. If a bid is accepted but the City fails to deliver the Bonds to the bidder in accordance with the terms and conditions of this Notice, the good faith deposit will be returned to the bidder in complete satisfaction of all obligations due to the bidder. If a bid is accepted but the bidder defaults in the performance of any of the terms and conditions of this Notice, the good faith deposit will be cashed by the City, and, the City reserves the right to pursue any and all actual or consequential damages as result of the bidder s default. No interest will be paid upon the successful bidder s good faith deposit. Basis of Award. 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 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 of the Issuer. The Issuer or its Financial Advisor 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 3

4 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 City reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Bid Forms. All bids must be made on the forms which accompany this Notice. Additional bid forms may be obtained from George K. Baum & Company, the City s Financial Advisor, or from the City Finance Director. No additions or alterations in such forms may be made, and any erasures thereon may cause rejection of any bid. Bond Rating. Moody s Investors Service has assigned A1 rating to the Bonds and reaffirmed a rating of A1 to the City s outstanding general obligation bonds. Any explanation as to the significance of such rating may be obtained only from the rating agency. Ratings are not recommendations to buy, sell, or hold the Bonds, and such rating may be subject to revision or withdrawal at any time by the rating agency. Any downward revision or withdrawal of the rating may have an adverse affect on the market price of the Bonds. CUSIP Numbers. It is anticipated that CUSIP identification numbers will be printed on or assigned to the Bonds, but neither the failure to print such number on or assign such number to any Bond nor any error with respect thereto will 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 the purchase contract. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the City. Delivery and Payment. The City will pay for printing the Bonds and will deliver the same properly prepared, executed and registered without cost to the successful bidder through the facilities of the Depository Trust Company in New York, New York, on or about July 8, Delivery elsewhere will be made at the expense of the successful bidder. The successful bidder will be furnished with one 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 must be made in federal reserve funds or other immediately available funds subject to use by the City by 9:00 a.m., C.S.D.S.T on the day of delivery. Certification as to Offering Prices. To provide the City 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 Bond Counsel no later than noon June 21, 2010, a certificate regarding the issue price of the Bonds (as defined in Section 148 of the Code), reflecting the initial offering prices (excluding accrued interest and expressed as dollar prices) at which a substantial amount (i.e., 10% or more) of the Bonds of each maturity have been or are expected to be sold to the public. Continuing Disclosure. The City (the Obligated Person ) will agree in the resolution authorizing the Bonds to provide or cause to be provided, in accordance with the requirements of Rule 15c2-12 (the Rule ) promulgated by the Securities and Exchange Commission, (i) on or prior to September 15 of each year, certain annual financial information and operating data, including audited financial statements for the preceding fiscal year, generally consistent with the information contained or cross-referenced in the Official Statement, (ii) timely notice of the occurrence of certain material events with respect to the securities and (iii) timely notice of a failure by an obligated person under the Rule (of which the Obligated Person has knowledge) to provide the required annual financial information on or before the date specified in (i) above. The Successful Bidder(s) Underwriter(s) s obligation to purchase the Bonds shall be conditioned upon its receiving, at or prior to the delivery of the Bonds, in form and substance reasonably satisfactory to the Underwriter(s), evidence that the Obligated Person has made the continuing disclosures undertaking set forth above in a written agreement or contract for the benefit of the owners. Official Statement. The City has prepared a Preliminary Official Statement, deemed final by the City except for the omission of certain information as provided in Securities and Exchange Commission Rule 15c2-12, copies of which accompany this Notice and which also may be obtained from the Clerk or from Bond Counsel. Upon the sale of the Bonds the City will furnish the successful bidder(s), within seven business days of the award of the bid, 30 copies without additional cost. Additional copies may be ordered by the successful bidder at its expense. Assessed Valuation and Indebtedness. The total equalized assessed valuation of the taxable tangible property within the City for computation of bonded debt limitations for the year 2009 is $84,698, The total general obligation bonded indebtedness of the City as of the date of the Bonds (including the Bonds being sold) is $12,910,000. The City 4

5 has Temporary Notes outstanding in the amount of $1,210,000 all of which will be paid with Bond proceeds and other available funds. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of Robert J. Perry, Esq., Auburn, Kansas, Bond Counsel, which opinion will be furnished and paid for by the City and delivered to the successful bidder when the Bonds are delivered. The 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 the exclusion of interest on the Bonds from computation of Kansas adjusted gross income for individuals. Please refer 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 City Finance Director or from George K. Baum & Company, 4801 Main Street, Suite 500, Kansas City, Missouri, 64112, DATED June 1, CITY OF LANSING, KANSAS /s/ Jaslyn Frett Jaslyn Frett, City Finance Director 800 First Terrace Lansing, Kansas (913) (913) (fax) 5

6 OFFICIAL BID FORM PROPOSAL FOR THE PURCHASE OF GENERAL OBLIGATION BONDS, SERIES 2010-A CITY OF LANSING, KANSAS TO: Jaslyn Frett, Director of Finance Tax Identification No June 17, 2010 City of Lansing, Kansas For $975,000 principal amount of General Obligation Bonds, Series 2010-A, of City of Lansing, Kansas, to be dated July 1, 2010, as described in your Notice of Sale, the Bonds will bear interest as follows: Maturity Principal Interest Maturity Principal Interest September 1 Amount Rate September 1 Amount Rate 2011 $45,000 % 2019 $65,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % we will pay par value of the Bonds plus accrued interest to the date of delivery, plus a total premium in the amount set forth below. Total interest cost to maturity at the rates specified... $ Total premium (if any)... $ Net interest cost... $ True Interest Cost... % The Bidder elects the following Term Bonds subject to mandatory redemption as set forth above: Maturity Date: Years: Principal Amount: September 1, to $ September 1, to $ September 1, to $ This proposal is subject to all terms and conditions contained in said Notice of Sale, and if we are the successful bidder, we will comply with all the provisions contained in the Notice of Sale. A cashier s check or a qualifying financial surety bond in the amount equal to two percent (2%) of the principal amount of the Bonds payable to the order of City of Lansing, Kansas, accompanies this proposal as an evidence of good faith. The acceptance of this proposal by the City shall constitute a contract between the City and the successful bidder. If this information is received by telefacsimile, the telefacsimile and the originally executed bid form submitted to the City by the bidder shall together constitute the bid, and the bidder authorizes the City to transfer such information to the originally executed bid form or to attach the facsimile to such bid form and to seal such bid prior to the bid opening. [LIST ACCOUNT MEMBERS ON REVERSE] Submitted by: By: Telephone No. ACCEPTANCE The above proposal is accepted by action of the City Council on June 17, Attest: Sunshine Petrone, Clerk (Seal) Kenneth W. Bernard, Mayor NOTE: No additions or alterations in this proposal form shall be made, and any erasures may cause rejection of any bid. Sealed bids may be filed with the City, in the manner described in the Notice of Sale, at or prior to the deadlines stated therein. Any bid received after such time will be returned to the bidder unopened.

7 Account Members:

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9 PRELIMINARY OFFICIAL STATEMENT DATED MAY 20, 2010 This Preliminary Official Statement and the information contained herein are subject to completion and amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the 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. This Preliminary Official Statement is intended solely for solicitation of initial bids to purchase the Bonds. In the opinion of Robert J. Perry, Esq., Bond Counsel, under existing law and assuming continued compliance with certain requirements of the Internal Code of 1986, as amended (the Code ), the interest on the Bonds [(including any original issue discount properly allocable to the owners 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 exempt from Kansas income taxation for individuals. The Bonds are designated qualified tax-exempt obligations within the meaning of Section 265(b)(3) of the Code. See LEGAL MATTERS - Opinion of Bond Counsel herein. New Issue Moody s Rating- A1 Book-Entry Only Bank Qualified Dated: July 1, 2010 $975,000 (subject to change) CITY OF LANSING, KANSAS GENERAL OBLIGATION BONDS SERIES 2010-A Due: As Shown Herein The General Obligation Bonds, Series 2010-A (the Bonds ) will be issued by the City of Lansing, Kansas (the City or the Issuer ) as fully registered bonds in the denominations of $5,000 or any integral multiple thereof. The Bonds will be registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company ( DTC ), New York, New York, to which payment of principal and interest will be made. Individual purchases of the Bonds will be made in book-entry only form. Purchasers will not receive certificates representing their interests in Bonds purchased. Principal of the Bonds will be payable on each September 1 in the years shown herein. Interest on the Bonds will be payable on each March 1 and September 1, beginning on March 1, Principal and interest on the Bonds will be paid from moneys available therefore under the Bond Resolution (herein defined) by the State Treasurer of Kansas, as paying agent and registrar, referred to hereinafter as the Paying Agent and Registrar. Base CUSIP (1) Maturity Amount Rate Yield $45, , , , , , , * 65,000 MATURITY SCHEDULE Base CUSIP (1) Maturity Amount Rate Yield * $65, * 70, * 70, * 75, * 75, * 80, * 80,000 *The Bonds maturing on or after September 1, 2019 are subject to optional redemption prior to maturity on September 1, 2018 or thereafter, in whole or in part, at any time at a price of 100% of the principal amount of Bonds being redeemed plus accrued interest to the date of redemption. [The Term Bonds are also subject to mandatory redemption.] See THE BONDS Redemption Provisions herein. 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 becomes due. See THE BONDS - Security for the Bonds herein. The Bonds are offered when, as, and if issued by the Issuer and received by the Underwriter, subject to the approval of legality by Robert J. Perry, Esq., Bond Counsel. It is expected that the Bonds will be available for delivery through the facilities of DTC on or about July 8, BIDS FOR THE PURCHASE OF THE BONDS WILL BE RECEIVED PURSUANT TO THE NOTICE OF BOND SALE: On or before 11:00 a.m., Central Daylight Time On Thursday, June 17, 2010 (1) 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 Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth above. THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.

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11 CITY HALL 800 1st Terrace Lansing, Kansas Telephone (913) CITY COUNCIL Kenneth W. Bernard, Mayor Andi Pawlowski, Council President Donald Studnicka, Council Member Delmar Dee Hininger, Jr., Council Member Harland Russell, Council Member Janette Labbee-Holdeman, Council Member David Trinkle, Jr., Council Member Tom Smith, Council Member Billy Blackwell, Council Member ADMINISTRATIVE OFFICIALS Michael W. Smith, City Administrator Jaslyn Frett, Finance Director Sunshine Petrone, City Clerk CITY ATTORNEY Greg Robinson, Esq. Lansing, Kansas BOND COUNSEL Robert J. Perry, Esq. Auburn, Kansas CERTIFIED PUBLIC ACCOUNTANT Wendling Noe Nelson & Johnson LLC Topeka, Kansas FINANCIAL ADVISOR George K. Baum & Company Kansas City, Missouri

12 No person has been authorized by the Issuer or the Successful Bidder to give any information or to make any representations with respect to the Bonds to be issued, other than those contained in this Official Statement, and if given or made, such other information or representations not so authorized must not be relied upon as having been given or authorized by the Issuer or the Successful Bidder. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of 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 contained herein has been furnished by the Issuer and other sources which are believed to be reliable; however, such information is not guaranteed as to accuracy or completeness. All quotations from and summaries and explanations of provisions of laws and documents herein do not purport to be complete and reference is made to such laws and documents for full and complete statements of their provisions. Information, estimates and expressions of opinion herein are subject to change without notice and neither the delivery or this Official Statement nor any sale of the Bonds, shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the respective dates as of which information is given herein. TABLE OF CONTENTS Page INTRODUCTION... 1 General... 1 Additional Information... 1 THE BONDS... 2 Description... 2 Redemption Provisions... 2 Designation of Paying Agent and Bond Registrar 3 Method and Place of Payment of the Bonds... 3 Payments Due on Saturdays, Sundays, and Holidays 4 Registration, Transfer, and Exchange of Bonds... 4 Mutilated, Lost, Stolen or Destroyed Bonds... 4 Nonpresentment of Bonds... 4 Authority for the Bonds... 5 Security for the Bonds... 5 THE DEPOSITORY TRUST COMPANY... 5 Book-Entry Bonds and Notes: Securities Depository... 7 THE FINANCING PLAN... 8 The Projects... 8 SOURCES AND USES OF FUNDS... 8 FINANCIAL OVERVIEW... 9 CITY OF LANSING, KANSAS Location and Size Organization and Government Leavenworth County Fire District # Kansas Public Employees Retirement System (KPERS) Kansas Police and Fire Retirement (KP&F) Population Economy Major Employers Unemployment Educational Facilities Transportation and Communication Facilities Public Utilities Medical and Health Facilities Banking Institutions Recreational Facilities Page DEBT STRUCTURE Current Indebtedness Overlapping Indebtedness Annual General Obligation Bond Payments Legal Debt Limits Future Borrowing Plans Debt Payment Record FINANCIAL INFORMATION Property Valuation Estimated Actual Valuation Largest Taxpayers Property Tax Collections Sales and Use Tax Property Tax Levies Building Permits Budgeting Procedures Appraisal and Assessment Procedures Property Assessment Rates Equalization Ratios LEGAL MATTERS TAX MATTERS RATING FINANCIAL ADVISOR UNDERWRITING ABSENCE OF MATERIAL LITIGATION CONTINUING DISCLOSURE COVENANT AUTHORIZATION OF OFFICIAL STATEMENT 22 APPENDIX A Financial Statements

13 $975,000 (subject to change) CITY OF LANSING, KANSAS GENERAL OBLIGATION BONDS SERIES 2010-A INTRODUCTION General This Official Statement is provided for the purpose of presenting certain information in connection with the issuance by the City of Lansing, Kansas (the Issuer and the City ), of its $975,000 (subject to change) General Obligation Bonds, Series 2010-A (the Bonds ) dated July 1, The Bonds are being issued to provide long-term financing for public street and sanitary sewer improvements, and will also pay the costs associated with the issuance of the Bonds. See THE FINANCING PLAN herein. 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 becomes due. See THE BONDS - Security for the Bonds herein. APPENDIX A, containing selected financial data relating to the Issuer, is an integral part of this Official Statement and should be read in its entirety. All financial and other information presented herein has been compiled by the City s Financial Advisor, George K. Baum & Company, Kansas City, Missouri (the Financial Advisor ). Information has been provided by the Issuer unless otherwise indicated. The presentation of information herein 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. Bond Counsel has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described in the section titled LEGAL MATTERS, and accordingly expresses no opinion as to the accuracy or sufficiency of any other information contained herein. Additional Information Additional information regarding the Issuer or the Bonds may be obtained from George K. Baum & Company, 4801 Main Street, Kansas City, Missouri 64112,

14 THE BONDS Description The Bonds will be issued in the principal amount shown on the front cover, will be dated July 1, 2010, and will consist of fully registered book-entry only bonds without coupons. When issued, the Bonds will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ( DTC ). Purchases of the Bonds will be made in book-entry only form as described below (without certificates), in the denomination of $5,000 or any integral multiple thereof. The Bonds will mature, subject to redemption as described herein, in the years and in the principal amounts set forth on the cover page of this Official Statement. Interest on the Bonds will be payable semiannually on March 1 and September 1 in each year, beginning March 1, Interest will be paid on the basis of a 360-day year consisting of twelve 30-day months. Redemption Provisions Optional Redemption. The Bonds maturing on or before September 1, 2018 shall become due without option of prior payment. At the option of the City, the Bonds maturing on or after September 1, 2019, may be called for redemption and payment prior to maturity on September 1, 2018, and thereafter, in whole or in part at any time, at a redemption price of 100% of the principal amount thereof plus accrued interest to the date fixed for redemption. [ Mandatory Redemption. The Bonds maturing (the Term Bond ) shall be subject to mandatory redemption and payment prior to its 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 City shall redeem on September 1 in each year the following principal amounts of such Term Bond: Principal Amount * Year *Final maturity of Term Bond] Selection of Bonds to be Redeemed. Specific annual maturities and the amounts thereof of Bonds called for redemption in advance of their stated maturities may be selected by the City as it determines. In the event of a partial redemption of Bonds of a maturity, the Bonds to be redeemed will be selected in such manner as the Paying Agent acting on behalf of the City may deem equitable. Bonds will be redeemed in integral multiples of $5,000. If less than all Bonds in a maturity are called for redemption, the City or the Paying Agent shall, in the case of Bonds in denominations greater than $5,000, treat each $5,000 of face value as though it were a separate Bond. Notice and Effect of Redemption. If the City elects to call any Bonds for redemption and payment prior to the maturity thereof, the City will give the Paying Agent and the Underwriter written notice of its intention to redeem said Bonds on a specified date, the same being described by maturity. The Paying Agent will notify holders of the Bonds of such call by mailing, or causing to be mailed, the notice of call to the bondholders by first class mail at least thirty days prior to the redemption date. Interest on any Bond so called for redemption and payment will cease from and after the date for which such call is made, provided funds are available for payment thereof. 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. 2

15 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. So long as DTC is effecting book-entry transfers of the Bonds, the Paying Agent shall provide the notices specified above to DTC. It is expected that DTC will, in turn, notify the DTC Participants and that the DTC Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of DTC or a DTC Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Paying Agent, a DTC 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. Designation of Paying Agent and Registrar The Issuer will at all times maintain a paying agent and registrar meeting the qualifications set forth in the Bond Resolution. The Issuer reserves the right to appoint a successor paying agent or registrar. No resignation or removal of the paying agent or registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or registrar. Every paying agent or registrar appointed by the Issuer shall at all times meet the requirements of Kansas law and shall be approved by the Bond Insurer. 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 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 Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond as shown on the 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 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. 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 BOOK-ENTRY BONDS; SECURITIES DEPOSITORY. 3

16 Payments Due on Saturdays, Sundays and Holidays In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. 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 Registrar, the 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 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 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 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 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 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 Bond is surrendered to the Registrar or the Registrar receives evidence to its satisfaction of the destruction, loss or theft of any 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 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 Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond, the Issuer may require the payment by the Owner of a sum sufficient to cover any 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 Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such 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 Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall 4

17 repay to the Issuer the funds theretofore held by it for payment of such Bond, and such 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. Authority for the Bonds The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the State of Kansas, including K.S.A to , inclusive, K.S.A et seq., and K.S.A & 12-6a01 et seq., all as amended and supplemented from time to time (the Act ), and an ordinance passed by the governing body of the Issuer and a resolution adopted by the governing body of the Issuer on, 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 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 becomes due. K.S.A mandates the Clerk of Leavenworth County to levy a tax on all of the tangible taxable property in the City to pay the principal of and interest on any bonds coming due for each fiscal year of the Issuer. 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 Issuer 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 bonds registered in the name of Cede & Co. (DTC s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each series of the Bonds, in the aggregate principal amount of that series, and will be deposited with DTC. DTC and its Participants. DTC, the world s largest 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 5