CITY OF DES MOINES, IOWA SEC DISCLOSURES

Transcription

1 CITY OF DES MOINES, IOWA SEC DISCLOSURES FOR THE FISCAL YEAR ENDED JUNE 30, 2013

2 CITY OF DES MOINES, IOWA CONTINUING DISCLOSURE REQUIREMENTS INFORMATION TABLE OF CONTENTS CITY OF DES MOINES, IOWA GENERAL OBLIGATION BONDS Purpose... 4 List of General Obligation Bonds... 4 City Property Values... 5 City Indebtedness... 6 City Tax Rates, Levies, and Collections... 6 Major Employers... 6 Average Annual Labor Force Data... 7 City Building Permits Issued by Fiscal Year... 7 Notice Regarding Utility Franchise Fees... 8 SANITARY SEWER SYSTEM Purpose Largest System Users Annual Usage Rates and Charges STORMWATER MANAGEMENT UTILITY Purpose Sales History and Total Stormwater Management Utility Charges Number of Stormwater Management Utility Customers Larger Stormwater Management Customers Stormwater Management Utility Revenues by Classification)

3 CITY OF DES MOINES GENERAL OBLIGATION BONDS

4 City of Des Moines, Iowa Continuing Disclosure Requirements Information For the City of Des Moines General Obligation Bonds For the Fiscal Year Ended June 30, 2013 (Unaudited) Purpose The following information is provided to comply with the SEC Continuing Disclosure Requirements as indicated for all general obligation bonds listed below: CITY OF DES MOINES, IOWA OUTSTANDING BONDS AS OF JUNE 30, 2013 FOLLOWS: OUTSTANDING GENERAL OBLIGATION BONDS ISSUE NAME ISSUE DATE $10,000,000 GENERAL OBLIGATION BONDS, SERIES 2005C (URBAN RENEWAL) 06/2005 $28,185,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2005E 12/2005 $20,295,000 GENERAL OBLIGATION BONDS, SERIES 2006 A 07/2006 $ 9,210,000 GENERAL OBLIGATION BONDS, SERIES 2006B (URBAN RENEWAL) 07/2006 $ 4,635,000 GENERAL OBLIGATION BONDS, SERIES 2007A 04/2007 $18,415,000 GENERAL OBLIGATION BONDS, SERIES 2007B 06/2007 $15,045,000 GENERAL OBLIGATION BONDS, SERIES 2007C (URBAN RENEWAL) 06/2007 $24,055,000 GENERAL OBLIGATION BONDS, SERIES 2008D 06/2008 $ 6,325,000 GENERAL OBLIGATION BONDS, SERIES 2008 E (URBAN RENEWAL) 06/2008 $ 1,155,000 GENERAL OBLIGATION BONDS, TAXABLE SERIES 2009A 03/2009 $ 2,870,000 GENERAL OBLIGATION BONDS, SERIES 2009B (URBAN RENEWAL) 03/2009 $31,255,000 GENERAL OBLIGATION BONDS, SERIES 2009C 03/2009 $19,605,000 GENERAL OBLIGATION BONDS, TAXABLE SERIES 2009E 06/2009 $ 3,055,000 GENERAL OBLIGATION BONDS, SERIES 2009F (URBAN RENEWAL) 06/2009 $ 3,115,000 GENERAL OBLIGATION BONDS, TAXABLE SERIES 2009G 06/2009 $15,990,000 GENERAL OBLIGATION BONDS, SERIES 2010A 01/2010 $13,440,000 GENERAL OBLIGATION BONDS, SERIES 2010B (URBAN RENEWAL) 01/2010 $22,630,000 GENERAL OBLIGATION CAPITAL LOAN NOTES 2010C 03/2010 $25,330,000 GENERAL OBLIGATION BONDS, SERIES 2010D 06/2010 $65,360,000 GENERAL OBLIGATION REFUNDING CAPITAL LOAN NOTES 2010H 12/2010 $45,520,000 GENERAL OBLIGATION BONDS SERIES 2011A 06/2011 $19,965,000 GENERAL OBLIGATION BONDS, SERIES 2012A 06/2012 $ 6,090,000 GENERAL OBLIGATIONBONDS, SERIES 2012B (URBAN RENEWAL) 06/2012 4

5 $ 4,275,000 GENERAL OBLIGATION BONDS, SERIES 2012C 06/2012 $13,210,000 GENERAL OBLIGATION BONDS, SEWER BONDS 2012D 06/2012 $ 10,825,000 GENERAL OBLIGATION BONDS, STORMWATER BONDS 2012E 06/2012 $ 13,030,000 GENERAL OBLIGATION PARKING BONDS, TAXABLE 2012F 06/2012 See pages of the City s CAFR for additional information about these outstanding bonds. The disclosure reference is provided in each heading below. Section 4 (c)(1) City Property Values 1/1/2011 VALUATIONS (Taxes payable July 1, 2012 through June 30, 2013) 100% ASSESSED TAXABLE VALUE ACTUAL VALUE AMOUNT (with rollback) Residential $ 7,215,230,230 $ 3,638,147,279 Commercial/industrial 2,536,423,020 2,536,423,020 Utilities w/o Gas and Electric 37,281,651 37,281,651 Railroads 15,154,668 15,154,668 Gross valuation 9,804,089,569 6,227,006,618 Less military exemption (15,584,570) (15,584,570) Net valuation 9,788,504,999 6,211,422,048 TIF Increment (used to compute Debt service levies and Constitutional debt limit) $ 700,013,700 $ 700,007,540 Taxed Separately Gas and Electric Utilities $ 338,306,985 $ 228,798,631 Agricultural Land 9,398,550 5,408,069 Agricultural Buildings 659, ,356 5

6 Section 4 (c)(2) City Indebtedness Debt Limit The calculation of the City s debt limit can be found in the Statistical Section on Table 13, page 188 of the FY 2013 Comprehensive Annual Financial Report. A complete listing of the City of Des Moines, Iowa debt can be found in the FY 2013 Comprehensive Annual Financial Report on pages 134 through pages 151. Section 4 (c)(3) City Tax Rates, Levies and Collections Tax rates per $1,000 of taxable value can be found in the Statistical Section on Table 8, page 178, of the FY 2013 Comprehensive Annual Financial Report. Tax levies and collections can be found in the Statistical Section on Table 9, page 181, of the FY 2013 Comprehensive Annual Financial Report. Section 4 (c)(4) Major Employers Major employers in the Des Moines metropolitan area are as follows: EMPLOYER PRODUCT/SERVICE APPROXIMATE NUMBER OF FULL-TIME EMPLOYEES Wells Fargo Financial services 13,000 State of Iowa Government 8,800 Mercy Hospital Medical Center Health care 7,100 Principal Financial Group Financial services 6,131 Unity Point Health Health care 5,505 Des Moines Public Schools Education 4,642 Nationwide/Allied Insurance Insurance provider 4,438 DuPont Pioneer Seed Manufacturing 2,849 Farm Equipment & Consumer Financial Svcs 3,100 John Deere Des Moines Works Hy-Vee Food Stores Retail Food Stores 2,100 Kum and Go Convenience Store Chain 1,820 Marsh Insurance provider 1,800 City of Des Moines Local Government 2,053 United Parcel Services Package Shipping 1,600 6

7 Section 4 (c)(5) Average Annual Labor Force Data TOTAL CIVILIAN LABOR FORCE UNEMPLOYMENT RATE DES MOINES DES MOINES METRO AREA STATE OF IOWA METRO AREA STATE OF IOWA 2013* 313,800 1,642, % 4.9 % ,500 1,638, % 5.2 % ,100 1,659, % 5.9 % ,400 1,671, % 6.3 % ,100 1,678, % 6.2 % ,000 1,680, % 4.4 % ,000 1,661, % 3.8 % ,300 1,664, % 3.5 % ,000 1,645, % 4.7 % ,900 1,627, % 4.4 % Section 4 (c)(6) City Building Permits The City building permits are listed on Table 18, page 198, of the FY 2013 Comprehensive Annual Financial Report. 7

8 NOTICE TO HOLDERS OF CITY OF DES MOINES, IOWA GENERAL OBLIGATION BONDS (Update as of March 5, 2014) Franchise Fee Increase Approved at Special Election The City of Des Moines issued the Series 2014A Bonds dated January 6, 2014 to pay the judgment of the courts in full on January 7, No additional liability in this legal matter, short of paying the debt service on the bonds, is anticipated. The disclosure contained in the final Official Statement dated December 6, 2013 ( Official Statement ) issued with respect to the Series 2014A Bonds (see pages 4-5 of the Official Statement, under the heading Franchise Fee Litigation ), the City Council of the Issuer amended the City franchise fee ordinances to temporarily increase the current franchise fees from 5% to 7.5%, as authorized under Iowa Code Section 364.2(4)(f), and called for a special election to be held on March 4, 2014 for City voters to consider approval of the same. At the special election, a majority of the voters approved of the amended franchise fee ordinances. The increased franchise fees will become effective on July 1, As described in the Official Statement, the Series 2014A Bonds maturing on June 1, 2022 are subject to extraordinary optional redemption upon the occurrence of an "Extraordinary Event," under the terms set forth in the resolution authorizing issuance of the Series 2014A Bonds. Approval of the amended franchise fee ordinances by the voters at the special election on March 4, 2014 constitutes an "Extraordinary Event", and the Series 2014A Bonds maturing on June 1, 2022 therefore now are subject to extraordinary optional redemption as described in the Official Statement. This Notice is current only as of its date, and the Issuer makes no representation as to the accuracy or completeness of the information contained herein after the release of this Notice. The Issuer is providing this Notice on a voluntary basis and, by releasing this Notice, undertakes and assumes no obligation to further update the information contained herein except as may be otherwise required by law or by the resolution authorizing the issuance of the Series 2014A Bonds. 8

9 SANITARY SEWER SYSTEM

10 City of Des Moines, Iowa Continuing Disclosure Requirements Information For the City of Des Moines Sanitary Sewer Revenue Bonds For the Fiscal Year Ended June 30, 2013 (Unaudited) Purpose: The following information is provided to comply with the SEC Continuing Disclosure Requirements as indicated for all sanitary sewer revenue bonds listed below: CITY OF DES MOINES, IOWA OUTSTANDING BONDS AS OF JUNE 30, 2013 FOLLOWS: SANITARY SEWER REVENUE BONDS ISSUED $5,965,000 SEWER REVENUE BONDS, SERIES 2004I (STATE REVOLVING FUND LOAN 8) 11/2004 $ 5,160,000 SEWER REVENUE BONDS, SERIES 2004G 11/2004 $14,040,000 SEWER REVENUE BONDS, SERIES 2004H 11/2004 The disclosure reference is provided in each heading that follows. 10

11 Section 4 C (1) Largest System Users (July 1, 2012 through June 30, 2013) Annual Flow Business Name Type of Business Gallons Charges Titan Tire Tire Manufacturer 155,607,936 $754,751 Archer Daniels Midland Soybean Oil Refinery 136,913,202 $664,082 Pine Ridge Farms Llc Pork Packing Plant 115,302,704 $559,271 Iowa Methodist Hosp Hospital 77,708,972 $376,941 Anderson Erickson Dairy 69,391,960 $336,604 Mercy Medical Center Hospital 49,501,892 $240,137 Darling International Inc Rendering Plant 46,178,528 $224,019 Drake University University 41,376,368 $200,728 Principal Financial Group Financial 39,457,000 $191,419 Aramark Uniform Servs Clothing 33,360,800 $161,853 Section 4 C (2) Annual Usage No. of Annual Usage Fiscal Year Sewage Bills (Gallons) FY ,652 6,920,665,977 FY ,163 6,955,851,324 FY ,963 6,780,933,197 FY ,232 6,401,754,814 FY ,411 6,413,205,951 FY ,666 6,206,146,989 FY ,967 5,920,607,334 FY ,036 5,824,251,970 FY ,100 5,880,959,717 FY ,178 5,943,350,815 Section 4 C (3) Rates and Charges Monthly sanitary sewer charges are imposed upon and collected from system users based on metered water flow to residences and businesses. Billing and collection of charges is performed under contract with Des Moines Water Works and remitted monthly to the City. The City's rate structure utilizes a base monthly fee in addition to a rate per 1,000 gallons of consumption. The table below shows the recent history of sanitary sewer rates and charges. Effective Rate per Date Base Charge 1,000 gallons July 1, 2000 $4.40 $2.97 July 1, 2005 $4.40 $3.21 July 1, 2006 $4.40 $3.46 July 1, 2007 $4.40 $3.74 July 1, 2008 $4.40 $3.96 July 1, 2009 $4.40 $4.20 July 1, 2010 $4.40 $4.45 July 1, 2011 $4.40 $4.45 July 1, 2012 $4.40 $4.85 July 1, 2013 $4.40 $

12 STORMWATER MANAGEMENT UTILITY

13 City of Des Moines, Iowa Continuing Disclosure Requirements Information For the City of Des Moines Stormwater Utility Revenue Bonds For the Fiscal Year Ended June 30, 2013 (Unaudited) Purpose: The following information is provided to comply with the SEC Continuing Disclosure Requirements as indicated for all stormwater utility revenue bonds listed below: CITY OF DES MOINES, IOWA OUTSTANDING BONDS AS OF JUNE 30, 2013 FOLLOWS: STORMWATER UTILITY REVENUE BONDS ISSUE ISSUE NAME DATE $ 16,750,000 STORMWATER UTILITY REVENUE BONDS, SERIES 2006D 12/2006 $ 19,300,000 STORM WATER UTILITY REVENUE CAPITAL LOAN NOTES, 10/2010 SERIES 2010F $ 5,100,000 STORMWATER UTILITY REVENUE CAPITAL LOAN NOTES, SERIES 2010G 10/2010 The disclosure reference is provided in each heading that follows. 13

14 Section 4 c (1) Sales History and Total Stormwater Management Utility Charges Fiscal Year Average No. Average Annual Storm Water Ending of Customers ERU Units Sewer Charges ,345 1,962,361 $ 17,260, ,263 1,962,662 16,726, ,205 1,967,101 15,710, ,385 1,949,055 14,387, ,726 1,936,292 13,317, ,586 1,928,038 12,159, ,140 1,918,838 11,465, ,287 1,902,602 10,907, ,456 1,889,511 9,974, ,197 1,850,678 9,189,936 Section 4 c (2) Number of Stormwater Management Utility Customers Fiscal Year Commercial/ Total Ending Residential Industrial Customers ,828 7,517 68, ,755 7,508 68, ,703 7,502 68, ,863 7,522 68, ,276 7,450 67, ,152 7,434 67, ,810 7,330 67, ,050 7,237 66, ,291 7,165 65, ,152 7,045 64,197 14

15 Section 4 c (3) Larger Stormwater Management Customers Customer Monthly ERUs Charge Per Annual Name Billed Month Charges DM International Airport 4,791 $ 46,664 $ 559,972 DM Public Schools 3,864 37, ,624 Iowa State Fair 2,426 23, ,551 State of Iowa 1,313 12, ,463 City of Des Moines 1,297 12, ,593 Iowa Air Guard 1,083 10, ,581 Drake University 1,011 9, ,166 Iowa Methodist Hospital 930 9, ,698 Mercy Medical Center 919 8, ,413 Principal 833 8,113 97,361 New Plan Realty Trust 800 7,792 93,504 HyVee Foods 782 7,617 91,400 Titan Tire 749 7,295 87,543 Polk County 623 6,068 72,816 Marcerich 603 5,873 70,479 Section 4 c (4) Stormwater Management Utility Revenues By Classification Source of FY2013 Revenue Percentage ERU Units Revenue Commercial 51.0% 1,010,433 $8,862,754 Residential 46.0% 896,921 7,864,279 Industrial 3.0% 60, ,817 Total 100% 1,968,156 17,260,850 15