I-1 - Preliminary Official Statement Series 2021A Refunding

THE BONDS General The Bonds will be issued in fully registered form only, without coupons. The Bonds will be initially registered in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository of the Bonds. Interest on and principal of the Bonds are payable in lawful money of the United States of America. The Bonds are dated as of the date of their delivery, will mature on June 1 in the years and in the amounts set forth on the inside cover page hereof, and will bear interest at the rates to be set forth on the inside cover page hereof. Interest on the Bonds is payable semiannually on June 1 and December 1 in each year, beginning on December 1, 2021*, calculated on the basis of a year of 360 days and twelve 30-day months. Interest shall be payable to the persons who were registered owners thereof as of the fifteenth day of the month immediately preceding the interest payment date, to the addresses appearing on the registration books maintained by the Registrar or such other address as is furnished to the Registrar in writing by a registered owner. The Bonds are issuable in denominations of $5,000 or any integral multiple thereof. Redemption Optional Redemption. The Bonds of this issue are not subject to redemption prior to maturity. SECURITY AND SOURCE OF PAYMENT General The principal of and interest on the Bonds are payable (in no order of priority) from (i) an unlimited ad-valorem property tax authorized to be levied against all of the taxable property in the Issuer and deposited in the Issuer’s statutorily created debt service fund (the “Debt Service Fund”), subject to nonappropriation, and (ii) other lawful funds available to the Issuer, subject, however in each case, to the right of nonappropriation. The Debt Service Fund is solely funded from unlimited ad valorem taxes (“Debt Service Tax Revenues”), but the Issuer may elect not to levy ad valorem taxes and the amount not levied could be funded with proceeds from other identifiable sources, such as tax increment revenues. The Resolution will authorize an ad valorem tax levy for each future fiscal year for which an appropriation is made by the City Council in amounts necessary to pay principal of and interest on the Bonds, when and as due, subject to the foregoing annual right of nonappropriation. A certified copy of the Resolution will be filed with the County Auditor and the County Auditor, upon appropriation by the City Council each year and certification by the City Clerk as provided in the Resolution, shall levy and assess the direct ad valorem tax for a fiscal year in an amount sufficient to produce the Debt Service Tax Revenues appropriated by the City Council for such fiscal year. The taxes so levied to pay the Bonds are to be collected in the same manner as other Issuer taxes are collected and are to be used solely to pay principal of and interest on the Bonds. The Resolution provides that the Issuer intends to appropriate sufficient funds for each fiscal year to pay the principal of and interest due on the Bonds during such fiscal year; provided however, that such an expression of current intent will not create and shall not be construed as creating a general, legal or enforceable obligation of the Issuer to appropriate such funds for any fiscal year and the decision to appropriate such funds for a fiscal year shall be made in accordance with the City Council’s normal procedures for making decisions and the then current City Council shall have the final responsibility for making such decisions. Principal of and interest on the Bonds will be payable from funds on deposit in the Bond Fund to the extent appropriated therefore by the City Council and once appropriated will be pledged by the Issuer to the payment of such principal and interest. The City Council is authorized, without further notice, hearing or other proceedings, to budget and appropriate Debt Service Tax Revenues annually to make the payments of the principal of and interest on the Bonds. Debt Service Tax Revenues (Subject to Right of Annual Appropriation) The Bonds are general obligations of the Issuer, subject to nonappropriation, payable from a levy of ad valorem real estate taxes against all taxable property in the Issuer and deposited in the Issuer’s Debt Service Fund. The Resolution provides that, notwithstanding anything therein to the contrary, the payments of the principal of and interest on the Bonds shall not constitute a mandatory charge or a requirement in any ensuing fiscal year beyond the then current fiscal year for which the Issuer has appropriated funds for the payment thereof and the Issuer shall have no continuing obligation to appropriate money for the payment of such principal of and interest on the Bonds from Debt Service Tax Revenues, or any other source, and no provision of the Resolution or the Bonds shall be construed or interpreted as creating a general obligation of the Issuer or other financial obligation of the Issuer for any future fiscal year or a debt within the meaning of any Iowa constitutional or statutory debt limitation. The Issuer’s obligation to make payments of interest on and principal of the Bonds shall be subject at all times to nonappropriation by the City Council. In the event of a nonappropriation, the Issuer’s obligations under the Bonds shall terminate and become null and void on the last day of the fiscal year for which the necessary -2-