RES 1999-2848 - General obligation bonds, various purpose and refunding bonds series of 1999 •
ot4""A.^•h,8p7 Finance Department
�s' RECEIVED
Omaha/Douglas Civic Center
1819 Farnam Street,Suite 1004
2 �✓il �i «y1f=� - pm Omaha,Nebraska 68183-1004
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or
Ao yry' �;�'T'`�' CLERK
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R�rFo FEB
, ( },H r , FJ P B RA C i Louis A.D'Ercole
City of Omaha Director
Hal Daub,Mayor
November 2, 1999
Honorable President
and Members of the City Council,
GENERAL OBLIGATION BONDS
VARIOUS PURPOSE AND REFUNDING BONDS - SERIES OF 1999
$36,570,000
Submitted for your consideration is a Resolution regarding the sale of General Obligation Bonds
authorized at elections held on May 11, 1993, May 14, 1996, and November 3, 1998 and General
Obligation Refunding Bonds authorized by law. The Resolution approves or authorizes the
following:
1. Approves the following exhibits attached to the Resolution and made a part hereof:
Exhibit A - Preliminary Official Statement
Exhibit B - Official Notice of Sale
Exhibit C - Official Bid Form
2. Authorizes the Finance Director to certify and deliver the Preliminary Official
Statement on behalf of the City of Omaha.
3. Authorizes and directs the Acting City Comptroller to publish the Official Notice of
Sale in such a manner as he deems advisable.
4. Authorizes and directs the City Clerk to receive sealed proposals on said Official
Bid Form for the Various Purpose and Refunding Bonds, Series of 1999 until
11:00 a.m., Omaha time,November 16, 1999.
Respectfully submitted, Referred- City Council for Consideration:
Louis A. D'Ercole ate yor's Office/Title Date
Finance Director
P:\FIN\9803skz.doc
1
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i
, .- EXHIBIT "A''
This __',
Preliminar '
y Official
Statement _ . .
and the '--_, -_
informatio
n Ratings:Moody's: " "
contained Standard&Poor's:" "
herein are (See"RATINGS"herein)
subject to PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 2,1999
completio
n orNEW ISSUE
amendmen BOOK ENTRY ONLY
t. These
securities In the opinion of Bond Counsel, under existing laws, regulations, rulings and judicial decisions, interest on the Series 1999 Bonds is excluded from
may not begross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and
sold norcorporations, except that such interest must be included in the "adjusted current earnings" of certain corporations for purposes of calculating alternative
may offersminimum taxable income. Bond Counsel also is of the opinion that, under existing laws of the State of Nebraska, such interest is exempt from Nebraska state
to buy beincome taxation as long as it is exempt for purposes of the federal income tax. See "TAX EXEMPTION"herein. •
accepted
prior to the[Omaha Seal]
time the
Official
Statement A,S36,570,000
is CITY OF OMAHA,NEBRASKA
delivered VARIOUS PURPOSE AND REFUNDING BONDS
in .final SERIES OF 1999
form.
Under no
circumstanDated: November 15,1999 Due: November 15,as shown below
ces shall
this The Series of 1999 Bonds(the"Series 1999 Bonds")are issuable in fully registered form in the denominations of$5,000 and integral multiples thereof.
Preliminar Interest is payable semiannually on May 15 and November 15 of each year,commencing May 15,2000,by check or draft mailed to the registered owner as of the
y Officialapplicable record date at the address shown on the books of registry maintained by First National Bank of Omaha,as Registrar. Principal of the Series 1999 Bonds
Statement is payable upon presentation and surrender of the Series 1999 Bonds at the principal corporate office of First National Bank of Omaha,as Paying Agent,in Omaha,
constitute Nebraska. The Series 1999 Bonds are subject to optional redemption prior to maturity,as more fully set forth herein.
an offer to The Series 1999 Bonds initially will be registered in the name of Cede&Co., as nominee for The Depository Trust Company,New York,New York
sell or a("DTC"),which will act as securities depository for the Series 1999 Bonds. Purchases of the Series 1999 Bonds may be made only in book-entry form in authorized
solicitationdenominations by credit to participating broker-dealers and other institutions on the books of DTC as described herein. Purchasers will not receive certificates
of an offer evidencing the Series 1999 Bonds. Principal of,premium,if any,and interest on the Series 1999 Bonds will be payable by the paying agent directly to DTC as the
to buy norregistered owner thereof. Disbursement of such payments to the DTC Participants is the responsibility of DTC,and disbursement of such payments to the beneficial
shall thereowners is the responsibility of the DTC Participants and the Indirect Participants, as more fully described herein. Any purchaser of a beneficial interest in the
be any saleSeries 1999 Bonds must maintain an account with a broker or dealer who is,or acts through,a DTC Participant to receive payment of the principal of,premium,if
of theseany,and interest on such Series 1999 Bonds. See"THE BONDS—Book-Entry Only System"herein.
securities
in any The proceeds of the Series 1999 Bonds will be used to pay the costs of acquiring equipment and constructing improvements relating to the City's streets,
jurisdictio sewer system, public facilities and parks and recreation system and to refund debt assumed by the City as a result of its annexations of^ nine sanitary and
n in whichimprovement districts.
such offer, The Series 1999 Bonds are payable from ad valorem taxes,unlimited as to rate and amount,levied by the City against all taxable property in the
solicitationCity. The full faith and credit of the City are pledged to the prompt payment of the principal of and interest on the Series 1999. Bonds.
or sale
would be MATURITY SCHEDULE
unlawful MaturityDate Principal Interest Price or MaturityDate Principal interest Price or
PP
prior to (November 15) Amount Rate Yield (November 15) Amount Rate Yield
registratio 2000 A % % 2010 A$2,120,000
n or -• ---
qualificati 2001 A 1.910.000 2011 A 1_805.000
on under 2002 A 1.910.000 2012 A 1.695.000
the 2003 A 2.320.000 2013 A 1.600.000
securities
laws of 2004 A 2,505.000 2014 A 1.415,000
any such 2005 A 2.500,000 2015 A 1.390.000
jurisdictio 2006 A 2.500.000 2016 A 1,200.000
n'
2007 A 2.465.000 2017 • 1,130,000
2008 A 2.350.000 2018 800,000
2009 A 2.235.000 2019 800,000
(Accrued Interest To Be Added)
The Series 1999 Bonds are being offered when,as and if issued by the City and accepted by the original purchaser,subject to the approval of legality of
the Series 1999 Bonds by Kutak Rock,Bond Counsel,and to certain other conditions. It is expected that delivery of the Series 1999 Bonds will be made on or about
November , 1999,at DTC against payment therefor.
•
Dated: November , 1999
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r
CITY OF OMAHA,NEBRASKA
HAL DAUB,MAYOR
CITY COUNCIL
Paul Koneck,President
Marc Kraft,Vice President Cliff Herd
Subby Anzaldo Lormong Lo
Frank Brown James Monahan
MAYOR'S CABINET MEMBERS
Louis A. D'Ercole Finance Director
Paul D. Kratz City Attorney
Robert Peters Acting Planning Director
Kellie E. Paris Human Relations Director
Donald L. Carey Chief of Police
William H. Johnson Acting Fire Chief
Larry N. Foster Acting Parks,Recreation and Public Property Director
Don W. Elliott Public Works Director
Michele Frost Personnel Director
Patrick McPherson Administrative Services Director
AGENCY DIRECTORS
Diane Thomas Director, Job Training of Greater Omaha
Ronald R. Heezen Director, Omaha Public Library
Stanley P. Timm,Acting City Comptroller
Buster Brown, City Clerk
AUDITOR
KPMG LLP
UNDERWRITERS
BOND COUNSEL
Kutak Rock
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•
A.
OFFICIAL STATEMENT
^,S36,570,000
CITY OF OMAHA,NEBRASKA
Various Purpose and Refunding Bonds
Series of 1999
INTRODUCTION
The purpose of this Official Statement is to furnish bond analysts, underwriters and investors with pertinent
information concerning the City of Omaha, Nebraska (the "City") in connection with its ^ $36,570,000 aggregate
principal amount of Various Purpose and Refunding Bonds,Series of 1999(the"Bonds")being offered for sale.
THE BONDS
Description of the Bonds
The Bonds, in aggregate principal amount of"$36,570,000 will be dated November 15, 1999,will be issued in
fully registered form, and will mature as set forth on the cover page of this Official Statement. Interest is payable
semiannually on May 15 and November 15 of each year.
Place of Payment
The principal of the Bonds will be payable in lawful money of the United States of America at the corporate trust
office of the First National Bank of Omaha,as paying agent and registrar(the"Paying Agent"and"Registrar"),in Omaha,
Nebraska. Interest on the Bonds will be paid by wire transfer,check or draft mailed to the person in whose name a Bond
is registered as of the May 1 or November 1,as the case may be,next preceding each interest payment date.
Book-Entry Only System
The Depository Trust Company("DTC"),New York,New York,will act as securities depository for the Bonds.
The Bonds will be initially issued as fully registered securities registered in the name of Cede&Co. (DTC's partnership
nominee). One fully registered Bond certificate will be issued for each maturity of the Bonds and will be deposited with
DTC.
DTC 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 1934.. DTC holds securities that its participants ("Direct
Participants") deposit with DTC. DTC also facilitates the settlement among Participants (as defined hereinafter) of
securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry
changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct
Participants include securities brokers and dealers, banks, trust companies, clearing corporations and certain other
organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange,Inc., the
American Stock Exchange,Inc.and the National Association of Securities Dealers,Inc. Access to the DTC system is also
available to others such as securities brokers and dealers, banks and trust companies that clear through or maintain a
custodial relationship with a Direct Participant either directly or indirectly ("Indirect Participants"). (Direct Participants
and Indirect Participants are referred to herein collectively as the "Participants.") The Rules applicable to DTC and its
Participants are on file with the Securities and Exchange Commission.
Purchases of the Bonds under the DTC system must be made in authorized denominations 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 (a `Beneficial Owner") is in turn to be recorded on the Direct Participants' and Indirect Participants'
records. Beneficial Owners will not receive written confirmation from DTC of their purchase,but Beneficial Owners are
expected to receive written confirmations providing details of the transaction, as well as periodic statements of their
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holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction.
Transfers of beneficial ownership interest in the Bonds are to be accomplished by entries made on the books of
Participants acting on behalf of Beneficial Owners. For every transfer and exchange of beneficial ownership interests in
the Bonds, DTC and the Participants may charge the Beneficial Owner a sum sufficient to pay any tax, fee or other
governmental charge that may be imposed in relation thereto. Beneficial Owners will not receive certificates representing
their ownership interests in the Bonds,except in the event that use of the book entry for the Bonds is discontinued.
SO LONG AS CEDE&CO., AS NOMINEE FOR DTC, IS THE REGISTERED OWNER OF THE BONDS,
THE CITY AND THE PAYING AGENT WILL TREAT CEDE&CO.AS THE ONLY OWNER OF THE BONDS FOR
ALL PURPOSES UNDER THE ORDINANCE (AS HEREINAFTER DEFINED), INCLUDING RECEIPT OF ALL
PAYMENTS OF PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS, RECEIPT OF NOTICES
AND VOTING.
To facilitate subsequent transfers, the Bonds deposited by Participants with DTC are registered in the name of
DTC's partnership nominee, Cede&Co. The deposit of the Bonds with DTC and their registration in the name of
Cede&Co. effect no change in beneficial ownership. DTC will have no knowledge of the actual Beneficial Owners of
the Bonds. DTC's records will reflect only the identity of the Direct Participants to whose accounts such Bonds are
credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account
of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants and by Direct Participants and Indirect Participants to Beneficial Owners, will be governed by
arrangements among them,subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices will be sent to Cede&Co. If less than all of the Bonds are being redeemed,DTC's practice
is to determine by lot the amount of the interest of each Direct Participant to be redeemed.
Neither DTC nor Cede&Co. will consent or vote with respect to the Bonds. Under its usual procedures,DTC
mails an Omnibus Proxy to the City,as issuer of the Bonds,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 the Bonds are credited on
the record date(identified in a listing attached to the Omnibus Proxy).
Principal, premium, if any, and interest payments on the Bonds will be made by the Paying Agent to DTC.
DTC's practice is to credit Direct Participants' accounts on payment dates in accordance with their respective holdings
shown on DTC's records unless DTC has reason to believe that it will not receive payment on a payment date. 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 Paying Agent, the City or any other party under the Ordinance, subject to any
statutory or regulatory requirements as may be in effect from time to time. Payment of principle, premium, if any, and
interest to DTC is the responsibility of the Paying Agent,disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct
and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by
giving reasonable notice to the City and the Paying Agent. Under such circumstances, in the event that a successor
securities depository is not obtained,Bond certificates are required to be delivered as described in the Ordinance.
Upon (i)the written direction of the City or (ii)the written consent of 100% of the Bondholders, the Paying
Agent shall withdraw the Bonds from DTC and authenticate and deliver Bond certificates fully registered to the assignees
of DTC or its nominee. If the request for such withdrawal is not the result of any City action or inaction,such withdrawal,
authorization and delivery shall be at the cost and expense of the persons requesting such withdrawal, authentication and
delivery.
DTC management is aware that some computer applications, systems and the like for processing data
("Systems")that are dependent upon calendar dates, including dates before,on and after January 1, 2000, may encounter
"Year 2000 problems." DTC has informed its Participants and other members of the financial community(the"Industry")
that it has developed and is implementing a program so that its Systems, as the same relate to the timely payment of
distributions (including principal and income payments)to securityholders, book-entry deliveries and settlement of trades
within DTC ("DTC Services"), continue to function appropriately. This program includes a technical assessment and a
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remediation plan,each of which is complete. Additionally, DTC's plan includes a testing phase,which is expected to be
completed within appropriate time frames.
However,DTC's ability to perform properly its services is also dependent upon other parties, including but not
limited to issuers and their agents, as well as third-party vendors from whom DTC licenses software and hardware, and
third-party vendors on whom DTC relies for information or the provision of services, including telecommunication and
electrical utility service providers,among others. DTC has informed the Industry that it is contacting(and will continue to
contact)third-party vendors from whom DTC acquires services to: (i)impress upon them the importance of such services
being Year 2000 compliant; and (ii)determine the extent of their efforts for Year 2000 remediation (and, as appropriate,
testing)of their services. In addition,DTC is in the process of developing such contingency plans as it deems appropriate.
According to DTC, the foregoing information with respect to DTC has been provided to the Industry for
informational purposes only and is not intended to serve as a representation, warranty or contract modification of any
kind.
The information in this section concerning DTC and DTC's book-entry system has been obtained from DTC.
The City does not take any responsibility for its accuracy.
THE CITY AND THE PAYING AGENT CANNOT AND DO NOT GIVE ANY ASSURANCES THAT THE
DIRECT PARTICIPANTS OR THE INDIRECT PARTICIPANTS WILL DISTRIBUTE TO THE BENEFICIAL
OWNERS OF THE BONDS (i)PAYMENTS OF PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE
BONDS, (ii)CERTIFICATES REPRESENTING AN OWNERSHIP INTEREST OR OTHER CONFIRMATION OF
BENEFICIAL OWNERSHIP INTERESTS IN THE BONDS OR (iii)REDEMPTION OR OTHER NOTICES SENT TO
DTC OR CEDE&CO., ITS NOMINEE,AS THE REGISTERED OWNERS OF THE BONDS,OR THAT THEY WILL
DO SO ON A TIMELY BASIS OR THAT DTC, DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS WILL
SERVE AND ACT IN THE MANNER DESCRIBED IN THIS OFFICIAL STATEMENT. THE CURRENT "RULES"
APPLICABLE TO DTC ARE ON FILE WITH THE SECURITIES AND EXCHANGE COMMISSION AND THE
CURRENT"PROCEDURES"OF DTC TO BE FOLLOWED IN DEALING WITH DIRECT PARTICIPANTS ARE ON
FILE WITH DTC.
NEITHER THE CITY NOR THE PAYING AGENT HAS ANY RESPONSIBILITY OR OBLIGATIONS TO
THE DIRECT PARTICIPANTS OR THE BENEFICIAL OWNERS WITH RESPECT TO (A)THE ACCURACY OF
ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT PARTICIPANT;(B)THE PAYMENT BY DTC OR ANY
DTC PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNERS IN RESPECT OF THE PRINCIPAL,
PREMIUM, IF ANY, AND INTEREST ON THE BONDS; (C)THE DELIVERY OR TIMELINESS OF DELIVERY BY
DTC OR ANY DIRECT PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER WHICH IS REQUIRED
OR PERMITTED UNDER THE TERMS OF THE INDENTURE TO BE GIVEN TO BONDHOLDERS; (D)THE
SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENTS IN THE EVENT OF ANY PARTIAL
REDEMPTION OF THE BONDS; OR (E)ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC OR ITS
NOMINEE,CEDE&CO.,AS BONDHOLDER.
Optional Redemption
The Bonds maturing November 15,2010 and thereafter are subject to redemption at the option of the City at any
time on or after November 15, 2009, in whole or in part in inverse order of maturities and in such manner as the Paying
Agent deems fair within a maturity,at the following redemption prices,plus accrued interest to the date of redemption:
Redemption Price
Redemption Period (percentage of
(dates inclusive) principal amount)
November 15,2009 to November 14,2012 102%
November 15,2012 to November 14,2015 1.01
November 15,2015 and thereafter 100
At least 30 days' notice of redemption will be mailed to the person whose name appears in the bond registration
books as the registered owner of a Bond as of the close of business on the forty-fifth day next preceding the date fixed for
redemption.
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Disposition of Proceeds
The amount of$8,500,000 of the proceeds of the Bonds will be applied to pay the cost of constructing streets
and highways; $4,500,000 of the proceeds of the Bonds will be used to pay the cost of recreation and culture
improvements;$1,000,000 of the proceeds of the Bonds will be applied to pay the cost of constructing sewers;$1,000,000
of the proceeds of the Bonds will be applied to pay for certain public works department and police department facilities;
$300,000 of the proceeds of the Bonds will be applied to pay for certain public safety equipment; $1,200,000 of the
proceeds of the Bonds will be applied to pay for certain snow removal and related heavy equipment,and ^ $20,570,000 of
the proceeds of the Bonds will be applied to refund certain bonds which the City assumed and became legally liable for
upon annexation of Douglas County Sanitary and Improvement District Nos.236,241,253,331,341, ^ 357,363,371 and
396.
Authority for Issuance
The Bonds have been authorized in accordance with the Constitution and statutes of the State of Nebraska,the
Charter of the City of Omaha and proceedings of the City Council of the City of Omaha providing for the issuance
thereof, including Ordinance No. passed by the City Council on ^ November 2, 1999 (the "Ordinance"). The
issuance of the$1,000,000 of Bonds for sewer construction purposes referred to above under the heading"Disposition of
Proceeds"was approved by voters at an election held in the City on May 11, 1993. The issuance of$8,000,000 of Bonds
for street and highway purposes, of$4,500,000 of Bonds for improvements to the City's recreation and culture facilities,
of$300,000 of Bonds for public safety equipment and of$1,000,000 of Bonds for public works department and police
department facilities referred to above was approved by the voters of the City at an election held in the City on May 14,
1996. The issuance of$1,200,000 of Bonds for heavy equipment referred to above was approved by the voters of the City
at an election held in the City on November 3, 1998. The issuance of the A $20,570,000 of Bonds for the refunding
purpose also referred to under such heading was approved by the City Council by authority of Sections 10-142 and 10-
616,Reissue Revised Statutes of Nebraska, 1997,as amended.
Security
The Bonds are general obligations of the City,and the City is obligated to levy ad valorem taxes for the payment
of said Bonds and the interest thereon upon all property within the City subject to taxation by the City without limitation
as to rate or amount. The full faith and credit of the City shall be pledged to the prompt payment of the principal of and
interest on the Bonds. See"AUTHORITY TO LEVY TAXES"in Part One of Appendix B.
Changes to State Property Tax System. The State of Nebraska's system of assessing and taxing personal
property for purposes of local ad valorem taxation for support of local political subdivisions, including the City,has been
the subject in recent years of constitutional amendment,legislation and litigation.
The Second Session of the 94`h Nebraska Legislature(1996)passed, and the Governor signed, five related bills
designed to reduce property taxes. Two of the bills,LB 299 and LB 1114,have had a direct effect on City spending and
property tax levies, respectively. LB 299 prohibited governmental units (a)from adopting a fiscal year 1997 budget in
excess of the fiscal year 1997. total plus population growth plus 2% expressed in dollars and (b)from adopting a fiscal
year 1998 budget in excess of the fiscal year 1997 budget plus population growth expressed in dollars. Under LB 989 of
the Second Session of the 95th Nebraska Legislature (1998), governmental units may not adopt budgets for fiscal years
beginning on or after July 1, 1998 in excess of 102.5% of the prior fiscal year's budget plus allowable growth (which
includes increases in taxable valuation for such things as new construction and annexations). However, such budgetary
limitations do not apply to, among other things, revenue pledged to retire bonded indebtedness or budgeted for capital
improvements. Provision also is made for a governmental unit to exceed the budget limit for a given fiscal year by up to
an additional 1%upon the affirmative vote of at least 75%of the governing body or in such amount as is approved by a
majority vote of the electorate. Effective July 1, 1998,LB 1114 caps the property tax levies of local governments. Levies
of incorporated cities and villages, such as the City,will be limited to a maximum of 450/$100 of taxable valuation (plus
an additional 5¢/$100 to pay the municipality's share of revenue required under interlocal agreements). The levy limit
does not apply to levies for preexisting lease-purchase contracts approved prior to July 1, 1998, to bonded indebtedness
approved according to law and secured by a levy on property and to pay judgments. (The City's 1999 General Fund levy,
exclusive of such unlimited levies, is $.3098/$100 of taxable valuation.) LB 1114 does permit a political subdivision to
exceed its levy limitation for a period of up to five years by majority vote of the electorate.
The First Session of the 95`h Nebraska Legislative (1997) passed, and the Governor signed, LB 271, which
revised the method for taxing motor vehicles by substituting a generally applicable state fee schedule for locally levied and
collected ad valorem taxes. As a consequence, the taxable value of such motor vehicles no longer is part of the City's
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property tax base. The State of Nebraska will collect such taxes and fees and distribute a portion of such collections to the
taxing bodies, including the City. The pertinent provisions of LB 271 became effective on January 1, 1998. According to
a State of Nebraska Department of Revenue analysis of LB 27],the taxes generated in Douglas County under LB 271 will
be approximately 80% of the taxes generated under the prior system, based on constant valuation. Based on the
Department of Revenue estimate and information from Douglas County that the City's motor vehicle valuation would
have increased but for LB 271,the City estimated that it would experience a$1,643,127 annual reduction in taxes received
from motor vehicles and prepared its 1998 budget accordingly. This reduction was directly offset by an increase in State-
generated street and highway tax allocation funds in the estimated amount of$1,583,000.
There can be no assurance that Nebraska's system of assessing and taxing real and personal property will remain
substantially unchanged, given the possibility of additional legislation, constitutional initiatives and referendums and
litigation. Such changes could materially and adversely affect the amount of property tax and other revenues the City
could collect in future years. The City does not believe, however, that the Nebraska Legislature, subject to any
constitutional restrictions, would leave the City without adequate taxing resources to pay for its programs and meet its
financial obligations, including the repayment of its bonds,lease-purchase obligations and other obligations. The opinion
of Bond Counsel will be rendered based on the law existing as of the date of issuance of the Bonds and in reliance upon
general legal presumptions in favor of the constitutionality of statutes and upon the holdings of existing case law.
Prospective Financial Commitments by the City,
Several development and redevelopment projects involving major downtown and central Omaha employers and
the City are in various stages of planning and construction. In downtown Omaha,the First National Bank of Omaha and
the Omaha World-Herald are engaging in separate but coordinated projects, including the construction of significant new
office and production facilities and the redevelopment of certain underused or deteriorated downtown properties. To date,
the City has approved a redevelopment agreement pursuant to which it agrees to use lease-purchase and other available
sources of financing to build two new parking garages serving the First National Bank's existing and new facilities and to
provide related street and sewer improvements. Pursuant to the redevelopment agreement, the First National Bank has
entered into a long-term lease of a substantial portion of the parking stalls. The City has issued approximately A
$18.200,000 of special tax and lease-purchase bonds with respect to such redevelopment projects.
The City administration has announced its intention that the City,pursuant to a redevelopment plan approved by
the City Council, develop into a public recreational space and site for future development the former metals refining
property currently owned by Asarco (which is ceasing local operations), located on the west bank of the Missouri River
immediately north of Douglas County's downtown Omaha Riverfront Park. It is an express condition of the City's
involvement in the proposed development that Asarco remediate the site pursuant to an agreement with the State of
Nebraska Department of Environmental Quality. In addition, the City's agreement with Asarco includes a reconveyance
provision and provides for the indemnification by Asarco of the City for environmental claims arising from the Asarco
property,for a$1.5 million payment by Asarco to the City and for the acquisition by Asarco on behalf of the City of a$10
million insurance policy against future environmental claims.
The City administration also has announced its intention that the City participate in the acquisition and
construction of a proposed new convention center and sports arena complex to be located in Omaha. The convention
center and sports arena project is in the planning stages. The nature and magnitude of any direct financial commitment by
the City to this project has not been determined, but the City estimates that approximately $200 million of public funds
will be required. The May 9,2000 City ballot will include two propositions relating to that project: an amendment to the
Charter of the City providing for a metropolitan convention center authority to operate and manage this project, and the
approval of the issuance of general obligation bonds by the City to fund all or a portion of this project. The City
anticipates that the sources of payment will include ad valorem taxes, sales taxes, redevelopment taxes and state turnback
revenues received by the City from the State of Nebraska pursuant to the Nebraska Convention Center Facility Financing
Assistance Act.
RATINGS
Standard& Poor's Ratings Services, a division of The McGraw-Hill Companies,Inc. ("S&P"), has given the
Bonds a rating of" " and Moody's Investors Service ("Moody's") has given the Bonds a rating of" ." Any
desired explanation of the significance of such ratings should be obtained from S&P and from Moody's. The City
furnished the rating agencies with certain information and materials relating to the Bonds and the City which have not
been included in this Official Statement. Generally, a rating agency bases its rating on the information and materials so
furnished and on investigations, studies and assumptions made by such rating agency. There is no assurance that a
particular rating will be maintained for any given period of time or that it will not be lowered or withdrawn entirely if, in
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the judgment of the agency originally establishing the rating, circumstances so warrant. The City has undertaken no
responsibility either to bring to the attention of the owners of the Bonds any proposed revision or withdrawal of the rating
of the Bonds or to oppose any such proposed revision or withdrawal. Any such change in or withdrawal of such rating
could have an adverse effect on the market price of the Bonds. Any explanation of the significance of such ratings should
be obtained from the rating agency furnishing such rating.
CONTINUING DISCLOSURE
The Ordinance includes the City's undertaking(the"Undertaking")for the benefit of the holders and beneficial
owners of the Bonds to send certain financial information and operating data to certain information repositories annually
and to provide notice to the Municipal Securities Rulemaking Board or certain other repositories of certain events,
pursuant to the requirements of Section(b)(5)(i) of Securities and Exchange Commission Rule 15c2-
12(17 C.F.R. §240.15c2-12)(the"Rule"). See APPENDIX C—Form of Continuing Disclosure Undertaking.
The City inadvertently did not timely file a portion of its annual financial information and operating data for its
fiscal year ended December 31, 1996 and, in accordance with its related undertakings and the Rule, filed with the
information repositories a material event notice to such effect, together with the complete fiscal year 1996 financial
information and operating data. The City now is in compliance with each of its undertakings under the Rule.
A failure by the City to comply with the Undertaking will not constitute an event of default with respect to the
Bonds,although any holder will have any available remedy at law or in equity, including seeking specific performance by
court order,to cause the City to comply with its obligations under the Undertaking. Any such failure must be reported in
accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before
recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely
affect the transferability and liquidity of the Bonds and their market price.
LEGAL OPINION
The approving opinion of Kutak Rock ("Bond Counsel") will affirm, among other things, that the Bonds have
been authorized and issued in accordance with the Constitution and statutes of the State of Nebraska and the Charter of
the City of Omaha, and constitute valid and legally binding obligations of the City, and that the City has power and is
obligated to levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all the property within the
City subject to taxation by the City without limitation as to rate or amount. The rights of the holders of the Bonds and the
enforceability thereof may be subject to valid bankruptcy, insolvency, reorganization, moratorium and other laws for the
relief of debtors.
TAX EXEMPTION
In the opinion of Kutak Rock,Bond Counsel,to be delivered at the time of original issuance of the Bonds,under
existing laws, regulations, rulings and judicial decisions, interest on the Bonds is (a)excluded from gross income for
federal income tax purposes and (b)is not a specific item of tax preference for purposes of the federal alternative
minimum tax imposed on individuals and corporations. Interest on the Bonds,however,will be included in the"adjusted
current earnings"(i.e.,alternative minimum taxable income as adjusted for certain items,including those items that would
be included in the calculation of a corporation's earnings and profits under Subchapter C of the Internal Revenue Code of
1986,as amended(the"Code"))of certain corporations and such corporations are required to include in the calculation of
alternative minimum taxable income 75% of the excess of each such corporation's adjusted current earnings over its
alternative minimum taxable income(determined without regard to this adjustment and prior to reduction for certain net
operating losses).
The opinions set forth above are subject to continuing compliance by the City with its covenants regarding
federal tax laws in the Ordinance. Failure to comply with such covenants could cause interest on the Bonds to be included
in gross income retroactive to the date of issue of the Bonds.
The accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of certain
recipients such as banks, thrift institutions, property and casualty insurance companies, corporations (including
S corporations and foreign corporations operating branches in the United States), Social Security or Railroad Retirement
benefit recipients, A taxpayers otherwise entitled to claim the earned income credit or taxpayers who may be deemed to
have incurred or continued indebtedness to purchase or carry tax-exempt obligations, among others. The extent of these
other tax consequences will depend upon the recipients'particular tax status or other items of income or deduction. Bond
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Counsel expresses no opinion regarding any such consequences and investors should consult their own tax advisors
regarding the tax consequences of purchasing or holding the Bonds.
In Bond Counsel's further opinion,under the existing laws of the State of Nebraska,the interest on the Bonds is
exempt from Nebraska state income taxation so long as it is exempt for purposes of the federal income tax.
FINANCIAL STATEMENTS
The general purpose financial statements of the City as of and for the year ended December 31, 1998. included as
Part Two of Appendix B have been audited by KPMG LLP, independent certified public accountants, as stated in their
report appearing therein.
CERTIFICATION AS TO OFFICIAL STATEMENT
The City of Omaha, Nebraska, will furnish a certificate signed on its behalf by Louis A. D'Ercole, Finance
Director of the City of Omaha, and delivered concurrently with the delivery of the Bonds,to the effect that at the date of
this Official Statement and at the date of delivery of the Bonds, (i)the information and statements, including financial
statements, of or pertaining to the City, contained in this Official.Statement were and are correct in all material respects;
and(ii)insofar as the City and its affairs, including its financial affairs,are concerned,this Official Statement did not and
does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
The City, by such certificate, will further confirm to the effect that insofar as the descriptions and statements, including
financial data, contained in the Official Statement of or pertaining to nongovernmental bodies or governmental bodies
other than the City are concerned,such descriptions,statements and data have been obtained from sources believed by the
City to be reliable,and that the City has no reason to believe that they are untrue or incomplete in any material respect.
The execution and delivery of the foregoing certificate will be authorized by the City Council of the City of
Omaha,Nebraska.
LITIGATION
The City is party to legal proceedings which occur in government operations and include claims for property
damage and personal injury, contract disputes, discrimination claims and property condemnation proceedings. The legal
proceedings, in the opinion of the City management,based on the advice of the City Attorney,are not expected to have a
materially adverse effect on the City's financial position at December 31, 1998, after giving effect to available funds
provided for such contingencies in the Judgment, Cash Reserve and Contingent Liability Reserve Funds and alternative
methods of satisfying judgments,these being identified as:
—City's authority to levy under Judgment Fund set by Home Rule Charter.
—State Statute, Section 77-1620 R.R.S. 1943, which authorizes a special levy for payment of
judgments.
—State Statute, Section 23-2415 R.R.S. 1943, which authorizes the City to borrow money from the
State to satisfy judgments.
In addition to amounts recorded by the City as other accrued liabilities,as of the date of this Official Statement,
the City Attorney is of the opinion that there is a reasonable possibility that the City will incur additional losses on these
lawsuits not to exceed IS ].
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APPENDIX A
CITY OF OMAHA-GENERAL INFORMATION
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APPENDIX A
CITY OF OMAHA—GENERAL INFORMATION
Form of Government
Omaha operates with a Mayor-Council form of government. As a home-rule city, Omaha has all of the powers
available to a home-rule city under the Nebraska Constitution. The Mayor and Council,consisting of seven members,are
elected for four-year terms. The Mayor is elected in a city-wide election while the City Council members are elected by
district.
City Administration
The executive and administrative powers of the City are vested in the Mayor, who is popularly elected for four
years on a nonpartisan basis. The Honorable Hal Daub, Omaha's Mayor,was reelected on May 13, 1997 to a four-year
term of office ending in June 2001. Mayor Daub originally assumed his office on January 9, 1995. Prior to his December
1994 election to the mayoralty, Mayor Daub, an attorney and businessman in his private capacity, served four terms as a
Congressman in the United States House of Representatives from 1981-1989 and, thereafter, as a principal and
international trade specialist with the accounting firm of Deloitte and Touche.
The head of the City's Finance Department is the Finance Director of the City, Louis A. D'Ercole, who was
appointed Acting Finance Director in March 1995 and Finance Director in June 1997. Following his graduation from the
University of Nebraska at Omaha and service in the United States Army, Mr.D'Ercole joined the Finance Department of
the City in 1968 and has held the positions of Accountant/Auditor,Budget Analyst,Budget and Accounting Manager and
City Comptroller.
Location and General Background
Omaha, founded in 1854, is the largest city in the State of Nebraska. Omaha is the hub of a vast transportation
network leading to all parts of the nation and thus offers significant advantages to business and industry competing in
regional and national markets. This fact is substantiated by the growth of population, employment and income during
recent years.
Area and Population
The population of the five-county Omaha Metropolitan Statistical Area ("MSA"), comprising four Nebraska
counties and one Iowa county,numbered an estimated 703,900 as of January 1998. As of January 1998,the population of
the City of Omaha was an estimated 364,300,an increase of 7,500 over the 1997 estimate of 356,800 people.
Transportation
Eleven jet carriers and four commuter airlines currently handle flights in and out of Eppley Airfield. In 1997,
3,552,057 passengers used Eppley Airfield,located less than 15 minutes driving time from downtown Omaha.
Omaha is general headquarters for the Union Pacific Railroad. Five other mainline railroads and a terminal
railway combine to make Omaha an important rail center.
Two interstate highways(Interstate 80 and Interstate 29),five federal highways and seven state highways provide
fast all-weather routes within Nebraska and to and from the rest of the nation. In addition,Interstate 480(downtown spur)
and Interstate 680(circumferential route)provide quick access to all parts of the metropolitan area.
More than 85 motor common carriers haul freight to and from Omaha and all parts of the nation,making Omaha
a major midwestern trucking center. Greyhound Bus Lines furnishes Omaha with transcontinental passenger service.
Several smaller bus lines operate between Omaha and points in Iowa and Nebraska.
Utility Services
Residential, commercial and industrial electric service rates in Omaha historically have been below the national
averages, according to reports of the Edison Electric Institute in its Statistical Yearbook of the Electrical Utility Industry.
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In addition to low rates,the Omaha Public Power District, a Nebraska political subdivision, assures its customers ample
power with a net generating capability of 1,926,000 kW.
The Metropolitan Utilities District("MUD"), a Nebraska political subdivision, distributes natural gas and water
in the Omaha area. Rates compare favorably with those prevailing in other metropolitan areas in the nation. Omaha has a
plentiful water supply (Missouri River and Platte River wells) and a water system designed to the standards of the
National Board of Fire Underwriter,with a current capacity of 218 million gallons a day. MUD's supply of natural gas is
purchased wholesale from Northern Natural Gas Company. This supply is supplemented with peak-shaving storage
facilities which can provide up to approximately 30% of peak demand. There have been no interruptions of natural gas
service to firm commercial and residential customers and no interruptions are expected in the foreseeable future. MUD
continues to add new natural gas customers.
Education
Omaha is an important educational center and is the location of Creighton University,the University of Nebraska
at Omaha and the University of Nebraska Medical Center. These institutions, together with three additional colleges
located in Omaha, offer educational programs at the graduate and undergraduate levels, in law, and in the health
professions: medicine,dentistry,nursing and pharmacy.
Public elementary and secondary education are provided by four local school districts: School District of Omaha,
Douglas County School District No.66,School District of Millard,and School District of Ralston. The School District of
Omaha has the largest enrollment of pupils residing within the City. The City is also served by a number of private and
parochial schools at both the elementary and secondary levels.
Health Services
There are 13 hospitals within the City of Omaha, six of them classified as acute-care community hospitals. Of
the remaining seven hospitals, two are acute-care hospitals operated by governmental entities (one by the State of
Nebraska and one by Douglas County),four are specialized hospitals(pediatrics,maternity care,geriatrics and psychiatry),
and one is a major hospital of the Veterans Administration. There are more than 1,200 physicians and more than
300 dentists in Omaha;their services are utilized both by Omaha residents and by persons within the surrounding region.
Military
The United States Strategic Command ("StratCom") is headquartered at Offutt Air Force Base, just south of
Omaha. StratCom has been assigned planning and targeting responsibility for the nation's strategic nuclear weapons.
Economy
From an economy founded on the livestock industry in the late nineteenth century, Omaha has become a major
grain market in the United States. Food processing is also an important part of the economy and is represented by such
companies as ConAgra,Inc.,Kellogg Company and Vlasic Foods.
Concurrently with the growth of the City's agribusiness industry,new and related industries began to develop in
the area. The City has an increasingly well-diversified economy, although it still remains agriculturally oriented. The
Omaha MSA contains more than 670 manufacturing plants, including plants operated by Lucent Technologies (formerly
AT&T Technologies Inc.), Vickers,Inc. (a Trinova Company), Lozier Corporation and Valmont Industries Inc. In the
early 1980's, Omaha began developing as a major participant in. the reservation and direct-response center industry.
Currently,there are 27 such firms located within the City. In total they employ a labor force in excess of 20,000. Major
employers in this group include First Data Resources, Hyatt Reservations, Idelman Telemarketing,Inc., Marriott
Reservations,Wats Marketing of America,West Telemarketing and 900 Services,Inc.
Omaha is the home of 32 insurance companies, including Mutual of Omaha,the world's largest mutual health
and accident company, and Woodmen of the World Life Insurance Society, the largest fraternal life insurance company.
The district offices of the Farm Credit System for Nebraska, Iowa, South Dakota and Wyoming are headquartered in
Omaha. The Farm Credit Bank of Omaha,among the largest in the system,has loans outstanding of over$3.8 billion. A
branch Federal Reserve Bank and 20 commercial banks are located within the city limits of Omaha.
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First Data Resources, Inc., Union Pacific Railroad, Berkshire Hathaway and ConAgra,Inc. maintain their
headquarters in Omaha.
During 1997,the annual average unemployment rate for the Omaha MSA was 2.5%,compared with 4.9%for the
United States as a whole. The Omaha MSA unemployment rate in July 1998 was 2.1%,compared with a rate of 4.7%for
the United States as a whole.
Year 2000 Issues
Many computer-based financial, information and operational systems may not be able to properly interpret and
apply some dates before and following December 31, 1999 (commonly referred to as the Year 2000 problem). If not
corrected, malfunction of these systems could adversely impact information processing and system operations. The City
began systems review in mid 1996 and has been working on resolution of the issue since that time. A formal plan was
developed and has been revised and expanded as additional information has become available.
All of the City's computer systems are in the process of being evaluated. The City's outsourced host, Douglas
County Information Services ("DC1S"), is in the process of replacing mainframe subsystems under vendor contract.
Mainframe programs and data are in off-shore Year 2000 remediation and are expected to be tested in 1999. The City's
accounting system will be brought to Year 2000 compliance by the current vendor with source code transfer to DCIS at
the end of year 1999 and possible conversion to a new compliant system in year 2000. Major enterprise systems on City
servers—geographic information systems, personnel/payroll, maintenance management, Policy-Fire records management
system, etc.—are fully compliant now. Regulations to be promulgated regarding PC's and network systems involve
published critical benchmark dates in 1999. By October 1, 1999,. all networked systems will no longer accept less than
Pentium/PowerMac hardware,obsolete operating systems and less than current business application software.
Inventory, evaluation, repair and testing of the City's embedded systems are the responsibility of each
department or agency that owns those systems. Material, equipment and service providers are being contacted to assure
that they will be able to continue to provide critical supplies and services prior to, during and following the transition to
the Year 2000. The City has contacted the Trustee about the Year 2000 status of its bond paying agency, registrar and
trustee systems.
The City has managed networked Year 2000 remediation through its existing budgetary structure. For those
computing systems under the City's day-to-day control, programs and data on City servers and the networked
micro systems infrastructure,the City estimates 80%Year 2000 compliance at the end of year 1998 and 100%compliance
at the end of year 1999.
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Selected Economic Indicators
Omaha MSA Population and Employment
Population' Employment2
1950 366,395 163,050
1960 457,873 188,950
1970 542,646 214,650
1980 569,614 261,532
1990 618,262 331,953
1991 624,200 326,360
1992 634,900 333,887
1993 656,434 335,540
1994 662,801 368,772
1995 670,322 357,190
1996 696,400 385,988
1997 703,900 398,269
'Source: United States Bureau of Census.
2Estimated annual averages based on labor force available, from Reports of Nebraska Department of Labor, Division of
Employment Research and Statistics.
Largest Employers-City of Omaha
May 1998
Offutt Air Force Base* Department of Defense 11,000
Alegent Health Health Care 7,000
First Data Card Services Group Credit Card Processors 6,500
Omaha Public Schools School System 6,300
University of Nebraska Medical Center University,Hospital,Clinics 6,200
Mutual of Omaha/United of Omaha Insurance 5,500
Methodist Health System Health Care 4,500
Union Pacific Railroad Railroad 3,900
Oriental Trading Co. Wholesale 3,500
Baker's Supermarkets Retail 3,400
Lucent Technologies Communications 3,200
City of Omaha Municipal Government 3,200
*Located in Sarpy County(immediately south of Omaha)
Omaha MSA Nonagricultural Wage and Salary Employment
Average for
1997 August 1998
%of %of
Number Total* Number Total*
Industry
Manufacturing ' 39,652 9.96 42,431 10.23
Construction and Mining 18,393 4.62 21,605 5.21
Transportation,Communications and Utilities 28,002 7.03 29,364 7.08
Retail Trade 69,715 17.50 70,743 17.06
Wholesale Trade 25,917 6.51 27,082 6.53
Finance,Insurance and Real Estate I 34,405 8.64 37,666 9.08
Services 131,375 32.99 138,201 33.32
Government 50,810 12.76 47,723 11.51
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Total ,398,269 100.01 414,815 100.02
*Total greater than 100%due to rounding.
Source: Estimated annual averages based on place of employment, from Reports of Nebraska Department of Labor,
Division of Employment and Research Statistics.
•
Omaha MSA Effective Buying Income*
Year Total(000) Per Household
1950 $ 558,006 $ 4,978
1960 966,698 6,856
1970 1,956,095 11,734
1980 4,991,836 21,524
1990 9,527,248 31,166
1991 9,728,236 34,898
1992 10,572,879 ; 35,980
1993 11,001,262 37,227
1994 11,567,201 38,596
1995 11,813,171 38,825
1996 12,672,246 39,389
1997 13,547,027 41,365
*Effective Buying Income: personal income (wages, salaries, interest, dividends, profits and property income) minus
federal,state and local taxes.
Source: Annual surveys of buying power,Sales and Marketing Management.
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Retail Sales—Douglas County
Retail Retail
Year Sales(000) Year Sales(000)
1980 $1,873,004 1989 $3,481,232
1981 2,017,847 1990 3,717,333
1982 2,250,087 1991 3,567,814
1983 3,073,914 1992 4,266,146
1984 2,739,494 1993 4,739,758
1985. 2,904,388 1994 5,058,311
1986 3,163,571 1995 5,248,178
1987 3,074,692 1996 5,203,261
1988 3,311,816 1997 5,558,533
Source: Sales and Marketing Management.
Banking Activity
Year Bank Clearings ; Year Bank Clearings
1950 $ 6,833,253,983 1992 $40,931,943,464
1960 9,796,472,675 1993 34,940,684,074*
1970 16,751,962,240 1994 31,868,830,077
1980 31,915,078,877 1995 34,042,393,113
1990 38,383,435,837 1996 36,183,032,747
1991 38,119,116,503 1997 34,466,580,021
*Effective July 1, 1993,the Federal Reserve Bank changed its policy with respect to the amounts that are included in this
total. The effect of the change was a reduction in Bank Clearings reported rather than a reduction in activity.
Source: Federal Reserve Bank of Kansas City.
Value of Building Permits—City of Omaha
Year Amount Year Amount
1950 $ 24,105,401 1992 $284,328,785
1960 46,927,523 1993 301,972,761
1970 61,626,242 1994 313,879,897
1980 136,736,312 1995 305,036,452
1990 318,473,517 1996 390,089,095
1991 286,025,269 1997 424,300,411
Source: Department of Permits and Inspections,City of Omaha.
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APPENDIX B
CITY OF OMAHA—FINANCIAL INFORMATION
PART ONE
Selected City of Omaha Financial Information
PART TWO
Independent Auditors'Report and General Purpose Financial Statements
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APPENDIX B
CITY OF OMAHA—FINANCIAL INFORMATION
PART ONE
SELECTED CITY OF OMAHA FINANCIAL INFORMATION
CITY OF OMAHA GENERAL FUND STATEMENT OF REVENUE,
EXPENDITURES AND CHANGES IN FUND BALANCE
Five Years Ended December 31,1998
1994 1995 1996 1997 1998
Revenue: $47,876,757
Property taxes $44,043,664 $46,135,190 $49,045,482 $50,702,661
City sales and use tax 66,875,807 69,814,452 72,648,827 78,813,502 84,399,858
Business taxes 21,610,353 21,855,710 18,456,299 20,313,275 22,284,836
• Licenses and permits 4,075,181 4,505,667 5,227,089 5,592,435 5,765,767
Intergovernmental revenue 5,206,806 5,579,103 10,164,635 9,979,873 9,617,779
Charges for services 7,603,140 8,305,645 9,273,745 9,800,334 10,439,497
Investment income 2,357,026 4,069,580 3,752,472 3,885,504 4,377,288
Rents and royalties 320,148 352,094 330,147 298,470 299,405
• Miscellaneous 589,430 1,702,253 595,274 667,095 839,043
Total revenue $152,681,555 $162,319,694 $169,493,970 $180,053,148 $185,900,230
1994 1995 1996 1997 1998
Revenue: $47,876,757
Property taxes $44,043,664 $46,135,190 $49,045,482 $50,702,661
City sales and use tax 66,875,807 69,814,452 72,648,827 78,813,502 22,284,836
Business taxes 21,610,353 21,855,710 18,456,299 20,313,275 5,765,767
Licenses and permits 4,075,181 4,505,667 5,227,089 5,592,435 9,617,779
Intergovernmental revenue 5,206,806 5,579,103 10,164,635 9,979,873 10,439,497
Charges for services 7,603,140 8,305,645 9,273,745 9,800,334 4,377,288
Investment income 2,357,026 4,069,580 3,752,472 3,885,504 299,405
Rents and royalties 320,148 352,094 330,147 298,470 839,043
Miscellaneous 589,430 1,702,253 595,274 667,095
Total revenue $152,681,555 $162,319,694 $169,493,970 $180,053,148 $185,900,230
Expenditures:
General government 19,918,689 24,593,689 20,962,752 20,943,378 21,561,211
• Parks, recreation& public 13,990,022 14,187,579 13,217,900 15,553,994 17,954,126
property 61,900,313 57,573,160 76,521,840 98,758,384 102,733,252
Public safety 13,636,165 18,446,592 15,343,372 15,898,778 14,188,779
Public works 3,992,385 5,433,643 4,943,115 5,899,767 6,594,497
Public library 25,647,435 31,676,957 30,009,047 7,631,271 8,210,338
Retiree benefits 1,950,602 2,213,716 2,786,050 2,847,592 4,186,103
• Lease-purchase agreements 4,872,411 4,160,955 4,495,625 6,465,195 6,105,137
Other
Total expenditures $145,908,022 $158,286,291 $168,279,701 $173,998,359
$181,463,443
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Excess (deficiency) of
revenues 6,773,533 4,033,403 1,214,269 6,054,789 4,436,787
over expenditures
Other sources(uses)of
financial resources: 1,690,038
Initial credit 1,102,618 1,461,246 1,663,963 1,674,990 (4,170,168)
Operating transfers(net) (6,212,188) (3,819,659) (2,884,237) (3,648,578)
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Net other sources(uses)
of financial resources (5,109,570) (2,358,413) 1,696,043 {209,597) (257.171)
Excess (deficiency) of
revenues
over expenditures and
other 1,663,963 1,674,990 1,690,038 3,871,604 2,213,828
sources(uses)of
financial resources*
Fund balance, beginning of 2,563,864 3,125,209 3,338,953 3,365,028 5,561,642
year (1,102,618) (1,461,246) (1,663,963) (1,674,990) (1,690,038)
Less—initial credit
Fund balance,end of year $ 3.125.209 $ 3,338,953 $ 3.365,028 $ 5,561.642 $ 6,085,432
*City of Omaha procedure in General Fund budgeting is as follows:at the end of each fiscal year the excess, if any,of revenues and adjustments over
expenditures and encumbrances is determined. Any such excess,less extraordinary transfers out,if any,is used as the initial credit to the General Fund
Budget for the second year following the year in which the excess has arisen.
Source: Records of the Finance Department,City of Omaha.
CITY OF OMAHA GENERAL DEBT SERVICE FUND
STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCE
Five Years Ended December 31,1998
1994 1995 1996 1997 1998
Revenue:
Taxes $22,000,258 $21,749,152 $23,194,346 $22,708,903 $25,096,049
Receipts in lieu of taxes 75,567 68,501 70,351 71,721 85,867
Interest income 283,958 0 209,533 220,953 305,542
Total revenue 22,359,783 21,817,653 23,474,230 23,001,577 25,487,458
Contributions from annexed areas—net 2,560,996 1,609,780 3,174,900 3,580,168 4,472,083
Total revenue and contributions 24,920,779 23,427,433 26,649,130 26,581,745 29,959,541
Expenditures:
Outside services:
Professional fees&liabilities 21,604 1,556,292 486,660 407,167 347,933
Collection fees 224,693 217.457 235,274 203,893 251,866
Total outside services 246,297 1,773,749 721,934 611,060 1,117,536
General obligation bonds:
Interest expense 7,652,129 7,807,098 7,935,990 8,716,473 9,578,155
Bonds retired 13,762,625 30,298,547 17,685,000 30,485,000 55,870,000
Total general obligation bonds 21,414,754 38,105,645 25,620,990 39,201,473 65,448,155
Total expenditures 21,661,051 39,879,394 26,342,924 39,812,533 66,565,691
Excess of revenues and
contributions over(under) 3,259,728 (16,451,961) 306,206 (13,230,788) (36,606,150)
expenditures
Other financing sources(uses):
Refunding Bonds 0 17,845,832 3,255,000 24,050,000 36,731,929
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Excess of revenues and
contributions over(under)
expenditures and other financing
sources) 3,259,728 1,393,871 3,561,206 10,819,212 125,779
Fund balance at beginning of year 11,523,539 14,783,267 16,177,138 19,738,344 30,557,557
Fund balance at end of year $14,783.267 $16,177.138 $19.738.344 $30,557,556 $30,683,336
Source: Records of Finance Department,City of Omaha.
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Property Valuations and Debt Ratios
as of December 31
1995 1996 1997 1998 1999
Actual Valuation" $10,949,475,973 $11,779,497,682 $12,867,909,73 ^ $13,528,222,52
6 $12,583,890,16 2
2
Net Direct General
Obligation Bonded 137,232,862 1.44 202 045 156,002,444 172,613,233 194,000000
A Debt '
%of Net Direct General
Obligation Bonded
Debt to Actual
Valuation 1.25% 1.22% 1.21% 1.37% A 43%
'Source: Records of Accounting Department,Office of the Douglas County Clerk.
•
2 The City has a property valuation of 515 746 107.705 for the year ending on December 31 2000
3 Amounts^shown above as Direct General Obligation Bonded Debt are net of the fund balance in the Debt Service Fund. See"CITY OF OMAHA DEBT SERVICE FUND
STATEMENT OF REVENUE,EXPENDITURES AND A CHJANGES IN FUND BALANCE."
Population,Net General Bonded Debt and Per Capita Debt
Per Capita
Net Direct Net Direct
General Obligation General Obligation
Year Population' Bonded Debt2'3 Bonded Debt
1950. 251,117 $ 11,100,500 $ 44.20
1960 301,598 30,697,871 101.78
1970 346,929 71,586,248 206.34
1980 313,911 73,939,298 235.54
1990 335,795 115,435,013 343.77
1991 338,300 123,242,603 364.30
1992 342,600 125,857,549 367.36
1993 342,885 127,586,461 372.10
1994 346,338 128,491,733 371.00
1995 349,007 137,232,862 393.21
1996 354,263 144,202,045 407.05
1997 357,777 156,002,444 436.03
1998 367,379 170,155,000 463.16
'Source: United States Census.
2Records of the Finance Department,City of Omaha.
3In 1982,the City of Omaha inaugurated a new annexation policy. The current annexation policy is designed to create annual,balanced annexation packages
and establish consistency from year to year. Such annexation packages combine areas with relatively high outstanding indebtedness in relation to assessed
valuation with other areas that have a more positive financial picture. These balanced packages can then be added to the City without tax increase to cover
retirement of the additional debt assumed by the City. Under this approach,Omaha has grown by approximately 53,000 people and 22 square miles as a
result of annexations since 1980.
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OVERLAPPING DEBT
Listed below are the political subdivisions which have the power to levy taxes and the amount of net bonded
indebtedness of each,as of September 1, 1999,applicable to the taxable property within the City of Omaha:
%Applicable to $Amount
Bonds Outstanding City of Omaha Applicable
Douglas County' $19,590,000 81.11 $15,889,449
Omaha-Douglas Public Building Commission2 6,475,000 81.11 5,251,875
School District of Omaha? 52,145,000 90.31 47,092,149
School District of Ralston3 10,430,000 73.91 7,708,813
School District of Millard' 132,145,000 74.47 98,408,381
School District of Elkhorn' 24,250,000 .04 97,000
School District No.66 of Douglas County'Net
Overlapping Bonded Debt 27,330,000 100.00 27,330,000
$202,650,667
'Douglas County,under various lease purchase agreements,is obligated to provide for annual rental payments. From 1999 to 2005 the highest annual
payment is approximately$2,465,401 (in the 2001/2002 fiscal year),the lowest annual payment is approximately$414,315(in the 2004/2005 fiscal
year),and the average annual payment is approximately$1,867,842.
2Payable from certain property tax revenues and payments to be made to it by the City of Omaha and Douglas County under certain contractual
agreements. Actual rental payments by the City for 1998 were$890,728. The Act authorizing issuance of bonds by the Omaha-Douglas Public Building
Commission(the"Commission")permits the Commission to levy a tax of$.017 per$100 of actual valuation on all the taxable property in Douglas
County;the levy for 1998-99 is$0.0122 per$100 of actual valuation. However,although the same Act authorizes the City to levy a tax on all the taxable
property in the City,except intangible property,of$.017 per$100 of actual valuation in excess of the Charter limitation described under"AUTHORITY
TO LEVY TAXES"in this Appendix B, if and to the extent necessary to make the City's payments to the Commission,no such levy has ever been
made by the City for such purpose.
3Tax levies for general obligation bond sinking fund purposes are unlimited as to amount. Residents of the City reside in one of the five school districts
and pay taxes only to that school district.
LONG-TERM CONTRACTUAL AGREEMENTS
The City of Omaha, under certain existing contractual agreements (including lease purchase agreements), is
obligated to provide for annual payments which are a charge on the General Fund and Special Revenue Funds. From 2000
to 2018,the highest annual payment is $7,198,621 (in 2001),the lowest is $1,800,773 (in 2018), and the average annual
payment is $3,567,869, not including payments relating to the Agreement and the Bonds offered by this Official
Statement. Such annual payments are included as General Fund budgetary items for which annual appropriations are
required. Under the Charter of the City of Omaha,the outstanding amount of any lease purchase agreements executed by
the City as vendee or as lessee is not chargeable against the City debt limit.
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City of Omaha and Local Authorities and Districts
Revenue and Special Obligation Bonds Outstanding*
as of December 31,1998
City of Omaha:
Sanitary Sewerage System Revenue Bonds $15,220,000
Tax Increment Bonds and Notes 45,335,109
Special Tax Revenue Bonds 14,595,000
Omaha Public Power District 922,545,000
Metropolitan Utilities District of the City of Omaha -0-
Airport Authority of the City of Omaha 58,900,000
Omaha Housing Authority 9,687,140
*Revenue bond indebtedness is not general obligation debt of the City. Principal and interest are paid solely from revenues arising from operations of
the respective City facilities or of the Authority or District issuing such revenue bonds. No taxes are levied for payment of either principal or interest.
Nor are the Tax Increment Bonds and Notes and Special Tax Revenue Bonds referred to above general obligations of the City. Principal and interest are
paid(1)either from that portion of the ad valorem tax on real property in a redevelopment project which is in excess of that portion of the ad valorem tax
upon real property in such redevelopment project produced by the levy at the rate fixed each year by or for each public body levying a tax in such
redevelopment project on the valuation for assessment of the taxable real property as last certified for the year prior to the providing for division of such
taxes pursuant to the redevelopment plan or(2)from special tax revenues collected pursuant to redevelopment laws.
AUTHORITY TO LEVY TAXES
• Under the City Charter, the tax levy of the City in any year for all purposes shall not exceed the total of
(i)$.6125 per $100 of actual taxable value plus (ii)whatever tax levy is necessary to provide for principal and interest
payments on the indebtedness of the City, for the administrative expenses incurred in issuing and maintaining bonds, and
for the satisfaction of judgments and litigation expenses in connection therewith,plus(iii)whatever amount is required to
finance certain overtime and holiday pay for members of the police force. In addition, the Omaha-Douglas Public
Building Commission Act pursuant to which the Commission issues bonds empowers the City to levy a tax on all the
taxable property in the City, except intangible property, of$.017 per $100 of actual valuation in excess of the Charter
limitation if and to the extent necessary to make the City's payments to the Commission.
•
Effective July 1, 1998, the tax levy of the City(exclusive of levies for preexisting lease-purchase contracts and
bonded indebtedness approved according to law and secured by a levy on property) will be limited by state law to
450/$100 of taxable valuation. See"THE BONDS—Security—Changes to State Property Tax System" in the Official
Statement.
The City's tax levy during its current fiscal year ending December 31, 1999 is shown in the following table. No
. separate levy above the Charter limitation was made for payments to the Omaha-Douglas Public Building Commission. A
levy of the additional $.017 authorized by the Omaha-Douglas Public Building Commission Act would have meant an
additional levy of$2,309,440. Set forth in the following table is a detailed summary of the property tax levied on real and
personal property in the City.
•
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Total Property Tax Levies in the City of Omaha
(Levied on Real and Tangible Personal Property)
1995 1996 1997 1998 1999 2000
(amount per$100 of actual valuation)
City of Omaha
General Fund $.4163 $.4113 $.3895 $.3233 $.3098 $.2805
Debt Service Fund .1963 .1913 .1712 .1992 .1976 .1887
Judgment Fund .0043 .0043 .0093 .0109 .0149 .0091
Riverfront Redevelopment Fund .0044 .0044 .0034 .0143 .0101 .0090
Total for City of Omaha $.6213 $.6113 $.5734 $.5477 $.5324 $.4873
•
A 1994-95 1995-96 1996-97 1997-98 1998-92 1999-2000
(amount per$100 of actual valuation)
Other Taxing Units
M.U.D.-Water Hydrants A $.0110 $.0107 $.0099 A$.0095 $.0089 $.0088
Douglas County A.2775 .2886 .2670 .2476 .2476 ,2020
Library-(Unincorporated
Areas Only)A .0488 .0451 .0432 .0438 .0435 .0440
School District of Omaha' A 1.6673 1.6417 1.5258 1.3937 1.2052 1.0771
School District No.66 of
Douglas County' A 1.5355 1.4694 1.5360 1.4562 J.3523 1.2988 A
School District of Ralston' A 1.9023 1.9247 1.7310 1.5518 1.2634 1.2285
School District of Millard' A 1.4718 1.5732 1.5225 1.4995 1.3950 1.3128
School District of Elkhorn' N/A N/A N/A A 1.0732 1.3890 1.2368
State Educational Service
Units A.03822 .03502 .03342 .03182 01502 .01492A
Omaha-Douglas Public
Building Commission A.0149 .0133 .0131 .0131 .0122 .0122
Papio Missouri River
Natural Resources District A.0350 .0334 .0325 .0326 .0326 ,0305^
Metropolitan Technical
Community College A.0776 .0775 .0775 .0771 .074 l 0361^
. Omaha Transit Authority A.0635 .0594 .0548 .0503 .0435 .0375
'Residents in Omaha reside in one of the above five school districts and pay taxes only to that school district.
2Residents residing in school districts other than the School District of Omaha pay^S.0145 or^S 0191.
•
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Major Taxpayers'
The following are firms located within the City of Omaha with the greatest 1999 real estate valuations.
Value of
Taxpayer Real Property
United Benefit Life Insurance $78,651,200
Westroads Mall LLC 67,790,400
Creighton St.Joseph Regional 57,049,700
Oak View Mall Corporation 53,261,000
Simon Property Group 50,665,900
NPX Partners 29,076,000
Lucent Technologies Inc. 28,750,000
Bristol Omaha Hotel Company 26,945,800
Woodmen of the World Life Insurance Society 26,300,000
First Data Resources Inc. 24,101,000
Crescent Real Estate Equities 23,700,000
Regency Associates 22,890,300
Douglas County IDA 21,944,200
Nebraska Furniture Mart 19,634,800
Guarantee Mutual Life 19,495,400
Kellogg USA Inc. 19,333,900
POM Inc. ' 19,266,100
Vanderbilt Ltd. 18,838,500
SFI Ltd.Partnership 13 18,099,500
iIn 1986, valuations for Northwestern Bell Telephone Co. (predecessor in interest to US WEST) and Union Pacific Corp. were $52,368,000 and
$14,212,600,respectively. Since 1987,valuations for these taxpayers have been determined on a statewide basis and taxes are collected by the Nebraska
Department of Revenue. The centrally collected taxes are distributed to local taxing units in proportion to property valuations therein.
Source: Records of the Tax Control Supervisor,Office of the Douglas County Clerk.
•
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PROPERTY TAX COLLECTIONS
Property taxes on tangible property,real and personal,are levied by the City of Omaha,collected by the Douglas
County Treasurer and remitted to the City. Real property taxes are levied September 1 of each year and become due
December 31. The first half of tax payable becomes delinquent the following April 1 and the second half August 1.
Personal property taxes are levied September 1 of each year and become due November 1. The first half of tax payable
becomes delinquent December 15 and the second half the following July 1.
Taxes for Year Shown
Prior Years'
Year Ended Amount % Taxes Total
December 31 Certified Collected Collected Collected Collections
1993 $64,001,413 $62,062,689 97.0% $3,209,644 $65,272,333
1994 65,753,953 64,153,434 97.6 2,996,534 67,149,968
1995 68,020,335 66,426,577 97.7 2,421,640 68,848,2]7
1996 71,998,646 70,393,644 97.8 2,493,088 72,886,732
1997 73,785,881 72,234,650 97.9 2,404,922 74,639,572
1998 68,915,674 67,373,636 97.8 1,604,868 68,978,504
Source: Records of Finance Department,City of Omaha.
DEBT MANAGEMENT
General Obligation Debt Margin
Article V,Section 5.27,Home Rule Charter of the City of Omaha, 1956,as amended,provides:
The total amount of general obligation indebtedness outstanding at any time,which shall include bonds
issued but shall not include bonds authorized until they are issued, shall not exceed 3.5 per cent of the
actual value of taxable real and personal property in the city.
Computation of the general obligation debt margin as defined in the Home Rule Charter, as of December 31,
1998,based upon 1998 valuation,reflects the following:
Maximum debt limit(3.5%of total assessed valuation) $440,436,156
General obligation bonds outstanding $203,365,000
Less balance in General Obligation Debt 30,751,767 172,613,233
Service Fund December 31, 1998
General obligation debt margin $267,822,923
Revenue bond indebtedness, special obligation bonds, general obligation notes and lease-purchase agreements
are not chargeable against the general obligation debt margin. The City of Omaha has no general obligation notes
outstanding. Revenue and special obligation bond indebtedness and lease purchase agreement obligations are set forth
herein under the captions "OVERLAPPING DEBT" and "LONG-TERM CONTRACTUAL AGREEMENTS—City
of Omaha and Local Authorities and Districts Revenue and Special Obligation Bonds Outstanding."
Debt Payment Record
The City of Omaha has never defaulted on its obligations to pay principal of or interest on its indebtedness.
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General Obligation Bonds Authorized But Unissued
Upon the issuance and sale of the City's Various Purpose and Refunding Bonds, Series of 1999, offered by the
Official Statement, there were $[59,400,000] of general obligation bonds authorized but unissued. The City anticipates
that these bonds will be issued in varying amounts annually through 2006.
CASH RESERVE FUND
At a special City election held on November 6, 1984,voters of the City approved an amendment to Section 5.03
of the City Charter to provide in subsection (10) for the establishment of a cash reserve fund ("Cash Reserve Fund")for
the purpose of meeting emergencies arising from:
(a) the loss or partial loss of a revenue source;
(b) an unanticipated expenditure demand due to a natural disaster,casualty loss or act of God;
(c) expenditure demand for the satisfaction of judgments and litigation expenses when the
Judgment Levy Fund balance is inadequate;or
(d) conditions wherein serious loss of life,health or property is threatened or has occurred.
The 1984 amendment to the City Charter authorized the appropriation at the close of any fiscal year for credit to
the Cash Reserve Fund of any amount, or portion thereof, held as General Fund surplus. Income earned on amounts
credited to the Cash Reserve Fund is retained in the fund. The maximum size of the Cash Reserve Fund was established at
an amount equal to 4%of General Fund appropriations.
The ordinance adopted by the City Council to close Fiscal 1984 Accounts provided that the sum of$1,600,000
be transferred from 1984 available budgetary balances as the initial credit to the Cash Reserve Fund to be held as provided
in Section 5.03(10) of the City Charter. The 1998 year end transfer ordinance credited $250,000 to the Cash Reserve
Fund,plus interest earnings of$208,994 increasing the balance as of December 31, 1998 to$3,656,394.
EMPLOYEE RELATIONS: RETIREMENT SYSTEMS
The City of Omaha negotiates with four major unions: The Civilian Management Professional and Technical
Employees Council; The Omaha City Employees,Local No.251;The Omaha Association of Firefighters,Local No.385;
and The Omaha Police Union, Local No. 1. Current agreements with the four unions expire as follows: The Civilian
Management Professional and Technical Employees Council—December 23, 2000; Omaha Association of Firefighters,
Local No. 385—December 22, 2001; Omaha City Employees, Local No.251—December 23, 2000; and Omaha Police
Union,Local No. 1—December 23,2000.
•
The negotiating procedure involves meeting with the designated union representatives and discussing economic
and noneconomic items regarding contractual agreements. At any time, should an impasse be reached, Nebraska law
provides that either party may appeal to the Nebraska Commission of Industrial Relations. Either party may appeal the
decision of such Commission to the Nebraska Supreme Court,whose decision is final.
CITY OF OMAHA EMPLOYEES'RETIREMENT SYSTEM
The City of Omaha Employees' Retirement System became effective on January 1, 1949. Certain of its
provisions,which are governed by Chapter 22.21 of the Omaha Municipal Code,are summarized herein.
All city employees except the following are covered by the plan: police; firefighters; persons paid on a
contractual or fee basis; seasonal, temporary and part-time employees; and elected officials who do not make written
application to the plan.
From July 1, 1972 through December 31, 1976, employees contributed, by payroll deduction,4%of that portion
of their total calendar-year compensation subject to Social Security tax and 8%of the excess;provided,however,that an
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•
employee was permitted to make a five-year irrevocable election not to contribute the 8% on excess pay and receive
benefits based thereon.
From January 1, 1977 through January 31, 1998 employees contributed, by payroll deduction, 4%of their total
calendar-year compensation. The City contributed 5.20%of each member's compensation. Effective February 1, 1998,
employees contribute by payroll deduction 4.85% of their annual compensation, and the City contributes 6.05% of each
member's compensation.
Prior service credit is granted for employment with the City before January 1, 1949,. and membership service
credit is granted for employment thereafter. Compulsory military duty and voluntary military duty in time of war count as
service.
•
Early retirement is permitted at age 55 with five years of service,with the accrued benefit reduced 8%per year
for retirement prior to age 60. For employees whose age plus service equals or exceeds 80,the 8%per year reduction is
eliminated. An employee's monthly pension is equal to 2.0% of average final monthly compensation for each year of
service.
Following is a cash flow analysis of the System for the last five fiscal years:
Receipts 1994 1995 1996 1997 1998
Employee Contributions $ 1,831,045 $1,893,037 $ 1,955,502 $ 2,055,784 $2,500,935
Employer Contributions 2,288,931 2,423,195 2,540,934 2,661,788 3,129,610
Investment Income 12,631,977 17,064,824 16,569,328 16,957,376 14,676,637
• Security Lending Income 58,093 32,953 52,657 81,845 75,217
Total Receipts 16,810,046 21,414,009 21,118,421 21,756,793 20,382,399
Disbursements
Retirement Pensions 5,311,297 5,687,596 6,154,644 6,723,080 7,671,414
Death Benefits 118,000 124,375 119,026 138,333 165,000
Refunds 224,457 541,696 516,216 357,572 3,045,648
Other Disbursements 755,500 805,592 998,566 1,057,023 1,287,006
Total Disbursements 6,409,254 7,159,259 7,788,452 8,276,008 12,169,068
Excess of Receipts
Over Disbursements $10,400,792 $14,254,750 $13,329,969 $13,480,785 $8,213,331
Source:Records of Finance Department,City of Omaha.
Contributions to the System are determined on an actuarial basis by the firm of Milliman&Robertson,Inc. and
include rates that provide for both normal and accrued liability funding. The latest actuarial study by independent actuary
was for the period ended June 30, 1997 and included a 7.5% investment assumption. Summarized below is financial
information concerning the System for the last five fiscal years.
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•
1994 1995 1996 1997. 1998
System Total Assets(at cost)' $136,779,282 $151,034,032 $164,364,001 $177,844,786 $186,058,117*
Employee Contributions' 1,831,045 1,893,037 1,960,957 2,055,784 2,500,935
Employer Contributions' 2,288,931 2,423,195 2,548,025 2,661,788 3,129,610
*Market Value—$227,269,074
Present Value of Past Service Cost2 $ 10,700,808 $ 1.7,265,291.
'System Total Assets,Employee Contributions and Employer Contributions figures are taken from City of Omaha records as of December 31,of each year.
2Complete Actuarial Valuations are performed every other year,the last being for the period ended June 30, 1997. The Present Value of Past Service Cost figure for the
period ended June 30, 1993 is from the report of Mammel,Schropp,Swartzbaugh,Engler&Jones,Inc. (predecessor of Mammel Associates,Inc.)and supporting schedules.
The Present Value of Past Service Cost figure for the period ended June 30,1995 and 1997 is from the report of Milliman&Robertson,Inc.and supporting schedules.
City of Omaha Employees'Retirement System •
Actuarial Balance Sheet
June 30,1997
Resources
Assets $188,979,118
Present Value of Future Employee Contributions 20,800,741
Present Value of Future City Contributions 9,837,229
Present Value of Past Service Cost 17,265,29]
Total Resources $236,882,379
Requirements
Present Value of Benefits(Past and Future Service)
Retired Employees and Beneficiaries
Service Retirements $62,991,455
Vested Terminations 2,364,142
Disability 9,681,225
Spouses and Children 11,539,874
Lump-Sum Death Benefits 1,867,861
$88,444,557
Active Employees and Beneficiaries
Service Retirements $123,124,721
Disability 7,710,817
Death Benefits 12,290,070
Refund of Employee Contributions 5,312,214
$1 48,437,822
Total Present Value of Benefits $236,882,379
Source:Milliman&Robertson,Inc.
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•
POLICE AND FIREMEN'S RETIREMENT SYSTEM
The City of Omaha Police and Firemen's Retirement System became effective on July 1, 1961. Certain of its
provisions,which are governed by Chapter 22.61 of the Omaha Municipal Code,are summarized herein.
Membership in the System is limited to and shall include only probationary and regular uniformed personnel of
the Police and Fire Departments.
Effective in 1998, employees contribute, by payroll deduction, 9.95% of their total monthly salary. The City
contributes 16.5%of each member's total monthly salary and$1,327,600 per annum in liquidation of the accrued liability
for prior service credit.
Retirement is optional at age 50 with 20 to 24 years of service or 25 years of service with a lifetime monthly
service retirement benefit equal to 45% or 55% of average final monthly compensation, respectively. Every additional
one-half year of service past 25 years increases the pension benefit by 1%to a maximum of 65%with 30 years of service.
Following is a cash flow analysis of the system for the last five fiscal years:
Receipts 1994 1995. 1996 1997 1998
Employee Contributions $4,864,435 $5,891,964 $6,007,689 $ 6,058,773 $6,925,198
Employer Contributions 5,559,367 6,691,436 9,356,970 10,094,543 11,372,223
Prior Service Contributions 1,327,600 1,327,600 1,327,600 1,327,600 1,327,600
Investment Income 15,134,787 18,394,234 30,593,682 36,266,227 38,762,264
Security Lending Income 71,297 72,368 24,927 224,051 269,496
26,957,486 32,377,602 47,310,868 53,971,194 58,656,781.
Disbursements
Retirement Pensions 10,892,870 11,558,275 12,351,032 13,576,199 15,327,991
Death Benefits 133,974 53,025 51,832 14,500 16,000
Refunds 175,319 106,987 237,182 107,835 217,279
Other Disbursements 1,356,909 1,458,504 1,376,431 1,916,595 2,059,598
12,559,072 13,176,791 14,016,477 15,615,129 17,620,868
Excess of Receipts $14,398,414 $19,049,577 $33,294,391 $38,356,065 $41,035,913
Over Disbursements
Source:Records of Finance Department,City of Omaha.
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Contributions to the System are determined on an actuarial basis and include rates that provide for normal
funding. Contributions are determined by Milliman&Robertson,Inc.
1994 1995 1996 1997 1998
System Total Assets(at cost)' $191,051,874 $210,101,451 $243,547,075 $281,903,028 $322,938,940
Employee Contributions' 4,864,435 5,891,964 6,007,687 6,058,773 6,925,198
Employer Contributions' 6,886,967 8,019,036 10,684,570 11,422,143 12,699,823
Present Value of Prior Service 15,260,454 15,260,886 15,475,249
Payments'
Unfunded Accrued Liability' 21,908,437 21,704,554 (20,739,014)
'System Total Assets,Employee Contributions and Employer Contributions figures are taken from City of Omaha records as of December 31 of each year.
2Complete Actuarial Valuations are performed every other year. The Present Value of prior Service Payments and Unfunded Accrued Liability figure for 1994 is taken
from reports of Mammel Associates,Inc. The Present Value of Prior Service Payments and Unfunded Accrued Liability figure for 1996 and 1998 are taken from reports
of Milliman&Robertson,Inc.
0
During 1977, on the basis of an actuarial balance sheet prepared as of January 1, 1977, the District Court of
Douglas County,Nebraska made a determination relative to the unfunded liability for past service credits and the method
of funding such amount. The City had adopted a policy whereby the employer contributions each year exceeded the
matching requirements and served to amortize in part the past service costs. Commencing in 1979,the City contributes to
the Police and Firemen's Retirement System the sum of$1,327,600 per year for 50 years to provide for the amortization of
the prior service cost.
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•
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Police and Firemen's Retirement System
Actuarial Balance Sheet
as of December 31,1998
Assets
Fund $339,119,470
Present Value of:
Member Contributions(10.90%) 79,972,254
City Contributions(16.50%) 121,170,083
Prior Service Payments 15,475,249
Unfunded Liability (20,739,014)
Total Assets $534,998,042
Liabilities
Inactive Members:
Service Retirements 95,544,419
• Disability Retirements 42,300,812
Surviving Spouses and Children 14,819,034
Supplemental Pension 27,174,489
Lump Sum Death Benefits 438,210
Terminated Vested 2,674,290
Total Inactive $182,951,254
• Active Members:
Service Retirements 256,926,934
Disability Retirements 64,796,001
Supplemental Pension 21,916,421
Death Benefits 6,442,699
Refund of Contributions 697,459
Vesting 1,267,274
Total Active 352,046,788
Total Liabilities $534,998,042
Source:Milliman&Robertson,Inc.
B-16
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APPENDIX C
FORM OF CONTINUING DISCLOSURE UNDERTAKING
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APPENDIX B
PART TWO
INDEPENDENT AUDITORS'REPORT AND
GENERAL PURPOSE FINANCIAL STATEMENTS
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APPENDIX C
FORM OF CONTINUING DISCLOSURE UNDERTAKING
Following is the text of Section 11 of the Ordinance, comprising the City's continuing disclosure undertaking
pursuant to Securities and Exchange Commission Rule 15c2-12(b)(5)(i).
Section 11. (a)That the City does hereby covenant and agree and enter into a written undertaking for the benefit
of the holders and beneficial owners of the Series 1999 Bonds required by Section(b)(5)(i) of Securities and Exchange
Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (17 C.F.R. §240.15c2-]2) (the
"Rule"). Capitalized terms used in this Section ]] and not otherwise defined in this Ordinance shall have the meanings
assigned such terms in subsection(d)hereof. It being the intention of the City that there be full and complete compliance
with the Rule,this Section shall be construed in accordance with the written interpretative guidance and no-action letters
published from time to time by the Securities and Exchange Commission and its staff with respect to the Rule.
(b) The City undertakes to provide the following information as provided in this Section 11:
(i) Annual Financial Information;
(ii) Audited Financial Statements,if any;and
(iii) Material Event Notices.
(c) (i) The City shall while any Bonds are outstanding provide the Annual Financial Information on or
before the date which is 270 days after the end of each fiscal year of the City (the "Report Date"),to each then existing
NRMSIR and the SID, if any. The City shall include with each submission of Annual Financial Information a written
representation to the effect that the Annual Financial Information is the Annual Financial Information required by this
Section 11 and that it complies with the applicable requirements of this Section 11 and that it has been provided to each
then existing NRMSIR and the SID, if any. If the City changes its fiscal year, it shall provide written notice of the change
of fiscal year to each then existing NRMSIR or the Municipal Securities Rulemaking Board(the"MSRB")and the SID,if
any. It shall be sufficient if the City provides to each then existing NRMSIR and the SID, if any,any or all of the Annual
Financial Information by specific reference to documents previously provided to each NRMSIR and the SID, if any, or
filed with the Securities and Exchange Commission and, if such a document is a final official statement within the
meaning of the Rule,available from the MSRB.
(ii) If not provided as part of the Annual Financial Information, the City shall provide the Audited
Financial Statements when and if available while any Bonds are outstanding to each then existing NRMSIR and the SID,
if any.
(iii) If a Material Event occurs while any Bonds are outstanding, the City shall provide a Material Event
Notice in a timely manner to each then existing NRMSIR or the MSRB and the SID, if any. Each Material Event Notice
shall be so captioned and shall prominently state the date,title and CUSIP numbers of the Bonds.
(iv) The City shall provide in a timely manner to each then existing NRMSIR or the MSRB and to the SID,
if any, notice of any failure by the City while any Series 1999 Bonds are outstanding to provide to the NRMSIRs and the
SID,if any,Annual Financial Information on or before the Report Date.
(d) The following are the definitions of the capitalized terms used in this Section 11 and not otherwise
defined in this Ordinance:
(I) "Annual Financial Information" means the financial information or operating data with
respect to the City,provided at least annually, of the type included in Appendix B of the final official statement
with respect to the Bonds. The financial statements included in the Annual Financial Information shall be
prepared in accordance with generally accepted accounting principles ("GAAP") for governmental units as
prescribed by the Government Accounting Standards Board ("GASB"). Such financial statements may, but are
not required to be,Audited Financial Statements.
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(ii) "Audited Financial Statements" means the City's annual financial statements, prepared in
accordance with GAAP for governmental units as prescribed by GASB, which financial statements shall have
been audited by such auditor as shall be then required or permitted by the laws of the State.
(iii) "Material Event"means any of the following events,if material,with respect to the Bonds:
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults;
(C) Unscheduled draws on debt service reserves reflecting financial difficulties;
(D) Unscheduled draws on credit enhancements reflecting financial difficulties;
(E) Substitution of credit or liquidity providers,or their failure to perform;
(F) Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
(G) Modifications to rights of Bondholders;
(H) Bond calls;
(I) Defeasances;
(J) Release,substitution or sale of property securing repayment of the Bonds;and
(K) Rating changes.
(iv) "Material Event Notice"means written or electronic notice of a Material Event.
(v) "NRMSIR" means a nationally recognized municipal securities information repository, as
recognized from time to time by the Securities and Exchange Commission by no-action letter for the purposes
referred to in the Rule the NRMSIRs as of the date of this Ordinance are: Bloomberg Municipal Repositories,
Post Office Box 840,Princeton,New Jersey 08542-0840, Internet address: Munis(c�bloomberg.com, Telephone:
(609)279-3225, Facsimile: (609)279-5962; DPC Data Inc., One Executive Drive, Fort Lee, New Jersey 07024,
Internet address: nrmsir(idpcdata.com, Telephone: (201)346-0701, Facsimile: (201)947-0107; Standard&
Poor's J.J.Kenny Repository, 456 Floor, 55 Water Street, New York, New York 10041, Telephone: (212)438-
4595, Facsimile: (212)438-3975; Thomson NRMSIR, 3`1 Floor, 395 Hudson Street, New York,
New York 10014, Internet address: Disclosure@tfn.com, Telephone: (212)807-5001 or (800)689-8466,
Facsimile: (212)989-2078, Attention: Municipal Disclosure. See http://www.sec.gov/consumer/nrmsir.htm for
updated NRMSIR information.
(vi) "SID" means a state information depository as operated or designated by the State and
recognized by the Securities and Exchange Commission by no-action letter as such for the purposes referred to in
the Rule. As of the date of this Ordinance,there is not an SID in the State of Nebraska.
(e) Unless otherwise required by law and subject to technical and economic feasibility, the City shall
employ such methods of information transmission as shall be requested or recommended by the designated recipients of
the City's information.
(f) (i) The continuing obligation hereunder of the City to provide Annual Financial Information, Audited
Financial Statements, if any, and Material Event Notices shall terminate immediately once the Bonds no longer are
outstanding. This Section 11,or any provision hereof, shall be null and void in the event that the City obtains an opinion
of nationally recognized bond counsel to the effect that those portions of the Rule which require this Section 11, or any
such provision, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds, provided that the
Issuer shall have provided notice of such delivery and the cancellation of this Section 11 to each then existing NRMSIR or
the MSRB and the SID,if any.
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(ii) This Section 11 may be amended, without the consent of the Bondholders, but only upon the City
obtaining an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto,
will not adversely affect the compliance of this Section 11 and by the City with the Rule,provided that the City shall have
provided notice of such delivery and of the amendment to each then existing NRMSIR or the MSRB and the SID, if any.
Any such amendment shall satisfy,unless otherwise permitted by the Rule,the following conditions:
(A) The amendment may only be made in connection with a change in circumstances that arises
from a change in legal requirements, change in law or change in the identity, nature or status of the obligated
person or type of business conducted;
(B) This Section 11, as amended, would have complied with the requirements of the Rule at the
time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as
any change in circumstances;and
(C) The amendment does not materially impair the interests of Bondholders,as determined either
by parties unaffiliated with the City (such as nationally recognized bond counsel), or by approving vote of
Bondholders pursuant to the terms of the Ordinance at the time of the amendment.
The initial Annual Financial Information after the amendment shall explain,in narrative form,the reasons for the
amendment and the effect of the change,if any,in the type of operating data or financial information being provided.
(g) Any failure by the City to perform in accordance with this Section 11 shall not constitute an Event of
Default with respect to the Series 1999 Bonds. If the City fails to comply herewith, any Bondholder or beneficial owner
may take such actions as may be necessary and appropriate, including seeking specific performance by court order, to
cause the City to comply with its obligations hereunder.
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APPENDIX D
FORM OF OPINION OF BOND COUNSEL
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APPENDIX D
FORM OF OPINION OF BOND COUNSEL
[Letterhead of Kutak Rock]
November , 1999
City Council of the City
of Omaha,Nebraska
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,NE 68183
^$36,570,000
City of Omaha,Nebraska
Various Purpose and Refunding Bonds
Series of 1999
Ladies and Gentlemen:
We have acted as Bond Counsel in connection with the issuance and sale by the City of Omaha, a municipal
corporation in the State of Nebraska, of^ $36,570,000 aggregate principal amount of Various Purpose and Refunding
Bonds, Series of 1999 (the "Bonds"). The Bonds are issuable as fully registered Bonds without coupons dated as of
November 15, 1999 in the denomination of$5,000 or any integral multiple thereof, bearing interest payable semiannually
on May 15 and November 15 of each year commencing May 15, 2000, at the rates per annum set forth in the schedule
below and maturing serially in numerical order on November 15, in each of the years and in the principal amounts as
follows:
Maturity Date Principal Interest Maturity Date Principal Interest
(November 15) Amount Rate (November 15) Amount Rate
2000 A % 2010 A
$1,920,000 $2,120,000
2001 A 2011 A 1,805,000
1,910,000
2002 A 2012 A 1,695,000
2,910,000
2003 A 2013 A 1,600,000
2,320,000
2004 A 2014. A 1,415,000
2,505,000
2005 A 2015 A 1,390,000
2,500,000
2006 A 2016 A 1,200.000
2,500,000
2007 A 2017 1,130,000
2,465,000
2008 A 2018 800,000
2,350,000
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2009 A 2019 800,000
2,235.000
(Accrued Interest To Be Added)
The Bonds maturing November 15, 2010 and thereafter are subject to redemption at the option of the City of
Omaha at any time on or after November 15,2009, in whole or in part in inverse order of maturities and within a maturity
in such manner as the Paying Agent,deems fair,upon the terms and at the prices set forth therein. The Bonds recite that
they are issued by the City of Omaha to provide for payment of (a)the cost of certain (i)streets and highways,
(ii)recreation and culture improvement facilities, (iii)sewers, (iv)public facilities, (v)public safety equipment and
facilities and(vi)heavy equipment and(b)the cost of refunding certain outstanding general obligation indebtedness of the
City, under and pursuant to and in full conformity with the Constitution and Statutes of the State of Nebraska and the
Charter of the City of Omaha,and pursuant to and in full compliance with the proceedings of the City Council of the City
of Omaha duly enacted and adopted.
The City has covenanted in the ordinance pursuant to which the Bonds have been issued to comply with all
necessary provisions of the Internal Revenue Code of 1986,as amended(the"Code"),to preserve the exclusion of interest
on the Bonds from gross income for federal income tax purposes. Noncompliance by the City with such restrictions may
cause the interest on the Bonds to be subject to federal income taxation retroactive to their date of issue.
We have examined the Constitution and Statutes of the State of Nebraska, the Charter of the City of Omaha,
certified copies of proceedings of the City Council of the City of Omaha authorizing the issuance of the Bonds, and an
executed bond of said issue.
In our opinion the Bonds have been authorized and issued in accordance with the Constitution and Statutes of
the State of Nebraska and the Charter of the City of Omaha, and constitute valid and legally binding obligations of the
City, and the City has the power and is obligated to levy ad valorem taxes for the payment of the Bonds and the interest
thereon upon all the property within the City of Omaha subject to taxation by the City of Omaha without limitation as to
rate or amount.
The rights of the owners of the Bonds and the enforceability thereof may be subject to valid bankruptcy,
insolvency,reorganization,moratorium and other laws for the relief of debtors.
It is also our opinion that,assuming compliance by the City of Omaha with the covenant referred to in the third
paragraph of this letter,the interest on the Bonds is excluded from gross income for federal income tax purposes and is not
a special preference item for purposes of the federal alternative minimum tax imposed on individuals and corporations.
Interest on the Bonds, however, must be included in the "adjusted current earnings" of certain corporations (i.e.,
alternative minimum taxable income as adjusted for certain items, including those items that would be included in the
calculation of a corporation's earnings and profits under Subchapter C of the Code)and such corporations are required to
include in the calculation of alternative minimum taxable income 75%of the excess of each such corporation's adjusted
current earnings (which includes tax-exempt interest) over its alternative minimum taxable income (determined without
regard to this adjustment and prior to reduction for certain net operating losses).
The accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the
recipient. The extent of these other tax consequences will depend upon the recipient's particular tax status or other items
of income or deduction. We express no opinion regarding any such consequences. Purchasers of the Bonds, particularly
purchasers that are corporations (including S corporations and foreign corporations operating branches in the
United States),property or casualty insurance companies,banks,thrifts or other financial institutions ^ certain recipients
of Social Security or Railroad Retirement benefits ^, taxpayers otherwise entitled to claim the earned income credit or
t..: pc a e s who may be demed to have incurred or continued indebtedness to purchase or carry tax-exempt obligations are
advised to consult their tax advisors as to the tax consequences of purchasing or holding the Bonds.
It is further our opinion that, under the existing laws of the State of Nebraska, interest income on the Bonds is
exempt from Nebraska state income taxation as long as it is exempt for purposes of the federal income tax.
Very truly yours,
[To be signed and delivered at closing by Kutak Rock.]
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No dealer,broker,salesperson or other person has been authorized by the City or the original purchaser
to give any information or to make any representations in connection with the Bonds or the matters described
herein, 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 the City or the original purchaser. 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 and expressions of opinion contained 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 matters described herein since the date
hereof. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may
not be reproduced or used,in whole or in part,for any other purpose. The original purchaser may offer and sell
Bonds to certain dealers and others at prices lower than the offering prices stated on the cover page hereof. The
offering prices may be changed from time to time by the original purchaser.
TABLE OF CONTENTS
INTRODUCTION 1 Selected Economic Indicators 4
THE BONDS 1
Description of the Bonds I APPENDIX B—City of Omaha—Financial
Place of Payment 1 Information
Book-Entry Only System 1 Part One—Selected City of Omaha Financial
Optional Redemption 3 Information 1
Disposition of Proceeds 4 ESTIMATED DEBT SERVICE
Authority for Issuance 4 REQUIREMENTS 3
Security 4 OVERLAPPING DEBT 5
Prospective Financial Commitments LONG-TERM CONTRACTUAL
by the City 5 AGREEMENTS 5
RATINGS 6 AUTHORITY TO LEVY TAXES 6
CONTINUING DISCLOSURE 6 PROPERTY TAX COLLECTIONS 9
LEGAL OPINION 6 DEBT MANAGEMENT 9
TAX EXEMPTION 6 General Obligation Debt Margin 9
FINANCIAL STATEMENTS 7 Debt Payment Record 9
CERTIFICATION AS TO OFFICIAL CASH RESERVE FUND 10
STATEMENT 7 EMPLOYEE RELATIONS: RETIREMENT
LITIGATION 7 SYSTEMS 10
CITY OF OMAHA EMPLOYEES'
APPENDIX A City of Omaha—General RETIREMENT SYSTEM 10
Information 1 POLICE AND FIREMEN'S RETIREMENT
Form of Government 1 SYSTEM 13
City Administration 1 Part Two—Independent Auditors'Report and
Location and General Background 1 General Purpose Financial Statements 1
Area and Population 1
Transportation 1 APPENDIX C—Form of Continuing
Utility Services 2 Disclosure Undertaking
Education 2
Health Services 2 APPENDIX D—Form of Opinion of Bond Counsel
Military 2
Economy 2
Year 2000 Issues 3
IN CONNECTION WITH THEIR REOFFERING OF THE BONDS,THE ORIGINAL PURCHASER OF
THE BONDS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN
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.
COMPARISON OF FOOTNOTES
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-FOOTNOTE 1-
After deducting principal of and interest on the sanitary and improvement district bonds being
refunded._
-FOOTNOTE 2-
Assuming an interest rate of 5.50%per annum._
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�� EXHIBIT "B"
OFFICIAL NOTICE OF SALE
A $36,570,000
City of Omaha,Nebraska
Various Purpose and Refunding Bonds
Series of 1999
NOTICE IS HEREBY GIVEN that the City of Omaha, Nebraska, will receive sealed bids
for the purchase of A $36,570,000 principal amount of City of Omaha, Nebraska, Various
Purpose and Refunding Bonds, Series of 1999, at the office of the City Clerk in the City of
Omaha/Douglas County Civic Center, 1819 Farnam Street, Omaha, Nebraska 68183 until
11:00 a.m., Omaha(Central)time on November 16, 1999.
The bonds offered for sale will be dated November 15, 1999, will be fully registered
bonds without coupons of the denomination of $5,000 or any integral multiple of $5,000, and
will mature serially on November 15 in each of the years and in the principal amounts as follows:
Year of Principal Year of Principal
Maturity Amount Maturity Amount
2000 A $1,920,000 2010 A $2,120,000
2001 A 1,910,000 2011 A 1,805,000
2002 A 1,910,000 2012 A 1,695,000
2003 A 2,320,000 2013 A 1,600,000
2004 A 2,505,000 2014 A 1,415,000
2005 A 2,500,000 2015 A 1,390,000
2006 A 2,500,000 2016 A 1,200,000
2007 A 2,465,000 2017 1,130,000
2008 A 2,350,000 2018 800,000
2009 A 2,235,000 2019 800,000
Interest will be payable semiannually on May 15 and November 15 of each year,
commencing May 15, 2000. Principal of the bonds will be payable at the corporate office of First
National Bank of Omaha, Omaha, Nebraska, the Paying Agent and Registrar for the City of
Omaha. Interest on the bonds shall be paid by check or draft mailed to the person in whose name
a bond is registered as of the May 1 or November 1, as the case may be, next preceding each
interest payment date.
The bonds maturing November 15, 2010 and thereafter are subject to redemption at the
option of the City of Omaha at any time on and after November 15, 2009, in whole, or in part
from time to time in the inverse order of maturities and in such manner as the Paying Agent
deems fair within a maturity, at the principal amount thereof, the interest accrued to the
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redemption date and the following redemption premiums (expressed as a percentage of the
principal amount redeemed) 2% if redeemed November 15, 2009 or thereafter to and including
November 14, 2012, 1% if redeemed November 15, 2012 or thereafter to and including
November 14, 2015, and no premium if redeemed November 15, 2015 or thereafter. At least
30 days' notice of redemption will be mailed, postage prepaid, by registered or certified mail to
the owner of any bonds to be redeemed in whole or in part in whose name such bonds are
registered as of a record date which shall be 45 days prior to the redemption date.
The bonds are general obligation bonds of the City of Omaha and the City is obligated to
levy ad valorem taxes for the payment of the bonds and interest thereon upon all property within
said City subject to taxation by said City without limitation as to rate or amount. The full faith
and credit of the City shall be pledged to the prompt payment of the principal of and interest on
the bonds.
The City of Omaha will receive bids for the bonds only on the Official Bid Form prepared
by the City. Bidders shall specify the rate or rates of interest per annum the bonds shall bear, to
be expressed in multiples of 1/8 or 1/20 of 1%. The interest rate specified for the bonds of any
maturity shall not be less than the interest rate specified for the bonds of any earlier maturity.
Bidders are not limited as to the number of rates which may be named, but the rate of interest on
each separate maturity must be the same single rate for all bonds of that maturity from the date of
the bonds to such maturity date. No bid for less than the entire bond issue, or at a price less than
par, will be considered. In addition to the price bid, the successful bidder must pay accrued
interest from the date of the bonds to the date of delivery of the bonds and the payment of the full
purchase price. The bonds will be awarded to the responsible bidder offering to purchase said
bonds at the lowest interest cost to the City, such interest cost to be determined by computing the
total dollar interest cost from the date of the bonds to the respective maturity dates and deducting
therefrom the amount of premium offered, if any, over and above the principal amount. The City
Council will meet at 2:00 p.m., Omaha time, on November 16, 1999 for the purpose of taking
action with respect to the sealed bids received. The City Council reserves the right to reject any
or all bids, or to waive any informality or irregularity in any bid.
A good faith deposit (the "Deposit") in the form of a certified or cashier's check or a
Financial Surety Bond in the amount of^ $731,400 (2% of the principal amount of the bonds),
payable to the order of the City, is required for each bid to be considered. If a check is used, it
must accompany each bid. The checks of unsuccessful bidders will be returned promptly after
the bonds have been awarded. If a Financial Surety Bond is used, it must be from an insurance
company licensed to issue such a bond in the State of Nebraska, and such Financial Surety Bond
must be submitted to the City prior to the opening of the bids. The Financial Surety Bond must
identify each bidder whose Deposit is guaranteed by such Financial Surety Bond. If the bonds
are awarded to a bidder utilizing a Financial Surety Bond, then the successful bidder is required
to submit its Deposit to the City in the form of a cashier's check (or wire transfer such amount as
instructed by the City) not later than 3:30 p.m., Omaha time, on the next business day following
the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn
by the City to satisfy the Deposit requirement. No interest on the Deposit will accrue to any
bidder. In the event the successful bidder fails to honor its accepted bid, the Deposit will be
retained by the City as liquidated damages; otherwise the Deposit will be returned to the
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successful bidder upon the delivery of the bonds against payment therefor. The full purchase
price of the bonds must be paid in federal funds. The bonds will be delivered on November 30,
1999 or as soon as possible thereafter, at the expense of the City to DTC (as hereinafter defined)
in New York,New York.
The bonds, when issued, will be registered in the name of Cede& Co., as nominee of The
Depository Trust Company ("DTC"), New York, New York. DTC will act as securities
depository of the bonds. Individual purchases will be made in book-entry form only, in the
principal amount of $5,000 and integral multiples thereof. Purchasers will not receive
certificates representing their interest in the bonds purchased. Principal and interest will be paid
to DTC, which will in turn remit such principal and interest to its participants, for subsequent
disbursement to the beneficial owners of the bonds. The successful bidder will be responsible for
satisfying the underwriting eligibility requirements of DTC.
Kutak Rock, Bond Counsel, will provide to the successful bidder an Original Purchaser's
Certificate, stating that at least 10% of the bonds of each maturity have been sold to the public
(excluding bond houses, brokers or similar persons or organizations acting in the capacity of
underwriters or wholesalers) at such initial reoffering prices to the public as shall be provided by
the successful bidder. Such Certificate must be completed and returned by the delivery date of
the bonds.
The proceedings authorizing the issuance of the bonds will provide, subject to the terms
and restrictions set forth in such proceedings, that so long as such bonds are outstanding, the
bonds may be exchanged at the principal office of the Registrar for a like aggregate principal
amount of such bonds in other authorized principal sums of the same series, interest rate and
maturity, and may be transferred upon the books of registry at the principal office of the
Registrar.
Upon delivery of the bonds, the successful bidder will also be furnished with the usual
closing papers, including a certificate that no litigation is pending or threatened affecting the
validity of the bonds or the power and obligation of the City of Omaha to levy taxes for the
payment thereof. The successful bidder will also be furnished, at the expense of the City, with
the opinion of Kutak Rock, Bond Counsel, approving the validity of the bonds, which opinion
will be printed upon the bonds and will state, among other things, that the interest on the bonds is
excluded from gross income for purposes of federal income taxation under existing laws,
regulations, rulings and judicial decisions, with such exceptions as shall be required by the terms
of the Internal Revenue Code of 1986, as amended, and that such interest is not a specific item of
tax preference for purposes of the federal alternative minimum tax on individuals and
corporations.
The City of Omaha covenants and agrees to enter into a written agreement or contract,
constituting an undertaking to provide ongoing disclosure about the City, for the benefit of the
Bondholders and beneficial owners of the bonds on or before the date of delivery of the bonds as
required by Section(b)(5)(i) of Securities and Exchange Commission Rule 15c2-12 (the "Rule"),
which undertaking shall be a part of the City's bond ordinance and in the form as summarized in
the Preliminary Official Statement, with such changes as may be agreed to in writing by the
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Underwriters. The City of Omaha inadvertently did not file timely a portion of its annual
financial information and operating data for its fiscal year ended December 31, 1996 and, in
accordance with its related undertakings and the Rule, filed with the information repositories a
material event notice to such effect, together with its complete fiscal year 1996 financial
information and operating data. The City now is in compliance with each of its undertakings
under the Rule.
The City of Omaha has prepared a Preliminary Official Statement, dated November 2,
1999, relating to the bonds. The Preliminary Official Statement, as supplemented, is in a form
"deemed final" by the City for the purpose of Section(b)(1) of the Rule, but it is subject to
revision, amendment and completion in the final Official Statement. Within seven business days
of the sale of the bonds, the City shall furnish the successful bidder with a reasonable number of
copies of the final Official Statement, without additional cost, upon request.
Copies of the final Official Statement in excess of a reasonable number may be ordered
by the successful bidder at its expense. Authorization is hereby given to redistribute this Official
Notice of Sale and the Preliminary Official Statement, as supplemented, but only this entire
Official Notice of Sale and the entire Preliminary Official Statement, as supplemented, and not
portions thereof, may be redistributed.
Copies of the Preliminary Official Statement, as supplemented, and copies of the Official
Notice of Sale and Official Bid Form may be obtained from the undersigned or from Kirkpatrick
Pettis, financial consultants to the City, 10250 Regency Circle, Omaha, Nebraska 68114 or from
Kutak Rock, 1650 Farnam Street, Omaha,Nebraska 68102.
Dated: November 2, 1999 STANLEY P. TIMM
Acting City Comptroller
City of Omaha
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,NE 68183
0 1-21 927 7.02 4
01-219277.RED
EXHIBIT "C"
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PROPOSAL FOR PURCHASE OF
A $36,570,000
City of Omaha,Nebraska
Various Purpose and Refunding Bonds
Series of 1999
BONDS TO BE SOLD: NOVEMBER 16, 1999
OFFICIAL BID FORM
The City Council
City of Omaha
Omaha,NE 68183
Members of the City Council:
We offer to purchase all, but not less than all, of the legally issued, properly executed
obligations of the City of Omaha,Nebraska described as follows:
A $36,570,000 City of Omaha, Nebraska Various Purpose and Refunding Bonds, Series
of 1999, dated November 15, 1999 of the denomination of $5,000 or any integral multiple
thereof, in fully registered form without coupons, maturing on November 15 in each of the years
and in the principal amounts shown below, and with interest payable May 15, 2000 and
semiannually thereafter (November 15, 2000 and May 15 and November 15 of each subsequent
year) at the rate or rates of interest per annum as follows:
Year of Principal Rate of Year of Principal Rate of
Maturity Amount Interest Maturity Amount Interest
2000 A $1,920,000 % 2010 A $2,120,000
2001 A 1,910,000 % 2011 ^ 1,805,000
2002 A 1,910,000 % 2012 A 1,695,000
2003 A 2,320,000 % 2013 ^ 1,600,000
2004 A 2,505,000 % 2014 A 1,415,000
2005 A 2,500,000 % 2015 A 1,390,000
2006 A 2,500,000 % 2016 A 1,200,000
2007 A 2,465,000 % 2017 1,130,000
2008 A 2,350,000 % 2018 800,000
2009 A 2,235,000 % 2019 800,000
*Redeemable November 15, 2009 and thereafter as stated in the Official Notice of Sale.
We will pay $ plus a premium of$ . We will also pay accrued
interest on the bonds from November 15, 1999 to the date of delivery of the bonds and the
payment of the full purchase price.
01-219277.02
01-219277.RED
This offer is made subject to all the terms of the Official Notice of Sale of said bonds
which is annexed hereto.
❑ Enclosed is a check in the amount of A $731,400 drawn on
payable to the order of the City of Omaha, Nebraska, which check is to be returned, or
retained and applied in accordance with the terms of the Official Notice of Sale;
OR
❑ Enclosed is a Financial Surety Bond, identifying the undersigned offeror, in the
amount of A $731,400 and otherwise complying with the requirements of the Official
Notice of Sale applying thereto has been submitted to the City of Omaha, Nebraska prior
to the opening of this offer.
The names of the underwriters who are associated for the purpose of this offer are listed
on the reverse side or on a separate sheet attached hereto.
Respectfully submitted,
By
Name
Title
No addition or alteration, except as provided above, is to be made to this Proposal, and IT
MUST NOT BE DETACHED FROM THE OFFICIAL NOTICE OF SALE.
(see other side)
01-219277.02 2
01-219277.RED
f/
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s 1
The following computation is furnished for informational purposes only and is not a part
of the foregoing Proposal.
Total interest bid $
Less premium bid
Net interest cost $
Average net interest
Check No. received with bid.
Bank drawn on: or
Returned to:
Accepted this day of November, 1999
Mayor
City Clerk
Financial Surety Bond issued by and identifying the offeror
received prior to the bid opening.
01-219277.02 3
01-219277.RED
c 25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr l 9
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, the City Council of the City of Omaha, Nebraska was authorized at
an election held on May 11, 1993 to issue Sewer Bonds in the aggregate principal amount of
$6,000,000, of which $4,000,000 has been issued; and,
WHEREAS, the City Council of the City of Omaha, Nebraska was authorized at
an election held on May 14, 1996 to issue Street and Highway Bonds in an aggregate principal
amount of$30,000,000, of which $7,000,000 has been issued; and,
WHEREAS, the City Council of the City of Omaha, Nebraska was authorized at
an election held on May 14, 1996 to reissue Recreation and Culture Improvement Bonds in the
aggregate principal amount of$11,500,000, of which$3,000,000 has been issued; and,
WHEREAS, the City Council of the City of Omaha, Nebraska was authorized at
an election held on May 14, 1996 to issue Public Facility Bonds in the aggregate principal
amount of$5,000,000, of which $2,000,000 has been issued; and,
WHEREAS, the City Council of the City of Omaha, Nebraska was authorized at
an election held on May 14, 1996 to issue Public Safety Bonds in the aggregate principal amount
of$2,800,000, of which $1,500,000 has been issued; and,
WHEREAS, the City Council of the City of Omaha, Nebraska was authorized at
an election held on November 3, 1998 to issue Public Equipment Bonds in the aggregate
principal amount of$2,700,000, of which$1,500,000 has been issued; and,
WHEREAS, the City Council of the City of Omaha, Nebraska has designed for
redemption and retirement certain outstanding bonded indebtedness in the aggregate principal
amount of $20,570,000, and pursuant to Sections 10-142 and 10-616, Reissue Revised Statutes
of Nebraska, 1997, as amended, is authorized to issue general obligation refunding bonds for the
purpose of paying and retiring such outstanding bonded indebtedness, including interest therein
to the date of redemption; and,
By
Councilmember
Adopted
City Clerk
Approved
Mayor4111
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr 19
PAGE 2
WHEREAS, the City Council of the City of Omaha, Nebraska has determined
that it is necessary and in the best interests of said City that general obligation bonds and general
obligation refunding bonds be authorized to be issued pursuant to the six authorizations granted
and for the purposesprovided in the proceedings of the elections referred to in the first through
P1P P g g
sixth clauses hereof, and for the refunding purpose referred to in the seventh clause hereof,
respectively, and to combine said general obligation bonds and general obligation refunding
bonds into a single issue of Various Purpose and Refunding Bonds, Series of 1999, in the
aggregate principal amount of not to exceed$36,570,000:
Purpose Date Authorized Amount To Be Issued
Sewers May 11, 1993 $ 1,000,000
Street and Highway May 14, 1996 8,000,000
Recreation and Culture May 14, 1996 4,500,000
Public Facility May 14, 1996 1,000,000
Public Safety May 14, 1996 300,000
Public Equipment November 3, 1998 1,200,000
Refunding Bonds -- 20,570,000
$36.570.000
WHEREAS, to enable prospective underwriters of said general obligation
"Various Purpose and Refunding Bonds, Series of 1999" to comply with Rule 15c2-12 under the
Securities Exchange Act of 1934, as amended, it is necessary for the City of Omaha to provide
and prospective underwriters with an official statement which (except for certain omissions
permitted by said Rule 15c-12) the City deems final as of its date; and,
WHEREAS, the Finance Department of the City of Omaha and its financial
consultants, Kirkpatrick Pettis, have prepared the Preliminary Official Statement, Official Notice
of Sale and Official Bid Forms pertaining to the issuance and sale of said general obligation
"Various Purpose and Refunding Bonds, Series of 1999."
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr ' 19
PAGE 3
THAT, the Preliminary Official Statement, Official Notice of Sale and Official
Bid Form pertaining to the issuance and sale of general obligation "Various Purpose and
Refunding Bonds, Series of 1999," in the Exhibits "A", "B" and "C" attached hereto and by this
reference made a part hereof as fully as if set forth herein, are hereby approved, the Preliminary
Official Statement is deemed final as of its date, November 2, 1999, with the meaning of Rule
15c2-12 under the Securities Exchange Act of 1934, as amended (except for certain omissions
permitted by said Rule 15c2-12), and the Finance Director of the City of Omaha is hereby
authorized to deliver the aforesaid Preliminary Official Statement on behalf of the City of
Omaha.
BE IT FURTHER RESOLVED:
THAT, the Acting City Comptroller of the City of Omaha be and he is hereby
authorized and directed to publish said Official Notice of Sale in such a manner as he shall deem
advisable.
BE IT ALSO FURTHER RESOLVED:
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THAT, the City Clerk of the City of Omaha be and he is authorized and directed
to receive sealed proposals on said Official Bid Form for said general obligation "Various
Purpose and Refunding Bonds, Series of 1999," until 11:00 a.m., Omaha Time, November 16,
1999.
APPROVED A TO FO .
Y ATTORNEY
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By
Councilmember
Adopted , OV 2........199 =o
City Clerk
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Approved...,Ir., . ... ,. .. . . ... ..
Mayor
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