CITY OF KANSAS CITY, MISSOURI SPECIAL OBLIGATION BONDS

This Preliminary Official Statement and the information contained herein are subject to completion and amendment without notice. These securities may not be offered for sale nor may offers to buy be accepted prior

to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of

these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Preliminary Official Statement Dated April 6, 2010

NEW ISSUE

BOOK-ENTRY-ONLY

RATINGS:

Moody¡¯s Investors Service Inc.: A3

Standard & Poor¡¯s Ratings Services: AAFitch Ratings: A+

In the opinion of Kutak Rock LLP, Kansas City, Missouri and the Hardwick Law Firm, LLC, Kansas City, Missouri, Co-Bond Counsel, under existing laws,

regulations, rulings and judicial decisions and assuming continuing compliance with certain covenants, interest on the Series 2010A Bonds and Series 2010B Bonds is excluded

from gross income for federal and Missouri income tax purposes and is not a specific preference item or included in adjusted current earnings for purposes of the federal alternative

minimum tax. Also, in the opinion of Co-Bond Counsel, the interest on the Series 2010C Bonds is not excluded from gross income for federal and Missouri income tax

purposes. See ¡°TAX MATTERS¡± herein and the form of Opinion of Co-Bond Counsel attached hereto as Appendix D.

CITY OF KANSAS CITY, MISSOURI

SPECIAL OBLIGATION BONDS

$5,840,000*

Special Obligation Bonds

(East Village Project),

Series 2010A

$20,300,000*

Special Obligation Refunding Bonds

(Kansas City, Missouri Projects),

Series 2010B

$12,385,000*

Taxable Special Obligation

Refunding Bonds

(Kansas City, Missouri Projects),

Series 2010C

Dated: Date of Delivery

Maturities, Principal Amounts, Interest Rates, Prices, Yields and CUSIP

Numbers are shown on the Inside Cover Page

The Special Obligation Bonds (East Village Project), Series 2010A (the ¡°Series 2010A Bonds¡±), the Special Obligation Refunding Bonds (Kansas

City, Missouri Projects), Series 2010B (the ¡°Series 2010B Bonds¡±) and the Taxable Special Obligation Refunding Bonds (Kansas City, Missouri

Projects), Series 2010C (the ¡°Series 2010C Bonds¡±, and together with the Series 2010A Bonds and the Series 2010B Bonds, the ¡°Bonds¡±), are being

issued for the purposes of (i) providing funds to finance, refinance and refund certain project costs; (ii) funding a debt service reserve fund for each

series of Bonds and reimbursing the City for amounts deposited in a debt service reserve fund for a prior series of bonds; and (iii) paying certain costs

related to the issuance of the Bonds.

The Series 2010A Bonds will be issued under the First Supplemental Trust Indenture, dated as of April 1, 2010, by and between The Bank of

New York Mellon Trust Company, N.A. The Series 2010B Bonds and the Series 2010C Bonds will be issued under separate Trust Indentures by and

between the City and First Bank of Missouri.

THE BONDS OF EACH SERIES AND THE INTEREST THEREON SHALL BE SPECIAL, LIMITED OBLIGATIONS OF THE CITY

PAYABLE OUT OF CERTAIN FUNDS APPROPRIATED BY THE CITY AND MONEYS IN THE FUNDS AND ACCOUNTS HELD BY

THE TRUSTEE UNDER THE INDENTURE FOR SUCH SERIES AND ARE SECURED BY A TRANSFER, PLEDGE AND ASSIGNMENT

OF AND A GRANT OF A SECURITY INTEREST IN THE TRUST ESTATE TO THE TRUSTEE AND IN FAVOR OF THE OWNERS OF

THE BONDS, AS PROVIDED IN THE INDENTURE FOR SUCH SERIES OF BONDS. THE BONDS AND INTEREST THEREON

SHALL NOT BE DEEMED TO CONSTITUTE A DEBT OR LIABILITY OF THE CITY WITHIN THE MEANING OF ANY

CONSTITUTIONAL, STATUTORY OR CHARTER LIMITATION OR PROVISION, AND SHALL NOT CONSTITUTE A PLEDGE OF

THE FULL FAITH AND CREDIT OF THE CITY, BUT SHALL BE PAYABLE SOLELY FROM THE FUNDS PROVIDED FOR IN THE

INDENTURE FOR SUCH BONDS. THE ISSUANCE OF THE BONDS SHALL NOT, DIRECTLY, INDIRECTLY OR CONTINGENTLY,

OBLIGATE THE CITY TO LEVY ANY FORM OF TAXATION THEREFOR OR TO MAKE ANY APPROPRIATION FOR THEIR

PAYMENT. NO BREACH BY THE CITY OF ANY SUCH PLEDGE, MORTGAGE, OBLIGATION OR AGREEMENT MAY IMPOSE ANY

LIABILITY, PECUNIARY OR OTHERWISE, UPON THE STATE OR ANY CHARGE UPON ITS GENERAL CREDIT OR ITS TAXING

POWER.

The Bonds will be issued as fully registered bonds without coupons, and, when issued, will be registered in the name of Cede & Co., as

Bondowner and nominee for the Depository Trust Company (¡°DTC¡±), New York, New York. DTC will act as securities depository for the Bonds.

Purchases of the Bonds will be made in book-entry only form, in the denominations of $5,000 or integral multiples thereof. Purchasers will not

receive certificates representing their interests in Bonds purchased. So long as Cede & Co., as nominee of DTC, is the Bondowner, references herein

to the Bondowners or Registered Owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (as defined herein) of the

Bonds. See ¡°THE BONDS - Book-Entry Only System¡± herein.

Principal of the Bonds will be paid on the dates and in the years in which the Bonds mature as set forth on the inside cover page hereof. Interest

on the Series 2010A Bonds will accrue from the date of issuance and be payable semi-annually on each April 15 and October 15, commencing October

15, 2010. Interest on the Series 2010B Bonds will accrue from the date of issuance and be payable semi-annually on each January 1 and July 1,

commencing July 1, 2010. Interest on the Series 2010C Bonds will accrue from the date of issuance and be payable semi-annually on each April 1 and

October 1, commencing October 1, 2010.

So long as DTC or its nominee, Cede & Co., is the Bondowner, such payments will be made by the trustee for each series of Bonds, as paying

agent and registrar directly to such Bondowner. Disbursement of such payments to DTC Participants is the responsibility of DTC. Distribution of

such payments to Beneficial Owners is the responsibility of Direct Participants and Indirect Participants, as more fully described herein.

The Bonds are subject to redemption prior to maturity as more fully described under the caption ¡°THE BONDS ¨C Redemption¡± in this Official

Statement.

The Bonds are offered when, as and if issued by the City, subject to the approval of legality by Kutak Rock LLP, Kansas City, Missouri, and

Hardwick Law Firm, LLC, Kansas City, Missouri, Co-Bond Counsel. Certain legal matters will be passed upon for the City by the City Attorney¡¯s

Office, and for the Underwriters listed on this cover page (the ¡°Underwriters¡±) by Bryan Cave LLP, Kansas City, Missouri. Certain disclosure matters

will be passed upon for the City by its co-disclosure counsel, Gilmore & Bell, P.C., Kansas City, Missouri and The Martinez Law Firm, LLC, Kansas

City, Missouri. It is expected that the Bonds will be available for delivery at DTC on or about April __, 2010.

RBC CAPITAL MARKETS

STIFEL NICOLAUS & COMPANY

JACKSON SECURITIES

This Official Statement dated ___________ __, 2010

*Preliminary; subject to change.

HARVESTON SECURITIES, INC.

MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES,

YIELDS AND CUSIP NUMBERS

Base CUSIP Number ___________

$5,840,000* SPECIAL OBLIGATION BONDS (EAST VILLAGE PROJECT), SERIES 2010A

Maturity Date

(April 15)

Principal

Amount*

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

$190,000

$190,000

$190,000

$195,000

$200,000

$205,000

$210,000

$220,000

$225,000

$235,000

$245,000

Interest

Rate

Price

Yield

CUSIP

Numbers1

Maturity Date

(April 15)

Principal

Amount*

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

$255,000

$265,000

$275,000

$290,000

$300,000

$315,000

$330,000

$345,000

$360,000

$800,000

Interest

Rate

Price

Yield

CUSIP

Numbers1

$20,300,000* SPECIAL OBLIGATION REFUNDING BONDS (KANSAS CITY, MISSOURI PROJECTS), SERIES 2010B

Maturity Date

(January 1)

Principal

Amount*

2012

2013

2014

2015

2016

$1,840,000

$1,895,000

$1,950,000

$2,020,000

$2,085,000

Interest

Rate

Price

Yield

CUSIP

Numbers1

Maturity Date

(January 1)

Principal

Amount*

2017

2018

2019

2020

2021

$1,525,000

$1,595,000

$2,450,000

$1,420,000

$3,520,000

Interest

Rate

Price

Yield

CUSIP

Numbers1

$12,385,000* TAXABLE SPECIAL OBLIGATION REFUNDING BONDS (KANSAS CITY, MISSOURI PROJECTS), SERIES 2010C

Maturity Date

(April 1)

Principal

Amount*

2011

2012

2013

2014

2015

$ 215,000

$1,445,000

$1,485,000

$1,535,000

$3,100,000

*

1

Interest

Rate

Price

Yield

CUSIP

Numbers1

Maturity Date

(April 1)

Principal

Amount*

2016

2017

2018

2019

$ 295,000

$ 795,000

$ 735,000

$2,780,000

Interest

Rate

Price

Yield

CUSIP

Numbers1

Preliminary; subject to change.

CUSIP Numbers have been assigned to this issued by Standard & Poor¡¯s CUSIP Service Bureau, a division of The McGraw-Hill

Companies, Inc., and are included solely for the convenience of the Bondowners. Neither the City nor the Underwriters shall be

responsible for the selection or correctness of the CUSIP numbers set forth above.

REGARDING USE OF THE OFFICIAL STATEMENT

No dealer, broker, salesman or other person has been authorized by the City or by any person to give any

information or to make any representations with respect to the Bonds offered hereby, other than those

contained in this Official Statement, and, if given or made, such other information or representations must

not be relied upon as having been authorized by any of the foregoing. This Official Statement does not

constitute an offer to sell or the solicitation of an offer to buy nor shall there be any offer, solicitation or 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. Statements contained in this Official Statement which involve estimates, forecasts or

matters of opinion, whether or not so expressly described herein, are intended solely as such and are not to

be construed as representations of fact.

The information set forth herein has been obtained from the City and other sources which are believed to be

reliable. The Underwriters have reviewed the information in this Official Statement in accordance with, and

as a part of, their responsibilities under the federal securities laws as applied to the facts and circumstances of

this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information.

The information and expressions of opinion herein are subject to change without notice and neither the

delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any

implication that there has been no change in the information presented herein since the date hereof.

IN CONNECTION WITH THE OFFERING, THE UNDERWRITERS MAY OVER-ALLOT OR

EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE

BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN

MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

THE BONDS HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND

EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR HAS

THE ORDINANCE AUTHORIZING THE ISSUANCE OF THE BONDS BEEN QUALIFIED

UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED. THE BONDS ARE BEING

OFFERED IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS.

IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN

EXAMINATION OF THE CITY AND THE TERMS OF THE OFFERING, INCLUDING THE

MERITS AND RISKS INVOLVED. THE BONDS HAVE NOT BEEN RECOMMENDED BY

ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.

FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE

ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY

REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.

Any CUSIP numbers for the Bonds included in the final Official Statement are provided for convenience of

the owners and prospective investors. The CUSIP numbers for the Bonds have been assigned by an

organization unaffiliated with the City. The City is not responsible for the selection of the CUSIP numbers

and makes no representation as to the accuracy thereof as printed on the Bonds or as set forth on the final

Official Statement. No assurance can be given that the CUSIP numbers for the Bonds will remain the same

after the date of issuance and delivery of the Bonds.

An electronic copy of this Official Statement is available upon request by contacting Financial Printing

Resource, Inc. at telephone number 1-800-863-5611. Information in this Official Statement can be relied

upon only if downloaded in its entirety in original, electronic format, or if obtained in original, bound format.

i

CITY OF KANSAS CITY, MISSOURI

City Hall

414 East 12th Street

Kansas City, Missouri 64106

ELECTED OFFICIALS

MAYOR

Mark Funkhouser

CITY COUNCIL MEMBERS

Council Members-at-Large

District Council Members

District 1

District 2

District 3

District 4

District 5

District 6

District 1

District 2

District 3

District 4

District 5

District 6

Deb Hermann

Ed Ford

Melba Curls

Beth Gottstein

Cindy Circo

Cathy Jolly

Bill Skaggs

Russ Johnson

Sharon Sanders Brooks

Jan Marcason

Terry Riley

John A. Sharp

CITY ADMINISTRATIVE OFFICIALS

CITY MANAGER

(interim)

Troy Schulte

DIRECTOR OF FINANCE

Randall Landes

CITY ATTORNEY

Galen Beaufort, Esq.

CITY CLERK

Vickie Thompson

CO-FINANCIAL ADVISORS

First Southwest Company

Dallas, Texas

Moody Reid Financial Advisors

Kansas City, Missouri

CO-BOND COUNSEL

Kutak Rock LLP

Kansas City, Missouri

Hardwick Law Firm, LLC

Kansas City, Missouri

CO-DISCLOSURE COUNSEL

Gilmore & Bell, P.C.

Kansas City, Missouri

The Martinez Law Firm, LLC

Kansas City, Missouri

ii

TABLE OF CONTENTS

INTRODUCTION .......................................................... 1

Purpose of the Official Statement........................... 1

The City ....................................................................... 1

The Series 2010A Bonds........................................... 2

The Series 2010B Bonds ........................................... 2

The Series 2010C Bonds ........................................... 3

Security and Sources of Payment for the

Bonds....................................................................... 3

Bondowners¡¯ Risks..................................................... 5

Financial Statements .................................................. 5

Continuing Disclosure............................................... 5

Bond Ratings............................................................... 5

Definitions, Summaries of Documents and

Additional Information......................................... 5

THE BONDS.................................................................... 6

General......................................................................... 6

Interest Rates .............................................................. 6

Redemption................................................................. 6

Selection of Bonds to be Redeemed ....................... 8

Bonds Redeemed in Part........................................... 8

Notice of Redemption............................................... 8

Additional Bonds Issued on Parity with the

Bonds....................................................................... 9

Payment, Discharge and Defeasance of the

Bonds....................................................................... 9

Book-Entry Only System........................................ 10

Registration, Transfer and Exchange.................... 12

Mutilated, Lost, Stolen or Destroyed Bonds ....... 12

CUSIP Numbers ...................................................... 13

SECURITY AND SOURCES OF PAYMENT

FOR THE BONDS ................................................... 13

Limited Obligations; Sources of Payment............ 13

Transfer of Funds by the City................................ 14

Possible Sources of Funding for Appropriated

Money.................................................................... 16

Debt Service Fund ................................................... 17

Debt Service Reserve Fund .................................... 17

PLAN OF FINANCE ................................................... 17

Purpose of the Bonds.............................................. 17

Sources and Uses of the Bond Funds................... 19

DEBT SERVICE SCHEDULE................................... 21

THE CITY ....................................................................... 22

Anticipated Future Financings............................... 22

Available Information ............................................. 22

BONDOWNERS¡¯ RISKS............................................. 23

Nature of the Obligations....................................... 23

Non-Appropriation.................................................. 23

Marketability.............................................................. 23

No Mortgage of the Projects Other Than

Valentine Project and City Market Project ...... 24

Limitations on Remedies......................................... 24

Early Redemption of the Bonds ............................ 24

Risk of Taxability; Taxability .................................. 24

Risk of Audit............................................................. 24

City Sewer Overflow Control Plan........................ 25

Earnings Tax Initiative Petition ............................. 25

LITIGATION ................................................................. 26

LEGAL MATTERS ....................................................... 26

TAX MATTERS ............................................................. 27

Series 2010A Bonds and Series 2010B Bonds..... 27

In General............................................................. 27

Backup Withholding............................................ 27

Changes in Federal Tax Law.............................. 28

Series 2010C Bonds ................................................. 28

In General............................................................. 28

Premium................................................................ 28

Market Discount .................................................. 29

Sale or Other Dispositions................................. 29

Backup Withholding............................................ 30

Foreign Investors................................................. 30

ERISA Considerations........................................ 31

Treasury Circular 230 Disclosure...................... 31

FINANCIAL STATEMENTS..................................... 31

CONTINUING DISCLOSURE ................................. 31

CERTAIN RELATIONSHIPS.................................... 32

UNDERWRITING........................................................ 32

CO-FINANCIAL ADVISORS .................................... 32

BOND RATINGS.......................................................... 33

MISCELLANEOUS....................................................... 33

APPENDIX A ¨C FINANCIAL STATEMENTS

OF THE CITY OF KANSAS CITY,

MISSOURI

APPENDIX B ¨C DEFINITIONS AND

SUMMARY OF CERTAIN FINANCING

DOCUMENTS

APPENDIX C ¨C INFORMATION

REGARDING THE CITY OF KANSAS CITY,

MISSOURI

APPENDIX D ¨C FORM OF CO-BOND

COUNSEL OPINION

APPENDIX E ¨C FORM OF CONTINUING

DISCLOSURE UNDERTAKING

iii

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