HomeMy WebLinkAboutMinutes-06/06/2006June 6, 2006
The City Clerk of the City of Waterloo, Iowa, met in the City Clerk's Office, City Hall,
715 Mulberry Street, Waterloo, Iowa, at 11:00 a.m. on Tuesday, June 6, 2006, to open bids
received and refer the sale of $8,200,000.00 General Obligation Bonds, Series 2006A, to
the best and most favorable bidder for cash, subject to approval of the City Council at
3:30 p.m. on the above date. The following persons were present at said meeting: Larry
Burger and Dan Forbes from Speer Financial, Inc, and Michelle Weidner, Chief Financial
Officer.
This being the time and place for the opening of bids for the sale of $8,200,000.00
General Obligation Bonds, Series 2006A, the meeting was opened for receipt of sealed bids
for the bonds. The following sealed bids were received, placed on file, but NOT OPENED
and sealed bidding closed:
Name of Bidder
1. Cronin & Co., Minneapolis, Minnesota
2. Griffin, Kubik, Stephens & Thompson, Inc., Chicago, Illinois
Whereupon the City Clerk declared the time for filing of sealed bids for the sale of
$8,200,000.00 General Obligation Bonds, Series 2006A, to be closed, and whereupon the
City Clerk declared the sealed bids be opened, which were as follows:
Name of Bidder True Interest Rate
1. Cronin & Co., Minneapolis, Minnesota 4.0268%
2. Griffin, Kubik, Stephens & Thompson, Inc., Chicago, Illinois 4.0321%
Whereupon the City Clerk announced the following electronic bids were received:
Name of Bidder True Interest Rate
1. Harris N.A., Chicago, Illinois 3.9505%
2. Sterne, Agee & Leach, Inc., Atlanta, Georgia 3.9565%
3. Piper Jaffray, Leawood, Kansas 3.9682*
4. J.P. Morgan Securities, Inc., New York, New York 3.973296
5. UMB Bank, n.a., Kansas City, Missouri 3.9766%
6. Ross, Sinclaire & Associates, Inc., Brentwood, Tennessee 3.9827%
7. Stifel, Nicolaus & Company, Inc., Chicago, Illinois 4.0184%
The best bid was determined to be as follows: Harris N.A., Chicago, Illinois
Whereupon all bids were referred to Speer Financial, Inc. and the meeting adjourned to
3:30 p.m. in the City Hall Council Chambers on June 6, 2006.
June 6, 2006
The City Clerk of the City of Waterloo, Iowa, met in the City Clerk's Office, City Hall,
715 Mulberry Street, Waterloo, Iowa, at 11:30 a.m. on Tuesday, June 6, 2006, to open bids
received and refer the sale of $1,900,000.00 General Obligation Bonds, Taxable Series
2006B, to the best and most favorable bidder for cash, subject to approval of the City
Council at 3:30 p.m. on the above date. The following persons were present at said
meeting: Larry Burger and Dan Forbes of Speer Financial, Inc. and Michelle Weidner,
Chief Financial Officer
This being the time and place for the opening of bids for the sale of $1,900,000.00
General Obligation Bonds, Taxable Series 2006B, the meeting was opened for receipt of
sealed bids for the bonds. The following sealed bids were received, placed on file, but
NOT OPENED and sealed bidding closed:
Name of Bidder
1. Cronin & Co., Minneapolis, Minnesota
2. Northland Securities, Inc., Minneapolis, Minnesota
3. RBC Capital Markets, Clive, Iowa
June 6, 2006
Whereupon the City Clerk declared the
$1,900,000.00 General Obligation Bonds,
the City Clerk declared the sealed bids
Page 2
time for filing of sealed bids for the sale of
Taxable Series 2006B, to be closed, and whereupon
be opened, which were as follows:
Name of Bidder
1. Cronin & Co., Minneapolis, Minnesota
2. Northland Securities, Inc., Minneapolis, Minnesota
3. RBC Capital Markets, Clive, Iowa
Whereupon the City Clerk announced the following electronic bids were
Name of Bidder
1. Griffin, Kubik, Stephens & Thompson, Inc., Chicago, Illinois
2. BB & T Capital Markets, Richmond, Virginia
3. Piper Jaffray, Leawood, Kansas
4. Sovereign Securities, Philadelphia, Pennsylvania
True Interest Rate
5.8200%
5.8488%
5.9649%
received:
True Interest Rate
5.8698%
5.9073%
5.9809%
6.6920%
The best bid was determined to be as follows: Cronin & Co., Minneapolis, Minnesota
Whereupon all bids were referred to Speer Financial, Inc. and the meeting adjourned to
3:30 p.m. in the City Hall Council Chambers on June 6, 2006.
June 6, 2006
The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council
Chambers, Waterloo, Iowa, at 3:30 p.m. on Tuesday, June 6, 2006. Mayor Timothy J. Hurley
in the Chair. Roll Call: Kincaid, Welper, Gunderson, Cole, Schmitt. Absent:
Greenwood, Getty.
123646 - Schmitt/Kincaid
that the Agenda, as proposed, for the Special Session on Tuesday, June 6, 2006,
at 3:30 p.m., be accepted and approved. Ayes: Five. Absent: Greenwood,
Getty. Motion carried.
123647 - Schmitt/Cole
that copies of the Call for the Special Session on
received and placed on file. Ayes: Five. Absent:
carried.
BOND SALE
123648 - Welper/Schmitt
Tuesday, June 6, 2006, be
Greenwood, Getty. Motion
that proof of publication of notice of public hearing on Notice of Sale on
consideration of the proposition of issuance of not to exceed $8,200,000.00
General Obligation Bonds, Series 2006A, as published in the Waterloo Courier on
May 26, 2006, be received and placed on file. Ayes: Five. Absent: Greenwood,
Getty. Motion carried.
123649 - Welper/Schmitt
that "Resolution directing sale of $$8,200,000.00 General Obligation Bonds,
Series 2006A, to Harris N.A. of Chicago, Illinois for a true interest rate of
3.9505 percent", be adopted.
Prior to a vote on the above motion, the following comments were heard.
Larry Burger, Vice President of Speer Financial, Inc., reported it was an
excellent day in the market. The city received nine bids, and he is
recommending that the bid of Harris N.A. at a true interest rate of 3.9505
percent be accepted. Mr. Burger reviewed the report from Moody's Investors
Services who affirmed the city's Al rating on the city's outstanding general
obligation debt. The A-1 rating reflects the city's moderately growing tax base
that is currently undergoing significant expansion, stable financial operations,
supported by satisfactory reserves and the average amount of rapidly retired
debt. Moody's expects the city's moderate tax base to continue to expand. The
city is experiencing a period of urban renewal, concentrating on a number of
large-scale projects to enhance its downtown, including the Riverfront
Renaissance Plan and a new Dan Gable International Wrestling Museum.
• •
June 6, 2006
Bond Sale continued
Moody's believes the city's improved fiscal operations will remain sound due to
prudent fiscal management and satisfactory reserves. Moody's says the city's
overall debt burden is average at 3.1 percent, with the city directly obligation
for a similarly average 2.6 percent Principal amortization is rapid with 83.9
percent repaid in ten years.
Mr. Burger reviewed the bidders and reported there were 20 underwriters who were
interested in the bids. Mr. Burger reviewed the city's debt schedule for the
General Obligation, Series 2006A. Mr. Burger recommended that the bonds be
awarded to Harris N.A. Chicago, Illinois at a price of $8,162,718.00, plus
accrued interest, being at a true interest rate of 3.9505 percent.
Following comments a vote was taken on the above motion with the following
result. Ayes: Five. Absent: Greenwood, Getty.
Resolution adopted and upon approval by Mayor assigned No. 2006-492.
123650 - Schmitt/Welper
Page 3
that proof of publication of notice of public hearing on Notice of Sale on
consideration of the proposition of issuance of not to exceed $1,900,000.00
General Obligation Bonds, Taxable Series 2006B, as published in the Waterloo
Courier on May 26, 2006, be received and placed on file. Ayes: Five. Absent:
Greenwood, Getty. Motion carried.
123651 - Schmitt/Kincaid
that "Resolution directing sale of $1,900,000.00 General Obligation Bonds,
Taxable Series 2006B, to Cronin & Co. of Minneapolis, Minnesota for a true
interest rate of 5.8200 percent", be adopted.
Prior to a vote on the above motion, the following comments were heard.
Larry Burger, Vice President of Speer Financial, Inc., reported the city
received excellent bids, but the bids reflect a rise in interest in taxable
bonds. Mr. Burger stated last year's taxable bonds came in at 4 percent to 5
percent, and today's bid reflect a one percent raise. Mr. Burger recommended
the council accept the bid from Cronin & Co. at a true interest rate of 5.8200
percent. Mr. Burger explained the reason the city sells some taxable bonds is
because the bonding attorney says can't sell bonds for a private purpose. Bill
Noth of Ahlers Law Firm determines how many bonds to sell as taxable. Mr.
Burger reported the city received seven bids ranging from 5.8200 percent to
6.6920 percent true interest rate, with almost $200,000.00 range from high to
low bid. Mr. Burger explained the electronic bidding process. Mr. Burger
reviewed the city's debt service schedule for the General Obligation Bonds,
Taxable Series 2006B. Mr. Burger recommended that the bonds be awarded to
Cronin & Co., of Minneapolis, Minnesota at a price of $1,885,471.70, plus
accrued interest, being at a true interest rate of 5.8200 percent.
Mr. Burger stated the city purchased insurance on principal and interest this
year at 18 basis points in order to get an Aaa bond rating for the bond sale.
Mr. Burger noted Cronin & Co. is an older firm, they pick and choose which bonds
to bid, and it is a compliment to the city that they bid on these bonds. Mr.
Burger commented that Mayor Hurley, Michelle Weidner and Don Temeyer did an
excellent presentation to Moody's. Mr. Burger stated that it is very important
to keep Moody's in the loop, and that they may visit Waterloo next year.
Following comments a vote was taken on the above motion with the following
result. Ayes: Five. Absent: Greenwood, Getty.
Resolution adopted and upon approval by Mayor assigned No. 2006-493.
ADJOURNMENT
123652 - Schmitt/Welper
that the Council adjourn at 4:55 p.m. Ayes: Five. Absent: Greenwood, Getty.
Motion carried.
Nancyy BCrt CMC
Ke
City Clerk