HomeMy WebLinkAboutMinutes-06/06/2007• •
June 6, 2007
The City Clerk of the City of Waterloo, Iowa, met in the City Clerk's Office, City Hall,
715 Mulberry Street, Waterloo, Iowa, at 10:00 a.m. on Wednesday, June 6, 2007, to open
bids received and refer the sale of $19,730,000.00 General Obligation Bonds, Series
2007A, to the best and most favorable bidder for cash, subject to approval of the City
Council at 4:30 p.m. on the above date. The following persons were present at said
meeting: Nancy Eckert, City Clerk; Michelle Weidner, Chief Financial Officer; and Larry
Burger, Vice President of Speer Financial, Inc.
This being the time and place for the opening of bids for the sale of $19,730,000.00
General Obligation Bonds, Series 2007A, the meeting was opened for receipt of sealed bids
for the bonds. No sealed bids were received.
Whereupon the City Clerk announced the following electronic bids were received:
Name of Bidder True Interest Rate
1. Citigroup Global Markets, Inc., Chicago, Illinois 4.2091%
2. LaSalle Financial Services, Inc., New York, New York 4.2197%
3. Merrill Lynch, New York, New York 4.2287%
4. Piper Jaffray, Cos., Minneapolis, Minnesota 4.2370%
5. Prager Sealy & Co., LLC, New York, New York 4.2583% '
6. Vining Sparks, Chicago, Illinois 4.2920%
The best bid was determined to be as follows: Citigroup Global Markets, Inc. of Chicago,
Illinois.
Whereupon all bids were referred to Speer Financial, Inc. and the meeting adjourned to
4:30 p.m. in the City Hall Council Chambers on June 6, 2007.
The City Clerk of the City of Waterloo, Iowa, met in the City Clerk's Office, City Hall,
715 Mulberry Street, Waterloo, Iowa, at 10:15 a.m. on Wednesday, June 6, 2007, to open
bids received and refer the sale of $3,675,000.00 General Obligation Bonds, Series 2007B,
to the best and most favorable bidder for cash, subject to approval of the City Council
at 4:30 p.m. on the above date. The following persons were present at said meeting:
Nancy Eckert, City Clerk; Michelle Weidner, Chief Financial Officer; and Larry Burger,
Vice President of Speer Financial, Inc.
This being the time and place for the opening of bids for the sale of $3,675,000.00
General Obligation Bonds, Series 2007B, the meeting was opened for receipt of sealed bids
for the bonds. No sealed bids were received.
Whereupon the City Clerk announced the following electronic bids were received:
Name of Bidder True Interest Rate
1. Piper Jaffray, Minneapolis, Minnesota 4.0340%
2. Boenning & Scattergood, Conshohocken, Pennsylvania 4.1648%
The best bid was determined to be as follows: Piper Jaffray of Minneapolis, Minnesota.
Whereupon all bids were referred to Speer Financial, Inc. and the meeting adjourned to
4:30 p.m. in the City Hall Council Chambers on June 6, 2007.
The City Clerk of the City of Waterloo, Iowa, met in the City Clerk's Office, City Hall,
715 Mulberry Street, Waterloo, Iowa, at 10:30 a.m. on Wednesday, June 6, 2007, to open
bids received and refer the sale of $1,090,000.00 General Obligation Bonds, Taxable
Series 2007C, to the best and most favorable bidder for cash, subject to approval of the
City Council at 4:30 p.m. on the above date. The following persons were present at said
meeting: Nancy Eckert, City Clerk; Michelle Weidner, Chief Financial Officer; and Larry
Burger, Vice President of Speer Financial, Inc.
This being the time and place for the opening of bids for the sale of $1,090,000.00
General Obligation Bonds, Taxable Series 2007C, the meeting was opened for receipt of
sealed bids for the bonds. No sealed bids were received.
June 6, 2007
Whereupon the City Clerk announced the following electronic bids were received:
Name of Bidder True Interest Rate
1. BB&T Capital Markets, Richmond, Virginia 5.6314%
2. Morgan Keegan Co., Inc., Memphis, Tennessee 5.6385%
3. Stifel Nicolaus, Minneapolis, Minnesota 5.6523%
The best bid was determined to be as follows: BB&T Capital Markets of Richmond,
Virginia.
Page 2
Whereupon all bids were referred to Speer Financial, Inc. and the meeting adjourned to
4:30 p.m. in the City Hall Council Chambers on June 6, 2007.
June 6, 2006
The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council
Chambers, Waterloo, Iowa, at 4:30 p.m. on Wednesday, June 6, 2007. Mayor Timothy J.
Hurley in the Chair. Roll Call: Kincaid, Welper, Gunderson, Getty, Cole, Schmitt.
Absent: Greenwood.
125494 - Schmitt/Kincaid
that the Agenda, as proposed, for the Special Session on Wednesday, June 6,
2007, at 4:30 p.m., be accepted and approved. Ayes: Six. Absent: Greenwood.
Motion carried.
125495 - Getty/Schmitt
that copies of the Call for the Special Session on Wednesday, June 6, 2007, be
received and placed on file. Ayes: Six. Absent: Greenwood. Motion carried.
BOND SALE
125496 - Welper/Gunderson
that proof of publication of notice of public hearing on Notice of Sale on
consideration of the proposition of issuance of not to exceed $19,730,000.00
General Obligation Bonds, Series 2007A, as published in the Waterloo Courier on
May 30, 2007, be received and placed on file. Ayes: Six. Absent: Greenwood.
Motion carried.
125497 - Welper/Gunderson
that "Resolution directing sale of $19,620,000.00 General Obligation Bonds,
Series 2007A, to Citigroup Global Markets, Inc. of Chicago, Illinois for a true
interest rate of 4.2108 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 that we would be
selling $19,620,000 bonds because of the low discount we could adjust the bonds
down. Six bids were received with a true interest rate ranging from 4.2108
percent to 4.2920 percent. Mr. Burger explained that Moody's Investors Service
reaffirmed the city's bond rating at Al. Moody's said that the Al rating
reflects the city's moderately growing tax base that is currently undergoing
significant expansion, stable financial operations, supported by healthy
reserves and manageable amount of rapidly retired debt. Moody's noted that the
city's principal amortization is rapid, with 84.6 percent repaid in ten years.
Moody's also noted that the city continues to post significant General Fund
operating surpluses, adding $2.3 million in fiscal year 2006 to contribute to a
General Fund balance of $12.7 million or 33.8 percent of General Fund revenues.
Mr. Burger recommended that the bonds be awarded to Citigroup Global Markets,
Inc. of Chicago, Illinois with a True Interest Rate of 4.2108 percent. Mr.
Burger reviewed the bids received and the debt service schedule. Mr. Burger
reported that the gross savings was $566,040 and the net present value savings
was $423,134.
Following comments a vote was taken on the above motion with the following
result. Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2007-451.
• •
• •
June 6, 2007
Bond Sale continued
125498 - Getty/Cole
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 $3,675,000.00
General Obligation Bonds, Series 2007B, as published in the Waterloo Courier on
May 30, 2007, be received and placed on file. Ayes: Six. Absent: Greenwood.
Motion carried.
125499 - Getty/Cole
that "Resolution directing sale of $3,675,000.00 General Obligation Bonds,
Series 2007B, to Piper Jaffray of Minneapolis, Minnesota for a true interest
rate of 4.0340 percent", be adopted.
Prior to a vote on the above motion, the following comments were heard.
Larry Burger, Vice President of Speer Financial, Inc., explained that this is an
advanced refunding, and that we will wait until June 8 to call them in. The low
interest rate right now allows the city to get low money today. Mr. Burger
reported that the gross savings was $99,950 and the net present value savings
was $132,139. Mr. Burger reported that there were two electronic bids received.
Mr. Burger recommended that the city accept the bid of Piper, Jaffray of
Minneapolis, Minnesota with a True Interest Rate of 4.0340 percent. Mr. Burger
reviewed the bids received and the debt service schedule. Mr. Burger explained
that all the bids today were electronically received in the City Clerk's office.
Iowa law requires that the city accept bids electronically, over-the-counter or
faxed.
Following comments a vote was taken on the above motion with the following
result. Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2007-452.
125500 - Kincaid/Welper
that proof of publication of notice of public hearing on Notice of Sale on
consideration of the proposition of issuance of not to exceed $1,090,000.00
General Obligation Bonds, Taxable Series 2007C, as published in the Waterloo
Courier on May 30, 2007, be received and placed on file. Ayes: Six. Absent:
Greenwood. Motion carried.
125501 - Kincaid/Schmitt
that "Resolution directing sale of $1,090,000.00 General Obligation Bonds,
Taxable Series 2007C, to BB&T Capital Markets of Richmond, Virginia for a true
interest rate of 5.6314 percent", be adopted.
Prior to a vote on the above motion, the following comments were heard.
Larry Burger, Vice President of Speers Financial, Inc., explained that Bill Noth
of Ahlers Law Firm, the city's bonding attorney, determined that these are
private purpose bonds, and they are taxable bonds. Mr. Noth reviews all items
included in the bond sale and determines what is the purpose for each. Mr.
Burger reported that three bids were received day, and he is recommending the
bonds be awarded to BB & T Capital Markets of Richmond, Virginia for a True
Interest Rate of 5.6314 percent. Mr. Burger reviewed the bids received and the
debt service schedule.
Following comments a vote was taken on the above motion with the following
result. Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2007-453.
125502 - Gunderson/Schmitt
that "Resolution directing the acceptance of a proposal to purchase $220,000.00
General Obligation Capital Loan Notes, Taxable Series 2007D from Liberty Bank
FSB of Waterloo, Iowa at a True Interest Rate of 6.4127 percent", be adopted.
r
June 6, 2007
Bond Sale continued
Prior to a vote on the above motion, the following comments were heard.
Page 4
Larry Burger, Vice President of Speer Financial, Inc., explained that the
Capital Loan Notes is the city's annual sale for funding payments to retiring
employees. Mr. Burger reported two proposals were received from local banks.
Mr. Burger recommended that the one-year Notes be awarded to Liberty Bank,
F.S.B. of Waterloo, Iowa with a True Interest Rate of 6.4127 percent.
Following comments a vote was taken on the above motion with the following
result. Ayes: Six. Absent: Greenwood.
Resolution adopted and upon approval by Mayor assigned No. 2007-454.
ADJOURNMENT
125503 - Getty/Cole
that the Council adjourn at 4:59 p.m. Ayes: Six. Absent: Greenwood. Motion
carried.
Nancy Eckert, CMC
City Clerk
• •