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HomeMy WebLinkAboutMinutes-06/02/2009June 2, 2009 The City Clerk of the City 715 Mulberry Street, Water bids and refer the sale of best and most favorable bi p.m. on the above date. Weidner, Chief Financial 0 enc. This being the time and General Obligation Bonds, }bids were received: Name of Bidder 1 BMO Capital Markets, 2. Morgan Keegan & Co., 3j. UMB Bank, n.a., Kansa 4'. Bernardi Securities, The best bid was determined of Waterloo, Iowa, met in the City Clerk's Office, City Hall, oo, Iowa, at 10:30 a.m. on Tuesday, June 2, 2009, to receive $7,435,000.00 General Obligation Bonds, Series 2009A, to the der for cash, subject to approval of the City Council at 4:30 he following persons were present at said meeting: Michelle fficer; and Larry Burger, Vice President of Speer Financial, lace for the opening of bids for the sale of $7,435,000.00 eries 2009A, the City Clerk announced the following electronic hicago, Illinois nc., Memphis, Tennessee City, Missouri nc., Chicago, Illinois True Interest Rate 4.8458% 4.8683% 3.5431% 5.4163% to be as follows: BMO Capital Markets of Chicago, Illinois Whereupon all bids were r-ferred to Speer Financial, Inc. and the meeting adjourned to 4:30 p.m. in the First Floo i Conference Room on June 2, 2009. June 2, 2009 The City Clerk of the City 715 Mulberry Street, Water bids and refer the sale 2009B, to the best and mo Council at 4:30 p.m. on meeting: Michelle Weidner Speer Financial, Inc. This being the time and General Obligation Refundi electronic bids were receiv Name of Bidder 1. UMB Bank, n.a., Kansa 2. Robert W. Baird & Co. 3. Hutchinson, Shockey, The best bid was determined Whereupon all bids were r 4:30 p.m. in the First Floo June 2, 2009 The City Clerk of the City 715 Mulberry Street, Water bids and refer the sale of to the best and most favor at 4:30 p.m. on the above Michelle Weidner, Chief F Financial, Inc. of Waterloo, Iowa, met in the City Clerk's Office, City Hall, oo, Iowa, at 11:00 a.m. on Tuesday, June 2, 2009, to receive of $6,190,000.00 General Obligation Refunding Bonds, Series t favorable bidder for cash, subject to approval of the City he above date. The following persons were present at said Chief Financial Officer; and Larry Burger, Vice President of lace for the opening of bids for the sale of $6,190,000.00 g Bonds, Series 2009B, the City Clerk announced the following d: City, Missouri , Milwaukee, Wisconsin rley & Co., Chicago, Illinois True Interest Rate 2.5476% 2.8022% 3.5855% to be as follows: UMB Bank, n.a. of Kansas City, Missouri ferred to Speer Financial, Inc. and the meeting adjourned to Conference Room on June 2, 2009. of Waterloo, Iowa, met in the City Clerk's Office, City Hall, oo, Iowa, at 11:30 a.m. on Tuesday, June 2, 2009, to receive $1,565,000.00 General Obligation Bonds, Taxable Series 2009C, ble bidder for cash, subject to approval of the City Council date. The following persons were present at said meeting: nancial Officer; and Larry Burger, Vice President of Speer June 2, 2009 Page 2 This being the time and place for the opening of bids for the sale of $1,565,000.00 General Obligation Bonds, Taxable Series 2009C, the City Clerk announced the following electronic bids were received: Name of Bidder True Interest Rate 1. Morgan & Keegan & Co., Inc., Memphis, Tennessee 4.3149% 2. Bankers' Bank, Madison, Wisconsin 4.3301% 3. UMB Bank, n.a., Kansas City, Missouri 4.4045% 4. Vining Sparks, Chicago, Illinois 4.4181% 5. Bernardi Securities, Inc., Chicago, Illinois 4.6207% 6. Robert W. Baird & Co., Milwaukee, Wisconsin 4.7581% The best bid was determined to be as follows: Morgan & Keegan & Co., Inc. of Memphis, Tennessee Whereupon all bids were referred to Speer Financial, Inc. and the meeting adjourned to 4:30 p.m. in the First Floor Conference Room on June 2, 2009. June 2, 2009 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall First Floor Conference Room, Waterloo, Iowa, at 4:30 p.m. on Tuesday, June 2, 2009. Mayor Timothy J. Hurley in the Chair. Roll Call: Cole, Getty, Hart, Greenwood, Steve Schmitt, Welper, Reggie Schmitt. 129175 - Reggie Schmitt/Steve Schmitt that the Agenda, as proposed, for the Special Session on Tuesday, June 2, 2009, at 4:30 p.m., be accepted and approved. Ayes: Seven. Motion carried. 129176 - Reggie Schmitt/Cole that copies of the Call for the Special Session on Tuesday, June 2, 2009, be received and place • on file. Ayes: Seven. Motion carried. BOND SALE 129177 - Welper/Reggie Schmitt that proof of pu.lication of notice of public hearing on Notice of Sale on consideration of the proposition of issuance of not to exceed $7,435,000.00 General Obligatio Bonds, Series 2009A, as published in the Waterloo Courier on May 26, 2009, be r-ceived and placed on file. Ayes: Seven. Motion carried. 129178 - Welper/Reggie Schm'tt that "Resolution Series 2009A, to rate of 4.8458 per directing sale of $7,435,000.00 General Obligation Bonds, MO Capital Markets of Chicago, Illinois for a true interest ent", be adopted. Prior to a vote on the above motion, the following comments were heard. Larry Burger, Vic Waterloo is the f this issuance, we Build America Bo federal government bonds and taxable Mr. Burger stated Markets, Chicago, America Bond. Taxable Series 201 at a true interes percent. Mr. Bur Al rating. It i city's General Ob percent of refund stated that Wat experienced a soli President of Speer Financial, Inc., reported that the City of rst city with Speer Financial to use Build America Bonds. For took bids on tax exempt and Build America Bonds. With the ds, the city has to apply for 35 percent rebates from the . We are not allowed to use Build America Bonds for refunding .onds, so those issuance were sold as taxable. it is Speer Financial's opinion that the bid of BMO Capital Illinois, is the best bid received based on a Qualified Build r. Burger stated that Speer Financial recommends that the 9A Bonds be awarded to BMO Capital Markets, Chicago, Illinois rate of 4.845886 percent, with a tax exempt rate of 3.1705 er noted that Moody's Investors Service reaffirmed the city's Moody's opinion that the Series 2009B bonds will refund the Ligation Bonds, Series 2001 for an estimated savings of 3.3 d par, but we had higher savings than that today. Moody's rloo's tax base, currently valued at $3.5 billion, has 8.0 percent average annual growth over the past five years. • • 10 • • June 2, 2009 Page 3 Bond Sale continued Mr. Burger noted that Moody's is always concerned about cash balances and are always looking for healthy reserves. In Moody's statement they say that Waterloo has a formal reserve policy of 5 percent of General Fund expenditures, though it is targeting to reach undesignated reserves of 25 percent of General Fund revenues, and that the fiscal year 2008 undesignated General Fund balance was $7.4 million, or 18.4 percent of revenues. Moody's recognizes that the city's principal amortization is rapid, with 90.5 percent repaid in ten years. Mr. Burger noted that the city will receive rebates for 15 years with the Build America Bonds. Mr. Burger reviewed the summary of bids received and the debt service schedule for this issuance. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-512. 129179 - Reggie Schmitt/Cole that proof of publication of notice of public hearing on Notice of Sale on consideration of the proposition of issuance of not to exceed $6,190,000.00 General Obligation Refunding Bonds, Series 2009B, as published in the Waterloo Courier on May 26, 2009, be received and placed on file. Ayes: Seven. Motion carried. 129180 - Getty/Cole that "Resolution directing sale of $6,190,000.00 General Obligation Refunding Bonds, Series 2009B, to UMB Bank, n.a. of Kansas City, Missouri for a true interest rate of 2.5476 percent", be adopted. Prior to a vote on the above motion, the following comments were heard. Larry Burger, Vice President of Speer Financial, Inc., stated that Speer Financial recommends that the Series 2009B Bonds be awarded to UMB Bank, n.a., Kansas City, Missouri, with a true interest rate of 2.5476 percent. The gross savings was $412,946.35 and the net present value was $412,231.75 or 6.808 percent of the principal amount of the refund bonds. Mr. Burger reviewed the summary of bids received and the debt service schedule for this issuance. Following comments a vote was taken on the above motion with the following result. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 2009-513. 129181 - Reggie Schmitt/Cole that proof of publication of notice of public hearing on Notice of Sale on consideration of the proposition of issuance of not to exceed $1,565,000.00 General Obligation Bonds, Taxable Series 2009C, as published in the Waterloo Courier on May 26, 2009, be received and placed on file. Ayes: Seven. Motion carried. 129182 - Getty/Cole that "Resolution directing sale of $1,565,000.00 General Obligation Bonds, Taxable Series 2009C, to Morgan Keegan & Co., Inc. of Memphis, Tennessee for a true interest rate of 4.3149 percent", be adopted. Prior to a vote on the above motion, the following comments were heard. Larry Burger, Vice Financial recommends Co., Inc., Memphis, Burger reviewed the this issuance. President of Speer Financial, Inc. stated that Speer that the Series 2009C Bonds be awarded to Morgan Keegan & Tennessee, at a true interest rate of 4.3149 percent. Mr. summary of bids received and the debt service schedule for Following comments a vote result. Ayes: Seven. was taken on the above motion with the following Resolution adopted and upon approval by Mayor assigned No. 2009-514. June 2, 2009 ADJOURNMENT 129183 - Cole/Getty that the Council _djourn at 4:58 p.m. Ayes: Seven. Motion carried. Page 4 Nancy , CMC City Clerk