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HomeMy WebLinkAboutMinutes-05/31/2000May 31, 2000 The City Clerk of the City of Waterloo, Iowa, met in Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 12:00 noon on Wednesday, May 31, 2000, to open bids and receive and refer the sale of $5,400,000 General Obligation Bonds to the best and most favorable bidder for cash, subject to approval of the City Council at 5:00 p.m. on the above date. The following persons were present at said meeting. Mayor John Rooff, City Clerk Nancy Eckert, Finance Manager Bruce Meisinger, Larry Burger and Dan Forbes, representing Speer Financial, Inc. This being the time and place for the opening of bids for the sale of $5,400,000 General Obligation Bonds, Series 2000, the meeting was opened for receipt of bids for the bonds. The following sealed bids were received, placed on file, but NOT OPENED and sealed bidding closed: Name of Bidder 1. Dain Rauscher Inc., Chicago, IL 2. U.S. Bancorp Piper Jaffray, Minneapolis, MN 3. Salomon Smith Barney, Chicago, IL 4. Robert W. Baird & Co., Inc., Milwaukee, WI 5. SunTrust Equitable Securities, Atlanta, GA 6. Harris Trust & Savings Bank, Chicago, IL Whereupon the City Clerk declared the time for filing of sealed bids to be closed, and whereupon the City Clerk declared the sealed bids be opened, which were as follows: Name of Bidder Net Interest 1. Dain Rauscher Inc., Chicago, IL 5.5870% 2. U.S. Bancorp Piper Jaffray, Minneapolis, MN 5.5884% 3. Salomon Smith Barney, Chicago, IL 5.5969% 4. Robert W. Baird & Co., Inc., Milwaukee, WI 5.6087% 5. SunTrust Equitable Securities, Atlanta, GA 5.6432% 6. Harris Trust & Savings Bank, Chicago, IL 5.6434% Whereupon all bids were referred to the Council for action at the meeting to be held at 4:00 p.m. in the City Hall Council Chambers on May 31, 2000. The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 4:00 p.m. on Wednesday, May 31, 2000. Mayor John R. Rooff in the Chair. Roll Call: Anders, Jordan, Krizek, Murphy, Getty, Berry. Absent: Gronen. 113836 - Jordan/Murphy that the Agenda, as proposed, for the Special Session on Wednesday, May 31, 2000, at 4:00 p.m., be accepted and approved. Ayes: Six. Absent: Gronen. Motion carried. 113837 - Getty/Krizek that copies of the Call for the Special Session on Wednesday, May 31, 2000, at 4:00 p.m., be received and placed on file. Ayes: Six. Absent: Gronen. Motion carried. 113838 - Larry Burger, Vice President of Speer Financial, Inc., stated that the city has received Moody's report, and it is one of the better reports he has seen for the city. Moody's has given the city an A2 bond rating, and Moody's is very comfortable with the amount of debt and the retirement of debt. Moody's reported that assignment of the A2 underlying rating is based on the city's satisfactory finances, supported by a stable economy with moderate tax base growth, and a manageable amount of rapidly retired debt. In addition, the city's debt burden of 4.5 percent is above average, and payout is rapid, with 73.1 percent of principal retired within ten years. Mayor Rooff commented that this is the best report he has seen in seven years. May 31, 2000 Page 2 Dan Forbes, Vice President of Speer Financial, Inc., noted that they have seen a lot of 20 year bonds lately. Mr. Forbes stated that Moody's report is a very good report for the city. Mayor Rooff stated that Moody's reported that although the General Fund experienced operating deficits in fiscal 1997, 1998 and 1999, due to the funding of several non-recurring capital projects, the FY 1999 undesignated General Fund balance of $1.5 million was still 5.6 percent of General Fund revenue. Mr. Burger stated that Moody's reported that approval of the local option sales tax shows confidence in city government, and that the city is using the tax as they promised they would. Moody's feels that citizens' confidence in this council is very good. Mr. Burger reported that we received six bids today, with Dain Rauscher, Inc. the lowest with 5.5870 percent net interest rate. Mr. Burger noted that there was a lot of interest in the city's bond sale, and that there were not only the six companies bidding on the bonds but also a lot of syndicates. Mr. Burger stated that the city purchased insurance at a cost of $15,300.00 which allows the bonds to go on the market as if they carried an Aaa rating. This insurance allowed the city to realize a savings of $134,000.00 in interest. Mayor Rooff commented that as the city proves we are managing our funds our insurance costs stays low. Mayor Rooff stated that there was a "Call the Courier" question recently that asked about the city's indebtedness, and we were compared with Cedar Rapids, Dubuque and Des Moines, and he asked where we were compared to other cities. Mr. Burger stated that Dubuque will be raising there debt, Sioux City is high and Davenport is similar to Waterloo. Mayor Rooff stated that the city has plans to revitalize the downtown, and we need to get in position not to stress ourselves for the future if bonds need to be sold to finance the planned downtown improvement. Mr. Burger recommended that the council accept the bid from Dain Rauscher, Inc. with net interest rate of 5.5870 percent. Krizek/Murphy that proof of publication of Notice of Sale on the consideration of the proposition of issuance of not to exceed $5,400,000 General Obligation Bonds, Series 2000, as published in the Waterloo Courier on May 19, 2000, be received and placed on file. Ayes: Six. Absent: Gronen. Motion carried. 113839 - Jordan/Krizek that "Resolution authorizing the sale and award of $5,400,000 General Obligation Bonds, Series 2000, to Dain Rauscher, Inc., of Chicago, Illinois, with net interest rate of 5.5870 percent", be adopted. Ayes: Six. Absent: Gronen. Resolution adopted and upon approval by Mayor assigned No. 2000-300. 113840 - Gronen/Jordan that the City Clerk be instructed to return the unsuccessful bids and checks. Ayes: Six. Absent: Gronen. Motion carried. 113841 - Jordan/Berry that the Council adjourn at 4:21 p.m. Ayes: Six. Absent: Gronen. Motion carried. Nancy Eckert City Clerk 4