Loading...
HomeMy WebLinkAboutMinutes-06/07/2001June 7, 2001 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 Thursday, June 7, 2001, to open bids and receives, and refer the sale of $13,440,000 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 R. Rooff, City Clerk Nancy Eckert, Chief Financial Officer Michelle Weidner, Larry Burger and Dan Forbes from Speer Financial, Inc. This being the time and place for the opening of bids for the sale of $13,440,000 General Obligation Bonds, Series 2001, 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: 1. 2. 3. 4. Name of Bidder Harris Trust and Savings Bank & Associates, Chicago, Illinois Dain Rauscher, Inc., Chicago, Illinois William R. Hough & Company, St. Petersburg, Florida Morgan Stanley Dean Witter, Inc., Chicago, Illinois 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. Harris Trust and Savings Bank & Associates, Chicago, Illinois 4.5260% 2. Dain Rauscher, Inc., Chicago, Illinois 4.5343% 3. William R. Hough & Company, St. Petersburg, Florida 4.5549% 4. Morgan Stanley Dean Witter, Inc., Chicago, Illinois 4.5900% Whereupon all bids were referred to Speer Financial, Inc., and the meeting adjourned to 5:00 p.m. in the City Hall Council Chambers on June 7, 2001. June 7, 2001 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 5:00 p.m. on Thursday, June 7, 2001. Mayor John R. Rooff in the Chair. Roll Call: Krizek, Murphy, Gronen, Getty, Berry. Absent: Anders, Jordan. 115361 - Getty/Murphy that the Agenda, as proposed, for the Special Session on Thursday, June 7, 2001, at 5:00 p.m. be accepted and approved. Ayes: Five. Absent: Anders, Jordan. Motion carried. 115362 - Getty/Gronen that copies of the Call for the Special Session on Thursday, June 7, 2001, at 5:00 p.m. be received and placed on file. Ayes: Five. Absent: Anders, Jordan. Motion carried. 115363 - Krizek/Gronen that proof of publication of Notice of Sale on consideration of the proposition of issuance of not to exceed $13,440,000 General Obligation Bonds, Series 2001, as published in the Waterloo Courier on May 30, 2001, be received and placed on file. Ayes: Five. Absent: Anders, Jordan. Motion carried. 115364 - Mayor Rooff stated that a petition was filed in the City Clerk's office on June 6, 2001 requesting a public referendum on the expenditure of bond funds. Mayor Rooff read a letter from City Attorney Jim Walsh regarding the filing of documents apparently intended to protest the issuance of the general obligation bonds. It is the opinion of the City Attorney that the attempted protest was not timely filed as the date fixed for taking action on both the general and essential corporate purpose bonds, as published, was May 21, 2001. Mr. Walsh letter stated that the filing, being untimely, does not comply with the requirements of the statute and may be ignored, and the sale can proceed as previously planned. June 7, 2001 Page 2 Krizek/Gronen that public documents regarding the sale be received and placed on file. Ayes: Five. Absent: Anders, Jordan. Motion carried. 115365 - Larry Burger, Vice President of Speer Financial Inc., reported that bids were received today for the $13,440,000 General Obligation Bonds, Series 2001. Mr. Burger stated that the city held individual hearings separately on the bonds and then combined the bonds for the sale. Mr. Burger reported that five bids were received, but one bidder dropped out of the process. Mr. Burger commented that there were not just four bidders as some of the companies joined together to form a syndicate. Mr. Burger reviewed the report from Moody's. Mr. Burger reported that Moody's assigned an A2 rating to the city for the $13.4 million General Obligation Bonds, Series 2001. Moody's stated that $3.8 million of the bonds will be used to refund Series 1993 bonds for a net present value savings of $91,000. Moody's assigned the A2 underlying rating based on the city's narrowed, but stabilized financial operations, supported by a stable economy and moderate tax base growth, and a manageable amount of rapidly retired debt. Moody's reported that the city hopes to increase the General Fund by a minimum of $600,000 by the end of FY 2002, and that the city's ability to strengthen the undesignated General Fund balance in the near term will be an important factor in future analyses. Further, the city would like to achieve a ten percent undesignated General Fund balance for Fiscal Year 2003, which Moody's believes to be a sound target level. Moody's reports that the city's debt burden of 4.7 percent is above average. Payout is rapid, with 73.5 percent of principal retired within ten years. Moody's expects that the city's debt burden will remain manageable as the city will retire $32 million of its outstanding debt within the next five years. Mayor Rooff stated the Fire Department's budget overage will be minimal for the year ending June 30, 2001. Mayor Rooff stated that the city needs to add $600,000 to the General Fund at the end of FY2002. Michelle Weidner, Chief Financial Officer, reported that the city would need $2.5 million in revenue to reach that goal. Ms. Weidner stated that the city will have $1.5 million at the end of FY 2001. Mayor Rooff stated that in two years the city could have a chance to upgrade its bond rating with that kind of fund balance. Mr. Burger commented that in conversations with Moody's, the analyst was concerned with the fund balance, and he and Ms. Weidner were able to give them some comfort. Mr. Burger stated it is very important for the city to increase its cash balance. Mr. Burger stated that he feels the city had a wonderful bond sale today. Mr. Burger reviewed the bids received. Mr. Burger recommended that the bid from Harris Trust and Savings Bank & Associates with a net interest rate of 4.5260 percent be accepted. Mr. Burger stated these are 15 year bonds. Mr. Burger reviewed the debt service levy for the bonds. Getty/Murphy that "Resolution authorizing sale and award of $13,440,000 General Obligation Bonds, Series 2001, to Harris Trust and Savings Bank & Associates of Chicago, Illinois, with net interest rate of 4.5260 percent", be adopted. Ayes: Five. Absent: Anders, Jordan. Resolution adopted and upon approval by Mayor assigned No. 2001-274. 115366 - Gronen/Murphy that the City Clerk be instructed to return certified checks to unsuccessful bidders. Ayes: Five. Absent: Anders, Jordan. Motion carried. 115367 - Krizek/Getty that "Resolution authorizing redemption of outstanding General Obligation Bonds, Series 1993A, and directing publication be given", be adopted. Ayes: Five. Absent: Anders, Jordan. Resolution adopted and upon approval by Mayor assigned No. 2001-275. 115368 - Murphy/Gronen that Tax Exemption Certificate be approved. Ayes: Five. Absent: Anders, Jordan. Motion carried. June 7, 2001 • Page 3 115369 - Berry/Getty that Continuing Disclosure Certificate be approved. Ayes: Five. Absent: Anders, Jordan. Motion carried. 115370 - Krizek/Getty that "Resolution authorizing and providing for issuance of $13,400,000 General Obligation Bonds, Series 2001, and levying tax to pay said bonds", be adopted. Ayes: Five. Absent: Anders, Jordan. Resolution adopted and upon approval by Mayor assigned No. 2001-276. ADJOURNMENT 115371 - Getty/Gronen that the Council adjourn at 5:25 p.m. Ayes: Five. Absent: Anders, Jordan. Motion carried. Nancy Eckert City Clerk