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HomeMy WebLinkAboutMinutes-04/11/2002• April 11, 2002 The City Clerk of the City of Waterloo, Iowa, met in Council Chambers, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 11:00 a.m. on Thursday, April 11, 2002, to open bids and receive and refer the sale of $5,215,000 General Obligation Refunding Bonds 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: City Clerk Nancy Eckert, Larry Burger, Vice -President of Speer Financial, and Dan Forbes from Speer Financial, Inc. This being the time and place for the opening of bids for the sale of $5,215,000 General Obligation Refunding Bonds, Series 2002, 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. U.S. Bancorp Piper Jaffray, Minneapolis, Minnesota 2. Howe Barnes Investments, Chicago, Illinois 3. Harris Trust & Savings Bank, Chicago, Illinois 4. Robert W. Baird & Co., Milwaukee, Wisconsin 5. Nike Securities, Chicago, Illinois 6. Morgan Stanley Dean Witter, Inc., Chicago, Illinois 7. Hutchinson, Shockey, Erley & Co., 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 Rate 1. U.S. Bancorp Piper Jaffray, Minneapolis, Minnesota 3.0900% 2. Howe Barnes Investments, Chicago, Illinois 3.1029% 3. Harris Trust & Savings Bank, Chicago, Illinois 3.1460% 4. Robert W. Baird & Co., Milwaukee, Wisconsin 3.1460% 5. Nike Securities, Chicago, Illinois 3.1494% 6. Morgan Stanley Dean Witter, Inc., Chicago, Illinois 3.1565% 7. Hutchinson, Shockey, Erley & Co., Chicago, Illinois 3.2068% 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 April 11, 2002. April 11, 2002 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 Thursday, April 11, 2002. Mayor John R. Rooff in the Chair. Roll Call: Welper, Greenwood, Clark, Jordan, Getty. Absent: Berry, Hurley. 116756 - Jordan/Welper that the Agenda, as proposed, for the Special Session on Thursday, April 11, 2002, at 4:30 p.m. be accepted and approved. Ayes: Five. Absent: Berry, Hurley. Motion carried. 116757 Getty/Jordan that copies of the Call for the Special Session on Thursday, April 11, 2002, at 4:30 p.m. be received and placed on file. Ayes: Five. Absent: Berry, Hurley. Motion carried. 116758 Jordan/Clark that proof of publication of Notice of Sale on consideration of the proposition of issuance of not to exceed $5,215,000 General Obligation Refunding Bonds, Series 2002, as published in the Waterloo Courier on April 5, 2002, be received and placed on file. Ayes: Five. Absent: Berry, Hurley. Motion carried. April 11, 2002 Page 2 116759 - Getty/Jordan that "Resolution directing sale of $5,215,000 General Obligation Refunding Bonds, Series 2002, to U.S. Bancorp Piper Jaffray of Minneapolis, Minnesota of with net interest rate of 3.09 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 Moody's Investors Service has affirmed the A2 bond rating for the city's $5.2 million General Obligation Bonds. The bonds will be used to refund Series 1994B bonds for a net present value savings of $135,000 or 2.6 percent of refunded par. The A2 rating from Moody's is 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. Mr. Burger reported that Moody's was in town a couple of weeks ago and Don Temeyer and Michelle Weidner gave them a tour of the city. Mr. Burger stated that Moody's is excited about the Vision Iowa program coming to the city and the Riverfront Renaissance Plan. Moody's reports states that the city's debt burden of 3.4 percent is moderate, the payout is rapid, with 75.3 percent of principal retired within ten years. Moody's expects the city's debt burden will remain manageable as the city will retire $28 million of its outstanding debt within the next five years. Mr. Burger stated that Moody's is concerned about the undesignated cash balance. Mr. Burger reviewed the bidders list. U.S. Bancorp Piper Jaffray bid with a premium of 1 percent, which means the city not only saves money on the interest but gets $52,000 at the close of the sale. Mr. Burger reported that seven bids were received with U.S. Bancorp Piper Jaffray the low bidder, and three bidders bid premiums. Mr. Burger reviewed the city's debt service schedule. Mr. Burger reported that the savings on the interest is just over 2 percent, with a present value of $139,738.77. Mr. Burger recommended that the city accept the bid from U.S. Bancorp Piper Jaffray with a net interest rate of 3.09 percent. Mayor Rooff reviewed past ratings. Mayor Rooff stated that it will be tough in May to keep our A2 rating with Moody's. Mr. Burger stated that probably at the next bond sale the city will need to purchase bond insurance. At this bond sale, the city was secured by two companies and U.S. Bancorp Piper Jaffray did purchase insurance. Mr. Burger stated as the risk goes down, insurance costs go down. Mayor Rooff stated that Moody's likes stable management and a good cash balance. They like to see continuity, they like rapidly retiring debt and the fact that the tax base is changing. Mayor Rooff stated that Moody's looks at the whole Midwest. Councilperson Clark asked if the award of $16 million Vision Iowa funds will help the May bond sale. Mr. Burger responded that Moody's was very excited about the $16 million Vision Iowa funds and the Riverfront Renaissance Plan. Getty to call the question. Ayes: Five. Absent: Berry, Hurley. Motion carried. 116760 - A vote was taken on the motion to approve directing the sale with the following result. Ayes: Five. Absent: Berry, Hurley. Resolution adopted and upon approval by Mayor assigned No. 2002-201. 116761 - Jordan/Greenwood that the City Clerk be instructed to return certified checks to unsuccessful bidders. Ayes: Five. Absent: Berry, Hurley. Motion carried. 116762 Clark/Jordan that "Resolution authorizing redemption of outstanding General Obligation Refunding Bonds, Series 1994B, and directing notice of redemption be given", be adopted. Ayes: Five. Absent: Berry, Hurley. Resolution adopted and upon approval by Mayor assigned No. 2002-202. ADJOURNMENT 116763 - Getty/Greenwood that the Council adjourn at 4:49 p.m. Ayes: Five. Absent: Berry, Hurley. Motion carried. --a17 U Nancy Eckert City Clerk • •