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HomeMy WebLinkAboutMinutes-06/09/2005• • June 9, 2005 The City Clerk of the City of Waterloo, Iowa, met in the First Floor Conference Room, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 11:00 a.m. on Thursday, June 9, 2005, to open bids and receive and refer the sale of $7,820,000.00 General Obligation Bonds, Series 2005A, 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: Larry Burger and Dan Forbes of Speer Financial, Inc and Michelle Weidner, Chief Financial Officer. This being the time and place for the opening of bids for the sale of $7,820,000.00 General Obligation Bonds, Series 2005A, the meeting was opened for receipt of sealed bids for the bonds. The following sealed bids were received, placed on file, but NOT OPENED and sealed bidding closed: Name of Bidder 1. Bankers' Bank, Madison, Wisconsin 2. UMB Bank, n.a., Kansas City, Missouri Whereupon the City Clerk declared the time for filing of sealed bids for the sale of $7,820,000.00 General Obligation Bonds, Series 2005A, to be closed, and whereupon the City Clerk declared the sealed bids be opened, which were as follows: Name of Bidder True Interest Rate 1. Bankers' Bank, Madison, Wisconsin 3.5852% 2. UMB Bank, n.a., Kansas City, Missouri 3.6664% Whereupon the City Clerk announced the following electronic bids were received: Name of Bidder True Interest Rate 1. Morgan Keegan and Co., Inc., Memphis, Tennessee 3.5710% 2. Harris N.A., Chicago, Illinois 3.5967% 3. Sterne, Agee & Leach, Inc., Memphis Tennessee 3.6120% 4. Duncan -Williams, Inc., Memphis, Tennessee 3.6366% 5. Stifel, Nicolaus & Company, Brookfield, Wisconsin 3.6836% 6. RBC Dain Rauscher, Inc., Clive, Iowa 3.6858% The best bid was determined to be as follows: Morgan Keegan and Co., Inc., Memphis, Tennessee, with a Total Interest Cost of $1,983,778.65 and a True Interest Rate of 3.5710 percent. 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 9, 2005. June 9, 2005 The City Clerk of the City of Waterloo, Iowa, met in the First Floor Conference Room, City Hall, 715 Mulberry Street, Waterloo, Iowa, at 11:30 a.m. on Thursday, June 9, 2005, to open bids and receive and refer the sale of $1,900,000.00 General Obligation Bonds, Taxable Series 2005B, 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: Larry Burger and Dan Forbes for Speer Financial, Inc. and Michelle Weidner, Chief Financial Officer. This being the time and place for the opening of bids for the sale of $1,900,000.00 General Obligation Bonds, Taxable Series 2005B, the meeting was opened for receipt of sealed bids for the bonds. The following sealed bids were received, placed on file, but NOT OPENED and sealed bidding closed: Name of Bidder 1. Northland Securities, Minneapolis, Minnesota 2. Bankers' Bank, Madison, Wisconsin June 9, 2005 Page 2 Whereupon the City Clerk declared the time for filing of sealed bids for the sale of $1,900,000.00 General Obligation Bonds, Taxable Series 2005B, to be closed, and whereupon the City Clerk declared the sealed bids be opened, which were as follows: Name of Bidder 1. Northland Securities, Minneapolis, Minnesota 2. Bankers' Bank, Madison, Wisconsin True Interest Rate 4.9644% 5.3300% Whereupon the City Clerk announced the following electronic bids were received: Name of Bidder True Interest Rate 1. Citigroup Global Markets, Inc., Chicago, Illinois 4.8597% The best bid was determined to be as follows: Citigroup Global Markets, Inc., Chicago, Illinois, with Total Interest Cost of $835,553.05, and True Interest Rate of 4.8597 percent. 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 9, 2005. June 9, 2005 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, June 9, 2005. Mayor Timothy J. Hurley in the Chair. Roll Call: Kincaid, Greenwood, Schmitt, Gunderson, Welper. Absent: Cole, Clark. 121789 - Welper/Kincaid that the Agenda, as proposed, for the Special Session on Thursday, June 9, 2005, at 4:30 p.m., be accepted and approved. Ayes: Five. Absent: Cole, Clark. Motion carried. 121790 - Welper/Greenwood that copies of the Call for the Special Session on Thursday, June 9, 2005, be received and placed on file. Ayes: Five. Absent: Cole, Clark. Motion carried. BOND SALE 121791 - Greenwood/Schmitt that proof of publication of notice of public hearing on Notice of Sale on consideration of the proposition of issuance of not to exceed $7,820,000.00 General Obligation Bonds, Series 2005A, as published in the Waterloo Courier on May 24, 2005, be received and placed on file. Ayes: Five. Absent: Cole, Clark. Motion carried. 121792 - Larry Burger, Vice President of Speer Financial, Inc., reported that bids were opened this morning on the $7,820,000 General Obligation Bonds, Series 2005A and $1,900,000 General Obligation Bonds, Taxable Series 2005B. Mr. Burger recommended that the bid received from Morgan Keegan and Co., Inc. at a true interest rate of 3.5710 percent for the $7,820,000 General Obligation Bonds, Series 2005A be accepted. Mr. Burger reviewed the report from Moody's Investors Service. Moody's upgraded the city's bond rating from A2 to Al on the city's outstanding parity debt, affecting $53.6 million, including the current issue. Mayor Hurley, Don Temeyer and Michelle Weidner traveled to Chicago with Speer Financial, Inc. to meet with Moody's Investors Service to discuss the city's bond rating earlier this month. Moody's believes the city's improved financial operations will remain sound due to prudent fiscal management despite state aid reduction. The Fiscal Year 2003 General Fund balance was $5.8 million, or a satisfactory 18 percent of General Fund revenues. For Fiscal Year 2004, despite a $1.2 million reduction in state aid, the city realized an increase in the General Fund to $8 million or a relatively healthy 24 percent of General Fund revenues, mainly as a result of various revenue enhancements and expense reduction. Moody's believes that management has demonstrated conservative budgetary and proactive planning practices in the wake of these reductions allowing them to navigate through recent reductions in state aid. The city's overall debt burden is average at 2.3 percent as is the city's direct burden of 1.9 percent. The city's 2004-2008 capital improvement programs identifies approximately $32.5 million of additional debt. While the amount of future debt is sizable, Moody's expects the city's debt burden to remain manageable due to the city's rapid debt amortization schedule (84 percent of principal retired in ten years) and expected tax base growth. • • June 9, 2005 • • Bond Sale continued Mr. Burger reported eight bids were received for the Obligation Bonds, Series 2005A and recommended the city ac from Morgan Keegan and Co., Inc. at a true interest rate of total interest cost of the bid is $1,983,778.65. Mr. Burger reviewed the total refunded debt service, debt debt service comparison for refunding 1997 GO Bonds. Mr. city will realize a net savings of $125,544.23 on refundi Mr. Burger reported over the past five years, today's bid bid and reviewed bids received over the past five years. Mr. Burger reported that insurance was purchased at a c upgrade the bonds to Aaa for today's tax exempt sale, and t six times that amount going with the Aaa bond rating. B premium, the city is able to obtain lower costs on bonds iss 0 Welper/Kincaid that "Resolution directing sale of $7,820,000.00 Gener Series 2005A, to Morgan Keegan and Co., Inc. of Memphis, interest rate of 3.5710 percent", be adopted. Ayes: F Clark. Page 3 $7,820,000 General ept the bid received 3.5710 percent. The service schedule and Burger reported the the 1997 GO Bonds. is the second lowest st of $23,500.00 to e city saved five or paying an insurance ed. 1 Obligation Bonds, Tennessee for a true 've. Absent: Cole, Resolution adopted and upon approval by Mayor assigned No. 2005-504. 121793 - Schmitt/Gunderson that proof of publication of notice of public hearing consideration of the proposition of issuance of not to General Obligation Bonds, Taxable Series 2005B, as publi Courier on May 24, 2005, be received and placed on file. Cole, Clark. Motion carried. 121794 - Michelle Weidner, Chief Financial Officer, reviewed when taxable. If the city is leasing any of our assets to a pr a for profit business, the bonds would not apply to non -t city usually pays more interest for the taxable bonds. Mr. Burger reported three bonds were received for th Obligation Bonds, Taxable Series 2005B, and sold with the Burger recommended that the low bid received from Citigrouu at a true interest rate of 4.8597 percent be accepted. The for the bid from Citigroup Global Markets, Inc. is $835,5 Series 2005B. Mr. Burger reported that today's bid for t 2005B were the second lowest bid over the past five years. n Notice of Sale on exceed $1,900,000.00 hed in the Waterloo yes: Five. Absent: bonds are considered vate entity, such as xable bonds, and the $1,900,000 General Al bond rating. Mr. Global Markets, Inc. cost Greenwood/Schmitt that "Resolution directing sale of $1,900,000.00 Gener Taxable Series 2005B, to Citigroup Global Markets, Inc. of a true interest rate of 4.8597 percent", be adopted. A Cole, Clark. total interest 3.05 for the Taxable 2005 Taxable Series 1 Obligation Bonds, Chicago, Illinois for es: Five. Absent: Resolution adopted and upon approval by Mayor assigned No. 005-505. ADJOURNMENT 121795 - Greenwood/Gunderson that the Council adjourn at 4:58 Motion carried. p.m. Ayes: Five. Nancy Eckert, CMC City Clerk sent: Cole, Clark.