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Home My WebLink AboutRESOLUTION NO. 2024-48Fairfax /41991 i-41; Sale Onlv GO CP MINUTES TO RECEIVE BIDS AND SELI., BONDS � 419915-41 Fairfax, Iowa June 24, 2024 The City Council of tlie City of Faii-fax, lowa, met on June 24, 2024, at 6:00 o'clock p.n7., at the Fairfax City Hall at 300 80`�' St. Ct., Fairfax, Iowa: The meeting was called to order by the Mayor, and the roll was called showing the following Council Members preseut and absent: Present: Tom Nurre, Mike Daly, Dan Worniak, Nicic Volk, and Marianne Wainwright Absent: None. This being the tiine and place fixed by the City Council for the consideration of bids for the purchase of the City's Gener-al Obligation Corporate Purpose Bonds, Series 2024, the Mayor announced that bids had been received and canvassed on behalf of the City at the time and place fixed therefore. Whereupon, such bids were placed on file, and the substance of such bids was noted in the ininutes, as follows: Name and Address of Bidder Final Bid Northland Securities, Inc., Minneapolis, Miimesota 4.4909% D. A. Davidson & Co., Denver, Colorado 5.0400% After due consideration and discussion, Council Member Wainwright introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Meinber Daly. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Nurre, Daly, Wozniak, Volk, aud Wainwright Nays: None. Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. -1- DORSEY & WHITN�Y LLP, ATTORNEYS, DES MOINES, IOWA Fai�i�ax /4 1 99 1 5-4 1 � Salc Onl�� GO CP RESOLUTION NO. 2024-48 RESOLUTION AWARllING GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2024 WHEREAS, the City of Fairfax (the "City"), in Linn Cotilnty, State of Iowa, heretofore proposed to entei- ii�to a General Obli�ation Loan Agi-eement (the "Loan Agreeinent"), pursuant to the provisiolls of Section 384.24A of the Code of Iowa, and to bor�row money thereunder in a principal amount not to exceed $700,000, fol- the purpose of paying the costs, to that extent, of (a) constructing street, water system, stoi-m water draii�age, sanitary sewer and sidewalk improvements; (b) acguiring and installing street lighting, signage and signalization improveinents; and (c) constructing bridge iinprovements; and pursuant to law and duly published notice of the proposed action llas l�eld a hearing ther•eon on June 1 l, 2024; and WHEREAS, a P1-elimina�y Official Statement (the "P.O.S.") has been prepared to facilitate the sale of the General Obligatiol7 Corpoi-ate Puipose Bonds, Series 2024 (the "Bonds") in evidence of the obligation of th� City under tlle Loan Agreeineilt, and the City has made provision far the approval of the P.O.S. and ]Zas authorized its use by Speer Financial, Ine. as inunicipal advisor (the "Municipal Advisor") as to the City; and WHEREAS, pursuant to advertisement of sale, bids for the purchase of the Bonds were received and canvassed on behalf of the City and the substance of such bids noted in the minutes; and WHEREAS, upon final consideration of all bids, the bid of Northland Securities, Minneapolis, Minnesota (the "Purchasei�"), is the best, such bid proposing the lowest interest eost to the City for the Bonds; NOW, THEREFORE, Be It Resolved by the City Council of the City of Fairfax, Iowa, as follows: Section l. The bid of ihe Purchaser refen-ed to in the preamble is hereby accepted, and the Bonds are hereby awarded to the Purchaser at the price specified in such bid, together with accrued interest, if any. Section 2. The foi7n of agreement of sale/official bid fortn (the "Sale Agreement") of the Bonds to the Pui-chaser is hereby approved, and the Mayor and City Clerk are hereby authorized to execute the Sale Agreement for and on behalf of the City. Section 3. Further action with respect to the approval of the Loan Agreement and the issuance of the Bonds is hei•eby adjourned to the City Council meeting to be held on July 9, 2024. Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. -2- DORSEY & WHITN�Y LLP, ATTORNEYS, D�S MOIN�S, IOWA 1 airlax !�t19915-41 � S�ilc Onh� GO CP Sectio�i 5. Tl1is resolution shall be i�1 full foi-ce and effect iminediately upon its adoption and approval, as provided by law. Passcd and approved June 24, 2024. � , �� (�t�'�"'� �-fl.«."-/�'' —� � Jo Ani� Beer, Mayor Att st: , Y.� �_ � � �. � Cy thia K. Stimson, City Clerk/Treasurer �� s .... Upon motion and vote, the lneeting was adjourned. �- r= ` ,�_ / ; � '--� C-Cilc�r'� ��.> i!.�J�- Jo Ann Beer, Mayor Attest: � � C thia K. Stimson, City Clerk/Treasurer -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOIN�S, IOWA Ft�irtax i41991 5-41: Salc Oniv GO CP ATTESTATION CL:RTIFIC�TE STATE OF IOWA LINN COUNTY SS: CITY OF FAIRFAX I, the undersigned, City Clerk of the City of Faii-fax, do hereby certify that as such City Clerk I have in iny possession or have access to tlle com}�lete co�porate records of the City and of its City Council and officers and that I have carefi�lly compared the transcript hereto attached with those corporate records a�1d tlzat tl�e transcript llereto attached is a true, correct ai�d colnplete copy of all the corporate records in relation to tlle sale of General Obli�ation Cozporate Purpose Bonds, Series 2024, of the City evidencing the City's obligation under a certain Loan Agreement and that the transcript hereto attached contains a true, coi7-ect and complete statement of all the measures adopted and proceedings, acts and things had, done and performed up to the present time with respect thereto. WITNESS MY HAND this 25`�' day of June, 2024. � Cyntllia K. Stiinson, City Clerk/Treasurer (Attach here a copy of the bid of the successful bidder.) -4- DORSEY & WHITNEY LLP, ATTORNEYS, D�S MOINES, IOWA $660,000 � City of Fairfax, Linn County, Iowa General Obligation Corporate Purpose Bonds, Series 2024 Best AON Bidder: 1�Torthland �ecurities SeriaU Principal Sinker/ Due Amount * Term Coupon Jun 1, 2026 $40,000 Sinker 4.000% Jun 1, 2027 $45,000 Sinker 4.000°Io Jun 1, 2028 $45,000 Sinker 4.000% Jun 1, 2029 $50,000 Sinker 4.000% Jun 1, 2030 $50,000 Sinker 4.000% Jun 1, 2031 $55,000 Term 4.000% Jun 1, 2032 $55,000 Sinker 4.500% Jun 1, 2033 $60,000 Sinker 4.500% Jun 1, 2034 $60,000 Sinker 4.500% Jun 1, 2035 $65,000 Sinker 4.500% Jun 1, 2036 $65,000 Sinker 4.500% Jun 1, 2037 $70,000 Term 4.500% Purchase Price: �654,72().0(9 Spread: None Entered Time Submitted: June 24, 2024 at 11:59:48 AM EDT Best AON TIC: 4.490923 % SpeerAuction Interest Cost Calculations (for informational ur oses onl ) ssue Size $660,000 rossInterest $228,362.29 lus Discountl(Less Premium) 5,280.00 otal Interest Cost $233,642.29 rue Interest Rate 4.490923% otal Bond Years 5,217.83 vera e Life 7.906 Years Firm: l�c�rthla��d �ecurities �Preliminary, subject to change The foregoing bid as submitted or as revised post sale, if appropriate, was accepted and the Securities sold by action of this Board, and receipt is hereby acknowledged of the good faith Deposit, if any, which is being held in accordance with the terms of the annexed Official Notice of Sale. � � Signature: �� -�'��-`"_.. ��,-�_�"' Title: ��`�� ,�`�� r � ��c�l, c. IV�ULI'I�:�'lll:i��l �lU\�fCIP�\1.�11)\�ISORS is��.vii is��:u ��-� n ��:�i-i rori;e� r. �i��i-�i i ��r � �i;r.i ��zie �i �aGi� i;t�r.ai a , _...n ��arn,� �7,. lrr�rJrni ��mini�l}crl7�o��l�ni June 24, 2024 'i`he Honorable Jo Ann Bee►-, Mayoi• and Members of the City Council City of Fai��l�ax 300 80°i Street Court PO Bo� 337 FairfiaY.lA 52228 Dear Mayor Beer and Council Members: ��rn„��i �rt i�i i ,� �r�: � i:i� ri�.� �� v:ax ��,i r> ��,•,,,�.,,, ...,,. i:,.. i� �r��,�,.,,<,�, Bids were received today for the $660,000 General Obligation Corporate Purpose Boncls, Series 2024. There were two bids received, which are listed at the bottom of this lettee. Upon exai��ination, it is ou�• opinion that the bid ofNorthland Securities, Inc., Minneapolis, Minnesota is the best bid t�eceived, and it is furtl�er our opinio�l that the bid is favorable to the City and should be accepted. We therefore recommend that the Bonds be awai•ded to that bidder at a price of $654,720.00, being at a true interest i-ate of 4.4909°/a. Account Managers Northland Securities, Inc., Minneapolis, Minnesota .......................... D.A. Davidsot7 & Co., Denver, Coloj•ado ................................................ Respectfi�lly submitted; SPEER FINANCIAL; INC. True Interest Rate . 4.4909% . 5.0400% f�,r; �,1,,,,;:r,'" �= �� ,,`� �;��1, *.�a Maggie Burge�•, Sr. Vice President MB/eg Enclosures SUI'1 L 2G30 • 230 ��EST MONROE. S'1�IZLE7� • Cl IICAGO, 1LLINOIS (0606 •(3I2) 3�iC-3700 • 1�f1X (312) 346-8833 SU1TG 608 • 531 COMMBRCIAL S1'REET • Wn�1�ERL00, IOWA �0701 •(319) 291-2077 • PAa (�19) 291-8628 �� Cl � �� W INDIiPI A�DI�:NI� \lU�]ICIPrAL iADVISOI:S • I`5�1�:1131JtiIII�:D 1<i�! til �I�I�F (iU� o i� I C0�-1�71 RCIrAl. S'I�IZEI..�I� sAV';A�I�I�IZLOO. IOV1=,�\ �0701 •(�19) �91 _�Ui? � 1�.-A\ i� I�i) ]71 S(�'_� Not Rated �660,000 CITY OI' FAIRFAX, IOWA General Obligation Corporate Purpose Bonds, Series 2024 Date of Sale: lune 24, 2024 Average Life: 7.906 Years (Based on TIC) Bidders Northland Secw�ities. Inc. Minneapolis; Minnesota D.A. Davidson & Co. Denver, Colorado Price 99.200% $654,720.00 99.789% $658,608.75 Matui•ities 2026 - 203 l 2032 - 2037 2026 - 2031 2032 - 2037 True Rate Interest* 4.000°/a 4.4909% 4.500% $233,642 4.350% 5.0400% 5.250% $263,735 '�"`Tlae tra�e ir�terest rale �-e�7ects 1he time vnlz�e of �noney ti�vhere dolTnrs spent ir7 enrly years have n greater i��eight thnn do/lars sper7t ii� lc�lei� Yet�r S�t>��-�r 1�7i�r�r�tt��irr1. I��c. _ __ _ _____ __ _ CITY OF FAIRFAX, IOWA �'� _ _ __ __ $660.000 General Obligation Corporate Purpose Bonds; Series 2024 ��, �� 1=1NAL�� ' Debt Service Schedule � Date Principal Coupon Interest Total P+1 Fiscal Total 'I 07/2�4/2024 - - - - - I 12/01/2024 - - 9,974.79 9974J9 - �� OC,/OI/2025 - - 14;137.50 Id.13Z�0 24_112.29 � 12/OUL02� - - 14,137.�0 14.13750 - � OG/01/202G 40_000.00 4_000% 14,137 50 �4.137.�0 6b 275 00 � , - _. -- -- - - - -- - _ � 12/01/202G . - _ 13,337 50 I� 337.;0 � , I O6/Oi/2027 45,000.00 4.000% 13.337.50 SA 337.�0 71,675.00 �i 12/01/2027 - - 12,437.50 12.437.�0 - � � 06/011202b 4�.000.00 4.000% 12,437.50 �7,437.�0 69,87�.00 i 12/01/202S - - 11,537.50 II,S37.,0 - - __ _ -_ - - -- - -- - _....._ � 06/OI/2029 �Q000.00 4.000% 11,�3750 61.�37.�0 73.07�.00 12/Ol/2029 - - ]0,537.50 1Q537.�(� - O6/Ol/2030 �0,000.00 4.000% 10,537.50 60,�3750 71,075.00 � 12/Ol/2030 - - 9,537.�0 9,�37.�0 - '�� O6/01/2031 �5000.00 4.000% 9,537.50 64,5�7.�0 74,07�.00 ---- _-..__-- __ - -- -- -_- _ _- 12/(�l/2031 - - 8,437.50 3,437.�(� - �.a��2b�@ 06/O]/2032 �5,000.00 4.500% 8,437.50 63,43750 71.875.00 12/O l /2032 - - 7,200.00 7,200.00 - O6/01 /2033 60;000.00 4.500% 7,200.00 67200.00 74,400.00 12/01/2033 - - 5,850.00 5,850.00 - - -- --- - - --- __ _- __ _ _--- 06/Ol/2034 60.000.00 4.500% 5,850.00 6�;850.00 71,700.00 12/Ol /2034 - - 4,500.00 4,500.00 - O6/Ol/203� 65.000.00 4.500% 4,500.00 69,�00.00 74,OOQ00 12/OI/2035 - - 3,037.50 3,03750 - 06/01/2036 65.00Q00 4.500% 3,037.50 68.0�7.50 71,07>.00 -- -__ ___ _._.. __ ___ _ -- -- 12/Ol/2036 - - 1,575.00 1,�7500 - O6/Ol/2037 70.000.00 4.500% 1,575.00 71,�75.00 73,15Q00 7'otal 5660,000.00 - �228,362.29 �88A,362.2) - Yield Statistics Bond Year pollars �� 3 _ -- -- - - -- -- Av�raee Life Z906 Years - . __ -_ _. _ __ _ -- _ -- -- -. Aver��c Coupon 4.376�731% Net Interest Cost (N1C) 4.4777645% --- - _ True ]nterest C ost (l 1C) 4.4909231 % -- - - -- - _ _ _- -- Bond Yield lor nrbrtraee Purposes � 4.0012982% ---- - - _ _ - - ___ ___ _ - __ _. All Indusive Cost (A(C) 49382692%0 IRS Form 8038 Net lnterest Cost 4.03�4284% - - -- -- - - Wei hted Avera�e Matwih� 7.9�4 Years g__ � _- --� - -- -- �- 24 Fairfax 660k GO CP FIN � SINGLE PURPOSE � 6/24/2024 ( 12:16 PM Speer Financial, Inc. Registered Municipal Advisor