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Home My WebLink AboutRESOLUTION NO. 2023-59Fairfax /419915-36/ Sale Only GO CP MINUTES TO RECEIVE BIDS AND SELL BONDS 419915-36 Fairfax, Iowa May 23, 2023 The City Council of the City of Fairfax, Iowa, met on May 23, 2023, at 6:00 o'clock p.m., at the Fairfax City Hall, 300 80th St Ct, Fairfax, Iowa: The meeting was called to order by the Mayor, and the roll was called showing the following Council Members present and absent: Present: Tom Nurre Kate Pacha Nick Volk, and Marianne Wainwright Absent: Mike Daly. This being the time and place fixed by the City Council for the consideration of bids for the purchase of the City's General Obligation Corporate Purpose Bonds, Series 2023, 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 minutes, as follows: Name and Address of Bidder Final Bid D.A. Davidson & Co., Denver, Colorado 4.4702% Northland Securities, Inc., Minneapolis, Minnesota 4.4728% After due consideration and discussion, Council Member Pacha introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Nurre. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Nurre, Pacha, Volk, and Wainwri�ht Nays: None. Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Fairfar /419915-36/ Sale Only GO CP RESOLUTION NO. 2023-59 RESOLUTION AWARDING GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2023 WHEREAS, the City of Fairfax (the "City"), in Linn County, State of Iowa, heretofore proposed to enter into a General Obligation Loan Agreement (the "Loan Agreement"), pursuant to the provisions of Section 384.24A of the Code of Iowa, and to borrow money thereunder in a principal amount not to exceed $1,350,000 for the purpose of paying the costs, to that extent, of constructing bridge and water tower improvements;; and pursuant to law and duly published notice of the proposed action has held a hearing thereon on April 11, 2023; and WHEREAS, a Preliminary Official Statement (the "P.O.S.") has been prepared to facilitate the sale of the General Obligation Corporate Purpose Bonds, Series 2023 (the "Bonds") in evidence of the obligation of the City under the Loan Agreement, and the City has made provision for the approval of the P.O.S. and has authorized its use by Speer Financial, Inc. as municipal 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 4.4702%, from D.A. Davidson & Co., Denver, Colorado (the "Purchaser"), is the best, such bid proposing the lowest interest cost to the City for the Bonds; NOW, THEREFORE, Be It Resolved by the City Council of the City of Fairfax, Iowa, as follows: Section 1. The bid of the Purchaser referred 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 form of agreement of sale/official bid form (the "Sale Agreement") of the Bonds to the Purchaser 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 hereby adjourned to the City Council meeting to be held on June 13, 2023. Section 4. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Fairfax /419915-36/ Sale Only GO CP Section 5. This resolution shall be in full force and effect immediately upon its adoption and approval, as provided by law. Passed and approved May 23, 2023. �� t� ..�2e� Jo Ann Beer, Mayor Attest: w Cyn ia Stimson, City Clerk/Treasurer .... Upon motion and vote, the meeting was adjourned. _eGi�. . . :p�.. c�� < . � " F,<�, ��=, - ' ayt, ny' ��e,�e� �-�� -�.e�,�- Jo Ann Beer, Mayor Attest: � Cyn ia Stimson, City Clerk/Treasurer -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Fairfa�c /419915-36/ Sale Only GO CP ATTESTATION CERTIFICATE STATE OF IOWA LINN COUNTY SS: CITY OF FAIRFAX I, the undersigned, City Clerk of the City of Fairfax, do hereby certify that as such City Clerk I have in my possession or have access to the complete corporate records of the City and of its City Council and officers and that I have carefully compared the transcript hereto attached with those corporate records and that the transcript hereto attached is a true, correct and complete copy of all the corporate records in relation to the sale of General Obligation Corporate Purpose Bonds, Series 2023 of the City evidencing the City's obligation under a certain Loan Agreement and that the transcript hereto attached contains a true, correct and complete statement of all the measures adopted and proceedings, acts and things had, done and performed up to the present time with respectthereto. WITNESS MY HAND this 25th day of May, 2023. y thia Stimson, City Clerk/Treasurer (Attach here a copy of the bid of the successful bidder.) -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA $1,300,000 W City of Fairfax, Linn County, Iowa General Obligation Corporate Purpose Bonds, Series 2023 Best AON Bidder: Best AON TIC: DA Davidson 4.470255 % Serial/ Principal Sinker/ Due Amount * Term Coupon Jun l, 2024 $40,000 Serial 4.350% Jun 1, 2025 $95,000 Serial 4.350% Jun 1, 2026 $95,000 Serial 4.350% Jun 1, 2027 $100,000 Serial 4.350°Io Jun l, 2028 $105,000 Serial 4.350% Jun 1, 2029 $105,000 Serial 4.350% Jun 1, 2030 $115,000 Serial 4.350% Jun l, 2031 $120,000 Sinker 4.350% Jun 1, 2032 $125,000 Sinker 4.350% Jun 1, 2033 $130,000 Sinker 4.350% Jun 1, 2034 $135,000 Sinker 4.350% Jun 1, 2035 $135,000 Term 4.350% Purchase Price: $1,290,857.75 Spread: None Entered Time Submitted: May 23, 2023 at 11:49:57 AM EDT SpeerAuction Interest Cost Calculations (for informational ur oses onl ) Issue Size $1,300,000 Gross Interest $403,136.25 Plus Discount/(Less Premium) 9,142.25 Total Interest Cost $412,278.50 rue Interest Rate 4.470255% Total Bond Years 9,267.50 vera e Life 7.129 Years Firm: DA Davidson *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: � > �` �%�''%".,d-��.,�'..�f-.,� Title: � Spee� Financial, Inc. [NDEPENDENT MUNICIPAL ADVISORS ESTABUSHED 1954 DANIEL FORBES RAPHALIATA McKENZIE MAGGIE BOR(iGR Presideni Senior (!ce Pre.cideni Senior 1"ice Presidein May 23, 2023 The Honorable Jo Ann Beer, Mayor and Members of the City Council City of Fairfax 300 80th Street Court P.O. Box 337 Fairfax, IA 52228 Dear Mayor Beer and Council Members: ANTHONY iv110EL7 MARK 7ERETINA AARON GOLD S'enior t icv Presideni Senior f 1ce Pi�e.xidenl 6"ice Prc.sidenl Bids were received today for the $1,300,000 General Obligation Corporate Purpose Bonds, Series 2023. There were two bids received, which are listed at the bottom of this letter. Upon examination, it is our opinion that the bid of D.A. Davidson & Co., Denver, Colorado, is the best bid received, and it is further our opinion that the bid is favorable to the City and should be accepted. We therefore recommend that the Bonds be awarded to that bidder at a price of $1,290,857.75, being at a true interest rate of 4.4702"/0. True Account Managers Interest Rate D.A. Davidson & Co., Denver, Colorado ...................................................... 4.4702% Northland Securities, Inc., Minneapolis, Minnesota ........................................ 4.4728% Respectfully submitted, SPEER FINANCIAL, INC. ._ f '` } Cl�,�'�� "i �,.�U�..ci' �l Maggie Burger, Sr. Vice President MB/msm Enclosures SUl"I E 2630 ^ 230 WEST MOVROE STREET • CI iICAGO, [LL[i�O1S 60606 •(31'L) 3d6-37Q0 • FAX (312) 3<16-8833 SUCI'E 603 • 531 COMMLRCIAL STREET • WATERLOO, IOWA 50701 •(319) 291-�0"17 • FAX (319) 291-8628 Spee�� I�,inancic�l, Inc. CITY OF FAIRFAX, IOWA $1,300,000 General Obligation Corporate Purpose Bonds, Series 2023 *** FINAL *** Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 06/28/2023 - - - - - 12/O1/2023 - - 24,033.75 24,033.75 - 06/O1/2024 40,000.00 4.350% 28,275.00 68,275.00 92,308.75 12/O1/2024 - - 27,405.00 27,405.00 - 06/O1/2025 95,000.00 4.350% 27,405.00 122,405.00 149,810.00 12/O1/2025 - - 25,338.75 25,338.75 - 06/Ol/2026 95,000.00 4.350% 25,338.75 120,338.75 145,677.50 12/Ol/2026 - - 23,272.50 23,272.50 - 06/O1/2027 100,000.00 4.350% 23,272.50 123,272.50 146,545.00 12/01/2027 - - 21,097.50 21,097.50 - 06/01/2028 105,000.00 4350% 21,097.50 126,097.50 147,195.00 12/01/2028 - - 18,813.75 18,813.75 - 06/01/2029 105,000.00 4.350% 18,813.75 123,813.75 142,627.50 12/O1/2029 - - 16,530.00 16,530.00 - Gallable O6/O1/2030 I15,000.00 4.350% 16,530.00 131,530.00 148,060.00 O6/O 1 /2031 12/01 /2031 06/O l /2032 12/O l /2032 12/O1/2033 06/O 1 /2034 12/01 /2034 06/O1/2035 120,000.00 125,000.00 130,000.00 135,000.00 135.000.00 4.350% 4.350% 4.350% 4.350% 4.350% 14,028.75 I 1,418.75 I 1,418.75 8,700.00 8,700.00 5,872.50 5,872.50 2,93625 134,028.75 11,418.75 136,418.75 8,700.00 138,700.00 5,872.50 140,872.50 2,93625 137,93625 148,057.50 147,837.50 147,400.00 146,745.00 140.872.50 'Potal $1,300,000.00 - �403,136.25 $1,703,136.25 - Yield Statistics Bond Year pollars $9,267.50 — --- ---- - ---- Average Life 7.129 Years _._._ _..._... Average Coupon 4.3500000% Net Interest Cost (NIC) 4.4486485% True Interest Cost (TIC) _ __ _ _ 4.4702546% Bond Yield for Arbitrage Purposes 4.1389686% All Inclusive Cost (AIC) ___ 4.7601942% IRS Form 8038 Net Interest Cost 4.1267059% Weiehted Averaee Maturitv 7.120 Years 23 Fairfax 1.3 GO CP FINA � SINGLE PURPOSE � 5/23/2023 � 12:45 PM Speer Financial, Inc. Registered Municipal Advisor