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Home My WebLink AboutRESOLUTION NO. 2014-31 Fahfax419915-201 sale GO RESOLUTION AWARDING SALE OF GENERAL OBLIGATION BONDS 419915-20 Fairfax, Iowa, March 11, 2014 The City Council of the City of Fairfax, Iowa, met on March 11, 2014, at 6:00 o'clock p,m., at the City Hall, in the City. The meeting Was called to order by the Mayor, and the roll was called showing the following Council Members present and absent: Present: JoAnn Beer, Bernie Frieden, Travis Otto, Marc Makers, and Marianne Wainwright Absent: None. This being the time and Place fixed by the Council for the consideration of bids for the purchase of the City's $1,330,000 General Obligation Corporate Purpose Bonds, Series 2014, the City Clerk announced that bids had been received and canvassed on behalf of the City at the time and place fixed therefor. 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 UMB Bank,n.a., Kansas City,Missouri 2..2440% Northland Securities,Inc,,Minneapolis, Minnesota 2.,5318% Bankers' Bank, Madison, Wisconsin. 2.5567% D.A. Davidson& Co.,Denver, Colorado 2.701.4% After due consideration and discussion, Council Member Magers introduced the resolution next hereinafter set out and moved its adoption, seconded, by Council. Member Wainwright. The Mayor put the question upon the adoption of said resolution, and the roll being called,the following Council Members voted: Ayes: Beer, Frieden, Otto,Magers, and Wainwright Nays: None. Whereupon,the Mayor declared the resolution duly adopted as hereinafter set out. -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA F'airfax419915-201 Sale Go RESOLUTION NO. 20147-31 AWARDING SALE OF GENERAL.OBLIGATION CORPORATE PURPOSE BONDS, SERIES 2014 WHEREAS, the City of Fairfax {the ,city,), in the County .of Linn, State of Iowa, has 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 has published notice of the proposed action and has held a hearing thereon; and WHEREAS, pursuant to advertisement of sale, bids for the purchase of $1,330,000 General Obligation, Corporate Purpose Bonds, Serres 2014 (the "Bonds") to be issued in evidence of the City's obligation under the Doan Agreement 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 City's financial advisor has determined that the bid of UMB Bank, n.a., Kansas City, Missouri (the "Purchaser"), is the best, such bid proposing the lowest interest cost to the City; NOW, THEREFORE, It Is Resolved by the City Council of the City of Fairfax, Iowa, as follows: Section 1. The City shall enter into the Loan Agreement with the Purchaser in substantially the form as will be placed on file with the Council, providing for a loan to the City in the principal amount of$1,330,000. The Mayor and City Clerk are hereby authorized and directed to sign the Loan Agreement on behalf of the City,.and the Loan Agreement is hereby approved. Section 2. 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. Section 3. The form of agreement of sale (tile "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 4. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved March 11,2014. 1 JasolYRabe, Mayor le Attest A C"nt; 'a Stimson, City Clerk,/Treasurer ix " 0- 0 -2- ®� DORSEY&WHITNEY ITNEY LLP,ATTORNEYS,DESMOINES,IOWA �� Fairfax419915-20/Sale co � 000 Upon motion and vote,the meeting was adjourned. Jason Rbe, Mayor Attest: Cynt a Stimson, City Clerk Treasurer e3W DORSEY&WHITNEY LLP,ATTORNEYS,DESMOMS,IOWA air1ax419915-20/Sale GO STATE OF IOWA COuNI Y OF LINN SS; CITY OF FA.IRFAX 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 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 $1,330,000 General Obligation Corporate Purpose Bonds, Series 2014, 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 respect thereto. WITNESS MY HAND this 12th day of March, 2014 Cyh agStirnson, City Clerk/Treasurer F (Attach Dere a copy of the kid of the successful kidder.) _4_ DORSEY&WHITNEY LLP,ATTORNEYS,DES MOMS,IOWA $1,330,000 City of Fairfax, Linn County,Iowa General Obligation.Corporate Purpose Bond; Series 2014 Best AON Bidder: Best AON TIC: UMB Bank,N.A. 2.244037 % Serial/ Principal Sinker/ Due Amount Term Coupon Jun 1,2016 $100,000 Serial 2.,000% Jun 1,2017 $100,000 Serial 2.000% Jun 1,2018 $100,000 Serial 2.000%a Jun 1,2019 $105,000 Serial 2.000% Jun 1,2020 `.6105,000 Serial 2,000% Jun 1,2021 $105,000 Serial 2..000%0 Jun 1,2022 $110,000 Serial 2,050% Jun 1,2023 $115,000 Serial 2.250% Jun 1,2024 $115,000 Serial 2.400% Jun 1,2025 $120,000 Serial 2.500% Jun 1,2026 $125,000 Serial 2.600% Jun 1,2027 $130,000 Serial 2.750% Purchase Price: $1,338,645.00 Insurer:None Selected ,Spread:None Entered Time Submitted:March 11,2014 at 11:53:54 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes onl ) Issue Size $1,330,000 Gross Interest $247,579,05 Plus Discountl(Less Premium) (8,645.00) Total Interest Cost $238,934.05 True Interest Rate 2,244037% Total Band Years 10,560.81 vera a Life 7.940 Years Firm:UMB Bank,N',A, The foregoing bid as submitted or as revised post sale,if appropriate,was accepted and the Securities sold by action of this Board,and receipt is hereby acknowledged of the good faith Deposit,if any,which is being,held in accordance with the terms of the annexed Official Notice of Sale. E Signature: ` Title: ,. ,... -. ' jy - (G9 'ih h.ifu4>A?fAlA �hVii 1C NVail.B,lF'" laY"v'.1$.ItCIP M�C3 61 1')181iBi ar t lD418.�L.¢:9fl,ti.°tl 1?,12 """'F AL1.l1`,h"S'.N(�:IQi;�11 I ut;,C;nt,�lw lvPi`°IV>I:hJ€' :,It.Jld'.h PRI?IS1 1.113' „I-.1":!''�.ILY l 1W'lt' 1'64'63 VK)z3ft) N1' r.0..f>I'"t I'ntil&ylnl�I`I' Vlr,1',iit,l;;SI L>e:h,"I' �Yf„i.EI:G. March 11, 2014 The Honorable Jason Rabe, Mayor And.Members of the City Council City of Fairfax PCS Box 337 Fairfax,IA 52228-0337 Dear Mayor Rabe and Council Members: Bids were received today for the $1,330,000 General Obligation Corporate Purpose Bonds, Series 2014. There were 4 bids received, which are listed at the bottom of this letter. Upon examination, it is our opinion that the bid of LIMB Bank, n.a., Kansas City, Missouri, 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 1,338,645.00, being at a true interest rate of 2.2440%.. True Account Managers Interest Rate UMB Bank, n.a., Kansas City, Missouri....................................................... 2.2440% Northland Securities, Inc., Minneapolis, Minnesota................,....................... 2.5318% Bankers' Bank, Madison,Wisconsin................................................................ 2.5567%ti D.A. Davidson& Co., Denver, Colorado......................................................... 2.7014% Respectfully submitted, SPEER I INANC:tiIAL, INC. Maggie Burger Vice President MBlaaf i Enclosures St;H 1'4'101)k ONE NOR]I f I-SSA L,li STh'FET-CHIC AGO,ILLINOIS 00602-6'j'21 346-3"0 j-FAX(312j',40-M, S1;1'T�:.R�=53I C'oNtiiWERU L S I RI I -W1TFRI:00,t()VA W70 1 ;331; 91 207, FAX(I3 0))29 8{28 SPEER FINANCIAL, INC.. Not Rated $1,330,000 CITY OF FAIRFAX Linn County, Iowa General Obligation Corporate Purpose Bonds,Series 2014 Date of Sale: March 11, 2014 Average Life: 7.940 Years (Based on TIC) Bidders` Price Maturities Rates Interest. UMB Bank, ma., Kansas City, Missouri 100.650% 2016-2021 2.000% 2.2440% 2022 2.050% $238,934 2023 2.250% 2024 2.400% 2,025 2.500% 2026 2.600% 20'27 2.750% Northland Securities, Inc., Minneapolis, Minnesota 99.200% 2016-2017 0.750% 2.5318% 2018-2019 1.250% $268,724 2020-2021 1.750% 2022-2023 2.350% 2024-2027 3,000% Bankers' Bank,Madison, Wisconsin 99.500% 2016 0.500% 2.5567% Fairfax State Savings Bank, Fairfax, Iowa 2017 0.800% $272,129 2018 1.100% 2019 1.500% 2020 1.750% 2021 2.000% 2022 2.250% 2023 2.500% 2024 2.750% 2025 3.000% 2026 3.150% 2027 3.300% D.A. Davidson& Co., Denver, Colorado 102.161% 2016-2017 2.000% 2.7014% 2018-2020 2.500% $290,912 20212025 3.000% 2026-2027 3.500% *Syndicate information is provided by the underwriter. The information contained in this report is the most current available. $1,330,000 City of Fairfax,Linn County,Iowa General Obligation Coxporatepurpose 8onds Series 2014 Bidder: UMB Bank, N.A.Bidder TIC: 2.2440-37 % Best AON TIC:2.244037 % Status: Winner" Serial/ Principal Sinker/ Due Amount Term Coupon Jun 1,2016 $100,000 Serial 1000% Jun 1,2017 $100,000 Serial 2,000% Jun 1,2018 $1,00,000 Serial 2,000% Jun 1,2019 $105,000 Serial 1000% Jun 1,2020 $105,000 Serial 2,000% Jun 1,2021 $105,000 Serial 2.000% Jun 1,2022 $110,000 Serial 2.050% Jun 1,2023 $115,000 Serial 2,.250% Jun 1,2024 $115,000 Serial 2.400% Jun 1,2025 $120,000 Serial 2.500% Jun 1,2026 $125,000 Serial 2,.600% Jun 1,2027 $130,000 Serial 2,,750% Purchase Price:$1,338,645.00 Insurer-None Selected Spread: None Entered, Time Submitted:March 11,2014 at 11:53:54 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes o ly) Issue Size $1,330,000 Gross Interest $247,579.05 Plus Discountl(Less Premium) (8,645.00) Total Interest Cost $238,934.05 True Interest Rate 2.244037% Total Bond Years 10,560,81 lAvera ge Life 7.940 Years Firm- UMB Bank,N.A. **Winner-Unofficial,subject to verification and award,May not include sealed bids received outside of SpeerAuction system. $1,330,000 City of Fairfax, Linn County, Iowa General Obligation Corporate Purpose Bonds Series 2014 Bidder- Northland Bidder TIC: 2.531886 % Best AGI" TIC:2.2441037 % Status: Not Winner Securities Serial/ Principal Sinker/ Due Amount Term Coupon Jun 1,2016 $100,000 Sinker 0,750% Jun 1,2017. $100,000 Term 0,750% Jun 1,2018 $100,000 Sinker 1.250% Jun 1,2019 $105,000 Term 1,250% Jun 1,2020 $105,000 Sinker 1.750% Jun 1,2021 $105,000 Term 1.750% Jun 1,2022 $110,000 Sinker 2.350% Jun 1,2023 $115,000 Term 2.350% Jun 1,2024 $115,000 Sinker 1000% Jun 1,2025 $120,000 Term 3.,000% Jun 1,2026 $125,000 Sinker 1000% Jun 1,2027 $130,000 Term 3.0010% Purchase Price:$1,319,360.00 Insurer:None Selected Spread: None Entered Time Submitted: March 11,2014 at 11:57:13 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes onlyl_ Issue Size $1,330,000 Gross Interest $258,084.24 Plus Discount/(Less Premium) 10,640.00 Total Interest Cost $268,724.24 True Interest Rate 2.531886% Total Bond Years 10,560.81, Avera geLife, 7.940 Years Firm: Nurtkfland Securities -"*Winner-Unofficial,subject to verification and award.May not include sealed bids received outside of SpeerAuction system. $1,330,000 City of Fairfax,Linn County,Iowa (general Obligation Corporate Purpose Bonds Series 2014 Bidder: Bankers`.I3ankBidder TIC:2.556780 % Best AON TIC:2.244037 % Status: Not Winner Seriall Principal Sinker/ Due Amount Term Coupon Jun 1,2016 $100,000 Serial 0.500%a Jun 1,2017 $100,000 Serial 0.800%a Jun 1,2018 $100,000 Serial 1.1.00%v Jun 1.,2019 $1.05,000 Serial 1.500% Jun 1,2020 $105,000 Serial 1.7'50% Jun 1,2021 $105,000 Serial 2.000%v Jun 1,2022 $110,000 Serial 2.250% Jun 1,2023 $115,000 Serial 2.500% Jun 1,2024 $115,000 Serial 2.750% Jun 1,2025 $120,000 Serial 3.000% Jun 1,2026 $125,000 Serial 3.150% Jun 1,2027 $130,000 Serial 3.300% Purchase Price:$I,323,350.00 Insurer:None Selected Spread:None Entered Time Suhmitted:March 11,2014 at. 11;54:10 AM Ll)T SpeerAuction Interest Cost Calculations (for informational purposes onl ) Issue Sine $1,330,000 Gross Interest $265,479,40 lus Discount/(Less Premium) 6,650.00 otal Interest Cost $272,129,40 rue Interest Rate 2.556780% Total Bong Years 1.0,560.81 vera a Life 7.940 Years Firm:Rankers' Bank **Winner-Unofficial,subject to verification and award.May not include sealed bids received outside of SpeerAuction system, $1,330,000 City of Fairfax,Linn County,Iowa General Obligation(,'orl,)(,,)rate Purpose Bonds Series 2014 Bidder: DA DavidsoaBidder TIC: 2.701409 % Best AON TIC:2.244037 % Status:Not Wirmer Serial/ Principal Sinker/ Due Amount Term Coupon Jun 1,2016 $100,000 Serial 2.000% Jun 1,2017 $100,000 Serial 2,000% Jun 1,2018 $100,000 Serial 2,500% Jun 1,201.9 $105,000 Serial 2,500% Jim 1,2020 $105,000 Serial 2.500% Jun 1,2021 $105,000 Serial 3.000% Jun 1,2022 $110,000 Serial 3.000% Jun 1,2023 $115,000 Serial 3.000% Jun 1,2024 $115,000 Serial 3,000% Jun 1,2025 $120,000 Serial 1000% Jun 1,2026 $125,000 Serial 3.500% Jun 1,2027 $130,000 Serial 3.500% Purchase Price:$1,358,751.95 Insurer:None Selected Spread: None Entered Time Submitted:March 11,2014 at 11:57:30 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes o ly) Issue Size $1,330,000 Gross Interest $319,664.24_ Plus Discountl(Less Premium) (28,751,95) Total Interest Cost $290,912.29 True Interest Rate 2,701409% Total Bond Years 10,560.81 [Average Life 7.940 Years Firm: DA Davidson "Winner-Unofficial,subject to verification and award. May not include sealed bids received outside of SpeerAuction system, SPEER FINANCIAL�, INC, City of Fairfax, �rtln C'oiun ,Iowa ,.__.. . �u. ......... . _ $1,330,000 'General Obligation Corporate Purpose Boyds, Series 21114 **FILIAL** Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 04./08/2014 - - 12101/2014 19,240.30 19,240,30 06/01/2015 - 14,863,75 14,863.75 34,104.05 j 12101/2015 - - 14,863,75 14,863.75 0'6/01/2016 100,000,00 2.00011/6 14,863 75 114,863.75 129,727.50 12/01/2016 13,863.7513,863.75 975/01/2017 100,000.00 2.000% 13,863.75 113,863.75 127,727.50 1210112017 12,863.75 12,863.75 - 06101/2018 100,000,00 2.000% 12,863.75 112,803.75 125,727.50' 12/01/20I8 - - 11,863.75 11,863.75 - 06/01/2019 105,000.00 2.000% 11,863,75 116,863.75 128,727.50 12/01/2019 10,813,75 10,813.75 0610112020 105,000.00 2.000% 10,813.75 115,813.75 126,627.50 12101/2020 - 9,763.75 9,763.75 06101/2021 105,000.00 2,000% 9,763,7S 114,763.75 124,527.50 12/01/2021 - - 8,713.75 8,713 75 - call 06/01/2022 110,000,00 2.050% 8„713 75 118,713 75 127,427.50 12/01/2022 7,586.25 7,586.25 06/01/2023 115,000.00 2.250%n 7,96.25 122,586.25 130,172.50 12/01/2023 - -- 6,292..50 6,292.50 - 06101/2024 115,000.00 2.400%0 6,292.50 121,292,50 127,585.00 12/01/2024 - - 4,912.50 4,912.50 - 06/01/2025 120,000.00 2.500°/c 4,912.50 124,912.50 129,925,00 12/01/2025 - - 3,412.50 3,412.50 - 00/01/2026 125,000.00 2.600% 3,412,50 128,412.50 131,825,00 12//01/2026 - - 1,787,50 1,787.50 - 06/01/2027 130,000.00 2.750% 1,787.50 131,787.50 133,575.00 Total $1,330,000.00 - $247,579.05 $1,577,579,115 - Yield Statistics Bored Year Dollars $10„550,81 _ _____________,__. -w_ 7.940 Years .,...., i Average Coupon _ 2.34431 97% Net Interest Cost(NTC) 2.2624605°/u True Interest Cost(TIC) — 2.2440368°/'.. Band Yield for Arbitrage Purposes - 2.3349251 a/® All Inclusive Cost(A[C) 2.2440368°la IRS Form 8038 Net Interest Cost 2.3443197%0. .. .._..-- Weighted Average Maturity 7.940 Years I I I 14 Fairfax CSU$1.330 Bid I SINGLE~PUFtPOSS 1 3/1112014, 1 1:34 PM Speer Financial, Inc. Public Finance Page 1