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Home My WebLink AboutRESOLUTION NO. 2016-81 Fairfax419915--2312016 SaleWaterRe BAN SALE OF WATER REVENUE BOND ANTICIPATION PROJECT NOTES 419915-23 Fairfax, Iowa August 9, 2016 The City Council of the City of Fairfax, Iowa, met on August 9, 2016, at 6:00 o'clock, p.m., at the City Hall. 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, Joe Kell,Nick Volk, and Marianne Wainwrigk�t Absent: Mike Daly. Maggie Burger of Speer Financial, the City's municipal advisor, reported that she had received and reviewed proposals for the purchase of the City's Water Revenue Bond Anticipation Project Notes, and she recommended that the City sell the Project Notes to Fairfax State Savings Bank , Fairfax., Iowa in the principal amount of$445,000. Council Member Volk introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Beer. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Beer, Volk, and Wainwright Abstain: Kell Nays: None. Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out. -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOIlVES,IOWA Fairfax419915-2312016 SaleWaterKevBAN RESOLUTION NO. 2016-81 AWARDING SALE OF WATER REVENUE BOND ANTICIPATION PROJECT NOTES WHEREAS, the City of Fairfax (the "City"), in Linn County, State of Iowa, has heretofore proposed to enter into a Water Revenue Loan Agreement (the "Water Revenue Loan Agreement") in a principal amount not to exceed $500,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose of constructing improvements to the Municipal Waterworks System, and has published notice of the proposed action and has held a hearing thereon; and WHEREAS, Maggie Burger of Speer Financial, the City's municipal advisor, requested proposals on behalf of the City for the purchase of Water Revenue Bond Anticipation Project Notes (the "Project Notes") to be issued in anticipation of and payable from loan proceeds to be derived in the future from the Water Revenue Loan.Agreement; and WHEREAS, upon final consideration of all proposals, the City's municipal advisor has determined that the bid of Fairfax State Savings Bank, Fairfax, Iowa (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 bid of the Purchaser referred to in the preamble is hereby accepted, and the Project Notes, in the principal amount of$445,000 are hereby awarded to the Purchaser at the price specified in such bid, together with accrued interest. Section 2. The Official Bid Form of the Purchaser is hereby approved, and the Mayor and City Clerk are hereby authorized to execute the Official Bid Form for and on behalf of the City. Section 3. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved August 9, 2016. Burnell G. Frieden, Mayor Attest: ,RI., V�/� �L' i�,;."- \,��f` ,r'C••' 's `ter Cynt is K. Stimson, city Clerk/Treasurer ' ,� -1 .� 'w�...r -2- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA i' Fairfax4f9915--23/2016 SaleWaLerRevBAN Upon motion and vote, the meeting was adjourned. Burnell G. Frieden, Mayor Attest: ' �' Cynt is K. Stimson, City Clerk/Treasurer -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax419915-2312015 SaleWaterRevSAN STATE OF IOWA COUNTY OF LINN 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 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 Water Revenue Bond Anticipation Project Notes, 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 day of ( .�, , , 2016. � Uo Cyr 'hia K. Stimson, City Clerk/Treasurer (Attach here a copy of the bid of the successful bidder.) -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA I OFFICIAL BICC FORM--SERIES 2016B (WATER) To:'Governing body of the City of Fairfax, Iowa (the"Issuer") Re: $445,000 Water Revenue Bond Anticipation Project Notes, Series 2015 (the "2016B Notes") For all or none of the above 2016E Notes, in accordance with the Terms of Offering, we will pay you $445,000 (100% of par amount) and accrued interest, if any, to date of delivery for 2016E Notes bearing interest rates and maturing on June 15#in each of the stated years as follows: Coupon Due June 16t Principal r `v 2019 445,000 i Please enter the call date of the 2016B Notes you will designate here: Jyti r I We elect to have CUSIP number(s) issued for the 2016E Notes: �! The 2016B Notes will be physically registered and delivered to the purchaser.This bid is for prompt acceptance and for delivery of said 20168 Notes to us in compliance with the Terms of Offering, which is made a part of this proposal by reference. PAr I V—FA'& A Z2�/Ab/JC 021__:�11 UP, Bidding Institution Name&City Taxpayer ID of Institution Autho ized Sig a re of Bidder E-mail Addre s of Bidder Written Name&Title The foregoing offer is hereby accepted by and on behalf of the Governing Body of the Issuer, State of Iowa, this day of 'j, i ATTEST: f ayor G' y Clerk ee ° Financial, Inc. [NDEPENDENT iVR1MCIPAL ADVISORS ESTABLISHED 1954 ICEVIT DANIFI, DAVID RAPHALIA"T'A MAGGIE ANTHONY LARRY BARBARA MARK NIcCANNA FORBES PF[ILLIPS WKENZIE BURGER NI7CP,LI BURGER CHEVALIER fFRETINA CJto,vm, Pmwidov F. 1,r,N' ,Yemor VP Scrdvr PP S.n PP Vie,pw,idem V—P—1 I'm Dice Pre.ddenr August 9, 2016 The Honorable Mayor Bernie Frieden and Members of the City Council CITY OF FAIRFAX 300 80`I'Street Ct. Fairfax, IA 52228 RE: City of Fairfax, Linn County,Iowa $445,000 Water Revenue Bond Anticipation Notes,Series 2016 Dear Mayor Frieden and Council Members: Fairfax State Savings Bank, Fairfax, Iowa, in association with Piper Jaffray & Co., Des Moines, IA, Placement Agent, has provided a proposal for the purchase of $445,000 Water Revenue Bond Anticipation Notes, Series 2016 being sold by City of Fairfax,Linn County, Iowa. Upon examination, it is our opinion that the proposal is favorable to the City and should be accepted. We therefore recommend that the Bond Anticipation Notes be awarded to the proposer at a price of $445,000.00,being at a true interest cost of 2.2482%. The amounts and rates for each year are as follows: Year Principal Rates 2019.........................................$445,000....................................2.250% Sincerely, SPEER FINANCIAL, INC. i �`,/ ; (..L 11 7Ii (; - Maggie.''Ourger Sr. Vice President MB/mr SU-ITL 4100-ONE NORTH I.,ASALI.F STREET-CHICAGO,ILLINOIS 60602.{31 ij 346-3?00-FAX{312 1 346-8833 St UTF 608•531 COIViMERCIAL.STREET•W ATT.RL,OO,IOWA 50701 •(319)291-2077•FAX(319)291-8628 SPEER FINANCIAL, INC. City of Fairfax,Linn County,Iowa $445,000 Water Revenue Bond Anticipation Note, Series 2016 **FINAL** Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 09!6112416 _ 06101!2017 7,509.38 7,509.38 7,509.38 12/01/2017 5,006.25 5,006,25 - 06/01/2018 5,006.25 5,006.25 10,0]2,50 12/01/2018 5,006.25 5,006.25 06/01/2019 445,000.00 2.250% 5,006.25 450,006.25 455,012.50 Total $445,000.00 - $27,534.38 $472,534.38 j Yield Statistics Bond Year Dollars $1,223.75 Average Life 2.750 Years Average Coupon 2.2500004% Net Interest Cost(NIC) 2,2500004% True Interest Cost(TIC) V 2.2482454 Bond Yield for Arbitrage Purposes 2.2482454% All Inclusive Cost(AIC) 3.5841989% IRS Form 8038 Net Interest Cost 2.2500004% Weighted Average Maturity 2.750 Years 16 Fairfax Water Rev BAN I SINGLE PURPOSE 1 81912016 1 3:43 PM Speer Financial, Inc. Independent Public Financial Advisors since 1954 Page 1 Prime Rate I Federal Funds Rates Discount Rate Fed Fund Reserve Lending COFI Page 1 of 2 Home Rates Caicuiators Search ----._._.- .�.___.__.._�_�.�-i MORTGAGES REFINANCE BANK RATES CREAT CARDS PERSONAL LOANS AUTO RETIREMENT FINANCIAL PLANNING i 36 year fixed rate � ", � � I 300 GOR-t6ZA 399 ,> � �, CONNECT WITH US MORTGAGE ��-++//'-y� Prime rate, federal funds rate, COFI REFINANCE RATES AVERAGES By 6ankrete,cam I. The rime rate,as reported b The Wall Street Journal's bank survey, Product Rate Change Lastweek p P Y y,is among the most widely used benchmark in setting home equity lines of credit and credit card 30 year fixed refi 3.55% 41 0.07 3,48% rates.It is in turn based on the federal funds rate,which is set by the Federal Reserve. 15 year Fixed refi 2.73% ❑-02 2.75% The COFI(11th District cost of funds Index)is a widely used benchmark for 10 year fixed refi 2.70% 0.02 2.68% adjustable-rate nso_rtgages. Click an the links below to find a fuller explanation of the term. rlme rate, federal funds rate,COFI updated813r20160 Yr Fixed 3 Qf}ufn 13.16% APR This Week Month ago Yearago i WSJ Prime Rate 3.50 3,50 3.25 C 5)1 A;RM- 3.130A 1 3,17% APR. i Federal Discount Rate 1.00 190 0.75 Fed Funds Rate(current torr Die 0.2E-0_56t 0)50 0,50 0.25 f) $150k 5/1,SRM .3 E1th nisirlcY Cost of Funds 0.690 0,691 0,859 - "fr c Ratings methodology What's included?The federal funds rate is the primary tool that the Federal Open Market Committee uses to influence interest rates and the economy.Changes in the federal funds Click Your State I , rate have far-reaching effects by influencing the borrowing Cost of banks in the overnight lending market,and subsequently the returns offered on bank deposit products such as certificates of deposit,savings accounts and money market accounts.Changes in the federal funds rate and the discount rate also dictate changes In The Wall Street Journal prime rate,which is of interest to borrowers.The prime rate is the underlying index for most credit cards,home equity loans and lines of credit,auto loans,and personal loans.Many small business loans are also indexed to the Prime rate.The 11th District Cost of Funds is often used as an€ndex for adjustable-rate mortgages. 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