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Home My WebLink AboutRESOLUTION NO. 2016-82 Fairfax419915-2312016 SaleSewerRevBAN SALE OF SEWER REVENUE BOND ANTICIPATION PROJECT NOTES 41991523 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, anal Marianne Wainwright 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 Sewer 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$1,200,000. Council Member Beer introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Volk, 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. -I- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax419915-23/2016 SaleSewerReVBAN RESOLUTION NO. 2016-82 AWARDING SALE OF SEWER 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 Sewer Revenue Loan Agreement (the "Sewer Revenue Loan Agreement") in a principal amount not to exceed $1,300,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose of constructing improvements to the Municipal Sanitary Sewer 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 Sewer 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 Sewer Revenue Loan Agreement; and WHEREAS, upon final consideration of all proposals, the City's municipal advisor has deterinined 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; I I i 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$1,200,000 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. / N, Burnell G. Frieden,Mayor Attest: /a Cyn;hia K. Stimson, City Clerk/Treasurer t ;S' P��' A" qr x 4'i ti u C, -2- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Fairfax419915-23/2016 Sa1cScwcrRevBAN Upon motion and vote,the meeting was adjourned. Burnell G. Frieden, Mayor Attest: .i/ ` 1: � i Cynf hia K. Stimson, City Clerk/Treasurer -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Pairfax419915-23/2016 SaleSewerRevBAN STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX 1, 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 Sewer 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 thistI `' day of ,; , , " , 2016. 3 Cynthia K. Stimson, City Clerk/Treasurer (Attach here a copy of the bid of the successful bidder.) -4- DORSEY&WHITNEY LLE,ATTORNEYS,DES MOINES,IOWA OFFICIAL BID FORM A SERIES 2016A(SEWER) To: Governing body of the City of Fairfax, Iowa(the "Issuer") Re: $1,200,000 Sewer Revenue Bond Anticipation Project Notes, Series 2016A(the "2016A Notes") For all or none of the above 2016A Notes, In accordance with the Terms of Offering, we will pay you $1,200,000(100% of par amount)and accrued interest, if any, to date of delivery for 2016A Notes bearing interest rates and maturing on June 19`In each of the stated years as follows: u o Due June 15t Prinpipal 2019 1,200,000 I ' Please enter the call date of the 2016A Notes you will designate here: 1 We elect to have CUSIP number(s) issued for the 2016A Notes: � The 2016A Notes will be physically registered and delivered to the purchaser.This bid is for prompt acceptance and for delivery of said 2016A Notes to us in compilance with the Terms of Offering, which is made a part of this roposal by reference. FAi 9FAX 6`MTE SSV I Bidding Institution Name&City Taxpayer ID of Institution A tho rze SI tura of Bidder .fi Sg VP V1 C? 0z E-mail Address 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 , 20-A--U ATTEST: ayor91fy Clerk reer _NDEFinancial, Inc. PENDENT MUNICIPAL ADVISORS ESTABLISHED 1954 KEVJN DANIEL DAVID RA PI I A I.I ATA MAGGIE ANTHONY LARRY BARBATZA NfAAK - NIcC'ANNA FORBES PHILLIPS McKENZIE BURGER NIIVELI Hi RCER ('I1EVAUEP. SEARETINA (71'6.rrron 1"nid"'s F_recuin,V), ,Ceumr I'P y"'!r H, Scnrnr IT I'icc YI«f7c.videut I'lre Presidcut August 9, 2016 The Honorable Mayor Bernie Frieden and Members of the City Council CITY OF FAIRFAX 300 80'Street Ct. Fairfax, IA 52228 RE: City of Fairfax,Linn County,Iowa $1,200,000 Sewer 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, Iowa, Placement Agent, has provided a proposal for the purchase of $1,200,000 Sewer 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 Bonds be awarded to the proposer at a price of$1,200,000.00, being at a true interest cost of 2.2482%. The amounts and rates for each year are as follows: Year Principal Rates 2019 .........................................$I,200,000.................................2.250% Sincerely, SPEER FINANCIAL,INC. V v � � J Maggie. urger Sr. Vice President MB/mr SU`14WO-(.)IN'E NCIRTI-I LASAI,LE STRFET.CHICAM,ILLINOIS 50602.,(312)346-3700•PAX[3 12).,46-9833 SIIITF.608•531 C0MNIERC.IAL S'I'RE:ET•WATER1,00,IOWA D0701 -(319)1-91-2077•FAX(3I9)291-8628 SPEER FINANCIAL, INC. City of Fairfax,Linn County, Iowa $1,200,000 Sewer Revenue Bond Anticipation Note, Series 2016 **FINAL** Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 09/01/2016 _ 06/01/2017 20,250.00 20,250,00 20,250.00 12/01/2017 13,500.00 13,500.00 - 06/01/2018 13,500.00 13,500.00 27,000,00 12/01/2018 - 13 500.00 13,500.00 06/01/2019 1,200,000.00 2.250% 13,500.00 1,213,500.00 1,227,000.00 Total $1,200,000.00 - 574,250.00 $1,274,250.00 Yield Statistics Band Year Dollars $3,300.00 Average Life 2.750 Years Average Coupon 2.2500000% Net Interest Cost(NIC} 2.2500000% True interest Cost(TIC) 2.2482450% Bond Yield for Arbitrage Purposes 2.2482450% All Inclusive Cost(A1C) 2.9915975% IRS Form 8038 Net Interest Cost 2.2500000% Weighted Average Maturity 2.750 Years I 16 Fairfax Sewer Rev BAN SINGLE PURPOSEI 81912016 13:41 PM Speer Financial, Inc. Independent Public Financial Advisors since 1954 Pagel Prime Rate Federal Funds Rates Discount Rate Fed Fund Reserve Lending COFI Page 1 of 2 Home Rates Calrulators Search MORTGAGES REFINANCE BANK RATES CREDIT CARDS PERSONAL LOANS AUTO RETIREMENT FINANCIAL,PLANNING adyemsemanl '. Y 30 year fixed late 41V OW j, r i :,�^, '�.�--✓ y �,,, .✓ ,J 1013.000-$624,999 s', r✓ r CONNECT WITH US MORTGAGE Prime rate, federal funds rate, COR REFINANCE RATES AVERAGES Ey Bankr`ate.com The prime rate,as reported by The Wall Street Journal's bank survey,is among the Product Rate Chane Lnstweek most widely used benchmark in setting home equity lines of credit and credit card 30 year fixed refi 3.55% 4,0-07 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% 0.02 2.75% The COFI(11th District cost of funds index)is a widely used benchmark for 10 year fixed refi 2.70% om 2.68% adgustable-rate mortgages. advedisement Click on the links below to find a fuller explanation of the term. Prime rate,federal funds rate,COFI Updated 8!312616 C) 30 year Fixed 3.00x",'0 13.18% APR This week Month ago Year ago C 1 Year:Fixed 2.50°I°0..2.65% .:APR WSJ Prime Rate 3,50 3.50 3.25 511 ARM 3.43% 3.17% APR Federal Discount Rate 1.00 1.00 0-75 Fed Funds Rate(Current tarcteY,(_ate 0.25-0.501 0,50 0.50 0,25 ', C) $1,50k 611 ARM $643 11th District Cost of Funds 0.690 0,691 0.5590 S300k 511ARIVI: 186 Ratings methodology What's included?The federal funds rate is the primary tool that the Federal Open Market Committee uses to Influerce interest rates and the economy.Changes in the federal funds Click your St'al'e 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 rg certificates of deposit,savings accounts and money market accounts.Changes in the a 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 Dlstrict Cost of Funds is often used as an index for adjustabie-rate mortgages. Back to Rate Watch main page. 91 III ill�� share ad—tisem-L Mortgage N Year Fized 3.18°'o APR COMPARE MORTGAGE RATES Rates Hit 774�oAPR 15Ye�rFi2ed 2,65°b APR Fixed Rates Adjustable Rates Interest Only Rates 3. i/t ARM 3,Il°Io APR 10 year faxed '-5 yearfixed r4:4 I yGGrARM 'f yearARM refi ' 311,4Re9(C) 5r1 ARM(IC;refi 15 year fixad 20 year fixed refi 811 ARh9 3X1 ARM ref! 511 ARM d0) ..r1 ARM ti0)refi 20 year Faxed 30 year fixed reel `c:1 ARM h/'1 ARM refi 70 ARM(IO) 3-'year do)refi 30 year fixed 30 year=�HA'G5 711.ARM 711 ARM refi 30 year fixed(:C} Sal afs.ARMs 30 year FHA See 96 dxed "071 ARP; 1011 ARM ref! 311 ARM{IO)refi Seli al'itis aaemse»em http://www,bankrate.coir/rates/interest-rates/prime-rate.aspx 8/9/2016