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Home My WebLink AboutRESOLUTION NO. 2018-46 Fairfax419915-27/2018 Sale GO RESOLUTION NO. 2018-46 RESOLUTION AWARDING SALE OF GENERAL OBLIGATION URBAN RENEWAL CORPORATE PURPOSE AND REFUNDING BONDS, SERIES 2018 WHEREAS, the City of Fairfax, Iowa (the "City") has proposed to enter into a loan agreement (the "Loan Agreement") and to issue General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, pursuant to the provisions of Chapters 384 and 403 of the Code of Iowa, for the purpose of financing projects in the Fairfax Urban Renewal Area involving the construction of street, bridge, sanitary sewer, city park and trail improvements, and refunding the outstanding balances of sewer revenue bond anticipation project notes and water revenue bond anticipation project notes, and has published notice and has held a hearing thereon; and WHEREAS,pursuant to advertisement of sale,bids for the purchase of$2,170,000 General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018 (the "Bonds") to be issued in evidence of the City's obligation under the Loan 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 municipal advisor has determined that the bid of Dougherty & Co., LLC, Minneapolis, Minnesota (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 Bonds are hereby awarded to the Purchaser in the principal amount or$2,161,906.70, and at the price specified in such bid, together with accrued interest. Section 2. The form of agreement of sale (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. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved July 24, 2018. c, Burnell G. Frieden,Mayor Attest: A I/? Kathy Everett, Deputy City Clerk-Utilities 1AA 7 al Sf NS -3VFW - DORSEY &WHITNEY LLP,ATTORNEYS,DES MOINES, IOWA ii�F-K Fairfax419915-27/2018 Sale GO Upon motion and vote, the meeting was adjourned. /o/13 i4u'r1nA G. Frieden, Mayor Attest: C- -------------/ z Kathy Evereft, ?'iPuty City Clerk-Utilities 4- DORSEY &WHITNEY LLP,ATTORNEYS, DES MOINES, IOWA Fairfax419915-27/2018 Sale GO 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 General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018, 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 this3_L day of 2018. 410e�' Kathy Everet0eputy City Clerk-Utilities (Attach here a copy of the bid of the successful bidder.) -5- DORSEY &WHITNEY LLP,ATTORNEYS, DES MOINES, IOWA Speer Finand 1, !In MTEN�L��TCADVISORS ESTABLISHED 1954 KEVIN DANIEL, DAVID RAPFIAL,IATA MAGGIE ANTHONY LARRY MARK McCANNA FORBES PIJIL,LIPS McKENZIE BURGER MICEIA BURGER JERETINA Chairman President Evecutive V11 Senior VP Senior V11 Senior V11 Vice President Vice 11mvidem July 24, 2018 The Honorable Burnell G. Frieden, Mayor and Members of the City Council City of Fairfax 300 80th Street Court P.O. Box 337 Fairfax, IA 52228 Dear Mayor Frieden and Council Members: Bids were received today for the $2,170,000 General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018. There were six bids received,which are listed at the bottom of this letter. Upon examination, it is our opinion that the bid of Dougherty & Company LLC, Minneapolis, Minnesota, 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 $2,161,906.70, being at a true interest rate of 2.9005%. True Account Managers Interest Rate Dougherty & Company LLC, Minneapolis, Minnesota.............................. 2.9005% Piper Jaffray & Co., Minneapolis, Minnesota.................................................. 2.9045% Bankers' Bank, Madison, Wisconsin ............................................................... 2.9927% UMB Bank, n.a., Kansas City, Missouri.......................................................... 3.0262% Northland Securities, Inc., Minneapolis, Minnesota........................................ 3.0308% D.A. Davidson & Co., Denver, Colorado......................................................... 3.1273% Respectfully submitted, SPEER FINANCIAL, INC. Maggie Burger, Sr. Vice President MB/mr Enclosures SUITE 4100-ONE NO R'll I LASA L 1,E STRITT CHICAGO, I LLIN(AS 60602-(312)346-3700.FAX(312)346-8833 SUITE 608-531 COMMERCIAL STREIT-WATFRLOO, IOWA 50701 -(319)291-2077-FAX(319)291-8628 Speer Financial, Inc. INDEPENDENT MUNICIPAL ADVISORS e ESTABLISHED 1954 SUITE 608*531 COMMERCIAL STREET WATERLOO,IOWA 50701 *(319)291-2077 @ FAX(319)291-8628 Not Rated $2,170,000 CITY OF FAIRFAX Linn County, Iowa General Obligation Urban Renewal Corporate Purpose and Refunding Bonds, Series 2018 Date of Sale: July 24, 2018 Average Life: 7.618 Years (Based on TIC) True Bidders* Price Maturities Rates Interest" ')ougherty & Company LLC 99.627% 2019 - 2024 2.500% 2.9005% Minneapolis, Minnesota $2,161,906.70 2025 2.600% $480,046 2026 2.750% In conjunction with Fairfax State Savings Bank, Fairfax, Iowa 2027 2.800% 2028 2.900% 2029 3.000% 2030 3.100% 2031 3.200% Piper Jaffray & Co. 99.600% 2019 2.100% 2.9045% Minneapolis, Minnesota $2,161,320.00 2020 2.150% $481,033 2021 2.200% Fairfax State Savings Bank, Fairfax, Iowa 2022 2.250% 2023 2.350% 2024 2.500% 2025 2.600% 2026 2.750% 2027 2.900% 2028 3.000% 2029 3.050% 2030 3.100% 2031 3.200% Speer Financial, Inc. INDEPENDENT MUNICIPAL ADVISORS Page 2 True Bidders* Price Maturities Rates Interest" Bankers' Bank 99.750% 2019 - 2020 2.150% 2.9927% Madison, Wisconsin $2,164,575.00 2021 2.300% $496,012 2022 2.450% Fairfax State Savings Bank, Fairfax, Iowa 2023 2.550% 2024 2.650% 2025 2.750% 2026 2.850% 2027 2.950% 2028 3.050% 2029 3.150% 2030 3.250% 2031 3.300% UMB Bank, n.a. 100.266% 2019 - 2020 2.100% 3.0262% Kansas City, Missouri $2,175,777.80 2021 - 2028 3.000% $502,053 2029 3.100% 2030 3.200% 2031 3.300% Northland Securities, Inc. 99.991% 2019 - 2029 3.000% 3.0308% Minneapolis, Minnesota $2,169,816.30 2030 - 2031 3.125% $501,464 D.A. Davidson & Co. 100.939% 2019 - 2020 2.000% 3.1273% Denver, Colorado $2,190,397.30 2021 - 2027 3.000% $522,179 2028 - 2029 3.500% 2030 - 2031 3.600% *Syndicate information is provided by the underwriter. The information contained in this report is the most current available, "The true interest rate reflects the time value oj'money where dollars spent in early years have a greater weight than dollars spent in later years. Speer Financial, Inc. INDEPENDENTMUNICIPAL ADVISORS City of Fairfax, Iowa $2,170,000 General Obligation Urban Renewal Corporate Purpose and Refunding Bond �( ** FINAL ** I ' i Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 08/28/2018 - - - - 06/01/2019 35,000.00 2.500% 45,335.06 80,335.06 80,335.06 12/01/2019 - - 29,453.75 29,453.75 - 06/01/2020 65,000.00 2.500% 29,453.75 94,453.75 123,907.50 12/01/2020 - 28,641.25 28,641.25 - 06/01/2021 140,000.00 2.500% 28,641.25 168,641.25 197,282.50 12/01/2021 - - 26,891.25 26,891.25 - 06/01/2022 180,000.00 2.500% 26,891.25 206,891.25 233,782.50 12/01/2022 - - 24,641.25 24,641.25 06/01/2023 185,000.00 2.500% 24,641_25 209,641.25 234,282.50 12/01/2023 - 22,328.75 22,328.75 CALL 06/01/2024 185,000.00 2.500% 22,328.75 207,328.75 229,657.50 12/01/2024 - - 20,016.25 20,016.25 - 06/01/2025 195,000.00 2.600% 20,016.25 215,016.25 235,032.50 12/01/2025 - - 17,481.25 17,481.25 06/01/2026 195,000.00 2.750% 17,481.25 212,481.25 229,962.50 12/01/2026 - - 14,800.00 14,800.00 06/01/2027 205,000.00 2.800% 14,800.00 219,800.00 234,600.00 12/01/2027 11,930+00 11,930.00 06/01/2028 215,000.00 2.900% 11,930.00 226,930,00 238,860.00 12/01/2028 - - 8,812.50 8,812.50 06/01/2029 220,000.00 3.000% 8,812.50 228,812.50 237,625.00 12/01/2029 - - 5,512.50 5,512.50 - j 06/01/2030 175,000.00 3.100% 5,512.50 180,512.50 186,025.00 12/01/2030 - - 2,800.00 2,800.00 - 06/01/2031 175,000.00 3.200% 2,800.00 177,800.00 180,600.00 Total $2,170,000.00 $471,952.56 $2,641,952.56 Yield Statistics Bond Year Dollars $16,530.58 Average Life 7.618 Years Average Coupon 2.8550267% Net Interest Cost(NIC) 2.9039862% True Interest Cost(TIC) 2.9005887% Bond Yield for Arbitrage Purposes 2.8187785% All Inclusive Cost(AIC) 3.0596503% IIS Form 8038 Net Interest Cost 2.8298746% Weighted Average Maturity 7.610 Years 18 Fairfax 2.170 GO UR CP SINGLE PURPOSE 1 7/24/20'18 1 11:38 AM Speer Financial, Inc. Registered Municipal Advisor Pagel $2,170,000 * City of Fairfax,Linn County,Iowa General Obligation Urban Renewal Corporate Purpose and Refunding Bonds,Series 2018 Bidder: Dougherty& Co.,Ll,CBidder TIC: 2.900589 % Best AON TIC: 2.900589 % Status: Winner** Serial/ Principal Sinker/ Due Amount Term Coupon Jun 1,2019 $35,000 Serial 2.500% Jun 1,2020 $65,000 Serial 2.500% Jun 1,2021 $140,000 Serial 2.500% Jun 1,2022 $180,000 Serial 2.500% Jun 1,2023 $185,000 Serial 2.500% Jun 1,2024 $185,000 Serial 2.500% Jun 1,2025 $195,000 Serial 2.600% Jun 1,2026 $195,000 Serial 2.750% Jun 1,2027 $205,000 Serial 2.800% Jun 1,2028 $215,000 Serial 2.900% Jun 1,2029 $220,000 Serial 3.000% Jun 1,2030 $175,000 Serial 3.100% Jun 1,2031 $175,000 Serial 3.200% Purchase Price: $2,161,906.70 Spread: $11,891.60 Time Submitted:July 24,2018 at 11:51:48 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes oil ) Issue Size $2,170,000 Gross Interest $471,952.56 Plus Discount/(Less Premium) 8,093.30 Total Interest Cost $480,045.86 True Interest Rate 2.900589% Total Bond Years 16,530.58 Average Life 7.618 yLarsJ Firm: Dougherty & Co, LLC' 'Preliminary,subject to change "Winner-Unofficial,subject to verification and award.May not include sealed bids received outside of SpeerAuction system. $2,170,000 * City of Fairfax,Linn County,Iowa General Obligation Urban Renewal Corporate Purpose and Refunding Bonds,Series 2018 Bidder: Piper;pat"frayBidder TIC:2.904573 % Best AON TIC:2.900589 % Status:Not Winner Serial/ Principal Sinker/ Due Amount * Term Coupon Jun 1,2019 $35,000 Serial 2.100% Jun 1,2020 $65,000 Serial 2.150% Jun 1,2021 $140,000 Serial 2.200% Jun 1,2022 $180,000 Serial 2.250% Jun 1,2023 $185,000 Serial 2.350% Jun 1,2024 $185,000 Serial 2.500% Jun 1,2025 $195,000 Serial 2.600% Jun 1,2026 $195,000 Serial 2.750% Jun 1,2027 $205,000 Serial 2.900% Jun 1,2028 $215,000 Serial 3.000% Jun 1,2029 $220,000 Serial 3.050% Jun 1,2030 $1.75,000 Serial 3.100% Jun 1,2031 $175,000 Serial 3.200% Purchase Price: $2,161,320.00 Spread: None Entered Time Submitted:July 24,2018 at 11:53:09 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes onl ) Issue Size $2,170,000 Gross Interest $472,353.10 Plus Discount/(Less Premium) 8,680.00 Total Interest Cost $481,033.10 True Interest Rate 2.904573% Total Bond Years 16,530.58 vera re Life 7.618 Years Firm: ripen"Jaffray *Preliminary,subject to change **Winner-Unofficial, subject to verification and award.May not include sealed bids received outside of SpeerAuction system. $2,170,000 - City of Fairfax,Linn County,Iowa General Obligation Urban Renewal Corporate Purpose and Refunding Bonds,Series 2018 Bidder: Bankers' BankBidder TIC: 2.992742 % Best AON TIC:2.900589 % Status: Not,Winner Serial/ Principal Sinker/ Due Amount Term Coupon Jun 1,2019 $35,000 Serial 2.150% Jun 1,2020 $65,000 Serial 2.150% Jun 1,2021 $140,000 Serial 2.300% Jun 1,2022 $180,000 Serial 2.450% Jun 1,2023 $185,000 Serial 2.550% Jun 1,2024 $185,000 Serial 2.650% Jun 1,2025 $195,000 Serial 2.750% Jun 1,2026 $195,000 Serial 2.850% Jun 1,2027 $205,000 Serial 2.950% Jun 1,2028 $215,000 Serial 3.050% Jun 1,2029 $220,000 Serial 3.150% Jun 1,2030 $175,000 Serial 3.250% Jun 1,2031 $175,000 Serial 3.300% Purchase Price:$2,164,575.00 Spread: $2.50 Time Submitted:July 24,2018 at 11:40:24 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes o ly) Issue Size $2,170,000 Gross Interest $490,586.60 Plus Discount/(Less Premium) 5,425.00 Total Interest Cost $496,011.60 True Interest Rate 2.992742% Total Bond Years 16,530.58 JAverage Life 7.618 Years Firm: Bankers' Bank *Preliminary,subject to change **Winner- Unofficial,subject to verification and award. May not include sealed bids received outside of SpeerAuction system. $2,170,000 City of Fairfax,Linn County,Iowa General Obligation Urban Renewal Corporate Purpose and Refunding Bonds,Series 2018 Bidder: UMB BankBidder TIC: 3.026241 % Best AON TIC:2.900589 % Status: Not Winner Serial/ Principal Sinker/ Due Amount 'k Term Coupon Jun 1,2019 $35,000 Sinker 2.100% Jun 1,2020 $65,000 Term 2.100% Jun 1,2021 $140,000 Serial 3.000% Jun 1,2022 $180,000 Serial 3.000% Jun 1,2023 $185,000 Serial 3.000% Jun 1,2024 $185,000 Serial 3.000% Jun 1,2025 $195,000 Serial 3.000% Jun 1,2026 $195,000 Serial 3.000% Jun 1,2027 $205,000 Serial 3.000% Jun 1,2028 $215,000 Serial 3.000% Jun 1,2029 $220,000 Serial 3.100% Jun 1,2030 $1.75,000 Serial 3.200% Jun 1,2031 $175,000 Serial 3.300% Purchase Price: $2,175,777„80 Spread: $8.95 Time Submitted: July 24,2018 at 11:31:57 AM EDT SpeerAuction Interest Cost Calculations (for informational 2urposes onl ) Issue Size $2,170,000 Gross Interest $507,830.38 Plus Discount/(Less Premium) (5,777.80) Total Interest Cost $502,052.58 True Interest Rate 3.026241% Total Bond Years 16,530.58 Average Life 7.618 Years Firm: UMB Bank Preliminary,subject to change "Winner-Unofficial,subject to verification and award.May not include sealed bids received outside of SpeerAuction system. $2,170,000 - City of Fairfax,Linn County,Iowa General Obligation Urban Renewal Corporate Purpose and Refunding Bonds,Series 2018 Bidder: Northland Bidder TIC: 3.030897 % Best AON TIC:2.900589 % Status:Not Whiner Securities Serial/ Principal Sinker/ Due Amount Term Coupon Jun 1,2019 $35,000 Serial 3.000% Jun 1,2020 $65,000 Serial 3.000% Jun 1,2021 $140,000 Serial 3.000% Jun 1,2022 $180,000 Serial 3.000% Jun 1,2023 $185,000 Serial 3.000% Jun 1,2024 $185,000 Serial 3.000% Jun 1,2025 $195,000 Serial 3.000% Jun 1,2026 $195,000 Serial 3.000% Jun 1,2027 $205,000 Serial 3.000% Jun 1,2028 $215,000 Serial 3.000% Jun 1,2029 $220,000 Serial 3.000% Jun 1,2030 $175,000 Serial 3.125% Jun 1,2031 $175,000 Serial 3.125% Purchase Price:$2,169,816.30 Spread: None Entered Time Submitted:July 24,2018 at 11:51:12 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes o ly) Issue Size $2,170,000 Gross Interest $501,280.52 Plus Discount/(Less Premium) 183.70 Total Interest Cost $501,464.22 True Interest Rate 3.030897% Total Bond Years 16,530.58 Avera e Life 7.618 Years Firm: *Preliminary,subject to change "Winner-Unofficial,subject to verification and award.May not include sealed bids received outside of SpeerAuction system. $2,170,000 City of Fairfax,Linn County,Iowa General Obligation Urban Renewal Corporate Purpose and Refunding Bonds,Series 2018 Bidder:DA DavidsonBidder TIC:3.127339 % Best AON TIC:2.900589 % Status: Not Winner Serial/ Principal Sinker/ Due Amount Term Coupon Jun 1,2019 $35,000 Sinker 2.000% Jun 1,2020 $65,000 Term 2.000% Jun 1,2021 $140,000 Serial 3.000% Jun 1,2022 $180,000 Serial 3.000% Jun 1,2023 $185,000 Serial 3.000% Jun 1,2024 $185,000 Sinker 3.000% Jun 1,2025 $195,000 Term 3.000% Jun 1,2026 $195,000 Sinker 3.000% Jun 1,2027 $205,000 Term 3.000% Jun 1,2028 $215,000 Sinker 3.500% Jun 1,2029 $220,000 Term 3.500% Jim 1,2030 $175,000 Sinker 3.600% Jun 1,2031 $175,000 Term 3.600% Purchase Price:`2,190,397.31) Spread: None Entered Time Submitted:July 24,2018 at 11:43:03 AM EDT SpeerAuction Interest Cost Calculations (for informational purposes onl ) Issue Size $2,170,000 Gross Interest $542,576.04 Plus Discount/(Less Premium) (20,397.30) Total Interest Cost $522,178.74 True Interest Rate 3.127339% Total Bond Years 16,530.58 vera e Life 7.618 Years Firm: DA Davidson 'Preliminary,subject to change "Winner-Unofficial,subject to verification and award.May not include sealed bids received outside of SpeerAuction system.