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GO Bond Series 2012G_$950K Refunding Series 2002CTHE CITY OF Dui Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque kital All- America City II 111! 2012 SUBJECT: Proceedings for Directing Sale of $950,000 General Obligation Refunding Bonds, Series 2012G, Awarding Bonds to Best Bidder and Redemption of Outstanding General Obligation Bonds, Series 2002C DATE: October 1, 2012 Budget Director Jennifer Larson recommends City Council approval of the suggested proceedings for directing sale of the $950,000 General Obligation Refunding Bonds, Series 2012G, awarding the Bonds to the best bidder and redemption of the outstanding General Obligation Bonds, Series 2002C. The Series 2012G bonds will be used to provide funds to pay costs of refunding and refinancing of certain City indebtedness, including the General Obligation Bonds, Series 2002C, dated December 1, 2002 (Water Main and Water Tower Bond issue). This refunding is estimated to save the City $77,000 in interest over the next four years. The bond sale will be held on October 15, 2012 at 1:00 p.m. The results will be brought to the October 15th City Council meeting. A letter from attorney Mark Cory detailing information on the bond advertisement is enclosed. I concur with the recommendation and respectfully request Mayor and City Council approval. kr,„709,,, Michael C. Van Milligen MCVM /jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Larson, Budget Director Kenneth TeKippe, Finance Director Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director Dubuque kital All- America City II 111! 2012 SUBJECT: Proceedings for Directing Sale of $950,000 General Obligation Refunding Bonds, Series 2012G, Awarding Bonds to Best Bidder and Redemption of Outstanding General Obligation Bonds, Series 2002C DATE: October 1, 2012 DISCUSSION The purpose of this memorandum is to recommend directing sale of the $950,000 General Obligation Refunding Bonds, Series 2012G, awarding the Bonds to the best bidder and redemption of the outstanding General Obligation Bonds, Series 2002C. The Series 2012G bonds will be used to provide funds to pay costs of refunding and refinancing of certain City indebtedness, including the General Obligation Bonds, Series 2002C, dated December 1, 2002 (Water Main and Water Tower Bond issue). This refunding is estimated to save the City $77,000 in interest over the next four years. The bond sale will be held on October 15, 2012 at 1:00 p.m. The results will be brought to the October 15th City Council meeting. A letter from attorney Mark Cory detailing information on the bond advertisement is enclosed. RECOMMENDATION I respectfully recommend the adoption of the enclosed resolutions directing the sale of the bonds, awarding the bonds to the best bidder and authorizing the redemption of the outstanding General Obligation Bonds, Series 2002C, dated December 1, 2002. JML Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Kenneth TeKippe, Finance Director rer,inrner.Nmn,,reraw,a^.^,eawre,a,weerrerr,,,.°,r,x,,,,r,re,erer,e,,,,,,r, (Pe//7,z_ (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Dubuque, Iowa. Date of Meeting: October 15, 2012. Time of Meeting: 1:00 p.m. (Office of the Budget Director) 6:30 p.m. (City Council) Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: General Obligation Refunding Bonds, Series 2012G. Receipt of bids. Resolution directing sale. Such additional matters as are set forth on the additional 2 page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of the governmental body. City Cl rk, City of Dubuque, owa October 15, 2012 The Finance Director of Dubuque, Iowa, met in the office of the Budget Director, City Hall, Dubuque, Iowa, at 1:00 o'clock P.M., on the above date, to open sealed bids received, access facsimile bids and electronic bids and to refer the sale of the Bonds to the best and most favorable bidders for cash, subject to approval by the City Council at 6:30 o'clock P.M. on the above date. The following persons were present: Jenny Larson * * * * * * ** This being the time and place for the opening of bids for the sale of General Obligation Refunding Bonds, Series 2012G, the meeting was opened for the receipt of bids for the bonds. The following actions were taken: 1. Sealed bids were filed and listed in the minutes while unopened, as follows: None 2. The Finance Director then declared the time for filing of sealed bids to be closed and that the sealed bids be opened. The sealed bids were opened and announced. 3. Electronic bids received were accessed and announced as follows: Name & Address of Bidders: UMB Bank N.A., Kansas City, MO Country Club Bank N.A., Prairie Village KS Bankers Bank, Madison, WI Raymond James & Associates Inc., Memphis, TN Hutchinson, Shockey, Erley & Co., Chicago, IL Northland Securities, Minneapolis, MN D.A. Davidson & Co., Denver, CO 4. The best bid was determined to be as follows: Name & Address of Bidder: UMB Bank N.A., Kansas City, MO True Interest Rate: 0.668052% Net Interest Cost: $16,551.50 All bids were then referred to the Council for action in accordance with the Notice of Sale. October 15, 2012 The City Council of the City of Dubuque, Iowa, met in regular session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor Roy Buol , in the chair, and the following named Council Members: Present: Karla Braig, Joyce Connors, Ric Jones Kevin Lynch, David Resnick, Lynn Sutton Absent: * * * * * ** Council Member Jones introduced the following Resolution entitled "RESOLUTION DIRECTING SALE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012G," and moved its adoption. Council Member c o n n n r G seconded the motion to adopt. The roll was called and the vote was, AYES: Jones, Lynch, Resnick, Sutton Braig, Buol, Connors NAYS: Whereupon, the Mayor declared the following Resolution duly adopted: RESOLUTION NO. 288 -12 RESOLUTION DIRECTING SALE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012G WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the bonds described as follows and the best bid received is determined to be the following: $950,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012G: Bidder: UMB Bank N.A. of Kansas City, MO the terms of said bid being: Purchase Price: $961,686.45 Principal Amount: $950,000 True Interest Rate: 0.667842% Net Interest Cost: $16,206.99 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the bid for the bonds as above set out is hereby determined to be the best and most favorable bid received and, said bonds are hereby awarded based on said bid. Section 2. That the statement of information for bond bidders and the form of contract for the sale of said bonds are hereby approved and the Mayor and Clerk are authorized to execute the same on behalf of the City. Section 3. That the notice of the sale of the bonds heretofore given and all acts of the Clerk done in furtherance of the sale of said bonds are hereby ratified and approved. PASS 1I AND APPROVED this 15th day of October, 2012. Mayo -2- Page 1 1:00:01 p.m. CDST Deal Sale Time: 1:00PM CDST Countdown Clock: 00:00:00 Upcoming Calendar Overview Incoming Bid Screen Result [ Refresh I Dubuque $950,000 General Obligation Refunding Bonds, Series 2012G Bidder Time Submitted (CDST) Raymond James & Associates, Inc. 12:59:26PM D.A. Davidson & Co. 12:58:39PM Country Club Bank 12:58:37PM Northland Securities, Inc. 12:54:28PM Hutchinson, Shockey, Erley & Co. 12:29:42PM UMB Bank N.A. 12:26:12PM © 1981-2002 i -Deal LLC, All rights reserved, Trademarks KtNUK I UI- SALt City of Dubuque $950,000 General Obligation Refunding Bonds Series 2012G Sale Date: Monday, October 15, 2012 at 1:00 PM Central Moody's Rating "Aa1" Bank Qualified WINNING BIDDER UMB Bank NA, Kansas City, MO Bonds Due Interest 1 -Jun Rate 2013 1.000% 2014 1.000% 2015 1.000% 2016 1.250% 2017 1.250% Purchase Price: 961,998.50 Net Interest Cost: 16,551.50 True Interest Rate: OTHER BIDDERS Country Club Bank, N.A., Prairie Village, KS Bonds Due Interest Bonds Due Interest 1 -Jun Rate 1 -Jun Rate 2013 2.000% 2013 0.350% 2014 2.000% 2014 0.400% 2015 2.000% 2015 0.500% 2016 2.000% 2016 0.650% 2017 2.000% 2017 0.750% Purchase Price: 982,252.50 Purchase Price: 960,000.00 Net Interest Cost: 16,805.83 True Interest Rate: 0.668154% Net Interest Cost: 17,745.83 True Interest Rate: 0.668052% Page 2 As Restructured (Statistics from Dated Date) Purchase Price: 961,686.45 Net Interest Cost: 16,206.99 True Interest Rate: 0.667842% Bankers Bank, Madison, WI Raymond James, & Associates Inc., Memphis, TN Bonds Due Interest 1 -Jun Rate 2013 0.350% 2014 1.000% 2015 1.250% 2016 1.500% 2017 1.500% Purchase Price: 964,569.70 Net Interest Cost: 18,614.36 True Interest Rate: Northland Securities, Minneapolis, MN Bonds Due Interest 1 -Jun Rate 2013 1.500% 2014 1.500% 2015 1.500% 2016 1.500% 2017 1.500% Purchase Price: 962,699.90 Net Interest Cost: 24,093.85 True Interest Rate: 0.749270% 0.972503% Hutchinson, Shockey, Erley & Co., Chicago, IL Bonds Due 1 -Jun 2013 2014 2015 2016 2017 Purchase Price: Net Interest Cost: Interest Rate 1.000% 1.000% 1.500% 1.500% 1.500% 962,745.10 22,208.65 True Interest Rate: D.A. Davidson & Co., Denver, CO Bonds Due Interest 1 -Jun Rate 2013 2.000% 2014 2.000% 2015 2.000% 2016 2.000% 2017 2.000% Purchase Price: 972,669.50 Net Interest Cost: 26,388.83 True Interest Rate: PinerTaffrav 0.717000% 0.895690% 1.056901% Page 3 Existing Debt ( "Prior Debt") xisting 12/ 21 12 : on ' s eries 2112 City of Dubuque, Iowa (call of 12/1/2002 bonds Date 12/1//2002 Principal Payment 12/1//2002 Interest Payment Paying Agent Expense 12/1//2002 P & I Payment 12/1//2002 Interest Rate 6/1/2012 12/1/2012 6/1/2013 175,000 19,598 194,598 4.000% 12/1/2013 16,098 16,098 6/1/2014 185,000 16,098 0 201,098 4.000% 12/1/2014 12,398 12,398 6/1/2015 190,000 12,398 0 202,398 4.100% 12/1/2015 8,503 8,503 6/1/2016 195,000 8,503 0 203,503 4.200% 12/1/2016 4,408 4,408 6/1/2017 205,000 4,405 0 209,4025 4.300% Totals: 950,000 102,408 0 1,052,408 Page 4 ity of bu.uque, o Debt Service Schedule ( "New Debt ") f 12 1 2012 . on. s l ate u: Closing Bond Called: 11/28 2112 11/28/2012 12/1/2012 A B C D E F G •Paying Annual Date Principal Interest Agent Debt Interest Interest Payments' Payment Expense Service Rate Yield 6/1/2012 12/1/2012 6/1/2013 185,000 5,318 0 190,318 1.000% 0.300% 12/1/2013 4,306 6/1/2014 190,000 4,306 0 198,613 1.000% 0.350% 12/1/2014 3,356 6/1/2015 190,000 3,356 - 0 196,713 1.000% 0.400% 12/1/2015 2,406 6/1/2016 190,000 2,406 0 194,813 1.250% 0.500% 12/1/2016 1,219 6/1/2017 195,000 1,219 U 197,438 1.250% 0.650% Totals: 950,000 27,893 0 977,893 ity o Du•uqu Savings An alysis f 12 1 2112 .on.s (1) (2) (3) (4) (5) Date Existing Bond Payments Proposed "New" Bond Payments Estimated Semi -Annual Savings Annual Savings Present Value of Savings 6/1/2012 12/1/2012 0 6/1/2013 194,598 190,318 4,279 4,279 4,268 12/1/2013 16,098 4,306 11,791 11,731 6/1/2014 201,098 194,306 6,791 18,583 6,739 12/1/2014 12,398 3,356 9,041 8,949 6/1/2015 202,398 193,356 9,041 18,083 8,927 12/1/2015 8,503 2,406 6,096 6,004 6/1/2016 203,503 192,406 11,096 17,193 10,900 12/1/2016 4,408 1,219 3,189 3,124 6/1/2017 209,408 196,219 13,189 16,378 12,890 Totals: 1,052,408 977,893 74,514 74,514 73,532 avmgs as a /o or re a oonos: 7.74 Page 5 Page 6 Sources & Uses of Funds ity o lueuque, owa ca o 12 1 2112 'ones Dated: Closing Bond Called: Uses of Funds 11/28/2012 11/28/2012 12/1/2012 Call of 2002 Bonds Issuance Costs: Underwriting Costs: Original Issue Discount: Deposit to Sinking (Accrued): Rounding 950,000.00 11,686.45 3,803.65 0.00 0.00 Total Uses of Funds: 965,490.10 Sources of Funds Bond Proceeds: Accrued Interest: Original Issue Premium: 950,000.00 15,490.10 Total Sources of Funds: 965,490.10 Summary of F nancing Average Maturity of Bonds: Average Interest Rate: Net Interest Cost: Net Interest Cost ($) Bond Yield: True Interest Cost (TIC): All -In True Interest Cost: 2.53 1.16081585% 1.31910890% 16,206.99 0.50957905% 0.66784213% 1.16010333% e(This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Dubuque, Iowa. Date of Meeting: October 15 , 2012. Time of Meeting: 6:30 o'clock P .M. Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for the meeting is as follows: Resolution Authorizing the Redemption of Outstanding General Obligation Bonds, Series 2002C, dated December 1; 2002. Such additional matters as are set forth on the additional 7 page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local rules of said governmental body. October 15, 2012 The City Council of Dubuque, Iowa, met in regular session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor Roy D. Buol in the chair, and the following named Council Members: Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch, David Resnick, Lynn Sutton Absent: * * * * * * * * Council Member Jones introduced the following Resolution entitled "RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2002C, DATED DECEMBER 1, 2002, OF THE CITY OF DUBUQUE, IOWA, AND DIRECTING NOTICE OF REDEMPTION," and moved its adoption. Council Member Connors seconded the motion to adopt. The roll was called and the vote was, AYES: Jones, Lynch, Resnick, Sutton, Braig, Buol, Connors NAYS: Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 289 -12 RESOLUTION AUTHORIZING THE REDEMPTION OF OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2002C, DATED DECEMBER 1, 2002, OF THE CITY OF DUBUQUE, IOWA, AND DIRECTING NOTICE OF REDEMPTION WHEREAS, the City has heretofore authorized the issuance of $3,105,000 General Obligation Bonds, Series 2002C, dated December 1, 2002 (the "Series 2002C Bonds "); and WHEREAS, the Series 2002C Bonds may be called for redemption and paid before maturity on said date or any date thereafter, from any funds regardless of source, in whole or from time to time in part, upon giving notice in the manner provided in the foregoing resolution authorizing the issuance of the Series 2002C Bonds; and WHEREAS, it is deemed necessary and advisable that the Series 2002C Bonds be so redeemed and notice of redemption be given. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the outstanding General Obligation Bonds, Series 2002C, dated December 1, 2002, in the principal amount of $3,105,000 be and the same are hereby redeemed as of December 1, 2012. 3 Section 2. Wells Fargo Bank, N.A., as Registrar and Paying Agent for the Series 2002C Bonds, is hereby authorized and directed to cause notice of such redemption to be given not less than thirty (30) days prior to the redemption date. Section 3. The Finance Director is hereby authorized and directed to cause to be deposited in a separate fund, from the proceeds of the General Obligation Refunding Bonds, Series 2012G, an amount sufficient to pay all principal and interest on the redeemed Series 2002C Bonds to the date of redemption. Section 4. That the form of such notice be substantially as follows: 4 NOTICE OF THE CALL OF BONDS FOR REDEMPTION TO THE HOLDERS OF THE FOLLOWING DESCRIBED BONDS: Please take notice that the Bonds described below have been called for redemption. Owners of the Bonds should present their Bonds for payment on the Redemption Date. Issuer: City of Dubuque, Iowa Original Issue Amount: $3,105,000 Bond Issue: General Obligation Bonds, Series 2002C Dated Date: December 1, 2002 Redemption Date: December 1, 2012 Redemption Price: Par, plus accrued interest Bonds Called for Redemption Interest Principal Maturity Rate Amount Date 4.00% $175,000 June 1, 2013 4.00 185,000 June 1, 2014 4.10 190,000 June 1, 2015 4.20 195,000 June 1, 2016 4.30 205,000 June 1, 2017 5 The above Series 2002C Bonds should be presented to Wells Fargo Bank, N.A., 666 Walnut Street, Des Moines, Iowa 50309, telephone (515/245- 8504). This represents a full call of the outstanding obligations. All interest will cease to accrue on the Redemption Date. Wells Fargo Bank, N.A., Registrar (End of Notice) 6 PASSED AND APPROVED this 15th day of October , 2012. Mayor ATTEST: b‘