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Home My WebLink About94-300 Resolution No. 94-300 RESOLUTION AUTHORIZING INVITATIONS FOR SEALED BIDS FOR $6,500,000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1994 AND APPROVING PRELIMINARY OFFICIAL STATEMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Speer Financial, Inc. be and is hereby authorized to solicit sealed bids for $6;500, 000 General Obligation Corporate Purpose Bonds, Series 1994 , for the objects and purposes described in the Official Statement, attached hereto and made a part hereof by reference. BE IT FURTHER RESOLVED that the Official Statement be and is hereby approved. sl George VanDeVoorde George VanDeVoorde, Mayor Presented:. November 16, 1994 Adopted: November 16, 1994 Vote: Yeas 5 Nays 1 Attest: sl Dolonna Mecum Dolonna Mecum, City Clerk in Agenda Item No . (0 - t 6�1/ November 11, 1994 TO: Mayor and Members of the City Council Y Y FROM: Richard B. Helwig, City Manager SUBJECT: $6 . 5 Million General Obligation Corporate Purpose Bonds PURPOSE The purpose of this memorandum is to obtain authorization to seek sealed bids for $6 ,500, 000 General Obligation Corporate Purpose Bonds . BACKGROUND In conjunction with the Five-Year Financial Plan, a $6 . 5 million bond sale is scheduled for December 14 . Proceeds of the bond sale will be used to pay for completion of the law enforcement facility. In conjunction with the bond sale, a preliminary official statement (O.S . ) has been prepared high- lighting pertinent information about Elgin. The O.S . will be circulated to potential bidders (underwriters, financial institutions , investment firms, etc. ) in an effort to obtain the most competitive interest rate on the bond offering. In order to proceed further with the bond sale and seek sealed bids, approval of the Mayor and City Council is requested. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Presentation made November 2 , 1994 to Moody' s Investors Ser- vices in New York City by Mayor VanDeVoorde, Council Member Gilliam, Finance Director Nowicki, and City Manager Rick Helwig. FINANCIAL IMPACT No impact is associated with seeking bids . All bond sale costs would be included as part of the issue. LEGAL IMPACT None. L General Obligation Bonds November 11, 1994 Page 2 RECOMMENDATION It is recommended the Mayor and City Council authorize invita- tion for sealed bids for the sale of $6 .5 million in General Obligation Corporate Purpose Bonds . It is further recommend- ed that the preliminary O. S . be approved. Re ectfully submitted, i� ban owicki ce Director Richard B. Helwig City Manager JRN:daw PUBLIC FINANCE CONSULTANTS SINCE 1954 �PFLR FINANCIAL INC. ELWOOD BARCE RICHARD A.PAVIA KEVIN W.McCANNA DAVID F.PHILLIPS LARRY P.BURGER DANIEL D.FORBES CHAIRMAN EMERMS CHAIRMAN 3 CEO PRESIDENT SR.VICE PRMIDENT VICE PRESIDENT VICE PRESIDENT December 14, 1994 The Honorable George Van DeVoorde and Members of the City Council City of Elgin City Hall 150 Dexter Court Elgin, Illinois 60120 Dear Mayor Van DeVoorde and City Council: Bids were received today covering$6,500,000 General Obligation Corporate Purpose Bonds, Series 1994. There were 6 bids received which are listed at the bottom of this letter in accordance with the attached signed bids. Upon examination, it is our opinion that the bid of Harris Trust and Savings Bank, Chicago, Illinois, 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$6,435,008.25, plus accrued interest, being at a net interest rate of 6.2905%. Net Account Managers Interest Rate Dain Bosworth Inc., Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3553% First Chicago Capital Markets, Inc., Chicago . . . . . . . . . . . . . . . . . . . . . . . . . 6.4104% Harris Trust & Savings Bank, Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2905% Kemper Securities, Inc., Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3157% Nike Securities, Lisle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3414% Prudential Securities, Inc., Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3239% Respectfully submitted, Kevin W. McCanna President KWM/pam Enclosure SUITE 3435.55 EAST MONROE STREET•CHICAGO,ILLINOIS 60603•(312)346-3700•FAX(312)346-8833 SUITE 500.531 COMMERCIAL STREET•WATERLOO,IOWA 50701•(319)291-2077•FAX(319)291-6787 SPEER FINANCIAL, INC. PUBLIC FINANCE CONSULTANTS SINCE 1954 SUITE 3435 • 55 EAST MONROE STREET•CHICAGO,ILLINOIS 60603 • (312)346-3700• FAX(312)346-8833 Investment Rating: Moody's Investors Service ... Aa $6,500,000 CITY OF ELGIN Kane and Cook Counties, Illinois General Obligation Corporate Purpose Bonds, Series 1994 Date of Sale: December 14, 1994 Average Life: 12.033 Bond Buyer Index: 6.88 Bidders* Price Maturities Rates Interes Harris Trust & Savings Bank 99.00% 1999 5.800% 6.2905% Banc One Capital Corporation 2000-2005 6.000% $4,920,102 American National Bank and Trust Co. of Chicago 2006 6.100% Bernardi Securities, Inc. 2007 6.200% Boatmen's National Bank of St. Louis 2008-2010 6.300% Corby North Bridge Securities Crestar Securities Corporation Cronin & Co., Inc. Douglas & Co. Municipals, Inc. Firstar Bank of Milwaukee First Tennessee Bank Memphis Howe Barnes Investments, Inc. Isaak Bond Investments, Inc. Northern Trust Securities, Inc. Old Kent Bank - Chicago Principal Financial Securities, Inc. Securities Corporation of Iowa R. Seelaus & Company, Inc. Shawmut Bank, N.A. United Missouri Bank, N.A. U.S. Securities, Inc. M.B. Vick & Company Wachovia Bank of North Carolina A.H. Williams & Company Kemper Securities, Inc. 99.00% 1999-2005 6.000% 6.3157% 2006 6.050% $4,939,814 2007 6.150% 2008 6.250% 2009 6.375% 2010 6.450% Prudential Securities, Inc. 99.00% 1999-2004• 6.125% 6.3239% Smith Barney Shearson 2005-2010 6.250% $4,946,230 Dean Witter Paine Webber R.W. Baird - Milwaukee Nike Securities - Lisle 99.00% 1999-2002 6.000% 6.3414% Raymond James 2003-2006 6.100% $4,959,880 LaSalle Bank 2007 6.200% 2008 6.300% 2009 6.375% 2010 6.400% Dain Bosworth Inc. 99.00% 1999 6.100% 6.3553% Griffin, Kubik, Stephens, Thompson, Inc. 2000-2002 6.125% $4,970,749 2003-2004 6.200% 2005-2007 6.250% 2008-2010 6.300% First Chicago Capital Markets, Inc. 99.00% 1999-2004 6.000% 6.4104% Hutchinson, Shockey, Erley & Co. 2005 6.100% $5,013,837 George K. Baum 2006 6.200% 2007 6.300% 2008 6.375% 2009 6.450% 2010 6.500% *Syndicate information is provided by the underwriter. The information contained in this report is the most current available. CITY OF ELGIN, KANE AND COOK COUNTIES, ILLINOIS $6,500,000 General Obligation Corporate Purpose, Series 1994 **FINAL** DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST TOTAL P+I FISCAL TOTAL 12/15/1994 - - - - 1/01/1995 - - - - - 7/01/1995 - - 218,812.22 218,812.22 - 1/01/1996 - - 200,950.00 200,950.00 419,762.22 7L01/1996 200950.00.. 200,950:00. ... 1/01/1997 - - 200,950.00 200,950.00 401,900.00 7/01/1997 - - 200,950.00 200,950.00 - 1/01/1998 - - 200,950.00 200,950.00 401,900.00 7/01/1998 - - 200,950.00 200,950.00 - 1/O1/1999 200,950 00:::.: ::::'250;950:00... 7/01/1999 - - 199,500.00 199,500.00 - 1/01/2000 200,000.00 6.000% 199,500.00 399,500.00 599,000.00 7/01/2000 - - 193,500.00 193,500.00 - 1/01/2001 100,000.00 6.000% 193,500.00 293,500.00 487,000.00. 7/01/2001 - - 190.500.00 190,500.00 - 1/01/2002 25,000.00 6.000% 190,500.00 215,500.00 406,000.00 7/01/2002 - - 189,750.00 189,750.00 - 1/01/2003 125,000.00 6.000% 189,750.00 314,750.00 504,500.00 7/01/2003 - - 186,000.00 186,000.00 - 1/01/2004 300,C00.00 6.000% 186,000.00 486,000.00 672,000.00 7/01/2004 - - '77,000.00 177,000.00 - 1/01/2005 800,000.00 6.000% 177,000.00 977,000.00 1,154,000.00 7/C1/2005 - - 153,000.00 153,000.00 1/01/2006 900,000.00 6.100% 153,000.00 1,053,000.00 1,206,000.00 7/01/2006 - - 125,550.00 125,550.00 - 1/01/2007 900,000.00 6.200% 125,550.00 1,025,550.00 1,151,100.00 7/01/2007 - - 97,650.00 97,650.00 - 1/01/2008 950,000.00 6.300% 97,650.00 1,047,650.00 1,145,300.00 7/01/2008 - - 67,725.00 67,725.00 - 1/01/2009 1,050,000.00 6.300% 67,725.00 1,117,725.00 1,185,450.00 7/01/2009 - - 34,650.00 34,650.00 - 1/01/2010 1,100,000.00 6.300% 34,650.00 1,134,650.00 1,169,300.00 TOTAL 6,500,000.00 - 4,855,112.22 11,355,112.22 YIELD STATISTICS Bond Year Dollars................................. $78,213.89 Average Life...................................... 12.033 Years Average Coupon.................................... 6.2074809% Net Interest Cost (NIC)........................... 6.2905736% True Interest Cost (TIC).......................... 6.3216061% Bond Yield for Arbitrage Purposes................. 6.2004097% All Inclusive Cost (AIC).......................... 6.3216061% IRS FORM 8038 Net Interest Cost................................. 6.2905736% Weighted Average Maturity......................... 12.033 Years Speer Financial, Inc. FILE = J:\MUNEXP\ELGIN-gocorpseries94 Public Finance Consultants 12/14/1994 11:36 AN SIGNED COPY NEW ISSUE Investment Rating: Moody's Investors Service .... Aa ADDENDUM DATED DECEMBER 14, 1994 OFFICIAL STATEMENT DATED NOVEMBER 23, 1994 $6,500,000 CITY OF ELGIN Kane and Cook Counties, Illinois General Obligation Corporate Purpose Bonds, Series 1994 AMOUNTS, MATURITIES, INTEREST RATES AND YIELDS Principal Due Interest Yield or Principal Due Interest Yield or Amount Jan. 1 Rate Price Amount Jan. 1 Rate Price $ 50,000 . . . . 1999 5.800% 5.500% $ 800,000 . . . . 2005 6.000% 6.000% 200,000 . . . . 2000 6.000% 5.600% 900,000 . . . . 2006 6.100% 6.100% 100,000 . . . . 2001 6.000% 5.700% 900,000 . . . . 2007 6.200% 6.200% 25,000 . . . . 2002 6.000% 5.800% 950,000 . . . . 2008 6.300% 6.300% 125,000 . . . . 2003 6.000% 5.800% 1,050,000 . . . . 2009 6.300% 99.250% 300,000 . . . . 2004 6.000% 5.900% 1,100,000 . . . . 2010 6.300% 98.375% The Official Statement of the City dated November 23, 1994(the " Official Statement") with respect to the Bonds is incorporated by reference herein and made a part hereof. The "Final Official Statement" of the City with respect to the Bonds as that term is defined in Rule 15c2-12 of the Securities and Exchange Commission shall be comprised of the following: 1. Official Statement dated November 23, 1994. 2. This Addendum dated December 14, 1994. No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Bonds other than as contained in the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. Certain information contained in the Final Official Statement may be obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness. NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE THEREUNDER SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE DATE THEREOF. The City has authorized preparation of the Final Official Statement containing pertinent information relative to the Bonds and the City. Copies of that Final Official Statement can be obtained from the Underwriter, as defined herein. Additional information may also be obtained from Mr.James R. Nowicki,Finance Director, City Hall, 150 Dexter Court, Elgin, Illinois 60120, or from the independent public finance consultants to the City: Established 1954 Speer Financial, Inc. INDEPENDENT PUBLIC FINANCE CONSULTANTS 55 EAST MONROE STREET • CHICAGO, ILLINOIS 60603 Area 312-346-3700 y q 03 L ivw. ° ' 4�-O ADDITIONAL INFORMATION References herein to laws,rules,regulations,resolutions, agreements,reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document,the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request. INVESTMENT RATING The Bonds have been rated "Aa" by Moody's Investors Service or Standard&Poor's Corporation. The City has supplied certain information and material concerning the Bonds and the City to the rating service shown on the cover page as part of its application for an investment rating on the Bonds. Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and assumptions that it may undertake independently. There is no assurance that such rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of investment ratings may be obtained from the rating agency: Moody's Investors Service, 99 Church Street, New York, New York 10007, telephone 212-553-0300. UNDERWRITING The Bonds were offered for sale by the City at a public, competitive sale on December 14, 1994. The best bid submitted at the sale was submitted by Harris Trust and Savings Bank and Associates (collectively the "Underwriter"). The City awarded the contract for sale of the Bonds to the Underwriter at a price of$6,435,008.25. The Underwriter has represented to the City that the Bonds have been subsequently re-offered to the public initially at the yields or prices set forth in this Addendum. QUALIFIED TAX-EXEMPT OBLIGATIONS The City has designated the Bonds as "qualified tax-exempt obligations" pursuant to the small issuer exemption provided by Section 265 (b) (3) of the Code. AUTHORIZATION The Official Statement dated November 23, 1994, and this Addendum dated December 14, 1994, for the $6,500,000 General Obligation Corporate Purpose Bonds, Series 1994, have been prepared under the authority of the City and have been authorized for distribution by the City. /s/ RICHARD B. HELWIG din EORGE VAN DE VOORDE City Manager Mayor City of Elgin, Illinois City of Elgin, Illinois Kane and Cook Counties, Illinois Kane and Cook Counties, Illinois