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Home My WebLink About2002-02-27 Public hearing PUBLISH - February 21 NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $27,055,000 SEWER REVENUE BONDS OF SAID CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City Council of the City of Iowa City, Iowa, will hold a public hearing on the 27th day of February, 2002, at 7:00 o'clock P.M., in the Council Chambers, Emma J. Harvat Hall, in Iowa City, Iowa, at which meeting the City Council proposes to take additional action for the issuance of not to exceed $27,055,000 Sewer Revenue Bonds of said City. Said bonds will not constitute general obligations or be payable in any manner by taxation, but will be payable from and secured by the net revenues of the Municipal Sanitary Sewer Utility. Said bonds are proposed to be issued for the purpose of paying costs of refunding outstanding Sewer Revenue Bonds, Series 1993, issued by the City. At the above meeting oral or written objections from any resident or property owner of said City to the above action shall be received. After all objections have been received and considered, the Council will at said meeting or at any adjournment thereof, take additional action for the issuance of said bonds or will abandon the proposal to issue said bonds. This notice is given by order of said governing body as provided by Section 384.83 of the City Code of Iowa. Dated this 21st day of February, 2002. s/Marian K. Karr City Clerk of Iowa City, Iowa Publish 2/21 NOTICE OF BOND SALE Time and Place of Sealed Bids: Sealed bids for the sale of bonds of the City of Iowa City, Iowa, will be received at the office of the Finance Director in the City of Iowa City, Iowa (the "Issuer") at 10:00 o'clock A.M., on the 27th day of February, 2002. The bids will then be publicly opened and referred for action to the meeting of the City Council as stated below. Sale and Award.: The sale and award of the bonds will be held at the Emma J. Harvat Hall, Civic Center, 410 East Washington Street, at a meeting of the City Council on the above date at 7:00 o'clock P.M. The Bonds: The bonds to be offered are the following: SEWER REVENUE REFUNDING BONDS in the maximum principal amount of $27,055,000, to be dated April 1, 2002 (the "Bonds). Official Statement: The Issuer has issued an Official Statement of information pertaining to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid Form, which is incorporated by reference as a part of this notice. The Official Statement may be obtained by request addressed to the Finance Director, Civic Center, 410 E. Washington Street, Iowa City, Iowa 52240, Telephone: (319) 356-5052; or the City's Financial Consultant, Evensen Dodge, Inc., 650 Third Avenue South, Suite 1800, Minneapolis, MN 55402, Telephone: (612) 338-3535. Terms of Offering: All bids shall be in conformity with and the sale shall be in accord with the Terms of Offering as set forth in the Official Statement. Legal Opinion: The bonds will be sold subject to the opinion of Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, P.C., Attorneys of Des Moines, Io~va, as to the legality and their opinion will be furnished together with the printed bonds without cost to the purchaser and all bids will be so conditioned. Except to the extent necessary to issue their opinion as to the legality of the bonds, the attorneys will not examine or review or express any opinion with respect to the accuracy or completeness of documents, materials or statements made or furnished in connection with the sale, issuance or marketing of the bonds. Rights Reserved: The right is reserved to reject any or all bids, and to waive any irregularities as deemed to be in the best interests of the public. By order of the City Council of the City of Iowa City, Iowa. s/Marian K. Karr City Clerk of the City of Iowa City, Iowa (End of Notice) City of Iowa City, Iowa Summary of Refunding Analyses Pv Savings Refunded Refunding Present as a % of Market Less 0.25% Redemption Par Par Total Value Refunded Refunded Bond Issue: Date Amount Amount Savinqs Savinqs Par Amount PV Savinqs % Savinqs General Obligation Bonds: $2,240,000 Capital Loan Notes Series 1992 611/01 $1,915,000 $1,970,000 $47,478 $41,501 2.17% $59,178 3.09% $7,370,000 G.O. Bonds, Series 1994 6/1/01 $2,175,000 $2,190,000 $16,700 $15,273 7.00% n/a n/a $8,500,000 G.O. Bonds, Series 1995 6/1/02 $3,530,000 $3,660,000 $76,857 $68,587 1.94% $93,514 2.65% $6,100,000 G.O. Bonds, Series 1996 6/1/05 $3,900,000 $4,180,000 $146,726 $111,289 2.85% $158,309 4.06% ***FORWARD REFUNDING*** $37,300,000 Revenue Refunding Bonds Series 1993 7/1/02 $25,665,000 $26,030,000 $1,224,126 $949,294 3.70% $1,282,094 5.00% $18,300,000 Sewer Revenue Bonds Series 1996 7/1/06 $13,925,000 $15,015,000 $616,017 $454,126 3.26% $664,657 4.77% Prepared by Evensen Dodge, l~-~9/O~ REPORT OF BIDS City of Iowa City, Iowa $26,055,000 Sewer Revenue Refunding Bonds Series 2002 February 27, 2002 TO: Iowa City Council Members and Administration FROM: David Dirks EVENSEN DODGE, INC. SUBJECT: $26,055,000 Sewer Revenue Refunding Bonds, Series 2002 Today, February 27, 2002 the sealed bids tabulated below were received, opened and reviewed. The bids reflect and are indicative of the current conditions in the tax- exempt market. BIDDER ADDRESS $ NIC (%) TIR William R. Hough St. Petersburg, FL $6,128,194.98 3.8464% ABN AMRO Chicago, IL $6,157,834.40 3.8618% UBS PaineWebber New York, NY $6,156,548.98 3.8632% US Bancorp Piper Jaffray Minneapolis, MN $6,170,656.25 3.8718% Harris Trust & Savings Bank Chicago, IL $6,219,222.00 3.9011% Salomon Smith Barney Chicago, IL $6,224,429.15 3.9075% Banc of America Charlotte, NC $6,282,343.75 3.9395% WE RECOMMEND AWARD TO: William R. Hough Thank you for the opportunity to be of service to the City of Iowa City, Iowa. Pge are available to answer any questions you may have on this or any other issue in the future. I00 Court Avenue, Suite 215 Des Moines, IA 50309 515/282-6138 FAX 515/282-0252 City of Iowa City, Iowa $25,785,000 Sewer Revenue Refunding Bonds, Series 2002 Sale Date: February 27, 2002 DEBT SERVICE COMPARISON Date Total P+I DSR Existing D/S Net New D/S Old Net D/S Savings 7/01/2002 (29,466.91) 1,883,756.25 1,841,916.33 2,266,089.07 424,172.74 7/01/2003 3,174,037.50 (122,52258) 3,051,514.92 3,261,456.38 209,941.46 7/01/2004 3,175,042.50 (122,522.58) 3,052,519.92 3,319,900.26 267,380.34 7/01/2005 3,210,942.50 (122,522.58) 3,088,419.92 3,329,756.50 241,336.58 7/01/2006 3,167,292.50 (122,522.58) 3,044,769.92 3,321,975.26 277,205.34 7/01/2007 3,177,242.50 (122,522.58) 3,054,7/9.92 3,332,144.00 277,424.08 7/01/2008 3,168,86750 (122,522.58) 3,046,344.92 3,355,744.00 309,399.08 7/01/2009 3,176,18000 (122,522.58) 3,053,657.42 3,359,144.00 305,486.58 7/01/2010 3,237,780.00 (122,522.58) 3,115,257.42 3,372,944.00 257,686.58 7/01/2011 3,252,580.00 (122,522.58) 3,130,057.42 3,370,944.00 240,886.58 7/01/2012 3,102,180.00 (3,375,102.58) (272,922.58) (137,956.00) 134,966.58 Total 31,842,145.00 (4,507,272.71) 1,883,75625 29,206,255.53 32,152,141.47 2,945,885.94 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Gross PV Debt Service Savings ................................................................................................................. 3,202,784.90 Effects of changes in DSR investments ................................................................................................. (355,434.35) Net PV Cashflow Savings ~ 3.919% (AIC) 2,847,350.55 Accrued Interest Credit to Debt Service Fund 7,993.58 Transfers from Prior Issue Debt Service Fund (382,332.81) Contingency or Rounding Amount 4,379.43 NET PRESENT VALUE BENEFIT $2,477,390.75 NET PV BENEFIT / $25,665,000 REFUNDED PRINCIPAL ............................................................ 9.653% NET PV BENEFIT/$25,785,000 REFUNDING PRINCIPAL ............................................................ 9.608% Prepared by Evensen Dodge, Inc. File = iowa city sewer.sf-Ref93-Final- SINGLE PURPOSE 2/27/2002 11:41 AM Page 2 Savings = $5,543,694*