#5.1 Action to award promissory notes (File Res. #2010-729)
ADMINISTRATIVE SERVICES MEMORANDUM
October 19, 2010
TO: City Council
FROM: Jacob J. Winzenz, Dir. of Administrative Services/Assistant City Manager
SUBJECT: Action on a Proposed Resolution Awarding $6,765,000 in General
Obligation Promissory Notes, Series 2010-A, and $1,055,000 in Taxable
General Obligation Promissory Notes, Series 2010-B, of the City of
Janesville. Wisconsin. Establishing Interest Rates Thereon and Levying
Taxes Therefor (File Res. 2010-729)
The Promissory Note bid opening is scheduled for 10:30 AM, Monday, October 25,
2010 with the Taxable Notes following at 11:00 AM that same day. That evening, the
Council will be requested to consider the attached resolution
(File Resolution #2010-729) that will formally award the note sale to the lowest bidder.
The award resolution contains many incomplete sections that will be filled in upon
receiving the interest rate bids. Therefore, we will distribute a completed version of File
Resolution #2010-729 to the Council the evening of the meeting.
Attachment
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RESOLUTION NO. 2010-729
RESOLUTION AWARDING $6,765,000 GENERAL OBLIGATION
PROMISSORY NOTES, SERIES 2010-A, AND $1,055,000 TAXABLE GENERAL OBLIGATION
PROMISSORY NOTES, SERIES 2010-B, OF THE CITY
OF JANESVILLE, WISCONSIN, ESTABLISHING INTEREST RATES
THEREON AND LEVYING TAXES THEREFOR
WHEREAS, this City Council has heretofore authorized the issuance and sale of
$6,765,000 General Obligation Promissory Notes, Series 2010-A (the “Series 2010-A Notes”), and
$1,055,000 Taxable General Obligation Promissory Notes, Series 2010-B (the “Series 2010-B
Notes” and, collectively with the Series 2010-A Notes, the “Notes”) in a resolution adopted on
October 11, 2010 and entitled “Resolution Authorizing the Issuance of $6,765,000 General
Obligation Promissory Notes, Series 2010-A, and $1,055,000 Taxable General Obligation
Promissory Notes, Series 2010-B, of the City of Janesville, Wisconsin, and Providing the Details
Thereof”; and
WHEREAS, pursuant to advertised public sale the following sealed bids were received for
the Series 2010-A Notes on October 25, 2010, by 10:30 a.m., local time:
Names of Bidders
(Account Manager) Net Interest Rates
; and
WHEREAS, it has been determined that the highest and best bid for the Series 2010-A
Notes was that of ____________________, __________,__________, which bid is as follows:
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WHEREAS, pursuant to advertised public sale the following sealed bids were received for
the Series 2010-B Notes on October 25, 2010, by 11:00 a.m., local time:
Names of Bidders
(Account Manager) Net Interest Rates
; and
WHEREAS, it has been determined that the highest and best bid for the Series 2010-B
Notes was that of ____________________, __________,__________, which bid is as follows:
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WHEREAS, it is now necessary to award the Notes to the successful bidder and to
establish the interest rates thereon;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Janesville,
Wisconsin, as follows:
Section 1. Sale of Notes
. The sale of $6,765,000 General Obligation Promissory Notes,
Series 2010-A, to ____________________,__________,__________, at a price of $__________
and accrued interest to the date of delivery is hereby ratified and confirmed.
The sale of $1,055,000 Taxable General Obligation Promissory Notes, Series 2010-B, to
____________________,__________,__________, at a price of $__________ and accrued
interest to the date of delivery is hereby ratified and confirmed.
Section 2. Interest Rates
. The Series 2010-A Notes shall mature on February 1 of the
following years, and bear interest at the following rates, payable on February 1, 2011 and each
August 1 and February 1 thereafter:
Maturities Amounts Interest Rates
2011 $645,000
2012 705,000
2013 710,000
2014 730,000
2015 720,000
2016 715,000
2017 635,000
2018 635,000
2019 635,000
2020 635,000
The Series 2010-B Notes shall mature on February 1 of the following years, and bear
interest at the following rates, payable on February 1, 2011 and each August 1 and February 1
thereafter:
Maturities Amounts Interest Rates
2012 $65,000
2013 100,000
2014 115,000
2015 125,000
2016 150,000
2017 150,000
2018 150,000
2019 100,000
2020 100,000
Section 3. Redemption Provisions
. The Notes maturing on or after February 1,
2019shall be subject to redemption prior to maturity as a whole or in part at the option of the City
upon notice as therein provide, in any order of maturity and by lot within a single maturity, on
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February 1, 2018, and on any date thereafter, at a redemption price equal to 100% of the principal
amount thereof to be redeemed plus accrued interest to the redemption date and without premium.
Section 4. Execution and Delivery; Borrowed Money Fund
. The Notes shall be
executed by the City Manager and the City Clerk in the manner heretofore provided, and upon
authentication by Wells Fargo Bank, N.A., Chicago, Illinois, as note registrar, shall thereupon be
delivered by the City Clerk to the purchaser upon payment of the purchase price. The principal
proceeds from the sale of the Series 2010-A Notes shall be paid into the City treasury and entered
in a fund separate and distinct from all other funds, which fund shall be designated “General
Obligation Promissory Notes, Series 2008, Borrowed Money Fund.” The principal proceeds from
the sale of the Series 2010-B Notes shall be paid into the City treasury and entered in a fund
separate and distinct from all other funds, which fund shall be designated “Taxable General
Obligation Promissory Notes, Series 2010-B, Borrowed Money Fund.” Money in said funds shall
be used solely for the purposes for which the Notes were issued, including repayment of any
temporary loan or reimbursement of any temporary advance made in anticipation of the issuance
of said Notes.
Section 5. Tax Levy
. For the purpose of paying the principal amounts of the Notes as the
same shall mature, and to pay the interest thereon as the same shall come due, there is hereby
levied, for each year in which any of the Notes shall be outstanding, direct, annual, irrepealable
taxes in amounts fully sufficient to pay such principal and interest, and the specific amounts levied
for each year are as follows:
Amount of Principal
Year of Levy and Interest
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Section 6. Extension of Taxes
. The amounts of taxes levied pursuant to Section 4 hereof
shall be carried onto the tax roll by the City from year to year and collected as other taxes are
collected, and such amounts may be reduced in any year only by any amount of surplus money in
the Debt Service Fund created pursuant to Section 67.11, Wisconsin Statutes.
Section 7. Debt Service Fund
. There is hereby created a fund to be known as “General
Obligation Promissory Notes, Series 2010-A, Debt Service Fund” to be established and maintained
in accordance with generally accepted accounting principles. There is further hereby created a
fund to be known as “Taxable General Obligation Promissory Notes, Series 2010-B, Debt Service
Fund” to be established and maintained in accordance with generally accepted accounting
principles.
Into the Debt Service Funds there shall be deposited the following: (a) all premium and
accrued interest from the sale of the respective Notes; (b) all allocable money raised by taxation
pursuant to Section 4 hereof; (c) any surplus in the related Borrowed Money Fund created in
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Section 3 hereof; and (d) such additional amounts as may at any time be necessary to pay the
principal of and interest on the respective Notes as the same shall become due.
Section 8. Dated Date
. The Notes shall be initially dated the date of their delivery.
Section 9. Continued Validity
. If any section, paragraph, clause or provision of this
resolution shall be invalid or ineffective for any reason, the remainder of this resolution shall remain
in full force and effect, it being expressly hereby found and declared that the remainder of this
resolution would have been adopted by the City Council despite the invalidity of such section,
paragraph, clause or provision.
Section 10. Effective Date
. All orders or resolutions in conflict herewith are hereby
repealed insofar as such conflict exists, and this resolution shall take effect immediately upon its
passage, the public welfare requiring it.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Brunner
McDonald
Eric J. Levitt, City Manager
Perrotto
Rashkin
ATTEST:
Truman
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Administrative Services
Prepared by: Administrative Services
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